Brought to you by

THE COMPLETESMALL BUSINESS OWNER’S GUIDEto managing money, time, and talent

G0815

2

TABLE OF CONTENTS

Intro 3

1. Money Management Tips for Small Business Owners 5 5 Things Every Business Should Have 6 Top Tech Tools for Small Business Success 7

2. Time Management Tips & Tools to Staying Sane and In Control 9 Getting Time Back on your Side 11 5 Mistakes Small Business Owners can Overcome 12 A Simple View of Delegation 14

3. Tips to Hiring Good People at the Right Time and Keeping Them 17 Defining What You Need 19 How to Afford to Pay for Employees or Services 21 When It’s Time to go All In For Top Talent 22 4. Recap 24

About eCapital 27

3

INTRO

The words “struggling economy” sprinkle most news stories online and off when discussing the business climate and small business landscape in general in the U.S. If you look beyond the headlines, however, there are modest signs of an economic recovery that should be encouraging to you and other small business owners.

In a recent report by the Kauffman Foundation and LegalZoom the authors surveyed more than 700 small business owners and discovered that despite conventional wisdom, growth is real and happening. “The economy has moved in the past year—slowly, but trending upward, and here and there we can start to see flashes of a recovery in acceleration.”

Particularly encouraging, the report added, was the growing availability of credit, with only 28 percent of respondents citing a lack of access to credit as a reason for their bumpy starts in 2013 and into 2014; this compared to 45 percent of new business owners who named lack of credit as their biggest obstacle in 2012. While the freeing up of credit and those willing to lend money to small businesses is surely a positive sign in the years ahead, every company leader suffers through fears related to finding money, making money, and saving money or managing debt to cover any cash crunches (See the inset image from the Hiscox DNA of an Entrepreneur Report for their Top 5). We provided some of this guidance on how to secure money and increase cash flow quickly in our eCapital Cash Infusion Guide. As a refresher, here are some of the options you have at your disposal, each with a wide range of pros and cons.

• Usecreditcards• Askforloansfromfamilyandfriends• Createanequitypartnership• SecurebankloansandSmallBusinessAssociation(SBA)loans• Slow-paysuppliers• Holdbackonpayingpayrolltaxes• Slow-payemployees• Offerquick-paydiscounts• Pesterforcustomerswhopayyoufaster• Factor invoices, also known as getting paid now for money you’re owed by a third party for a small fee

The Year Ahead: Biggest FearsBase: All respondents

Government will not support small businesses

I/We will not be able toattract new customers

I/We will have to pass costincreases on to customers

I/We do not have the financialresources to keep my/ourbusiness going

The rising cost of debt

38%

35%

34%

31%

21%

The Hiscox DNA of an Entrepreneur Report 2013” page 6

4

This is by no means an exhaustive list, but you do have a financial toolbox at your disposal for surviving the cash crunch if that’s what you need to do. That said, nobody starts a business to simply survive. You got into business to reduce your stress, call your own shots and become more financially secure in the process. You want your company to be sustainable in the short and long term, with as few ups and downs as possible.

Thankfully, you’re not alone. People

have walked in your shoes and come out

the other side with either a life lesson or a

mistake they swear they’ll never repeat.

In the pages that follow on

money management tips, tools, and

time-savers, we’ll share some of that

advice so you can have it ready to apply

when opportunity strikes.

INTRO

5

MONEY MANGEMENT TIPSFOR SMALL BUSINESS OWNERS

1

6

Fromourexperience,startingyourinformationgatheringwithawell-definedonline search or posing questions in applicable online forums or groups in places like Quora or LinkedIn can not only provide good guidance but also grow your network of small business owners who are fighting through similar problems.

Another advice filtering method is to look for patterns or commonalities in the advice being shared. As it relates to managing your money, prevailing wisdom on business success conveniently syncs up with the clients we have who have been the most successful. All seem to have:

1. A business plan to help them stay focused, measure success, and revisit the blueprint when new opportunities arise. There is some debate onthevalueofawell-craftedplanversusjumpinginwithbothfeet, but one thing all experts seem to agree on is the importance of a business planifyouneedtoseekfundingfromathird-partylikeabankorprivateinvestor.

2. A marketing plan that details how you intend to put your business plan into action. Nothing ensures a healthy, financially stable business like a proven plan for turning prospects into customers and keeping customers happy.

