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Nicole Fallon

Business Ownership Insider and Senior Analyst
Introduction
About Me

Nicole Fallon is a small business owner with nearly a decade of experience overseeing day-to-day business operations. She and her co-founder self-funded their company and now lead a team of employees across multiple disciplines. Fallon’s first-hand experience as an entrepreneur running a staffed business has given her unique insight into startup culture, budgeting, employer-employee relationships, sales and marketing, and project management.

At Business News Daily, Fallon covers business technology like payroll services, CRM solutions, document management software and POS systems, along with related finance, sales and marketing topics.

Fallon’s business expertise is also evident in her work with the U.S. Chamber of Commerce, where she analyzes small business trends. Her writing has been published in Forbes, Entrepreneur, and Newsweek, and she enjoys collaborating with B2B and SaaS companies.

 

Experience
Co-Founder & Co-CEO at Lightning Media Partners
January 2018 - Present
Contributor at Patch.com
September 2021 - Present
Contributor at U.S. Chamber of Commerce
March 2019 - Present
Production Editor, Managing Copy Editor at Business.com
January 2018 - March 2019
Business News Daily Writer/Managing Editor at Purch
July 2013 - January 2018
Education
New York University
B.S.
Media, Culture, and Communications
Nicole's Product and Service Reviews
Our team conducts an independent analysis of products and services that can help manage your business.
10.15.24
The Best Payroll Services for Contractors
Businesses that pay independent contractors face unique payroll...
10.15.24
The Best CRM Systems for Private Equity Firms
This guide breaks down the best CRM systems for private equity...
07.18.24
Best Document Management Software and Systems of...
Document management software is an increasingly critical part of...
10.15.24
The Best POS Systems for Bars
For bars that need a point-of-sale (POS) system tailored to their...
Nicole's Activity
Social Media for Startups: Entrepreneurs Share 5 Key Lessons - thumbnail
article
Social Media for Startups: Entrepreneurs Share 5 Key Lessons
Learn by example with these real-life social media marketing and management lessons from entrepreneurs.
Updated October 24, 2023
Leadership Language: Why Your Word Choices Matter - thumbnail
article
Leadership Language: Why Your Word Choices Matter
The language you use as a leader has an enormous impact on your team. Learn how to frame tricky conversations to maintain a positive work environment.
Updated April 08, 2024
Entrepreneur Salaries: How Much Should You Pay Yourself? - thumbnail
article
Entrepreneur Salaries: How Much Should You Pay Yourself?
As a business owner, at what point should you start giving yourself a salary, and how much do you pay yourself? Learn some key salary considerations.
Updated September 12, 2024
A Culture of Inclusion: Promoting Workplace Diversity and Belonging  - thumbnail
article
A Culture of Inclusion: Promoting Workplace Diversity and Belonging 
Learn how to improve your organization by creating a diverse and inclusive workplace.
Updated October 19, 2023
DocuWare Review - thumbnail
review
DocuWare Review Review
This review of Docuware examines the document management software's cost and tools for SMBs.
Updated October 13, 2023
Creating Online Forms: A Step-by-Step Guide - thumbnail
article
Creating Online Forms: A Step-by-Step Guide
Online forms help businesses easily capture customer and prospect information. Learn how to create online forms and find out what tools can help.
Updated October 26, 2023
What’s Your Most Productive Work Time? How to Find Out - thumbnail
article
What’s Your Most Productive Work Time? How to Find Out
The traditional workday may not maximize performance for each worker. Discover your most productive work times and optimize your schedule for productivity.
Updated October 24, 2023
7 Cringe Marketing Fails to Learn From - thumbnail
article
7 Cringe Marketing Fails to Learn From
These "cringe" marketing fails offer prime examples of what brands should avoid when planning and executing their campaigns.
Updated October 20, 2023
Negative Customer Review? Turn It Into a Positive Opportunity - thumbnail
article
Negative Customer Review? Turn It Into a Positive Opportunity
Negative customer reviews are common, especially in public-facing businesses. Here’s how you can adapt your business processes and generate customer loyalty from negative customer reviews.
Updated October 27, 2023
DiSC Assessment: What Kind of Leader Are You? - thumbnail
article
DiSC Assessment: What Kind of Leader Are You?
DiSC profiles assess a leader's behavioral style and can be a great foundation for leadership tools. Learn how a DiSC assessment works.
Updated July 16, 2024
8 Steps to Bankroll Your Business While in Personal Debt - thumbnail
article
8 Steps to Bankroll Your Business While in Personal Debt
This guide describes how entrepreneurs can fund their businesses even while they manage their personal debts.
Updated November 10, 2023
6 Biggest Business Insurance Risks (and How to Mitigate Them) - thumbnail
article
6 Biggest Business Insurance Risks (and How to Mitigate Them)
Find out the different types of insurance risks for your business and how to mitigate them.
Updated October 24, 2023
7 Labor Laws You Might Be Breaking - thumbnail
article
7 Labor Laws You Might Be Breaking
It is important to know what labor laws apply to your business and to ensure you comply with them. Here are seven mandates you may be overlooking.
Updated November 20, 2023
Should You Ditch That Nightmare Client? - thumbnail
article
Should You Ditch That Nightmare Client?
When clients make outrageous demands and don't communicate, it may be time to fire them. Learn how to ditch nightmare clients tactfully.  
Updated October 24, 2023
What Is a Per Diem? - thumbnail
article
What Is a Per Diem?
A per diem is a daily stipend an employer provides to cover employee expenses. A per diem employee works with a company on a daily basis at a set rate.
Updated November 15, 2023
New Job? How to Survive 8 First-Week Challenges - thumbnail
article
New Job? How to Survive 8 First-Week Challenges
There are always challenges when you start a new job. Follow these strategies to overcome them.
Updated October 24, 2023
35 Inspiring Leadership Quotes - thumbnail
article
35 Inspiring Leadership Quotes
Choice words on power, success and leadership from presidents, CEOs and authors.
Updated October 24, 2023
How to Find the Right B2B Partner for Your Business - thumbnail
article
How to Find the Right B2B Partner for Your Business
B2B vendors are essential to your business's success. Learn which vendors work with small businesses and how to find the right business-to-business vendor.
Updated October 24, 2023
Thinking About Using a Staffing Agency? Here’s What You Need to Know - thumbnail
article
Thinking About Using a Staffing Agency? Here’s What You Need to Know
Here's what you should know if you're considering using a staffing agency for your business, including the cost, advantages and misconceptions.
Updated October 27, 2023
10 Brilliant Hiring Philosophies From Famous Leaders - thumbnail
article
10 Brilliant Hiring Philosophies From Famous Leaders
These philosophies from well-known business leaders can help you build out a successful staff.
Updated January 19, 2024
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Test your content.

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Your content strategy for social media needs to change constantly — not just because of various platforms’ algorithms but also because of evolving consumer interests. What worked in the past may not work for you now, or vice versa. Kerpen recommended using a trial-and-error approach to learn what kind of content is the most effective for your audience.

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“The best way to use social media for feedback is to test your content,” Kerpen said. “Look at what’s getting liked and shared and what’s not. Try two different messages to see what works best. Throw it out there, and be unafraid to play [with different strategies].” [Read related article: Social Media for Business: Marketing, Customer Service and More]

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Have a uniform brand voice — and a person who knows it well.

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While the specific content you craft may be different across networks, the one element that should remain consistent on every platform is your brand voice. In many cases, social media is your first line of communication with customers, and the voice you use there is a big part of their impression of your brand.

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For this reason, Ghosn strongly advised against assigning social media tasks to an intern or a random staff member who happens to have the time to take on extra work. Instead, select a person who is very involved with and committed to your brand and truly knows how to articulate your company’s voice well on every social network you use.

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Social media is “not an afterthought,” Ghosn said. “It’s a central part of your voice, especially with millennials. Millennials expect authenticity and real-time feedback, and there’s no better way [to give that] than through using the right social networks. Even Gen X is increasingly more literate around social media and expect you to be more polished.” [Get tips for marketing to millennials.]

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Temple, the panel host, noted that one of her company’s most significant errors early on was utilizing a social media manager who hadn’t mastered the brand voice.

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“We hired someone who didn’t have my voice and didn’t have the [same] connection with customers,” Temple said. “It was our biggest mistake.” Social media has to be top of mind if it’s the only connection you’re going to make with customers, and it “has to be on point,” she said.

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Know your brand values.

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Like your brand voice, your brand values need to come through clearly and consistently across all areas that make up your online presence. Your first step in articulating your brand values on social media is to determine what they are.

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“You need to figure out who you are first, before you share it with someone else,” Ghosn said. For example, think of words and images to describe your business, and look at other brands that have figured out what they want to be.

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When you look at a social media profile, “you should know right away what a brand stands for and what it’s all about,” Kerpen added. “Coca-Cola stands for happiness. GE stands for innovation. Think about what you stand for and how to express that on different networks.”

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Making social media work for your business

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Mastering your business’s social media presence involves more than just posting on a whim. You also need to develop unique strategies for each platform while considering what your customers want. Expressing your brand values, in your brand voice, is key, as is testing your content. This is why so many business owners hire dedicated social media managers who can take on their company’s voice; lots of work and skill go into maintaining a strong social presence. And with the advice above from entrepreneurs who have seen success in that area, you can be on your way to making social media work for your business.

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Max Freedman contributed to the writing in this article.

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Common wisdom about leadership often favors leading by example, so you might not think too much about how your team interprets what you say. However, your words enormously impact your team’s morale and productivity. Effective communication is essential for success. It allows you and your team to establish trust and create better long-term outcomes for your business. Your leadership development goals should include learning to use your words carefully, eliminating jargon to avoid confusion, and focusing on the end goals when communicating.

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Areas where language matters

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There are several critical areas where the language you use as a leader affects morale, operations and even employee retention.

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“Words are important,” said Isaac Oates, founder of Justworks, an HR, benefits and payroll platform. “It’s through our words that we communicate our intentions.”

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From hiring to performance management, disciplining employees to motivating them, the words you choose matter. Here’s a closer look at each of those situations and how the language you choose can make all the difference.

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Performance management

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The way you discuss an employee’s performance and engagement is critical, according to Vip Sandhir, founder of employee engagement platform HighGround. These discussions can impact the way your employee views the company, your leadership and their role on your team. Your direct communication affects them, and so do your reactions or responses to their questions or concerns.

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“Performance management is going through a renaissance,” Sandhir said. “The importance of that conversation and how it’s done [is changing]. It was typically one-sided, judging individuals based on numbers. But neuroscience research on how the brain reacts to conversations shows that [this communication style] can trigger a threat response.”

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If, for example, you start a performance discussion by telling an employee they are a 3 or 4 out of 5 — or by threatening the employee’s status at the company — they will perceive it as unfair and judgmental, Sandhir said. The conversation will then head in a hostile or defensive direction.

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Hiring and onboarding

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Managers often see hiring and onboarding as simple processes to bring new employees into the company and set them up with their team. However, these processes are also an excellent opportunity to show new hires what to expect from you as their leader. Think about that while you communicate their role, your expectations for employees, company values and who their team members will be.

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Onboarding is a pivotal time to ensure employees feel welcomed into the company and receive foundational knowledge. When speaking to a new employee during a thoughtful onboarding process, understand that they don’t know everything yet. Explain any concepts or vernacular they may need to use later. Share the company’s values and commitment to inclusivity, and let them know you value their feedback by giving them space to communicate with you directly.

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Disciplining employees

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Effective leaders must be clear from the start about company policies. Clarity is always important, especially concerning disciplinary policies. You want employees to understand what they can or can’t do and what consequences will occur if they break the rules.

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When an employee violates a policy, talk to them about what the policy states. Explain why their behavior or action wasn’t acceptable and can’t continue to happen.

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The way you speak to them about their violation is critical and must convey that you care about them as a person and want them to succeed. To do this, offer them a chance to talk about what happened in their own words and listen as they explain their side of the story.

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Motivational leadership

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Every employee is different and may respond best to a specific type of motivational language. Stacey Philpot, an executive development consultant, said it’s essential to plan your words and phrases to connect with your employees meaningfully.

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“The most impactful leaders are the ones who think about how they will energize their people,” she said. “They know what makes their people feel confident and likewise what drains their energy. Rather than talking about plans or tactical objectives, they are able to link their employees’ current circumstances with some kind of opportunity or outcome that they will care about.”

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Oates, who has a military background, noted that straightforward, action-oriented phrases related to your company’s core values could be motivational if you have a strong company culture.

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“Some of our core company values are ‘grit’ and ‘simplicity,’ [so] I use phrases without a lot of fluff to motivate team members — phrases like, ‘Let’s do this,’ ‘Keep doing what you’re doing,’ and ‘We are laser-focused on XYZ,’” he said.

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To that end, it helps to include employees in the ongoing conversation about the company’s mission and how their work aligns with it. Involving them in the discussion can help you encourage them to buy into the mission, ensuring you’re on the same page and improving your ability to communicate.

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How to develop effective leadership language

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These tips can help you become a more effective communicator as a leader. Remember, communication is a skill and it takes practice, so try some of these out in your workplace and see how you improve over time.

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Use words that resonate with your employees

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Instead of relying on buzzwords that annoy employees, use vocabulary they can relate to. You can determine which words are most effective and relevant to your team simply by listening to how they speak and the words they use. The best way to do this is by having direct conversations with them. Feel empowered to get out of your office and engage with everyone. The more you speak your team’s language, literally, the more effective your communication will become.

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Be clear and direct

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Many times, poor communication stems from misunderstanding. To avoid this, be clear and direct when discussing things with your employees. For example, if you want to achieve a goal, be clear about what success looks like, the time frame in which you expect to complete the goal, and the individual steps it will take to reach it. Similarly, when having tough conversations with employees around things like performance issues, it’s important to say what you mean in simple, direct statements. Don’t beat around the bush. Your employees will have a clearer understanding of your expectations and respect you more for your transparency and clarity.

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Ask questions

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Asking questions is one of the most important things leaders can do to gain a better understanding of what it’s like for their team in the day to day. While many leaders feel like they need to have all the answers, it’s the leaders who ask a lot of questions who will best know their team and their workplace. When asking questions, ask them one at a time and allow your employees space to answer. To improve the level of information you gather this way, establish a culture of open communication in which employees aren’t afraid to speak up, even if what they have to share isn’t the best news.

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Survey your team

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When all else fails, it never hurts to periodically check in with your team and find out how they’re responding to your communication style. Anonymous employee surveys can be a good way to find out what you’re doing well and where you can improve. Take the feedback to heart and try to adjust your communication style as your employees’ responses indicate. By hearing what they have to say and adjusting your actions accordingly, you can also build a stronger rapport and sense of trust with your team.

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Language matters in leadership

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When you’re speaking with your team, the words and phrases you choose matter. How you engage with them is critical too. If you want to gain the respect of your employees and drive results in your business, examine your communication style and ask yourself what you can improve upon. After all, communication skills take practice like anything else, and in a short time you could be helping your team succeed in a brand new way.

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Sean Peek contributed to this article. Source interviews were conducted for a previous version of this article.

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As a business owner with a thousand responsibilities and your own company expenses to think about, factoring in how to pay your own salary can easily fall to the back burner. But when it comes to optimizing your business’s financial performance, retaining top employees and building a long-lasting, successful company, how you choose to pay your own salary matters.

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Your business’s structure will be a major factor, and experts like Alice Brendin, a B2B marketing entrepreneur and small business advisor, said it’s important to include your own pay in the budget as soon as you can afford to do so. By prioritizing your own salary structure, you can set your company up for long term success.

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How to pay yourself as a business owner

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According to the IRS, business owners should pay themselves a “reasonable salary.” But how do you determine what’s reasonable?

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“I advise paying yourself a modest salary, as modest as you can afford,” said Whitney Delaney, founder of Delaney Tax & Wealth Management. “Taking the fiscally conservative road [means] you’ll incur fewer taxes, which leaves more money for you to invest into your business.”

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Here are two standard ways to determine your salary:

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  • Base your salary on personal expenses.
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  • Use profit distributions as salary.
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Base your salary on personal expenses

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To get a specific number for your salary, Bredin recommends calculating your basic personal expenses first. Then, based on that figure, look through your business numbers and determine what you can afford to take.

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“It can be daunting to calculate what that salary number should be, and because it’s so tricky, I recommend calling the accountant who prepares your taxes to get advice on how much to pay yourself,” Delaney added.

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Profit distributions as a salary

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An alternative method is to pay yourself based on your profits. According to Evan Singer, CEO of SmartBiz Loans, a provider of Small Business Administration (SBA) loans, the SBA reports that most small business owners limit their salaries to 50% of profits. However, he noted that even the SBA doesn’t have a definitive answer on compensation for small business owners because this amount is highly dependent on a business’s development stage.

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“To give you guidance, the SBA maintains a database of income statistics,” Singer said. “Information [in the database] includes earnings by occupation and education, income statistics, and results from a national compensation survey. Not only will this data help determine your own salary, [but also] you’ll learn if the salaries you are paying your employees are fair.”

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Singer reminds business owners that no matter which formula they use to determine compensation, they should ensure their salaries don’t hurt day-to-day operations. “Cash flow can make or break a small business.” [Follow these cash flow strategies for survival.]

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When can you start paying yourself?

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When money is tight, an owner’s salary is often the last priority on the small business budget. But as your business income becomes more stable, paying yourself becomes feasible.

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Delaney advised asking yourself three questions to determine if you’re ready to start paying yourself a salary:

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  1. Do I have sustained revenue?
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  3. Do I have steady projected revenue?
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  5. Is my business in the black?
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Delaney said if you can answer “yes” to all three, you can afford to pay yourself. Singer agreed, noting that businesses that are past startup mode and are more firmly established can consider budgeting for owners’ salaries.

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5 tips for setting your compensation

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Based on guidance from Bredin, Delaney, Singer, and other experts, here are a few rules of thumb for structuring owner compensation for a small business or solo operation:

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  1. If your business is established and profitable, pay yourself a regular salary equal to a percentage of your average monthly profit.
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  3. Don’t set your monthly salary to an amount that may stress your company’s finances at any point.
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  5. Consider changing your tax treatment or organization type to an S corporation to reduce your self-employment tax liability.
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  7. Take other profit distributions regularly, but only when those distributions won’t be a burden for the business.
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  9. Periodically review your salary as part of your overall compensation and adjust it up or down based on the business’s revenue and cash needs.
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Of course, setting up your salary as the owner of a business can also entail some crucial decisions about your personal and business taxes. For these considerations, enlist the help of a professional. If you have a CPA, consult with them before making any decisions. If you don’t, find one who can help you.

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Why does owner compensation matter?

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“Compensating yourself is important for you and your company,” Bredin said. “If you are not allocating funds for your own salary, your books do not accurately reflect the health of your company, since your expenses are missing a large cost, namely you. Without factoring in all expenses, you won’t know if you need to raise prices, market more, cut costs, or make other adjustments that will help your company succeed.”

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You may be tempted to work for free, but you should recognize that your time has value. “Some entrepreneurs work for free for much too long,” said Singer.. “It’s no surprise that anxiety and worry about personal finances are not conducive to building and running an enterprise. If you’ve established a small business, it’s important to realize that your time is valuable.”

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Owner salaries and tax considerations

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There’s also a practical reason to pay yourself as a small business owner: Depending on your company’s organizational structure, you may be able to give yourself a tax break if you designate a personal salary out of your total business income. If you’re running a very small business, visit our Best Payroll Services for One Employee page to understand what services are best for your type of company.

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“Let’s say you’re making a net income of $100,000 a year in your business, and you file as a sole proprietor: Self-employment tax – which consists of Social Security and Medicare – will be calculated from the full $100,000,” Delaney said. “On the other hand, if you’re an S corporation and you pay yourself a salary, your [deductions] will be based [only] on your salary rather than your total net revenue.” [Learn the difference between net income and gross income.]

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Structuring your salary is part of building your company

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By making hard decisions about how to build your business, you can set your business up to be successful. One of these difficult decisions is your salary structure. By researching and understanding how this financial factor plays into the overall health of your company, you can make the right choice for your business and for yourself.

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Dock Treece contributed to this article. Source interviews were conducted for a previous version of this article.

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Diversity is an important issue for any modern business, but it’s not enough to simply hire people of different nationalities, races, genders and sexual orientations. Everyone needs to feel welcome, safe and free to be themselves in the workplace. If you focus on diversity, equity and inclusion (DEI) in your workplace, your business’s culture and bottom line will benefit.

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How do you create an inclusive work culture?

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Although many businesses are moving toward more inclusive and diverse workforces, there is much progress to be made. Here are some simple steps you can take as a business leader to promote an inclusive company culture. Proceed with the understanding that communication and involvement matter most when promoting diversity.

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1. Start from the top.

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As with any facet of company culture, creating and encouraging a sense of belonging in your workplace begins with leadership. The company’s founders and executive team need to have the desire to build a diverse culture and hire people who are open to working with people of all different nationalities, skin colors, genders and sexual orientations, said Eloise Bune D’Agostino, founder of Tentrr.

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“If diversity is not a company goal … it just won’t happen,” she said. “People tend to hire people like them so they are comfortable and rarely challenged. It is human nature.”

