Business Record - Iowa Biz

Women Business Brokers on the Rise

The number of women business brokers is on the rise and has been steadily increasing for the past several years. According to business broker Marcie Woolworth of the International Business Brokers Association's (IBBA) Women's Forum, more women are starting to realize that the industry is exciting, but also offers perks such as flexible schedules and good incomes.

In fact, the IBBA, which represents about 2,000 business brokers worldwide, estimates that approximately 10 percent of their membership is female.

There are several steps that women interested in becoming new or better business brokers can take to ensure their own success. First, education is of the utmost importance. Women business brokers should take advantage of state and international associations. There are courses and classes available to gain certifications and increase credibility.

Equally important is a full understanding of financial statements and financing. Although women business brokers are making names for themselves in the financial world, maintaining credibility is extremely important. All business brokers also should continue to take advantage of networking opportunities whenever possible, but women business brokers have some distinct advantages in the field.

Intuitively, women tend to be very good at establishing trust and listening to clients' needs. These are very important aspects when brokering deals, especially when a business owner's spouse has influence on the decision-making. Emotions tend to run high when a deal is in the works, and women business brokers have proven to be very effective cushions between the buyer and seller.

- Steve Sink

What’s in your safety toolbox?

A safe work environment can not only affect productivity in the workplace, but it can also affect your workers compensation insurance.

Workers compensation premiums are derived from your annual payroll, employment classification and your experience eod (if your business has one). A good way to help control the costs of this insurance is by having a safe work environment.

While many insurance companies offer free safety videos and loss control services, there are also some free services available online. I came across a unique site at www.safety.blr.com.

This Web site has resources available that range from written safety tips and meeting outlines to Power Point presentations that you can download for free and use for your meetings. 

A common misconception is that safety meetings are only needed for construction industries, garages or manufacturing companies. However, injuries can occur in any workplace including an office and home-based businesses. Computer usage is becoming more prevalent in our everyday work environment and these types of injuries are on the rise:

• Slips, trips and falls
• Overuse injuries
• Back and neck strain
• Eye strain

Here are a few simple steps you can take to make your workplace safe:

Keep all electrical cords organized and out of walk areas

If you use a mouse – make sure it is positioned close to the keyboard

Invest in ergonomic chairs and keyboards

Make sure you have proper lighting and that your employees take their scheduled breaks

Sometimes little things can have the greatest impact in the workplace. A safer work environment can help you have fewer claims. And with fewer claims, you may be able to reduce your workers  compensation expenses.

So the next time you think about the safety of your workplace – think about the toolbox.

Law of a Traction

It's winter in Iowa. (Please, keep the cheers to a dull roar.)

We've had a whopping ton of snow. We've had arctic blasts. We've had wind-blown drifts. And we've had ice.

It sort of turns walking and driving into a) a new Olympic event; or b) entertainment (provided you're not the one on the ice).

Sometimes it's hard to gain traction on the slick surfaces, no matter how much testosterone your SUV is channeling.

Are your projects maintaining their traction as well? There are a few articles about project starts and stops.

According to the Standish Group, starting and stopping a project multiple times is one of the factors which leads to failure. In RUP, stops and starts go hand-in-hand with multiple bug fixes. The Theory of Constraints blog links multi-tasking as a cause of project starts and stops. Gav Thorpe relates this phenomenon to the project of writing a book (boy, do I understand that one!).

But how does one get (and keep) project traction on the slippery, wintry surfaces of organizations?

1. Leadership - the executives writing the checks need to ensure the resources stay dedicated and focused to the project at hand
2. Prioritization - have criteria in place to determine when or if a project should be shelved and what constitutes "more important work"
3. Communication - ensure all stakeholders know when and why a project or task has been stopped and why... and when/if it will be restarted
4. Opportunity Cost - understand what the stops and starts are costing the organization in terms of ramping up, learning curves, politics, et cetera

If you can keep your projects moving over the ice of competing demands, then you should maintain your traction through completion.

Carpe Factum!

