Monthly Archives: November 2014
3 Tips For Operating A Micro Business From Your Home
You’ve always had that knack for making jewelry, sewing one-of-a-kind creations and love to see your original pieces worn by people around the world. With sites like Etsy and eBay, your business can come to fruition and worldwide recognition and success is possible. With operating your micro business from your home, there are some things you’ll need to know in order to get everything to run smoothly and be successful. To help get you started, we summarized 3 tips below.
1. Check your local city laws.
Most importantly, you’ll need to check the micro business laws in your city and state. Find out what type of permits, if any, you need to operate your business from home, register your business, and determine the legal structure of your business. You will need to make sure your business is properly registered for state and local taxes and get a tax identification number, when applicable. Once you have legally organized your new business, you can get started on making the best out of your business from home.
2. Find inexpensive suppliers
Another way to get your micro business on track to success is to find inexpensive suppliers. We’re sure it can get pricey buying all the supplies you need for your jewelry: beads, wire, scissors, clips, etc. Choosing the ones you want, at the right price, can be tricky. We also know that many micro businesses may not qualify for wholesale supplier prices. This is why it’s a good idea to cut coupons and sign up for savings programs, so you can save every penny possible. Another option is to join group savings sites. These sites are generally free to join and bring you unexpected savings on products and services you buy and use every day. You’ll just need to find a discount site that provides the offers, supplies and discounts that your business needs.
3. Create a separate workspace
When you operate a business from your home, it’s a good idea to have a space dedicated to just work. When home life and work life collide, things can get messy. If you have an extra room or even just a corner of a room, think about designing it as a workspace. Make sure you pick an area where you will have peace and quiet to get work done. Next, you’ll want to fully equip your space with the furniture and supplies you need. A comfortable and stocked workspace will give your the environment you need to be creative, complete your work, and start bringing in a profit.
Beginning your own micro business from home is an exciting process where you’ll get to see your dreams truly come to life. By following these three tips as you start your business journey, you’ll be more prepared to hit the ground running, starting bringing in sales, and making your customers happy.
What is a Merchant Account?
With a majority of consumers owning and using credit cards, it’s more important than ever that your business accepts credit card payments. Businesses that accept credit card payments are more likely to produce higher sales and have extra opportunities to up-sell to customers. If you’re a business owner, you probably already know why accepting credit cards is essential to growing your business, but to do that, the first thing you need to do is open a merchant account via a credit card processing provider.
What is a merchant account?
Nearly every payment made online and in-person involves the transfer of funds to a merchant account, which is an account that you hold directly with a bank. A merchant account allows your business to accept credit cards, debit cards, gift cards and other forms of electronic payment. Your merchant account is basically an online bank account that will temporarily hold your money until it is moved into your business bank account after a successful sale. Think of your merchant account as a temporary holding tank for your money while payments are being processed, and your regular business checking account is the place where you withdraw funds and deposit checks.
What does a credit card processor do?
When you process a credit card transaction through a merchant service provider, the processor acts as a middleman between you and your customer’s credit card company. When you swipe your customer’s credit card through the point-of-sale system, the processor sends the transaction to the customer’s issuing bank for it to be approved or declined. Most of the time, the transaction gets approved, and the money from the transaction is deposited into your merchant account.
In general, you won’t be able to access the money in your merchant account immediately. Instead, the money will be held for a short amount of time until your credit card processor decides to release it to you via direct deposit into your business account. A majority of credit card processing providers will send you a merchant account statement every month explaining the totals of your transactions, the types of cards used by customers and the total cost in fees that you paid for the credit card processing service.
Why should I use a merchant account? Are there other options?
Having a merchant account is one of the most cost-effective and safest ways of accepting credit card payments. With most merchant accounts, you can expect the money to be deposited into your bank account within one to two days. Third-party processors can take up to seven days to deposit the funds in your account, and this delay in receiving payment can be problematic for many businesses.
If you sell online, having a merchant account means that your customers won’t have to leave your website and go to a third-party site to make a purchase. Additionally, when they complete the purchase, your business name will show up on their bill. When you use a third-party provider, customers will be sent off your site to another site to complete their transaction. This can make customers uncomfortable because they no longer feel as if their transaction is secure. Third-party processors are a good option for people who are just starting out, but if your goal is to expand and run a successful business, you’re better off opening a merchant account.
By offering credit card processing, you’ll no longer have to turn customers away because they don’t have cash on them, and you’ll never have to worry about losing a sale.
