By Maxine McBride    

If any aspect of life at the office makes workers elicit a feeling of dread, it’s the countless number of meetings they must endure. Today’s businesspeople spend at least 25% of their working hours in meetings, and the higher you rise in the company, the more meetings you attend. People generally dislike meetings, but done right, meetings can be productive and even fun.

Here’s how to make the most of them—whether you are an attendee or the leader.

1. Arrive five minutes early. Get everything organized before hand, including your papers, reference materials, and technology. Say hello to each person in the room and others as they join.

2. Prepare. Preparation is the key to being a good meeting leader and participant. Give all attendees an agenda 24 hours prior to the meeting. This will allow them the time to think about the meeting’s purpose and discussion items.

3. ‘De-connect.’ It is inconsiderate to ignore the meeting while you catch up on your e-mail or play on your iPhone. If you must have a phone with you, put it on vibrate. Don’t check e-mail. Don’t text. And don’t use your phone as a clock; wear a watch. If you must take a call during a meeting, let the group know at the beginning of the meeting you have an important call that may come. Seat yourself at the door so you can leave quietly.

4. Start by ending. If you are leading the meeting, start by stating what time the meeting will end. Use the agenda to stay on track.

5. Take action. At the end of the meeting confirm tasks that need to be completed. Schedule individual or group follow-up meetings and discuss contingency plans as needed. After you leave the meeting, immediately take action and follow through on assigned tasks. If you were taking meeting notes, distribute them within 48 hours after the meeting.

6. Be aware of facial expressions. Seven universal emotions are hardwired into human beings—surprise, fear, anger, sadness, disgust, happiness and contempt. Since your face is what most people see when you are in meetings, learn more about your facial expressions and how to work with them. If you are unable to control your facial expressions, you are an open book to others in the room.

7. Watch body language. The language of the body is another important element to master for meetings. Here are some gestures you will want to use in your next meeting to convey your thoughts physically. “Yes” gestures include open palms, forward leaning, smiling, direct body orientation, enhanced eye contact and head nodding. “No” gestures include folded arms, tapping or fidgeting, hand holding up the chin or hand over the mouth, hands on the knees, constant eye movement and squinting, shaking your head, and a scowl. “Maybe” gestures include taking a sip of a drink, biting the tip of eyeglasses, cleaning glasses, scratching of the head and chin stroking.

These are just a few suggestions for mastering the art of corporate meetings. Remember that preparation and participation are the biggest factors that will make or break your next meeting.

Maxine McBride is the president of Clockwork Marketing Services, Inc., a full-service marketing firm She can be contacted at 904-280-7980 or at www.clockworkmarketing.com

By Steve Waterhouse   

Experts say the economy is going through a warming trend. Consumers are starting to spend more, but not enough for companies to justify adding staff. So, to meet increasing demands, you have to know how to get more out of your existing workforce. 

The problem is simple: You can’t do more with less if the “less” aren’t better than they were before. Trying to squeeze more out of the same employees, using the same methods, will only leave you frustrated.

Smart managers know that by working with employees more effectively, they can drive up sales and productivity, without expanding their staff  or burning out their current teams.

Unfortunately, employees are individuals, and each person responds to a different type of management style. This means that you cannot improve your company’s performance by using the same style for all employees.

How to treat whom? That’s the secret. Let’s look at an overall performance-improvement strategy as well as one for the sales department, which is (of course) the group who boost your top line.

An overall strategy

Remember that not every employee learns, becomes motivated, and responds to incentives the same way. Five changes to your leadership style can get more out of your employees, no matter their job function.

• Communicate better. Managers typically think their communication efforts are better than they really are. Here are some simple tips on improving your employee communications: Spend one-on-one time with each employee at least once a week. Never use e-mails for important information. Be open to receive constructive criticism. If you let your team offer suggestions (without fear you will chew them out or put them down), they will be more likely to listen to what you have to say.

• Improve the work environment. Studies have shown that employees who are happy at work perform better. Regularly do things (which don’t have to be expensive) to make the work environment both interesting and rewarding. For example, order pizza for your employees every Friday or run simple contests at work with a gift card or movie tickets as the prize. Whatever incentive you use, make sure it is something that is enjoyable to employees and that they are motivated to participate.

• Show appreciation. Employees want to feel appreciated and know that they are making a difference. Reward employees for jobs well done by sharing customer appreciation statements with them, showing them the pride you have in their work, and displaying their positive results for all other employees to see. If employees take pride in their work, they will consistently deliver better results.