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Jason Beckerman, CEO of Unified, said a healthy business begins with a healthy company culture that is welcoming and demonstrated by leaders.

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“We strive to provide all of our employees with the tools and skills necessary to shine, and that starts with letting your employees know that yes, you can be exactly who you are here,” Beckerman said.

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2. Focus on inclusive recruitment strategies.

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Once your company’s leadership sets the tone, it’s critical to extend that attitude throughout the organization.

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“What is great about creating a culture of belonging is that it can be fostered peer-to-peer, bottom-up and top-down,” said Alexandre Ullmann, head of human resources at LinkedIn.

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Ullmann recommends taking a close look at your company’s recruiting tactics to make sure you’re approaching hiring with the goal of facilitating diversity and inclusion.

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“Make inclusive recruitment an integral part of your company’s DNA to amplify your company’s future, cultivate your workforce, and invest in the community as a whole,” he said. [See tips for improving your hiring process.]

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3. Provide safe spaces for employees.

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Inclusive workplaces go the extra mile to consider the safety and comfortability of all employees, especially those in marginalized groups. For example, gendered bathrooms have the potential to make transgender and gender-nonconforming employees uncomfortable, especially in light of controversial “bathroom bills” in multiple states that could or already do impact transgender people’s rights. One easy way to signal a progressive, inclusive workplace is to offer unisex bathrooms in your office, said D’Agostino.

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On a broader level, inclusive spaces can be created simply by spending time with one another. Consider hosting team lunches and other informal events where employees can casually connect with each other. If your company is bigger, creating an in-office support group or network for diverse employees can help them connect with others who share their experiences.

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“Employee networks can provide a safe, open environment to spark conversations and discuss the topics that are important to the community,” said Miguel Castro, the global lead for diversity and inclusion at SAP.

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4. Connect with employees (but be sensitive).

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One of the best ways to signal to your employees that it’s OK to be themselves is to connect with them on a personal level. Be transparent with them about your own life. “If you are real with them, chances are you will get the same in return,” said D’Agostino.

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Simple gestures like asking about “spouses” or “partners,” rather than assuming someone’s sexual orientation and using gendered terms, can encourage LGBTQ employees to open up about their personal lives and feel included in nonwork discussions. However, it’s crucial not to be insensitive about their identities.

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“Be sure to treat LGBTQ employees like everyone else in the office, and do not ask inappropriate questions like, ‘How did you come out?’ unless you have a close relationship with the person,” D’Agostino said. “This is a very personal question.”

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5. Give employees multiple ways to provide feedback.

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Ullmann advised giving employees an outlet for connecting with others and sharing their stories.

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“Whether it’s an employee survey, company all-hands discussions or campaigns, giving your employees multiple ways to share their feedback, their perspective and their stories will create an open dialogue that can lead to more positive outcomes,” he said.

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An inclusive culture is a work in progress, said Ullmann, and you should constantly be revisiting your policies and programs to create a more tolerant, diverse environment.

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“There is always something that can be improved upon,” he said. “Make it your company’s priority to take action to close any gaps so that all employees feel like they belong and are supported to thrive.”

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What is the importance of cultural inclusion at work?

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Cultural inclusion has moved to the forefront of many employers’ HR agendas, and for good reason. Creating a diverse and inclusive workplace is not only the right thing to do, but it can also benefit businesses in many ways.

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It fosters a healthy work environment.

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“[A sense of] belonging … and inclusion should be a big focus for employers because it ensures that all employees, regardless of their background and experiences, can be connected with equal opportunity and create a healthier, more successful future together with their employers,” said Ullmann.

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It increases employee engagement and productivity.

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“When people are comfortable and can express themselves in an authentic way, they are more likely to perform better, which increases engagement and contributes to the organization as a whole,” said Castro.

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This inclusive engagement can significantly impact an organization’s bottom line. Similarly, diversity and inclusion promote better talent management, employee satisfaction, collaboration and corporate reputation. Even co-workers eating together can have the dual benefit of fostering a sense of belonging while boosting productivity. [Get tips for successful teamwork and collaboration.]

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It leads to more creativity and innovation.

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A diverse and inclusive workforce can help your company in terms of creativity and innovation. When each team member’s distinctive background and experience are celebrated and encouraged, employees are more likely to voice their unique perspectives. This can lead to new ideas, improved operations and innovative solutions that drive business success.

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What are real-life examples of successful diversity programs?

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Our experts shared a few of the efforts their companies have made to make diverse groups of employees feel safe, supported and celebrated in the workplace.

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    \n
  • LinkedIn: LinkedIn has a global employee resource group called “out@in,” which offers executive sponsors and a strong ally community for LGBTQ employees, said Ullmann. The company’s #ProudAtWork campaign encouraged employees, executives and LinkedIn influencers to share their stories about belonging in the workplace.
  • \n
  • SAP: Inclusion is a top priority at SAP, which offers a companywide virtual training program called Focus on Insight that educates employees about diversity and inclusion. According to Castro, the company also encourages participation in employee-driven events like SAP’s “We Are One” initiatives, focused on sharing diverse life experiences. It sponsors and participates in annual Pride parades across the globe as well.
  • \n
  • Unified: Unified aims to foster “great people from all walks of life with impactful, inclusive cultural programs, including mentorship, executive town halls and peer awards,” Beckerman said. For Pride Month, the company has put together a few celebratory initiatives, including an employee viewing of the HBO documentary The Trans List, an informational session hosted by the Ali Forney Center (a community center supporting LGBTQ homeless youth), and treats from New York City’s famous Big Gay Ice Cream Truck. Unified also offers the Leadership Empowerment and Development (LEAD) Program to support and educate strong female leaders in the workplace.
  • \n
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Should all companies hire a DEI leader?

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Companies with large workforces should consider hiring a chief diversity officer (CDO) who ensures that diversity, equity and inclusion are taken seriously on a day-to-day basis. This person should report directly to the CEO or the head of human resources and be given the budgetary resources to implement diversity programs in the workplace. Keep in mind that a CDO isn’t able to change company culture overnight and should set milestone deadlines to meet goals over time.

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If a company employs a chief people officer (CPO), that person can take the lead on DEI initiatives instead of hiring a CDO or working in tandem. Some workplaces, big and small, even form culture teams made up of employees at all levels to work on programming together and solicit feedback.

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The bottom line on promoting workplace diversity and belonging

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Fostering workplace diversity and inclusion doesn’t just happen. You need to have a specific plan and devote the right resources to implementing changes that impact hiring and day-to-day team interactions. Employers can start by surveying existing employees to get a sense of their feelings and what can be done to improve DEI. Putting more effort into cultural programs will not only make the workplace a better environment; it will also improve productivity and add to the bottom line of the company in a positive way.

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Kimberlee Leonard and Skye Schooley contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article. 

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"20348","_score":2,"_source":{"canonical":"https://vaylees.com/docuware-review","displayModified":"2023-10-13T00:00:00Z","docType":"review","editorsPick":null,"href":"docuware-review","id":"20348","ID":20348,"isSponsored":false,"published":"2022-12-15T17:13:12Z","site":"bnd","stream":"","subtitle":"","title":"DocuWare Review","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Find A Solution","slug":"find-a-solution"},"sub":{"name":"SMB Solutions","slug":"technology-solutions"}},"meta":{"robots":"index, follow","description":"This review of Docuware examines the document management software's cost and tools for SMBs."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/12/15105646/docuware-logo-2.jpg","caption":"","alt":"DocuWare logo"},"content":"\n \n\n\n\n
    \n
  • DocuWare’s software can integrate with over 500 applications, so it works in tandem with your daily drivers.
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  • The company offers various plan options at different rates so businesses of all sizes can access the software at a price that works for them.
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  • DocuWare offers intelligent search capabilities that use artificial intelligence (AI) and optical character recognition (OCR) to index paper documents and make them fully searchable.
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  • This review is for small business owners who are considering implementing DocuWare.
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Business software integrations are critical for helping a small business’s software solutions communicate seamlessly with one another. It’s especially important for a document management system, the central repository of all of a business’s files, to have strong integrations with key systems like accounting software and HR software. With over 500 integration options and an array of accolades, highly acclaimed DocuWare is our choice for best document management system for integrations.

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DocuWare’s software is a smart option for those looking to ditch their paper-dependent processes for a seamless workflow between their document management system and regularly used applications. The software offers cloud storage capabilities that range from 20GB to 250GB, perfect for small and midsize businesses with significant storage needs. Documents imported into the system are indexed via intelligent automated processes so businesses don’t need to waste time with error-prone manual data entry.

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Why DocuWare Is Best for Integrations

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Among all the available options, DocuWare stood out as the best pick for integrations due to its array of more than 500 integrations, the most we found in our review of document management systems. DocuWare offers a secure and easy way to connect your file cabinet with the applications you use most, including payroll software, accounting software, HR software and more. Users don’t need to worry about programming or how to code to create these integrations — everything is done for them with the click of a button. Between the breadth of integrations and the simplicity with which even new users can build them, we felt DocuWare was the clear choice.

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Usability

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Navigating the DocuWare software is simple. The platform features an intuitive user interface that is made easily navigable by its drag-and-drop functionality. We liked that paper documents can quickly be uploaded in a number of ways, including via mobile device, which enables flexibility for the workflow that is best for your team. DocuWare also automatically classifies and indexes uploaded documents, making it easier to organize your digital archive without a lot of extra work on the front end. Users who want to take it one step further can manually add more metadata to each document, enabling detailed, customized organization of your digital files.

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DocuWare’s file naming fields allow you to enter and view advanced metadata, making it easier to search for and retrieve specific documents later. Image source: DocuWare

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In addition, users can easily integrate their most important programs, such as Salesforce and Microsoft Outlook, for seamless workflows. However, Mac and Linux users have fewer options with DocuWare; they must rely on the web-based application, as the desktop application is only available for Windows operating systems at this time.

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Users can set up the program using premade configurations, or they can create custom workflow automations that are right for them. Custom workflows don’t require any programming knowledge, and the system’s drag-and-drop functionality extends to this feature, so it’s easy for any user to design a workflow. Users can access resources in the Knowledge Center to learn more about setting up their workflows correctly and quickly.

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DocuWare Features

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IntegrationsDocuWare can integrate up to 500 different applications and makes building new integrations easy for any user.
Smart connectWith a single click (and without programming), users can seamlessly connect any application to DocuWare to streamline redundant tasks.
Drag-and-drop user interfaceUsers — even those without technical skills — can use drag-and-drop capabilities to create custom workflows.
AI indexingIntelligent indexing organizes your files quickly and efficiently by using AI to capture and scan key data fields on paper documents.
Version controlEdits made to documents are saved as new versions, capturing a full edit history of each document.
Onboarding and employee documentationUsing DocuWare’s software, confidential employee information can be securely stored and encrypted, and employees can save time and resources utilizing the self-service options.
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Integrations

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DocuWare offers unparalleled integration options, which are available for up to 500 different applications, including Oracle, Sage, Infor and Microsoft Dynamics. Integration options include simple click-and-connect options, along with deep API-based integrations for those looking to customize their system further. DocuWare also offers dedicated connectors for Outlook, SAP and more.

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These integrations are especially important in a document management system since it houses every digital file an organization needs. The ability to seamlessly communicate with all other business software in the ecosystem means your entire digital archive is available to your other software. We especially liked that if you use software that isn’t already integrated with DocuWare, you can easily build a new connection.

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Smart Connect

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Smart Connect allows users to reveal all the documents associated with a specific process — including invoices, contracts, emails, receipts and resumes — with a click of a button to remove any redundant data entry tasks. This is also helpful for categorizing files by their purpose. For example, you can create a folder for all payroll-related items and a separate one for any HR files.

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Thanks to DocuWare’s integration capabilities, once Smart Connect helps you organize your files, you can easily share any data they contain with other key systems. For example, your payroll documents can help you update your payroll software and accounting software accordingly, reducing the amount of manual data entry work needed.

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DocuWare’s intuitive document tray makes it easy to visually view and organize your files. Image source: DocuWare

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Drag-and-Drop User Interface

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In our review of document management systems, we found DocuWare’s drag-and-drop capabilities to be a standout usability feature; it allows users to easily customize their workflow to suit their own processes. DocuWare employs its drag-and-drop features in a way that eliminates the need for any programming knowledge to build integrations or custom workflows (though if you do know how to code, you can create even deeper customizations.)

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AI Indexing

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You can use DocuWare’s AI to intelligently convert documents of any into readable versions for fast, automated indexing. Documents can be read and converted automatically within seconds, taking manual processes off employees’ plates so they can focus on bigger tasks. This gives your digital archive a basic organizational hierarchy and searchability even without manually entering any metadata or tags. We liked how this feature could streamline big digitization projects and eliminate the need for tedious manual entry.

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Version Control

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Versioning is an essential feature we looked for in every document management system we reviewed. Version control allows users to actively collaborate on editing documents while still retaining old versions. This is useful for living documents that need to be regularly updated, and gives users the peace of mind that old versions can be referenced in case of an audit or reverted to if a mistake occurs. Version control is critical for a document management system that’s being actively used and updated by a team, rather than simply serving as a digital archive.

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With DocuWare’s collaborative versioning functionality, multiple users can leave comments and change requests on each iteration of a document. Image source: DocuWare

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Onboarding and Employee Documentation

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Employee processes, including most HR tasks, can be handled directly within the DocuWare software. We liked that you can use the software to create, store and fill out documents such as employee records and resumes from anywhere. You can also use e-signatures to collect legally binding signatures when needed. This functionality means you can use DocuWare to fulfill some basic HR functions, though for more comprehensive HR processes the system can also integrate with your HR software.

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DocuWare Cost

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DocuWare offers four pricing plans: Base, Pro, Enterprise and Large Enterprise. Unlike the comparable options at many companies, each DocuWare plan includes a full-featured version of the product; only storage space and the number of users supported depend on the plan you choose. The Base plan offers 20GB and licenses for four users, Pro comes with 50GB and supports 15 users, Enterprise offers 100GB of storage and supports 40 users, and Large Enterprise comes with 250GB of storage and accommodates 100 users.

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According to a DocuWare representative we spoke with, businesses can expect to pay between $25 and $100 per user per month for the full-featured cloud system. On-premises pricing can begin as low as $5 per user per month. For more specific pricing, contact the company directly to get a quote or to schedule a product demo. Sign up for a 30-day free trial to get started; the trial period does not require your credit card information.

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DocuWare Setup

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DocuWare offers free live demos to help you set up the system and train employees on the features that are most important to successfully implementing the platform. During the demo, businesses can discuss a realistic timeline for getting their DocuWare software up and running, so teams can begin learning the product ahead of time. DocuWare suggests a business should take about 90 days to transition to its paperless system.

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This 90-day period involves digitizing paper records and creating an organizational hierarchy for indexing them. DocuWare’s AI indexing takes some of this heavy lift off users, but some manual entry is encouraged to get the most out of the system. Once the initial foundation for a paperless system is in place, users can begin implementing DocuWare in their day-to-day workflow. While the software is relatively intuitive compared to some other systems we reviewed, we highly recommend training with the DocuWare team.

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DocuWare is available as a download-free web service, and Windows users can download a desktop app. The company also offers a mobile app for iOS and Android operating systems.

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\"DocuWare

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With DocuWare’s mobile PaperScan app, you can easily digitize important documents by uploading photos from a mobile device. Image source: DocuWare

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DocuWare Customer Service

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Compared to others in the industry, DocuWare offers a competitive level of customer service with a range of options, including a knowledge center and community forums. Users who are just getting started can access DocuWare’s Knowledge Center, including the How-to Portal, for step-by-step guides to help set up your system.

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Those with business-critical questions or more specific questions about their configuration can find answers through DocuWare’s support portal, which you can access by logging in with your credentials and filling out the online form. Users can submit requests for help from an expert and browse answers to previously asked questions. Support via the portal is available 24 hours a day, five days a week (Monday through Friday).

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Users can also seek help by asking the DocuWare community questions in the community forums.

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DocuWare Drawbacks

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Businesses looking to use a document management system as their primary storage space may find that the 20GB storage capacity (in the Base plan) does not offer much leeway. Those on the Large Enterprise plans can quickly reach their storage limit as well, since the 250GB storage space is shared among 100 users. Businesses should consider their storage needs when looking at DocuWare. If you need a document management system with expansive storage capacity, consider our FileHold review for a system that offers up to 4TB of storage.

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In addition, businesses should take stock of the operating systems their employees use, as DocuWare’s desktop application is only available for Windows operating systems. This means Mac and Linux users must rely on the web browser application, which can potentially cause collaboration problems among the team.

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Methodology

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In our review of document management systems, we researched and analyzed dozens of options. We began with a pool that included all the vendors on our best document management software list. We researched each provider by investigating its services, watching tutorials and how-to videos, testing out the system when possible, and reading user comments. We also considered the pricing listed on these services’ websites.

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During our research into the best document management system for integrations, we considered the scope of pre-built integrations, the ability to build new integrations with an open API, and how easy it was to create new integrations. We also considered overall ease of use, security measures, workflow abilities, mobile access and customer service. We found DocuWare offers the most pre-built integrations and the easiest method to create new ones, as well as an intuitive system that most users could learn and adapt to quickly.

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DocuWare allows users to easily configure and export data to their desired location. Image source: DocuWare

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Overall Value

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We recommend DocuWare for …

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  • Small to midsize businesses looking to streamline their paper-dependent processes.
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  • Businesses looking for an abundance of integration options.
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  • Those in need of a cloud-based storage solution under 250GB in capacity.
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We do not recommend DocuWare for …

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  • Companies with a mix of Mac, Linux and Windows users.
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  • Businesses looking for a storage solution with a large amount of space.
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  • Large organizations with over 100 people.
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\n"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"1052","_score":2,"_source":{"canonical":"https://vaylees.com/15902-creating-online-forms.html","displayModified":"2023-10-26T17:06:50Z","docType":"article","editorsPick":false,"href":"15902-creating-online-forms.html","id":"1052","ID":1052,"isSponsored":false,"published":"2020-11-05T18:57:00Z","site":"bnd","stream":"Here are the basics of building online forms and a few tools you can use to get started.","subtitle":"Here are the basics of building online forms and a few tools you can use to get started.","title":"Creating Online Forms: A Step-by-Step Guide","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Find A Solution","slug":"find-a-solution"},"sub":{"name":"Marketing Solutions","slug":"marketing-solutions"}},"meta":{"robots":"index, follow","description":"Online forms help businesses easily capture customer and prospect information. Learn how to create online forms and find out what tools can help."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04073442/computer_Prostock-Studio.jpg","caption":"Prostock-Studio / Getty Images","alt":""},"content":"

Every company needs the right data to make better business decisions. You can easily collect data from customers and prospects while generating leads by creating and distributing online forms to gather information to help you make data-driven decisions.

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Writing, designing, and implementing online forms is straightforward, with a little effort and the right tools to help you feed data into your existing business systems.

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Here’s what entrepreneurs, small business owners, and marketing professionals should know about creating, using, and analyzing online forms to improve your business.

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How do you create an online form?

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Many free and paid online form builders can help you create and integrate forms into your marketing automation system. While the layouts, features, and workflows vary, the steps to create an online form are generally the same with every program:

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  1. Create a new form. Regardless of your form builder, you’ll start by creating a new form. In most cases, you can create one from scratch or modify a prebuilt template.
  2. \n
  3. Edit and format your new form. Next, you’ll edit your form by adding fields. These can be preset or custom fields. Once you’ve decided what type of form you want to use, write your questions and responses. It helps to do this in a word processing document in case you need to return to the original form.
  4. \n
  5. Test your form. Double-check to ensure your form works on multiple web browsers and devices. Fill out and submit the form through your non-default web browsers and phone to ensure users’ responses go through regardless of how they submit them. Making your website Google mobile-friendly is among your best practices for maintaining a strong presence through organic web search.
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  7. Send or publish your form. Once you’ve reviewed your form and everything looks clean, it’s time to send it out to the masses. You can publish it as a web page on your site or include it in an email marketing campaign.
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What is the purpose of online forms?

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Online forms are simple questionnaires you place on your website to gather feedback from customers and prospects. They’re interactive web pages or HTML forms that let users input information. Once they hit the Submit button, their responses are sent to servers for processing, analysis, and evaluation.

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Chances are, you’re very familiar with filling out online forms, including registration forms, business surveys, order forms, or custom forms on a specific topic. They are often simple questionnaires seamlessly integrated into a company’s website. If you’ve ever purchased something online and typed in your credit card information, you’ve used an online form.

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Various online form types can appear across your website, such as:

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  • Text boxes. The most common online forms are text boxes where users can type answers to simple questions. You can place these fillable forms on any website page and ask as few or as many questions as you’d like.
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  • Checkboxes. If you’re not looking for open-ended responses, your online form can use checkboxes for multiple-choice questions, drop-down menus, and submit buttons.
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How can businesses benefit from online forms?

