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March 19, 2012 

Human Resources

In today’s competitive, global marketplace it has become increasingly difficult to find the best people for your business.

In competitive growth industries employees have the advantage with many options for employment and self-employment.  Entrepreneurs need to stay on top with solid human resource hiring policies, procedures and practices.

Similar to any other project, as an entrepreneur or human resource specialist you need to identify your human resource issues through analysis of the current environment.  You will need to establish goals, develop methods to acquire professionals and a budget, and implement human resources procedures through strong project management.  One of the key parts of your strategy is finding the right source or recruitment method to acquire talented professionals.

Here are some sources, methods and helpful tips to help you find and secure professionals for your business

Recruitment Methods – Social Media

Bubbling to the surface in the modern era is Social Recruiting through social media as a method to get the message out on employment opportunities.  With almost 1 Billion Facebook users, over 300 Million Twitter users, millions connected in LinkedIn, etc, it is applicable to send out these opportunities on business pages within each social media platform.  Targeted ads on social media sites work too.  Most social media methods are free to use or at relatively low, controlled cost if advertising.

Recruitment Methods – Word of Mouth

If you are in a busy, social networking environment, you may have the ability to promote opportunities across your network.  You have most likely gained trust in your network contacts, and those contacts could vouch for professionals they suggest.  This would accomplish at least one level of reference checks for you.

Recruitment Methods – Intranet or Internal Posting in the Workplace

If you organization is large enough, Intranet (internal web network) or internal postings through email broadcasts may work to your advantage.   This may result in individuals moving across units or sections, but would be a method to provide developmental opportunities for staff.  Internal development helps retain staff and to build capacity within the organization.

Recruitment Methods – External Posting and Advertising

Many large job placement companies exist on the internet such as Careerbuilder.com  Monster, etc.  With millions of daily users across these platforms, an external ad will catch the attention of an astute professional that seeks opportunities through a variety of platforms.

Recruitment Methods – Traditional Methods of Advertising Jobs

Traditional forms of advertising fall under this category, such as posting in newspapers, periodicals, and magazines.   Recruitment firms are still a good option if you want to outsource your human resource recruitment processes.

Obviously you will need to review any option with caution, to ensure you achieve maximum benefits through your human resource recruitment method and budget.

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March 18, 2012 

US Economic Indicators

As an entrepreneur, review and keep track of US economic indicators and trends.  With the latest report on US Job Recovery in February, many indicators are looking positive.  A recent Bloomberg report cites positive trends in indicators such as the Gross Domestic Product, consumer confidence, the housing industry and interest rate figures.

Economic Indicators – Gross Domestic Product

The Gross Domestic Product (GDP) is the indicator of the market value of goods and services produced in the country through a specific period.  The sources in the Bloomberg report estimate that GDP will grow by 2.2% for 2012 in the US, up from 1.7% in 2011.  Good potential news in the country as recent manufacturing reports have been favorable.  

Also an emphasis on “Made in the US” strategy will help boost GDP as the focus may be away from many foreign manufactured or supplied goods.

Economic Indicators – Consumer Confidence

Consumer confidence is the measurement of how positive, how comfortable the consumer is with the economy and their own personal finances.  It is usually tied to growth in consumer spending in the economy.  Business Week reported a rise in consumer confidence to a four-year high, and further stated a Bloomberg Consumer Comfort index rising.  Improved industry sectors and employment may be the reasons behind a recent rise in consumer confidence.

Economic Indicators – Housing Industry

A Washington Post article is one of those reports pointing to positive trends, showing the housing market stabilizing and in some sectors, housing sales improving.  With improvement in the housing industry, many other indicators such as employment, retail and material sales could improve.  However, in a fragile economy many of these industries are linked, and so is growth.  Factors such as the increasing fuel could have a negative impact on these recent housing market improvements.

Economic Indicators – Interest Rates

The Bloomberg report sources indicate that interest rates will remain steady and low over the next two years.  This is potentially good news for entrepreneurs who will be looking to start-up new ventures and need commercial loans.  This is also favorable news for existing businesses looking to expand and in need of additional funds.  Within your financing mix, commercial loans take up the majority percentage of all financing.  The low rates will help lower the overall cost of borrowing.