• Avoid burnout. Burnout often occurs when stress is high and/or employees work at the same things without learning anything new. Preventing burnout in employees is not a matter of giving your employees less work (although that may reduce stress). It’s a matter of allowing for balance between work and home.

Employees who work seven days a week and have no time for leisure burn out quickly. Encourage your staff to do things outside of work that they find enjoyable, and provide the opportunities to do them.

• Be flexible. One of the biggest motivators you can offer employees is flex time. If you properly recognize that they have lives outside of work, you should provide reasonable flexibility to their schedules. Understand that their personal life is a priority, and at times, they should be able to work around it.

Productivity improvement for sales

The productivity of your sales department is a leading indicator of performance. A large disparity between your best and worst sales person means your managers are reaching only part of the team.

Three simple changes in the way you and your sales managers deal with your sales team can go a long way in improving their productivity.

• Get out of the way. Your sales team should focus on what they do best— selling. Filling out long reports or answering customer service calls takes away from making sales. Managers should do some of these tasks themselves, or hire support staff to handle them, so that sales people can sell.

• Give good leads. Any sales person will produce better results if they are given better leads. Create more effective advertising and marketing campaigns or consider hiring telemarketers to develop qualified leads. These things will increase the chances that each prospect your sales team approaches is a good fit for your product or service. Then they can close the deal.

• Support. Support. Support. Be there for your sales team to help them close opportunities. It’s the job of every manager and business owner to be the one to do everything that’s needed to make the final sale happen. Don’t rely on your salespeople to do everything and then criticize them when they fail. Instead, step in as early as possible and give as much help as they need.

By including these principles in their sales-improvement strategy, one biotech company increased its sales by 44% over two years. Restructuring the way in which managers and their sales team work together can produce dramatic results.  

Making these simple changes to your management style will increase sales and improve productivity from your employees. You will also gain their respect and loyalty.

Steve Waterhouse is president of Jacksonville-based Predictive Results (www.predictiveresults.com), a division of PI Worldwide. Predictive Results uses behavior and personality assessments to determine the best ways to improve employee performance, strengthen manager-employee relationships, and make hiring decisions. he can be reach at 904-269-2299, ext. 102.   

SIDEBAR

Customer-focused selling

Gaining new customers costs more than keeping current ones. There are five steps of customer-focused selling that sales people can use to help build long, lasting relationships with customers.

1. 1.      Be open. Build trust and credibility with customers.
2. 2.      Investigate. Identify a customer’s needs.
3. 3.      Present. Articulate the value you can bring customers.
4. 4.      Confirm. Agree to move forward with the sale.
5. 5.      Position. Create a customer for life.

By Robyn A. Friedman    

The staff at American Electrical Contracting Inc. believes in sustainability. They monitor the thermostat, use occupancy sensors to cut the lights in unoccupied areas of their 12,000-square-foot building, have energy-efficient lighting, and recycle not only the firm’s trash but also old lamps and wire removed from completed client retrofits.

Toby Williams

“We started going green about three years ago,” said Toby Williams, a manager for the Jacksonville-based residential and commercial electrical contractor, which has about 65 employees.

Going green has done more for American Electrical than just giving its staff a “doing good” feeling. The firm is saving money too. “Probably 10% to 15% on our energy bills,” Williams said.

American Electrical is just one of the multitude of small businesses now adopting green principles. According to a report released in November by Siemens and McGraw Hill Construction, corporate America has integrated standard sustainability practices—such as recycling, green building, employee engagement, and partnering with non-profits—into their cultures and everyday operations. The report found that 75% of firms view sustainability as consistent with their profit mission—a twofold increase over the past three years.

Not only do corporate executives view going green as a way to improve their bottom line, but more than three-quarters (76%) expect that sustainability efforts will help them attract and retain customers as well as drop the costs of doing business, the Siemens report said.

Ellen Leroy-Reed

“Small businesses can not only reduce their materials used but also see an actual profit increase from going green,” said Ellen Leroy-Reed, president of the North Florida chapter of the U.S. Green Building Council.

Of businesses that haven’t yet gone green, the most common reason is a feeling that it’s too expensive. But experts say that although there may be a higher upfront cost to do things the green way, over time companies usually save money.

In addition, small businesses can do many things to go green that cost little or nothing. For example, companies can reduce their environmental impact by implementing simple green practices such as printing on both sides of their paper or turning computers off at night. About $100 per computer per year can be saved if power management functions are properly used, according to Claire Woolley, an environmental specialist with Howard Ecker & Co. in Chicago.

Another common reason for avoiding sustainability, according to Leroy-Reed, is the belief that “going green is something only tree huggers do.”