Do You Serve ALL of Your Customers?

Image by Getty Images via Daylife

I've been working on an interesting project lately. This particular client has two distinctly different types of customers. The service delivery system has been built to serve one type of customer and that segment of their customer base is relatively satisfied. The other customer segment isn't so happy.

We often speak of customers in generic, generalized terms. We tend to think of "the customer" as if there is one profile that fits every person who walks through our door or calls us on the phone. The reality is that most companies have a plethora of customer types. Your customer base could be segmented into very different and distinct groups. Different customer segments can have vastly different expectations. While you can't please call the people all the time, it's important to know who your key customers are and what drives their expectations.

Sometimes, you discover untapped potential at your own doorstep. Callaway golf looked at their customer base and discovered that women make up only 20 percent of the North America market. They also discovered that their products and service was heavily focused on the male customer. They are working on a line of products "by women, for women" to address what they believe is a customer segment they have largely ignored.

What are the major customer types coming through your door? Which are you catering to? Which are you ignoring?

Taxes: one step over the (state) lines

Image via CrunchBase

It is an Amazon world.  Buying cheaply from distant vendors and selling to customers far away is important even to the smallest businesses.  Unfortunately, tapping markets in other states can easily ensnare you in other state tax systems.

States can impose income taxes on out-of-state businesses with activities that go beyond sales activities to generate orders to be approved out-of-state.  That can be an easy bar to clear.  A Council Bluffs contractor who crosses the river to do a project in Nebraska not only crosses the state line, but also the line that subjects him to the Nebraska income tax.  A salesman who also maintains an inventory in a state to fill orders there brings his employer into that state's income tax.

For sales tax, the bar is even lower.  Having a non-employee salesman in a state can subject all of your sales in that state to sales tax there, even if the activity does not meet the level that triggers income taxes there.

Being subject to income taxes isn't the end of the world.  If an individual pays taxes in another state, it may reduce home state taxes dollar for dollar; all states imposing an individual income tax provide a credit for taxes paid in other states.  Corporate taxpayers subject to taxes in other states may be able to take advantage of favorable tax rules in the home state, like Iowa's "single-factor" apportionment rules. 

Still, taxes in another state are a hassle.  The states all have their own rules for computing taxes, their own deadlines, and, often, their own unhelpful tax bureaucracy.  It's much less of a hassle, though, when you plan for it than when some state assesses you for five years of back taxes.

If you are doing a project across state lines, let your tax pro know.  When you put together your information for your 2009 business tax returns, be sure to put list out your sales, property and payroll by state.  Let your preparer know if you are renting business property out of state.  If you aren't sure whether you've done enough in another state to trigger tax there, go over things with your tax advisor.

Disconnect to de-stress

Stress seems to be a common consequence of today’s wired world. Even the thought of establishing the cliché work-life balance can cause migraines. When you add a BlackBerry and an inbox overflowing with e-mails, the distinction between professional and personal time often disappears.  

However, it isn’t technology that is causing the problem; it’s human behavior. Staying connected to the office is convenient, but being constantly connected is not healthy or productive. Just because you received an email at 10 p.m. doesn’t mean you should respond to it immediately.  

 

I recommend these steps to disconnect and take a much-needed break from the office: 

• Be firm about acceptable times to send and respond to email. 

• Silence the e-mail notification feature on your phone. 

• Manage e-mails by reading a message once, then file, flag, delete or replying. 

Do your best to use your weekends and vacations to completely unplug and recharge. Disconnecting is your opportunity to reduce stress and rebalance in preparation for your next great accomplishment. 

Customer service or marketing gimmick?

Holiday Inn announced a new customer service offering last week.  It's taken the traditional turn down service and ramped it up a bit. 

The hotel chain's new bed warming service consists of a staff member putting on a one-piece flannel sleeper suit and crawling into your bed...warming it for you with their body heat.

Yup...hotel employee, footie PJs and your bed. (read about the official announcement here)

I'm all for customer service excellence and believe that stellar employees are the ones who are willing to go way above and beyond for their customers...but this one seems a bit extreme.