3 Simple Ways to Reduce Employee Stress
As a business owner, you’re used to dealing with high stress levels, but the same can’t be said for your employees. Although your employees aren’t dealing with the same stress as you are, they still deal with stress on a daily basis. When your employees’ stress builds up, your team will become less productive and emotionally disconnected from their work.
There are a number of things your employees can do for themselves to reduce their stress levels at work such as get more sleep, think positively, and keep organized, but as an employer, you can (and should) help out, too. Your employees are the most important investment in your business, and it’s important that you treat them that way. If they’re too stressed out to give it their all at work, it’s ultimately your company that will suffer. Plus, there’s nothing fun or exciting about stressed out employees.
So what can you do to help keep your employees from being stressed out at work? Here are a few ideas:
Talk to your employees
Employees often feel separated and disconnected from their bosses, and even a simple conversation with their boss can cause added stress. Concerns over upcoming changes, the state of the company and unknown expectations can cause a great amount of stress. Don’t keep your employees in the dark about what goes on within the company, and don’t be afraid to take some time to have a casual conversation with them. Ask them how they’re doing, communicate what you expect of them, and let your employees know what’s ahead for the company. You don’t need to be their best friend, but taking the time to get to know your employees can greatly reduce stress in the workplace.
Beautify your office
Stacked boxes, piles of paper and harsh lighting all make for subtle stressors. You may not think that having a visually appealing office matters to your employees, but there’s a good chance that it does. Offices that feel cold and stuffy usually make employees feel stressed out and less productive. Invest in comfortable office furniture, bring in a few plants and even integrate a little bit of aromatherapy. All of these things are simple ways to make the office feel more like home, and they’re great ways to help reduce stress among your employees.
Give your employees a space to relax
There’s a common misconception that relaxed work environments lower productivity. However, the opposite is usually true. A relaxed workplace can benefit both you as a business owner and your employees by increasing job satisfaction and reducing stress. Giving your employees a way to unwind when things get overwhelming is a great way to reduce stress around the office. Consider changing the function of your break room by adding beanbag chairs and TVs or use an empty area to create a social space for employees to hang out and collaborate. You’ll benefit from having more relaxed employees, and your employees will appreciate that you gave them a space to unwind.
The Dangers of a Messy Desk: 4 Tips for Keeping Your Desk More Organized
Is the surface of your desk hidden under a pile of papers? Is your computer monitor framed with layers of sticky notes? Do you have trouble remembering where you put that important website proposal? If so, you’re not alone. However, it’s important to realize that a messy desk is impacting your work life more than you realize. A cluttered desk can reduce productivity, cause you to lose important documents and can even start to bother your coworkers. In a study by Addeco, 57% of people have judged a coworker based on the state of his or her workspace. Even if your messy desk doesn’t bother you, there’s a good chance that it bothers the people around you.
The good news is that getting back on track requires only a little bit of planning and commitment. If you’ve let the clutter on your desk get out of hand, it might be time for some early spring cleaning. Whether you’re in a cubicle or the c-suite, here are a few tips to help you re-organize your desk and the area around it:
Set a weekly appointment to clean
Set aside some time every week to clean your desk. It’s important that you stay on top of the clutter consistently so that it doesn’t accumulate over time and become too much to handle at one time. Set a recurring reminder on your calendar every week to tidy up your workspace. You’ll only need to spend about 15 minutes every week for cleaning if you keep up with your schedule. During this time, throw out any trash or items that you no longer need, gather personal items that you need to take home, and file loose paperwork that’s been sitting on your desk.
Be mindful of your piles
Many people see piles as an effective method of organization; however, making piles on your desk rarely reduces clutter. Be mindful of how many piles you have on your desk and how many items go into each pile. This tip is also helpful for organizing other items such as office supplies and books. Instead of letting things overflow into a new space, establish specific zones for all of your items. Give everything a place, and then set limits on the amount of items that can go into each space. For example, once you’ve filled up your bookshelf, bring one book home for every new book you add – instead of letting the books pile into another area of your desk.
Don’t use the top of your desk as storage space
As a rule of thumb, flat surfaces should be kept clear and all you should have on your desk are the items you use frequently and need immediately. The boxes of pens, staplers, and stacks of papers need to be put away in drawers and filing cabinets. You can reduce the clutter on your desk by only keeping the essentials on the top of your desk such as your computer, keyboard, phone, writing utensil holder, notebook, drinking cup, and one personal item. Additional office supplies should be placed in designated spaces inside of your desk and loose papers should be filed away.