“If we install aerated faucets in our building, we will use less water,” she said. “That’s not doing something for the environment. That’s not being a tree hugger. That’s just smart business.”

David P. Barley

David P. Barley, a CPA with Barley, Martin & Wild in Jacksonville, agrees. “In the past, managers improved the efficiency of their businesses by getting more out of employees, improving inventory handling and things of that nature,” he said. “Now businesses are starting to think how they can be more efficient with the use of energy.”

Barley suggests that small businesses compare the benefits of going green to the costs. “Yes, the cost may be more, but if you’re going to be able to reduce your replacement costs because things are more efficient, as well as reduce your energy costs, this outweighs the cost, lowers your cost of doing business and improves your bottom line,” he said.

Numerous tax credit and rebate programs encourage energy efficiency, both at the federal and state level. Many local utilities also offer financial incentives. A complete listing of all the programs and financial incentives is at the DSIRE (Database of State Incentives for Renewables and Efficiency) Web site, www.dsireusa.org.

What can your company do to go green?

Marie Hurst

• Recycle furniture and fixtures

. Marie Hurst, owner of GreenSpace Interior Design in Jacksonville, furnished her office with workstations and chairs no longer wanted by other firms. She also gets supplies from companies that are downsizing or going out of business. “There are a lot of corporations that close down, and nobody goes through to clean out the desks,” she says. “So you can get a ton of supplies—hanging folders, paper clips, staples—all that stuff is left behind.  I look at that as a great cost-saver to my business, plus there is the added benefit of preventing all those materials from ending up in a landfill.”

• Improve indoor air quality. Many studies have concluded that employee health and productivity improve with better indoor air quality. As air quality improves, so do asthma, allergies, flu, respiratory ailments and headaches, leading to less absenteeism. Consider doing the following to improve indoor air quality: Ban smoking in or near the office; avoid paint and cleaning supplies with volatile organic compounds (VOCs); change air filters regularly; increase the amount of fresh air inside by opening windows and doors; and test for radon.

• Incorporate green principles into your location if you build or renovate. LEED-certified buildings have lower operating costs—10% to 20% lower, according to Energy Star—and that increases operating income. Another plus: Some studies have shown that buildings with an environmental certification can sell for up to 16% more than a similar building without certification.

• Replace incandescent light bulbs with compact fluorescent lights (CFLs). According to the Alliance to Save Energy, CFLs use considerably less energy. An Energy Star-qualified CFL will save about $30 over its lifetime and pay for itself in about six months, while using 75% less energy and lasting about 10 times longer than an incandescent bulb. CFLs cost between $3 and $15.

• Turn off lights and computers when not in use. Even better, unplug dormant appliances to reduce stand-by power consumption. Power strips make it easy to switch off all devices in one fell swoop.

For businesses that haven’t yet incorporated green principles, the process may seem daunting. That’s why experts say to start small.

“Don’t look at this as a huge obstacle, or think you have to change every aspect of your business practices—choose one thing, make it a habit and then choose another,” said Leroy-Reed of the U.S. Green Building Council. “And then spread the word. If you’re a small business doing good things in your office, there’s no reason why your customers shouldn’t know about it.”

That too is good for business.

Robyn A. Friedman is a contributing editor to Jacksonville Small Business Advantage. She can be reached at RAFWriter@att.net or through her Web site www.everythingwrite.com

SIDEBAR

Survey: ‘Green businesses’ important to consumers

The “greenness” of a company earns its business for a lot of Americans. According to a recent Harris Poll, conducted online among 3,110 adults, 27% of those who are “most green” patronized a business because of its environmental activities, and 23% of that group avoided patronizing a business because of its environmental activities or lack of them.

And it doesn’t take a “tree hugger” to make a difference to a business. Eleven percent of those who were “least green” patronized green businesses, and 9% of the same group avoided businesses that were not environmentally concerned.

Respondents to the poll were divided into four groups—least green (23%), not very green (29%), somewhat green (25%), and most green (22%)—based on their responses to four questions (“describes me completely, very well, fairly well, somewhat well, not at all, very well/completely”):

• I am environmentally conscious.

• I am a conservationist.

• I am an environmentalist.

• I am “green.”

The most frequent environmental activities respondents engaged in during the last year included:

• Installed more energy-efficient light bulbs (63%),

• Purchased energy-efficient appliances (36%),

• Started paying bills online (46%),

• Switched to paperless financial statements (40%),

• Donated an electronic device for recycling (41%),

• Switched from bottled to tap water (29%),

• Installed a low-flow showerhead (17%) or low-flow toilet (16%),

• Made energy-efficient home improvements (14%),

• Bought a more fuel-efficient car (13%).