I think the real question is -- is this a legitimate attempt at creating an amazing, buzz-worthy customer experience or is it a brilliant marketing gimmick.

When was the last time you read an article that coupled the phrases "Holiday Inn" and "customer service?"  Suddenly, they're all over the news (see a sampling of the articles below) and everyone is talking about how Holiday Inn is focusing on pampering their customers.

Pretty smart, either way.  If it's an attempt at extreme customer service -- they've clearly demonstrated that they're willing to go to new heights.  If it's about the media splash and marketing buzz -- they got it.

Either way -- it worked because they didn't go halfway.  They had the courage to go way out on a limb.  This is clearly a "be bold or go home" strategy. If they had begun offering a bed warming service that employed electric blankets or hot water bottles...do you think anyone would have even noticed?

What are you doing in your marketing that's as boring as an electric blanket?  Could you (metaphorically of course) put on your feetie pjs and shake things up?

~ Drew

Related articles by Zemanta

• Holiday Inn to Offer Human Bed Warmers (treehugger.com)
• Hotel to offer a human bed warming service (douglasgreen.wordpress.com)
• Cold sheets? Hire a human 'bed-warmer' (msnbc.msn.com)

Beware of the Latest Online Scams

Image via Wikipedia

Not Your Father's Online Scam

By now, everyone is familiar with the Nigerian scam. You receive an e-mail for an offer you cannot refuse. The sender alleges he or she is trustee of a large sum of unclaimed money. If you will agree to take the money into the United States, you will receive half the money (typically millions) for your trouble. After sending $200 for paperwork, $500 for bribes, $2000 for customs and $10,000 for lawyers you get the impression things are not quite as they seem. With so many pigeons now wise to the "419 grift," online scammers are constantly devising increasingly clever ways to part money from fools.

Online Dating

One of the hallmarks of a great scam is selecting a highly motivated victim. Online scammers use dating Web sites to target the lovelorn. Posting attractive pictures and telling sad stories of unforeseen financial difficulties, scammers bilk online daters out of money, gifts, credit card numbers and bank information. While from a distance these scams seem easy to spot, once the scammers masterfully weave an emotional connection, logical analysis flies out the window. Anytime you receive an online request for money, gifts or financial information, there is a high likelihood there is a scammer on the other end.

Employment Scam

Praying on the desperately unemployed, scammers post fake job opportunities, sometimes using the names of legitimate companies. The job opportunity is often a payroll clerk. The scam involves sending the victim a large check. The scammer requests the victim cash the check and send out smaller to checks to "employees" of the business. The scammers large check is fake, but the victims little checks are real. By the time the victim discovers the big check is fake, the "employees" have already disappeared with the victim's money.

Professional Scams

Doctors and lawyers are increasingly the target of scammers. Posing as information technology professionals or potential clients, international criminals extract sensitive personal information, garner financial information and install viruses on the victims' computers. The scams may be as simple as posing as someone in the victim's IT department and calling the receptionist to confirm his or her password works with the "new" system, or as complex as creating a fake multinational organization, complete with a pricey Web site and myriad references. Be wary of "spear phishing" scams buried within unsolicited emails. Never open attachments in an email from someone you do not know. Even if you do know the sender, scammers often "spoof" the name of the sender. 

Charity Scams

In the wake of any large disaster, scammers lie in wait for compassionate people willing to give. Criminals build elaborate Web sites emulating recognized charities. Through a barrage of spam emails, the scammers direct people to donate to the victims of the latest crisis. Beware of any unsolicited request for a charitable donation. When in doubt, donate to an established charity. You can even check the charity out online to determine what percentage of your donation actually gets to the people in need.

Government Scams

Impersonating governmental agencies to obtain your financial information is a successful scam simply because it is so brazen. What kind of a criminal would impersonate the IRS, the FBI or Homeland Security? Receiving an e-mail from one of these organizations often leaves the victim more worried about what they might have done, than whether the email contains malicious software. If you suspect the e-mail is not legitimate, do not reply, do not click on any links and do not call any phone numbers in the e-mail or open any attachments. Contact the government agent directly to confirm that the email is legitimate.  