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Online forms serve broad purposes and can help businesses in many ways. Benefits include:

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  • Online forms help you collect data. Online forms are an efficient and organized way for businesses to collect data about their target customers and prospects. The questions you pose are objective and original because you’re creating and publishing online forms to glean specific information.
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  • Online forms gather accurate data. The data you collect from online forms is accurate because it comes straight from the source.
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  • Online forms are accessible. Online forms help you gain information from a wide swath of customers and prospects because they’re accessible via mobile devices, tablets, and desktop computers.
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  • Online forms can help you improve marketing decisions. In addition to directly capturing data, online forms can capture details on how customers interact with the page on which the form is embedded. Once you’ve accumulated these measurements, you can take this information to your team and make analytic-driven marketing and advertising decisions to improve your company’s marketing return on investment (ROI).
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What should your online form include?

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Your online form should consist of one or more questions, where users can either type a response or select a menu option. The form’s purpose will dictate the questions you include. Typical online forms include text boxes, drop-down lists, checkboxes, radio buttons, and feedback messages.

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Consider these best practices to gather valuable information in your online form:

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    • Ask straightforward questions. Your questions should be simple, concise, and easy to understand. Don’t use too many words when a few will do. Additionally, don’t use complicated language when simple words convey the same meaning.
    • \n
    • Ask as few questions as necessary. While your first instinct may be to ask a multitude of questions to get as much information about your customers as possible, consider precisely what you’re looking for. It’s difficult to zero in on the insights you need when you have excessive data.
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    • Streamline your questions. Capture the information you need in the order of its importance. For instance, if they’re purchasing something, payment information is key. Break down the information-gathering process into steps that build on each other.
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    • Make the process painless. People don’t want to spend a lot of time filling out your form, so make it as quick to complete as possible. To make the process painless for users, ask questions that take advantage of their web browser’s autofill, such as name, email address, location, and phone number. The less time a user must spend filling out your form, the more likely they are to respond to it.
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Tools for building online forms

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An excellent online form builder should be straightforward, intuitive, and easy to customize. Here are a few of the best free and paid online form builders that can help you create your own forms without hurting your small business marketing budget.

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  • Google Forms. Google Forms is easy to use and free with your Google account. It saves all your information into Google Sheets spreadsheets for your analysis. Google Forms also has premade templates in case you aren’t sure how you want to format your online form.
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  • Microsoft Forms. Microsoft Forms is essentially Google Forms for Excel or Microsoft Office users. It also offers unique response types such as net promoter score (NPS) not always available with online form tools.
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  • WuFoo. WuFoo, which starts at $14.08 per month, is a great form builder if you want to collect plentiful data and use it for complex reporting. Its secure interface allows you to receive online payments, which is necessary if you want to start selling online.
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  • Typeform. If you’re prioritizing design for your online forms, Typeform may be the way to go. Typeform starts at $25 per month, and you can make your forms more engaging by adding images, videos, and GIFs. It also allows you to customize the welcome screen and menus.
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  • JotForm. JotForm’s free builder is more customizable than Google Forms and is one of the only free builders to accept payments. JotForm has an extensive template library, with over 10,000 form templates you can easily integrate with your marketing tools.
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  • Formstack. Used by Netflix and the NHL, Formstack allows you to create online forms without knowing how to code. Their workflow lets you connect to all your business apps and keeps you updated on your forms through email notifications. Prices start at $50 monthly.
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Forming your forms

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Using online forms as part of your marketing plan can be easy when you choose user-friendly tools and create meaningful questions for your audience. The data these forms capture can be uniquely powerful – it comes directly from users who have taken the time to provide it. That means you’ll often get a highly accurate picture of your customer base. With the right form – and the right technology behind it – you can get to know your customers like never before.

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Max Freedman contributed to the reporting and writing in this article.

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"2858","_score":2,"_source":{"canonical":"https://vaylees.com/8331-most-productive-work-time.html","displayModified":"2023-10-24T18:12:14Z","docType":"article","editorsPick":false,"href":"8331-most-productive-work-time.html","id":"2858","ID":2858,"isSponsored":false,"published":"2018-07-11T23:50:00Z","site":"bnd","stream":"Understand the periods of the day when you feel most productive, and plan your tasks accordingly.","subtitle":"Understand the periods of the day when you feel most productive, and plan your tasks accordingly.","title":"What’s Your Most Productive Work Time? How to Find Out","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Lead Your Team","slug":"lead-your-team"},"sub":{"name":"Personal Growth","slug":"personal-growth"}},"meta":{"robots":"index, follow","description":"The traditional workday may not maximize performance for each worker. Discover your most productive work times and optimize your schedule for productivity."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04072400/wfh_AnnaStills.jpg","caption":"AnnaStills / Getty Images","alt":"woman working in a home office"},"content":"

People who work a traditional 9-to-5 schedule know they’re not always operating at peak productivity. Productivity slumps are commonplace, and there’s often no option other than powering through, even if it leads to substandard output.

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However, the pandemic forced a cultural shift as many businesses pivoted to work-from-home and flexible employment models, making traditional work hours less of a factor in project goal setting and achievement. What’s emerged is a newer understanding of productivity that accepts and respects a personally guided workday.

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We all have various times when we’re most dynamic and productive. We’ll explain how to identify these periods and harness this time to improve productivity and work quality.

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How to boost productivity with personalized time management

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Boosting productivity isn’t about working more; it’s about determining when you’re most productive, discovering what’s draining your focus, and proactively restructuring your workday to get more done.

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1. Understand that working more won’t necessarily help productivity.

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Too often, when professionals don’t meet their productivity targets during traditional work hours, they work evenings and weekends to catch up. This tendency is especially prevalent among — and dangerous for — business owners who already have stress-management issues.

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But Kelly Heinrich, senior director of transformation and internal communication at Dynatrace, noted that longer hours won’t make you more productive. “This shift in office culture [toward working longer hours] should not be the standard daily activity [for] maximum productivity to be restored into the workplace,” Heinrich said.

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With the average human attention span at just over eight seconds and topping out at just over 50 minutes, working too much can actually diminish productivity. In fact, breaks are the key to productivity: Daydreaming, meditation and even naps can improve productivity and performance.

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2. Pay attention to your daily habits.

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Working too much isn’t the answer. To improve productivity, you must take advantage of your personal focus patterns. Everyone’s focus cycle is different. To maximize your productivity, you must understand your mind’s rhythms. Consider the following best practices for discovering when you’re most productive:

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    \n
  • Monitor yourself during the day. To find your most productive work times and patterns, pay close attention to your daily habits, energy and focus levels. For example, you likely know whether you’re an early bird or a night owl based on when you feel most alert and attentive. Note when you feel most focused.
  • \n
  • Note when you feel thrown off course. In addition to discovering when you feel most focused and productive, determine when you feel thrown off course. For example, if you sleep in, is the rest of your day a struggle at work? If you skip breakfast or your morning walk, is your productivity affected?
  • \n
  • Ask colleagues for their opinions. It can be helpful to ask co-workers when they observe you to be at your peak energy and focus and when you start to struggle. Requesting feedback about your work patterns from trusted co-workers can provide valuable insight.
  • \n
  • Keep a diary to identify your focus cycle. Consider keeping an informal diary about what you accomplish throughout your workday to help you identify your productivity peaks and valleys. You’ll begin to identify patterns that indicate when you’re most and least productive.
  • \n
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3. Determine what’s draining your time.

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Next, determine what’s holding you back from getting your work done. Productive people often say their secret is excellent time management, but not everyone is naturally good at it.

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Ask yourself if the following time-management obstacles affect you:

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    \n
  • Do you set priorities? Failing to set priorities can diminish your productivity. You’ll flit from one project to another without getting vital work done. Take a few moments in the morning or the night before your workday to prioritize your tasks and projects. Tackle your most important tasks when you’re most productive.
  • \n
  • Are you surrounded by distractions? Distractions can kill workplace productivity. Are you surrounded by a noisy office, or are you drawn to your smartphone? Do you tend to browse the internet or get caught up in office gossip? Are meetings draining your focus? List the distractions that hurt your productivity, and create a plan to minimize them.
  • \n
  • Do you underestimate the effort a task will take? Not understanding a task’s scope can lead to inadequate preparation and project hiccups. Take a moment to assess a project’s scope, dedicate appropriate planning and resources to it, and set productivity milestones to stay on track.
  • \n
  • Do you procrastinate? The first step toward overcoming procrastination is understanding how it affects you. Do you put off projects and tasks and avoid specific situations? Do you do things at the last minute? Try using productivity apps that can help you stay focused and organized.
  • \n
  • Do you multitask too much? Multitasking is often necessary for busy professionals, but too much multitasking means not paying adequate attention to any one task. Give your projects the focus they deserve.
  • \n
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How to maximize your most productive work time

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Once you understand when you’re most productive and what’s draining your productivity, you can begin planning your schedule to maximize your effectiveness.

\n

Proper workday planning goes hand in hand with setting priorities. If you start your workday without a plan, you run the risk of aimlessly skimming through tasks and projects with no real impact.

\n

Try these workday planning tips:

\n
    \n
  • Plan your most productive time with care. Plan your workday with your highest-priority projects slated for your most productive time.
  • \n
  • Plan for necessary-but-time-consuming tasks. Tasks such as answering emails and attending meetings are time-consuming yet unavoidable parts of many workdays. It’s crucial to minimize the productivity drain and wasted time associated with these tasks. For example, set a defined block of time for responding to emails, and create and adhere to strict meeting timelines and agendas.
  • \n
  • Plan tasks according to your energy levels. Take advantage of peak energy levels, and note when you’re likely to be unmotivated. For example, if you find yourself drained after meetings, avoid working on high-priority projects that require your full energy and attention after a meeting. Instead, consider slotting email responses or another low-energy task during those times. Conversely, if you know you’ll be energized after working on a particular project, schedule a challenging task right after to take advantage of your momentum.
  • \n
  • Consider a flexible schedule. Many employers are open to accommodating remote and flexible work schedules for their employees. Remote work can boost productivity for many people, and flexible workplace options can help businesses attract and retain top talent. If you feel more schedule flexibility could boost your productivity, discuss your options with management. For example, if you are most productive early in the day, see if it’s possible to work from 7 a.m. to 3 p.m. You’ll avoid your afternoon slump and spend your most productive hours on vital projects.
  • \n
  • Schedule breaks and wellness into your day. Consider your health and wellness when you’re planning your workday schedule. For example, schedule exercise, breaks and healthy meals to ensure you’re at your best. Take time to stretch, take a walk, get fresh air, meditate or otherwise refresh your mind.
  • \n
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Experiment with different work patterns to create the most effective workday plan for you. Not every day will be the same, but each day can have a well-thought-out productivity plan.

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Rethinking productivity can pay off

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Whether you work in a traditional 9-to-5 workplace or have a flexible or remote situation, understanding your peak productivity times can energize your output, keep your career on track, and boost your overall satisfaction. If you’re a manager, helping your team members maximize their effectiveness can benefit the entire organization and increase morale across the workplace.

\n

Alex Halperin contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"15107","_score":2,"_source":{"canonical":"https://vaylees.com/marketing-fails","displayModified":"2023-10-20T18:59:34Z","docType":"article","editorsPick":false,"href":"marketing-fails","id":"15107","ID":15107,"isSponsored":false,"published":"2022-08-30T20:17:41Z","site":"bnd","stream":"Don't make the same mistakes as the brands behind these cringe-worthy marketing fails.","subtitle":"Don't make the same mistakes as the brands behind these cringe-worthy marketing fails.","title":"7 Cringe Marketing Fails to Learn From","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Find A Solution","slug":"find-a-solution"},"sub":{"name":"Marketing Solutions","slug":"marketing-solutions"}},"meta":{"robots":"index, follow","description":"These \"cringe\" marketing fails offer prime examples of what brands should avoid when planning and executing their campaigns."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04074752/Marketing-strategy-team-meeting_Wavebreakmedia_Getty-Images_BDC.png","caption":"Wavebreakmedia / Getty Images","alt":"marketing fails"},"content":"

Though teams invest significant time and effort into marketing campaigns for months before they go live, some completely miss the mark. Maybe a campaign’s message becomes misinterpreted, the tone makes light of a serious social issue or an honest mistake turns into an embarrassing viral video. To avoid these mistakes in your own business, here are some of the most cringe-worthy marketing failures that big brands have suffered through and what you can learn from them.

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1. Pepsi and Kendall Jenner miss the mark on social activism.

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\"kendall

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Source

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Pepsi’s infamous 2017 commercial with supermodel Kendall Jenner – pulled mere days after debuting – put itself in the crosshairs by completely missing the mark on its message of unity. In the commercial, Jenner notices a nearby protest amid her photoshoot. It’s unclear what the activists are marching for, but she joins them, takes a Pepsi from a cooler and approaches a police officer to hand them the can of soda. The officer takes a sip, someone snaps a photo and everyone cheers.

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Public outcry, especially on Twitter, was so scathing that Pepsi had no choice but to issue an apology and pull the entire campaign from syndication. Pepsi also released a statement that read: “Pepsi was trying to project a global message of unity, peace and understanding. Clearly we missed the mark, and we apologize. We did not intend to make light of any serious issue. We are removing the content and halting any further rollout. We also apologize for putting Kendall Jenner in this position.”

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Interestingly, this isn’t the first time a soda company tried to use protest movements to sell its product. In 1971, Coca-Cola adopted the “flower power” opposition to the Vietnam War in its “I’d Like to Teach the World to Sing” advertisement.

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The lesson: Strive for authenticity in messages that involve hot-button social issues. Even if the campaign’s aim is genuine and positive, pull in focus groups to ensure the message lands the way you intend with the appropriate audiences. 

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2. Dove’s ‘body positivity’ packaging raises body image questions.

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\"Dove

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Source

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In 2017, the Unilever brand Dove sold body wash with limited-edition Real Beauty Bottle packaging in the U.K. The TV spot that announced packaging, which was designed to resemble different female body types, reminded buyers to “celebrate the many shapes and sizes of beauty.” Packaging came in six varieties and failed miserably after release.

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Dove rarely fails to convey a message of body positivity, as it’s been the brand’s theme and vision for more than 15 years. Unfortunately, this well-intentioned campaign’s message communicated the opposite of what it wanted to do. The Real Beauty Bottles acted as a proxy for the buyer’s own body, forcing them to confront what is often a very difficult internal struggle with body image for many. Does the buyer choose the bottle they think they are or the one that is their ideal body type? Should they feel poorly about their body image and the bottle they chose?

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While Dove was left to do some damage control from the backlash, the brand’s well-respected image and loyal customer base ensured this failure didn’t sink the company.

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The Lesson: Not every product needs to categorize your customers or remind them of their potential insecurities, even if the intention is to help embrace them. Sometimes functionality is better than kitschy segmenting. 

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3. Huggies makes fun of fathers.

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\"Huggies

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Source

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In 2012, Huggies marketing failed hard with “The Dad Test.” The multichannel campaign pitted fathers against their children’s dirty diapers. One campaign spot stated, “To prove Huggies diapers and wipes can handle anything, we put them to the toughest test imaginable: dads, alone with their babies, in one house, for five days, while we gave moms some well-deserved time off. How did Huggies products hold up to daddyhood? The world is about to find out.”

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Huggies hinged its campaign on the incorrect stereotype that dads, the “dunces” of the family, would struggle to take care of their children without their partners around. Not only did it make fun of fatherhood, but it also ostracized same-sex couples with two fathers, as well as single parents. The backlash from dad bloggers pointed out the ridicule. One father commented, “It seems to me they’re hoping for comments like ‘Huggies diapers are so good, even dad can use them.'”

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In the end, Huggies issued a half-hearted apology that reiterated the message it tried to get across: spotlighting real dads and their kids putting Huggies products to the test.

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The lesson: If your message is fun or lighthearted, ensure it’s inclusive too. Consider all the people who use your product or service, and ensure messaging doesn’t lean on stereotypes to work.

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4. Airbnb sends ‘Floating World’ email during a massive hurricane.

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\"airbnb

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Source

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Airbnb’s “Floating Worldemail marketing campaign suffered horrible timing in 2017 as Hurricane Harvey pounded Houston, Texas. In an ill-timed email marketing campaign, Airbnb advertised water-themed homes and attractions like houseboats and waterfall slides, promising ways of “how to spend a day – or entire trip – without touching dry land.” Other headlines included “Stay above water” and “Live aquatic life with these floating homes.”

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While the public didn’t widely condemn the brand, those affected felt it was insensitive and took to Twitter to call out the brand’s mistake. Airbnb apologized, stating, “The timing of this email marketing campaign was insensitive and we apologize for that. We continue to keep everyone affected by Harvey and all the first responders and their families in our thoughts.”

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Unlike other brands, Airbnb has built disaster relief into its brand, often activating a disaster relief program that connects displaced people and emergency workers with local hosts who offer their homes for free.

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The lesson: While marketing teams can’t anticipate or avoid natural disasters, know what messages are running – and where – to enable quick pivoting. In addition, having a strong corporate social responsibility program can lessen a mistake’s impact.

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5. Bing attempts to ‘verb’ itself.

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\"bing

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Source

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When internet users think of a search engine, they think of Google. Conversations often start with “I Googled the address” or “Can you Google that?” In the early 2010s, Bing attempted to get in on the search engine-turned-verb action, encouraging users to “Bing and decide.”

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It didn’t stick.

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The campaign to overtake Google as the top search engine failed miserably, with users and even Microsoft employees refusing to adopt the awkward phrase in casual language. To make matters worse for Microsoft, the company continued the campaign for a bit. When it finally gave up, it chalked it up to failed marketing rather than a poor initial idea.

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Over a decade later, Microsoft’s Bing remains a powerful search engine. Globally, it trails Google with the second-highest market share in the search engine market: 3% compared to Google’s 92.5%.

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The lesson: Focus on your unique value proposition, and avoid copying competitors’ messaging. It can painfully backfire, leaving you farther behind your competition than when you started. 

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6. Audi compares women to used cars.

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\"audi\"

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Source

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In 2017, German car manufacturer Audi released an ad with the used-car division of its joint venture in China. In the advertisement, a bride and groom stand ready to get married when the groom’s mother halts the wedding to aggressively inspect the bride’s body – pinching her nose, ears and lips. The mother then gives an A-OK hand gesture but drops her face as she sees the bride’s chest sigh in relief. The ad immediately cuts to an Audi driving on a highway, with a voiceover stating, “An important decision must be made carefully.”

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Unsurprisingly, Audi faced massive backlash for the ad that compared women to used cars, with many critics calling out the sexist undertones of the commercial. After the commercial aired, it became a trending topic, with nearly 200,000 views on Weibo (China’s version of Twitter). Audi apologized profusely and withdrew the commercial.

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In an email to The Washington Post, Audi spokesman Moritz Drechsel said, “The ad’s perception that has been created for many people does not correspond to the values of our company in any way. The responsible department of the joint venture has arranged a thorough investigation of the internal control and coordination processes so that an incident like this can be excluded in the future.”

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The lesson: Drawing humorous parallels from products to product users is tricky to get right. If you’d like to use a comparison, pilot the message with the audience you’re highlighting in the message to ensure clarity and inclusivity.

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7. Susan G. Komen ‘breaks up’ with Planned Parenthood.

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\"Susan

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Source

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For foundations like Susan G. Komen, cause marketing seems easy enough with its built-in values and near-global reach. However, in 2012, the foundation publicly stopped funding a cause that it has supported since 2005: Planned Parenthood’s breast cancer screenings.

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The negative uproar was immediate and swift, placing Komen’s value for comprehensive women’s health under a microscope. Instead of releasing a clear statement, Komen seemed to sidestep the issue by citing a new internal rule, refusing to respond to critics and blaming Planned Parenthood’s investigation from Congress for the split.

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The lesson: Understand the impact partnerships have on your business, especially if the partnership is with a cause-driven organization your target audience cares about. If and when you need to break ties, strategize a transparent communication plan to lead the narrative instead of reacting to it.

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Learning from big brands’ mistakes

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Marketing trends come and go, and what’s viral today may be forgotten in a few weeks’ time. However, careful planning and consideration of your audience’s reaction to your campaigns is a timeless strategy that will help you avoid backlash like the brands listed above received.

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As you develop your marketing materials, it’s wise to test your ideas with a small sample audience, whether it’s a colleague in another department or a formal focus group from your target demographic. Either way, getting an outside perspective on your team’s creative assets can help you spot potential issues and misinterpretations before they make (negative) headlines.

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"3223","_score":2,"_source":{"canonical":"https://vaylees.com/6503-negative-customer-reviews.html","displayModified":"2023-10-27T16:42:22Z","docType":"article","editorsPick":false,"href":"6503-negative-customer-reviews.html","id":"3223","ID":3223,"isSponsored":false,"published":"2017-08-30T23:30:00Z","site":"bnd","stream":"It’s never encouraging to receive negative reviews from customers, but how you respond and learn from them can improve your business processes and generate additional customer loyalty.","subtitle":"It’s never encouraging to receive negative reviews from customers, but how you respond and learn from them can improve your business processes and generate additional customer loyalty.","title":"Negative Customer Review? Turn It Into a Positive Opportunity","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Grow Your Business","slug":"grow-your-business"},"sub":{"name":"Sales & Marketing","slug":"sales-marketing"}},"meta":{"robots":"index, follow","description":"Negative customer reviews are common, especially in public-facing businesses. Here’s how you can adapt your business processes and generate customer loyalty from negative customer reviews."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04081709/1554241424.jpeg","caption":"kumakumalatte/Shutterstock","alt":""},"content":"

As a business owner, it’s never encouraging to receive negative reviews from customers — but they’re not necessarily going to doom your business, either. Leveraging negative reviews to improve your processes and responding with honesty and empathy toward the reviewer can generate customer loyalty not only from the customer who had a negative experience but from other customers that see your reply. This guide explains how to handle negative customer reviews and bolster your brand’s public image.