The year 2009 was not the best year for most people. “Now is the time to refresh your thinking and get ‘unstuck,’ ” GinaMaria Jerome, CEO of The Leadership Guild, told a sold-out crowd in a recent Knowledge Is Power breakfast workshop, presented by Jacksonville Small Business Advantage. Jerome shared seven proven success strategies with the group. She said she has used them with clients, but more important, she knows they work, because she has used them herself as a small business owner.

1. Frame your mind. What you conceive and believe, you can achieve, said Jerome, quoting Napoleon Hill. “If you don’t  believe you can do it, nothing will matter, she said. It all begins with your mindset, where you are coming from because where you are takes you to where you want to be.”

2. Set a bold money goal. You shouldn’t work just for the money, she said, but money is the means to achieve the things you really want in life. Emulate the big companies, she suggested; they set annual financial projections. When you do this, she said, “Be bold; be specific; and be real for you. Go for the gusto this year. Make it really big. You’ll get excited and so will your team.”

When you set a bold money goal she encouraged doing it in two ways: an annual goal, and a 90-day goal. The short-term goal will keep you focused, help you track your progress, and see the rewards of your efforts. These 90-day goals keep you moving by maintaining the momentum to propel you forward throughout the year toward your annual goal.

3. Create a strategic plan. Jerome explained that a strategic plan is not the same as a business plan. A business plan sets out specific results that are to be accomplished by the business. A strategic plan incorporates your vision and your mission, and describes what you are, what you can be, and who benefits from the business.

As you create your strategy plan, give yourself permission to think creatively and find innovative ways to earn revenues. One way to create this plan is with a mind map: In the center of a flip chart, write down your bold money goal. Then surrounding that goal, write down the different ways you can go about achieving your money goal. For each area, list a revenue goal.

When you have finished creating your strategic plan—which might be done in as little as 30 minutes, said Jerome—don’t keep it hidden. Post it in your office where you will see it and be reminded of what you’re achieving this year.

4. Get buy-in. Buy-in happens in three directions: down, up, and across. “You want your team to get on board with you,” she said. “The best way to make this happen is to get them on board from the beginning. Have them help you create your strategic plan. Have your team help you create your mission and your vision. When people are involved in that creative process, they own it and they become committed.”

You also want to get buy-in going up. “If you are the top, then your ‘up’ buy-in needs to come from your lenders or investors or someone close to you, such as your spouse.”

Finally, you also need buy-in across the organization. Large organizations get collaborative buy-in by getting the different departments, such marketing, manufacturing, and finance involved with the plan from the start. In your organization, you may invite your team members to a meeting to collectively, as a group, develop the strategic plan.

“Across” also means including your customers. To get buy-in from them, consider sending out a survey or conducting a contest. Ask them, “We’re getting ready to launch a new product. What do you think about this idea? How will it affect you?”

5. Design the supporting goals. Once you have your strategic plan and the buy-in you need, the next thing to do is to develop goals that will support your plan. When you write your goals, think in terms of outcomes, said Jerome. Then write SMART goals: specific, measureable, achievable, results-driven, and time-sensitive.

Write goals that can be achieved within a 30–90 day time span, she recommended. “People need a reward system. When you have a reward in place—your goal accomplishment—it helps you keep going.” Short-term goals also allow you to adjust your course if necessary.

6. Get into action. “The first five tips,” said Jerome, “are a top-down approach to strategic planning. Small business owners often think in on the level of ‘to do.’ We don’t always think strategically. So sometimes it is more effective for us to use a bottom-up approach to strategic planning.” 

In this approach, she explained, write down all of the things you have to do, then look at similar activities and roll them up together into big areas. Then set your goals—including a money goal—around those activities.

Strategic planning works either way—top down or bottom up, she said. The important thing is to think creatively to break out of the box you may find holding you in.

7. Get a support system. Accountability is key to turning a plan into results. Use a support system to make yourself accountable. Your support system might be a mentor, a buddy, or a coach. When you use this person, make sure you follow up with that person, said Jerome. “Find someone to be accountable to,” she said. “Making yourself accountable increases your chance of success tremendously.”

If you have employees, you probably need this insurance    

By Deb Eveson    

You have a lot invested in your employees; they are your most important assets. If they are unable to work because of a work-related injury or illness, not only do they suffer, but you suffer as well: All the time and training you have invested in them is lost, and you may have to train someone else to replace them while they recover.