3. Cash on hand to weather shortfalls and plan for the future is critical, according to Daniel Kehrer, founder & managing director of BizBest Media Corp. “One of the biggest mistakes growing businesses make is to run out of cash,” he said. “Having cash on hand is critical for staying afloat and continuing to grow.”

What are some tactics you use to help manage your cash flow?Here’s what some of your peers on LinkedIn groups had to say:

“In my experience the only adequate financing for a rapidly growing business is asset based, namely factoring or working capital advances. Cash flow is essential for growth, and if your profit margin is strong enough then you can live with it when demands require it.”

-William Bartus, Owner of Bartus Auction Mgt. Group

“Here are a few tips that might get you out of a jam. In the case of a service business (much of my history), you may be able to 1) offer a discount in exchange for faster payment 2) pay your staff overtime to deliver faster and push up invoicing, thus payment 3) adjust work schedules to move faster paying work through faster 4) temporary help from your bank - they respond much better when you give them good lead time. All of those options come with sacrifices but are better options than running out of cash.”

-Blaine Bertsch, Founder of Dryrun.com

“Negotiate 60-90 days terms from your suppliers. Require payment on delivery or before. Provide security to acquire low rate/long term cash to have adequate operating cash. Ensure your life focus is on the ‘Create Side’ of Consume<>Create.”

-James Johnson, Strategic Partner at International Resource Management Company

MONEY MANAGEMENT TIPS FOR SMALL BUSINESS OWNERS

7

4. A willingness to hire where you are weak. You can’t do it all. If you’re not a good salesperson, find one. If you hate administrative tasks or managing people, delegate to someone you can trust to stay on top of it. But as you know, hiring good people on a budget is easier said that done. Priority #1 if you ask Kehrer is hiring someone to manage your money if it’s not your strong suit.

5. At least a basic understanding of cash flow. While experts and owners alike seem to agree that hiring an accounting pro or back office vendor to crunch numbers or manage accounts receivable and payables is a good move, the one bit of advice that was also consistent was the suggestion to keep your own eyes on cash flow. After all, you’ll need a keen understanding of new business opportunitiesinthepipeline,closeddealsandtheirpurchaseterms,operatingcostsmonth-to-month,capitalexpendituresandanyseasonal fluctuations on the horizon so you can effectively meet payroll, pay vendors and make purchases to grow the business. If you need a boost, consider factoring or working capital advances.

The ingredients above have shown themselves to figure prominently in financially strong companies. Next up, is how these companies leverage technology to keep costs low, and streamline operations to achieve a quicker time to revenue.

Top Tech Tools for Small Business Success We don’t have to tell you that competition is fierce. Not only are you faced with keeping yournametopofmindwithprospectsandcustomers,butyoualsoneedtoout-thinkandout-executesomeofthebiggestcompaniesintheworldtowinconsistentbusiness.AsaresultoftheseDavidvs.Goliathbattlesbeforeyou,manysuccessfulbusinesseshaveout-maneuvered the competition big and small by investing in technology to simplify manual tasks and reduce the need for headcount.

As an example, according to a recent study by the Small Business and Entrepreneur Council, the small businesses that use mobile apps to help manage their operations are saving more than 370 million of their own hours and over 725 million employee hours annually.Basedontheamountofemployeehourssavedandtheaveragepayforsmall-business employees, the study estimates that small firms surveyed are saving and average of $275 per week, adding up to an average of over $14,000 per year.

MONEY MANGEMENT TIPS FOR SMALL BUSINESS OWNERS

8

So, what are they doing and how can you do it too?

In addition to exploring the Google Apps universe for free or almost free tools for documents, email applications, and more, this list from Forbes of 30 Terrific Tools for Small Businesses covers everything from affordable cloud storage to small business legal services.

And if that isn’t enough, Ilya Pozin, CEO of Open Me, as well as a columnist for Inc. and Forbes, suggested these “to boost your small business.” Those still around today include:

1. Evernote 5. Expensify

2. Google Drive 6. Asana

3. Tripit 7. InDinero

4. LocalVox 8. Square

Suffice it to say, there is a veritable cornucopia of new technologies reportedly designed to address cost containment and business efficiency concerns.You’llalsohavenoshortageoftaxappadviceheadedyourwaypriortoeveryyear-end.(Agoodone,bythewayfromBusinessNews Daily is “11 Tax Solutions for Small Businesses.”)Forthisfact-findingmissionandothers,youjusthavetoknowwhatyou’relookingfor.Your personal and professional network, as well as a comfort with asking questions of business owner peers in online forums, can be really usefulforfindingthebestappsandtoolsforthejobathand.

