So, you finally realize you need to hire someone and you place an ad and you interview and worry about your decision, check references, check backgrounds, maybe even take them on as a contractor for a ninety day trial period, and finally, you hire them! Yay!
And then…you forget to let them do their job. Or, even worse, you actively won’t let them do their job.
You might think this is unusual, but I see it all the time. A small business owner hires a smart, knowledgeable person, whom they need to help their business grow, and then they micromanage them to the point that the person becomes useless.
Want to know what happens next? The small business person becomes frustrated because this “guru” they hired is acting like a low level clerk. Plus, the guru is frustrated because of the boss sticking her nose in all the time, and pretty soon forgets how to think because all of her ideas or input are either questioned or ignored. Why should they think if the boss will do it for them? Sometimes, I’ve even seen it get to the point that the person is literally physically unable to send a freaking email without checking with the Big Boss Man first. Which then frustrates Big Boss Man (or Woman) because what the heck did he hire this person for, anyway??
Continue reading The Monster of Micromanaging
If you’re a small business owner who is just starting out, you’re probably doing everything. You’re making sales, you’re paying bills, heck, you’re probably taking out the trash and adding the copier paper. But, if you’re like me, and most of the people I know who’ve started a company, you don’t plan to be doing it all forever.
Ahhhh, there’s that word again: Plan.
What IS the Plan?
Now, maybe you don’t plan for your company to grow all that much, either for now or maybe even ever. No, really, sometimes, growth isn’t the goal. When I first started my consulting company I intentionally didn’t take on more clients than I could handle alone because I didn’t want the added stress of employees and all the rigamarole that comes with them. There were reasons for this: I was essentially a single mom from the time my daughter was six, and I had enough on my plate with raising my kiddo, taking care of my clients, and making sure they paid me. Growing the company wasn’t a goal, getting it solid so it could support just me was enough of a job. And I did just fine with the company staying just the way it was.
But now, I’m ready to take the company to a new level and I’ve had to basically sit down and tear apart all the systems I’ve had in place for the last thirteen years. Because while they worked just fine for me, they started breaking down once I started adding new employee’s, revenue streams, and clients.
Why? Because they weren’t Scalable.
Continue reading Scalability – Your Ticket To Freedom
A Limited Liability Company, a LLC, is a special kind of company. An LLC is a business structure allowed by state statute. Now, what the heck does that mean? It means that an LLC is allowed to exist because state legislatures have created laws to define and govern what an LLC is and how it is allowed to operate.
LLCs are very popular right now because they are similar to corporations in that the members of an LLC also have limited personal liability for the debts and actions of the LLC. Additionally, LLCs have the management flexibility of a partnership and the benefit of pass-through taxation.
In a corporation the owners are called shareholders. In an LLC, the owners are called members. Most states do not restrict who can be a member of an LLC and who cannot. Therefore, individuals, corporations, other LLCs, and even foreign entities may be members of an LLC. However, some states do have restrictions on who can be members, most do not allow banks, insurance companies or non-profits to be LLCs, and there are special rules for foreign LLCs, so you should always check with the state you live in and the IRS to be sure.
Continue reading What is an LLC?
We’re now on the second leg of our journey of deciding what “kind” of business should you be, and today it’s all about Corporations.
Okay, I want you to think about a corporation as if it is a “person”. A corporation is a legal entity all its own that has certain rights, responsibilities and privileges distinct from those of its shareholders. A corporation has to file a tax return (just like a person does), can enter into contracts, can bring litigation against other corporations, partnerships, or individuals, and can even be convicted in a court of law. Just as a person can die, a corporation can become insolvent and close.
There are a lot more requirements to form a corporation than there are to form a sole-proprietorship. Corporations are formed according to state laws and must file their Articles of Incorporation and Bylaws(the rules by which they will operate under) with the Secretary of State of the state which they are created in. Corporations are governed by a Board of Directors. Additionally, there are many filing fees both with the state and federal government.
Continue reading What is a “Corporation”?