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Negative reviews are on the rise (but don’t feed into it)

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Negative customer reviews are common when dealing with the public, and there’s evidence that it has only gotten worse since the COVID-19 pandemic. Negative reviews and interactions are to be expected, but it’s how you and your staff respond to them that matters.

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“Negative reviews can shine a positive light on good reviews. When a business shows all of their reviews, they prove they have nothing to hide. Consumers tend to trust reviews more when they see a mix of good and bad feedback.” said Jessica Hulett, content manager at ecommerce marketing platform Yotpo.

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“[Additionally], bad reviews give shoppers a real picture of what they can expect from your products and service, ” Hulett added. “Shoppers who read those negative product reviews know that they need to order a larger size. Shoppers can see the reason behind negative feedback and use this knowledge to make smarter purchase decisions, which will allow your brand to build a sense of community.”

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A 2021 survey by Power Reviews found that 96 percent of consumers specifically look for negative reviews at least sometimes. Over half of shoppers specifically seek out one-star reviews. That makes replying to these reviews all the more important, but how should you respond?

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How to handle negative reviews

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When receiving a negative review, it is important not only to acknowledge an unsatisfied customer but to respond in such a way that they will want to give your business another chance, thereby proving to other potential buyers that your business has top-notch customer service. Here’s what you need to know about proper handling and responding to negative reviews.

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Answer quickly with a personalized response

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In the age of instant and constant communication, customers expect instant and constant gratification in their customer journey, including the post-purchase brand interaction.

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“The first thing you should do when responding to a negative review is to acknowledge the problem. Let the customer know that the experience they had is unacceptable according to your standards and you are sorry.” said social media marketing agency owner Ann Brennan.

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Brennan noted that as a business owner, your response is there not just for the negative reviewer but for every single person who is reading through the reviews, many of whom may have never even patronized your business and are still considering whether they want to give you their business. A generic stock response will make your brand appear impersonal and drive the potential customer further away.

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It takes time to read and thoughtfully respond to every negative comment but doing this will boost your customer retention rates in the long run. According to a 2020 Zen Business report on customer feedback, more than a quarter of people ages 30 and older and more than a third of 20-somethings reported changing a negative review to a positive one after their feedback was addressed and some deleted the unfavorable reviews.

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Hiring an employee or a reputation management company to help with monitoring for and responding to negative reviews is one way to stay on top of them. Setting up alerts and using all-in-one social media management tools can help you quickly locate and respond to comments across all platforms.

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Apologize and empathize

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Customers may not always be right, but if you tell them they’re wrong, you will lose their business and other potential customers. When responding to a bad review, a brand needs to express understanding and empathy without blaming the customer and be apologetic about the less-than-ideal experience.

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“Let the customer know that you empathize with his or her situation,” Jan Vels Jensen from customer experience consultancy Glassbox said. “Make up for the mistake, even if it’s not your fault. By making amends, you’re much more likely to get the customer’s business again.”

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Corey Kossack, chief executive officer (CEO) of learning and talent platform Aspireship, recommends addressing the problem in the same forum where you find the review.

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“All issues should initially be acknowledged in the same forum as often as possible,” Kossack said. “The company does not need to address the details of the situation in this forum but responding in the same forum first is important because it shows other customers who come across the review that you are acknowledging the issue in question and taking steps to find a solution.”

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The next step in resolving a complaint can be done more privately over the phone or email, said Kossack.

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“Customers want to feel heard and understood, so it’s important to find out what your customers want and how you can provide value,” he added.

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Ask for a second chance

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Asking customers how you can improve their experience with your brand in the future is the key to retaining their business. Vels Jensen said that brands should listen and learn from negative feedback. Customer complaints contain valuable information that can help improve both your overall customer service and the trust consumers place in your brand.

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Offering a coupon, voucher or replacement product after a negative experience can also help you earn a second chance, Phil Penton, CEO of Xcite Automotive, said. While free products or services shouldn’t be your default response (customers catch on quickly and may give negative reviews solely to receive a free product), this can be a great tactic if there is a problem resolving the customer’s original issue. If you choose this route, be sure to encourage the customer to update their review if the second experience yields better results.

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“If a company receives a complaint from a customer because of a faulty product, it’s usually most appropriate to [replace] the product for free,” Kossack said. “If a customer has a bad experience with a specific service or employee, it’s important to fully understand the reason for dissatisfaction to determine the best resolution.”

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Encourage more reviews

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It’s not easy to take criticism, especially from the people who matter most to your business. But using negative reviews to improve your customer service will give your brand staying power and provide a track record that shows you’re truly committed to your customers. Encourage your customers to leave reviews so you can take full advantage of this branding opportunity.

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For brick-and-mortar businesses, Penton recommended placing signs, table toppers or window clings in your store for review sites that you would like to promote. You can also add a note to your invoices or receipts to leave a review on certain platforms. These reminders can increase the chance that consumers will share their experiences. Even providing incentives, such as discounts for future business following a review, can generate customer loyalty and guarantee another visit.

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“Empowering your customers to comment on your company and taking the time to respond to them makes customers feel valued and wanted,” Vels Jensen said. “Reviews are a great way to show that you are listening and responding to all feedback and that you truly value your customers’ business.”

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Tips for improving online image

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Reviews are one of the many parts of your brand’s online image. The other portion of your brand’s online image is created from your brand’s social media’s pages and its presence in others. If you are unfamiliar with social media or looking to improve your online presence in a positive way, here are some additional methods that are easy to implement:

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    \n
  • Build a website: Establishing a business website gives your customers somewhere to go to interact directly with your brand. A website also projects legitimacy and professionalism, which can help reinforce your brand. Offering contact information gives upset customers a more private outlet before they might resort to publishing a negative review.
  • \n
  • Monitor social media: Facebook, YouTube and Instagram are among the top social media platforms in terms of reach. Each network has more than 1 billion monthly active users. Keep tabs on social media comments and do your best to reply in a timely manner to ensure your followers stay engaged.
    Engage in other business review websites: Creating social proof is important, and building a presence on business review websites like Yelp can be helpful. Encourage your satisfied customers to publish positive reviews too — they can go a long way to counteracting any negative reviews.
  • \n
  • Send emails out to your community: As trust in online media drops, some customers are shunning the reviews of publications. They do, however, want to hear from you directly. Creating email marketing campaigns can provide them with a semi-personalized avenue to respond to how they like your product.
  • \n
  • Be a thought leader: If you provide highly specialized services, your customer base knows what you do already. Writing about what you have done for previous customers or asking clients for a review can help improve your online image as a thought leader in your field, which can lead to more clients.
  • \n
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Changing your negatives into positives

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Ultimately, negative reviews are a part of doing business —you can’t please everyone no matter how hard you try. Each customer interaction is an opportunity to understand your customer base, your product’s reception, your staff’s customer service and other day-to-day interactions that you usually do not get to experience as a business owner. Quickly responding with empathy and accountability toward negative reviews are a great way to dampen a negative experience for a customer as well as show to other potential customers that you are someone who wants to provide the best experience for all customers. Pairing active management of reviews with other tips to maintain — or improve — your online image takes a little effort but provides long-term value for all future customers and is definitely worth investing time and effort in.

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Jill Bowers also contributed to this article.

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"3576","_score":2,"_source":{"canonical":"https://vaylees.com/8692-disc-assessment.html","displayModified":"2024-07-16T21:04:16Z","docType":"article","editorsPick":false,"href":"8692-disc-assessment.html","id":"3576","ID":3576,"isSponsored":false,"published":"2015-12-31T01:24:00Z","site":"bnd","stream":"A DiSC assessment can help managers gain more self-awareness about their leadership style and understand how their employees operate in the workplace.","subtitle":"A DiSC assessment can help managers gain more self-awareness about their leadership style and understand how their employees operate in the workplace.","title":"DiSC Assessment: What Kind of Leader Are You?","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Lead Your Team","slug":"lead-your-team"},"sub":{"name":"Leadership","slug":"leadership"}},"meta":{"robots":"index, follow","description":"DiSC profiles assess a leader's behavioral style and can be a great foundation for leadership tools. Learn how a DiSC assessment works."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04072305/Platoo-Fotography_laptop_ss.jpg","caption":"Platoo Fotography / Shutterstock","alt":""},"content":"\n

If you’re interested in figuring out your leadership type or want to assess your employees’ leadership potential, a DiSC assessment may be able to help.

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A DiSC assessment is a behavioral assessment tool that can help people understand their management style strengths and weaknesses, and ultimately become better leaders. When you can see your tendencies, preferences and even blind spots, you gain the self-awareness needed to guide your team to success even under challenging circumstances.

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We’ll explore DiSC assessment basics, how it works and why assessing your workers’ DiSC attributes can benefit your business.

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What is a DiSC Assessment?

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A DiSC assessment is a behavioral assessment that businesses and other organizations sometimes use to determine employees’ and managers’ leadership strengths and weaknesses. It aims to provide more self-awareness and insight, potentially improving operations and teamwork.

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Psychologist William Moulton Marston first outlined the DiSC behavior model in his 1928 book, Emotions of Normal People.

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Marston’s theory was that the behavioral expression of emotions could be categorized into four types: Dominance, Inducement, Submission and Compliance. These emotional expression types were based on someone’s self-perception in relation to their environment.

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Marston believed that understanding your primary behavioral trait would help you understand and manage your experiences, and foster healthy business relationships.

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In the decades that followed, others developed several assessments using Marston’s theories, eventually leading to the modern DiSC assessment. Today’s emotional styles have changed a bit from the original incarnation: DiSC now stands for Dominance, Influence, Steadiness and Conscientiousness.

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How a DiSC assessment works

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In a DiSC assessment, individuals answer a series of questions. Based on their answers, they are assigned a main personality type (D, i, S or C) and secondary personality characteristics. A DiSC assessment also measures the values you prioritize.

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The results explain the percentage of each style you are and what that means for how you handle challenges, interact with others, approach life and how others perceive you.

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Today, DiSC assessments are most frequently used in business and government organizations to help teams work more effectively together. Typically, a human resources personnel will ask a new hire to take an online DiSC assessment. Respondents rate a series of behavior-related statements – such as “Getting results is one of my top priorities” or “I like to be involved in group projects” – based on how strongly they agree or disagree with each statement. The system will compile the respondent’s answers into a report.

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While there are free assessments available online, the type of DiSC assessment companies usually conduct is more extensive. In addition to basic information, the assessment report can include these details:

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  • It provides your employees’ scores in each dimension, revealing work- and nonwork-related personality strengths and weaknesses.
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  • It suggests personalized tactics and strategies for increased effectiveness with colleagues that have varying results.
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  • It summarizes your employees’ prime values to your organization.
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  • It pinpoints opposite DiSC types and how best to approach them.
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The report is typically shared with the employee, managers to whom they directly report and possibly others who work closely with the individual.

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Why a DiSC assessment works

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Like other personality or behavior-assessment tools, DiSC works by helping your staff become more self-aware. Increased self-awareness will help you recognize your colleagues’ strengths in order to harness them and their shortcomings for a basis in which to improve.

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When everyone has taken the same assessment, you have a common framework to view each employee, which will guide decision-making. For example, when forming a team that needs to work closely with each other, you may want to balance personalities rather than have an overabundance of one type. Understanding other people’s styles and values helps foster effective employee communication, resolve conflict and delegate assignments appropriately.

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Assessment tools like DiSC can also help predict whether any given group is more likely to succeed or fail based on the personality traits of the people it’s composed of. Personality traits, values and “soft skills” are oftentimes better indicators of how well a group will function together than are their “hard skills” like technical expertise. For example, team members who display emotional intelligence and open-mindedness tend to use conflict as an opportunity to drive better results, whereas disagreement can strain a more close-minded team.

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Assessment tools like DiSC can also help predict whether any given group is more likely to succeed or fail based on the personality traits of the people it’s composed of. Personality traits, values and “soft skills” are oftentimes better indicators of how well a group will function together than are their “hard skills” like technical expertise. For example, team members who display emotional intelligence and open-mindedness tend to use conflict as an opportunity to drive better results, whereas disagreement can strain a more close-minded team.These tools can also identify team members’ values based on how they’re expressed through everyday behavior. In turn, managers can then match team members together based on their shared values – a key indicator of a group’s potential for creativity and innovation. Group members who share values are also more likely to agree about the best course of action to take.

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These tools can also identify team members’ values based on how they’re expressed through everyday behavior. In turn, managers can then match team members together based on their shared values – a key indicator of a group’s potential for creativity and innovation. Group members who share values are also more likely to agree about the best course of action to take.

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Finding your DiSC style

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Which DiSC style are you most closely aligned with? Discprofile.com offers an outline and overview of each.

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Dominance

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A person with a Dominance (D) style wants to shape their environment by overcoming opposition to accomplish results. They value confidence and focus on the bottom line. (Learn more about the Dominance style.)

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  • Traits: This employee is generally blunt, direct, forceful, strong-willed, driven, fast-paced and self-confident.
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  • Behaviors: They see the big picture, accept challenges and get straight to the point.
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  • Styles: They are commanding, resolute and pioneering.
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  • Improvement: They need to work on their patience, sensitivity, ability to look at details and ability to allow for deliberation.
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Influence

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Someone with a leading Influence (i) style aims to shape their environment by persuading others. This person values openness, friendship and building relationships. (Learn more about the Influence style.)

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  • Traits: A person with an i style tends to be enthusiastic, optimistic, convincing, warm and trusting.
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  • Behaviors: They like to collaborate; they dislike being ignored, and fear disapproval or the loss of influence.
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  • Styles: Their leadership styles are energizing, pioneering and affirming.
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  • Improvement: They need to work on following through, speaking directly and candidly, and researching all the facts.
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Steadiness

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A person with a Steadiness (S) style wants to work with others within existing circumstances to carry out tasks. They value cooperation, sincerity and dependability. (Learn more about the Steadiness style.)

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  • Traits: A person with an S style is usually calm, patient, deliberate, consistent and accommodating.
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  • Behaviors: They provide supportive actions; they don’t like to be rushed and tend to avoid change.
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  • Styles: Their leadership styles are inclusive, humble and affirming.
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  • Improvement: They need to work on adapting to change, multitasking and confronting others.
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Conscientiousness

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Employees with a Conscientiousness (C) style mostly want to work conscientiously within existing circumstances to ensure both quality and accuracy. This person values expertise, competency and objective reasoning. (Learn more about the Conscientiousness style.)

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  • Traits: Employees with a C style are generally independent, analytical, careful, cautious, systematic, diplomatic and tactful.
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  • Behaviors: They maintain stability, desire details, challenge assumptions, and fear criticism and being wrong.
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  • Styles: Their leadership styles are deliberate, humble and resolute.
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  • Improvement: They need to work on delegating, compromising and making quick decisions.
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A basic, free version of the DiSC assessment is available at DiSC Personality Testing when you sign up for an account. Alternatively, you can purchase the full suite of DiSC products, including the assessment, analysis tools and certifications at Discprofile.com.

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Benefits of providing a DiSC assessment to your employees

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Conducting DiSC assessments offers many benefits to your individual employees and the company. When you more fully understand your team’s communication preferences and how they translate into workplace behaviors, the result is a more cohesive work environment for everyone. These are some of the most impactful benefits:

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Increased self-awareness

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By understanding your strengths and weaknesses, you can make positive changes in dealing with conflict, stress and tasks. This self-awareness can help both your business and personal relationships. It can also help identify where your skills can have the most impact, and where there’s room for improvement.

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Enhanced teamwork

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Self-knowledge can help workplace collaboration as teams communicate more effectively and reduce conflict. Additionally, test results assist managers in allocating tasks for maximum success.

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For example, if a team has a strong D, that person might do well directing the team’s overall activities, while they could tap a strong i to make the presentation. A DiSC assessment should not, however, be used to pigeonhole employees; everyone has a blend of personality characteristics.

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Strengthened sales and customer service skills

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Once an employee takes the DiSC assessment and becomes familiar with all the personality types, it’s easier to spot these traits in customers. The employee can make more sales by tailoring their presentations to appeal to various personalities. Understanding clients’ characteristics can also improve customer service.

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More effective management

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Knowing how employees see and interact with the world is invaluable for managers. This knowledge helps them motivate staff, assign tasks, create teams and communicate department needs. If there’s workplace conflict, knowing the DiSC profiles involved can help managers diffuse tensions and create better working relationships.

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Enhanced empathy

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When a person understands where someone else is coming from, it’s easier to be nonjudgmental. No one personality trait is better than any other; all have a place and purpose in the organization. Today’s workplaces are incredibly diverse, so it’s important to have tools to help you work with people from a wide variety of perspectives and backgrounds.

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Better employee engagement

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When employees are given tasks that tap into their natural behavioral strengths, they experience more agency and feel more valued. This is a powerful motivator for good employee experience and engagement, resulting in boosted productivity, higher morale and reduced employee turnover. According to a Gallup study, 41% of employees who left their jobs cited issues related to poor employee engagement and company culture.

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Unlock hidden potential with a DiSC assessment

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A DiSC assessment is a relatively simple way to discover potential paths for growth, both within yourself as a manager and within your team members. It’s not simply a way of understanding strengths and weaknesses. Rather, it can help you identify underlying communication preferences that allow you to match individual workers with the projects and groups in which they are most likely to thrive. In turn, it can help uncover potential for leadership, collaboration and innovation you might not have otherwise known about.

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A DiSC assessment can benefit an organization as a whole by working with individual team members and setting them up for success. As a leader, it can be a key tool in your toolbelt to ensure you are supporting your team members in their own professional development. And when everyone can thrive in their individual roles, your team will work together more cohesively and drive better results for your organization.

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Erin Donaghue and Jennifer Dublino contributed to the writing and research in this article.

\n"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"3541","_score":2,"_source":{"canonical":"https://vaylees.com/8883-start-business-in-debt.html","displayModified":"2023-11-10T15:07:37Z","docType":"article","editorsPick":false,"href":"8883-start-business-in-debt.html","id":"3541","ID":3541,"isSponsored":false,"published":"2016-03-15T19:26:00Z","site":"bnd","stream":"You don't have to put your business ownership dreams on hold if you carry personal debt – but you need to take a strategic approach to bankroll your venture.","subtitle":"You don't have to put your business ownership dreams on hold if you carry personal debt – but you need to take a strategic approach to bankroll your venture.","title":"8 Steps to Bankroll Your Business While in Personal Debt","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Start Your Business","slug":"start-your-business"},"sub":{"name":"Startup Funding","slug":"startup-funding"}},"meta":{"robots":"index, follow","description":"This guide describes how entrepreneurs can fund their businesses even while they manage their personal debts."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04072333/investment_cat-scape_getty.jpg","caption":"cat-scape / Getty Images","alt":"Accountant using a calculator"},"content":"

Depending on where you are in your life and your career, you might have incurred some personal debt. Many would-be entrepreneurs owe money on credit cards, student loans, mortgages and cars. These heavy outstanding balances could put their dreams of business ownership on hold.

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Though quitting your day job to start a business when you’re already in the red is ill-advised, debt shouldn’t prevent you from getting your business going. Although it’s not easy, it is possible to become an entrepreneur under tough financial circumstances.

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How to fund your business while in debt

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If you’re in debt and want to start a business, take these eight steps to minimize startup expenses and keep your cash flow steady:

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  1. Explore formal financing options.
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  3. Look for a cash-ready partner.
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  5. Consider other sources of funding.
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  7. Make a plan for your borrowed funds.
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  9. Reduce personal expenses where you can.
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  11. Find a side hustle.
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  13. Don’t rush into it.
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  15. Reinvest in your business.
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Here is more information on each step of the process:

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1. Explore formal financing options.

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If you’re carrying a lot of personal debt, your monthly cash flow is probably not optimal for funding a business. There are some options for business owners in your position, including alternative lenders and credit card financing. However, each comes with pros and cons, and you should thoroughly understand what they involve before moving ahead.

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Ethan Senturia, chief fintech officer at Housecall Pro and author of Unwound: Real-Time Reflections From a Stumbling Entrepreneur, said affordable financing options, such as loans and lines of credit with low interest rates, almost always require a personal guarantee from the business owner.

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“Even though you can get a business loan with a heavy personal debt load, most small business lenders will ask that you personally guarantee repayment of the loan in case your business can’t make the payment,” Senturia said. “This could add a heavier burden on your already-heavy debt obligations and could add stress to your personal life. Financing that doesn’t require a personal guarantee … is very expensive and can significantly strain your new business.”

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Editor’s note: Looking for the right business loan? Fill out the below questionnaire to have our vendor partners contact you about your needs.

