U.S. Department of Labor Investigates Consignment Business

U.S. Department of Labor Investigates Consignment Business
Invest in Your Success: Strategic Planning for Small Business
Author Bill Rancic: Getting Visibility for a Small Business
Business Meeting Beverages…and Eucalyptus?

Posted: 09 Aug 2013 01:30 PM PDT

Department of Labor

Sixteen years ago, entrepreneur Rhea Lana Riner came up with a bright idea. Why not create events where moms on a budget could buy and sell second hand childrens’ toys and clothing. They could then use the money to buy needed things for their own kids.

Riner hosted the first events out of her home. Today she helps organize 66 events in twenty-two states including franchises all run from her central website. The events provide an opportunity for moms to buy items at a reduced price and sell their own second hand childrens’ items for extra money. Some moms even volunteer at the events for extra perks like first pick of consignment merchandise.

It seemed like a win-win for moms and Riner herself, who has seen her business grow tremendously…until the government got involved.

The U.S. Department of Labor Steps In

A local television station recently reported that the U.S. Department of Labor is investigating use of volunteers at three of Riner’s locations.

Officials apparently believe use of volunteers at some of the events may violate the Fair Labor Standards Act and that the moms volunteering should be paid as employees.

In a prepared statement released recently, Riner explains:

If the Department of Labor moves forward with this, it would hurt moms everywhere. In this economy, as people are trying to make ends meet and become financially stable again, consigning is a great way to shop that allows moms on a budget to provide for their families.

What This Means

If the Department of Labor classifies volunteers at Riner’s events as employees, other activities and businesses could also be at risk. Implications for even collectively run yard sales and some family businesses are uncertain.

Riner has set up a petition at Change.org and has collected more than 13,000 signatures and counting of support. Watch the video below for more about the service Riner’s events provide.

The post U.S. Department of Labor Investigates Consignment Business appeared first on Small Business Trends.

Invest in Your Success: Strategic Planning for Small Business

Posted: 09 Aug 2013 11:00 AM PDT

strategic planning

Running a small business can be chaotic. It's easy to get sucked into the day-to-day operations required to keep things running smoothly and profitably. By taking the time to invest in a strategic planning process, you're saying, "I am ready to take this business to the next stage of success."

I'd like to share the best practices I've used to grow Infusionsoft from a start-up with a handful of employees to a thriving, venture-backed organization with 450 employees. They are rooted in the philosophies of experts like Jim Collins, Verne Harnish and Tyler Norton and vetted over 10 years of real-world application. I believe in this process and its power to help small businesses achieve success, and I know it can help you too. So let's get started.

Strategic Planning for Small Business

1. Articulate Your Vision—Your Purpose, Mission & Core Values

Creating, articulating and sticking to your vision is the single most important job you have as a leader. A clear vision is needed to guide and influence your strategic planning process. Have you ever asked yourself, "What is the purpose of my business?" If not, sit down right now and figure it out. Our purpose at Infusionsoft is quite simply, "To help small businesses succeed."

Once you've clearly articulated why your business exists, it's time to identify the concrete "what" behind it—the three to five-year Mission you're embarking on. Your Mission should be bold, inspirational and compelling and just gutsy enough to give you butterflies in your stomach. Think of President Kennedy's Mission to put a man on the moon and return him safely home within a decade. Our Mission is, "To create and dominate the market of all-in-one sales and marketing software for small businesses, with 100,000 customers worldwide."

With your Purpose and Mission in place, the last piece you need is Core Values. This is the "how" of your business. Core Values should articulate what is already true about your business and culture, not describe how you want it to be:

How do you go about your work?
What do you value in yourself and your employees?
What characteristics do you want your customers to experience?

These are your Core Values.

Once you have your Purpose, Mission and Core Values in place, it's your job to hire, train and also fire employees that don’t align to it. It sounds like extra work, but you'll actually discover that finding good people is much easier when you've clearly articulated your Vision. At Infusionsoft, we've found that our Purpose, Mission and Core Values attract the right candidates and repel the wrong ones.

2. Understand How Strategy Drives the Plan

When you take the time to define the why, what and how of your business, you're ready to identify strategies to achieve your Mission. To determine what those strategies should be, examine the company strengths that you can employ to achieve a strong return on your investments. Look for resources and capabilities you can leverage for maximum gain. To develop a competitive advantage that is sustainable, I recommend focusing on no more than three to five core strengths.

I firmly believe that strategy is an exercise in saying "no." Focus is an incredible thing. Just think about the power that's achieved when you focus a magnifying glass on a very small area. By focusing your resources on a few core areas, you maximize your chances of success.

Remember: Identify three to five strategies that are borne out of your greatest strengths, all highly focused on achieving your Mission.

3. Link Your Vision to the Annual and Quarterly Priorities

It can sometimes be a challenge to bridge the gap between your long-term vision and the daily operations. The structure we use to bridge this gap is called our "Strategy Planning Methodology." It breaks down our current Mission into the annual and quarterly priorities we need to complete in order to achieve our Mission. The work of the quarterly priorities then gets broken down into SMART (Specific, Measurable, Achievable, Relevant and Time-Bound) objectives that are owned by employees and have deliverables.

