6 Rules of Entrepreneurship from Founders in the Trenches

Entrepreneurship is easier said than done. As with most things in life, it has its own set of rules. It doesn’t matter what kind of business you run, whether you have venture funding or whether you are using your own savings. The rules still apply. Here are six rules of entrepreneurship that should remind you of the wonderful ride that entrepreneurship really is.

You will learn more from these six stories of entrepreneurial struggle than you would from six different books written on entrepreneurship. We’ll start with big stories first.

Ray Kroc, Founder of McDonalds: “I shall persist”

[Image: McDonalds]

Persistence is the missing word in entrepreneurship. Ray Kroc is a testimony to persistence. A kitchen wares sales man with health issues at aged 52 took a risk in 1954 and bought out a family-run restaurant. And in doing so created one of the most iconic brands in the world. The menu was limited and the service was quick. It was fast food that really was fast for a change. The idea was simple, yet elegant at the time. Though somewhat boring compared to today’s tech startups, it comes with a valuable lesson.

Lesson: Run with your imagination. Take that idea and turn it into something great. In short, disrupt.

Richard Branson, Founder of Virgin Group: “Screw it, let’s do it”

[Twitter Profile Image]

No, we aren’t talking about Branson’s book here. We are talking instead about the very psyche of Sir Richard Branson, a billionaire worth at least two billion dollars and the founder of companies involved in everything from air travel to space tourism. We all know him to be a shrewd businessman with the style of a newbie rock star. He’s charming, social, and completely unpredictable. And his personality seeps through his business. He is a man of action, a relentless entrepreneur, if you will.

His first endeavor was a magazine that never took off. He later found a new way for people to enjoy music â€" lounging around and listening to records before buying. The retail venture become Virgin Records. Serial entrepreneur that he is, he went on to create even more businesses. Some failed. Some rocked. Either way, he never sat there wondering what happened. He just moved on.

Lesson: Get up and do something about that idea. Dreams are nothing if you don’t sweat towards them. Screw it. Just do it. No matter what happens.

Steve Jobs, Founder of Apple: “I’ll go on and do my best, no matter what you do to me.”

[Image: Wikipedia]

The founder of one of the most popular brands in the tech industry didn’t have an easy path. From humble beginning, Jobs navigated through some huge challenges and a major setback to achieve his ambitious goals. Apple started as a small startup, grew into a small but profitable enterprise, and went pubic, only to have an internal power struggle for control of Apple drive Jobs from the very company he founded.

Most entrepreneurs would have simply quit or turned their backs on the past and simply started a new company. Jobs, however, made Apple come to him. He started another business called Next which Apple bought and meanwhile, also founding another successful company, Pixar Studios (now, Disney-Pixar). For Jobs, it was always about design, beautiful rendition of products, and extreme value poured into everything his company makes.

Apple does it. Pixar does it.

Lesson: Staying true to the quality of the products and services you provide will see you through the toughest times. Don’t give up. No matter what the obstacle.

Lewis Howes, American author, consultant and speaker: “Nothing stops me. Not even the lack of a product to sell.”

[Image: Lewis Howes]

Lewis Howes was a professional athlete. But a broken wrist ended his athletic career. Instead of lamenting, Howes simply started another career for himself. Though at the time he says he didn’t have a dime to his name.

The problem was he had no product to market. But by attending webinars and educating himself about the combination of ideas and action needed to build a successful company, Howes was able to build up a level of expertise he could then share with others trying to do the same.

Lessons: Not having a product to sell is an excuse. When you don’t have products, you have services. When you don’t have the time or resources for providing services, you can teach or train like Lewis does. Entrepreneurship is more about creation, innovation, and making things happen than about finding the right inventory.

Brian Morgan of Adventure Life: “Have $3000, passion, and guts? Will start!”

[Image: Adventure Life]

Of course, you can start with much less too but we want to introduce you to Brian Morgan of Adventure Life. An adventure junkie, traveler, and business owner Morgan started his company in 1998 with just $3000 in his pocket. By 2008, the company had earned $11 million in revenue and had 16 employees.