MONEY MANGEMENT TIPS FOR SMALL BUSINESS OWNERS

9

TIME MANGEMENT TIPS & TOOLS TO STAYING SANE AND IN CONTROL

2

10

As a small business owner, your time is rarely your own. Recent studies indicate thatamajorityofyourtimeisspentincrisismanagementmode,fightingfiresacross several work disciplines like human resources, IT, sales and marketing. If that’s true for you, time is definitely not on your side at the moment, but it doesn’t have to stay that way. If you want time to think, plan and guide your business towardlong-termsuccess,it’sreallyassimpleas:

• Organize&Prioritize• Focus• Delegate

But like exercise and eating right, being an unyielding manager of your own time may be one of the most difficult things you tackle each day as a business owner. In this chapter, we’ll share our research as well as the insights of other business owners and experts on time management to shed light on the role time plays in business sustainability. If we are successful, the words “I don’t have time” should be followed by a slight pang of guilt and the review of the bullets above for guidance.

Something on which owners and experts all seem to agree: You need to cut out or minimizedistractions,organizeandprioritizeyourtimeanddelegatenon-revenuegenerating tasks to someone else. In the remaining pages in this chapter, we will share time management tips (known most recently as Productivity Hacks or Life Hacking)andthesoftwaretoolsouttheretodaythatbusinessownersjustlikeyouswear by to keep themselves as peak performance levels for every minute they areontheclock.Ifyouhaveafavoritetip,toolortime-savingtale,shareitwithusand we’ll pick our favorites to feature in upcoming blog posts.

“Time is really the only capital that any human being has, and the only thing he can’t afford to lose.”

– Thomas Edison

“Time is at once the most valuable and the most perishable of all our possessions.”

– John Randolph

“The bad news is time flies. The good news is you’re the pilot.”

– Michael Altshuler

TIME MANAGEMENT TIPS & TOOLS

11

Getting time back on your sideAs small business owner you spend more time working, on average, than your big business counterparts by managingthreetosixjobrolesatanyone time. You are also working more hours and getting less sleep, according to a 2012 Manta wellness survey of 1,300 Small business Owners.

We’re also pretty sure you’ve noticed that there is a lot more to be distracted by in the digital age. Reportedly, time, or the perceived lack of it, even has a price you’re willing to pay to get it back – up to $500 per hour! All that being the case, putting in more time to make up for distractions isn’t the key to a happy life or a healthy business. In fact, Robert Craven, a business development consultant, author and founder of The Directors’ Centre, tells business owners that logging more hours is neither a measure of success nor a badge of honor to wear with pride.

“Some owners mistakenly believe that working long hours is the key to success, when they should be working smarter not longer,” he says. “Many owners … get bogged down in menial admin tasks or spend their time doing what they want to do, rather than what the business needs them to do – usually sell.”

Craven adds that social media diversions, procrastination on the tasks we loatheandanunwillingnesstodelegatetoskilledstafforvendorsaresomeofyourbiggesttimekillers.Healsopointsafingersharplyathigh-effort/low-rewardcustomersasthosetominimizetimecommitmentstooravoidaltogether.

“Concentrating your efforts on higher-value customers can generate more revenue and save you lots of time,” he said.So…withthesethreetosixjobsyou’resupposedlyjuggling,high-maintenancecustomersanddigitaldistractionskillingyourbottomline,what is the perfect balance to strive for as an owner?

TIME MANAGEMENT TIPS & TOOLS

12

There are many opinions on how to maximize your time, but a common misstep that wastes it is being consumed by the immediate crisis at the expense of the future. Small business owners – by the nature of their many hats, smaller hiring budgets and take-chargedemeanor–tendtofocusoncrisesinsteadoftheirvision,accordingtoJim Parrish, coordinator of the Florida Small Business Development Network. He adds that many answer to the “squeaky wheel” regardless of its lack of impact on the future financial balance of the company. To overcome this Parrish recommends that every business owner take 15 to 20 minutes out of every day to sit down with his or her key advisers and ask, “What can we do today to make more money than we did yesterday?”

“This, to me, is the biggest secret in being a successful entrepreneur,” he noted in 5 Mistakes Small Business Owners Can Overcome “having a clear sense of vision and taking a regular amount of time daily to think about that vision.”