Organize the area around your desk
Organization shouldn’t be restricted to the top of your desk. It’s equally important for you to organize the area around your desk as well. Cleaning the floor around your desk will instantly lighten up the feel of your desk space. Items such as gym bags, purses, outerwear and extra shoes can quickly overwhelm your desk and make it look chaotic. If possible, hang hooks in your office to get coats, bags, and umbrellas off the floor. If this isn’t an option, see if there’s another space in the office where you can put all of these items such as a drawer or shelf.
Collection Agency vs. Collection Attorney: Which Should You Choose?
As a business owner, you’re ultimately responsible for managing the money coming into your company. If you’re in a field where you’re unable to collect payment in full, when the product or service is rendered, you likely have experience with clients not paying their bills on time. When a client doesn’t pay on time, you have several options: handle it yourself by sending out letters, turn the account over to a collection agency or turn it over to a collection attorney.
Many businesses forgo trying to handle collections themselves since the process is often daunting and there are many different rules and regulations that need to be followed. That leaves you to choose between using a collection agency and a collection attorney. Collection agencies and attorneys both have negative stigmas attached to them, but the truth is that using a collection agency or attorney can help you recover money faster so you can continue to grow your business. Here’s a breakdown of collection agencies vs. collection attorneys:
Debt collection agencies
Debt collection agencies are often the obvious choice for businesses that are looking to collect debt from clients. Debt collection agencies are aided by specialized phone systems, computers and software that help automate the process and make it more cost-effective and efficient in retrieving payments on delinquent accounts.
A majority of debt collection agencies in the United States work on a contingency, third party basis, so they are paid when they collect on debts that are owed to a company. There are many different business types that use debt collection agencies including doctors, hospitals, banks, auto lenders, utility companies and more. Most debt collection agencies collect debts for a fee or percentage of the total amount owed.
Collection attorneys
In addition to debt collection agencies, there are also lawyers who specialize in debt collection. Attorneys can be more cost-effective than a collection agency if you’re considering taking legal action against a client for not paying. A collection attorney may charge an hourly fee, collect at least one-third of the amount recovered or both. Attorneys usually charge a minimum fee or require that the debt meets a certain minimum requirement. Payment to a collection attorney doesn’t include any court-related fees connected with a lawsuit. If you’re not considering taking your client to court, you’re better off using a debt collection agency.
The main difference between collection agencies and attorneys is that a collection agency cannot sue a client. They are able to file a credit report, call you on the phone and write you letters, but in order to take legal action, they need to have an attorney do it. The Fair Debt Collection Practices Act (FDCPA) prevents collection agencies from pretending they are attorneys or acting as if they have attorneys on staff when they do not.
Most businesses go to a debt collection agency first and then turn to a collection attorney if they agency can’t handle the job. Regardless of whether you choose to use a collection agency or attorney, it’s important that you do your research first. Ask for a client list, try meeting with the owner or manager and ask any questions you may have before you turn over the debt.
When Should Your Small Business Outsource Payroll?
If you’re a small- to mid-sized business owner, you know the frustration of spending more time than necessary on non-revenue generating activities. From human resources (HR) management to benefits administration, your HR department may find that they’re spending a significant portion of their day engaged in these necessary yet time-consuming tasks. For many businesses in this situation, the answer is to outsource part or all of their HR functions to a trusted third-party provider in order to spend more time focusing on the core of their business.
Some of the biggest reasons that businesses choose to outsource their payroll and HR are:
- Access to skills and knowledge,
- The ability to gain better support than they would receive from an in-house staff and
- Payroll cost savings.
Questions to Ask Before Outsourcing Your Payroll
But when does it make sense for you to outsource your payroll? Before making this decision, there are a few questions to ask yourself:
On average, businesses that have fewer than 50 employees rarely have an in-house HR staff. Instead, they may have a manager or director who dabbles in HR because they have some relevant experience or because they’re the only one who is available to take on those roles and responsibilities. Organizations who have more than 50 employees will often find it easier to have an in-house HR department. Although they may still require some outsourced HR support, they’re likely to keep most of the responsibilities in-house. On the other hand, businesses with fewer employees may find it easier to outsource their HR responsibilities, especially when it comes to dealing with payroll.
How Many Employees Does Your Company Have?
On average, businesses that have fewer than 50 employees rarely have an in-house HR staff. Instead, they may have a manager or director who handles basic HR tasks because they have some relevant experience or because they’re the only one who is available to take on those roles and responsibilities. Larger organizations who have more than 50 employees will often find it easier to have an in-house HR department. Although they may still require some outsourced HR support for specialized needs, they’re likely to keep most of the responsibilities in-house. On the other hand, businesses with fewer employees may find it easier to outsource their HR responsibilities, especially when it comes to dealing with payroll. Payroll outsourcing saves time, reduces compliance risks, and ensures accuracy.