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You can probably also secure additional personal credit cards for your business, but Senturia doesn’t recommend this, as these cards will not help you build business credit. Instead, they will hurt your personal credit. [Read related article: Small Business Financing Options That Bypass Traditional Banks]

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Business loan options for formal financing

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If going into business debt as you launch your operation sounds like the right call, look into these options:

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  • Alternative lenders: This category of lender comprises short-term loans, marketplace lending, equipment financing, and other loans you can’t access through traditional banks.
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  • Short-term loans: These loans usually last no more than two years. Compared to the five to 20 years common with loans from the government and banks, this period is brief. Fora Financial, our top pick for short-term loans, offers loans for up to 15 months. You’ll be able to pay these back daily or weekly, and you can also pay early while avoiding prepayment penalties.
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  • Marketplace loans: These are essentially third-party loans. That’s because the company you receive them through doesn’t administer the loan. Instead, the company will work with you to compare and contrast potential lenders. You’ll choose the lender with the terms you find most agreeable. Read our review of Biz2Credit to learn about our top pick for this arrangement.
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  • Equipment financing: This is a type of loan that allows you to borrow funds specifically to buy expensive equipment. These loans are, by definition, larger in value. As such, they can accumulate significant interest over time, especially since their terms tend to span many years. If this type of business debt sounds best for you, read our review of Crest Capital to learn about our top pick.
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  • Credit card financing: Through this method, you can obtain a loan using your existing business credit card account. You’ll apply through your online account, and if you’re approved, you’ll receive cash in your business bank account. You’ll repay this money in installments, with fees attached. Read our guide to business credit cards to see whether a business credit card and loan might work for you.
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  • Business lines of credit: As a revolving line of credit, a business line of credit is similar to a credit card. You can use this method to make purchases whenever the moment strikes. However, unlike business credit cards, business lines of credit become inaccessible after a certain period.
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If you go with a loan, research to decide if a revenue-based or cash flow lender would be better for your business. Revenue-based lenders, also known as subprime lenders, care more about your business revenue and personal credit score than your personal debt. Senturia noted that these lenders are often expensive, but less stringent in their underwriting. Cash flow-based lenders, on the other hand, look at your business’s ability to pay your business debt from your cash flow, including your personal living expenses and debts, he said.

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“Cash flow-based lenders will also consider outside personal income as a positive addition and will give you credit for this in their cash flow equation,” Senturia said. “Since many business owners rely on the business to cover their personal expenses as well, the impact of personal debt loads oftentimes will be factored in.”

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2. Look for a cash-ready partner.

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You may not have the money to bankroll your business right now, but someone you know might. Leslie Tayne, financial attorney and author of Life & Debt: A Fresh Approach to Achieving Financial Wellness, said finding someone with a ready cash flow can help you get more done sooner. She suggested turning to a relative or friend to borrow money.

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“If you want interest-free cash and are confident that you will have success from your business, then ask a family member [or friend] to give you a loan,” Tayne said. “I don’t always recommend [it], but in this situation, you can consider it and have a time frame set in when you can pay them back.”

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You might also see if family members and friends are willing to invest in your business, said David Walter, CEO of Electrician Mentor. If you go this route, make the process formal. When Walter took this approach, he drew up a written formal agreement with each investor to avoid conflicts and potentially damaging arguments – or worse – down the road.

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“All of my agreements [included specifics on] how much money was invested and what rate of return was expected,” he said. “Overall, it turned out to be a very positive experience.”

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Another possibility is finding a business partner. However, you should take this approach only if you’re willing to cede some control of your business.

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Matt Scott, owner of Termite Survey, said it’s best to hire an attorney to develop a partnership agreement that includes an “exit plan for the relationship,” along with financial details, expectations and a specific breakdown of who will control which aspects of your operation. [Read related article: Business Partnership Agreement Writing Guide]

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3. Consider other sources of funding.

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Even if you do secure a monetary loan from a friend or family member, or persuade someone to partner up with you on the venture, you may also be able to get help from an angel investor. Angel investors typically offer capital for business startups in exchange for convertible debt or equity in the business. Many angel investors belong to networks where they share investment capital. [Read related article: Why SBA Loans Differ From Conventional Loans]

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Other funding sources include the following:

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Microloans

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Microloans – which usually range from $5,000 to $20,000 – are also worth exploring.

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“Minority business owners, in particular, can qualify [for microloans] if they don’t need a lot of money,” said Ty Crandall, founder and CEO of Credit Suite. “These are often good loans in terms of interest rates.”

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The U.S. Small Business Administration (SBA) offers the SBA Microloan Program. Loans available under the program carry interest rates of 8 percent to 13 percent and have a maximum repayment term of six years. Our best pick for private microloans is Accion, which offers loans as small as $300 with transparent APRs and flexible terms.

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Government grants

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While competition for them can be fierce, you can also look into government grants and grants from local agencies. Visit our guide to government grants to learn more about grants for women-owned, veteran-owned and minority-owned businesses.

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4. Make a plan for your borrowed funds.

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No matter how you intend to finance your business, make a plan for how you will use the money, especially if you are looking for a loan, Senturia said. This plan should be detailed, but flexible enough to adjust as your financial situation changes.

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“Don’t borrow more than you need, and don’t borrow without a specific use of funds,” Senturia said. “Taking that money when you don’t know specifically how it will make a profit for you isn’t a prudent decision, and it may actually hurt your business more than it helps. Borrowing with a clear sense of purpose will give you the best chance to productively and successfully deploy your new capital.”

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Knowing exactly how you’re going to use borrowed funds may even help you obtain a loan despite your debt. Josh Eberly, owner of 717 Home Buyers, said sharing a five-year plan for how he was going to use borrowed funds was an invaluable strategy in procuring funds to start his business.

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5. Reduce personal expenses where you can.

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Entrepreneurship often means making personal sacrifices for the sake of your business, and money is no exception. Nicole Pomije, the serial entrepreneur behind NB Talent Services and The Cookie Cups, was carrying a lot of credit card debt when she started her first business. She soon realized it was necessary to cut down on her personal expenses to grow her company.

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“When you are starting a new business, you are going to have a lot of expenses to consider, which can be harder when you are in debt,” Pomije told Business News Daily. “By keeping your bills low, you will save yourself a headache and free up the extra cash you need to invest in the new business.”

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While Pomije relocated from notoriously expensive New York City to Minneapolis to cut down on her bills, there are less drastic ways you can pare down your expenses. For example, smart meal planning reduces your reliance on pricey restaurants and takeout, and refinancing your car or home loans can lower your interest and payments. Eliminating or scaling back your use of subscription-based television services can also add up to significant savings, as can finding a cheaper cell phone plan.

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6. Find a side hustle.

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You won’t get rich from a side gig, but taking on one or more can help you reduce your debt faster and provide cash to fund your business, said Peter Koch, co-founder of DollarSanity.

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Consider driving for Uber or Lyft or delivering food through services like Uber Eats and Grubhub. You could also register on TaskRabbit to provide busy consumers with services in more than 50 categories. There’s a one-time $25 registration fee, but you get to keep all of your earnings.

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Other side-hustle possibilities are child care, tutoring, pet sitting, freelance writing and web design.

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Jessica Zweig, founder and CEO of personal branding agency SimplyBe and author of Be: A No-Bullsh*t Guide to Increasing Your Self Worth and Net Worth by Simply Being Yourself, suggests depositing money from side hustles into an account that is difficult to access. This way, you will not be tempted to spend the money frivolously and can build up your wealth.

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“My accountant once said to me, ‘Stack your cheddar,’ and that’s one of my favorite pieces of advice about opening an account and putting money where you can’t touch it,” Zweig said.

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7. Don’t rush into it.

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Your business doesn’t have to go full steam ahead right away. If you can’t afford to go all out right now, start slowly, Pomije said. Get the ball rolling with small, inexpensive tasks that establish your brand’s presence.

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“Create a logo, set up your social media accounts [and] even buy the domain name for your business,” Pomije said. “These are all things you can do at a low cost that will help get your new business up and running.”

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You can start marketing your business with some creative, low-cost strategies. Tayne suggests personable, memorable and eye-catching social media campaigns.

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“Images speak louder than words,” she said. “Create a [visual] advertising campaign that makes an impression. This can be low in budget and gain you more clients.”

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8. Reinvest in your business.

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Although it may be tempting to use your profits to pay down your personal debts, Tayne said your business’s growth needs to come first.

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“Don’t spend the money you make right away,” she said. “Invest your profits back into your business before paying off any debt. This is crucial and will keep your business going. It will also save you in the future. Wait until you are making a steady profit. Then you can put more money towards your debt and spending.”

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Check out our guide for more tips on managing your business finances.

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You can start a business despite your debt

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It’s not impossible to launch a business while you’re managing personal debt, but proper planning is key. Securing funding for your business or using a business credit card can help you get off the ground, but you’ll need to plan accordingly to ensure your debt load doesn’t get out of control. When building a business and paying off debt, it’s a marathon and not a sprint, so be sure to come up with a plan and stay consistent when executing it. Soon enough, you’ll be in a better position for your business to grow and succeed.

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Tejas Vemparala and Max Freedman contributed to this article. Source interviews were conducted for a previous version of this article.

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Running a small business means exposing yourself to a certain amount of risk. You need safeguards in place to handle the fallout should problems occur. Although some pitfalls and challenges can’t be avoided, they can be mitigated with the proper precautions, planning and insurance coverage. Below, insurance and legal experts detail today’s biggest insurance risks for business owners and what you can do to protect yourself against them.

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What is insurance risk?

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Insurance risk refers to the possibility of something going wrong that would expose your business – or the insurer – to financial damages. Business risk and insurance risk often overlap. By fully understanding the different types of business risk, you can better understand insurance risk and thus how insurance can protect your business from serious problems.

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Here are the four main categories of risk to consider:

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    \n
  • Operational: Operational risk addresses your business’s day-to-day dealings, including handling equipment, workers, customers and your overall product or service. By insuring tangible assets like equipment and property, you can mitigate risk, and by protecting your business operations from outside events, like natural disasters, you’ll be covered.
  • \n
  • Strategy: Strategic risk occurs when your business’s strategy is diluted or usurped by yourself or other companies. When running a small business, you have to develop a specific strategy for your product or service and stick to it. If competitors undermine your strategy by outperforming your product or service or undercutting your prices, you run the risk of falling behind in your industry. It’s critical to research your competitors and understand how you can better protect your business’s strategic assets, like your intellectual property.
  • \n
  • Compliance: Compliance risk pertains to your business’s ability to adhere to certain rules and regulations outlined by your industry or the government. This includes things like tax burdens, municipal zoning and property laws, distribution laws and other rules and regulations related to your business – such as HIPAA or good manufacturing practices. Eliminating compliance risk requires that you stay abreast of the latest rules in your sector. While you can’t purchase insurance related to taxes and other forms of compliance risk, you should be aware of your obligations by understanding how your business could be at fault.
  • \n
  • Reputational: The final type of risk is reputational. That means protecting your business from security problems, data privacy breaches and other cybersecurity issues. It also involves taking steps to protect your brand and logo. You can insure your business and customer data in the event either is compromised, you are covered.
  • \n
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Editor’s note: Looking for the right liability insurance for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

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What are the biggest types of insurance risk?

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The biggest insurance risks that follow fall into one or more of the main categories: operational, strategy, compliance and reputational.

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1. Data breaches

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Businesses across all industries have seen a huge increase in cybersecurity problems in recent years. Chris Roach, co-founder and COO of Blackswan Cybersecurity, said data hacks have hit fast-food retailers and e-commerce businesses particularly hard. However, he focused his attention on businesses that accept credit cards.

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One of the most important things you can do to prevent fraud is ensure your credit card technology meets EMV standards. Every company should also review its compliance with Payment Card Industry Data Security Standards (PCI DSS).

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“Complying with PCI DSS protects a merchant against digital data security breaches across their entire payment network, not just a single card,” Roach said. “Failure to comply can result in penalties and fines if a data breach does occur on your end.”

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Cyber insurance is also an important consideration for small businesses. Myles Gibbons, president of the commercial accounts group at Travelers, pointed out the frequency of data breaches occurring in companies of 250 or fewer employees.

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“Cyber coverage has grown increasingly important to all types of businesses, and can help to protect them from the costs of data breach notification, remediation, card payment penalties, crisis management and public relations,” he added.

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2. Property damage

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Hurricanes, snowstorms, floods and fires can throw a serious wrench in your company’s ability to operate normally. While your storefront or office may not have been entirely destroyed, chances are you won’t be able to run your business from that location while repairs are occurring.

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“Only 50% of small business owners have a written business continuity plan, according to the Travelers Business Risk Index,” said Scott Humphrey, second vice president of risk control at Travelers. “Between severe weather events and the increasing reliance on a complex network of technology and supply chains, the risks of business interruption are plenty.”

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Your first line of defense against property theft or damage is insurance coverage. Gibbons noted that some companies aren’t adequately insured to their true values.

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“Ask yourself if you have enough coverage to rebuild a business after a total loss,” he said. “Business owners should make sure their building and its contents – including shelving, displays, inventory and any new equipment – are properly insured. Properties should be insured to their full replacement value – not market value – including any recent improvements.”

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Michael Freed, a business litigation attorney at the Gunster law firm, urged business owners to consider business interruption insurance to keep their cash flow going, even if operations have been halted temporarily.

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“Business interruption insurance provides coverage for lost revenues and profits arising from uncontrollable interruptions in business operations, such as those arising from natural disasters or a building fire,” Freed said. “When that type of casualty strikes, business owners need not only to rebuild where there has been physical damage but to offset for missing revenues while they do so. This is particularly critical for businesses with limited capital reserves.”

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Beyond that, Humphrey advised developing a plan so your business has a protocol to follow should such an interruption occur.

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“To develop a plan, businesses should identify threats or risks most likely to occur based on historical, geographical, organizational and other factors, [and] conduct a business impact analysis [to] identify [what is] critical to the survival of your business,” he said. Then, “adopt controls for mitigation and prevention, which can include emergency response, public relations, resource management and employee communications.”

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3. Human capital costs

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If you have employees, you have a significant amount of risk. Whether an employee is performing a labor-intensive task, driving a company vehicle or interacting with the public, there is a risk to the company, said Bryan Robertson, partner at Hatcher Insurance.

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“The need for industry-specific training and internal loss controls is apparent now more than ever,” he said. “The employee needs to understand how their decisions and actions can tremendously affect the company’s well-being, both positively and negatively.”

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According to Tony Consoli – national practice leader for health care, life sciences and alternative risk at CBIZ Insurance Services – changing market dynamics can mean major cutbacks across the board, which can also be an unexpected financial risk.

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“Although making changes to the workforce is inevitable … during tough times, very few business owners know the risks involved with layoffs,” Consoli said. “Unemployment insurance costs can be an expensive burden on employers.” [Related article: The Small Business Guide to Unemployment Insurance]

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Workers’ compensation insurance is mandatory for businesses with employees, but there are other insurance coverages you can obtain to mitigate your risk. Robertson advised looking into management liability and employment practices liability insurance.

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“This coverage protects the owners and managers from suits related to discrimination to potential, current and past employees, as well as third-party claims,” he added. [Related article: Small Businesses Without Insurance Take Dangerous Risks]

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Thoroughly planning for employee departures is the best thing you can do to avoid financial and legal recourse. Consoli recommended offering benefits – such as severance packages, payment for unused time off and continuing health insurance coverage – to laid-off employees. He also advised focusing on pending workers’ compensation claims that might be affected by layoffs and on conducting midyear reviews of your resources to scale back when necessary.

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4. Professional service mistakes

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Service providers like accountants, consultants and web developers all face the continual risk of customers seeking legal recourse if their “product” doesn’t meet expectations. Kevin Kerridge, CEO of small business insurer Hiscox USA, said that a common challenge for many small business owners is overcoming the mindset that their work is so good that no client would need to sue them.

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“A business doesn’t have to make a mistake to face an allegation,” he said. “One lawsuit, even if unwarranted, can cripple a small business in terms of time and money.”

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Kerridge recommended that owners of any service-based business consider professional liability insurance.

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“This coverage protects a business in the event that they receive a lawsuit alleging that they have made a mistake [and covers] defense costs and resultant damages up to an agreed limit, typically $1 million,” he added. “We see a range of claims on this, from tax preparers making a mistake on a client’s tax return to technology service providers delivering a substandard work product.”

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5. International manufacturing and export/transit issues

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Many companies utilize overseas factories to manufacture their product or export products internationally. But a lot can go wrong during this journey, explained Lou Camhe, vice president of sales at BNC Insurance and Risk.

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Camhe recommended contingent business interruption insurance to soften the financial impact of a problem with a vendor in your supply chain, such as a fire at your manufacturer’s factory. He also suggested foreign package policies to extend your insurance coverage to international exposures you may have.

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6. Building projects

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According to the U.S. Census Bureau, U.S. construction costs were up 17.5% from 2020 to 2021 – the highest spike since 1970. According to Consoli, construction comes with a fair amount of risk that business owners should consider before moving forward with a contract.

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Consoli advised carefully reading your insurance policies to understand what it does and doesn’t cover in terms of damages or injuries that occur during the project.

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“Carefully review the insurance coverage and costs related to the project,” he said. “What if a worker is injured on the job? Who pays for water damage during a storm? What happens if materials for a build are weeks late and this prolongs the entire project? Make sure all of your ducks are in a row before the expansion. Doing so will guarantee proper coverage while also mitigating financial risk to potential insurance overbillings.”

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How to determine your company’s biggest insurance risks

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Every industry and every individual business within an industry contends with different levels of risk, both in terms of the probability of something happening and the severity of the consequences, Kerridge said. However, ignoring those risks is simply not an option.

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“There is no substitute for running a business professionally and not cutting corners, but however careful you are, bad things happen,” Kerridge said. “It’s worth buying as much insurance as your budget allows, as a backstop.”

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“Partner with an appropriate carrier that is invested in your company’s long-term success and provides the necessary loss-mitigation tools,” Robertson added. Each carrier has its own industry specialization, and it is important [to work] with a broker who will provide a complete risk management program, rather than merely a cost-based approach.”

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To assess your level of risk, Freed advised selecting and building relationships with a “dream team” of advisors: an attorney, accountant, insurance broker and banker. Each has something valuable to contribute to minimizing risks efficiently and effectively, he said. [Related article: Finding the Right Accountant for Your Small Business]

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“An advisory dream team, empowered to be proactive on your behalf, can help anticipate and avoid pitfalls that befall many business owners,” Freed said. “The old adage is entirely true when it comes to risk mitigation: ‘An ounce of prevention is worth a pound of cure.'”

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How to choose the right insurance for your business

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Not every business needs every type of insurance. Here’s how to choose the right insurance for your company:

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    \n
  1. Assess your exposure to a particular risk. If you don’t have products or supplies being transported, or they are insured by the company shipping them, you likely don’t need an inland marine policy. However, you might still need contingent business interruption insurance because a mishap would stop your ability to manufacture and sell products.
  2. \n
  3. Analyze your legal responsibilities. Do this with an insurance agent or an attorney to see what the most common claims might be against your organization.
  4. \n
  5. Decide how much coverage you want. Getting more coverage is more expensive, so you’ll want to balance getting the most protection for a price that fits your budget.
  6. \n
  7. Pick a provider based on your industry. Different providers specialize in different fields. Find a provider that understands your risk and will help you mitigate potential claims.
  8. \n
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Why is insurance risk mitigation important?

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Every business owner deals with risk in their company every day. Mitigating risk is crucial for reducing the number of claims and lawsuits your firm might face. Having the right insurance policies in place will provide protection should a claim emerge. Insurance is an inexpensive way to cover the legal costs associated with claims and handle the actual settlements that arise from them. If you don’t have the right policies beforehand, your organization could suffer the consequences.

\n

Kimberlee Leonard and Matt D’Angelo contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article. 

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Following and keeping apprised of all federal and state labor laws and regulations is integral to running a business. For small businesses without in-house HR professionals and legal counsel, this can be a difficult task. However, a lack of resources isn’t a valid excuse for breaking the law. It’s critical to stay on top of these issues, as labor and employment regulations are among the easiest to violate.

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Editor’s note: Need help with compliance? Consider outsourcing your HR to a third party. Fill out the below questionnaire to be connected with vendors that can help with HR outsourcing.

\n\n\n \n\n\n

Labor laws you need to know

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Below are seven federal labor laws you need to ensure your business is complying with.

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1. FMLA and employee leave

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The Family and Medical Leave Act is a commonly misunderstood employment law. Under this law, private-sector employers with 50 or more employees must grant eligible workers up to 12 weeks of job-protected unpaid leave for certain family and medical reasons over a 12-month period.

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“It’s important to understand the nuances,” said Ashley Kaplan, director and senior corporate counsel at ComplyRight, Inc. “In addition to very specific requirements regarding coverage and eligibility, the FMLA prohibits employers from interfering with, preventing or denying any rights provided by the law.”

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Employers also play a role in reducing employee abuse of the FMLA, Kaplan said. As an employer, you should closely examine the reasons employees give for their leave through an employee request form and mandatory medical certifications. This way, you can determine whether an employee’s absence meets the legal standards for FMLA leave.

