Number of Small Business Loans Increases

A major concern for most people when starting a business is financing. Many of us ask ourselves, where am I going to get the money to get my business up and running? As you do your research, you will learn that there are many options – borrow money from friends and family, seek outside investors, use your savings, fund it while still keeping a full time job or get a small business loan. We all weigh our individual financial goals and come up with the option that affords us the capital to get started quickly yet doesn’t put us into too much debt that we can’t breathe due to the financial.

A recent Washington Post article explored the later. It reported that “the number of small business loans under $1 million increased by 15% from June 2006 to June 2007”. Additionally, according to the Small Business Administration’s Office of Advocacy, the loans with a value of $100,000 to $1 million increased by almost 32%.”

Why are small business loans increasing in popularity? We will explore that in our next post.

Understanding Communication Styles

Recently I attended a workshop by Jonath & DiMeo Incorporated. Its objective was to foster effective working relationships. One of the key drivers of relationships is communication style. Understanding our own communication style and the style of those whom we work will help communicate more successfully.

In this training they highlighted four communication styles: Expressive, Amiable, Analytical and Driver. We explored each in detail, but here are the traits and perceived strengths and liabilities in a nutshell.

Expressive Style: primary motivation is affiliation

• Comfortable with close personal space
• Prefers lots of eye contact
• Gesture actively
• Speak in a conversational manner
• Use a lot of tentative language
• Are talkative about personal things
• Organize their message using recency

Perceived Strengths and Liabilities:

They are perceived to be likable. They’re quick to establish rapport and to make other feel included and comfortable. They are respectful of all members of a group or team and what to ensure that everyone is heard. On the downside, in their desire to affiliate they may be perceived as being disorganized by those who want to get straight to the task at hand.

Amicable Style: primary motivation is acceptance

• Are comfortable with large personal space
• Make little eye contact
• Make few gestures
• Speak slowly and softly
• Use a lot of tentative language and fillers
• Think before they act
• Are interested in the fact and/or ideas behind the work
• Organize their message using recency

Perceived Strengths and Liabilities:

Amicables are perceived to be thoughtful, reflective and non-threatening and good listeners. In groups, when called on they contribute real value. However, they tend not to assert in group setting or bring ideas to the table.

Analytical Style: primary motivation is achievement of task

• Comfortable in large space
• Focus their eye contact on the task
• Make few gestures
• Speak loudly and quickly
• Use precise language
• Organize their message using primacy – main point supported by details

Perceived Strengths and Liabilities:

Analyticals are perceived to be very organized, logical and careful. To be careful, they put up a few more testing barriers, asking the “what’s that based on?” questions. Analyticals may be perceived as closed and aloof.

Driver style: primary motivation control

• Are comfortable with large personal space to size up the situation
• Make frequent and intense eye contact
• Make large illustrative gestures
• Speak quickly and loudly
• Use prescriptive language : “you should”, “we have to”
• Make quick decisions based on little information
• Organize their message using primacy

Perceived Strengths and Liabilities:

Divers are perceived to be dynamic and decisive. On the downside, they are perceived as aggressive and impatient for action.

What style best describes you and the people you work with? Your clients? Your employees? I was dominantly express, but then scored equal across the board in the other three. No doubt you can see a little of yourself in each of these. But how do you think other people see you.

The moral of the story was that you have to understand other people’s style of communication in order to have a better way of reaching them. For example, if your dominant style is expressive and you need to effectively communicate with someone’s whose style is a driver, there are certain characteristics of your communication style that you need to change so as to adapt to the other person’s style. For instance, you may be less talkative and chatty and get down to the points at hand – almost in a bulleted form.

Understanding communication style is something that we all can use in all aspects of our lives – both personal and business.

10 Tasks a Virtual Assistant Can Do That Would Make Your Life Easier

1. Check phone messages
2. Check emails
3. Follow up - on phone messages and emails
4. Prepare Newsletter (either online or print)
5. Manage your contact list (keeping it current/accurate)
6. Introduce you to products in the marketplace to help you run your business more effectively.
7. Manage calendar/appointments
8. Research opportunities for you to showcase your business.
9. Customer invoicing
10. Prepare marketing and advertising.

These rules are not set in stone, but rather just an example of how a Virtual Assistant can give the busy business owner time back so that they can focus on growing the business.

10 Mistakes We Make at Networking Events

For most small business owners/entrepreneurs we realize that we must network and in order to continue to build our network which will grow our businesses. Admittedly, at times it is difficult to find the time to do just that. But whats worse is, when we finally make the time to go to a “networking event” we don’t take full advantage of the experience.

Recently I went to one such event, the Bowie Business Start-up and Support Meetup (http://www.entrepreneur.meetup.com/). At the May meeting, we talked about the 10 mistakes individuals make at networking events. This was presented by Glenn Garnes, a relationship guru.

1. We go, but we don’t know why we are there. Really think about what your purpose is when going to a networking affair. The real purpose should be to be a good listener and get to know people well enough to access whether they are worth the follow up.

2. We hang out with people that we already know. It should be obvious as to why this is a mistake. You can’t expect to extend your network if you just socialize/communicate with in the one your already have.