Adventure Life is a travel company that specializes in “inspired and authentic” experiences for the travel enthusiast. The passion of its employees has become a unique component in the excursions they now offer all over the world.

Lesson: You can turn your hobby into a business. Just bring passion, an idea, and the right execution to make it a success.

Scott Heiferman, CEO of Meetup.com: “You don’t have to do it all.”

[Image: Wikipedia]

Entrepreneurs suffer from control issues, including an inability to let go and to trust others. Yet, Scott Heiferman, who runs Meetup.com, a global “meeting engine” with more than 15 million members and 136,047 groups across 196 countries is an expert at doing just that.

In an interview with Chris Dixon at TechCrunch.com, he offered this advice: divide and conquer. Do what you are best at and let others take care of the rest. Each founder should focus on his or her strengths.

Lesson: Outsource. Hire. Pick the best brains in the business. It comes at a price but it’s a pittance compared to the profits you make. Learn the art of delegation. Meetup.com run its business and lets groups all over the world with a passion to meet do the rest.

What entrepreneur lessons can you share with us?

How Your Brick and Mortar Store Can Beat Zappos at Its Own Game

How can a brick and mortar store successfully compete against online retailers? As the line between online shopping and in-store retail continues to blur, this question seems ever more pressing. But a recent news item offers some solace - and suggestions - for small retailers.

CNET recently reported that online accessories and apparel retailer Zappos has been taking “field trips” to local malls to figure out how they can lure shoppers from the real world into the virtual world. While online retail sales are growing every year, the latest data from the U.S. Department of Commerce shows eCommerce still accounts for less than 6 percent (PDF) of overall retail sales.

With 94 percent of retail sales still taking place in the physical world, clearly brick and mortar stores have something that eCommerce sites don’t. What, exactly? Zappos believes the answer lies in a social experience at a brick and mortar store, and is seeking ways to make online shopping more social, too.

Zappos is a pretty smart company (at least, they’ve gotten enough of my online spending dollars to convince me they know what they’re doing), so if they think social matters, I think retailers should pay attention.

With that in mind, how can you make your brick and mortar store shopping experience more social?

Get Social Online

It may sound obvious, but if online retailers can use social media to drive customers to their websites, you can use it to drive customers into your physical store.

Integrate your social media presence with your physical store. Put decals in your store window with the logos of Facebook, Pinterest, Twitter or wherever else you are on social media. Use them in your print and online marketing materials. Include clickable links on your website and in your marketing emails that customers can use to quickly connect with your store on social media.

Get Social In-Store

Incorporate the real world into your social media presence. Hold in-store events or promotions, take videos or pictures and post them on social media. Encourage customers to take pictures when they make a purchase or try something on and share the images with their friends on social media (mentioning your store, of course.)

Encourage Reviews

Let customers know your store has a presence on local search, review and rating sites such as Yelp or Local.com. Encourage them to review your store if they’re happy with their purchase.

By doing so, you’re taking the in-store experience online to drive more traffic into your shop.

Be Friendly

It sounds obvious, but a friendly, helpful attitude is the key attribute you should look for and nurture in store employees. Seek salespeople who truly enjoy interacting with customers and have a good sense for when people want (and don’t want).

Customers will come back if your store feels warm and welcoming - and that starts with you and your people.

Encourage Lingering

Remember when department stores used to have comfy chairs for shoppers’ spouses or kids to plop down and rest while shoppers “shopped till they dropped?” Few do anymore.

Differentiate your store with little touches that encourage customers to stick around. This could include a bowl of water outside the store for dogs tied up out front, a clean restroom, water, tea or coffee to energize customers to keep shopping or a small play or reading area to keep young children occupied.

Think about what might stop your customers from hanging out and eliminate those hurdles.

