Countdown: Skill #2-Critical Thinking

September 29, 2017 Stephen Fetters

In my original post in this series ( http://bit.ly/2v8mXJm ), I discussed the 10 critical skills you need to succeed in the chaotic job market of the next few years. Today, I would like to talk about the #2 skill, Critical Thinking.

Just What is Critical Thinking?

Critical thinking is one of “those terms.” It has risen to near the top of skills employers are now seeking. Go search for a good definition though, and what you get is a lot of big words and phrases difficult to decipher.

Here is a list of elements involved in Critical Thinking stated in simple English:

The ability to analyze the way you think.
A self-directed way of thinking using high standards of excellence.
A systematic, methodical approach to problem-solving.
The ability to think independently.
The ability to separate rational arguments from emotional ones.

Why is Critical Thinking Important to Me?

You are a Freelancer. You hire yourself out to clients and companies to work on various types of projects. Robots and software technology are replacing people at ever-increasing rates. What is the one skill technology doesn’t have? Human judgment.

This is where critical thinking comes in. Good critical thinking skills give you the ability to:

Identify a bad or false argument.
Build and present good arguments.
Think better and more clearly.
Develop the ability to see things in new and different ways.
Question the status quo.

Here is the challenge. The human brain does not think logically. It makes most of its decisions on emotion and/or preconceived ideas. Having made a decision, people then go back and justify it with logic. What’s worse is once a person has made a decision they will defend it to the death, no matter how wrong it turns out to be.

Developing critical thinking skills helps you arrive at better, more logical decisions at the beginning of the process.

These are the skills employers are buying today. Doing things the same old way doesn’t cut it anymore. Now clients want new and different ways of accomplishing things. Making progress requires shaking things up.

How Can I Learn to be a Better Thinker?

There are lots of online resources to get you started. Google “Learn Critical Thinking,” and you’ll get about 29 million results. One challenge here is language. Many of these resources read like college psychology texts (read boring and difficult to comprehend). My research turned up a couple of good sources I think you will enjoy.

The first is a website for “The Critical Thinking Community.” This link ( http://bit.ly/2xrZtj7 ) will take you to a page that starts you on a path to learning about critical thinking. If you want to take your education further, there are a lot of wonderful resources on the site. You can join the community for free.

There are lots of books on this subject as well. One of the most readable I found was “Critical Thinking for Dummies,” by Martin Cohen. This book delivers a plain English approach to the subject I think you will enjoy. I have included a link below if you would like to order this terrific book. (Full disclosure, I am an Amazon Affiliate.)

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Countdown: Skill #3 Creativity

September 22, 2017 Stephen Fetters

The first blog post in this series ( http://bit.ly/2v8mXJm ) I listed the top ten skills necessary if you are to triumph in the ongoing upheaval in the worldwide job market. Today, I want to discuss the #3 skill, Creativity.

Why is Creativity so Important?

There is one simple reason why creativity as a skill is so much in demand. Robots and software technology can’t do it. Here is one area where human beings can beat the bots. Every time.

Freelancers need this skill to solve problems with new programs and procedures. Clients and different departments implementing new programs and services will require new solutions to problems that arise.

I have a favorite saying I think sums up the need for creativity in the business world. It comes from General George Patton, the famous tank corps commander in World War II. “The best battle plan in the world isn’t worth a damn after the first shot is fired.”

General Dwight Eisenhower also weighed in on this subject when he said, “Plans are useless, but planning is essential.”

Freelancers know this. When it all goes to hell, you’re going to have to get creative and think your way out of it.

How Can You Define Creativity?

I admit this is hard. Creativity is one of those things that everyone knows when they see it, but find it difficult to define.

Let’s take a shot at it. Creativity is:

The ability to think outside the box.
Coming up with something that’s never been done before.
Applying old methods in new ways.
Perceiving the world in new ways.

There are more. Here is a link taking you to a Copyblogger Post with 21 different definitions of creativity ( http://bit.ly/2jEEKTH ). (Hint… the list starts about halfway through the post).

Can I learn to be more creative?

How many times have you heard it? “I’m just not a creative person.”

Wanna bet? Actually, we all start out being very creative, and then we unlearn it. In 1968, a man by the name of George Land devised a test to measure creativity ( http://bit.ly/2ykJSzE ). He then gave the test to 1600 children, age 3 to 5 years, enrolled in a Head Start Program. The results were amazing. The 5-year-old kids scored 98% on the creativity test. He retested the same kids 15 years later. Guess where they scored? 12%. Adults given the same test scored 2%.

