Workshop gives crash course on health care law changes

Workshop gives crash course on health care 

law changes

http://www.tennessean.com/viewart/20130825/GALLATIN01/308250052/Workshop-gives-crash-course-health-care-law-changes

Employers, individuals could see higher insurance rates with new mandate

Aug. 23, 2013   |  

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Jason Humphrey, left, and Tom Burroughs, both with Heritage Financial Group in Hendersonville, spoke to local business owners about the Affordable Care Act on Thursday during a workshop sponsored by the Tennessee Small Business Development Center at Volunteer State Community College. / Sherry Mitchell/Sumner A.M.

Written by

Sherry Mitchell

Sumner A.M.

• FILED UNDER

• Gallatin
• Gallatin News

10 Mandates for all Health Insurance Plans Effective Jan. 1, 2014

• Emergency services
• Ambulatory patient services
• Maternity and newborn care
• Rehabilitative services and devices
• Mental health/substance abuse services
• Preventative and wellness services and chronic disease management
• Hospitalization
• Prescription drugs

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Just over a month remains before the rollout of the Affordable Care Act, known as Obamacare, designed to provide health insurance coverage for all Americans. But those working with local businesses to prepare for the federal mandate say the new law could leave more individuals without coverage because of rising costs.

About 40 business owners heard details of the new law on Thursday at a workshop sponsored by the Tennessee Small Business Development Center at Volunteer State Community College. Tom Burroughs and Jason Humphrey of Heritage Financial Group, an employee benefits firm for group clients, presented the information.

As of Oct. 1, open enrollment for the health insurance marketplace or exchange is planned to be online for residents. In Tennessee, officials have opted out of a state partnership exchange. Local residents will choose from the federally facilitated health-care exchange, along with 25 other states.

To date, there are four carriers that will be providing coverage under the federal exchange in Tennessee, Burroughs and Humphrey said: BlueCross BlueShield of Tennessee, Community Health, Humana and Cigna. While none of the companies are officially releasing rates until Oct. 1, Burroughs said recent research through his carrier, BlueCross BlueShield, revealed some disturbing finds.

“My (family) rates are going up 100 percent — I was in sticker shock,” Burroughs said, adding that his $1,000 deductible would also be raised to $3,700.

In another scenario, Burroughs calculated rates for a 32-year-old male with a $1,000 deductible on a copay plan. The cost difference between rates in December 2013 and January 2014 is 89 percent higher, he said, adding that those types of proposed increases are leaving individuals and businesses alike wondering if the new plan will even be financially doable.

“That’s what individuals and businesses are starting to talk about — are they going to be able to afford this after it is implemented?” Burroughs said. “It could be that more people are going to be uninsured after this is implemented just because of the cost.”

Price to pay

Ginger Eastham with Perfect Pay in Gallatin deals with multiple small-business owners who she says have already been hit with higher rates in the past few years and are now worried about what is coming down the line.

“A lot of these companies have already seen anywhere from 28 to 39 percent premium increases and now they are getting notices of (more increases),” she said.

Under the new plan, the maximum deductible for an individual is $2,000, Humphrey said, and $4,000 for a family, so those who had been able to choose a higher deductible in the past to get lower rates will see increases.

In addition, insurance companies can no longer deny coverage to those with pre-existing conditions and the cap for lifetime limitations on how much coverage is available through a policy has been lifted. While all of this sounds beneficial, Humphrey said, there is is a price to pay to have these things.

“To me, this is the reason that premiums are going up,” he said.

Everyone must have health insurance beginning Jan. 1, 2014, or pay a fine that starts at $95 for an individual and goes up to $695 if insurance is not obtained by 2016. Fines will paid through the IRS when 2014 taxes are filed, Humphrey said.

Gallatin attorney Walter Stubbs, who attended the workshop, asked about the likelihood of individuals paying the fine and then waiting until they needed insurance to purchase it. Humphrey said that is a real possibility.

“I think there will be people who pay the $95 if their rates go up and then purchase insurance if they need it — that could be a strategy that some people may take. Of course, that is not going to work in the event of something like a heart attack where you have to have treatment right away,” Humphrey said.

Going forth, plans must meet minimum coverage standards as outlined by the federal government. The government has mandated 10 inclusions in all plans, regardless of need, Humphrey said.

“If you are a 42-year-old man, guess what — you’ve got maternity coverage whether you need it or not,” Humphrey said.

