Small-business Advice: Tackling Tricky Hiring Issues

One of the best parts of building a company is hiring great people so that your business can benefit from their skills, their ideas and their enthusiasm.

But as Merrin Muxlow has pointed out over at the Resource Nation blog, recruiting new employees involves a host of tricky legal and ethical issues, including background checks and employment law compliance.

Maxlow makes useful recommendations about getting an applicant’s consent before running a background check, being careful about accessing an applicant’s social media profiles, knowing all the applicable anti-discrimination laws (federalstate and local) that apply to hiring procedures, and taking the time to verify necessary licenses, credentials and employment eligibility. Maxlow suggests that E-Verify can prove useful for this last task.

Need more advice before bringing a new hire on board? Guidestar published an article earlier this year that contains lots of good advice on avoiding common hiring pitfalls. For instance, Guidestar notes that it’s vital to properly define the position you’re trying to fill before seeking candidates. If you’re too ambitious in defining the scope of the position, you may have trouble finding applicants who contain all the skills and competencies you’re requiring. Guidestar advises being realistic in defining the position and making sure that you budget a salary sufficient to attract the caliber of employee you’re seeking.

Like the article in Resource Nation, Guidestar emphasizes the importance of checking references and not rushing the hiring decision. That doesn’t mean that you should dawdle either. Instead, create a timetable and then stick to it. Proceed at a deliberate pace while acting with consideration toward the candidates and trying to envision the process from their perspective.

If all these seems awfully challenging, you might enjoy Will Helmlinger’s look at hiring “Pitfalls and Pratfalls” on Inc.com’s website. Helmlinger has some great advice in this story, including a suggestion that the hiring manager should let candidates do most of the talking during the interview process and to avoid misinterpreting what candidates say.

For instance, Helmlinger offers the hypothetical scenario in which a hiring manager asks if an applicant is willing to work overtime. If the applicant says “Yes,” the hiring manager may assume the applicant is willing to regularly burn the midnight oil. But Helmlinger notes that the hiring manager has no grounds to jump to that conclusion without first asking how often and how long the applicant might expect or be available to work beyond regular hours.

Phew! That’s a lot for an employer to remember. But investing some time and effort upfront in finding and vetting the right person for the job will prove invaluable to building a stable, loyal and enthusiastic team of employees all pulling together to help build your business.

How do you handle tricky hiring tasks? Do you perform background checks yourself or outsource the procedures? How do you ensure your company doesn’t run afoul of anti-discrimination hiring rules?

Small-business Expert Interview: Joel Dubinski, Head of SMB Sales at InterCall

DollarDays Blog is pleased to present the small business expertise of Joel Dubinski, Head of SMB Sales at InterCall, a company that offers conference call solutions for businesses, including audio conferencing, web conferencing, and video conferencing.

DollarDays Blog (DDB): Please provide a brief bio and description of your company.

Joel Dubinski: I drive InterCall’s growing small- [and] medium-sized business presence while maintaining its emphasis on [our] customers’ needs and quality of service. I oversee a team of inbound sales representatives responsible for InterCall’s online sales while also managing multiple teams that are solving the collaboration gaps of InterCall’s small- [to] medium-sized business. During my time at InterCall, I helped form a strategic partnership with Huddle, creating the world’s first unified collaboration, communication and social networking platform.

InterCall is the trusted advisor to the small- to medium-sized business owner. Our company specializes in providing a variety of toll-free audio, web and video conferencing solutions, facilitating thousands of meetings each day. Our investment in the latest technology and bridging systems enable[s] our clients to enjoy the highest level of quality and service from each and every conference call and web conference.

DDB: What is web conferencing, and how can small businesses benefit from using it to run more effective, efficient meetings?

Dubinski: Web conferencing is an essential tool for small businesses. It allows them to reach a larger customer base without increasing their overhead costs. Web conferencing can demonstrate to their audience that they are in tune with advancements in technology and are willing to use something new and innovative to increase their productivity. With the use of web conferencing, a small business can shorten their business cycle, which will lead to an overall stronger output in sales, growth and reach.

DDB: How can Web conferencing help SMBs project the image of successful, stable companies?

Dubinski: Many SMBs are startups in every sense of the word. SMB owners may be working on a shoestring budget or even working from home, all the while trying to do the best they can to generate a perception of an established business so they can compete with larger companies. A professional-looking and [professional]-sounding Web conferencing service conveys the perception of professionalism and an established business. Instead of using a sometimes-unreliable home phone, landline or mobile phone to conference multiple parties in and possibly incur static or lost connections, a Web conferencing service ensures clear, effective and efficient conference calls every time. Calls can be recorded, many parties can dial in, and video conferencing can easily be added to enhance meetings.

