Purchasing Health-Care Coverage

Purchasing health-care coverage can be overwhelming. Here are some practical tips and advice on available resources to help you get started.

Start with the fundamentals—know what works best for you. Group plans are cheaper because insurers spread the risk of claims over a greater number of people. Individual insurance plans may be a good choice for the self-employed.

Investigate non-traditional options. Consumer-directed options include supplementing high-deductible health plans with health reimbursement accounts or health savings accounts. Most consumer-directed health plans feature tax preferred accounts that allow individuals to control a portion of their health-care dollars and pay directly for routine medical needs.

Assess. Assess your needs, know your preferences, and then compare options, so you can avoid coverage surprises down the road.

Look beyond cost. Don't let cost become the sole factor in your purchasing decision. Make sure you fully understand the benefits provided under any policy and confirm that the insurer is licensed to sell health insurance in your state.

Talk to experts. The U.S. Department of Labor and the Insurance Information Institute provide a wealth of information to help you make informed decisions. The National Association for the Self-Employed also has a Web site featuring tools to help you identify and select the right coverage for you.

Robert Hughes
President
National Association for the Self-Employed
Grapevine, Tex.

Five Small-Business Grant Resources

Sometimes even the best business concepts don't come to fruition due to lack of funding. Lending sources may refuse funding for multiple reasons. For example, you could have a strong business plan but can't qualify for traditional bank financing because you lack sufficient collateral. Or maybe you can't come up with a sizable down payment, or your business doesn't have a long enough track record.

To read the full story at AllBusiness.com, click here

Required Workplace Posters

As a small-business owner, you need to make sure you are always following the laws that affect your industry. In addition to observing the mountain of federal and state laws that have been written to protect both the employer and the employee, business owners must also post these laws at the workplace.

To read the full story at AllBusiness.com, click here

So You've Been Sued—What Now?

It all starts when someone enters your business and hands you a sealed envelope stating, "You are served." Unfortunately, lawsuits are a part of doing business. Don't panic—here are several things to keep in mind if your business is being sued:

Do not ignore the lawsuit. Never ignore the claim—no matter who makes it or where it comes from—act immediately. If you fail to defend against a lawsuit in the time mandated, the other party can take a default judgment against you. A default means you lose the lawsuit.

Contact an attorney. Don't hesitate to call your attorney, or if you don't have one, find one quickly. Typically, an attorney will have roughly 30 days to respond to all claims, leaving little time for delay.

Organize information. You'll need to gather all relevant documents, write a detailed statement of your position and be careful not to destroy any documents, including electronic records, related to the case.

Work with your attorney. Don't just turn matters over to your attorney. Stay on top of the case and work closely with your lawyer so you are involved with decisions on how to proceed.

Formulate a plan. Unless you are fortunate and have an insurance company to pick up the tab on defense fees, your defense may depend on what you can afford. Ask your attorney for an estimate on fees and expenses, and then decide on settlement possibilities and legal strategies.

Elizabeth Gaudio
Senior executive counsel
National Federation of Independent Business Legal Foundation

Traction: The First Goal When Getting Started

When starting a new business, the entrepreneur's excitement and energy are often aimed at grand and lofty goals. Often the siren of starting a new company is the potential riches of an IPO or an M&A as well as the independence these potential successes bring to the founders.

This thinking, while bold, is a bit like asking a mountain climber on what part of the summit he intends to plant his flag. I think a better question might be where he intends to start his assault on the mountain and why.

That same practical approach holds true for an entrepreneur starting a new business. New small-business owners should take their product or service and focus on getting traction. So many things start to become clearer when customers actually begin pulling out their wallets.

When that begins to happen, your confidence in yourself and your business begin to take hold and the mountain doesn't seem quite so high anymore.

Bow Rodgers
President and CEO
SquareHit Tennis
Palo Alto, Calif.

Family Business Indecision

Families often put off business decisions such as leadership succession and sale or transfer of ownership. Even when decisions are made, implementation is often slow. But the costs of indecision are enormous: Businesses fail and opportunities are forever lost. Below are five factors that lead to family business indecision to be aware of and address.