Making sense of it

In another part of the law, all businesses with 50 or more full-time (30 hours a week or more) employees must provide insurance benefits by Jan. 1, 2015, or face a penalty of $2,000 per employee beyond the first 30 employees, which will also be imposed by the IRS.

Burroughs said hours between employees will be totaled and converted for a final tally.

“If you’ve got two part-time employees who are working 15 hours each week, that will count as one full-time employee,” Burroughs said.

Hendersonville chiropractor Brad Hagan said postponing some of the mandates, such as penalties for employers, is “ridiculous,” making him feel that the Affordable Care Act is not well thought-out.

“If it doesn’t make sense now, it’s not going to make sense in 2015,” he said. “If it’s such a great idea, why not go ahead with all of it? And now it looks like there may be just as many without healthcare as there were before. What kind of sense does that make?”

Under the new guidelines, affordable coverage to employees means an employee cannot pay more than 9.5 percent of his or her W-2 wages or gross income. Employers will be fined $3,000 for each employee who pays more than 9.5 percent toward healthcare premiums. Those employees will also qualify for a government subsidy.

Burroughs said information he has received through the IRS indicates a potential plan to audit every business with at least two employees over the next five years. This will require a solid plan on the part of every local employer, he said.

“You need to decide whether you are going to be proactive or reactive and what you are going to do if the (employee insurance) plans are too expensive,” Burroughs said. “Will you pass that (expense) on to employees or reduce some of your other benefits?”

Health Care Reform, Preparing Your Business for the 2014 Mandates

The workshop will be held in dining room in the Wood Campus Center on the main campus, NOT the Betty Gibson Building.

Register Here

Heritage Financial Group will address topics that include:

*Marketplace/Insurance Exchanges

*Play or Pay

*Limits on Waiting periods

*Community rating for groups

*Plan Design Limitations

*Fully Insured vs. Self-Funded

*Individual Mandate

*Additional Health Care reform fees

*DOL (Dept. of Labor) Compliance 

*Q&A

Co-Sponsor(s): Business and Industry of Continuing Education and the Center of Emphasis - Volunteer State Community College

The workshop will be held in dining room in the Wood Campus Center on the main campus, NOT the Betty Gibson Building.

Fee: Free

A Tale of Two Bosses The Leader vs. The Manager

   "It was the best of times, it was the worst of times, it was the age of ………uh, accounting and stuff.”

 

 So after we had our third baby last year (no, we are not farmers), we decided it was time for the wife quit her full time job and find part time work, so she could stay home more with the kiddos.  It would be some sacrifice on the budget, but well worth it in the long run.  Being an accountant by trade, it would be tricky for Sarah to find part time work.  However, as blessing/luck would have it, a part-time accounting position became available, just around the corner from our home.  The best part was the work environment. 

   Great bosses make it enjoyable to come to work.  And the number one reason people leave their job is not money, it’s the relationship with their boss.

   Previously, Sarah had worked for a great company, however, the boss was more like an unfunny Michael Scott. 

For example the old boss would:

• Micromanage small details while simultaneously make himself unavailable to provide guidance on bigger projects 
• Constantly interrupt employees with minor questions
• Not provide much feedback  and could be a touch on the condescending side

However, the new boss:

• Empowers employees to make their own decisions and provides guidance on bigger projects
• Does not interrupt employee workflow
• Provides constant feedback by praising employees in public for specific accomplishments and provides constructive feedback for mistakes in private

   I know this is an old tale and as small business owners, we have a tendency to declare nobody wants to work anymore.  While I agree that we have become soft as a society and we consider having to wait in line at McDonalds a hardship. i.e., First World Problems, there is still some accountability on the boss to be a true leader, and not be some simple manager that can merely spout policy.

In a small business:

• Leaders are proactive, while simple managers tend to be reactive, i.e. hire people before they are overwhelmed.
• Leaders derive power from influence and simple managersderive power from simply owning the business.  That means helping employees understand how their jobs are relevant and not saying, “you have to do this, because I’m the boss.”
• Leaders ask “How do you think we should handle this?”Simple managers say “We tried that a couple of years ago, and it didn’t work.”

   This does not mean to let the inmates run the asylum, however showing employees appreciation, giving them timely feedback, and allowing a little autonomy in their job can go a long way to keeping and encouraging your employees.