Pop-up Advertisements

If you receive a pop-up advertisement for anti-virus software be wary. Such pop-up ads often appear to be scanning your hard drive in an attempt to get you to click on the ad.  Clicking on the ad however, can install harmful software, extract sensitive information or send the scammer a log of your keystrokes, which includes all of your usernames and passwords. The FBI has reported over $150 million in losses attributable to this scam alone. 

What to Do

If you suspect you have been scammed, or have received a solicitation you believe may be a scam, contact your information technology department immediately, providing all of the details you have. You may also file a complaint with the Internet Crime Complaint Center (IC3), a partnership between the FBI, the National White Collar Crime Center and the Bureau of Justice Assistance. Most importantly, be on the lookout for new scams. The most effective scam will always be the one that is new to you. 

Brett Trout

Entitlement Will Make Millennials Save

Millennials have been saddled with the term of being an entitled generation. One that expects to get something because of who they are not because of what they’ve done. Whether an accurate term or a misinterpreted exaggeration, this trait has been placed on them. Ironically, through the mist of this financial crisis, their sense of entitlement may actually be paying off.  This generation is looking at what they believed was promised to them and beginning to think they might not get it.

As discussed before, generational behavior results from the experience of said generation. Each generation reacts to problems they’ve encountered and attempts to fill those voids, or solve various societal ills. In the past decade, most research focused on the cultural, technological and political reactions of Millennials, but that was all before the financial crisis hit. Recently, there has been a run of articles that have researched millennial reaction to the economic crisis, and just like other major events it is having an affect on Millennials that may shape their long-term perspective.

Newsweek just published an article tackling this notion of “Generation Recession” and considering the long-term consequences such as making less, generation based class warfare, and a shift of talent from the private sector to the public sector.

A recent poll by the Knights of Columbus showed 55 percent of Millennials think their careers will be negatively impacted for the long-term by the current economic situation and are looking for free market rather than the government to handle the economic crisis.

A UK study suggests that timing might be everything. Discouraged workers tend to be affected more by financial crises when around the sensitive and professionally formative ages of 17 to 25. What happens during these periods tend to have a psychological impact that is long lasting.

A study commissioned by Microsoft also confirms this cynical view. Sixty-seven percent of those Millennials were wary of stocks, banks and investment firms due to the near-collapse of companies such as AIG and Citigroup. 

Coupled with this economic sensitivity and the generational sense to fix the problems seen as youth, makes Millennials apt to do something different. Millennials are already regarded as being a very scientific generation; looking for formulas that offer consistent solutions, willing to be collaborative, desiring positive experiences and outcomes. Last decade, we saw the emergence of how that played out in other fields; the rise of social media, everything “green," and the “Casual Professional”. It should be to no one’s surprise that the millennial generation is now reacting to the greatest financial event in three generations.

Recent research suggest that Millennials were more likely to pay off debt, had a savings goal and are not as interested in immediate luxuries.  Additionally, they are setting other financial goals and using the tools of their generation such as mobile apps from Mint.com, Wessabe.com and Pageonce.com for daily money management and budgeting.

Millennials are poised to earn less, but stay updated on their cash flow situations and save more than the previous generations. Just as the Silent Generation learned from the Great Depression and were able to enjoy the American Dream, The Millennial Generation may now be poised to do the same.

What is the Biggest Mistake Sales People Make?

I was asked at a networking event what is the most common mistake that sales people make?  That's an easy question to answer.  Most sales people don't follow any kind of framework or system.

Traffic Analogy

The lack of a sales framework or system is like driving to a destination without a map in a city that you don't know very well.  You may know generally where you are going such as "towards downtown," but you may not know when to go left or right.  You may drive in circles.  You may run into traffic or streets closed for construction.  You may get low on gas.  It takes much longer than it needs to and ultimately, you may never find your destination.