1. Families are emotional. People avoid situations that make them feel anxious. Scheduling regular family meetings, using an agenda, and reviewing the undecided issues in a businesslike manner will create a calmer atmosphere.

2. Families are closed systems. Closed systems do not like change. Here are strategies that may invite change: First, ask many questions because questions introduce new information. Second, expand the number of people involved in a decision process because new points of view challenge family members to take action.

3. Families lack clearly defined roles and responsibilities. Specific roles and responsibilities, with tasks spread across generations and feedback required through regular family meetings, help minimize "diffusion of responsibility," where, in the presence of others, people do not feel they must make a decision.

4. Families have emotional imperatives. Decisions may be delayed or abandoned because family loyalties and commitments can hopelessly complicate the task. An effective strategy is to put alternative choices on the table, clarify priorities, and to address costs and benefits one step at a time.

5. Family leaders can have education/skill deficits. Many business owners are faced with important decisions without adequate preparation or education. The final strategy, then, is to ensure that all parties have the information and education necessary to make a decision.

David Lansky, PhD
Founder
Family Business Innovations
Highland Park, Ill.

How Do You Determine the Selling Price for Your Business?

Though many formulas and tools can help you determine the selling price for your small business, there is no magic bullet that will come up with the absolute correct price for every instance. The final price ultimately depends on how much the buyer wants to buy and how much the seller wants to sell.

Yet there are a number of ways to value your company and determine your asking price. For example, find out the selling prices of similar businesses in your area and use them as a starting point. Or contact the national trade association for your industry (if one is available). These organizations usually keep detailed statistics and are more than willing to provide information to members or potential members.

You can also consider employing the services of a professional business appraiser. This may lend more credibility to your initial asking price and allow you to keep the reins on sale-price negotiations.

To read the full story on AllBusiness.com, click here.

Creating a Collaborative Workplace

Creating a productive and collaborative workplace is not easy, but as a small-business owner, building such an environment starts with you. Here are some tips:

1. Make sure everyone on the team knows exactly what the mission and goals are.

2. Clearly articulate everyone's roles and responsibilities.

3. Cultivate a variety of work styles, talents, and skills to ensure a creative mix of perspective, experience, and thought.

4. Create a relaxed work climate with an emphasis on collaboration.

5. Take advantage of lessons learned to leverage what has worked in the past and what missteps to avoid.

6. Confront problems as soon as they arise to clear the air and allow the work and relationships to move forward.

7. Empower the team to carry out its work.

Mallary Tytel
President and Founder
Healthy Workplaces
Sioux Falls, S.D.

Compiling the Financial Section of Your Business Plan

A solid financial plan should always be included within any business plan. Plans for financing the business today and allowing for future growth should be outlined in addition to ongoing operational needs. Before writing this section, spend time with your accountant, financial adviser, or chief financial officer (CFO) to review the financial structure of your intended business.

To read the full story on AllBusiness.com, click here.

It's About the Team

Perhaps nowhere is the concept of team more apparent and critical than within a small business. After all, a team is a group of individuals collaborating to achieve their common goal and thereby to succeed. The whole team is often greater than the sum of its individual members, with each contributing ideas and solutions.

In order for each employee to be an effective team member, you need to promote and model those characteristics that support positive group dynamics, such as:

• Effective communication skills

• Listening to others objectively and with an open mind

• Diplomacy and willingness to negotiate

• Concern for others on the team

• Recognizing and dealing with conflict constructively

• Valuing the ideas and contributions of others

• Willingness to share the credit of successes

Mallary Tytel
President and Founder
Healthy Workplaces
Sioux Falls, S.D.

Make Your Competitive Analysis Stand Out in Your Business Plan

Before writing the competitive analysis, first identify both direct and indirect competitors. You can locate listings of local businesses, search the Internet for online competition, and seek out mail-order businesses that might offer competition. However, the best way to create a strong competitive analysis is to visit your competitors, study their prices, understand their customer base, and uncover the services they offer.

