Chapter 11:Build, Maintain, and Thrive
with a Winning Team - Teaming with
Passion and Following the Law
Learning Objectives:
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6.
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
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10.
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14.
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
Keys to Hiring and Shaping an
Entrepreneurial Team
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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
Portal to the World of Exporting &
Importing: www.export911.com
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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:
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Gateways to Global Markets
Export, Purchasing, Shipping, Production &
Administration
Product Coding
Benefits of the Virtual
Organization & Outsourcing
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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
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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
Action Step 46: Consider a Virtual
Organization & Consider Outsourcing
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Make a list of people & firms who
might assist your efforts
Research prospective sources &
explore costs
Explore joint ventures & strategic
alliances
Employee or Independent Contractor?
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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:
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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
Consider Employee Leasing
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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
The First Employees
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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
Top Tips for Avoiding Legal Trouble
with Employees
1.
2.
3.
4.
5.
Treat your workers
with respect
Communicate with
your workers
Be consistent
Give regular
evaluations
Make job-related
decisions
6.
7.
8.
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10.
Don’t punish the
messenger
Adopt sound policies
and follow them
Keep good records
Take action when
necessary
Be discreet
Successful Interviewing
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Avoid Unacceptable Areas of Inquires:
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Acceptable Areas:
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Race, National Origin, Color, Religion
Sex, Age, Marital Status & Childcare, Disability
Criminal Record, Military Service
Education, Skills, Prior Employment, General Info
Ask the Right Questions:
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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
Action Step 47: Interview Questions
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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?
Questions to Consider at the
End of an Interview
1.
2.
3.
4.
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?
The Importance of Checking References
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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
What Do Employees Really Cost?
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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
Labor Law Compliance
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Ignorance is not an acceptable defense
Federal organizations to learn about legal responsibilities:
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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
Action Step 48: Brainstorm Your
Ideal Team
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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
Team Members
Need to keep the employer – employee
relationship strong & healthy
Boss vs. Buddy
Rounding Out the Personalities of Your Team
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Consider using personality tests
Winning Workplace helps firms build strong
teams
Global Entrepreneurship Week (GEW)
Find Mentors
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Find one with experience in your market segment
Consider joining professional associations
Contact SCORE to find a match
Things to consider:
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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
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Passion for Listening to Employee Needs: Headset.com
Action Step 49: Who’s in Charge? Time
to Impress Your Business Plan Reader
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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
Think Points for Success
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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?
Think Points for Success
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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.