He also echoed the sentiments of owners and experts alike who touted the need to prioritize duties based on importance, amount of time required to complete, and the potential for delegation.

RajaMahendran, an International Strategic Business Consultant based in Switzerland, responded to our query on Quora by suggesting that business owners take that time Parrish calls for at the beginning of the day when you are at your freshest and before the distractions derail you.

“A small business owner’s time is often used up for the urgent and what must be done today and very little time dedicated on strategies to grow the business for the future,” he counsels. “One cannot find time to do the important one must allocate time for the future and count it as spent by doing it first thing in the morning before starting the business day.”

5 mistakes small business owners can overcomeAccording to Jim Parrish

1. Inability to hire, train, and motivate staff

2. Inability to communicate

3. Avoiding the use of professionals

4. Too much time spent on the wrong things

5. Lack of trust

Read more by clicking here.

TIME MANAGEMENT TIPS & TOOLS

13

Sound guidance, for sure, but what should you do if you don’t know where to start with organizing and prioritizing your time? Rest easy with the knowledge that other people have had the same problem and plenty of resources exist at the speed of a Google search.

Aframeworktoorganize&prioritizeyourtimeOneframeworkontheorganize-and-prioritizefrontworthyofyourtimeandattention is the Steven Covey-esqueFour Quadrants of Time model by Derek Lauber of Lightbox Leadership.

In these four quadrants, Lauber, a leadership coach and consultant to small business owners & entrepreneurs, organizes his time by activities directly tied to profit potential (Accomplish Time); tackling administrative tasks that are vital but don’t contribute to the bottom line (Activity Time); the time used to completely disconnect from business and recharge (Break Time); and Wasted Time, or the time he describes as “time (during your workday) that you spend ‘taking a break’, whenreallyitisscrewingoff,procrastinating,chit-chatting,scrollingthroughFacebook and allowing your distractions to take hold.”

Lauber notes on his site that while his percentages (50/20/25/5, respectively) are his goals rather than something infinitely achievable at all times for all businesses. Regardless of the business, he says it serves as a way for him to “get clear and stay focused on producing results for my business.” You can learn more about the process and detailed accountings of each quadrant here. What’s interesting is that it points to the administrative tasks in Activity Time as ripe for delegation – allowing you more time to accomplish things that drive revenue.

Oneapplicationthatcaughtourattentionontimeandhowmuchwe’reactuallyspendingitonrevenue-producingtasksversusadministrativeornon-productivetasksisRescueTime.

Accomplish Time

Break Time

Wasted Time

Activity Time

TIME MANAGEMENT TIPS & TOOLS

14

PuttingtimeunderthemicroscopeRescueTime’s mission is to help you understand your daily habits so you can focus and be more productive. The software runs in the background of your computer and mobile devices, noting where you spend your time and how long you are there. Then, it spits out a detailed report on what you did during a given day for you to measure against your goal. What’s more, the application allows you to micromanage your distractions on a dashboard by blocking access to places you go when your mind wanders. Definitely worth a look. Another technique for honing focus with its fair share of dedicated time management disciples is the Pomodoro Technique. Central to the Pomodoro Technique is using a timertobreakdownworkintointervalsof20-25minutes,known as Pomodori or ‘tomatoes’ in Italian, separated by short breaks. The method, common in the software design industry, is based on the idea that frequent breaks can improve mental agility. You can dive into Pomodoro here.

Do it or don’t – A simple view of delegation Youmaybeconvincedthatyou’reagreatmulti-tasker,butthedatasaysotherwise.Infact,arecentstudyontheissuefromtheUniversityof Utah WhoMulti-TasksandWhy?Multi-TaskingAbility,PerceivedMulti-TaskingAbility,Impulsivity,andSensation Seeking says if you truly feel that way you probably have less of a skill at managing many things at once and more of a debilitating lack of focus. Sure, there are harsh realities that come with owning a business. You don’t have unlimited budget or access to top talent that permit you to readily hire out all the things you hate doing and only focus on the things you like or are good at all day, every day.

A recent article by the payment processor Paychex offered up these as top excuses for not delegating:• “Ican’taffordtohireanotherperson.I’msavingmoneybydoingitmyself.”