This means our society is teaching us to unlearn creativity.

So it’s really not an issue of learning to be more creative. It’s remembering how to be as creative as we once were.

The common misconception is that creativity belongs to artists, writers, musicians, and maybe a few computer geeks. Nothing could be further from the truth. We are all creative. Like all skills, it is one where proficiency is gained by practice.

Remember the old joke? A kid carrying a violin case goes up to a cop in New York City and asks, “How can I get to Carnegie Hall?” The cop looks at the kid and says, “Practice, practice, practice.”

The best part is improving creativity is fun. A lot of fun.

I’m Sold. Where Can I go to Learn?

Online of course. Google “Learn to be Creative.” You’ll get more than a million results.

Now as for books? One of the best I have ever read on this subject is “The Artists Way, A Spiritual Path to Higher Creativity,” by Julia Cameron. I read this book when it first came out over 25 years ago when I wanted to begin developing my writing skills. I have reread at least 3 times since then. Don’t be put off by the title. This book is considered the seminal book on creativity. It’s for people in every walk of life seeking to enhance their creativity skills. There is also a great workbook that goes along with it I would recommend as well.

I have included links below if you would like to get these outstanding books. (Full disclosure, I am an Amazon Affiliate)

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Countdown: Skill #4 People Management

September 15, 2017 Stephen Fetters

In the first blog post in this series ( http://bit.ly/2v8mXJm ), I listed the 10 critical skills you will need to succeed in the upheaval taking shape now in the worldwide job market. Today I want to discuss Skill #4, People Management.

Why is People Management so Important?

People management has always been an important skill to possess. In the coming chaos in the job market, it will become even more vital. As robots and software technology continue to replace people in the work force, human judgement becomes more and more critical.

As a Freelancer, you will be involved in complex projects. These projects will employ teams of highly skilled and intelligent people. These teams may consist of company employees and/or other Freelancers. And…the one thing you will all be required to bring to the table is human judgment. It’s the one thing robots and software cannot do.

What Does Good People Management Consist of?

If there was one word I could use to sum up good people management it’s engagement.

Did you know according to Gallup research, 51% of the American workforce is not engaged? This means they are indifferent to their job or don’t like their work. ( http://bit.ly/2wVIZik ). So, the first task of any manager is to get his team engaged.

How do I Get People Engaged?

The hypothetical situation here is you are Freelancer managing a team of Freelancers completing a project for a company. Here is how I would do it.

Be clear about the purpose of the project. What is special about it? Why is it important? Freelancers tend to pick their jobs. If you can show how working on this project would enhance their career or professional development you’ll be way ahead.
Set expectations. Let them know exactly how they fit into the team and what they are expected to do. Show them how what they do is critical to the project’s success. Let them know you are counting on them.
Let them know you have their best interests at heart. Freelancers want to know they are in a situation where they can do what they do best.
Ask for their opinions. And…really listen. Reward innovation. Value feedback. Give plenty of feedback to them. Remember if you want to get people engaged, you have to be engaged.
Give lots of praise. But, be genuine. Too much praise can come off sounding phony
Figure out ways to make it fun.

Freelancers build teams. Let your team members know if they do a good job, you’ll be sure to ask them back on the next gig you get. People love working for a well-functioning team.

Freelancers need to know they are getting paid well. Remember companies can save up to 30% of labor costs (payroll taxes, fringe benefits, etc.) by hiring Freelancers. What kind of revenue will this completed project generate for the company? Set your prices accordingly. The better the pay, the higher the talent you’ll be able to attract.

Where can I go to learn about this?

Online of course. Google “People Management Training” and take your pick. Training resources range from free to thousands of dollars depending on what you choose.

Then there are books. Always my favorite starting point. One of the best is Stephen Covey’s “The 7 Habits of Highly Effective People”

Another excellent book is “Bringing out the Best in People” by Aubrey Daniels.

See links below to order these fine books. (Full disclosure, I am an Amazon affiliate.)

The main point here is to start now. Assess your leadership skills and figure out what you need to improve. The People Management skill is ranked #4 for a reason. If you need improvement in this area, the sooner you start, the better.

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Countdown: Negotiation – The 9th Crucial Skill

August 7, 2017 Stephen Fetters

In the first blog in this series (http://bit.ly/2v8mXJm), I discussed the upheaval in the world job market. Many jobs will be lost, but many will be gained. Projections are that by 2020, a mere three years from now, 50% of the labor force will consist of Freelancers. Today in this countdown series I am discussing the number 9 skill Freelancers will need to fill these yet to be created jobs. Negotiation!