Cooperate

Get social with other business owners, too. Organize a sidewalk sale in your shopping center or on your street. Find a complementary, but non-competing business in your area and try some ongoing cross-marketing tactics.

For instance, if you own a pet accessories boutique, you could work out a deal with a local dog groomer or vet where you post flyers or set out brochures or business cards for each other’s businesses. You can also hold an event together, such as a bringing in a local dog trainer to hold a workshop on obedience and promoting all of your services.

Give Back

Getting involved in community events such as charitable organizations, sponsoring local sports teams or fun runs or participating in beach or litter cleanups are one of the best ways to be not only social, but also socially responsible. Encourage your customers to get involved, too, and you’ll build bonds that will help increase loyalty and sales.

Start thinking social and you’ll come up with no end to creative ways to connect your customers with each other, your business and your community.

Social Shopping Photo via Shutterstock

Why Your Business Should Personalize Offerings To Boost Revenue

In an age of technology, increasingly fewer things come with any sense of personalization. Everything is set to suit the masses, and it’s often very difficult to find items that reflect your personal sense and style. But any business that is looking to stand apart from their competition and boost revenues may want personalize offerings. This is exactly what Michelle Lease, founder of the Paper Cottage, and her partner Beth Kneebone are attempting to do.

The Paper Cottage is a small business centered on bringing personalization back into communication. Featuring stationary for every occasion, each hosted piece is customizable in a variety of colors and to an extent what it displays. Get corporate memo pads with your company initials on it, or a stamp to ensure anyone knows what business your mail represents. Lease and Kneebone give their touch to every aspect of the business; from the website to the marketing to the sourcing of products that they display.

Personalization is a concept that more small businesses should utilize in this day and age of easily made to order products. Many times a sale can be lost just because a consumer wishes it came in green instead of black. This allows the unique ability of a business constructing a product around a consumer instead of hoping for mass appeal from a static product.

On the opposite site, a business can also seek to gain quite a bit from using personalized items. You create an increase on brand recognition if any outgoing mail bears your name or logo, especially if it’s created on your own stationary. Or you can create that sense of community within the company by using that same stationary for in-house communications.

On the whole, it doesn’t have to be hard to craft that personal touch with communications, and the Paper Cottage is a shining example of that. Whether for business or personal matters, sometimes those extra touches can go a long way.

Why Your Business Should Personalize Offerings To Boost Revenue

In an age of technology, increasingly fewer things come with any sense of personalization. Everything is set to suit the masses, and it’s often very difficult to find items that reflect your personal sense and style. But any business that is looking to stand apart from their competition and boost revenues may want personalize offerings. This is exactly what Michelle Lease, founder of the Paper Cottage, and her partner Beth Kneebone are attempting to do.

The Paper Cottage is a small business centered on bringing personalization back into communication. Featuring stationary for every occasion, each hosted piece is customizable in a variety of colors and to an extent what it displays. Get corporate memo pads with your company initials on it, or a stamp to ensure anyone knows what business your mail represents. Lease and Kneebone give their touch to every aspect of the business; from the website to the marketing to the sourcing of products that they display.

Personalization is a concept that more small businesses should utilize in this day and age of easily made to order products. Many times a sale can be lost just because a consumer wishes it came in green instead of black. This allows the unique ability of a business constructing a product around a consumer instead of hoping for mass appeal from a static product.

On the opposite site, a business can also seek to gain quite a bit from using personalized items. You create an increase on brand recognition if any outgoing mail bears your name or logo, especially if it’s created on your own stationary. Or you can create that sense of community within the company by using that same stationary for in-house communications.

On the whole, it doesn’t have to be hard to craft that personal touch with communications, and the Paper Cottage is a shining example of that. Whether for business or personal matters, sometimes those extra touches can go a long way.

Government Resources to Help Market Your Business Overseas

Have you gotten started with growing your business on a global level?

Then you already know about the potential success for your small business, with more than two-thirds of the world’s purchasing power coming from outside the United States.

