The New Landscape in Business
With the uncertain times in American businesses, many people who have lost their jobs or are considering bailing before the ship actually sinks, more and more inquiries are being made via the Small Business Administration (SBA) from those wishing to strike out on their own.
It seems a little overwhelming, but it’s actually easier to navigate once you decide to not let fear become the basis of all you future choices.
The SBA defines a small business as one who employees 500 people or less. On average, most small businesses employee seven people. The first question, after one has made the decision to go into business for himself, is what will the government require regarding employee protection of anyone added to the payroll?
Age Discrimination Act - Applicable to those small businesses who employ 15 or more
Americans with Disabilities Act - Applicable to companies with25 or more employees
Civil Rights Act of 1964 - Applies to companies with 15 or more
Family Medical Act (FMLA) - Applies to small businesses with 50 or more employees
COBRA - Applicable to small businesses with 20 or more employees
Keep in mind, however, some state laws demand small businesses, regardless of size, comply with these federal guidelines. You will need to check with the state you reside in for any overriding laws.
You have your solid business plan, now what? Employee benefits, of course. After all, you will want to retain the talent you’ve sweet talked and promised the moon to in your efforts to woo them to your side, right? Because you really have no “assets” yet (unless you’re independently wealthy, of course), your offerings may be nothing more than a company cookout once a month. That cookout consisting of the spouse at the helm of the grill in the backyard, entertainment in the form of “Greatest Hits from the 80s” on the cd player (which, by the way is quite attractive - I’d consider working for someone with great taste in music) and cold beer instead of an open bar for liquid refreshments (again…quite attractive - I’d rather drink a cold beer than some cocktail that’s has more embellishments than Janet Dickerson). As tempting as that is for most people, they still would like a little something more. You can’t offer company benefits yet, but with your solid business plan, you realistically see that within the first year. How about a 401(k) plan? That’s relatively inexpensive to set up and provided you can attract potential employees with the contributions being solely up to them at first, you could offer a company match after the first year or so. Believe it or not, with the economy the way it is, that is something that’s quite tempting. Add to the fact that this may be the most honest statement many have heard from any employer in the past two years, many will jump on this. People are tired of feeling betrayed by their employers.
Also, the failure or success of your company can often rest on your business choices. One vital element that must be in place is your professional team. This is as important as choosing your employees and mustn’t be decided on a whim or on the advice of the hubby’s Aunt Doris who has used the same insurance agent since the 1940s.
Bank - You want to know the bank has enough faith in you as you do.
Accountant - Vital in ensuring you cover the bases in taxes - both company and employee as well as guiding you in everything financial.
Attorney - Again, vital for contracts with vendors, property purchases to build your company and other matters to protect you, your family and your investment. You attorney also will sound the alarm anytime something isn’t on the up and up whether it’s the perfect location whose current owner is a bit hinky to when you’re making plans to promote your company. Nothing worse than an advertising campaign that’s full of potential lawsuits. Your lawyer has a radar that can see the potential legal problems a mile away.
SBA - Yes, they are on the same team as you. Your success is the primary reason of its existence.
So, you see, even if the economy is screaming “RUN RUN RUN”, you can slow it down a bit, find the faith in your own abilities and run straight to a new success built on all that you are and what you can offer in the business world.