Exactly What is Negotiation?

When we think of negotiating, what comes to mind? Haggling over a used car or a piece of real estate? Beating the other guy down so you get a fantastic deal?

The popular view of negotiating is that it is a win-lose deal. If you win, the other guy loses and vice-versa

The truth is good negotiating is about achieving a win-win for everyone involved. We all engage in negotiations almost every day whether we realize it or not. Anytime people seek to agree on a task or a concept or a subject there is negotiating involved. Negotiation is simply the process of achieving agreement on issues that leaves all parties satisfied with the results.

Why is Negotiating so Important?

As a Freelancer, good negotiation skills are crucial to your success. The first place you will use this skill is negotiating your fees with your new clients. Freelancers are typically very well paid, and you want to be able to negotiate top dollar for your services.

Then think about having to negotiate between departments inside your corporate client to achieve the goals you were hired to produce.

How about negotiating to bring your client together with other companies to install a new process or system.

Where Can I Learn to Negotiate?

Lots of places. And…it’s not as hard as you think. All it takes, in the beginning, is some thought and preplanning. You will find as you practice the process it becomes almost second nature to you.

There are lots of books. One I just read is “Never Split the Difference.” (See the link below). This is an excellent book written by Chris Voss, an FBI profiler. He starts every chapter with a real life negotiating experience from his long FBI career. This is a very readable book, with basic negotiating techniques clearly explained. This book is only one of many on the subject.

There are many online courses offered by colleges and universities. A quick search will find them for you.

Google is also an excellent source. Google “Learning Negotiation” and you get more than 6 million results to choose from.

When Should I Start?

Now! Even if you think you are a good negotiator, you can always learn more. This job upheaval is already well under way and will only continue to accelerate. Freelancing is the job of the future. Start now to acquire these 10 skills needed to fill jobs not yet invented. If you do, you will be ready to launch your career as a well-paid Freelancer.

Here is the link to Never Split the Difference. Full disclosure, I am an Amazon Affiliate.

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Social Styles 4-Learning About the Analytical

June 2, 2017 Stephen Fetters

Why are Social styles important?

This is the 4^th post in the series on Social Styles. In my previous posts, we discussed how essential understanding these styles is to building trust with prospects, customers, clients, employees, and partners. Your success depends on these relationships.

Today I want to discuss the Analytical Social Style.

What is the Analytical Social Style?

The Analytical Social style is the most easily described and may be the most misunderstood of all the styles. Think of a scientist, an engineer, or an accountant.

Analyticals are totally task focused and will ask a lot of questions. They are fact gatherers and number crunchers. They want to make sure they have all the information before they make a decision. This tendency sometimes makes them seem indecisive because there is always more to know.

They are reserved. Their speech is proper, formal and deliberate. They make few gestures. They are good listeners.

They take the time to develop personal relationships.

They are excellent planners and organizers.

Analytical tend to move slowly and with precision. They tend to think the process of reaching a decision is as important as the decision itself.

Their goals are making the right decision in the right way. They want to enhance their reputation as a technical expert.

If you try to move them too quickly, it will make them very uncomfortable and may damage the relationship.

Analyticals have much in common with Drivers and Amiables. As you can see from the grid, they are diametrically opposed to Expressives.

What is dialogue with an Analytical like?

Analyticals love slow, orderly, fact-filled presentations. Here’s what you can expect:

They expect you to be prepared
Ask detailed fact-oriented questions
Stay focused on the topic
They want flexibility. Give them time to consider alternatives to what you present.
Give them facts supported by data.
Listen carefully and take notes. Give them time to finish and ask follow up questions.
Offer confirmation of what you bring to the relationship.

How do you approach an Analytical?

Approaching an Analytical may seem difficult as they often appear remote. But, doing a little homework will smooth the way.

Do some research before you go. Find out as much about their situation as you can.
Don’t engage in a lot of small talk in the beginning.
Adopt a predictable, slow, task oriented approach
When you make a proposal, try to make sure it aligns with their current belief
Support your proposals with a lot of facts and figures. The more data the better.
Try to state your opinions in the form of a question, “What are your thoughts about X?”

In Conclusion

As business owners, you will be dealing with all these Social Styles. Understanding the ways to engage them will deliver amazing results in the form of profits on your bottom line.