As an entrepreneur or business owner, carefully watch and review economic indicators and trends, as those indicators most likely signal potential impacts on your business and position in the economy.

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March 17, 2012 

Business Life Cycle

In the normal context of the business life cycle, a business, product, service or idea will progress throughdevelopment, growth, peak and decline phases.

This cycle normally repeats over and over again as businesses usually adapt and change with the environment, close to the peak or into the decline phases.  The resulting graph of a fairly healthy, adjusted business looks like waves increasing in height from left to right on the graph.

Current Business & Economic Climate

In addition to the phases of the normal business life cycle, other factors such as economic or global issues can alter the business life cycle.  In the current economic climate over the past couple of years, those business cycles have either peaked or declined earlier than projected. 

In a recessionary period, many business cycles may be on the declining side, but as economies pull out a recession, cycles hit a low stabilization period and another growth period begins.  Many businesses in 2012 are coming off the declining phase, reaching a low and are starting on the growth incline again.  Some stock graphs sometimes mimic the business cycles of many corporations.

Business Cycle – Development Phase

This phase is the stomping ground for new product and business development.  It is the research and development phase behind ventures, with heavy emphasis on planning, testing and piloting projects.  In a repeating cycle this is a period of stabilization (as indicated by the trough on the graph), as companies have adjusted from declining phases and have stabilized operations and finances from a potential loss period.

Business Cycle – Growth Phase

Following the development or stabilizationperiod, companies and businesses enter a growth period, where new revenues grow from new products & services, or improvements made in operations.  The growth, inclined phase indicated on the graph could be a result of efficiencies made in operations, to make businesses more competitive.

Business Cycle – Peak Phase

As products, services, ideas, and business reach maturity, they hit a peak phase where no further growth occurs.  Peak phase may indicate no further revenue can be generated from products, or that the business has reached its maximum market penetration, or that the business may have reached maximum consumer interest.  If you are keeping accurate, timely track of your finances and analyzing your trends, this would indicate that you may have to start making adjustments in business.

Business Cycle – Decline Phase

Many economists and business professionals have stated that the current global economic circumstances may have caused companies to enter the decline phase faster than projected.  In the normal business cycle, if adjustments to business are not made, companies, products and ideas usually enter a deep decline period.  The current economic climate may have accelerated that, but many statistics are indicating that the economies are turning around.

Business Cycles Repeat and Return to the Positive

As noted in the cycle, declining phases cause reactionary measures to once again achieve a period of stability.  Following stable periods comes growth phases and the business cycle repeats on and on.

Business Tips for the Business Cycle

• Be aware of where your company, product, service or idea is within the business life cycle
• Keep track of your finances and operations and watch for trends as these trends are your indicators.
• Be pro-active rather than reactive; being pro-active to trends may help you recover easier and faster from declining phases
• Be cognizant of the business and economic climates locally, nationally and on a global basis

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March 17, 2012 

Social Media Statistics

Different social media sites are used by different age groups for differing purposes.  Whether you use social media sites for business or other social means, you may find after reviewing stats and infographics such as this, you may want to alter or focus attention on sites that cater to certain age groups.

Courtesy of Pingdom.com and data from Google Ad Planner, here is an interesting age distribution breakdown of US users on different social media sites.

Social Media Statistics – Infographic

From the above graphic, you can see that younger users dominate sites such as Bebo and MySpace and Xanga.  The more mature age groups, possible more engaged in using social media for career or business purposes, are the majority users on Twitter, Digg, Delicious, LinkedIn, and Classmates.

Targeting and the messaging around your products and services, or for other social means, is critically important.  Knowing statistics around age demographics on social media sites will help shape your marketing strategy and assist you to get the right message to the right target market.

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March 16, 2012 

St. Patrick’s Day

On the other side of the rainbow, another calendar event brings another commercial opportunity for entrepreneurs.  For St. Patrick’s Day, this special period is no exception.  From a BigInsight survey for 2012 St. Patrick’s Day spending, businesses will reap an estimated $4.6 Billion pot of gold for this year’s event in the US.

St. Patrick’s Day Retail Statistics

According to the National Retail Federation (NRF) the average spending per consumer is estimated to be $35 US, centered on the food & beverage industry, but also ties into the retail industry with festive merchandise purchasing.  Now that’s a lot of shamrocks!