TIME MANAGEMENT TIPS & TOOLS

15

• “IfIwantsomethingdoneright,I’lljustdoitmyself.”• “Idon’thavethetimetotrainsomeonebecauseI’mswamped.”• “Iliketooverseethingsfromstarttofinishtomakesureit’sdoneright.”• “Iwouldn’tknowwheretostart.WhowouldIgivetheseresponsibilitiesto?”• “ThingswouldbeeasierifIcouldjustclonemyself.”

Despite those realities and their excuses, however, a personal and professional inventory on what you want to do versus what you are good at and what the business needs is a great place to start.

Adds The Directors’ Centre’s Craven:

“People who build up a business from scratch often find it hard to let go, but they risk not contributing as much value as they could – as well as working in the business rather than on it. They need time to step back, consider the big picture and plan the best way forward. Introducing better systems and processes, as well as making full use of technology and other people can free up a lot of time for owners.”

The Paychex post How to Delegate Effectively: An Essential, Yet Overlooked Process in Growing a Small Business delivers key questions to ask yourself as a business owner about your business, its future and its current or future employees, before relinquishing a task to someone else. The most important thing, the article says, is to write it all down.

“Putting everything to paper can help put things in perspective. Often business owners or managers may not even realize how much time they are spending in an ‘employee’ role rather than a managerial mindset. And while it may make sense for a business owner ormanagertojumpinandtakeovertheroleofanemployeewhoisnolongerwiththecompany for financial reasons—how long do they plan on doing it for?”

You sell your invoices to a factor

The factor advances up to 90% of the invoice in 24 hours

The factor collects the full invoice amount from the debtor

You receive the remaining amount, minus a small factoring fee

1 YOU

2

How FACTORING WORKS

FACTOR

FACTOR

3

YOU

FACTOR

4

DEBTOR

FACTORYOU

Want to learn more? Give us a ring. 800.705.1500eCapital.com

Delegate Accounts Receivables for cash now

with factoring

TIME MANAGEMENT TIPS & TOOLS

16

Onepopulartargetistakingadministrativeandaccounting-basedtasksofftheowner’splateandinthehandsofprofessionalsonsiteoroffsitesoheorshecanrefocusattentiononsomethingthatismoreowner-worthy.MelindaF.Emerson,knowntomanyas @SmallBizLady on Twitter isoneofAmerica’sleadingsmallbusinessexperts--andasuccessfulentrepreneurinherownright.

She says every small business owner should outsource these five tasks right now to “avoid the things you hate and probably aren’t any good at” so you can get on with the business of closing business.

1. Bookkeeping2. Payroll3. Social media outreach4. Administrative support5. Marketing

“If you outsource two or three of these functions, the consultant will pay for itself in no time,” Emerson noted in this post. “Do your research, checktheirreferencesandaskforreferralsfromfellowsmallbusinessownersbeforehiringanyone.Onceyoustartoutsourcingafewnon-critical tasks in your small business, you’ll wonder why it took you so long to do it.”

Suffice it to say you can and you need to manage your time better to have a shot at a healthy life and a successful business. We hope this section on Time Management Tips and Tools gives you the fuel you need to battle distractions and stay focused on the business end of your business.

Below are other resources on time management and productivity we discovered during our research that could come in handy for you in the days, weeks months and years ahead. If you need help with securing the money you’ve already earned now, be sure to reach out to a representative at eCapital at 800.705.1500 or contact us here, to learn more about factoring and other services we provide to help your business.

ClickthelinksbelowformoreProTipsandToolsonTimeManagement:• Blog post: Productivity Hacks: 60+ Influencers on How to Work Smarter• Harvard Business Review’s 10 Must Reads on Managing Yourself • TopFreePicks:TaskListsandTo-DoManagers• 5+1 Ways to Delegate Effectively Without Micromanaging • National Federation of Independent Business (NFIB) Organization & Time Management Resources

TIME MANAGEMENT TIPS & TOOLS

17

TIPS TO HIRING GOOD PEOPLE AT THE RIGHT TIME AND KEEPING THEM

3

18

In the previous chapter, we made the case for delegating duties as a way to keep you and other small business owners focused on building a strongcompany.Theideaofbringinginhelpsoundslikeano-brainer,butfinanciallimits,thetimeittakestoestablishtrustwithpeopleandthe cost of makingabadhiringdecisionhoveringbetween$25,000-$50,000 certainly doesn’t make it an easy decision.