Note: The material in this blog was developed from information featured in “The Social Styles Handbook” To find out more, please click on the link below to order Larry Wilson’s great book

(Full disclosure, I am a Powell’s affiliate)

The Social Styles Handbook: Adapt Your Style to Win Trust

by Wilson Learning LibraryTrade Paperback

5 Steps to Finding Your Ideal Target Customer

December 13, 2016 Stephen Fetters

When you start a new business, finding your ideal target customer is one of your biggest challenges. Here’s a great post from John Jantsch telling you how.

How to Discover Your Perfect Target Customer in 5 Steps

By John Jantsch

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One of the most important elements of a marketing strategy is the development of an ideal target customer profile. Effectively understand who makes an ideal customer allows you to build your entire business, message, product, services, sales and support around attracting and serving this narrowly defined customer group.

Image See-ming Lee SML via Flickr CC

When working with businesses that have an established customer base I can generally identify their ideal customer by finding the common characteristics found in their most profitable clients that also refer them to others. I’ve written about this kind of ideal client discovery here.

Today, however, I want to address the needs of the start-up or business with very little customer experience. Finding and serving an ideal customer is equally important for a business just getting started and establishing a focus on discovering a narrowly defined ideal client from the very beginning will save months of wandering in the dark trying to be all things to all people.

The 5 steps below can put you the path to discovering your ideal target customer.

1) Start with the Smallest Market Possible – This may feel counterintuitive to many just starting a business, but you have to find a group of customers that think what you have to offer is special. When you’re just getting started you may have very little to offer and in many cases very few resources with which to make sufficient noise in a market for generic solutions.

Your key is to find a very narrow group, with very specific demographics or a very specific problem or need and create raving fans out of this group. You can always expand your reach after you gain traction, but you can also become a big player in this smaller market as you grow.

2) Create an Initial Value Hypothesis – In the step above I mentioned the idea of finding a narrow group that finds what you have to offer special. Of course, this implies that you do indeed have something to offer that is special.

You must create a “why us” value proposition and use that as you hypothesis for why us. If this is starting to sound a little like science that’s because it is. You must always stay in test and refine mode in order to move forward.

Many people get caught up in trying to execute their business plan when the fact of the matter is the market doesn’t care about your business plan. The only thing that matters is what you discover and apply out there in the lab beyond your office.

3) Get reality in Discovery Test Sessions – Established, thriving businesses have the ability to learn a great deal every day from customer interaction. Since start-ups don’t have any customer interaction they have to create ways to test their theories initially and on the fly.

The key to both making and affirming your initial assumptions is to set-up what I call Discovery Test Sessions with prospects that might easily fit into your initial smallest market group. These are essentially staged one on one meetings.

This can be a little tricky since you have no relationship with said prospect. I often find that there are industry or trade groups that may contain your initial target market and by joining these you may have an easier time gaining access to this group.

Another possible option is to offer free sample products or beta test relationships to those willing to provide you with agreed upon feedback.

The main thing is that you start talking to prospects about what they need, what they think, what works, what doesn’t and what don’t have now. This is how you evolve your business, your features and your assumptions based on serving a narrowly defined target.

4) Draw an Ideal Customer Sketch – Once you’ve trotted out your hypothesis and tested it with your narrow group, you’ve got to go to work on discovering and defining everything you can about your ideal target group.

Some of this information will be commonly understood, such as demographics, but much of it will be discovered in your test sessions and though some additional research in more behavioral oriented places such as social media.

This is a great time to start your CRM thinking by building custom profiles that include much richer information than most people capture. I wrote about the new breed of CRM that is making this easier to do than ever.

5) Add Strategy Model Components – the final step is to apply this new ideal customer approach to other elements of your strategy.

The thing is, when you discover your initial ideal client it should impact the thinking about your basic business model and overall business strategy. All great business models are customer focused and now that you have a picture of this customer it’s time to consider how this alters the other aspects of your business.

Consider now how this discovery might impact your offerings, your revenue streams, distribution channels and even pricing.

Consider how you can reach this market, who you can partner with and what resources you either have or need to have in order to make an impact in this market.

I can tell you that my experience suggests that you’re never really done with this exercise. As your business evolves, as you learn and grow, this model will evolve as well, but perhaps the continual process of discovery is just as important as what you discover.

If you want to see more articles on small business success, sign up for my email series in the right hand column

Is Knowing Your Target Audience Critical?