Affordable Care Act still baffles businesses - from the Tennessean

Affordable Care Act still baffles businesses

Aug. 1, 2013   |  

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http://www.tennessean.com/viewart/20130730/GALLATIN01/307300076/Affordable-Care-Act-still-baffles-businesses

Written by

Sherry Mitchell

Gallatin News Examiner

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• Gallatin News

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With the implementation of parts of the Affordable Care Act, also known as Obamacare, less than six months away, some who work with local business owners say there is still confusion as to how they will be affected.

Paige Brown, executive director of the Gallatin Area Chamber of Commerce, said many local business owners are starting to worry about the federal mandate.

“Everyone is concerned,” Brown said. “They still don’t understand how it’s going to impact them and how to prepare, and I still think people are in a wait-and-see mode.”

Dale Payne, owner of Sumner Roofing and Exteriors, employs 15 people, and currently offers health insurance benefits. He plans to meet with advisors in the next few weeks to get more information on how the new health care law could affect his small business.

“To be honest, I don’t know enough about it at this point,” Payne said. “Nothing that I have seen is really clear and straight to the point.”

That uncertainly, Brown said, could be putting local businesses in a holding pattern.

“I think it’s stagnating growth for them, because they are afraid,” Brown said. “Everybody is kind of in sticker shock over the increase in (insurance) premiums this year, and they don’t understand what it’s going to cost them. There are still so many unknowns.”

All of that could have a negative impact on the local economy, Brown said.

“It hurts our economy, because people are afraid to hire,” she said. “They are afraid to take out a loan to grow their business. There’s still a level of discomfort — and probably will be for several years.

“I think there are people who feel like it’s a good thing for individuals, but right now it feels like an incredible burden for businesses.”

While much is still unclear, there are some certainties about the Affordable Care Act, though parts of the law are subject to change.

Effective Jan. 1, 2014, all individuals are expected to be covered under some type of medical health insurance policy. According to the IRS website, failure to do so would result in fines when filing 2014 tax returns.

Current projections are that the first-year fine for an individual would be about $95, according to the Kaiser Family Foundation in Washington, D.C., with a maximum penalty of $285 per family.

In the second part of the mandate, which is referred to as “shared responsibilities,” all businesses with 50 or more full-time (30 hours a week or more) employees must provide insurance benefits to employees by January 2015 or face a penalty of $2,000 per employee beyond the first 30 employees, which will also be imposed by the IRS.

In addition, as the law is now structured, an employer will be fined $3,000 for each of its employees who pay more than 9.5 percent of his or her annual W-2 wages toward healthcare premiums. Such employees will qualify for government subsidy.

Individuals with pre-existing conditions can no longer be denied insurance, and employers will not be allowed to have an employee wait longer than 90 days to be insured.

Learning the law

Charles Alexander, director of the Tennessee Small Business Development Center at Volunteer State Community College, works with approximately 200 local small businesses each year. While some of the larger businesses have started to look at some of the requirements under the new healthcare law, he said many smaller business owners are just now starting to learn about how the changes will affect them.

“Up until a month ago, I wasn’t hearing anything,” Alexander said. “It was eerily quiet, and any time you wanted to discuss it, they (business owners) were in a wait-and-see mode. There was not a lot of belief the requirements would go through.”

Alexander said a recent TSBDC workshop on healthcare reform drew a crowd of business owners seeking additional information, although it’s still unclear how applications of the new law will play out locally.

“I don’t know if we will see mass layoffs, or if everybody will decide to get insurance, or if employers will end up paying the penalty,” Alexander said. A lot depends on the number of businesses that do not currently offer health insurance, he said.

“Most likely, those that do not will simply pay the penalty, which is $2,000 on every employee over (the first 30 employees),” Alexander said.

Based on those numbers, Alexander said if a company has 100 employees, they would be required by federal mandate to pay $2,000 each for 70 employees, which would be $140,000 in penalties.

“Some of them have already had to tighten their last belt loop, and what I think we are going to see is folks getting moved to part-time (hours), some layoffs, and potentially, I think some employers will try to take a few of their employees and turn them into 1099 contract workers,” Alexander said, adding there might be smaller employers now offering insurance who will decide to drop it, since it could be cheaper to pay the penalty and allow their employees to get on the Health Insurance Marketplace exchange.

Questions remain

Jason Humphrey, with Heritage Financial Group in Hendersonville, an employee benefits firm for group clients, led the first workshop at TSBDC and hears the same confusion among business owners.