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2. NLRA’s role with nonunionized employers

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Even if your company doesn’t employ unionized workers, you’re still subject to the requirements of the National Labor Relations Act. This law applies to most private employers and grants employees the right to unionize, collectively bargain and engage in concerted activity for their “mutual aid or protection” — commonly known as Section 7 rights. These rights include permission to discuss the terms and conditions of employment, such as wages.

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The National Labor Relations Board’s aggressive approach to social media policies in the workplace has proven problematic for employers in the past, Kaplan said. Although most employers limit what employees may post on Facebook or Twitter, such efforts can get companies in trouble if the rules interfere with Section 7 of the NLRA. Kaplan advises employers to carefully craft their social media policies in their handbook, and perhaps seek legal counsel to ensure they aren’t restricting permitted online activity.

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However, during former President Donald Trump’s time in office, the NLRB became markedly friendlier toward employer policies. In December 2017, the board overturned precedent that made it easy for an employee to push back against policies they believed could be “reasonably construed” to interfere with their rights under Section 7. Now, an employer’s rationale for establishing the policy is taken into consideration before the board determines that a rule violated employee rights.

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3. OFCCP and affirmative action requirements

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In 2013, the Department of Labor’s Office of Federal Contract Compliance Programs issued two rules to strengthen employment discrimination protections for veterans and individuals with disabilities: the Vietnam Era Veterans’ Readjustment Assistance Act and Section 503 of the Rehabilitation Act. The affirmative action requirements for covered federal contractors and subcontractors went into effect in 2014 and include measurable hiring targets as well as recordkeeping and data-tracking obligations.

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Contractors must now strive to achieve an “aspirational utilization goal” for hiring qualified individuals with disabilities: 7 percent of the total workforce for contractors with 100 or fewer employees, or 7 percent for each job group for larger employers. The OFCCP also requires contractors to establish hiring benchmarks for protected veterans.

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As an additional compliance requirement, employers should invite applicants to voluntarily self-identify on an OFCCP-compliant form as protected veterans or disabled individuals at both the pre-offer and post-offer stages.

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4. FLSA and IRS employee misclassification

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Many small business owners rely on independent contractors to keep operations running. Depending on their relationship with the business, though, these workers may be considered employees by the federal government.

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The Fair Labor Standards Act requires covered employers to pay overtime to employees working more than 40 hours per week at a rate of 1.5 times those workers’ regular hourly rates. Any employee ineligible for overtime pay must fall clearly under the FLSA’s executive, administrative or professional exemptions (often referred to as “white-collar exemptions”), which involves specific job responsibilities.

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Both the IRS and the Department of Labor target businesses that purposely misclassify workers to avoid paying overtime, payroll taxes and other employee-related expenses, Kaplan said. The IRS uses a 20-factor test to determine worker status based on three key areas: behavioral factors, financial factors and type of relationship. The employer’s level of control over the worker’s day-to-day operations, as well as the worker’s contributions to the business, usually dictate the worker’s status. [Read related article: Difference Between Exempt and Nonexempt Employees]

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Many regulations (and even some agencies) came under consideration for significant changes during the Trump administration. It’s important to prepare for new developments and keep an eye out for further changes to the existing rules. If you’re unsure how these or any other employment law issues affect your business, visit the Small Business Administration website, or consult an attorney.

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5. Whistleblower Protection Program

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It’s important for employees to feel comfortable speaking up about workplace violations. The Occupational Safety and Health Administration (OSHA) Whistleblower Protection Program protects employees who expose or report a company’s violations from termination or retaliation. Under these protections, workers can express their concerns without the fear of being fired or demoted. Employers are in violation of this law if they retaliate against the employee in any way.

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6. OSHA’s workplace safety rules

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OSHA aims to reduce activity that puts workers at risk or in hazardous situations. The Occupational Safety and Health Act of 1970 has several safety regulations in place to minimize workplace danger.

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For example, if you have harmful chemicals at your worksite, you must provide safety data sheets about the substances to employees. In addition, you must display labor law posters or verbiage that inform workers how to properly report workplace safety issues. Workers should also have access to the information that they have the right to seek an OSHA inspection, and training, if needed.

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7. Child labor laws

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Working with young employees can be an interesting experience. If you do hire minors, make sure you comply with child labor laws. Under the FLSA of 1938, it is your responsibility as an employer to ensure your workplace is safe and doesn’t threaten the well-being or schooling of your young staff.

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You cannot treat minors the same as adult workers. Based on their age, minors are only allowed to work a certain number of hours and within certain industries. For example, those 14 or younger can be employed as actors or performers, work in certain agriculture jobs, deliver newspapers, or work for their parents.

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These laws vary by state, so check to see what’s permitted where you live. Labor laws protections are managed by the Wage and Hour Division.

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The importance of understanding employee labor laws

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Labor law compliance requires you to stay up to date on the legal landscape to make sure your business operations follow the rules.

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“Many small businesses think they can fly under the radar with some of the bigger federal labor laws,” Kaplan said. “But the truth is, the labor law umbrella covering businesses is extensive, and every employer needs to be aware.”

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Failure to follow labor laws can result in financial penalties of up to $10,000 and possible jail time. Depending on the offense, you may have to provide back pay plus interest to your employees or pay for lost employee benefits. You could also be hit with lawsuits from impacted employees, which can be an expensive scenario of court costs, settlement fees and jury awards. These lawsuits can also damage your brand’s reputation, which can have serious long-term ramifications.

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Keeping your company compliant

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Labor law compliance keeps your business out of legal trouble and provides a safe work environment for your employees. Take some time to periodically review these and other labor laws, and check for any amendments, because the specifics of these laws change often. When you keep up with labor laws, you stay out of trouble — and keep your employees happy and safe

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Shayna Waltower and Simone Johnson contributed to this article. Source interviews were conducted for a previous version of this article.

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Most service-based businesses have encountered a nightmare client at some point. This person makes outrageous demands of your team and expects them to be met immediately. They don’t respect the due date on the invoice and refuse to pay you on time. And when it comes to communication, this client either pesters you 24/7 or can’t be reached at all.

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The old cliche may say the customer is always right, but some problematic clients may not be worth your time. Although you may be hesitant to drop (or “fire”) a client, the temporary loss of income could be in your business’s best interest in the long run.

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Here’s a look at what to do when faced with a challenging client, when to know it’s time to part ways, and how to extricate yourself politely and professionally.

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How to resolve conflicts with clients diplomatically

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If you’re fed up with a client, it may be tempting to let them go immediately. However, while some clients may be annoying, you may not want to give up on the relationship so fast. Here are a few tips for working things out with your client.

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1. Figure out what the problem is with your nightmare client.

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Step back from the situation and figure out what the issue truly is with your problematic client. Are they really unbearable to work with or negatively impacting your company’s bottom line? Or is there just something about their personality that rubs you the wrong way?

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If the problem comes down to clashing personalities, there may be other arrangements to make. Perhaps another team member could take over the lead role with that client – or maybe you can resolve to tolerate and deal with the individual until their contract runs out.

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2. Set boundaries with your difficult client.

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It’s always a good idea to reassess your client boundaries regularly. For instance, if you have a client who calls you at all hours of the day and night, you may need to reiterate when you’re willing to take calls and when you aren’t. As another example, if you have a client who regularly asks for revisions or tasks beyond the scope of your agreement, it may be helpful to review the terms of your initial contract.

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Firmly but politely restating your boundaries may be enough to salvage the working relationship. If the client refuses to respect your boundaries, this can be a clear sign that it’s time to end the working relationship.

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3. Communicate openly with your client.

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Your clients can’t read your mind; they won’t know if something they’re doing is bothering you unless you tell them. You’re not doing yourself or them a favor by pretending that everything is fine when it isn’t.

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If something is bothering you about your working relationship, you owe it to your client to be honest about it. This is especially true if it’s a long-term client; in this case, you probably want to do everything you can to repair the relationship.

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How to know when it’s time to drop a client

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If attempts to improve the working relationship have failed, it’s time to consider parting ways.

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“For a [business] relationship to have long-term success, both parties have to be in a position to do their very best possible work,” said Matt Dopkiss, chief innovation officer at WillowTree. “If the frictions overpower the momentum, the relationship will grind to a halt. You usually know it far in advance, but you’re reluctant to admit it. You rationalize, you put in extra effort, you try to stay optimistic – but once the chemistry is gone, it’s over.”

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Dropping a client isn’t a decision to be made lightly or hastily; you should end a business relationship with a paying customer only if it’s actively hurting your company. If you’re heading down this path, ask yourself the following questions to decide whether to stop working with a difficult client.

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Does the client continually expect more from us but won’t raise their budget?

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Small businesses typically operate on a lean budget. If a client keeps asking for more but refuses to pay a higher price for your services, you’ll end up stretching yourself too thin to justify keeping the client, according to Geoff McQueen, CEO of professional services automation software Accelo.

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Does the client regularly miss or reschedule calls and meetings?

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Communication breakdowns are a clear warning sign of a failing relationship, Dopkiss warned. No one wants to have their time wasted, so watch out for a pattern of phone tag and last-minute cancellations.

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Do we have to follow up with the client repeatedly to get paid?

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Because you’re providing a service and not a point-of-sale physical product, some clients may get the idea that it’s OK not to pay you right away. One late payment is forgivable, but clients who continually miss payment due dates limit your ability to pay your team and grow your business, McQueen said.

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Is the client stalling on a project or not giving feedback?

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Dopkiss noted that some clients will seem positive about your business relationship on the surface but then put a project on hold indefinitely or stop responding. These shady situations aren’t good for either party, as the client doesn’t get the services they need, and your company doesn’t get paid.

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Has the client stopped taking our advice?

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Professional disagreements are a normal and natural part of the business process, and a client may not be thrilled with the strategy your company suggested. But you don’t want clients who fight you at every turn even though they hired you to help them.

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“You’re going to get the blame if things don’t work, regardless [of the circumstances],” McQueen said. “If they’re not listening to you, you’ll end up in a bad situation no matter what.”

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How to drop a client

\n

If you answered yes to the above questions, you might want to start thinking about how to tactfully separate yourself from your client. However, proceed with caution.

\n

Here are some tips for how you can drop a client without hurting your business’s reputation.

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1. Get difficult clients to leave you first.

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David Silverstein, founder and CEO of Amaze PBC, said that “firing” clients is rarely good for a business’s culture and reputation. Instead of outright dropping them, he recommends attempting to let them drop themselves.

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“Service businesses need to take care of everyone, and they need to learn to turn unhappy or unsatisfied clients into happy ones,” Silverstein told us. “So devise a strategy that causes bad clients to ‘opt out,’ as opposed to dropping them. The best way to create an opt-out strategy is to raise your price.”

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2. Have an open and honest conversation with your client.

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Sometimes, the client won’t elect to leave after a price hike, or perhaps you’d rather not raise your prices. Before you officially show them the door, it’s crucial to have an open, honest dialogue to try to salvage the relationship.

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McQueen advised approaching the subject like any conflict-based negotiation: Be frank about the problems and issues your company is having, and explain why your current arrangement isn’t acceptable. If the client is willing, try to work things out. [Related: Negotiating Tips to Sharpen Your Skills]

\n

“Explain the problem, propose an amicable parting, and offer to aid the client in the transition,” Dopkiss added. “Sometimes, they’ll accept your offer. Other times, the client might just surprise you by recommitting to the relationship.”

\n

3. Keep the situation professional.

\n

If you end up parting ways, be sure to remain polite and professional about it.

\n

“It’s important to be respectful, honest and compassionate in any sort of breakup,” Dopkiss said. “Without expectation, aid the client to as smooth and seamless a transition as you can manage. Be a good partner to them through the end.”

\n

Jamie Johnson contributed to the writing and research in this article. Source interviews were conducted for a previous version of this article.

"}},{"_index":"wp-index-bnd-prod-content","_type":"content","_id":"657","_score":2,"_source":{"canonical":"https://vaylees.com/16304-per-diem.html","displayModified":"2023-11-15T17:45:17Z","docType":"article","editorsPick":false,"href":"16304-per-diem.html","id":"657","ID":657,"isSponsored":false,"published":"2021-10-15T13:53:00Z","site":"bnd","stream":"The term can be used in multiple ways relating to reimbursements and employees. ","subtitle":"The term can be used in multiple ways relating to reimbursements and employees. ","title":"What Is a Per Diem?","author":{"displayName":"Nicole Fallon","email":"nicole@lightningmediapartners.com","thumbnail":"https://images.vaylees.com/app/uploads/2022/04/04071935/headshot-small.jpeg","type":"Senior Analyst"},"channels":{"primary":{"name":"Grow Your Business","slug":"grow-your-business"},"sub":{"name":"Finances","slug":"finances"}},"meta":{"robots":"index, follow","description":"A per diem is a daily stipend an employer provides to cover employee expenses. A per diem employee works with a company on a daily basis at a set rate."},"thumbnail":{"path":"https://images.vaylees.com/app/uploads/2022/04/04072624/Resume_fizkes_Getty.jpg","caption":"fizkes / Getty Images","alt":""},"content":"

While many people have heard the Latin phrase “per diem,” which translates to “by the day,” not everyone has a thorough understanding of what it means and how a per diem is used in business. To add to the confusion, the term can describe both monetary allowances and a type of employee. Here’s a comprehensive guide to per diem in the workplace.

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Editor’s note: Looking for the right payroll service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

\n\n\n \n\n\n

What is per diem in the workplace?

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The term “per diem” is used in business in two ways: allowances and employees.

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Per diem allowances

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A per diem allowance is a daily stipend that a business gives an employee to cover specific expenses incurred as part of their job. This allowance typically covers lodging, meals and incidental expenses. Occasionally, it also covers transportation. These expenses also may provide tax deductions for the business.

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A per diem allowance may be given ahead of time, or employees may be reimbursed after they travel (more on this later).

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Per diem employees

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A per diem employee works with a company on a daily basis at a previously agreed-upon rate. This is a worker without a consistent or permanent role with the business; they’re typically called in as needed. Their day rate and hours are usually set in advance, though they can vary.

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Examples of per diem employees include travel nurses and substitute teachers.

\n\n\n \n\n\n

How do per diem travel rates work?

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The federal government sets maximum per diem rates in three categories: lodging, food and incidentals. The General Services Administration (GSA) sets the standard per diem rate for each category on the federal level each fiscal year based on local market costs.

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Certain states and cities allow higher per diem payments, but they can’t be lower than the GSA rate. A company can also opt to give its employees a higher per diem rate.

\n

The current standard GSA per diem rate for lodging is $107 per day, not including taxes. For meals and incidental expenses, the standard GSA per diem tier rate is $59 to $79 per day, depending on where you’re traveling. In some cases, the per diem rate may be higher if the city’s cost of living is higher than average. On its own, the standard rate for incidental expenses is $5 per day. Incidentals can include fees and tips the employee may give to hotel staff or restaurant waitstaff.

\n\n\n \n\n\n

The food per diem a person receives depends on the location and meal. The GSA sets these standard per diem rates for each meal per person:

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    \n
  • $13-$18 for breakfast
  • \n
  • $15-$20 for lunch
  • \n
  • $26-$36 for dinner
  • \n
\n

If an employee doesn’t spend the allotted amount per meal, in most cases, they can keep the additional funds without any tax implications and without having to return the money. If the business trip has multiple employees traveling together, they can combine their per diem when having a meal together to save money.

\n\n\n \n\n\n

How do you pay out per diem?

\n

There are three primary per diem payout options:

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1. Reimburse employees after they submit an expense report.

\n

The expense report reimbursement method is the most common way to pay out per diem money. With this method, employees charge all travel expenses to personal cards and submit receipts with an expense report when they return. Then, the company reimburses the employee via a separate check or includes the money in their paycheck when processing payroll.

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The expense report reimbursement method is the most accurate way for companies to deliver a per diem allowance, but employees must be able to cover their expenses out of pocket before the company reimburses them.

\n\n\n \n\n\n

2. Give employees an upfront allowance.

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You may opt to give employees the total amount of their per diem as a single check before their trip. This saves your team the trouble of completing and processing expense reports after the trip because employees receive their per diem as a lump sum.

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A downside to this method is that if an employee must extend their business travel, it can be challenging to obtain additional funds before they return.

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3. Distribute prepaid purchasing cards.

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Employers can authorize team members to use a business credit card or purchasing card for the trip. When employees spend their per diem using a credit card, their receipts go directly to the company’s accounting department. However, the downside to this method is the risk that employees will overspend their per diem, in which case they must repay the overage or have it deducted from their paycheck.

\n\n\n \n\n\n

What are the benefits of paying per diem?

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These are a few key benefits of having a per diem policy in the workplace:

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    \n
  • Flexibility for employees: A per diem allowance gives employees some flexibility in their travel accommodations and meals. They can typically choose to spend their money however they’d like on any covered expense. For instance, if an employee prefers to stay in a nicer hotel and spend less money on meals (or vice versa), they can do so by balancing their per diem spending.
  • \n
  • Easier budgeting: A set per diem rate helps managers budget travel expenses. Knowing how much they must allot for each employee makes it easier to create a clear and solid business budget for any trip.
  • \n
  • Less paperwork: When businesses give employees a set per diem, they cut down on the paperwork they need to verify business travel expenses. If the employer opts to give employees a check or charge card as the per diem method, it reduces paperwork for employees and accountants.
  • \n
  • Smarter spending: Employees who are frugal and savvy with their per diem can spend less than the allotted amount and pocket the additional money. On the other hand, when employers set per diem rates, they don’t have to worry that employees will overspend.
  • \n
\n

What are the cons of paying per diem?

\n

There are also a few downsides to having a per diem policy in the workplace:

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    \n
  • Incorrect prediction rates: Incorrect per diem estimates or unforeseen expenses, such as needing to take a taxi if public transit is inoperable, can cause employees to exceed their per diem allowance and thus require them to cover legitimate work costs out of pocket.
  • \n
  • Activity restrictions: Set per diem rates can restrict employees’ activities and potentially harm business deals. For example, an employee may be less willing to pick up the cost of drinks or a meal with a client if those costs exceed the per diem and would otherwise need to be met out of pocket.
  • \n
  • Unequal payments: A per diem can lead to unequal employee payments based on the time they start their day. For instance, an employee who travels in the morning will have more expenses that must be covered by the per diem than an employee who starts a business trip in the evening.
  • \n
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How can payroll software help with reimbursements?

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The best payroll software and services can streamline all per diem payout methods, including direct deposit and paper checks, while simplifying payroll, ensuring accuracy and organizing expenses for tax season.

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Consider the following top solutions:

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    \n
  • Paychex: Paychex is a comprehensive payroll solution with plans to suit businesses of all sizes. Read our Paychex review to learn how this service can help you manage per diem reimbursements as well as personnel tasks such as onboarding and HR administration.
  • \n
  • Gusto: Gusto is an excellent payroll tool for businesses that need additional HR support on top of accurate per diem reimbursements and payroll runs. Our Gusto Payroll review details how the platform’s benefits administration tools can save you time and money.
  • \n
\n\n\n \n\n\n

What are the tax implications of per diem payouts?

\n

If a company uses the federal government rates set by the GSA for their employees’ per diem, the employee has no additional payroll tax implications. In cases where a business offers a higher rate than what the federal government set, the excess amount is considered taxable income. This affects taxes for both employees and the company.

\n

Because of the tax implications, most companies opt to use the per diem rates the government sets. This way, they can distribute the allotted amount without worrying about tax complications later. The IRS provides per diem payment guidance for employers about handling per diem expenses on their taxes, but if you’re unsure, it’s best to consult an accountant or bookkeeper.

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How do you set a per diem policy?

\n

When creating a per diem policy, determine the following:

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    \n
  • Set per diem rates. Decide whether you’ll follow the standard GSA rate or set your own.
  • \n
  • Determine a payout method. Decide how to track and pay each employee’s per diem allowance. For example, will you provide an upfront stipend check, issue a prepaid purchasing card, or reimburse employees after they submit an expense report?
  • \n
  • Document your per diem policy. Like any workplace policy, per diem policies must be documented clearly and shared with your entire workforce. Ideally, you’d incorporate your per diem policy into the employee handbook.
  • \n
\n

“For employers to communicate policies surrounding compensation effectively, they first must create an overall strategy that is implemented from top leadership all the way to an entry-level employee,” said Rick Hammell, founder and chairman of Atlas.

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In addition, business leaders must maintain an open line of communication about these policies and manage their employees’ expectations accordingly. “Make sure employees are aware of how additional pay decisions are made, and if employees have questions or concerns, leadership is available to answer those,” Hammell said.

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Instituting a per diem system

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Per diem can be an effective method of covering employee expenses at predetermined rates. It helps to reduce paperwork and facilitates budgeting and smarter spending. However, instituting a per diem policy is not foolproof.

\n

Businesses that are looking to implement a per diem policy should carefully consider a traveling employee’s estimated costs, paying close attention to the location. They should also develop policies for covering unexpected costs and determine how employees will be reimbursed if they use their own money. Finally, employers should monitor set GSA rates, which are updated each fiscal year.

\n

Jeremy Bender contributed to this article. Source articles were conducted for a previous version of this article. 

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Starting a new job is almost always a bit nerve-wracking. You might be wondering, “What if the work isn’t what I expected? What if my co-workers and I don’t get along?”