November 22, 2016 Stephen Fetters

You betcha. Knowing your target audience is the key to any successful small business. Here’s a great post from Sivler Egg Media explaining why.

Why Is Understanding Your Target Audience So Important?

Many businesses think they know their target audience inside out. But if they took a test, how well do you think they would actually understand them?

Yesterday we spoke about how it’s really effective to create a balance between what is right for your business and what your audience wants. There’s no point in having a Facebook page if your audience isn’t primarily on Facebook, right?

There are so many things to consider when it comes to finding your target audience. And our post on it recently was so popular, that we’ve decided to expand on this topic more in the coming weeks. But for now, we bet you want to know why understand your target audience actually matters so much.

That’s why we’re here today.

What is a target audience?

When you type in “definition of target audience” into Google, this is what appears:

A particular group at which a product such as a film or advertisement is aimed.

Seems simple, doesn’t it?

If only.

I actually think the definition is the opposite to the one above. Today, a business doesn’t create a product and say, we’re going to aim it at X group of people. They find the group of people they target (the target audience) and create products they know their audience needs.

So it’s not as simple as a one-size-fits all approach. Your target audience can be made up of people who have different needs and goals, but come to your business because they all relate to something on some level.

Here at SilverEGG Media, we write long, detailed posts about particular topics within the digital marketing industry for two different audiences:

Our clients and other businesses looking for our services – through our content, we show them that we know what we’re talking about.
People within the industry who either work in it or have a strong interest in it – these people want to better themselves in their field, to learn new skills to improve.

So we try to find the balance between speaking to both audiences. But some businesses have two completely different audiences to write for.

Imagine if someone had an accident and you were partly responsible for it. If you told your friends about it, it would be much different to the story you told the insurance company, wouldn’t it? Because they’re two different types of audience – you tailor your story to fit the needs of each one. And it’s exactly the same for your business.

Your target audience is made up of people that can understand and engage with what you’re saying. They’re people who come to you for a reason. They’re people who will keep coming back to you, and bring new people to see what you have to offer too.

Four Reasons Why Understanding Your Target Audience Is So Important

You can solve their problems

Why do you want people to visit your business? There could be many reasons – entertainment, advice, services – but ultimately you’re doing one thing for them.

Solving a problem.

Whenever people visit a website, they’re looking to find something. It could be something as direct as someone visiting a wedding cake website, because they need a wedding cake. Or they may not even know they’re looking for something – they’re just hoping to find it.

Once you identify why your audience is coming to your website, you can make some really good choices. You can decide what categories you’re going to talk about and what information you’re going to include. You can create and make a list of resources to give to them. You can do everything possible to thoroughly solve their problem, each time they visit your site.

It’s the key to effectiveness

Unfortunately, it’s not enough to just know your audience. Digital marketing today is about building strong, loyal, lasting relationships with people. Which is why it’s so useful to have an understanding of them.

You can understand them as real people, get to know them, find out what they like and where they go when they’re online. And that, dear readers, is the key to effectiveness.

Everything can be planned around them. From what time you send them an e-newsletter, to when you publish a blog post, to when you interact with them on social media.

Think about it – if your audience is predominantly busy mums with small children, is first thing in the morning or early evening going to be the right time to connect with them?

Not really.

But if you target commuters, early evenings and first thing in the morning would be the ideal time to connect as they browse their phones on the way to work. By understanding their habits and behaviours, you can maximise your appeal.

It enables you to define your value proposition

In the same way as solving problems, understanding your target audience also allows you to decide what your value proposition is going to be – what can you offer them? Why should they visit you?

Your value proposition can be seen to define what your business does, uniquely. If you find this difficult to do, it means you don’t understand your audience. Because when you do understand them, it’s easy. You know what you want; therefore you can package it to them. And what you give to them depends on what they want.

You’ll see results faster

Marketing takes time. And it’ll take even longer if you don’t know who your audience is. It’s no good assuming things about them. If you create content based around their assumptions, your audience will become lost. They’ll be alienated and forget to visit your site.

That’s why the aim with most of our content is to teach people – that means it appeals to both of our audiences. The more you appeal to your audience, the more it will grow.

Conclusion

Understanding your target audience is an ongoing task. People are always becoming interested in different topics and looking for new things – but you can be more successful and achieve more simply by understanding them. Keep with up them, and they might just stick with you.

How do You Know It’s Time to Hire?

September 28, 2016 Stephen Fetters

Running your small business by yourself can be a lot of fun. But, if you grow, sooner or later you will have to hire some help. Here’s a great post to help you decide if the time is right.