One way your employees are protected is through workers’ compensation. Here is a primer on the basics of workers’ comp in Florida:

• What is workers’ compensation? Workers compensation is an insurance program that pays employees who are injured on the job. Payment includes benefits for all medical costs related to the injury and disability benefits if the employee is unable to return to work. But workers comp is not only for employees: It also protects you—the employer—from litigation relating to workplace injuries.

• Who must have it? Any non-construction Florida employer with four or more full or part-time employees must provide workers’ compensation insurance. Note, though, that although you are not required to carry workers’ comp insurance if you have three or fewer employees, you could still incur liability for covering claims from an injury or illness that is job-related.

If your company is in the construction industry and employs even one full or part-time employee, you must carry workers’ comp insurance. There are also specific requirements for farmers and state and local governments which may fall outside of these guidelines.

Several types of employees are not covered under workers’ comp insurance: domestic servants; workers on small farms employees that employ five or fewer regular employees and fewer than 12 other employees at one time for seasonal labor not exceeding 30 days; professional athletes; sports officials for interscholastic sports and public or private non-profit amateur, sports events; labor under sentence of a court to perform community service (DUI law); state and county prisoners unless working for private employees; and employees covered by the Defense Base Act

• What kinds of injuries are covered? Workers’ comp claims are paid based on the direct result of workplace activity, whether it is an injury, disease, or accident from the job. Claims can result from a variety of causes, such as disease contracted as a result of exposure on the job, accidental injury on the job, or other injuries from a work-related activity.

• Who counts as an employee under workers’ comp? An owner or operator may not be counted as an employee under certain circumstances. For example, a sole proprietor or a partner is considered to be the employer, not an employee. These individuals, therefore, are not provided benefits under the law. However, the law provides them the opportunity to elect to be covered by filing the proper election form with the Division of Workers Comp.

An officer of a corporation is an employee if the officer performs services for the corporation for pay. When the officer is considered to be an employee under this rule, the law allows the option to exempt the officer from coverage by filing the proper notice with the Division. Corporations in the construction industry can exempt no more than three officers and those officers must own a minimum of 10% of the corporation. For non-construction corporations, there is no limit to the number of exemptions allowed.

• How can you save money on premiums? The standard rate charged for workers’ comp is calculated on every $100 of payroll, based on risk classifications of your operations. A manufacturing environment, for instance, has a different rate from a business operating in an office environment.  

Certain modifications may apply when premiums reach certain levels. The Experience Rating Plan, which is mandatory for risks exceeding certain annual premiums, recognizes the prior loss experience of the risk and applies either a debit for unfavorable experience or a credit for better-than-expected loss results.

All aspects of rating are administered and enforced by the National Council on Compensation Insurance. The Council files rules and rates with the State Insurance Department, establishes classifications, promulgates experience modifications, and audits all policies for correctness under a rule requiring that a copy of every policy issued must be filed with the Council. 

• Any other requirements? Florida requires employers to place two posters in a prominent place where employees can easily access them. “The Broken Arm Poster” alerts employees of their rights under Florida law; you must place your insurer’s information on the poster. “The Anti-Fraud Notice” warns employees about workers’ compensation fraud.

You are also required to report all job-related injuries to the state within seven days of occurrence. 

• What’s the best rule for dealing with workers’ comp? Think safety first in preventing accidents and injuries to protect your employees and keep your claims and your premiums down. If you have employees, you need workers’ comp coverage.

Find an insurance agent you are comfortable with who has experience with workers’ compensation insurance. Use your business network to get referrals. Choose the agent with the experience and service delivery that best suits your business needs.

To download a copy of Florida’s Workers’ Compensation Guide, click here.

Deb Eveson is agency owner of Eveson Insurance Agency (www.allstate.com/debeveson), 12525 Philips Hwy, Suite 206 Jacksonville, FL 32256. She can be reached at 904-400-6450 or DebEveson@Allstate.com.

SIDEBAR

How can you minimize exposure to claims?

Since claims are made because of accidents and injuries, take proactive steps to reduce the opportunity for injury. In other words, think and “preach” safety—to everyone in your employment, whether they are in a job that has inherent risks or in a “safe” job, such as working in an office environment.

Consider the type of activities prevalent in your industry, and those that create an environment for potential hazards for employees. Involve your employees; they know their jobs better than anyone else. And, don’t tolerate short-cutting safety to get a job done faster.

Here are some suggestions to get your started:

• Vehicle safety. Provide a vehicle safety course. Conduct a safety checklist. Install backup alarms on trucks. Consider speed governors.

• Office environment. Involve employees in reporting safety issues they uncover in the workplace, such as slippery floors; ask employees to close desk drawers to prevent bruised shins and worse; don’t allow the use of extension cords to reduce fire risk.