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These are understandable questions to ask, but you can easily overcome these new-job challenges. Keep reading for a guide to common first-week challenges and how you can make the most of your introduction to a new workplace.

\n

Common first-week job challenges

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During your first week at a new job, you might encounter the following obstacles. The good news is they have solutions.

\n

Being overloaded with information

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One of the most difficult aspects of starting a new job is having to quickly catch up to the rest of your team, especially if you’re replacing someone. While good managers are understanding and expect there to be a learning curve, the business can’t pause for too long. Therefore, new hires often find themselves bombarded with tons of information and details almost immediately.

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“The biggest challenge I faced during my first week … [was] information overload,” said Stacy Shade, head of studio at Trick 3D. “What works best for me when I need to synthesize a lot of new information is to take a few minutes at the end of the day to review notes and jot down questions. I’ve found that it’s almost impossible to ask too many questions in the beginning.”

\n

Doing grunt work (or no work at all)

\n

While some new employees do face an overload of work, others face the opposite problem: not enough of it. If your manager or fellow team members have a particularly packed schedule the week you start, it’s likely you’ll end up doing some menial tasks that don’t have a lot to do with your overall job.

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You can still learn a lot from grunt work, though, like the inner workings of the business. But if you feel like you don’t have enough to do, don’t be afraid to take initiative and ask for meaningful work. Sitting around twiddling your thumbs can reflect poorly on you, so even if everyone is too busy to lead the way or assign tasks, try to learn something on your own and figure out a way to be productive that relates to your new role.

\n

Finding a balance between confidence and arrogance

\n

When you’re excited about your new job, it’s natural to want to start contributing ideas right away. Participating from the very start shows you’re interested in collaborating with your colleagues and helping the company. But there’s a fine line between confidence in your ideas and arrogance. In fact, employees who have been at the company a while tend to not like the newbie who thinks they already know everything even though they just started.

\n

“The goal of every new employee is to jump headfirst into [their] new role and begin adding value, which is great,” said Cheryl Kerrigan, chief people officer at BlueCat. “However, without having the base knowledge of company procedures, norms, and team dynamics, the attempted added value could be misconstrued. Find your balance … [and] process all new information before recommending alternatives to existing procedures.”

\n\n\n \n\n\n

Caitlin Iseler, founder and CEO of Happyly, said that employees with very dominant personalities should try to keep that dominance in check during their first week, especially if they have a managerial position.

\n

“The best leaders don’t come in like bulldozers,” she said. “Good leaders come in respectfully, observing the current work environment and how the company has succeeded before they were hired. Current protocols in a company usually exist for a reason. Take three months to absorb your surroundings before making changes.”

\n

Meeting new colleagues

\n

It’s likely many of your new co-workers will be friendly and introduce themselves to you in your first couple of days, but if you want to form lasting bonds with your office mates, you’ll have to continue the conversation. It can be difficult to remember the slew of names and faces you learn those first few days, let alone any personal details about them. Shade recommended adding people to your phone contacts right after you meet them (even if you don’t have their number) and adding notes about them, such as “loves rock climbing” or “lives downtown.”

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“Making notes on the new contacts I meet jogs my memory and better enables me to ask them follow-up questions or reference something from our initial conversation the next time that I see them,” Shade told Business News Daily.

\n

Some companies announce when a new employee starts. If you’re asked to provide some information about your background, that can be a great way to let your new colleagues know a little bit about you. Someone with a common interest may even reach out to you to connect.

\n\n\n \n\n\n

Learning your team’s dynamics

\n

You’re not going to have the exact same relationships with your new boss and team members as you did at your last job. It’s your responsibility as a new employee to learn your immediate colleagues’ preferred communication and work styles so that you can find a place for yourself within their existing dynamic.

\n

Kerrigan noted that understanding your team’s personalities and motivations can be an initial challenge, but it’s important to build good relationships from your first meeting with them and make a good impression. Shade agreed, saying that committing time to figuring out your team’s expectations will help with goal-setting and communication moving forward.

\n

Fitting into the company culture

\n

Most new employees get a general sense of the company’s culture during the interview process, but hearing about it and actually being a part of it are two different things. Once you’re officially employed by the company, you need to embrace the culture to really become a part of it.

\n

“Be an actively engaged new employee,” Kerrigan said. “Volunteer to host a happy hour, join a committee, participate in philanthropic opportunities, and get involved. Actions speak louder than words, and your colleagues will appreciate your enthusiasm to be a part of the company culture.”

\n

Kerrigan noted that employers should also do their part to help newly hired employees feel welcome, included and engaged from the beginning of their tenure. Managers should be prepared to use proven employee training tactics to initiate their new employees and give them plenty of feedback to encourage them as they learn the ropes.

\n

“It’s vital that new hires know exactly what is expected of them in the first week,” Kerrigan said. “Be sure to create weekly and monthly checklists … and schedule frequent check-ins to maintain momentum. By preparing the new employee to take ownership and act as a participant in their onboarding, it creates a sense of accomplishment when the learning and tasks are completed.”

\n

Knowing the dress code

\n

Although formal dress codes may seem increasingly less common, you probably can’t just show up to your new workplace in jeans and a T-shirt. But how casual can you go? To avoid the embarrassment of showing up underdressed, consult your company’s attire policy. If you visited the office in person for interviews, recall what everyone was wearing for hints about what you should wear.

\n

Dress code considerations also apply if you work remotely. Sure, your new team can’t always see what you’re wearing, but you probably shouldn’t show up to team video calls in your pajamas.

\n\n\n \n\n\n

Maintaining work-life balance

\n

Let’s say you easily struck a reasonable work-life balance at your old job. If your new company expects you to be available on Slack more often than your old one, you could have trouble adjusting at first. And if your boss unexpectedly asks you to spend several extra hours per week working, that could prove troubling too. Bringing your concerns to your boss can be the first step toward finding a balance that better suits both you and your team. [Make sure you know how to use Slack if it’s your new job’s preferred communication platform.]

\n

Since first weeks are sometimes hectic and don’t follow a normal schedule, try to clear your personal plate the first week of your new job. Cancel any unnecessary appointments, understand your day may not end at your ideal time, and be sure to get a good night’s sleep so you’re energized each day. If you find yourself needing more personal time in your week, consider asking your leader about a compressed work schedule after you’ve spent a few months proving your dedication.

\n

How to make the most of your first week

\n

Whether you encounter some, none, or all of the above challenges, here’s how to have the best possible first week at your new job.

\n
    \n
  • Confirm when and how much you’re expected to work. Let’s say you confirm you should only be in the office or available online from 9 a.m. to 6 p.m. every weekday. In that case, you can easily begin planning a proper work-life balance during your first week. Knowing these hours will also give you a sense of your team’s dynamics and the company’s culture. You’ll know your team isn’t overworked and that you’re working with caring people who respect each other’s boundaries.
  • \n
  • Introduce yourself to everyone. If you work in an office setting, take a second to swing by all your team members’ desks and briefly say hi. Yes, this move might seem intimidating, but most people will appreciate a quick introduction and look forward to working with you. If you’re remote, drop a short hello message in a Slack channel that everyone can see.
  • \n
  • Arrive early every day. Plan to arrive early so that, if you face commuting delays, you actually show up on time. Your commitment to being present can signal to your boss that they can immediately trust you with higher-level tasks. And if you arrive early, you can spend that extra morning time working through all the information that might be overloading you.
  • \n
  • Ask questions. Admitting you don’t know something and asking for help shows you’re not arrogant. Asking questions the right way can even make you appear confident – state what you do know, then what you don’t. This way, your boss sees you have the right background for the job and just need their support. Once you have that, you’ll be well on your way to becoming a valued employee. The company may even have questions for you in the form of a new-hire survey – that way, they can learn from your onboarding experience and improve the process.
  • \n
\n

Max Freedman contributed to the writing and research in this article. Source interviews were conducted for a previous version of this article.

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Whether they led a company or a country, history’s best leaders understood the importance of providing the motivation and direction to achieve larger goals. Poor leaders lose the faith and trust of the people they lead, while great leaders seem to lead without effort. The character, actions and thoughts of a leader, good or bad, permeate an organization. Your goal should be to demonstrate the best qualities of a leader while encouraging the same from those who follow you. These 35 quotes about leadership will help you think about and guide your actions.

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Inspiring quotes about the character of a leader

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    \n
  1. A leader is one who sees more than others see, who sees farther than others see and who sees before others see.” – Leroy Eimes, author and leadership expert
  2. \n
  3. “A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.” – Rosalynn Carter, former first lady of the United States
  4. \n
  5. “Our chief want is someone who will inspire us to be what we know we could be.” – Ralph Waldo Emerson, essayist, poet and philosopher
  6. \n
  7. “Great leaders are almost always great simplifiers, who can cut through argument, debate and doubt to offer a solution everybody can understand.” – Gen. Colin Powell, former U.S. Secretary of State
  8. \n
  9. “The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.” – William Arthur Ward, author
  10. \n
  11. “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – President John Quincy Adams
  12. \n
  13. “As we look ahead into the next century, leaders will be those who empower others.” – Bill Gates, co-founder of Microsoft
  14. \n
  15. “In the simplest terms, a leader is one who knows where he wants to go, and gets up and goes.” – John Erskine, author
  16. \n
  17. “The leaders who offer blood, toil, tears and sweat always get more out of their followers than those who offer safety and a good time. When it comes to the pinch, human beings are heroic.” – George Orwell, author [Read Related Article: 5 Tips for Guiding Your Team Through a Rough Patch]
  18. \n
  19. “The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.”– President Ronald Reagan
  20. \n
  21. “A leader is a dealer in hope.” – Napoleon Bonaparte, military leader
  22. \n
  23. “Always do right. It will gratify some people and astonish the rest.” – Mark Twain, author
  24. \n
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Inspiring quotes about the actions of a leader

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    \n
  1. “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.” – Jack Welch, former GE chairman and CEO
  2. \n
  3. “Leadership is a combination of strategy and character. If you must be without one, be without the strategy.” – U.S. Gen. H. Norman Schwarzkopf
  4. \n
  5. “People ask the difference between a leader and a boss. The leader leads, and the boss drives.” – President Theodore Roosevelt
  6. \n
  7. “What you do has far greater impact than what you say.” — Stephen Covey, author, businessman and speaker
  8. \n
  9. “Leadership is the capacity to transform vision into reality.” – Warren G. Bennis, founding chairman of the Leadership Institute at the University of Southern California
  10. \n
  11. “To lead people, walk beside them. As for the best leaders, the people do not notice their existence … When the best leader’s work is done, the people say, ‘We did it ourselves!’” – Lao Tzu, philosopher
  12. \n
  13. “A good leader takes a little more than his share of the blame, a little less than his share of the credit.” – Arnold Glasow, humorist and author
  14. \n
  15. “The final test of a leader is that he leaves behind him in other men the conviction and the will to carry on.” – Walter Lippmann, writer, reporter and political commentator
  16. \n
  17. “The task of the leader is to get his people from where they are to where they have not been.”  – Henry Kissinger, former U.S. Secretary of State
  18. \n
  19. “Earn your leadership every day.” – Michael Jordan, former NBA basketball player
  20. \n
  21. “The task of leadership is not to put greatness into humanity, but to elicit it, for the greatness is already there.” – John Buchan, novelist, historian and politician
  22. \n
  23. “Make sure you’re not just waiting for someone else to fix things, or hoping that things will improve … Figure out what’s going on and make a plan to improve things.” – Kenneth W. Thomas, author
  24. \n
\n\n\n \n\n\n

Inspiring quotes about the knowledge of a leader

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    \n
  1. “Never tell people how to do things. Tell them what to do, and they will surprise you with their ingenuity.” – Gen. George S. Patton
  2. \n
  3. “The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.” – Jim Rohn, entrepreneur, author and motivational speaker
  4. \n
  5. “Those who try to lead the people can only do so by following the mob.” – Oscar Wilde, writer and poet
  6. \n
  7. “The led must not be compelled. They must be able to choose their own leader.” – Albert Einstein, physicist
  8. \n
  9. “In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.” – President Harry Truman
  10. \n
  11. “Innovation distinguishes between a leader and a follower.” – Steve Jobs, co-founder and former CEO of Apple
  12. \n
  13. “If you think you are leading and turn around to see no one following, then you are just taking a walk.” – Benjamin Hooks, former director of the NAACP
  14. \n
  15. “You cannot be a leader, and ask other people to follow you, unless you know how to follow, too.” – Sam Rayburn, former speaker of the House
  16. \n
  17. “You do not lead by hitting people over the head. That’s assault, not leadership.” – President Dwight D. Eisenhower
  18. \n
  19. “Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” – President Abraham Lincoln
  20. \n
  21. “You manage things; you lead people.” – Grace Murray Hopper, U.S. Navy rear admiral
  22. \n
\n

Leadership isn’t all about you

\n

As many of the quotes above make clear, the most inspiring leaders are those who can motivate their teams to succeed. To make that happen, leaders must first embody the characters and traits they want others to emulate. When hoping to encourage your team to continuously strive for improvement, it’s best to lead by example — but it also helps to understand what motivates the people on your team.

\n

Additional reporting by Alex Halperin.

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Starting a business and growing it into a success requires a significant investment of time and resources. You may be able to reduce some costs in the beginning by wearing multiple hats, but the reality is you will eventually need help.

\n

When weighing your options, you’ll likely consider at least one business-to-business (B2B) vendor or partner for assistance in the different facets of your day-to-day operations, including accounting, shipping, manufacturing and marketing.

\n

What is a B2B vendor?

\n

A B2B vendor is a company that focuses on providing goods or services to other businesses specifically. When you collaborate with a B2B vendor, you ideally build a mutually beneficial relationship that fosters growth and adds value to your organization.

\n\n\n \n\n\n

Examples of B2B vendors

\n

Some B2B vendors are more suited to work with small businesses. Some examples of B2B vendors for small businesses to consider include:

\n

Salesforce

\n

Salesforce is a customer relationship management (CRM) platform whose services centralize marketing, sales, commerce, support and IT. Currently serving more than 15,000 businesses of varying sizes, Salesforce can track your sales from initial interaction to final invoicing. Plus, you can integrate the platform with marketing tools you may already use, such as Sharpspring (formerly Constant Contact).

\n

Read our in-depth review of Salesforce to learn more about this software.

\n

Grasshopper

\n

Grasshopper is a virtual phone system that allows you to streamline your business communication. The phone system’s app routes business calls to your personal phone, giving you the benefits of a full-featured business phone system without the costs and hassles of installation, maintenance and extra equipment. The app keeps your personal number private and notifies you when a business call is coming through so that you can act accordingly.

\n

For more information on this virtual phone system, check out our Grasshopper review.

\n

Microsoft Teams

\n

Microsoft Teams is a business communication platform that has carved a niche in the organizational communication industry, especially during the pandemic. Microsoft Teams offers workplace messaging, cloud storage, video conferencing and more as it competes with services like Slack and Zoom. Microsoft Teams is part of the Microsoft 365 application suite, so implementing this solution means you’ll have access to other business apps like Word, Excel and Powerpoint.

\n

Stax

\n

If you’re looking for a credit card processor for your business, Stax is worth considering. Stax helps keep consistency and connectivity between purchases for your business, no matter where and what device you use to complete a transaction. The service has a flat-rate pricing model that keeps fees and markups to a minimum. This structure is beneficial for a business making less than $7,000 per month.

\n

Read our Stax review for pricing and feature details.

\n

Paychex

\n

Paychex functions as a one-stop human resources and payroll service with a multitude of features. Paychex helps streamline payroll while handling payroll taxes and employee benefits packages. It also streamlines onboarding, offers time clock and attendance features, and helps you set up 401(k) offerings.

\n

For a complete breakdown of its services, read our Paychex review.

\n\n\n \n\n\n

Questions to ask B2B vendors

\n

The B2B vendors you choose will be crucial to your company’s development, so it’s essential to work with the right partners. We asked business leaders for advice on finding and maintaining the best B2B partnerships.

\n

What kind of experience do you have in our specific industry or sector?

\n

Any potential business partner should have an excellent track record. Gregg Landers, director of the growth management consulting team at CBIZ MHM, recommends finding out how much a potential vendor knows about working with businesses in your field or how much it knows about the specific responsibilities you need it to perform.

\n

Do you have existing, long-term, collaborative B2B partnerships? If so, what is the average partnership length?

\n

Longer-term relationships show a commitment to helping business partners develop instead of just engaging in transactional arrangements, according to Doron Cohen, chairman and CEO of CIAL Dun & Bradstreet.

\n

What is your current client load?

\n

Landers noted that a company with many partnerships in play might have a more “transactional” focus. If you’re looking for a partner to help you carry out high-priority, time-sensitive tasks, you may want to avoid signing on with a vendor that’s juggling dozens of clients.

\n

“[Find out] if they have availability for your work,” Landers said. “It’s not uncommon for third-party services to take all the sales they can and end up overscheduling.”

\n

What growth, innovation or improvements have you helped other business partners achieve?

\n

Cohen recommends asking for specific examples or case studies of previous clients. This will help you learn whether the potential B2B vendor truly acts as a partner and introduces new ideas and ways of doing business or if it provides an off-the-shelf service.

\n

Can you connect us to any of your current or former clients as references?

\n

While you can read online testimonials and ratings, there’s nothing like having a conversation with someone who’s been in your position with this company. Eric Casaburi, CEO and founder of the Retro Fitness gym franchise, said that you should learn as much as you can about the experiences of a vendor’s previous and existing clientele.

\n\n\n \n\n\n

How to choose a B2B vendor

\n

Think you’re ready to make a deal? Here are a few more tips for forging and keeping a successful partnership.

\n

1. Define and explain your objectives.

\n

The first step in establishing any business partnership is clearly defining your objectives and setting achievable goals. What do you hope to accomplish by partnering with this company, and will a partnership truly benefit both of you?

\n

“Often, partnerships fail because each party did not clearly understand the other’s core objective,” Cohen said. “If you can’t clearly explain your goal, how can you expect someone else to help you achieve it?”

\n

Landers agrees. “You need to figure out what’s important to you before you start talking to vendors, and really figure out what they prioritize in terms of what they deliver to customers.”

\n

2. Consider the other side.

\n

While you need to find the best partner or vendor for your needs, it isn’t all about you: Any B2B deal should benefit both parties. Cohen reminds small business owners to take the time to understand the other company’s goals and how your proposal can assist them.

\n

“This allows you to approach [the vendor] with a win-win solution,” he said. “Be prepared to explain your business model and objectives [too], as it is often assumed that each party already knows more than they do about the other party.”

\n

3. Talk to other small business owners.

\n

If you’re entering your first business partnership, you may not know all the ins and outs of working with another company. Talking to other business owners in your industry who’ve had successful B2B deals can help you navigate some of the trickier situations that may arise.

\n

“The internet puts so much information at your disposal, but the best research in small business is to get your foot on the ground,” Casaburi said. “Talk to people who are doing what you’re doing, and start there. As long as you’re not competitors, others will often help you.”

\n

4. Find the right balance of quality and price.

\n

Small businesses often work with limited budgets, and many decisions come down to cost. Though price is always a factor, you get what you pay for, so you have to consider the deal’s overall value to your business.

\n

“If it’s a critical element that you’re going to outsource or [you want to] use a vendor to develop something that gives you a competitive advantage, you may not always want to have the lowest-price provider,” Landers said. “If it’s a less critical support [role], price is more of a factor. Understand where your value is.”

\n

5. Continually revisit your supply chain.

\n

Businesses are not disparate entities, but rather complex ecosystems that require strong leadership to keep all vectors pointed in the same direction, said Joe Humm, director of client success at RevGen Partners. A harmonious supply chain environment that tightly connects suppliers, manufacturers, operating plans, forecasts and logistics is possible. However, businesses often overlook one of the biggest threats to success: quality.

\n

“Organizations [need] to gain the bird’s-eye view of quality across their entire supply chain and to make the necessary adjustments to ensure poor quality does not disrupt their end-to-end supply chain,” Humm said. “[They should] have open and honest conversations with their suppliers and CMOs, such that they are using data to maintain objective dialogue about their quality-related performance and the next steps they should collectively be taking to replicate successes or fix issues.”

\n

6. Build a trust-based relationship.

\n

As with any type of business partnership, trust is necessary for a B2B deal to work. Casaburi said that you must be able to trust the people you’re shaking hands with – and trust only happens when you take the time to build a solid professional relationship.

\n

“I’ve found that old-school relationships really flourish through good and bad times because of trust,” he said. “You need to believe in your partner and treat them like a partner.”

\n

Bassam Kaado contributed to the writing and research in this article. Source interviews were conducted for a previous version of this article.

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Hiring for a small business is not an overnight process. Reviewing applications, interviewing candidates and determining salaries take precious time away from a business owner’s regular obligations, which may end up hurting the company in the long run. That’s why some employers partner with staffing agencies, which take a lot of the time and effort out of the search for candidates by providing workers for open roles.

\n

Using a staffing agency isn’t the right choice for every business, but if you’re considering working with one to meet your hiring needs, here’s what you need to know about the process.

\n\n\n \n\n\n\n

What is a staffing agency?