What Services Do You Need?
If you’re thinking about outsourcing some or all of your HR department’s functions, it’s important to establish what services you’re looking for. Payroll outsourcing is one of the most common HR functions for businesses to outsource – regardless of if they have an in-house HR department. Payroll is one of the most important functions of any business, but it is often the most time-consuming and tedious. Many third-party payroll service vendors also offer additional services including time and attendance, benefits administration and talent management. It’s important that you take the time to identify your business’s priorities so you can find a payroll vendor that meets your needs.
How Much are You Looking to Spend?
Although cost shouldn’t be the determining factor when choosing a provider to handle your payroll or HR management, it’s still important that you figure out how much you’re willing to spend. Every company has a budget for different areas of their business, and HR and payroll is no different. When looking for an HR or payroll provider, you need to understand their pricing structure and how the outsourced service is billed to ensure that it fits within your budget every month.
What Type of Service Provider are You Looking for?
Are you looking for a provider that can meet with you face-to-face, that understands the culture of your business and can act as your very own outsourced HR department? Or are you looking for an online vendor that can provide support by phone or email and has less personal service but might be less expensive? There’s no right or wrong answer when it comes to choosing an outsourced payroll service provider, and it’s really all about what you’re looking for and the level of support that you need. Some businesses value the cost savings and convenience of cloud-based payroll software, while others prefer the personal touch and strategic guidance of a dedicated local payroll provider.
When to Outsource Payroll
Deciding when to outsource payroll ultimately comes down to understanding your business needs, budget, and long-term goals. It’s not always easy making the decision to outsource your company’s HR department or payroll functions, but sometimes, it’s a necessary step in order to bring more focus back to your business. With Windfall, you get fast, easy, and accurate payroll solutions designed to meet the needs of small businesses at every stage.
What You Need to Know About Debt Collection Letters
One of the most important aspects to owning and running a business is getting paid for the products and services you deliver to your clients. Sometimes, you’re unable to receive payment in full from the client from the beginning, especially if you’re in the medical field. Not all clients are forthcoming with payment, requiring businesses to use collection letters in an attempt to recover the missing funds.
The collection process often proves to be difficult for many business owners. Managing delinquent accounts is a tedious and time-consuming process, and it can also take time trying to track down and contact customers. As a business owner, you need to collect the money that is owed to you, but appearing to be too aggressive can sometimes hurt your company’s reputation and can even lead to lost business. Here are some things to keep in mind when writing collections letters for your business.
Be proactive
One of the best ways to ensure that you get paid on time is to send a past due letter before an account even becomes a problem. The first letter should be sent shortly after the original payment was due, and it should inquire as to whether a problem exists in regards to making the payment. People are busy, and there’s a good chance that they simply forgot about making the payment. A nicely written letter can serve as a simple reminder for someone who forgot.
Increase directness over time
If you don’t receive a response after sending your first letter, it’s okay to increase the assertiveness of you message in future letters. This will help to create a greater sense of importance without sounding like you’re harassing your client. The goal is for the first letter to be polite and helpful and for subsequent letters to be more direct.
Comply with all laws
There are laws and regulations in place regarding how aggressive you can be when it comes to collecting debt from a customer. Although these laws are primarily designed for collections agencies, these guidelines are also helpful for anyone who is in the process of trying to collect past due invoices. Any interaction you have with a customer when trying to collect debt must comply with the Fair Debt Collection Practices Act.
Send a thank you note when the payment is received
The collections process can be frustrating for businesses and embarrassing for clients or patients. Sending a thank you letter after payment has been received can help repair some of the negative feelings and add a professional touch that can help restore your business’ image among your customers.
Utilize a collection agency
If you’ve sent numerous collection letters and still haven’t heard anything, utilizing a collection agency may be beneficial. A debt collection agency has experience in collecting debts from people and will be able to collect debts faster than if you do it on your own. It may also help to introduce a collection agency at the beginning. In this instance, the debt collection agency would take care of sending collection letters to your clients, and they would be responsible for collecting past due money while you focus on your business.
Regardless of whether you choose to outsource the debt collection process or do it in-house, it’s important that you remember to follow the laws surrounding debt collection. One of the easiest ways to tarnish your business’ reputation is to harass and abuse your clients during the collections process.
Questions to Ask When Choosing a Payroll Service Provider
More and more businesses are choosing to outsource their payroll services, and it’s not hard to understand why. Payroll is one of the most daunting and time-consuming tasks for any HR department, and it’s also one of the most popular responsibilities to outsource. Although the decision to switch from in-house payroll processing to an outsourced provider may be difficult, the benefits are worth it. When making the switch, it’s important to take the time to do your research in order to find the right provider for your needs. There’s no one-size-fits-all solution for businesses, and finding the right provider may take time.