St. Patrick’s Day Event – Business Planning

It is good business practice to plan out your operations and marketing well in advance.  As part of your normal business planning core activities, your business plan may be targeting calendar periods such as this one, promoting your own mix of good & services.  As a well prepared entrepreneur in industries such as retail, and if you rely on bigger calendar events to fuel your annual sales, ensure that you plan accordingly well in advance.  This includes shaping your marketing strategy and aligning your suppliers, months before the actual calendar event.

So, sit back enjoy your green alcoholic beverage and plan out your next commercial opportunity.  With some Irish luck, you will hit your pot of gold.

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March 15, 2012 

Talent Management – Human Resource Practices

In current human resource practices, Talent Managementinvolves modern methods to recruit, retain and develop valued staff for your organization.

In a competitive global economy it has become increasingly more important to place emphasis on people as the greatest resource.

Human Resource Practices – Identification and Organizational Scan

One of the first steps to building strong human resources is to have unit managers and executives review the organization’s human resources needs and to scan the existing human resource environment.  As part of the core business planning duties, human resource needs should be identified as the elemental base.   The human resources plan would be developed from the operation plan and would identify the budgetary resources required to fuel staffing costs.

As part of the planning stage, executives and human resource specialists scan internal staff to determine if employees are fulfilling the needs, and to identify employees that strive in the environment and have the potential to develop within the organization.  Developing individuals within your organization helps build morale, lowers the human resource costs of acquiring on the outside, and helps retain corporate, business and operational knowledge.

Human Resource Practices – Recruitment

Internal talent identification and scans may reveal some deficiencies and the planning process may identify new needs (i.e.: expansion needs).  There will always be a solid base of employees that are not retiring or leaving the organization anytime soon.  Recruitment will become a necessity when your internal resources can’t meet your operational needs.  However, through strong talent management or internal staff, turn-over rates and external recruitment would be kept to a minimum.

Human Resource Practices – Retention

As one of your most important human resources strategy, you should place employee retention as one of your top priorities.  Existing veteran employees in operations and management help your business run smoothly and help make your business successful.  As an entrepreneur you need to ensure you identify the people you need to retain.  Those are the valuable employees that carry the operational efficiencies, best practices, and knowledge of the organization.  Those employees are the ones that train and mentor new staff, and in an open environment, easily share and promote best practices.

Human Resource Practices – Development and Capacity Building

Now that you have identified and focused on retaining valued staff, your employee development human resources strategy needs to kick in.  With differing operational and management levels in your organization, it will make logical sense to develop and promote your retained staff.

Capacity Building in your organization is key to building up operational, management and financial management skill sets of individuals.  Through your environmental, human resources scans you have identified individuals who could be developed and would bring additional benefits to your organization in promoted positions.  Developing key existing staff is cost effective for the organization and builds morale with your employees, as they consider this to be a key factor in job satisfaction and an important reason to stay with the organization.

Identification of valued staff, and retaining and developing those key players will help your organization be successful.  Remember that successful professionals in your organization as the most significant, most important resource.  Also remember that you, in your early career days, were most likely given the chance to gain and develop skills that came into play as a successful entrepreneur.

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March 14, 2012 

Check out this interesting, colorful infographic from USBundles.com illustrating how social media sites make their piles of money.  To note, the ad-based revenue has been strong and is projected to continuing growing.

Infographic courtesy of USBundles.com

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March 13, 2012 

March Madness – Fiscal Year End

In countries such as the UK(April 5^th), Canada, India and Japan, many businesses are tied to their own Federal government fiscal year end of March 31^st.  In the US, the fiscal year end is September 30^th (so you have some time to plan here).  Whether you rely on government services and resources, or if you are a supplier or contractor to government, these fiscal boundaries can have significant impacts on your operations.

Most government agencies have financial mechanisms in place to only allow goods and services to be acquired and received in the fiscal year that the resources occur in.  

This means any delay in services or goods through the fiscal year must then be concentrated in the last quarter, and most likely the last month of the government fiscal – September or March in cases of the countries listed above.  Marching madly into March madness would be an understatement.

