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Small Business Blunders

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Small Business Blunders

Small Business Blunders

I am suffering from writer’s block this week so this week’s blog is a list of some things I would like small business owners to stop doing.  This is in no way a comprehensive list and they are listed in no particular order.

  1. Stop paying people as independent contractors when they are employees.  This will get extra scrutiny when Obamacare becomes effective for businesses with over 50 employees.  It has been a hot topic for years in avoiding payroll taxes and withholding. 
  2. Trying to avoid paying overtime when an employee is entitled to overtime pay.  Check out the Department of Labor’s website about overtime pay here.
  3. Being too slow to embrace new technologies.  I don’t think small business owners need to be on the cutting edge or be early adopters, but they need to take advantage as soon as they can to save time and money. 
  4. Not re-allocating money from older forms of advertising like yellow pages or newspapers to social media like Facebook pages for businesses, email marketing and Twitter.  Many of these new social media platforms are designed to work without having a high level of skills in marketing or graphic design.
  5. Not taking advantage of outsourcing.  It is fairly common to outsource payroll but what about HR, safety compliance, and other special skills that are not needed by small businesses enough to justify an in-house resource.  Many companies offer really good package deals in these areas.  
  6. Not seeking legal advice.  Check out this list from the US Small Business Administration.
  7. Failing to pay your payroll taxes.  The IRS fines and penalties can be extreme.  Do anything you can to pay your payroll taxes.
  8. Not having an adequate emergency plan in case you are not available to run your business and not having some controls in place to stop employee fraud.  Read my blogs about these two issues here and here.

Have a great week.

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Written by pacelinebiz

November 25, 2013 at 8:01 am

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