So how do you go about finding the best payroll service for your business? Start by asking these 5 questions:
What services are included?
One of the first questions you should ask a payroll provider is about which services are included in the package. Many payroll providers offer a variety of services besides just payroll, such as benefits administration, employee self-service and talent management. Before signing a contract, it’s important to understand which services are provided and which ones are not covered.
Can I see a sample pay stub?
Not all businesses offer direct deposit, and even if you do, your employees will still have access to electronic pay stubs. Examining a sample pay stub will help you understand the ease of use from your employee’s perspective when it comes to their services. For example, if you receive a pay stub and can’t sort out the payments from deductions, you may want to consider another payroll provider.
Who can I contact if I have any questions?
Good customer service is essential for any payroll provider. You’re bound to have questions at some point, and when you do, it’s important that your questions are answered in a timely manner. Ask about their customer service department and who you would be speaking to if you had a question about your account.
Will I be assigned a payroll specialist, or will I talk to someone new each time?
This goes along with the question above. When you have questions concerning your payroll service, knowing whether you have an account representative assigned to your business could be useful if you’re trying to get your problems resolved quickly.
How is payroll delivered?
It’s important to know whether the checks will be printed and mailed to you or if your employees will be enrolled in direct deposit. You may have a preference to one, and if you do, make sure the company you choose offers that choice as an option. Also, find out if there are any charges attached to the delivery of your payroll. This will eliminate any surprises down the road.
Outsourcing your business’ payroll can be a great way to increase the productivity of your HR department and cut back on paperwork. It’s also a great way to ensure that you stay up-to-date on tax regulations. Outsourcing your payroll doesn’t have to be expensive, and it’s a valuable option for many small businesses.
5 Tips for Organizing Your Home Office
With the ever-changing office culture, more and more people are starting to work from the comfort of their own home. It’s easy to sit on the couch and work while watching TV, but it’s not always best for your productivity. Ideally, you want a separate room in the house that you can turn into an office space. Realistically, this isn’t always possible. If your makeshift office is cramped into the corner of your living room–or even if it’s not–you may struggle to keep your area organized.
Office organization isn’t always easy or fun, but it’s essential in order for you to remain productive and get work done. If you’re looking for ways to organize your home office, here are some tips:
Get an organizational system in place
Chances are your office space could be more functional if you had an organization system in place. Before you start to clean, figure out how you want to organize your space. There are a variety of ways you can organize your space including multi-level organizers for unsorted papers, a file rack for current projects or a filing cabinet.
Clean off your entire desk
If your desk is buried under stacks of papers, post-it notes and office supplies, you’ll want to start with a clean slate. Start by removing everything off of your desk except your computer, printer and phone. Then you’ll be able to go through all of the items that were on your desk in order to throw out the ones you don’t need and organize the ones you do need. Use the organizational system you created to sort through everything that was on your desk or in your drawers.
Organize your cables
Do you trip over a pile of wires and cables every time you walk into your office? Having cables and wires all over the place is not only a tripping hazard, but it can make your office more cluttered than it needs to be. To reduce the number of cables in your office, consider putting away any electronics that you don’t use or try to switch over to wireless devices such as a mouse, keyboard or printer. You can also bind your cables together with cable ties, clips or Velcro straps so they stay in one place and are out of your way. Keep your cables behind your desk or in a bin attached to the bottom of your desk where no one can trip over them.
Keep frequently used items close by
You’ll waste valuable time searching through the drawers of your desk every time you need a pen, sticky note or stapler. Keep your frequently used items close by, either in a container on top of your desk or organized into the top drawer. Consider keeping a bookshelf next to your desk if you have books that you reference often so you won’t have to go across the room to get them.
Organize your calendar and to-do lists
Think about how you keep track of your assignments, meetings and personal obligations. Are you someone who likes to keep track of this information digitally or do you prefer a hand-written calendar and to-do list? Find a system that you know you can stick with, and work on keeping everything in one place. If you prefer to go paperless, get rid of all of your paper to-do lists and connect the calendar on your computer to your phone. If you prefer to stick with a more classic system, consider using a memo board or dry erase calendar to keep track of all of your important events. Regardless of which system you prefer, it’s important that you keep it organized and updated.
There’s a common misconception that working from home is easier than working in an office, but it’s easy to get overwhelmed establishing and organizing your home office. The best way to remain productive and efficient is to organize your home office right from the start and to find what works for you.