The site is one of the experiments I like to refer to as the “inverted news paper” - citizen journalism at its most raw. Every day, a wealth of local information is created — officials inspect restaurants, journalists cover fires and Web users post photographs — but who has time to sort through all of that? EveryBlock aims to collect all of the news and civic goings-on that have happened recently in your city, and make it simple for you to keep track of news in particular areas. They’re a geographic filter — a “news feed” for your neighborhood, or, yes, even your block.

If your business is local and serving the public, check out how you are being discussed in your communuty.

The noise can really get in your way if you don’t get in front of it.  We have been trying to execute on this every week by giving people updates prior to the changes actual release.  It relieves tension and it permits people to plan for the next change. 

The trade off can be a week delay of the execution of the change but the benefits outweigh the cost.

Sincerely,

Lorne

Below are the emailed questions I received from the producers in advance of my most recent appearance. They take this and turn it into what’s called a “rundown”, which is essentially an outline of the show with talking points, many of which end up on the teleprompter. I figured the process, as well as the actual advice, might be illuminating for you. Enjoy!
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Financial:

What are the biggest financial mistakes that SBOs make?

·         Not prioritizing the spending

·         Not keeping track of available cash this month and in the months and year ahead

·         Forgetting that it’s easier to raise money when you don’t need it

·         Buying new instead of “used”.

·         Ignoring what I call the “2X Factor” which makes the point that things usually take twice as long and cost twice as much than you expect

·         Buying too much inventory or spending too much on advertising without testing out what works best

·         Not paying attention to building business credit

·         Accumulating “fixed costs” instead of “variable costs” which are far more flexible to changing status of the business

·         Receiving investment and not ensuring that there’s a unified plan and timeframe. This is called, “alignment of interests,” and is critical to create.

What resources are there for people when they are in a hole?

·         there are consultants who will help you build up your credit, personal and business

·         utilize an accountant. Don’t just check in at tax time – make it a quarterly check-in.

·         PR firms are helpful in managing any external-facing issues

Should they use their credit cards?

·         Credit cards are a last-resort solution to financial problems. More often than not, they simply dig a deeper hole for you.

Should they go to a bank for a loan?

·         Going to the bank for a loan BEFORE crises occur is always smarter.

Where do you turn when you can’t get a loan?

·         Your rich uncle

Friends and family? Pitfalls / pros?

·         Friends and family are a great way to go as long as you treat any loan or investment professionally and set expectations and communicate regularly and thoroughly about status of their investment

FYI, one of the most common laments we hear on our radio show is, “how do I get a loan if I don’t have good credit?” That’s a huge impediment and reality out there…

Legal:

What are the biggest legal pitfalls that SBOs fall into?

·         Not being protected or insulated from a lawsuit – this is easily achievable by moving from “sole proprietorship” to “LLC” or “S Corp.”

·         Ideas are copied by someone else b/c the ideas, known as “intellectual property” weren’t protected or enforced properly.

·         Non-compete clauses are not entered into with a partner or key employee at the time of engagement and when they depart they use their experience with you to become a competitor. They can poach clients/customers, too.

·         Not having people sign a Confidentiality Agreement whenever possible

·         Making representations that are too grand and unrealistic with investors, which can lead to shareholder hostility and worse

How important is an attorney to a small business?

·         Very. That’s why attorneys are so damn wealthy – they’re needed!

If a SBO finds themselves in a legal matter are there any resources they can go to for help?

·         Attorney is first stop. If no attorney, call around people who you trust and ask for a referral.

·         Internet is valuable but can be hit/miss in terms of reliable information

·         If a legal issue arises, I recommend making that your leading priority until you’re certain that it’s not a significant threat. Left untended to, a legal situation can drown you. This is one area where you always want to be extremely vigilant.

Insurance

What are the biggest insurance mistakes SBOs make?

·         Not getting coverage, especially basic liability coverage

·         For investors, it’s effective to indicate to them that you’ll have “Key Man” insurance. Helps them manage their “downside” in the event that you’re incapacitated.

·         Not getting coverage for a home-based business b/c you assume your homeowner’s insurance covers all your stuff.

·         Skimping on healthcare coverage. When a medical situation arises, don’t let it eat your finances. As pricey as it is, it’s better to bear the burden of healthcare costs over a longhaul than it is to get slammed all at once.

What is the bare minimum that a SBO needs?

·         Healthcare

·         Liability coverage

·         Short-term/long-term disability

Natural Disaster

Obviously, these are unforeseen, but how can SBOs prepare for them?

·         Have an emergency procedure in place for you, your team and customers who may be present/impacted.

·         Establish communication and rendez vous points

·         Sounds crazy, but each year thousands of people get blind-sided. You always think, it happens to other people, not me… but alas…

What resources are there for disasters?

·         www.Ready.gov – they provide both business and personal disaster planning advice and materials

Management / Employee

What are the biggest management / employee problems?

·         Most employee problems result from poor selection and management

·         Theft of intellectual property

·         Sharing of proprietary information

·         Stealing

·         Working under influence of drugs

·         Employee-employee discord

How do you handle a major employee crisis?

·         If there’s mutiny on the bounty or one bad apple, individual meetings complemented with group meetings are effective. Anytime something goes awry, it can be a great learning opportunity for everyone else as long as embarrassment is avoided.

·         If the employee has an emergency (is that what you mean?!), treat them like a family member.

It may have taken the shape of a loss of data, or a short-fall in needed cash. Perhaps it was a lawsuit or a personal medical situation. Who knows - it could’ve been an unexpected tax hit or maybe even a key customer pulling back from a large order that you’d considered “in the bag”.

We had our own crisis last month when this website was attacked and disrupted by a “hacker-bot”, a new term for me and one I’ll always wince at when I hear it in techie conversations.

This coming week I’m going back on CNBC’s The Big Idea to discuss how to deal with crises like those mentioned above. I’m wondering if any among you would like to be featured on the program to ask your burning question about how to deal with a crisis you’re experiencing. The show will air next week on Tuesday, barring any pre-emption.

So, anyone dealing with a crisis at their business? Been through one recently and want to avoid similar situations in the future? Please share your comments below and/or volunteer to be considered for the show by satellite uplink from your town’s local TV station.

If preferred, as an alternative, you can use this link to contact me, too.

Rich

 Wellness in the workplace is not just for big business. As entrepreneurs, you can encourage wellness, too.

By implementing a “healthy workplace” you can reap the benefits. They can include increased employee morale and decreased absenteeism. Most importantly, if you offer employees the educational tools and resources to purchase their own individual health insurance, they will strive to be healthier due to their individual accountability and financial gains.

Keep in mind, the best wellness programs don’t come from upper management, they come from the employees themselves. Take inventory and ask employees what they’re interested in and they will be more likely to engage in a healthy lifestyle and company-sponsored programs.

Think about offering wellness education, health tips for employees to maximize their exercise regimens, and other low-cost options to make getting healthy fun. The professional benefits are endless when employees are living their best life both at work and at home. As entrepreneurs, that’s exactly what we want.

-Always compare multiple policies and prices. Don’t just look at insurance companies that “your parents recommend.” The market is incredibly competitive, so you never know what plan may be best for your needs and budget.

-Understand what’s covered and what’s not. It is important to know that office visits and other “assumed” benefits will be included. Make a list of what is important to you (vision, dental?). There are over 300 competitive plans in this market alone.

-Clearly understand the confusing “buzz words” of each potential policy. Make a detailed list of each policy – what is your co-pay, deductible, co-insurance and monthly premium?

-Know the details. Does your plan include a health savings account? Which doctors and hospitals accept your coverage?