Butagain,thisisn’tuncharteredterritory.AccordingtotheSmallBusinessAdministration,businesseswith1-500employeescurrentlyemployhalfoftheU.S.workforce.Youshouldtakecomfortinthosenumbersthathiringemployeesorsharingtheloadwithhigh-caliberbusinessvendors is a sign of a positive growth. Small business owners who suggested to us that successful staffing or outsourcing requires a process for when to hire, outsource or do it yourself.

In this chapter, we’ll reveal answers to these questions from the people who lived through the growing pains and pulled through with a healthier business as a result.

Laura Vanderkam, a frequent contributor to Fast Company and author of “What Most Successful People Do Before Breakfast,” and “168 Hours. You Have More Time Than You Think” suggests that knowing when to hire someone versus toughing it out yourself boils down to these five things (amended a bit for those of you going it alone):

1. Sales are growing like crazy2. You’re deep in the weeds 3. (You or) your people are swamped 4. (Youor)yourpeopledon’thavetheskillsforthejob5. You smell opportunity (to grab market share from competitors)

TALENT MANAGEMENT TIPS & TOOLS

19

In an article she wrote for CBS News “5 Signs It’s Time to Hire,” Vanderkam quotes RichArzagaofCalifornia-basedCornerstoneWealthManagement,whorealizedhewasspending 80% of his time on operational work, and the rest on what he was actually goodatandenjoyeddoing.Hemadeadecisiontotakeafewhourseachweekfindingnew clients, so he could pay the salary of an operations person to balance out those numbers.

AdamandMatthewToren,self-described‘serialentrepreneurs’andtheauthorsof“SmallBusinessBIGVision:LessonsonHowtoDominateYourMarketfromSelf-MadeEntrepreneurs Who Did it Right say that “when you wish you had more time to work on building your business, rather than simply maintaining it, you have a very good indication that it’s time to bring in help.”

It’s a tough first step, but once you’re willing to loosen the reins a bit and bring in a person or team of people to help you, experience tells us you’ll already start to breathe a little easier. Once the decision to act is made, experts suggest that your next hurdles to clear (in descending order) are: Identify what your business needs, find the right personforthejob,payhim/her/themwellandkeepthepersonorteamperformingattheir best so you can perform at yours.

Defining what you need Whilenoteverysmallbusinessisastart-upintheSiliconValleysenseoftheword, this recent article from Tech Republicsharedsomejewelsaboutwhatabusinessownershould do to determine business needs. One thing the article notes is that small business owners, supporters of the company and the people already on the team should “always be recruiting” so the company has known pool of top talent to pull from when the need arises.

The When, What,Who&How of Bringing in HelpAsk yourself these questions when you’re

considering hiring for your company:

• WhenshouldIhire or outsource a task?

• Whatdoesmy business need that I or someone onboard now can’t do?

• Whoistheideal candidate or business partner?

• HowcanIfind, convince and keep top talent?

TALENT MANAGEMENT TIPS & TOOLS

20

“To maximize your time, train and enable leaders within your organization to recruit for their own team members,” suggests Katie Hughes, director of talent at VC firm Draper Fisher Jurvetson.

“Referralprograms,function-specificrecruitingteamsandconsistentfeedbackmetricsarecost-efficientwaysI’veseenfoundersoffsetrecruitingresponsibilitiesbyempowering their employees.”

Inthecaseofmostsmallbusinesseswithoutadefinedtechnicaldisciplinein-houselike IT support or finance and accounting, the person ideal for a small business is a creative problem solver who gets things done.

“Everyone must deliver,” CEO and founder of Superfish, Adi Pinhas told the publication. “No exceptions. Founders should not be impressed with people with amazing titles (engineers, marketers or managers) nor from the big name company that they are coming from. Founders need to make sure that the candidates are ‘doers’.”

When you need to hire specialized talent, it would also be wise to see what you have in house or who in your professional network knows someone they can recommendbeforecombingjobboards,payingastaffingserviceordoingablindonline search for a vendor to help. As for when is the right time to hire a specialist, most experts say you’ll know when you get there, but that finance, accounting and legal services – whether you hire internally or outsource it – should be done at the start of any business.

Another recommendation on when to hire comes from TheSolutionsPlaybook:Top25Small-BusinessChallenges, the authors suggest, as an example, that a good benchmark for bringing on an IT services company is when the business grows to 50 employees.

ThisplaybookcreatedbyFedExforEntrepreneur.comisjam-packedwithguidanceonhowtostart,market,run,grow,sustainandstaffabusiness.