If you’re looking to market your business overseas, there are a number of great resources available from Export.gov, which brings together information and tools from across the federal government to assist businesses in planning international sales strategies.

According to Export.gov, when you’re just starting out, it’s best to focus on a maximum of two or three “best-prospect” markets.

Not sure where to start?

Let these research guidelines walk you through how to learn your product’s potential in a given market, the market’s business practices and other tactics to help set you up for success.

Market Research Library

This online catalogue has more than 100,000 industry and country-specific market reports written by Export.gov specialists working overseas. Gain access to country commercial guides, industry overviews, market updates, regional reports and more.

You’ll have to register to take a look at these reports, but it’s quick and free.

Trade Events

Attending trade events is a great way to learn about how to take your business to a global level - and market it successfully. These can include online webinars or in-person seminars on exporting fundamentals, information about trade missions and find out about counseling opportunities. Trade fairs and shows allow you to introduce international buyers, distributors or representatives to your products or services.

You’ll also be able to meet other small business owners and gain their insight about what’s worked for them, what hasn’t worked and get an insider perspective about what could be in store for you as well.

There’s a searchable list to find official trade missions and trade events sponsored by the International Trade Administration of the U.S. Department of Commerce.

One-On-One Counseling

The government provides counseling to companies at every step of the exporting process, so you can get personalized advice about your marketing inquiries from a specialist near you. Reach out to your local Export Assistance Center - there are more than 100 across the country - to get linked up with a federal representative today.

There are additional international marketing insights available to find out even more about how their resources and tools can help you succeed in marketing your business globally.

Overseas Business Concept Photo via Shutterstock

Why I Cautiously Switched To QuickBooks Online and You Should Move Your Accounting Online Too.

I work in a 99.9% online software (cloud computing) based environment. Very little computer installed software.

All my data is backed up through one or more means and all (almost all) the software I use is via  web browser.

The ONLY main software that I use “offline”  (installed on a computer) is Microsoft Office and Quickbooks.

Microsoft Office is not a key productivity software for me as I can easily work in Google Docs or Office 365.

For my needs, computer installed software is NOT needed, except for a web browser and tools like Dropbox and Carbnoite and AVG’s anti-virus software.

A few days ago I started using QuickBooks Online for my cash flow management (accounting) needs. I’m glad I did it so I can be 100% online (very convenient) and have my bank statements more quickly reconciled.

However, I’m afraid.

Not because it’s QuickBooks Online, but for the overall issue that I’m taking one of the most important aspects of my business (money) and trusting it to the cloud.

I now better understand why there are still many business owners (not the ones who are cloud illiterate) who are very cautious of moving their enterprises to the cloud.

I’m in the midst of a not fun tax audit. My thinking is, if I need records years from now - will they be safe with Quickbooks Online? On my OWN computer that I can see and touch - I know it’s safe (unless the hard disk gets fried or something else happens - which DOES happen!).

Of course cloud computing IS SAFE. This does NOT mean there are not problems with security breaches and etc. But online computing is as safe as your bank accounts - or safer.

However, I feel the time is now to upgrade to a fully online computing world. Also, I hate having my computer slow down by firing up QuickBooks (yes I know I could install more memory).

I’ve been using Quickbooks Online for several days and I like it. It’s fast, relatively easy to use and overall works well.

I thought about using Xero (I don’t think Peachtree has an online accounting software, but they do have SageOne). However, I decided to stick with the software my accountant is most familiar with.

Another interesting “issue” has cropped up.

I’ve been using Freshbooks (which is so awesome) for my invoice management because I found Quickbooks (the software version) invoicing to be a bit complicated and cumbersome. It looks like the Quickbooks Online version invoicing tool is easier and smoother. If it is easier I’ll have a fully integrated accounting solution no double entry of Quickbooks and Freshbooks.

Why I Cautiously Switched To QuickBooks Online and You Should Move Your Accounting Online Too.

I work in a 99.9% online software (cloud computing) based environment. Very little computer installed software.