BY LISA FURGISON

Is It Time to Hire an Employee?

If you own your own business and find that you simply don’t have enough time on your hands to be able to do all the things you need to do, you may be asking yourself should you hire an employee?

If you’ve already got employees, your question will be similar, when is the right time to hire another employee? Regardless of the structure of your business, there will be times when you need to make this decision and it’s not always as simple as acknowledging there’s too much on your plate…

To help you figure things out, we asked entrepreneur Kurt Johnson, a Los Angeles resident who has created several businesses including his most recent fitness venture, Swollforlife.com, to help us figure out what to consider before hiring.

Start with a list of advantages and disadvantages

Figuring out whether the time is right, may be as simple as making your own pros and cons list. This is a good first step before you look into cash flow, last year’s financials and your workload. Consider this testing the waters. Here’s an example list:

Advantages of hiring a new employee:

You’ll have more help to handle the tasks that are overwhelming you.
A new employee can breathe new life into your business and generate new ideas.
Someone will be there to share those exciting moments. As Johnson says, you’ll have “someone to high five” when things go right.

Disadvantages of hiring a new employee:

An employee costs you money.
There are more tax forms to juggle.
A new employee requires a big time investment upfront.
You’ll carry added stress of another person being dependent on your business.
You’ll need to manage and monitor the new employee.

Once you’ve created your list, and perhaps once the advantages outweigh the disadvantages, you can move on to the next step – genuinely trying to work out whether or not you should hire a new employee.

Should you hire a new employee?

Administrator of the SBA, Maria Contreras-Sweet, believes there are 4 things to consider before you take the plunge:

What is your vision for your business? Do you really need staff or additional staff or could you do just as well with virtual assistants or temporary workers? At this stage you’ve got to be honest with yourself – do you want to keep the business small or do you want to become a larger business?
Where do you need help? Review your workload and your project pipeline. Is there anything you could offload on a new employee and if so, what ‘type’ of employee does this work suggest you need to look for? Perhaps a sales rep? Maybe a cashier? Or what about an accountant? Even if your goal is to hire in order to free up your own time, make sure you have a good handle on where that time should be spent so that you can look for someone with the appropriate skill set.
Can you manage people? This is an important consideration. What have your past experiences taught you? If you believe you’ve got the ability to manage, what about the ability to make a good hiring decision? Do you need help?
Can you afford it? Right, so this is probably one of the trickier parts. Take the time to build a picture of the costs and overheads your business will incur as a result of a new employee. Some things to consider: wages, unemployment tax, workers compensation insurance, medicare and social security taxes, recruitment and training costs, benefits, payroll costs, new equipment, software licenses, etc. Once you’ve got a realistic idea of the potential cost of a new employee, try to align this cost with the benefits you’ll get from that new employee. How much new work will you be able to take on? Take a look at your income and expenses from the previous year to assess whether you have the capacity to afford someone. If it looks possible and profitable, consider your pipeline and cash flow. Can you live with not being profitable in the short term or will this cripple your business?

If you’re still unsure about whether or not you can justify hiring an additional employee, it may be worth sitting down to to see if you can pinpoint those signs that say you really should bite the bullet.

Four signs you’re ready to hire

1. When you turn down work

If you have to turn down work because you can’t fit another project into your schedule, it’s a good indicator that your business is ready for help.

“If you’re growth is being inhibited by the hours in a day that you can work, then it’s time to start thinking about another employee so you can retain all available revenue,” Johnson says.

No business owner doesn’t want to earn more money, but some don’t want the added work or complications that come with hiring someone new. Again, you’ll need to be honest with yourself.

2. If you identify a new revenue stream but need additional skills

Diversifying your business is a smart move. Along the way, you’ll probably find a new source of revenue that you could tap, but might lack some of the skills necessary to really dive in.

“Sometimes you will come up with great business ideas that you are just not personally equipped to execute on,” Johnson says. “This is a great problem to have and the right employee can truly make the difference in taking your business to the next level.”

3. If complaints are rolling in

If you’re spreading yourself too thin, it shows.

If customers start complaining about your work or about your timeliness, it’s a sign that you’re spread too thin. If you’re not able to commit yourself to each and every project, you’ll want to hire an additional employee. Bad word of mouth can damage your reputation and revenue, so you should hire someone soon if this is happening at your business. Even if you are just bringing someone in to answer your phones, field emails, or tackle your accounting practices, you will get those hours back to commit to clients.