TALENT MANAGEMENT TIPS & TOOLS

21

HowtoAffordtoPayforEmployeesorServicesAfter you’ve honed your focus on what your business needs in terms of talent or services support, the next task at hand is to figure out how to pay these doers and specialists a fair wage or other benefits that keep them happy and motivated.

Many small business owners begin this process the same way they solve other challenges,astheycomeup,project-by-projectorcriticalneedbycriticalneed.Asaresult, most usually owners start their foray into staffing by sourcing contractors, temp workers,internsoroutsourcingjobstoserviceprovidersoragenciestokeeptheiroverhead low. After all, employees often request health benefits, office space, and highersalariesthatmostemergingbusinessescan’tafford.Havingacontract-basedworkforce or outsource partners takes the high upfront costs out of the mix and allowsthebusinesstomoveaprojectorprojectsforwardtobookrevenue.

It’sacommonapproach,butKevinHartz,CEOandco-founderofSanFrancisco-basedevent-promotionserviceEventbrite,toldtheauthorsoftheFedExPlaybookthat it comes at the price of building a culture of loyal, dedicated and invested employees who buy into the owner’s mission and passion.

“To 1099 people (i.e. use a vendor or freelance talent) means you don’t value them as owners and partners in the business,” says Hartz. “You 1099 service providers like consulting shops, not the team members you want to work hard for you and help you build the next great thing.”

Onewaytogetaroundthe1099employeeissue–andpotentiallynabyourselftop-endtalentwhenyouhavebudget–isworkwithasourcingfirmthatspecializesinpart-timeplacements.LauraSmoliar,aglobalentrepreneurandwriterforpublicationssuchasInc.,detailsinHow to Hire People You Can’t Afford not only some of the businesses that specialize in sourcing executive or technical talent part time, but the other benefits, such as having these companies manage the taxes and paperwork of your employees. “Whenmanagedwell,theflexibleworkforceapproachisawin-winforthesmallbusinessandtheirstaff,”shesays.“Itallowssmallbusinessestoremaincompetitive,andallowshigh-valuecontributorstodotheworktheylove.What’snottolike?”

TALENT MANAGEMENT TIPS & TOOLS

22

Other great resources to help you find and keep good people at your company:

• Hire&RetainEmployees-Small Business Administration

• SmallBusinessHiringGuide| Monster.com

• TalentMagnetism:HowtoBuild aWorkplaceThatAttractsand Keeps the Best

• RobertaMatuson’sBlog

• WorkforceMagazineOnline– Topics

• 12BooksEveryLeaderShould Read:Updated–PostinBob Sutton’sblogin‘WorkMatters’

• GoodBoss,BadBoss:Howto Be the Best...and Learn from the Worst

When it’s Time to Go All-In for Top TalentOnce you have a crew of reliable contractors and agencies helping you keep things moving it may be the right time to start thinking bigger. If you’re trying to get away fromtasksyouhate,aren’tgoodatorarepullingyouawayfromrevenue-orientedtasks,hiringpeoplein-housetohelpyourealizeyourdreamallowsyoudodelegateand focus. The challenge lies in being able to find and hire the people you want.

Staffing experts, small business associations and creative bosses offer a mix of companyownershipthroughprofit-basedincentiveprogramstobumpuptake-homepaywhenthebusinesscanaffordit,andachancetoworknon-traditionalhoursfromwherever an employee chooses to work.

Other ways to attract top talent – in some cases away from larger companies or competitors – is to give prospective employees what they desperately want along with as much money you can afford to pay. In most cases, that means actually getting to know your employees – or hiring someone who really cares about human relations – to have an inside track on what motivates your people as much as or more than a paycheck.

Sometimes a good mission, with a business truly serving an unfulfilled market need andapromiseto“changetheworld”isallittakestogetcorporate-wearyworkerstojoinyou.Anon-corporateenvironmentwithanopenfloorplan,afoosballtableandother work/play amenities can go a long way.

Another great resource for attracting and keeping the best and brightest is Roberta Matuson, a Fortune 500 consultant known as “The Talent Maximizer.” In her book, “Talent Magnetism: How to Build a Workplace That Attracts and Keeps the Best,” Matuson shares her blueprint and “new rules of workplace attraction and retention, helping you and your organization develop irresistible talent magnetism.”