Having a sales framework or system is like driving with a GPS navigation system.  You know exactly how you are going to get where you are going and you know just about how long it will take.  It is easier to avoid traffic and streets closed for construction.  And if you should miss a turn, the navigation system will quickly reroute you and get you back on course.

Example

One of the biggest problems that sales people encounter by not following a system is "premature solution."  If a salesperson begins talking about solutions (i.e., products or services) to a prospect before they fully understand

• the scope of issues and opportunities their prospect may have
• the resources available to the prospect
• and their criteria and process for making a decision

then they suffer from "premature solution."

Symptoms of premature solution include:

• you have had one appointment with the prospect, but you can't get a follow up appointment scheduled
• after you have told them everything about your products or services, the prospect is not very forthcoming with the information you need to prepare a proposal
• their first response is that your solution is too expensive
• after giving the client a proposal they won't call you back
• they keep telling you they are almost ready to do something but won't move forward

The cure for premature solution is to develop a framework for conducting intelligent, productive conversations with prospects about their situation rather than "product demonstration" conversations.

Creating a framework or system for yourself can also cure or cut down on a lot of other issues that are preventing you from developing more business. 

How have mapping out your process improved your sales?

Photo on flicr by twenty questions

Avoiding Lawyers and Lawsuits - Waivers of Liability

Waivers are everywhere: the back of concert tickets, Web sites, sales agreements. As a business consumer, you may wish to make sure that you are willing to give up the stated rights. As a business owner, ask:

• From what are your protecting yourself?
• Is this a real danger?
• What is your goal?
• Do you run a PR risk by warning your clients that your product “may cause death” (especially if you sell coffee tables)?

This post addresses personal injury waivers: the kind you sign at batting cages and skating rinks.

 

My next post will address the types of waivers that are part of sales agreements and are found within websites for products..

 

The post that follows that will address Indemnification Agreements.

 

First, the easiest way to avoid lawsuits and judgments for personal injury is to be prudent in taking care of your business. Common sense safety is more cost effective than waivers.

-   Encourage employee common sense through a wellness program.

-   Have a plan to keep your employees and patrons safe.  

-   Talk with your insurer about risk analysis and risk reduction.

 

The Iowa Supreme Court addresses waivers in a number of cases:

Personal injury waivers must “be specific enough to identify all possible causes of injury so that a reasonable person is on notice.” A waiver that simply agrees that one party is not responsible for any injuries is not specific enough to waive all claims related to acts by that party¹. 

 

A waiver must be "voluntary", "intentional" and "knowing". The waiver must intentionally relinquishment a known right.”²  The court uses the standard of a reasonable person to determine whether a party had notice of the provisions in question and may be bound by terms within a contract/agreement.³

 

The parties must be clearly identified to be considered released parties.⁴

 

Once the release is clear in its intent, parties may be bound. Even if you (or your client) does not read the release, a party who is able to read and has the opportunity to do so must suffer the consequences of failing to do so.⁵

 

The more dangerous your business, the more likely you can set out the risk and put them in the hands of a person who assumes the risk. For example,“Hang gliding is associated with injuries and death.” If you run a shoe-shine stand, it is more difficult to set out the risks and pass them on to a client. (Then again, hopefully the shoe-shine isn't dangerous.) From a client perspective, you may have clients who wonder why they must sign a waiver that states that “death is a possible consequence” of their shoe shine. If you are leading  rock-climbing expedition, the client likely expects a waiver.

 

A well drafted waiver will:

• specifically set out the parties involved,
• address the type of danger,
• specifically waive the damages, if any,
• show that the waiver is voluntary, and
• provide clear language.