All my data is backed up through one or more means and all (almost all) the software I use is via  web browser.

The ONLY main software that I use “offline”  (installed on a computer) is Microsoft Office and Quickbooks.

Microsoft Office is not a key productivity software for me as I can easily work in Google Docs or Office 365.

For my needs, computer installed software is NOT needed, except for a web browser and tools like Dropbox and Carbnoite and AVG’s anti-virus software.

A few days ago I started using QuickBooks Online for my cash flow management (accounting) needs. I’m glad I did it so I can be 100% online (very convenient) and have my bank statements more quickly reconciled.

However, I’m afraid.

Not because it’s QuickBooks Online, but for the overall issue that I’m taking one of the most important aspects of my business (money) and trusting it to the cloud.

I now better understand why there are still many business owners (not the ones who are cloud illiterate) who are very cautious of moving their enterprises to the cloud.

I’m in the midst of a not fun tax audit. My thinking is, if I need records years from now - will they be safe with Quickbooks Online? On my OWN computer that I can see and touch - I know it’s safe (unless the hard disk gets fried or something else happens - which DOES happen!).

Of course cloud computing IS SAFE. This does NOT mean there are not problems with security breaches and etc. But online computing is as safe as your bank accounts - or safer.

However, I feel the time is now to upgrade to a fully online computing world. Also, I hate having my computer slow down by firing up QuickBooks (yes I know I could install more memory).

I’ve been using Quickbooks Online for several days and I like it. It’s fast, relatively easy to use and overall works well.

I thought about using Xero (I don’t think Peachtree has an online accounting software, but they do have SageOne). However, I decided to stick with the software my accountant is most familiar with.

Another interesting “issue” has cropped up.

I’ve been using Freshbooks (which is so awesome) for my invoice management because I found Quickbooks (the software version) invoicing to be a bit complicated and cumbersome. It looks like the Quickbooks Online version invoicing tool is easier and smoother. If it is easier I’ll have a fully integrated accounting solution no double entry of Quickbooks and Freshbooks.

5 Reasons To Consider An Offsite Storage Location For Your Business

Most offices today are highly digitized spaces. Wireless printing, smartphone applications for remote file access and cloud computing are just some of the examples. But every now and then it is important to just step back and evaluate the fundamentals of managing your office.

One principle of efficient office management is having a reliable document storage process. Look around your office space-

• Are you storing documents that you no longer have use for?
• Do you take longer than you should in locating important documents? 
• Are boxes and cabinets taking up much needed office space?  

Having an office overloaded with paperwork adds no value to the business or to its employees. Instead of losing valuable office space to paperwork, you might want to consider moving old documents to an offsite storage location.

An offsite storage system can help reduce the day-to-day administrative hassles of running a growing business. There are other benefits too.

1.Lower operating costs: A lot of businesses still need to ensure that they have adequate paper records for regulatory and legal purposes. Overtime the paperwork can really pile up. As per Laurie Shader Smith, vice president of Personal Mini Storage,  a self storage company in Florida established in 1982, an offsite storage can lower rental costs for a  business by as much as 60%.

2.Save time:  Spend lesser time finding the information you really want. Most storage companies can help you implement a barcode filing system so that the staff does not waste valuable time looking for files.

3.Improved security: With documents being regularly listed and shipped to an offsite storage location there are less chances of files being misplaced.  But more importantly, stored files can only be accessed at the offsite storage location by authorized personnel, making it a safer way to keep customer records and other business documents.

4. Reduce risk of damage: Storing documents at an offsite location is a better disaster management strategy than keeping everything in one place.  Also storage management companies take additional safety measures such as appropriate storage containers, regular pest-control, a fire-safety system and insurance cover which makes offsite storage a much safer option than the office.

5. Improved productivity:  The space freed from removing filing cabinets and boxes onsite, can instead be used to value-add to business such as another sales desk or a customer service counter. Also an improved office environment is bound to have a positive impact on employee performance.