3. We talk too much about ourselves. Okay, sometimes this is a normal reaction because we practiced our elevator speeches and we really do want to use them or we are the one subject that we know best. But we have to careful of this. When we speak to others we should be asking good questions and again, being a good listener.

4. When we do talk about ourselves we don’t describe it in a way that’s meaningful to people. We need to always highlight how the end client benefits. For example, as a virtual assistant I give time back to the busy business owner by taking care of the administrative tasks that are necessary to keep a business growing.

5. We don’t have an effective follow up system. No one is saying you have to go out and by fancy computerized systems – even though it is an effective option – but some sort of follow- up process must be in place in order to reconnect with people and in turn grow your business.

6. We don’t take the time to meet the “center of influence” or the person who is hosting the event. What Mr. Garnes said was that, we should always want to meet the host because they know enough to get all of these people in a room; wouldn’t we want to be in that network.

7. We aren’t good matchmakers. Be a connector. If you met someone on one side of the room that fills a need or provides a service that someone you met earlier can benefit from, take them to meet each other.

8. We show up to be seen. It most effectively to actively participate in the event; show up on time and stay until the end.

9. We don’t ask the right questions. The right questions are ones that will keep the conversation going. I’ll admit this was/is a fear of mine during networking events. However, I found the book Endless Referrals by Bob Burg, and invaluable resource in preparing me to actively participate in these events.

10. We don’t go to enough networking events. We should make a commitment to do at least 1 per month and then increase it.

Next topic: Top 10 tasks a VA can do to make your life easier.

Surviving a Recession With a Virtual Assistant

Through the various media outlets, and more importantly, via our bottom lines, we find mounting concern about the economy and see the affects of a recession. In fact, according to a January 27, 2008 article entitled, Small Business Planning for Slump written by Jim Wyss of the Miami Herald.com; "Among a dozen small business owners interviewed last week, most said they expect things to get worse before they get better -- and many doubted the new economic stimulus package, which includes rebates for consumers and tax breaks on business expenses, will do much for their bottom line." Then what will help small businesses in this economic slump? How can small business take on this challenge when every indicator says that they should be saving money rather than spending it?

One such way is to outsource administrative responsibilities to a Virtual Assistant. Virtual Assistants are independent entrepreneurs who provide creative long-term collaborative and professional administrative support to their clients. Virtual Assistants are paid only for the time spent on tasks and utilize time-tracking software that records such information. Therefore, a client is not charged for downtime, breaks or distractions that may occur during the day.

You may be thinking, "This sounds good, but what about the costs?" Well, if you compare the compensation rate of a highly skilled Virtual Assistant to how much it would cost you to hire a full time staffer, or even a temp; paying taxes, benefits and other associated expenses, you will immediately see the cost savings.

Click here for a cost comparision of employees versus Virtual Assistants.

Independent Contractor vs. Employee

The IRS has recently started an initiative to educate new small business owners on their federal tax responsibilities. One area in which new small businesses can get caught up is when advancing to the point where they need add additional “hands in the pot”. According to the IRS, “it is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.” (http://www.irs.gov/businesses/small/article/0,,id=99921,00.html)

Filing at 1099-MISC of Independent Contractors

According to IRS.gov, if you paid someone who is not your employee, such as a subcontractor/independent contractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-MISC (PDF) needs to be completed, and a copy of 1099-MISC (PDF) must be provided to the independent contractor by January 31o f the year following payment. You must also send a copy of this form to the IRS by February 28.

Preparing and Filing Form W-2 for Employees

At the end of the year, the employer must complete Form W-2, Wage and Tax Statement (PDF). A copy of this form must be given to the employee by January 31st after the end of the year. You must also send a copy of the W-2 to the Social Security Administration (SSA) by February 28th (after the end of the year) unless you file it electronically -- then it is due on March 31st. Employers can prepare and file up to 20 W-2s at a time, free of charge, at the Social Security Administration’s Web site. Using SSA’s online W-2 filing, employers can also print out all the necessary copies of the W-2 for their employees, state taxing agencies, etc.

Click here to see a cost comparison of using full time employee versus a virtual assistant for your administrative needs.

Delegate Your Way to a More Productive Business

As business owners you are no doubt always looking for the most effective way to spend your time. It is important to truthfully assess how productive hours are spent on a daily basis. Keep in mind that there is a distinct difference between busy and productive. Busy entrepreneurs can quickly get caught up in the “busywork” of running a business. Tasks such as checking emails, handling invoices or other payments, making travel arrangements, preparing handouts (instead of preparing your presentation), etc. can rob one of many productive hours each day. These tasks, though necessary to keep a busy running, are not the elements that provide the sustainability to keep a business growing.

With that said, here is a word that any student of business has heard heard millions of times – DELEGATE. Of course it would be in the best interest of your business if you could focus your more productive hours on the things that yield the most return. Ask yourself, “What limits me?” and make sure you find ways to address those limitations. It may be a good idea to start setting times monthly to access and readjust if necessary – check-in with yourself and your business to make sure you are staying on track. By delegating some of these tasks to someone with a lower rate per hour, the busy entrepreneur is free to concentrate his/her hours on more productive tasks; therefore seeing an increase in productivity, prospects, clients, and income.