Chapter 11:Build, Maintain, and Thrive with a Winning Team - Teaming with Passion and Following the Law

Learning Objectives:1. Accept that you cannot do

everything well2. Understand the importance of

balance to the survival of your business

3. Explore new ways of putting together a team, including a virtual organization

4. Look back and see if you have found others who can join your venture

5. Investigate using independent contractors

6. Explore employee leasing

8. Recognize the legal pitfalls in interviewing, hiring and terminating employees

9. Understand the true cost of an employee

10. Learn the importance of labor law compliance

11. Avoid sexual harassment lawsuits

12. Determine the importance and cost of workers’ compensation insurance

13. Learn how to round out your team

14. Locate mentors to guide you

Keys to Hiring and Shaping an Entrepreneurial Team

1. Communicate belief in growth & need for team players

2. Hire highly committed people3. Look for attitude not just aptitude4. Seek individuals who are willing & able to think

outside the box5. Hire “entrepreneurial” employees6. Look for tenacity and persistence7. Search out self-motivated individuals8. Delegate responsibilities9. Reward employees10. Celebrate individual & team successes

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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:

Gateways to Global Markets Export, Purchasing, Shipping, Production &

Administration Product Coding

Benefits of the Virtual Organization & Outsourcing

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

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

Employee or Independent Contractor?

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

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

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

Top Tips for Avoiding Legal Trouble with Employees

1. Treat your workers with respect

2. Communicate with your workers

3. Be consistent

4. Give regular evaluations

5. Make job-related decisions

6. Don’t punish the messenger

7. Adopt sound policies and follow them

8. Keep good records

9. Take action when necessary

10. Be discreet

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

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?

Questions to Consider at the End of an Interview

1. Is this person able and willing to do the job?

2. Is this person someone I can manage?

3. Will I and the other team members enjoy working with this individual?

4. How will my customers view this prospect?

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

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

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

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

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)

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

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

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?

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.