• Keyboarding. Tell employees to stretch and move from their desks every few hours. Provide ergonomic chairs; train employees how to use them properly. Set up work stations for proper keyboard use.

• Manufacturing. Thoroughly train employees on how to safely operate equipment. Issue safety glasses and hearing protection and enforce their usage. Convene a safety committee; get employees involved in identifying and eliminating risks. Run regular safety inspections; correct problems immediately.

By Cathy Bracken    

A commonsense business rule is “make it easy for customers to pay.” Credit cards do that. So do other non-cash forms of payment, such as debit and purchasing cards. All of these things increase customer satisfaction and contribute to increased business volume.

These electronic non-cash transactions are processed through a merchant account, facilitated through  point-of-sale (POS) solutions,  only offered by merchant services providers.

The goal of a merchant account is to facilitate fast, reliable cash flow. Almost all types of businesses—even nonprofits— can qualify to have a merchant account, provided you have a business checking account and satisfy the processor’s underwriting credit guidelines. The size of your business really doesn’t matter.

To decide what kind of merchant account or POS solution is right for you consider asking the merchant services provider these questions:

• How do you want to process transactions? It is important to select the right POS solution(s) for your business. For example, a brick-and-mortar business may best benefit from a traditional retail POS merchant account—using a swipe terminal. But if that business also conducts transactions on the Internet, through mail order or telephone sales, or on-the-go, it would need additional types of POS  solutions.

Hint: Work with a merchants services professional who will customize a POS solution to meet your unique needs. There is no “one size fits all” solution in merchant accounts.

• Do you want to lease,  or buy your POS solution? Talk with your merchant services provider about the advantages and disadvantages of owning vs. leasing POS solutions.

• What do you get for the money? POS solutions come with fees. Ask questions to get the full picture about the services and their costs. Is there a set-up fee? Monthly service fees? You have a right to understand fully your merchant account services, how the transaction process will work for you, when you will be funded, and who you are paying each month.

• What are your risks and responsibilities? Ask about your responsibilities in having a merchant account, and find out if there are some types of transactions that carry a higher  risk  of chargebacks and what you must do if you process these types of transactions.

• What other services can be added to the merchant account? Most merchant service providers offer other value-added services, such as electronic check processing, as well as gift-card, specialty-card, and loyalty-card acceptance. 

• How much will a merchant account cost? The merchant account pricing options available today allow for you to be custom-fitted for services based on who your customers are and what types of cards you accept. There are three basic pricing programs— flat-rate pricing, break-out rate pricing, and interchange pass-through pricing. All three offer cost benefits, depending upon your business:

Flat-rate pricing is the most traditional type of pricing program. This pricing program is best for low processing merchants that accept only consumer credit cards. The program is the easiest to understand and reconcile on your monthly statement. It is still very popular, and the most widely marketed to date. If you are considering this type of pricing program, ask for rate detail and fine print in this pricing program to make sure it is the best fit for you.

Break-out rate pricing prices each transaction by the basic card-type categories— non PIN debit check cards, credit cards, reward cards, and commercial cards. These categories are cross-bucket into transaction types as well. Those transaction types are called qualified, mid or partially qualified, and non-qualified transactions. Depending on the processor, you may have from three to 12 different rates for Visa, MasterCard and Discover Cards in all the available categories the processor offers. Each card brand can have a different applicable rate for the card and transaction type categories.  Although it sounds complicated, this type of pricing is excellent for most merchants.

Interchange pass-through pricing prices each transaction at its base cost then adds a processing mark-up.  With more than 160 categories a single transaction can bucket into, this pricing program assures the greatest flexibility in processing venues as well as the most accurate lowest per transaction cost versus the standard averaged costing methods traditionally used.  Interchange pricing is the pricing method of choice traditionally reserved for high transaction volume merchants who accept many types of bankcards originating from several card issuing banks.

Work with your merchant services provider to create a win-win in providing the best processing services and POS solutions at a cost that makes sense for your business.

• What kind of commitment is required? Signing up for a merchant account is easy. There will be an application containing a contractual agreement, with some fine print that usually has a length of term provision and early cancellation penalties. Review the fine print carefully before signing the agreement. It’s also a good idea to inquire about the circumstances, if any, under which you may request to have fees waived.

Before your application is accepted, you will be required to provide basic business documents such as a company check, a business license, Web site(s), and marketing materials to support information provided on the merchant account application.

Merchant services are a great value to businesses. With so much uncertainty affecting businesses today, you can better prepare for future growth and prosperity by strengthening all processes within your control that are certain to yield improved cash flow. 