4. When you have a steady stream of revenue

It takes a while for businesses to gain a steady stream of income, and you don’t want to take on an employee until that happens. An employee can help your business grow, but before making any staff additions, you’ll want to make sure you have the revenue available to pay him or her.

Weigh your options

If you decide that your business is ready to hire an employee, you do have several options. You can hire someone full or part time as a W2 employee, or you can hire someone on an as needed basis as a 1099 employee. If you hire someone as a W2 employee, you are responsible for paying taxes. If you hire via a 1099, the employee is responsible for his or her own taxes.

Johnson suggests starting with a part-time 1099 employee to see how much help you need and how the additional employee works within your business. Once you’re ready to bring on a full time employee, Johnson suggests consulting an attorney to make sure your business complies with all tax and healthcare regulations.

If you began your business on your own, when did you decide to hire your first employee, and what made you decide? Share your stories and advice in thecomments below.

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Lisa Furgison is a journalist with a decade of experience in all facets of media. Follow Lisa on Google+

Want a Successful Business? Here Are 5 Keys.

September 13, 2016 Stephen Fetters

As small business owners, we all want to be successful. That’s why we started our business in the first place. But..in order to get there, we must be mindful of certain things. Here is a great post from the Small Business Administration giving you 5 things you need to know.

5 Pillars of Small Businesses Success

By Marco Carbajo, Guest Blogger

Published: January 13, 2015

What does it take for a small business to achieve success?

Whether you’re already in business, or preparing to start a business, it takes hard work, tenacity and drive to achieve a high level of success. Lori Greiner, star shark of ABC’s Shark Tank says, “Entrepreneurs are willing to work 80 hours a week to avoid working 40 hours a week.”

According to Elizabeth Wilson of Entrepreneur Magazine, while some 40 million businesses are started each year, a paltry 350,000 break out of the pack and begin growing and making money. So how can a small business owner overcome some of the common business pitfalls? Marcus Lemonis, CEO of Camping World and star of CNBC’s prime time reality series The Profit, knows all about determining the success or failure of a business. Lemonis says, “Business success is about the three P’s: People, Process and Product.” Here are five pillars that make a small business successful.

1) People

If you want your small business to succeed, you need a fantastic team. Russell Simmons, Entrepreneur and founder or Def Jam Recordings says, “Surround yourself with people that are smarter than you.” A company can accomplish amazing things when it has leadership and a team who is inspired, hardworking and believes in the company’s mission.

2) Plan

“Quality is the best business plan, period,” says John Lasseter, chief creative officer for Pixar and Disney. Just about everyone in the business world agrees that having a plan is important. And that doesn’t mean the big formal business plan document you fear like a term paper. It starts small and may grow in time. At a start-up, implementation is everything. That means it’s essential to establish responsibilities, set goals, and track performance. You will also need to answer key questions, such as:

Have you identified your target customers?
What problems are you trying to solve for them?
What will be the most effective marketing and promotional strategies?

3) Process

Dr. W. Edwards Deming said, “85 percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and processes…rather than the employee.” It’s crucial that you have a full and clear understanding of your company’s processes and have the right systems in place.

4) Product

Does your product solve a problem? Does it exist yet? Is there something that is out there that your product does in a different way? Is there a demand for your product? Success in business requires doing something you’re passionate about that fills a need in the marketplace. Debbi Fields, Founder of Mrs. Fields Bakeries says, “Once you find something you love to do, be the best at doing it.”

5) Profit

When it comes to measuring a successful business, profitability is probably the first thing that comes to mind. Is the company making money? A critical component of running a successful business is knowing your numbers. “If you want to be successful in business, you need to become proficient at handling certain numbers. You need to be able to read and understand your financial dashboard” says Dawn Fotopulos, Associate Professor of Business at The King’s College in New York.

Starting and running a successful business can be a fulfilling and rewarding experience. You as a small business owner should never stop learning, innovating, planning and growing. “Leaders spend five percent of their time on the problem and 95 percent of their time on the solution. Get over it & crush it!” says Tony Robbins.

About the Author:

Marco Carbajo

Guest Blogger

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.

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Best Hire: Employee or Independent Contractor?

August 31, 2016 Stephen Fetters

As small business owners, sooner or later we are faced with hiring our first employee. So which kind is best: full time employee or independent contractor? Here’s a great post with all the pros and cons.