March Madness – Relying on Government Services & Resources

The first suggestion if you rely on government services and resources, would be to avoid delays and proceed early on in the fiscal year… don’t wait until March or fiscal year end. Government programs such as business contribution and grant programs have money dedicated to fiscal years, and must provide these amounts to the recipients before fiscal year end.  The trickle effect is that the end eligible recipient must also acquire the business goods and services within the fiscal year boundaries to be within the conditions of the grant and contribution agreement.

If you are a legal recipient of a government service or financial resource, work with your government agency early on in the fiscal year to activate agreements, to enable you to implement your project and spend the money in an adequate time frame.  This will allow you to plan and manage your project around any wrinkles that may occur.  Reporting back on fiscal year activities and spending is critically important to government agencies.

March Madness – Supplier or Contractor to Government

As we all know, government programs and procedures are ripe with problems, and public servants are left scrambling to implement poorly designed public programs.  With poorly designed programs, weak procedures around the government procurement of good and services raise their ugly heads.  These challenges in government agencies give way to significant deviation is budgetary spending.  Some government departments are left scrambling to spend at fiscal year end instead of reporting back that less than the budgeted was spent.

Suppliers and contractors experience an extreme high volume of requests for goods and services at fiscal year end.  In addition to this, the public service demands cost effective and timely services from lists of pre-approved suppliers and contractors.  Those contractors who know the system have adapted to this March madness and will be geared up to adequately supply government with their needs.

March Madness Example

In one example, a small business supplier was asked to fulfill 400 office furniture requests to fully outfit 400 offices, within the last week of the fiscal, across many Federal government branches.  This constituted 60% of the small firm’s annual business.  You can imagine the logistics behind 400 purchase orders, the staff, transportation, etc… all to be delivered to and received by government by March 31^st at11:59pm at the latest.

Helpful hints to Alleviate March Madness Pressures

• Work early on in the fiscal year and integrate operations around the fiscal year end boundaries
• Be part of the solution and offer suggestions to improving government year end procedures
• Be a specialist in procurement (firms actually train government agents on streamlined procurement procedures, as government has a higher turn-over rate of employees)

Fiscal year end deadlines are quickly approaching for some countries; US firms take note (you have half of a year to jump on it).

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© 2012 Strategy Plan One

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March 12, 2012 

IRS Fresh Start Initiatives Expanded

In blogging about more tax tips we decided to highlight some key points to today’s Internal Revenue Service’s (IRS) latest bulletin.  For taxpayers who have a balance of taxes owing and are finding it difficult to keep up, today’s note expands on the IRS’ Fresh Start Program.  

Here are the 3 key areas:

1. Penalty Relief – provides some relief for taxpayers from failure-to-pay penalties, essentially giving the taxpayer a six month extension to pay taxes
2. Instalment payments – for taxpayers who cannot pay all the balance owing,IRS allows negotiated instalment payments, with new maximum limits of $50,000 and extended time frames to six years to pay off tax debt
3. Offer in compromise – an agreement between a taxpayer and theIRS that settles the taxpayer’s tax liabilities for less than the full amount owed

For more detailed information on the above initiative, you should review the IRS link at http://www.irs.gov/newsroom/article/0,,id=255470,00.htm.  You will need to check in, contact and apply to the IRS for some of these initiatives.

Helpful Tax Tips

Here are some addition tax preparation and filing tips and information:

• Get organized – ensure you have the proper documentation and forms for your tax return
• Pay attention to deadlines; April 17^th is an important date
• Take advantage of tax deductions and incentives such as incentives around volunteering, donations, and charitable gifts
• Take advantage of tax exemptions on dependents
• Investigate and claim for the tax benefits for caring for parents
• This is the last year to claim the American Opportunity Tax Credit – be sure to claim this
• New form 1099-K – make sure you use this to report online income, payments received by credit cards, and other platforms such as PayPal.
• If you will be receiving a tax refund, spend it wisely, starting with paying down the most expensive debt with the highest interest rate charges

Deadlines to file are approaching, with over 1 month to go.  Check out the IRS website for up to date information, forms and information on preparation and filing.

Strategy Plan One

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Business information, resources and tips for the entrepreneur

© 2012 Strategy Plan One