TALENT MANAGEMENT TIPS & TOOLS

23

Whatstruckusasequallysoundadviceinan“in-your-face–style”comesfromVerneHarnish CEO of the executive education firm, Gazelles Inc. In his Fortune piece How to attract and keep motivated employees, he delivers his top 5 with some straight talk:

1. Crank up your marketing engine “At a growing company, your marketing team shouldn’t focus only on attracting customers. You need to get onto the radar screen of your ideal, target employees, too. The key is to sell your vision and to stop worrying if you can’t pay top dollar.”2. Don’t hire clones Time after time when I visit companies, I see a bunch of employees who dress, sound, and think the same way as the CEO. Your team should be more like the motley crew in a heist movie – experts who excel in different areas and bring unique perspectives, not a bunch of interchangeable generalists.” 3. Create an environment where great people thrive “Instead of worrying about how to motivate your most talented employees, focus on keeping the stupid stuff out of their way. Ask them at your daily or weekly meetings what roadblocks they’re hitting and clear them, so they get their most important work done. Leaders should focus on stomping out inefficient processes and bad management practices if they want to keep talented employees engaged.”

HarnishencouragesleaderstoInterview,rateandscorecandidatesbasednotjustontheresponsibilities you need them to fill, but also the outcomes you need them to achieve. He recommends a scorecard and method based on the book Who by Geoff Smart,co-creator of the Topgrading hiring system.

Ask these questions and hold yourself to a process for when and how to hire• When should I hire?

• What roles should I hire for or outsource?

• Who is the ideal candidate or service provider?

• How do I find, finance, and keep top talent? talent?

TALENT MANAGEMENT TIPS & TOOLS

24

SO, LET’S RECAP

4

25

As we suggested earlier, we are convinced that the numbers don’t lie. You are a big deal. Your business and other small businesses in the U.S. and around the world are the innovators and change agents that bring new ideas, processes and promises of a better life to market. We also know that if you are successful in managing your cash flow, your time and your talent, we will also continue to be a successful company.

What we learned from this exploration of the mind and in the decisions of a small business owner is you’re working too hard, on too many thingsatonce,andbeingpulledintotoomanynon-revenueproducingtasks.

We set to share what your peers and other small business consultants say help redirect your focus and get you the help that you need to grow your business. What we learned is that despite the myriad tasks, details and other things that drive you crazy, you can boil it down to three things small business owners need to manage well to be successful.

1. Money SmallbusinessownersintheeCapitalfamilyandotherswecontactednotedthatgrowth-orientedmoneymanagement strategies required: a. A business plan to help them stay focused and measure success b. A marketing plan that details how you intend to put your business plan into action c. Cash on hand to weather shortfalls and plan for the future d. A willingness to hire where you are weak e. At least a basic understanding of cash flow (FYI: Profit does not necessarily equal cash flow)

2. Time Get time back on your side by only focusing on revenue producing tasks, and delegate to the experts: a. Minimize distractions b. Organize and prioritize time

3. Talent Delegating equals hiring top talent and building a process for when, why, how and who to hire when you are ready to pass the baton. If you’re ready to hire, the advice of Verne Harnish ring particularly strong: a. Crank up your marketing engine to be attractive to new hires b. Don’t hire people like yourself, but people you need c. Create an environment where great people thrive

MONEY, TIME, AND TALENT MANAGEMENT RECAP

Have a question? Need some advice? Give us a ring. 800.705.1500

26

This is what our successful small business owners are doing to grow and thrive, but we know this isn’t the only way to build and maintain a strong company. Share what you’ve learned and we will make sure your voice is heard.

We hope you find this eBook truly useful now and in years to come for overcoming challenges and meeting your goal of maintaining a healthy business and a rewarding career at the helm.

MONEY, TIME, AND TALENT MANAGEMENT RECAP

WANT TO CONTINUE THE CONVERSATION? CONNECT WITH US!

@eCapitalUpdates

Have a question? Need some advice? Give us a ring. 800.705.1500

eCapital.com | 800.705.1500

27

ABOUT eCAPITALAt eCapital, we know the needs of small businesses. We work them every day to help improve cash flow, position them for growth, and drive new

revenue through our alternative financing solutions. This eBook imparts some of the knowledge we’ve gained over decades of helping our small business clients manage their accounts receivable and improve their cash flow.

It’s as simple as that. This is our passion. The reason we exist.

Learn more about us at eCapital.com or by calling 800.705.1500.

Have a question? Need some advice? Give us a ring. 800.705.1500