DDB: What are some of the lessons that InterCall has learned from providing conferencing services to small businesses over the past 15 years?

Dubinski: Personally, I have learned that some business needs do not change. Regardless of how big or small a business is, people will constantly be looking for better ways to communicate and collaborate. InterCall is unique because our mission is to help provide conferencing and collaboration services to all businesses to help them communicate more efficiently and effectively regardless of size. It is also true that although a business may start as what is labeled “SMB,” it has the potential to grow into a larger enterprise company. InterCall wants to be there every step of the way and help them achieve their success.

DDB: Are there any new, exciting developments coming down the pipeline that SMBs should know about in the Web conferencing market?

Dubinski: As Web conferencing becomes more and more evolved, the ways to communicate change—the addition of VOIP and audio broadcasting to Web conferencing solutions are becoming more popular, as are virtual webinars. As Web conferencing is becoming more and more commoditized, these enhancements will help different providers differentiate themselves.

DDB: How can SMBs choose a Web conferencing provider? What should they look for, and what questions should they ask?

Dubinski: As SMBs start to choose a Web conferencing provider, there are a few things they should be looking for. First, does the company have multiple options for Web conferencing solutions? You do not want to be pigeonholed into one platform if your needs change and evolve. Secondly, SMBs should be looking to make sure that their Web provider has a strong integration with audio conferencing, as these services complement each other. Finally, one should make sure the company is putting money back into its own products [and] services for enhancements and R&D, like InterCall does.

In regards to functionality, SMBs should be asking the following:

  1. Is it easy to use?
  2. Is there a low barrier to entry?
  3. Is it a scalable product?
  4. Is this for small collaboration groups, large webinars or both?
  5. Does it have the “core features” that almost all platforms have (Aaudio integration, app/desktop sharing, presentation uploads, chat capability, email integration)?

Those are some of the basic inquires I would be asking if I were purchasing a Web conferencing solution.

Does your company use a Web conferencing or teleconferencing product to communicate with customers, colleagues or vendors?

Small-business Expert Interview: Mark Stevens, CEO of MSCO

DollarDays Blog is pleased to share the small business expertise of Mark Stevens, CEO of MSCO, sales columnist for Entrepreneur.com and bestselling author of Your Marketing Sucks.

DollarDays Blog (DDB): Please summarize your business expertise in a nutshell.

Mark Stevens: My expertise is to identify and address what it takes for a business to grow and to move from one level of profitable revenues to the next.

DDB: Your bio indicates [t]hat you did not attend business school, but that you got your business education on the streets of Queens. What did you learn there that helped you to succeed in business?

Stevens: The streets provide a far more enriching education than Harvard Business School. They teach you to learn from people who may not look “polished” enough to help you, to expect the unexpected, to act when your back is against the wall, to be prepared for random acts of opportunity and challenge.

DDB: Please explain your idea that less is more when it comes to advertising.

Stevens: Find a single key point about your business or product—for example, Walmart has chosen “low price leader” as its single key point—then push the accelerator on that. Avoid the temptation to tell everything about your business. The key messages will be lost in [the] fog!

DDB: You’ve achieved considerable success with your book, “Your Marketing Sucks.” What are some of the key takeaways from the book?

Stevens: Throw out the traditional marketing playbook. It was written by professors who have never marketed [or] sold anything. Most important[ly], measure everything you do in terms of revenue generation, and stop all initiatives that don’t produce measurable results. ROI is king!

DDB: Lots of people might think that the title of your new book [“God is a Salesman”] is pretty cheeky. How could an omnipotent being, Creator of the Universe, be a salesman?

Stevens: He is not really, and I address that right upfront. But he teaches us the power of belief and faith, which are both critical for every businessperson.

DDB: What is the single most important thing that every small-business person should do and why?

Stevens: Make the decision to be a big business person. Small-business people work for themselves. Big-business people build a team to work for them… and to build their wealth.

What do you think of Mark Stevens’ advice? Is less really more when it comes to marketing?

Small-business Expert Interview: Adam Ishaeik, CEO of Hunter Wellman

DollarDays Blog is pleased to share the small business expertise of Adam Ishaeik, CEO of Hunter Wellman, a company that assists small businesses with acquiring federal contracts.

DollarDays Blog (DDB):Can you please provide some brief background on yourself and your company?