 

We will see how the Iowa Supreme Court handles the inevitable case about "throw in the kitchen sink waivers" written in three-point font. For amusement or consideration, the waiver below from an actual ticket. I used a magnifying glass to read it. Apparently a kids’ concert needed the following waiver:

“warning! Despite enhanced spectator shielding measures, pucks still may fly into the spectator area, serious injury can occur, stay alert at all times including during warm up and after play stops. If struck, immediately ask usher for directions to medical station. Holder voluntarily assumes all risks and danger incidental to the event for which the ticket is issue, whether occurring prior to, during or after the event, including, but not limited to, danger of being injured by thrown, batted, kicked, shot, struck, etc. objects such as balls bats hockey sticks pucks racquets and other objects or equipment or by other spectators or players or by entering a mosh pit. Holder voluntarily agrees that the management, facility, league, participants, participating clubs, Ticketmaster, and all of their respective agents, officers, directors, owners, and employees are expressly released by holder from any claims arising from such causes”

-   Christine Branstad

 

1. Sweeney v. City of Bettendorf, 762 N.W.2d 873, (Iowa 2009)

2. Benton v. Slater, 605 N.W.2d 3, (Iowa, 2000)

3. Joseph L. Wilmotte & Co. v. Rosenman Bros. 258 N.W.2d 317, (Iowa 1977)

4. Huber v. Hovey, 501 N.W.2d 53, (Iowa 1993) (plaintiff injured by fireworks misfiring into pit area of race track); Grabill v. Adams County Fair and Racing Association, 666 N.W.2d 592,( Iowa 2003) (plaintiff injured by detached wheel of race car flung into pit area of race track).

5. Forrester v. Aspen Athletic Clubs LLC, 766 N.W.2d 648, (Iowa App. 2009).

Five Whys to Leadership Challenges

Image by Pete Reed via Flickr

It seems like every time I turned around the last couple of weeks, someone was talking about the Five Whys technique - online, in print, in person.

Why? I took it as a sign that I was supposed to blog about it.

You've undoubtedly heard of Five Whys: the problem-solving technique developed by Toyota after World War II to improve its manufacturing process. Its goal: determine a root cause of a defect or problem. It's used a lot within Kaizen, Lean Manufacturing and Six Sigma.

My take? Leaders can also tap into this tool to improve their day-to-day problem solving. It's a great tool for anyone, any time there's a problem.

A common, easy to understand example looks like this:

1. My car will not start. (the problem)
2. Why? The battery is dead. (first why)
3. Why? The alternator is not functioning. (second why)
4. Why? The alternator belt has broken. (third why)
5. Why? The alternator was well beyond its useful service life and has never been replaced. (fourth why)
6. Why? I have not been maintaining my car according to the recommended service schedule. (fifth why, a root cause)

What does use of Five Whys look like real life, real time, for leaders? A terrific example is how Jeff Bezos used Five Whys in-the-moment after a safety incident during his annual walk-through at the Amazon.com fulfillment center. The story goes:

When Bezos heard about an associate injuring a finger on the line, Bezos walked to a white board and asked:

• Why did the associate damage his thumb?
• •  Because his thumb got caught in the conveyor.
• Why did his thumb get caught in the conveyor?
• •  Because he was chasing his bag, which was on a running conveyor.
• Why did he chase his bag?
• •  Because he placed his bag on the conveyor, but it then turned-on by surprise.
• Why was his bag on the conveyor?
• •  Because he used the conveyor as a table.

Likely root cause of the associate's injured thumb? He needed a table, didn't have one, so he used the conveyor as a table. Solution to the problem: provide tables along the line.

The technique certainly has its shortcomings. And valuable tips for overcoming them. But the benefits of this simple technique holds lots of promise for leaders for quick and easy problem solving. By using Five Whys on your own or with your work group, you'll:

• focus on root causes of problems rather than on blaming and finger pointing
• avoid assumptions and logic traps, and drill down through layers of abstraction to root causes
• keep your eye on the problem rather than on its symptoms
• quickly move to solving the problem rather than getting bogged down in over-analyzing it

How can you use the Five Whys today to become a better problem-solver, a more deliberate thinker, and a leader -- like Jeff Bezos -- who models a sense of urgency and a get-it-done attitude?