\n\n\n

A staffing agency recruits employees for businesses that are seeking to fill certain positions. They help companies hire for different types of jobs: temporary (an assignment with a set start and end date), temp to hire (an assignment that’s initially temporary but is used to help an employer determine the temp worker’s long-term fit with the company) and direct hire (a permanent position in which the staffing agency acts as a recruiter).

\n

If the agency doesn’t have a readily available and suitable candidate in its talent pool, it will typically advertise the position on job boards like Indeed and other places where job seekers would likely look. The agency can also reach out directly to suitable candidates through professional platforms like LinkedIn, which allows them to filter search results by keyword, job function, location, industry and more. This approach is particularly effective when hiring a niche specialist with a specific skill set.

\n

The agency will then accept applications and conduct interviews and a background check if required, just as any other employer would. Once the right candidate is found, that person is hired as an employee of the agency (except in the case of direct-hire positions). The worker’s paycheck and benefits, if offered, are issued by the staffing agency, but the length of employment is determined by the business. [Check out our guide to choosing a background check service.]

\n\n\n \n\n\n

What is the staffing agency process?

\n

Finding qualified talent remains challenging for many small companies. In fact, according to ManpowerGroup’s research, 69% of global employers – a 15-year record high – are struggling to find workers with the right mix of technical, soft and personal skills. A staffing agency can help your business overcome that challenge.

\n

When you need new staff and choose to work with a staffing agency, the process typically goes as follows.

\n
    \n
  1. The employer contacts the staffing agency. First, you’ll reach out to a staffing agency that specializes in your industry, specifying information like the job responsibilities, the number of workers needed, the timeline to hire new workers, and the hourly wage or salary.
  2. \n
  3. The agency creates the job description. The staffing agency then writes a job description and advertises it for your business. It might also reach out to a potential candidate individually if there is someone who is a good fit for the job.
  4. \n
  5. The agency vets candidates. Once candidates begin applying for the open position, the staffing agency reviews their experience and qualifications before scheduling and conducting interviews. They then choose the most qualified individuals to introduce to the hiring manager at your business.
  6. \n
  7. The employer makes the final decision. The hiring manager or business owner can interview the staffing agency’s top candidates before making a final hiring decision. This saves you and your staff hours that you would otherwise spend sorting through countless applicants.
  8. \n
  9. The agency takes care of the paperwork. Most staffing agencies handle all the paperwork associated with new hires, like contracts, taxes and other payroll tasks.
  10. \n
\n

How much does a staffing agency charge?

\n

Staffing agencies typically charge 25% to 100% of the hired employee’s wages. So, for example, if you and the staffing agency have agreed on a markup of 50% and the new employee earns an hourly wage of $10, you will pay the agency $15 per hour for their work.

\n

In addition to the markup you’ll pay, you may be expected to cover additional fees for filling the position or contract buyout fees if you hire a temporary worker permanently.

\n

What are the advantages of using a staffing agency?

\n

As employers increasingly turn to part-time, freelance and temporary workers to fill their workforce gaps, staffing agencies have become a valuable resource for finding talent quickly and efficiently. Below are just a few of the many benefits the right staffing company can offer your business.

\n

Fast hiring

\n

The job market has changed considerably over the past several years, and the hiring process is longer and more difficult than in previous decades. Working with a staffing agency makes it quicker and easier.

\n

“Great talent becomes harder to find, and it becomes extremely time-consuming for managers to review résumés and conduct interviews, all while still being responsible for their day-to-day operations,” said Matthew Rowles, senior manager of talent acquisition operations at Coca-Cola Consolidated. “Turning to a trusted staffing partner can save time and money. A staffing firm can prescreen and qualify candidates to ensure the manager is always interviewing candidates that are a fit for the role.”

\n

Reduced team workload

\n

One of the upsides of employing the services of a staffing agency as opposed to assigning hiring responsibilities to a member of your team is that it frees that individual to concentrate on critical role-specific tasks. A staffing agency can focus on the hiring process; that is its main function, after all. But if your employees have to dedicate some of their work time to vetting and interviewing numerous candidates, it might disturb their day-to-day routine and reduce productivity. A staffing firm solves that problem.

\n\n\n \n\n\n

Flexibility

\n

AJ Brustein, co-founder of on-demand staffing platform Wonolo, said that many companies are holding back on hiring for full-time positions for several reasons. A focus on leaner operations has a lot to do with it.

\n

“Companies are trying to be more productive and only have workers when they are absolutely needed,” Brustein said. “They need to find ways to make sure every dollar they spend is going to help the business. Temp staffing allows them to only have people when they need them, and those people are being productive.”

\n

Jason Leverant, president and COO of national staffing franchise AtWork Group, said that employers have come to realize the value of having a fluid workforce that can be dynamically adjusted to meet their hiring needs on an ongoing basis.

\n

“The flexibility [of using a staffing agency] became the primary driver in the push to bring on a workforce that can adapt with the ebb and flow of a client’s business demands,” Leverant said.

\n

Specialized hiring

\n

According to Monster’s Future of Work Report 2022, more than 9 out of 10 employers are struggling to fill a position due to a skills gap. If you’re looking to hire a niche worker with specific skills, a specialized staffing firm can make the process more painless.

\n

For example, some agencies solely focus on recruiting employees in the tech or legal fields. They have the necessary connections, resources and accumulated pools of passive candidates looking for new opportunities, allowing them to locate a perfect fit for your role. Additionally, their extensive knowledge of area-specific salary ranges and market history, and their ability to spot red flags during the screening process, can save you money in the long run.

\n

Reduced risk

\n

There are a lot of legal responsibilities involved with being an employer, like covering certain taxes, providing health insurance coverage and following labor laws. From a financial and operational standpoint, hiring employees also comes with financial risks, especially if someone new has to be fired or unexpectedly leaves. When you use a staffing firm, the agency assumes many of these liabilities for you.

\n

“Staffing firms are generally considered the employer of record when it comes to the temporary associates that are placed, so … [staffing firm clients] appreciate the fact that, for the most part, the staffing firm maintains full responsibility for the employees while they are on assignment,” Leverant said. [Read related article: Business Liabilities Every Owner Should Know]

\n

What are the disadvantages of using a staffing agency?

\n

While there are plenty of benefits when using a staffing agency for simplifying and accelerating your hiring process, it’s important to be aware of the potential risks and downsides.

\n

Additional hiring costs

\n

There is no getting around it: Using a staffing agency comes with, on average, a 15% to 25% annual salary fee that varies depending on the industry and other factors. On the other hand, Zippia research shows that having an in-house HR team can increase a company’s hiring costs by more than 50% when you factor in those team members’ annual salaries. It’s also worth considering the productivity, time and resource investment that comes with handling hiring internally. Each company has to ask itself which is the real disadvantage.

\n

Wide culture gap

\n

While a good staffing agency takes time to get to know your business and its values, it will likely lack deeper insight into your company’s culture. This means that its proposed candidates, while possessing relevant skills and experiences, might end up clashing with the rest of your team when it comes to ethics and attitude. However, this can be mitigated by introducing an internal culture screening process in addition to the agency’s vetting procedures.

\n

Reduced team bonding

\n

The traditional in-house hiring process usually involves several rounds of interviews conducted by different team members. This method allows the staff to get to know the prospective candidate and form a certain bond with them before they become an employee. Using a staffing agency to primarily fill the role of interviewer means that a new hire often comes to your business as a complete stranger and will require additional time to build relationships. This downside can become even more problematic with temporary workers, who might be unfairly perceived as inferior to permanent employees.

\n

Reputation consequences

\n

Establishing a stellar internal hiring process can help strengthen your company’s reputation with both prospective and current employees and become an integral part of your culture. Even if a candidate doesn’t receive a job offer, they can still spread the word about their positive experience with your organization. But if you decide to use a staffing agency, you are relying on its established brand, reputation and professionalism. In that case, if a candidate has a poor hiring experience when interacting with the agency, it can reflect poorly on your own business.

\n\n\n \n\n\n

What are common misconceptions about staffing agencies?

\n

Though there are certain disadvantages of employing the services of a staffing agency, some perceived cons can, in fact, be blessings in disguise. Here are rebuttals to two common misconceptions about outsourcing your hiring.

\n

Too expensive

\n

One of the most widespread, albeit inaccurate, beliefs about hiring a staffing agency is that it’s too expensive to be worth it. Why pay extra in recruiting fees when you could hire someone yourself? However, while you might think you’re saving money upfront, using a staffing agency might save your company more in the long run.

\n

“Many companies will only look at the agency’s fees to determine the cost, but typically fail to realize the value and savings they can provide as well,” Rowles said. “Time to hire is an important factor when it comes to how much an open position can cost a company. The longer a position is open, the higher the cost, due to a loss in productivity and diverting resources. Working with a staffing firm can help decrease the time to hire and help decrease a loss in productivity.”

\n

Lower candidate quality

\n

Some companies may believe that workers who come through staffing agencies are only available because they couldn’t get hired anywhere else. That’s not necessarily the case; in fact, temporary employees are often overqualified for the jobs they’re doing, Brustein said.

\n

“These workers decide to work temp jobs because they value flexibility or they are trying to get into a different field, or maybe they just want a big change and temp positions are often easier to land initially than permanent ones,” he said. “We often see MBAs doing entry-level temp work because it helps them get a better sense of businesses at the field level.”

\n\n\n \n\n\n

How do you start working with a staffing agency?

\n

Ready to hire a staffing firm? Here’s expert advice on kick-starting the relationship.

\n

Find the right agency.

\n

Before you can rely on a staffing agency to find quality employees, you have to choose a firm that’s right for your business. Leverant emphasized the importance of selecting a company with a stellar reputation for abiding by sound business practices.

\n

“Make sure you’re working with a reputable firm that takes pride in the employees it sends,” he said. “That includes making sure that their employees have all of the proper credentials verified, including, but not limited to, reference checks being conducted. You also want to make sure that they are carrying the proper insurances, including general liability and workers’ compensation insurance.”

\n

As with all business relationships, a staffing firm needs to provide value to you to be worth the investment.

\n

“Sit down with a staffing firm and truly find out if they can bring value to your organization,” Rowles said. “As a small business, each employee’s importance and cost associated with recruitment is amplified, so … find a firm that treats [your organization] as a business partner, not just a client.”

\n

Similarly, if you decide to use an on-demand staffing platform instead of a traditional staffing firm, check reviews and make sure the site is trusted by other business owners and workers before you sign up or make any payments.

\n

Be clear about your needs.

\n

Good staffing agencies want to help you find the best workers for your organization, but they won’t be able to do that if you don’t communicate clearly and thoroughly about your company, your position and the type of person you want for the job. Beyond discussing the basic responsibilities and required skills for the role, specify any business policies (dress code, hours, breaks, etc.) to give the staffing firm representative an idea of your corporate culture and what kind of professional would succeed at your company.

\n

Once you’ve clearly defined your needs, let the recruiter know so they can start the search. If at any point your needs and preferences change, be sure to update the agency so they can adjust their search accordingly.

\n

Check the legal aspects.

\n

Depending on the positions a staffing firm is helping you fill, check that employment-related legal details, like worker classification and payroll taxes, are taken care of. For temporary and temp-to-hire roles, the staffing agency is the official employer for tax purposes, so they should confirm that the workers you use are in fact employees and not independent contractors, Leverant noted.

\n

“Additionally, you want to review the contracts to ensure that there are proper provisions in place regarding indemnification, preferably a ‘dual indemnification’ clause, which protects both parties from issues that may arise,” Leverant said.

\n

Maintain a good relationship.

\n

Finding the right staffing agency for your business may take some trial and error, but once you’ve identified one that provides high-quality service and well-qualified workers, stick with it and give feedback along the way. Discussing new workers’ performance with your agency representative can help both you and the firm with your future talent searches.

\n

“Whether you tap into on-demand staffing solutions for unpredictable needs or traditional staffing solutions for predictable needs, always ensure you have staffing agencies who have proven themselves to be reliable so you can focus on growing your business,” Brustein added.

\n

How much should you rely on a staffing agency?

\n

Whether or not you should solely rely on a staffing firm in your hiring process depends on your business’s needs, the urgency of filling the role and the budget. While some agencies offer full-cycle recruitment support from the initial job brief to the new employee’s onboarding, you might consider including at least one internal vetting stage.

\n

For example, you can have an informal chat or a final interview with the prospect and their future direct line manager or an executive team member. This can help ensure the potential employee is a culture fit and would give the candidate an opportunity to ask questions that an agency might not be able to answer.

\n

Some companies choose to use a staffing agency solely for initial screening purposes to sort through the vast number of incoming applications. Those businesses then opt to handle everything else themselves. In contrast, others also rely on external firms to help with interview scheduling or job placement and advertising. Businesses can even choose to continue in-house recruitment efforts in conjunction with staffing agency services to get the best of both worlds, so to speak.

\n

Is a staffing agency a good choice for your business?

\n

Using a staffing agency can help accelerate your hiring process, reduce the workload for your current employees, offer flexibility regarding the type of hires and mitigate legal risks. At the same time, its services come with an additional fee that can be as high as 100% of a worker’s annual salary, and they are less likely to be a suitable culture fit.

\n

It can be a good idea to combine an agency’s efforts with additional internal vetting to ensure the optimal fit. If you decide to solely use a staffing firm, make sure to carefully assess your business needs, goals and budget; conduct an extensive reference and reputation check; and clearly communicate your hiring requirements.

\n

As an alternative to using a traditional staffing agency, you can sign up for on-demand hiring platforms like Upwork, Freelancer.com and Wonolo, which give you access to independent professionals who are ready to work, usually remotely. These platforms operate a bit differently in that workers who come through these sites are considered independent contractors, so you’re responsible for paying them directly and issuing a 1099 tax form at the end of the year. However, as with staffing agency employees, you are still relieved of official employer obligations (payroll taxes, benefits, etc.) when using these workers, assuming they are properly classified.

\n

Ultimately, it’s up to you to determine the extent of a staffing agency’s involvement to maximize efficiency and suitability for your organization’s particular needs.

\n

Nadia Reckmann and Sammi Caramela contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

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Hiring the right people is a complex but critical task, whatever type or size of business you’re running. This includes the people who head the biggest and most powerful companies in the world. If you’ve ever wondered how C-suite executives like Bill Gates, Steve Jobs and Oprah Winfrey have tackled the task of building a team, read on for the philosophies and tactics of these renowned leaders.

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Inspiring quotes from famous leaders

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1. “I like to hire people who have a specific lane, who do something very well. I hire a lot of people who are smarter than me. If I’m the smartest person in my company, then my company will go nowhere.” – Issa Rae, director, actor and writer

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Sure, you want folks on your staff who can multitask. But Rae recognizes that sometimes, you need someone in a specific position who is very, very good at one thing, possibly something that you’re less good at yourself.

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Rae also echoes the sentiment that almost all these executives offer: Find the courage to hire people who are smarter, more specialized, or more creative than you are. Those people can see beyond what’s obvious to you and figure out ways to reach business goals that may not occur to you.

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2. “I will only hire someone to work directly for me if I would work for that person.” – Mark Zuckerberg, CEO of Meta

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Zuckerberg’s approach to hiring shows that he’s humble enough to listen to and take advice from his employees, regardless of their rank. As a boss and leader, it’s your job to not only guide your staff, but also to identify those who can one day lead alongside you – or even fill your role as you move up. Seeking out employees with a knack for leadership and sound judgment can only help you as your team grows.

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3. “When you have really good people, you don’t have to baby them. By expecting them to do great things, you can get them to do great things. A-plus players like to work together, and they don’t like it if you tolerate B-grade work.” – Steve Jobs, former CEO of Apple

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No leader wants subpar work from his or her team. That’s why it’s so important to hire what Jobs called “A-plus” people right from the beginning. Seek out the most driven, hard-working candidates, and you’ll get results.

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Successful people often talk about a teacher or other mentor who saw some spark in them when no one else did – someone who expected great things from them. Most of the time, a person will give you what you expect. Aim high for your team.

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4. “Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.” – Oprah Winfrey, chairwoman and CEO of Harpo Productions and the Oprah Winfrey Network

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While she may not have been speaking specifically about hiring, Winfrey’s quote holds true for leaders looking to build a strong team. It’s easy to draw the attention of top talent when your company is doing well. However, the people who believe in your company’s mission statement – those who will stick by you and help see the business through the inevitable rough patches – are the ones who make the best employees.

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They are also the people who are best at thinking on their feet in challenging times. This personality type can work through difficulties because their eyes are always on the prize, and they want your venture to succeed because they believe in it.

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5. “If you always hire people who are smaller than you are, we shall become a company of dwarfs. If, on the other hand, you always hire people who are bigger than you are, we shall become a company of giants.” – David Ogilvy, founder of Ogilvy & Mather

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Great leaders often recommend hiring people who are smarter than you and can supplement your weaknesses. Ogilvy, known as the “father of advertising,” expressed this sentiment, advising managers to look for ambitious, talented individuals who can make the company greater than the sum of its parts.

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This, of course, requires a dose of humility, the acknowledgment that someone else may have a better idea than yours, and the willingness to keep your door open to all comers for suggestions.

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6. “The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.” – Theodore Roosevelt, 26th president of the United States

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Micromanaging is seldom an effective leadership style. Learning to delegate and let go of the reins can be difficult, but it’s easier when you hire people you can trust to accomplish tasks efficiently and correctly.

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Steer clear of hiring only yes-people. Those who are willing to challenge the status quo likely also have a history of self-management. They are the kind of people who can take your instructions and run with them.

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7. “For … every hire I’ve made, I’ve gotten the exact person I wanted. It’s been surprisingly easy to assemble what I think is the best and brightest team.” – Marissa Mayer, CEO of Yahoo

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In an interview with Inc., Mayer suggested that she’s been able to hire every person she wanted because the company “sells itself.” Although your company may never be as big as Yahoo, it can and should strive to have a culture and mission that sell the place to prospective employees – who should, of course, be among the best and brightest in their field.

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Job applicants are told to research a company before they apply. This includes non-task attributes, like workplace culture and community involvement. What story will they find behind your company? Actively seek out ways to make your company a place where people want to work.

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8. “If we weren’t still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become a mediocre company.” – Bill Gates, CEO of Microsoft

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Microsoft didn’t become one of the most successful tech companies in the world by taking it easy. If you want to keep growing your business quickly, you can’t slow down or think that where you are is “good enough.” Keep seeking out talented individuals to join your team and take it to the next level.

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Consider how you will aim for new business goals once you meet the ones you’ve already set. Then hire the people who show the ingenuity, vision and work ethic to keep reaching higher along with you.

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9. “You can dream, create, design and build the most wonderful place in the world … but it requires people to make the dream a reality.” – Walt Disney, founder of The Walt Disney Company

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Disney built a multibillion-dollar global empire – and he couldn’t have achieved that without a dedicated workforce behind him. Find talented candidates who want to help make your company’s dream a reality and who can work well with your existing team to make it happen.

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Disney could only build his empire with other innovative and creative people by his side. He made sure to never be the only one in his company with big ideas, or with the creative thinking required to guide those ideas to fruition.

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10. “We can’t solve problems by using the same kind of thinking we used when we created them.” – Albert Einstein, theoretical physicist and Nobel Prize winner

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He may not have been an entrepreneur in the classic sense, but no one questions the fact that Einstein was a major innovator. And remember, this is the same person who said “Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution.”

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What business leader doesn’t want to stimulate their company’s progress or evolve their business? New ways of thinking are what lead to innovation, and no business venture can be stagnant and also successful. Hiring people who think differently from you is one way to keep your business innovative and innovation is the only real path to success.

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11. “You gotta take what you’ve got and fly with it.” – Jim Henson, puppeteer and creator of The Muppets

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Maybe you’re reading the quotes above and thinking, “Sure, these all sound great, if you have resources.” In the end, of course, you have to work with what you have. Henson believed in making everything you can out of that.

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If you’re looking for innovation but aren’t in the market for new hires right now, lean on the staff you have: Ask for input. Brainstorming isn’t limited to famous people and big executives; some of the answers you need (and might not even know you need) can reside in anyone within your organization.

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Ask your staff questions: What do they need that they don’t have? Can they come up with new ways of doing a task that could make it more efficient, profitable or creative? Sometimes the workers in the trenches will have perspectives and insights you hadn’t considered.

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Ask yourself questions too, even if you feel bogged down by your day-to-day. Make one of those middle-school idea maps, and don’t limit yourself in any way; you might surprise yourself with answers you didn’t know you already had. “Use what you have” was the motto that got people through the Great Depression. That motto gets people through tough times even now, and it will help your business survive and thrive too.

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Putting it all together

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It’s clear that a lot of famous leaders hold at least one hiring philosophy in common: Never be intimidated by an applicant who may have something on you; they’re the ones who have something for you. The best leaders know that it’s the smarter, more creative, visionary types who will be able to spot things you might miss in your own organization, whether that’s a better way to do something you already do, or an opportunity to try something new.

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These leaders also veer away from over-managing. That’s why it’s crucial to think about the types of people (and there should be various “types”) that you’re willing and eager to put to work. Look for self-starters who can help you imagine big things – and let them get to work.

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