Adam Ishaeik: I have been involved with federal business development for six years. After my I received my MBA degree, I did a short stint with a large federal contractor and worked at the Department of State doing software release management, as well as proposal support tasks. I really enjoyed the business development aspects of the job. While developing small business subcontracting plans which outline how a large business will allocate work to the small business community, I realized there were a lot of small businesses that would benefit from having sales support in the Washington, D.C., area.

I broke off from the large contractor and started working with small-business vendors seeking to do business with the government. As my success as a consultant grew, I knew the best way to grow was to incorporate as a company, bring in as many agency experts as possible, and offer a full range of services to assist companies with their federal business development activities.

Thus, Hunter Wellman was born, and we are proud to announce [that] fiscal year 2009 was our best year to date.

DDB: How big is the opportunity out there to win federal contracts?

Ishaeik: The federal government is the biggest customer in the world, with a yearly budget of over $500 billion. I would say the opportunity is huge.

DDB: What kinds of businesses have a chance at winning these contracts? For instance, is federal contracting just for defense industry businesses?

Ishaeik: The government utilizes almost every type of service and product imaginable, from janitorial work to cutting edge information technology design. Every federal agency procures a wide array of services and products from the private sector. To get an idea if your service or product is in demand, simply go to www.fbo.gov and type your service or product into the search field.

DDB: What are some of the techniques and tactics that you recommend small businesses use to compete against much larger competitors in seeking federal contracts?

Ishaeik: The first item is to assess whether the federal government is a desired client. It is a labor intensive activity to break into this market; however, once entry is achieved, the company can rely on steady income as many contracts are up to five years in length.

Second, treat the government like you would any other client—with a lot more bureaucracy and red tape. The importance of building relationships with the users of your services and products, offering a unique product or service, providing competitive pricing, and all the other tried-and-true rules of effective business development all apply. The element that separates government contracting from the private sector is the existence of comprehensive rules and regulations outlined in the Federal Acquisition Regulation and the contracting offices that are set up for each agency and sub-agency engaged in private sector procurements to enforce these rules.

Third, identify agencies that procure your offerings and the program managers who represent the end users. It is critical to meet with these program managers to build trust and reduce the risk, in their mind, of sourcing their requirements to unknown entities. The best way to do this is to bring in a connected sales professional who can navigate you through these waters—competent ones run about $250K a year. If your sales budget does not accommodate this figure, contract with a company like Hunter Wellman to manage this activity for you—there are a lot of federal business development companies in the beltway, all with differing specialties that can assist your sales efforts.

Lastly, establish a contracting vehicle such as a GSA Schedule, a[n] SBA small-business certification that allows sole source procurements (i.e., 8a, HUBZONE, SDVOB) or any other MAS IDIQ (Multiple Award Schedule Indefinite Delivery/Indefinite Quantity). Having a federal contracting vehicle in hand will make your life a lot easier when dealing with the contracting officers. You can make a brilliant sale to a program manager, but when the purchase order is handed to the contracting officer and they have no vehicle to source your services, you run the risk of the program being publicly posted and attracting hundreds of competitors.

DDB: What are the opportunities for small businesses to partner with large companies to win government contracts?

Ishaeik: This is a great way to get started—partnering with a prime contractor. The opportunities are huge, but you have to bring something of value to the table. Relevant past performance is the most valuable thing you can bring. For example, if a large prime contractor is pursuing a contract with the Transportation Security Administration, the big company may seek small businesses that have experience at the agency to provide inside information and strong qualifications to their proposal. Another option is to present résumés of individuals at your small business who have experience at the targeted agency and offer their support with proposal development. If your small business pursues this option, make sure you get a legal review of the teaming and subcontractor agreements, or you run the risk of putting significant resources into helping the large company win the contract without any guaranteed work.

DDB: Finally, what is the single most important piece of advice you think small-business owners and executives need to know?

Ishaeik: Be patient, work smart, think positively and recognize the value that building relationships with government procurers can have for your business development units.

What do you think of Ishaeik’s advice? Have federal contracts been a valuable source of revenue for your small business? If not, does Ishaeik’s advice inspire you to try to capture a federal contract or partner with a larger company on work for the federal government?

Small-business Advice: Developing a “Free Soup” Strategy

Unless you have some sort of exclusive patent, chances are that your business competes on quality. This means that whether you run a dry-cleaning company, a restaurant, an office supply [store] or a gardening business, your customer has a number of choices [for] where to […] buy essentially the same product or service.