The Pros and Cons of Hiring: Employee vs. Independent Contractor

BY LAURA SHERMAN | SMALL BUSINESS

[This article is a piece of part 11 of our Smart and Simple Guide to Starting a Business – scroll to the end to see the other parts]

As a small business owner you will need to determine whether to hire full time employees or use independent contractors. Don’t make the mistake of thinking they are basically the same thing. They aren’t.

Although you pay both kinds of workers to do tasks for you, they are not viewed the same by the IRS. And if the IRS suspects that you are not classifying your workers correctly, they might audit you.

The IRS defines independent contractors in this way: “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”

So, if you own a restaurant and hire two waiters, they would be employees. However, if you contracted a local handyman to come in as needed to fix anything minor that breaks in your restaurant, they would be an independent contractor even if you pay them hourly. The waiters show up to your place of business and work under you, while the handyman has his own business and simply shows up and fixes things his or her way.

There are pros and cons to hiring full time employees and independent contractors. Most small business owners wish to avoid the added overhead of having a slew of employees, but some don’t have a choice. You’ll need to evaluate your situation to determine what is best for you.

Advantages to hiring full time employees

When you hire full time employees, they will work for you thirty or more hours a week (fewer hours makes them part-time) and will usually have a long-term commitment to you and your business. The advantages to this type of relationship for you, the employer, are:

These employees will feel pride in their position in your company. Most people want the security of a job, but they also want to feel the satisfaction of working for a company that they can call home. They want to feel that they are an important part of the team. If you give them that, they may go the extra mile.
The hourly wage for a full time employee is often much less, because they have job security. If you were to hire out for the same work with a freelancer, you can often expect to pay quite a bit more.
You don’t need to scramble to find help when your workload increases. If you only rely on independent contractors and need urgent help, your favorite freelancer might be booked. Or it might cost you a lot more to hire one last minute.
You don’t have to wear all the hats of your business yourself. Instead you can delegate tasks permanently to others. This frees up your time to do the tasks best suited for you.
You don’t need to continually train staff on how you like things done. Your employees know you and can do the work without the need for continual direction.
If you want to take a vacation, you can be assured that someone is holding down the fort for you in your absence.

Disadvantages to hiring full time employees

As you consider whether you want to hire full time employees, you’ll need to consider the downside as well. There are certain requirements that come with having employees:

Although it isn’t mandatory, most full time employees expect benefits, like health care and vacation time. As you interview potential candidates, they will most likely be interviewing with other companies as well, who offer such benefits.
You’ll need to pay their salaries like clockwork, even if your business has a lull. In order to cover their paychecks, you’ll need to have a reserve of money in your bank account.
You’ll have specific payroll paperwork that is legally required. Along with this, you’ll need to withhold your employees’ taxes, social security, and Medicare.
You are responsible for your employees’ training and professional licensing requirements. These vary from state to state.

Advantages of hiring independent contractors

Small business owners usually prefer to hire freelance workers for jobs when they need help. There are distinct advantages to sticking only to independent contractors:

Although you usually pay more per job or per hour, you will most likely save money overall since you aren’t required to pay them any benefits and do not need to commit to a salary.
You have greater flexibility. When you work with an independent contractor and it isn’t a good match, you simply don’t hire them again. When you have an employee that doesn’t work out, you may need to fire them, which isn’t always easy.
You can hire the right person for the task needed, contracting someone with a specialized service. They often have many years of experience, so you don’t need to train them.
They are responsible for their own permits and professional licenses.

Disadvantages of hiring independent contractors

While hiring independent contractors has many advantages, there are some drawbacks as well:

You lose some control over how tasks are preformed, because you can’t closely monitor their work. You can guide them, but usually they aren’t on site and will run their business their way.
They are hired short term, so you might not get the same worker for the next project. They usually operate on a first term, first serve basis.
They have no sense of company loyalty, but are a hired gun for one specific job. They are not part of your staff.
They will not promote your brand, but their own. Their work is done under their business name, with their logos, etc.
All copyrights will be owned by the independent contractor, unless you draft an agreement stating otherwise.

There are times when the line between employee and independent contractor can become blurry. For instance, how do you classify a virtual assistant? In order to answer that question, you must evaluate the situation.

Does the virtual assistant have her own company name, work for you on a project-by-project basis, and operate independently with limited supervision? Most likely, they would be an independent contractor. However, if she works for you forty hours a week and you are her only client, she might be an employee.

Understanding the difference between an independent contractor and a full time employee will save you a lot of headaches in the future. Set up your business with the type of workers that you need for long-term success.