Cathy Bracken is the CEO of Cyberauthorize.Com (www.cyberauthorize.com), a 10-year-old local merchant services provider that services merchants nationally. She can be reached at 904-564 1228, Ext 204.

By P. Douglas Filaroski    

Attorney Ray Driver remembers a call from a small business owner he considered more than just a client.

“He said ‘I just wanted to let you know I terminated a contract with a vendor and now they are suing me,’ ” said Driver, who wished he’d had the chance to advise his client before the client made such a drastic and ultimately business decision that turned out to be very expensive.

For small business owners, maintaining a close relationship with the legal, financial, tax, and other professional experts they hire for services is one of the keys to keeping a useful stable of “advisors.”

“I know people don’t want to call lawyers on the front end because it can be expensive,” said Driver, a partner at Driver, McAfee, Peek & Hawthorne in Jacksonville. “But on the back end, it can be more expensive.”

Most small businesses can’t afford to have an expert on staff to handle all their professional needs. So there are several keys points to remember when contracting with a professional advisor.

Perhaps the most vital is to remember you’re not hiring a faceless professional who bills you by the hour; you’re hiring a true partner with whom an intimate business relationship is essential.

“That takes time,” Driver said. “But I believe that’s where it should end up. In fact, I historically have found many of my relationships grow into close friendships.”

David Barley, a certified public account at Barley, Martin &Wild, CPAs in Jacksonville, said perhaps the most important is to know the professional you’re dealing with before you hire him.

By Al Bagocius    

Starting a new business, especially from your home, creates many challenges and needs for behavioral control. Going from a job situation to a self-employed endeavor, you find unlimited freedom but at the cost of not receiving a paycheck two weeks.

Working out of your home to start a new business has so many distractions that you could fail in a very short period of time.

When I started my own business, I adopted the following fail-safe system. If you incorporate it as one of your planning tools, you’ll find it will help you keep afloat and successful. The system is based on accomplishing a quota of activities that ensures success in as short a time period as possible. The quota is defined as a weekly point goal; I suggest you aim to “earn” 1,000 points each week.

Point values

To tally 1,000 points, you earn points for various types of activities:

• Phone calls, 1 point. However, you only earn that point for each call that results in talking directly to a prospect or customer.

• E-mail, 1 point. These must be directed to the prospect or customer.

• Mailing marketing information to a customer, 1 point. Because mailing is a black hole that too often gets little or no response, its point value is low.

• Account visitation, 10 points. Meeting the customer face-to-face in most businesses is so important that has a value 10 times that of other activities.

• Order entry, 33% of the dollar value of the profit. The calculation for points for order entry should only be made on profit above cost. For example, if the profit on your $1,500 order is $500, the calculation would be: 33% x $500 = $166 (that is, 166 points).

• Invoice to customer, 33% of dollar value of the profit. (Calculated the same way as for order entry.)

• Checks received from Customers, 33% of dollar value of profit. (Same as above.)

The order cycle develops in three stages: order entry, invoicing the customer, and finally cashing the check that is received from the customer. A sales mentor of mine many years ago only defined an order as one in which the customer’s check clears. How right he was.

Too often, new business owners snooker themselves with a false sense of security, counting the money made at order entry and spending accordingly. If you use the point system, however, you will track all of the components of the order cycle each week, and you will have a clear picture of how well you are doing, how well you did in the immediate past, and what you need to do in the near future.

One more thing: Along with maintaining a high activity level to earn points and ensure success, you should also find a way to give back to the community. You don’t earn points for this activity, but it will pay you pay tenfold in the long run. Consider donating products, service, or time to local organizations.

Al Bagocius is owner of A & I Consulting Group: Creative Marketing Solutions, www.aicreativepackaging.com. He can be reached at 904-367-9322 or al@aicreativepackaging.com

By Pamela Smith    

You have heard of a buyer’s market and a seller’s market, but have you heard of a tenant’s market? That’s what we are in now, and for anyone who rents office space, that’s good news.

A tenant’s market is one in which the tenant has the upper hand in office-lease negotiations—for both new and existing leases. Tenants (both current tenants and new tenants) have the power to negotiate terms that are to their liking. This power is driven by the market’s current high vacancy level—20% to 25% in the Jacksonville area.

With the current insecure economic climate, landlords are especially sensitive to retaining existing tenants in their office spaces, so early renewal opportunities abound. Tenants who landlords consider them “quality” can open negotiations early and offer to extend their leases by two or three years provided they receive competitive terms.

What are competitive terms? Consider asking for a reduced lease rate on the expanded terms; one or two months of free rent; or paint, carpeting, signage, or similar cosmetic improvements.