Here's a closer look at the structure of our Strategy Planning Methodology:

Mission: This is typically achievable in three to five years. It should be bold and exciting.
Strengths to Leverage: Three to five key strengths you will need to use to achieve your Mission.
Strengths to Develop: Three to five strengths you will need to develop to achieve your Mission.
Annual Priorities: Three to five priorities you will focus on this year to leverage your current strengths or develop new strengths to get closer to reaching your Mission. It important to remember that the annual priorities must: Support the current mission, be set annually by the leaders and not become individualized by department or employee.
Quarterly Priorities or Tactical Operating Priorities: Three to five priorities that support the annual priorities.
SMART Objectives: Projects and/or tasks that are required to accomplish the quarterly priorities.

Using this Strategy Planning Methodology makes it possible to connect your Mission to the annual, quarterly and even daily operations of the business.

4. Establish A Rhythm for Success

Strategic planning isn't a one-time event. Once you've laid out your strategy, it's crucial to stay focused over the long-term. I've found that it's vital to schedule a steady rhythm of productive meetings—annually, quarterly, monthly, weekly and daily. During these meetings, evaluate the plan, what's working and what needs to be adjusted. You may be tempted to skip these meetings, but don't do it. You'll waste a lot more time throughout the week, month and quarter if you're not clear on your goals. Make this investment in regular meetings and you'll get the best thing to help you succeed—confidence.

As an entrepreneur, I've always believed in measuring performance to help people and companies make steady progress toward their goals. One of my favorite quotes is:

Where performance is measured, performance improves. Where performance is reported, performance improves dramatically. Where performance is reported publicly, performance improves exponentially.

At the end of every quarter, each department goes through what we call a SWOT + exercise. During this time we do a SWOT analysis where we analyze our strengths, weaknesses, opportunities and threats. We take it a step further by evaluating the accomplishments, lessons learned and strategic issues from the quarter. (How do we achieve X outcome, given Y situation?)

By doing this, we are able to make informed decisions about what the next quarterly priorities should be.

Effective strategic planning is the linchpin for your long-term business success. Grounded in your Purpose, Mission and Core Values, a solid strategy can help you develop a plan of action and maximize your likelihood of success in achieving your vision.

Business Strategy Concept Photo via Shutterstock

The post Invest in Your Success: Strategic Planning for Small Business appeared first on Small Business Trends.

Author Bill Rancic: Getting Visibility for a Small Business

Posted: 09 Aug 2013 08:00 AM PDT

Entrepreneur and best-selling author Bill Rancic, joins host Brent Leary. Also joining them is Heather McLellan, Director of Intuit's Small Business Division.

The topic is about a creative way to get visibility for your business.

Below is an edited transcript of the conversation. To hear the entire conversation you can use the SoundCloud player below the transcript.

* * * * *

air a commercial

Small Business Trends: Bill, I am sure that a lot of people already know a lot of your story. But maybe you can give us a little bit of your personal background? Heather, why don't you do the same thing after Bill.

Bill Rancic: I grew up in Chicago and at a very early age I started to have that entrepreneurial spirit. It started when I was ten and continued through college. I started a small business when I was in college and then right after college I started another business after having a brief stint in corporate America. After I sold that company, I got a call to do the show The Apprentice, the very first season. I was fortunate enough to be able to compete in that. I was the one who came out on top as the first winner, and now I am involved in several small businesses.

My wife and I own a couple of restaurants in Chicago. We own RPM Italian and RPM Steak. I have some real estate development projects that I do, and my wife has a clothing line that she does for HSN called G by Giuliana Rancic. We are pretty busy in the entrepreneur space as well as in the TV space. We do a show together called The Giuliana and Bill Show which airs on Tuesday nights on the Style network and it's in its 7th season. So we have a pretty full plate.

Heather McLellan: I am here with Bill Rancic and I am a proud member of the Intuit Corporation. I have been there over a decade, and what keeps me at Intuit is the passion we have for small businesses.

The company was founded 30 years ago with the commitment to small businesses. What we want to do is to change the lives of small businesses in ways that they can't even imagine. That is why I am so excited about Intuit's Small Business Big Game. It is a program that Bill and Inuit are partnering together on and we hope to change the life of one very lucky small business owner.

Small Business Trends: Bill, can I ask you to tell us little bit about Small Business Big Game, and also tell us why you got involved?

Bill Rancic: It's a program that has never been done before, at least to our knowledge. This is an opportunity where we are going to give one small business owner a fully produced paid for spot that is going to run in the biggest football game of the year. So to me, that was pretty exiting.

Instantly, I gravitated towards it. Then as we started to dig into this program a little bit more, I realize that there really isn't a loser. Because right now, we are calling for small businesses to enter. All they have to do is go to Small Business Big Game. We are giving them 600 characters to tell us about themselves and their business.