Before you hire the services of an offsite document storage company, be sure to compare the charges across vendors in your area since prices can vary considerably. Also in the storage industry, national players may not necessarily offer the best prices. Watch out for other hidden charges such as fuel surcharge and minimum order charges.

As part of the overall cleaning drive, Laurie also recommends purging old office equipment. Get rid of any office supplies that haven’t been used in the past year- an office printer, a broken down coffee machine or languishing office chairs.

Has you business utilized the services of an offsite storage company? Do share your experience in the comments box below for the benefit of other readers.

5 Reasons To Consider An Offsite Storage Location For Your Business

Most offices today are highly digitized spaces. Wireless printing, smartphone applications for remote file access and cloud computing are just some of the examples. But every now and then it is important to just step back and evaluate the fundamentals of managing your office.

One principle of efficient office management is having a reliable document storage process. Look around your office space-

• Are you storing documents that you no longer have use for?
• Do you take longer than you should in locating important documents? 
• Are boxes and cabinets taking up much needed office space?  

Having an office overloaded with paperwork adds no value to the business or to its employees. Instead of losing valuable office space to paperwork, you might want to consider moving old documents to an offsite storage location.

An offsite storage system can help reduce the day-to-day administrative hassles of running a growing business. There are other benefits too.

1.Lower operating costs: A lot of businesses still need to ensure that they have adequate paper records for regulatory and legal purposes. Overtime the paperwork can really pile up. As per Laurie Shader Smith, vice president of Personal Mini Storage,  a self storage company in Florida established in 1982, an offsite storage can lower rental costs for a  business by as much as 60%.

2.Save time:  Spend lesser time finding the information you really want. Most storage companies can help you implement a barcode filing system so that the staff does not waste valuable time looking for files.

3.Improved security: With documents being regularly listed and shipped to an offsite storage location there are less chances of files being misplaced.  But more importantly, stored files can only be accessed at the offsite storage location by authorized personnel, making it a safer way to keep customer records and other business documents.

4. Reduce risk of damage: Storing documents at an offsite location is a better disaster management strategy than keeping everything in one place.  Also storage management companies take additional safety measures such as appropriate storage containers, regular pest-control, a fire-safety system and insurance cover which makes offsite storage a much safer option than the office.

5. Improved productivity:  The space freed from removing filing cabinets and boxes onsite, can instead be used to value-add to business such as another sales desk or a customer service counter. Also an improved office environment is bound to have a positive impact on employee performance.

Before you hire the services of an offsite document storage company, be sure to compare the charges across vendors in your area since prices can vary considerably. Also in the storage industry, national players may not necessarily offer the best prices. Watch out for other hidden charges such as fuel surcharge and minimum order charges.

As part of the overall cleaning drive, Laurie also recommends purging old office equipment. Get rid of any office supplies that haven’t been used in the past year- an office printer, a broken down coffee machine or languishing office chairs.

Has you business utilized the services of an offsite storage company? Do share your experience in the comments box below for the benefit of other readers.

Do You Need to Notify the State of Changes to Your Business?

If your business is structured as a corporation or LLC, you’re probably aware that there are certain steps you need to take to keep your business compliant with the state, such as sending in an annual report and paying any fees. Keeping your paperwork and recorded information up to date is another key element to staying compliant.

For example, if you changed your business address, authorized more shares or had a board member or director leave, then you’ll need to notify the state of these changes.

This may seem like trivial paperwork, but it’s actually quite important. You’ve got to make sure that your corporation or LLC remains in good standing because if your business happens to be sued, the plaintiff may attempt to show that you have not maintained your LLC/Corporation to the letter of the law. And if successful, your corporate veil is pierced and the plaintiff can seek recovery against your personal assets.

What Changes Need to be Recorded?

As a general rule of thumb, whenever you’re changing any of the information included on your original formation paperwork, you’ll most likely need to notify the state. Here are the most common changes:

• Changes to the company name.
• Changes to the registered agent information.
• Changes to the registered office information.
• Company business address.
• Director or member information.
• Number of authorized shares.
• Business activities of the company.