If you are a new tenant or someone who wishes to relocate to a new office space, you can get the most for your money by:

• Subleasing. Subleased space provides the most in overhead savings but you may run into some limitations. Sublessors will discount their leases substantially but will rarely offer any money towards redoing or updating a space. You may also be limited on the length of the lease.

•Upgrading. If you are looking to relocate, you may be able to upgrade your office space while paying the same rate per square foot that you paid in your previous, less attractive space. 

To get the most for your money, consider using the services of a tenant representative broker. This type of broker knows the market, the players, and the terms are being offered by landlords. The broker’s commission is paid by the landlord, who has generally already budgeted the lease commissions into the building’s cash-flow projections.

Every property is unique, and every landlord is unique. Some properties have a lower cost base of operations and can provide better lease terms. New properties usually have a higher base of operating costs and may be limited by their institutional ownership in the terms that they can provide.

Nevertheless, no property can sit empty for long. Now is the time for businesses to take advantage of the economic environment and reduce their overhead expenses. 

Pamela Smith has an MBA from Florida International University and a marketing degree from the University of Florida.  With 12 years of commercial office leasing experience, Smith owns and operates Smith Commercial Real Estate, which specializes in representing corporate office tenants. She can be contacted at 786-368-3707.

By Michael K. Shumer    

Even if Congress passes an anticipated healthcare bill, consumers and businesses will not experience immediate changes in plans or premiums. One of the ways companies are coping with escalating healthcare premiums is through high-deductible plans, which provide some relief.

Although these plans are more affordable for businesses, they can be costly for employees.

Because high-deductible plans require employees to pay $1,150 or more (depending upon the plan) before any coverage begins, employees often do not seek care when they are sick. They also bypass preventive care, which could prevent illness (and its subsequent costs).

This chasm in care undermines the economy by driving up absenteeism in the workplace and burdening healthcare providers with unpaid bills that erode profitability. Neither employers nor workers alone are able to pay for care in many cases, but employers can help by considering several alternatives:

• Choose wisely. When you select a plan, choose the best value for the money—for you and your employees. Just increasing the deductible does not always provide the same relative decrease in premium cost. Your agent or broker can provide quotes that compare the spectrum of policies from low to high deductibles. The goal is to identify the price point with the best value.

• Make it easier for employees to seek needed care. High-deductible plans—also known as consumer-driven plans— are a great way to reduce premiums, but unless employees have some way to bridge the gap between the high deduction and out-of-pocket expenses, they may postpone getting needed care.

Health savings accounts (HSAs) are one way to help bridge that gap. (See sidebar.) Some employers contribute to employees’ HSAs. Others look for high-quality, but less expensive, options to pair with the high-deductible insurance which can be coupled with a high-deductible insurance plan. These limited-health or “mini-med” plans low-cost plans are intended to cover routine or preventive care only (as opposed to catastrophic care). These plans encourage employees to receive care without worrying about the deductible.

• Think prevention. Stopping an illness or disease before it starts makes better business sense than spending for an expensive sure. As you explore healthcare options, determine whether a high-deductible plan includes preventative care. Some plans allow employees to receive preventative care for little or no expense outside of the deductible. When you start a new plan, educate employees about this benefit.

By considering these factors, you can provide the quality care that their employees need, at prices that your company and its workers can afford.

Michael K. Shumer is president of Crucial Care (www.crucialcarejax.com), a Southside medical facility that provides unscheduled care from treatment of the common cold to a heart attack.

SIDEBAR

What is a health savings account?

A health savings account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.

To contribute to an HAS, you must have an HAS-qualified “high deductible health plan (HDHP), have no other first-dollar medical coverage, are not enrolled in Medicare, and are not claimed as a dependent on someone else’s income tax return.

Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.

Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it to pay for medical expenses tax-free.

You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs, such as health insurance or medical expenses if unemployed, medical expenses after retirement, out-of-pocket expenses when covered by Medicare, and long-term care expenses and insurance.

HSAs are also a way to save money for future medical expenses. They grow through investment earnings.

One of the advantages to an HSA is that you make all of the decisions about how much to put into your account, whether to save the account for future expenses or pay current medical expenses, which medical expenses to pay from the account, which company will hold the account, whether to invest any of the money in the account, and which investments to make.

Funds you put into the HSA remain in the account from year to year, just like an IRA. There are no “use it or lose it” rules for HSAs.

An HSA also provides you triple tax savings:

1. Tax deductions when you contribute to your account;

2. Tax-free earnings through investment; and,

3. Tax-free withdrawals for qualified medical expenses