So how can you stand out from the pack? Obviously, you should stake your reputation on quality, friendly customer service, professionalism, good prices and so forth.

But in addition to all that, John Jantsch, author of the Duct Tape Marketing blog, believes you also need a “free soup strategy.”

For Jantsch, “free soup” is shorthand for an unexpected bonus that exceeds your customer’s expectations and leaves [him or] her not only satisfied, but so impressed that [he or] she raves about your business both online (email mes[s]ages, social [media] marketing sites, review forums) and offline (conversations with […] friends and family, casual recommendations to people who need a similar service).

In some cases, this unexpected bonus could literally be “free soup.” That’s what happened with Jantsch and his wife when they ate at a local restaurant and received a complimentary unexpected pint of soup to go along with their bill.

In the comments section of his post, some of Jantsch’s readers chimed in with examples of “free soup” strategies they use themselves or have experienced as customers—a house inspector who gives his customers a free re-inspection, a web design company that provides its customers with a bonus favicon as a surprise at the end of the project, a home décor company that gives soaps and candles to its clients.

Your “free soup” doesn’t need to be expensive or elaborate, but it should relate in some way to the products or service you provide. If you sell bicycles, maybe you could provide a free six-month maintenance offer that would have the added benefit of bringing your customers back to your store. If you do outdoor landscaping, you could give your clients a bonus potted plant for indoor use.

It’s also important to know the surprise factor in the “free soup” strategy. If you sell bicycles with a six-month maintenance offer bundled in, that might be an attractive offer, but it’s not exactly “free soup.” “Free soup” is giving the customer something unexpected after the purchase so that he or she feels a sense of satisfaction at getting what he or she has paid for and more.

What are some of the ways you go above and beyond expectations for your clients? Do “free soup” strategies impress you as a customer?

Small-business Advice: Traits of Great Leaders

What makes a great business leader, in your opinion? The ability to inspire passion and excitement among colleagues and employees? Amazing insights into what customers want and need? An uncanny ability to discard background noise and identify important trends in the marketplace?

Adam Toren at Entrepreneur.com polled his readers for their ideas on what makes a great leader and culled a top 10 list of leadership characteristics. His favorite was the one that a defined a leader as a person who “empowers his people to do their best by believing in them, guiding them and being an example.”

Other readers said an exceptional entrepreneur should lead, earn the respect of his [or her] team members, demonstrate flexibility and not be afraid to take risks.

Looking for some other ideas on leadership? Business Pundit has 12 quotes from Hall of Fame basketball player and coach John Wooden. A leader is “someone who can give correction without causing resentment,” [he says] and [adds,] “Failure is not fatal, but failure to change might be.”

Several business blogs, including Small Business Trends, are also buzzing over Susan Scott’s Fierce Leadership book. From the reviews, it sounds like Scott makes the case that leaders need to employ radical levels of honesty and transparency in dealing with their employees. In a brief interview on Amazon’s website, Scott notes, “If you want to become a great leader, you must gain the capacity to connect with your colleagues and customers at a deep level.”

Finally, in her Power Speaker blog, Suzanne Bates talks about leaders can use storytelling to share leadership lessons. Bates says that stories can be a great way to communicate such lessons—as long as leaders avoid telling stories that meander, are too vague or go on too long. The goal is to keep stories brief, clear and to the point. If you’re having trouble developing the story, Bates suggests telling the story outline to a friend or partner who can ask questions and help you clarify the most powerful leadership lessons.

What do you think are the essential characteristics of a great business leader? What are some other leadership skills you admire in others or try to cultivate in your own leadership role? What are some of your favorite business quotes? Have you used stories as a leadership tool or been in the audience when a speaker delivered a great leadership story?

Small-business Advice: Avoiding Common Website Mistakes

These days, pretty much every small-business owner knows the importance of having a functional website.

But, of course, not all business websites are created equal. Some are better than others—and, naturally, you want your company’s site to be among the best in its category.