How Do I Record These Changes?

In most states, the paperwork required to record any changes is called Articles of Amendment (or sometimes Certificates of Amendment). This form takes just a few minutes to complete and is an essential part of keeping your business compliant.

You can either file the form directly with your state’s Secretary of State office or have an online legal document filing service take care of the paperwork for you.

When Do I Need to Submit My Amendment Paperwork?

States actually don’t provide a specific deadline for you to turn in your Articles of Amendment (i.e. you must file within X weeks of making the change). However even without a looming deadline, you’ll still want to submit any changes as soon as possible, so the state has all your current information on file.

If the state information doesn’t match what you’re actually doing business under, it can hinder you from certain business transactions. For example, you may not be able to renew your business license, open a bank account or create a merchant service account.

In addition, as mentioned above, you may be putting your liability protection at risk by not keeping your state files current. For this reason, it’s always best to keep the state informed of any and all changes as soon as possible.

Email Forms Photo via Shutterstock

3 Ways to Find The Right Employees for Your Small Business

It appears that a majority of small business owners are having the very same issues with their employees - finding the right people to work for their companies. A recent survey showed that a whopping 60 percent of small business owners state that they have a hard time finding the right skilled workers to fill their open positions.

Large corporations often have an entire department dedicated to the task of recruiting talent. So what can you, the small business owner, do?

1. Show Them Why They Should Work for You

The first thing that you want to do is show candidates why they should want to work for you.

Chances are, hiring a quality candidate is going to require more monetary investment than you can afford. Give them non-monetary reasons why working with you is probably the best decision they can make.

You have to emphasize things such as the ability to advance without having to deal with large corporate red tape and office politics. If your company has a rich social environment that is a breeding place for lots of fun, sell it. If working with your company will give candidates more exposure to their professional development, then focus your pitch on it.

The bottom line: You need to be attractive to the prospects. If you’re a bootstrapper, you need to be sure that you attract them for reasons other than money.

2. Recruit the Best of the Best of the Best

Yes, you read that right - you need to recruit the best of the best of the best.  Hiring the wrong person can drain your resources fast.

What’s the worst activity small business owners after a bad hire? Firing the employee.

If you make a bad hire, chances are that you will eventually need to fire this individual. Firing an employee is emotionally draining, especially when they refuse to acknowledge that they deserve to be fired.

When you recruit someone, be very, very picky.  Remember, you are in a relationship with your employees for quite a long time and you can’t afford a bad hire.

3. Use the Right Hiring Methods

Placing your ad on Craigslist or Monster is going to bring a surge of applications. Receiving hundreds or thousands of applications can be overwhelming and the selection process can become even more daunting and you don’t want that.

The best way for you is to recruit candidates using more targeted methods. Try using social media to get the attention of local job seekers. The go-to social media site for recruiting employees is LinkedIn. You can advertise on LinkedIn and laser-target candidates with certain skill sets or you can hand-pick candidates yourself.

Another great option for recruiting a talented worker for key positions in your company is with a staffing agency.

The great thing about using a staffing agency is that you can “try before you buy.” The agency does the recruiting. They test the candidates that sign up for their services and they do thorough background checks. Once the candidate is thoroughly vetted, the testing then verifies what area of work they will excel in. What this means for you is that you are not stuck with an employee that you are not satisfied with.

Takeaway

The best hires generally use a very simple yet obvious method: Testing them with the actual work.

Experience and educational background matter, but honestly they mean nothing if your prospects can’t get things done your way.  Be absolutely sure before you say, “You are hired.” And to be absolutely sure, you need to observe how they do their work first.

One last bit of advice: Trust your hunches.

“Trust your hunches. They’re usually based on facts filed away just below the conscious level.” ~ Joyce Brothers

Businessman Seeking Photo via Shutterstock