To read the full story on AllBusiness.com, click here.

How to Lead an "Action Review"

No matter how well a project, task, or assignment is done, it is always a good idea to take some time once the dust settles, gather employees together, and conduct an "action review." As the name suggests, this process provides an opportunity for even the best of organizations to look back on its work and apply lessons learned for the future.

The review consists of three simple questions for the group to answer:

• Looking back over the duration of the project, what were things that went well, that we are proud of, pleased with, and have added value to our organization and how we work? Why?

• Looking back, what are those things that did not go well, did not happen as anticipated, or did not add value to the organization? Why?

• Next time, what do we want to do differently?

Depending upon the scope of the work and number of people involved, this process should not take very long to run through. The answers should be recorded and discussed, and then kept for future reference. Next time around, results from this review can provide a starting point for process or operational improvement. The data can also prove valuable when evaluating the overall results of the task in the context of the organization as a whole.

Mallary Tytel
President and Founder
Healthy Workplaces
Sioux Falls, S.D.

Thoughtful Decision Making

Decisions are at the heart of all organizations, and decisions are made by everyone at all levels. Some of these decisions are routine and inconsequential, while others can have a drastic impact on our lives, our work, and the people around us. In this increasingly complex world, the tasks of decision makers are becoming more challenging, perplexing, and just plain nerve-racking.

Research has shown, however, that you can be a better decision maker if you adhere to a structured decision-making process. Some things to consider are:

• What are the options and choices available to me; how might I discover others?

• What are the advantages and disadvantages and short- and long-term effects of the choices I am considering?

• Does this decision allow for appropriate and efficient resource management?

• Who else will be affected by this decision?

• What are the consequences of this decision for me and for others?

• Is this decision consistent with my beliefs and values?

When making a decision, a little attention goes a long way. A good decision is never an accident; it is the result of intention, sincere effort, intelligent direction, and skillful execution.

Mallary Tytel
President and Founder
Healthy Workplaces
Sioux Falls, S.D.

Are You Liable for Products You Sell Online?

Even though the Web is still a very young medium, the law is fairly clear: Your business is liable for the products it sells online—just as it would be if you sold the same products in a physical store. Therefore, you should take special care when you repeat another firm's claims about products that you sell, and you should be aware of any characteristics that might target a product for legal action. Ignorance is not a defense—nor is a disclaimer on your Web site.

To read the full story on AllBusiness.com, click here

What Employees Want: Six Essentials

An important aspect of creating and maintaining a healthy work organization—one whose culture, climate, and organizational practices create an environment which promotes employees' mental and physical health as well as their productivity and effectiveness—is understanding what employees want. What's their motivation, and how can your business retain the best individuals?

Years of social science and business research have identified six basic human requirements that must be present for people to be productive. These criteria present a foundation for designing an effective organization and a healthy workplace.

1. Elbow room for decision making. People need to feel they're in control of their own work, and that they have room to make decisions that they can call their own.

2. Opportunity to learn on the job and to go on learning. Learning is a basic human need, and people are always striving to improve. Learning occurs when people are able to set goals, meet challenges, and get feedback on their strengths and areas of growth.

3. Variety. People need to be able to vary their work to avoid the extremes of boredom and fatigue. They need to set up a satisfying rhythm of work that provides enough variety and reasonable challenge.

4. Mutual support and respect. People need to be able to get help and respect from their co-workers. In an environment where "one person's gain is another's loss," everyone loses.

5. Meaningfulness. People need to be able to relate to what they do and what they produce. Meaningfulness includes both the worth and quality of a product, and knowing how they contribute to the whole. There must be a true connection between the individual's work and their values.

6. A desirable future. People need a job that leads to a desirable future for them. This isn't necessarily a promotion but a career path that will continue to allow personal and professional growth and learning.

Mallary Tytel
President and Founder
Healthy Workplaces
Sioux Falls, S.D.