Learning Objectives: Accept that you cannot do everything well

1. Learning Objectives: Accept that you cannot do everything well Understand the importance of balance to the survival of your business Explore new ways of putting together a team, including a virtual organization Look back and see if you have found others who can join your venture Investigate using independent contractors Explore employee leasing Recognize the legal pitfalls in interviewing, hiring and terminating employees Understand the true cost of an employee Learn the importance of labor law compliance Avoid sexual harassment lawsuits Determine the importance and cost of workers’ compensation insurance Learn how to round out your team Locate mentors to guide you Chapter 11:Build, Maintain, and Thrive with a Winning Team - Teaming with Passion and Following the Law

2. Keys to Hiring and Shaping an Entrepreneurial Team • Communicate belief in growth & need for team players • Hire highly committed people • Look for attitude not just aptitude • Seek individuals who are willing & able to think outside the box • Hire “entrepreneurial” employees • Look for tenacity and persistence • Search out self-motivated individuals • Delegate responsibilities • Reward employees • Celebrate individual & team successes

3. Portal to the World of Exporting & Importing: www.export911.com • Free resource with specific information on the business of exporting • Covers topics including letters of credit, bar codes, export labeling, product inspections and cargo insurance • Provides thousands of links that cover areas including: • Gateways to Global Markets • Export, Purchasing, Shipping, Production & Administration • Product Coding

4. Access to the skills & experience of proven experts in their field People competing to perform work for you through crowdsourcing Paying only for services needed Obtaining variable production quantities Gaining higher reliability Achieving better quality & consistency Lower internal development costs Maintaining flexibility to instantly address new market opportunities Lower benefit & worker compensation costs Lower recruiting and training costs Benefits of the Virtual Organization & Outsourcing

5. Action Step 46: Consider a Virtual Organization & Consider Outsourcing • Make a list of people & firms who might assist your efforts • Research prospective sources & explore costs • Explore joint ventures & strategic alliances

6. Using independent contractors helps keep overhead low during start-up You may save money but could face fines & penalties if the government views the contractor as an employee Rules determine whether a worker is an independent contractor or employee and cover areas including: The relationship between the worker and the business Behavioral control, work hours & conditions Instructions to the worker & training Financial control State employment laws may be more stringent than federal laws Employee or Independent Contractor?

7. Consider Employee Leasing • Reduces administrative costs, hiring costs, paperwork, legal issues & costly benefits • Background & screening checks are done by leasing organization • Turnover is reduced & termination issues are eliminated • Leasing company is responsible for workers’ compensation, training & development • Best practices & policies are followed

8. The First Employees • When to hire? • Full-time or part-time? • Temporary workers or independent contractors? • Quest begins with a short, written job description • Consider new graduates • Consider using employment agencies or online sources • Be prepared for employee turnover

9. Treat your workers with respect Communicate with your workers Be consistent Give regular evaluations Make job-related decisions Don’t punish the messenger Adopt sound policies and follow them Keep good records Take action when necessary Be discreet Top Tips for Avoiding Legal Trouble with Employees

10. Successful Interviewing • Avoid Unacceptable Areas of Inquires: • Race, National Origin, Color, Religion • Sex, Age, Marital Status & Childcare, Disability • Criminal Record, Military Service • Acceptable Areas: • Education, Skills, Prior Employment, General Info • Ask the Right Questions: • Develop questions appropriate to the position • Past behavior is the best predictor of future behavior • Try to find out how fast people think on their feet • Look for creativity and innovation

11. Action Step 47: Interview Questions • Understand what is lawful and unlawful • All inquiries should be directly job-related • Adjust questions to fit job specifications, your industy and the work situation • Make a list of the questions you want to ask • Prepare a short introduction to your firm and the job to present to prospective employees • What steps will you take to share your passion for the business?

12. Questions to Consider at the End of an Interview • Is this person able and willing to do the job? • Is this person someone I can manage? • Will I and the other team members enjoy working with this individual? • How will my customers view this prospect?

13. The Importance of Checking References • After selecting potential job candidates check their references • Almost half of employment, education or reference checks show discrepancies • Employee theft is the leading cause of merchandise loss • Hiring an illegal alien can result in fines up to $10,000 • Employee turnover costs are high • Workplace violence is a serious safety and health issue • Drugs and alcohol in the workplace adds additional risks • Terminating bad hires can lead to lawsuits • Good idea to use third party vendors to conduct the background checks due to laws and security issues

14. What Do Employees Really Cost? • Recruiting and hiring • Salary • Employment taxes – Social Security, Unemployment and Medicare • Worker’s Compensation insurance • Benefits – health, retirement, vacation and sick pay • Space, furniture, equipment • Additional management time • Additional perks like childcare or a car allowance • Training

15. Labor Law Compliance • Ignorance is not an acceptable defense • Federal organizations to learn about legal responsibilities: • Occupational Safety and Health Administration (OSHA) • Equal Employment Opportunity Commission (EEOC) • Department of Labor (DOL) • Internal Revenue Service (IRS) • U.S. Department of Justice, Americans with Disabilities • U.S. Citizenship and Immigration Services (USCIS) • Find out appropriate state information • Guard against sexual harassment with appropriate training and have effective policies in place • Know your state’s Worker’s Compensation Laws

16. Action Step 48: Brainstorm Your Ideal Team • What does your business need that you cannot provide yourself? • Who can fill those needs? • Who can balance your skills? • When meeting someone new consider how they could fit in your business • Keep looking with new eyes • Make a list of potential team members and decide what it will take to have them join your team

17. Team Members • Need to keep the employer – employee relationship strong & healthy • Boss vs. Buddy • Rounding Out the Personalities of Your Team • Consider using personality tests • Winning Workplace helps firms build strong teams • Global Entrepreneurship Week (GEW)

18. Find Mentors • Find one with experience in your market segment • Consider joining professional associations • Contact SCORE to find a match • Things to consider: • Do you feel comfortable with this person? • Can you trust him or her? • Is he or she easy to communicate with? • Does he or she have experience and contacts that can help your new business? • Will he or she consider mentoring you for at least six months? • Mentor your employees too • Passion for Listening to Employee Needs: Headset.com

19. Action Step 49: Who’s in Charge? Time to Impress Your Business Plan Reader • Investors are often more interested in the founders than in the Business Plan • Present the balance and diversity of your founding team • Write short strong bios for each member of your team • Write complete resumes for each major member of your team • Write several paragraphs explaining the roles of consultants and strategic partners

20. Think Points for Success • People tend to hire “themselves”. How many more like you can your business take? • A winning team may lurk in your network. • Look to your competitors and vendors for team members. • Your company is people. • Balance the members on your team. • Have each employee write objectives for his or her responsibilities within the business. • You cannot grown until you have the right people. • When you hire the wrong person, terminate them thoughtfully with legal counsel and in a kindly fashion as soon as you realize the error. Start over learning from your mistake. • How much of your team can be part-timers and moonlighters?

21. Think Points for Success • Weigh the pros and cons of a virtual organization. • Understand legal ramifications of hiring independent contractors. • Consider the pros and cons of employee leasing. • Find a mentor. • Control workers’ compensation costs. • Follow all employee federal and state employee laws and consult with professionals to keep you in compliance. • Educate and train employees to recognize and eliminate sexual harassment and discrimination from the workplace. • Build your team with passionate employees. • Create the company culture you desire.