You can go a long way toward creating a useful, functional and attractive business website simply by avoiding four common site errors that Lisa Barone identifies on the “Small Business Trends” blog:

  1. Bad design. Your site doesn’t have to look fancy, but it should look professional. Just as with the décor or signage for a brick-and-mortar store, you want to invest a little time and resources on your website to get good results.
  2. Lengthy conversion funnel. The “conversion funnel” is marketing-speak for the process your site visitors go through when they want to buy anything through your website. Barone is correct in saying that you want to make the purchase process as simple as possible. That’s why sites like Amazon pioneered one-click ordering for repeat customers.
  3. Strategy before design. Think before you build. What are the major goals that you want your site to accomplish? Just as you wouldn’t start building a house without having a blueprint and a plan, similarly, you should have some detailed website objectives and strategy in mind before you start creating your business website.
  4. Lack of dynamic content. Barone accurately points out that too many business websites have static content (address, phone number, basic information) that never changes. Your website gives you an opportunity to engage visitors and create some brand loyalty. Think of new material with which you can periodically update your site. If you run a restaurant, maybe you can post the weekly specials online or send out a recipe of the month to a list of email subscribers. If you have a pool supply company, you can create a blog with testimonials from satisfied customers, seasonal coupon codes, or information about the latest and greatest pool supplies and chemicals. The exact content and techniques will vary according to your specific business, but the point is to publish new content at regular intervals that brings visitors back to your site for repeat visits.

How did you overcome these problems in building your own small business website? What content do you use to attract customers to your website for repeat visits?

Small-business Advice: Creating a Happy, Fun & Functional Workplace

Drew Carey tells a joke about work that goes, “You hate your job? Why didn’t you say so? There’s a support group for that. It’s called ‘Everybody,’ and they meet at the bar.”

Of course, not everybody really hates their job. In fact, if you’re an entrepreneur or business owner, you might bound out of bed on a Monday morning, thrilled to start another exciting work week.

But Clint Greenleaf, author of the “By the Book” blog at Inc.com, [reminds] entrepreneurs […] their coworkers or employees may not share quite the same level of excitement and anticipation when the weekend comes to an end.

Greenleaf recommends Roxanne Emerich’s book, “Thank God It’s Monday!”, which he says makes the argument that creating a fun workplace is closely linked with having a successful business.

In essence, Greenleaf and Emerich suggest that if you and your coworkers [and/or] employees enjoy being at work, you’ll do a better job and therefore make your customers more satisfied.

Intuitively, this makes a lot of sense—and remember that keeping your employees and coworkers satisfied and engaged will probably have the added benefit of increasing their loyalty to the company, reducing turnover and making it easier to retain your most valuable team members.

Do you think creating a happy, fun workplace is important for business success? What are some strategies you’ve used to get people excited and energized about coming to work on Mondays?

Small-business Advice: What Do Your Customers Want?

Ken Burgin and Elizabeth Walker have an interesting article on the Business in General blog in which they argue that too many businesses make the mistake of focusing on what they would like to offer rather than what customers would like to buy.

So how do you figure out what customers want?

Ask them!

Burgin and Walker have some specific suggestions for matching your sales and marketing efforts to customer needs. For instance, they suggest writing down the questions your customers ask so that you can be sure to answer those questions in your marketing materials.

Another good suggestion is to probe beyond a customer’s questions to find the motivation behind the questions. The authors suggest you […] find out what your customer thinks constitutes good customer service before you start talking about how great your customer service is.

Successful businesses excel at identifying and meeting customers’ needs and wants. If you can take some of the guesswork out of the equation and determine exactly what your customers are seeking, you could be light years ahead of the competition.

How do you find out what your customers want? Do you have an inspiring (or cautionary) story about meeting (or misreading) market demand?

Small-business Advice: The Best Advertising You Can’t Buy

One of the hardest things for a small business can be just getting noticed. Giant corporations like Coca-Cola, Apple and Nike can spend millions of dollars advertising on the Super Bowl to a worldwide audience while you struggle to let people in your immediate community know about your products and services.

Hopefully, you have at least a small budget for some targeted advertising—perhaps via direct mail, online methods like Google AdWords or respected community newspapers.

But even if you’re trying to get noticed on a shoestring marketing budget, there’s one kind of advertising that won’t cost a penny but is worth its weight in gold.

We’re talking about word-of-mouth advertising—the kind of exposure you get when a customer has such a good experience with your products or services that [he or] she rushes right out to tell [his or] her friends, both in real life and in online social networks like TwitterFacebook and MySpace.

It’s hard to quantify and track word-of-mouth advertising. You can just look at clickthrough or response rates, although you can try to find out if new customers heard about you “from a friend.”

Meanwhile, business blogger Alan Yu points out that the best way to generate word-of-mouth buzz is simply to deliver excellent customer service and superior results.

Yu also notes that many of your customers and […] friends may assume that your business is doing fine and doesn’t need any extra help. Be sure to encourage people to spread the word if they like what you have to offer. Maybe you could even offer them some sort of discount or bonus if they refer a new customer.

Have you had success with word-of-mouth advertising? Or have you struggled to generate conversational buzz?