Now everyone who enterers is automatically a winner because they are going to get 50% off of the QuickBooks products. So right then and there, Intuit is investing into these people and trying to arm then with the right tools for success.

The next phase as we go through this process, I am sure we are going to receive hundreds of thousands of applicants where we are going to narrow it down, we are turning to the 8,000 employees at Intuit. What they are going to do is they are going to pick the final 20 candidates. Through that, we are going to weed it down to the final four candidates. Then as we get to the final four, we are going to turn it over to the world. And the world votes – and one candidate will win.

Now let me just back up. One thing we are going to be doing along the way is we are going to be giving away grants. So as these business owners, these entrepreneurs are submitting entries, we are going to be giving way 25/ $1,000 grants that is going to help their businesses. Then the final four, all four of them are going to receive national ads that are going to run. Only one will receive the ad that is going to be run during the Big Game. But the three runner-up businesses are going to get a fully produced, fully paid for national ad that is going to run, which is pretty spectacular.

I looked at this and I said, 'Wow, you know, this is gong to change the lives of a lot of small business owners.' Not just the one who wins the big ad, but a $1,000 grant to a small business – that goes a long way when you are starting out.

When you look at most small businesses, typically there is a lot family that is involved. So this ad that is going to run, it's going to put them on the platform where the Anheuser-Busch's of the world and the big auto makers of the world are. It is going to take their businesses to the next level. Potentially, it could effect their kids and their kids' kids. I thought, 'Wow that is very unique. It is very special and I want to be a part of it.'

Heather McLellan: Well for us, the insight behind this campaign is that small businesses are the unsung heroes of our economy. We want to put a spotlight on these small businesses in a way it has never been done before. So our insight is, ‘How can we put them on a world stage? How can we help them be successful?’ Those are really our two insights, and we think that by putting them on the Big Game we are doing something that, as Bill said, would be really life changing for them.

Small Business Trends: Can you tell us what the steps are to get involved and be a part of this contest?

Bill Rancic: I think our goal is to make it as easy as possible and that is what we have done. We have got the website Small Business Big Game , and the only requirement is that you have to be a small business owner. You have to have 50 employees or less. If you meet those criteria, you are eligible. You don't need to be a customer of Intuit, that doesn't matter. Certainly we would like that, but it has no bearing on the outcome. Then we ask that you tell us about your business. You have 600 characters or less to do that. And that's it, you’re in. You are essentially on the path to being in the game.

They have until September 22nd to get to that first phase and then from there it goes on. We turn it over to the 8,000 Intuit employees and they go through the voting process and the criteria that is involved. After we get to the final four, we then turn it over to America. We are going to pick the final winner sometime in December. Because we will need enough time to go in and produce the commercial for them.

Whoever is going to have that commercial running during the Big Game, we are going to make sure that we arm them with the right tools and people, to make sure that they can capture all of the exposure and all of the opportunity that is going to come with this commercial. I think that is very important.

Small Business Trends: Heather, what about once you get a winner, this commercial runs and everybody sees it. Are you guys going to help them to prepare for the aftermath of all of this?

Heather McLellan: Actually, we are going to prepare both before the Big Game and after. So as Bill mentioned, we are going to be doing many makeovers for these small businesses. We will be going to the four finalists home towns and we will be making sure that we look at their operations, their marketing, etc. to make sure they are setup for success. Afterwards, we want this to be life changing for this small business. So we are there 100% behind them, supporting them in any way they need. We know this is going to have a long term effect on them. We will be right by their side.

Small Business Trends: How can folks watch and see this all unfold?

Heather McLellan: We will be marketing to the millions of small businesses who use our products today, so our existing customers will be aware of this. And for the world, we will be doing things on social channels. We will be running some advertising. The world will know. We will be making sure we bring it to them in all of the different ways possible.

Small Business Trends: Bill, any advice you can give folks who are interested in entering this contest?

Bill Rancic: My one bit of advice – chose your words carefully because you have 600 characters to get your story out. I think that is very important. So think about it. Be genuine; be authentic. That's it – that is all you can do.

The post Author Bill Rancic: Getting Visibility for a Small Business appeared first on Small Business Trends.

Business Meeting Beverages…and Eucalyptus?

Posted: 09 Aug 2013 05:00 AM PDT

business meeting beverages cartoon

I don’t know why, but for a good 3 weeks I was on a koala kick. It seemed like every time I sat down to write, I’d come up with koala jokes.

There was one where the koala was eating a ukelele instead of eucalyptus. One where a giant monster koala was threatening a city and someone was yelling, ”Get some eucalyptus!” And another where the superhero, Koala-Man, just sat quietly munching some leaves as his teammates fight evil and one of them comments, “How is it he always manages to find a eucalyptus tree nearby?”

You can’t do them all. And this one, although quieter, seemed funniest and the likeliest to sell. So the others found their way into the recycling bin.

I wonder what’s next. . .pandas?

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