“What I am learning is there is a lack of communication and understanding among small business owners and really, since the law passed, you almost have to be a nerd to really wrap (your mind) around it because it changes all the time,” Humphrey said. “It seems like every other Friday, there is a delay or a change. It’s almost like trying to hit a moving target.”

Humphrey agreed with Alexander, saying that many business owners would likely opt to pay the penalty rather than offer the mandated insurance.

“You will have some that will sit down and calculate the penalties they will incur versus what they will pay if they do offer coverage, and they will look at the cheapest option for them,” Humphrey said.

It’s not just those small businesses that will be affected by the new healthcare reform, Humphrey said.

“The laws will affect both large and small businesses,” Humphrey said. “I foresee premiums going up across the board. The (insurance) plans going forth are guaranteed issues with no exclusions. All those things sound great and fine, but there’s going to be a price for that.”

As of Oct. 1, open enrollment for the health insurance marketplace or exchange is planned to be online for residents. In Tennessee, officials have opted out of a state partnership exchange. Local residents will choose from the federally facilitated health care exchange, along with 25 other states.

“There is so much we still don’t know about the (insurance) plan design and the network and pricing,” Humphrey said. “We are kind of at the mercy of the federal government as far as information on the process and it’s going to be hard for people that don’t have the knowledge.”

Some in the medical community believe they will have a role in educating patients in the upcoming months.

“We plan to do all we can, within legal and regulatory parameters, to help our uninsured patients to secure healthcare coverage through the exchange marketplace,” said Susan Peach, CEO of HighPoint Health System, which includes Sumner Regional Medical Center. “The CMS (Center for Medicare/Medicaid Services) is expected to issue a final rule very soon that will help us better understand the role we can play in helping our patients.”

Alexander said the next small business workshop will be held Thursday, Aug. 22 at 3 p. m. For more information or to register, visit volstate.edu/TSBDC.

Contact Sherry Mitchell at 575-7117 orshmitchell@mtcngroup.com.

August Seminars

Getting Ready to Go to the Bank workshop of Volunteer State Community College's Tennessee Small Business Development Center, 3-4:30 p.m. Wednesday, July 31, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Starting a Small Business workshop of Volunteer State Community College's Tennessee Small Business Development Center, 4-6 p.m. Thursday, August 8, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

QuickBooks Introduction for Small Businesses  workshop of Volunteer State Community College's Tennessee Small Business Development Center, 1pm-4 p.m. Wednesday, August 14^th 1480 Nashville Pike, Gallatin, TN in the Ramer Administrative Building, Computer Lab 175. Registration is required. Reserve online. www.tsbdc.org. $25 (payable at the workshop).

Financing Your Business With the SBA workshop of Volunteer State Community College's Tennessee Small Business Development Center, 11-12 p.m. Thursday, August 21, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free

Health Care Reform, Preparing Your Business for the 2014 Mandates seminar of Volunteer State Community College's Tennessee Small Business Development Center, 3-4 p.m. Thursday, August 22, 1480 Nashville Pike, Gallatin, TN in the Woods Campus Center, Dining Room. Registration is required. Reserve online. www.tsbdc.org. Free.

5 Steps to Marketing Success workshop of Volunteer State Community College's Tennessee Small Business Development Center, 9-11 a.m. Thursday, August 29, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.


IRS Small Business Tax workshop of Volunteer State Community College's Tennessee Small Business Development Center, 9-3:30 p.m. Friday, September 6, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free. 

TSBDC Seminar - Do You Need to Incorporate Your Business?

Do You Need to Incorporate Your Business?

Wednesday, July 24, 2013 2:00 PM to 4:00 PM

Speaker(s): Loretta Calvert, Director of Paralegal Studies at Volunteer State Community College

Fee: Free

Register for this event online

The tribes we lead - Seth Godin

Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.

5 Tips for Communicating with Your Customers

 

Keeping it real with Windows 95 clip art.

I recently visited my local Verizon store.  Why you ask?  Ok, so you probably don’t care, but humor me.  My newly set up auto-bill was not auto-billing.  I was delinquent!  Boo.  So, I called the 1-800 number and after 15 minutes of screaming at the automated system, I decided to take a trip to the Verizon store.  I was warmly greeted by Karmen.  I explained my dilemma and she immediately understood the problem. It takes one full month for the auto-bill to kick in and we were only three weeks into it (stupid rule, by the way.)  She also got the late charge removed. She did all of this without interrupting me, telling me what I should have done, and without working on five other things at the same time.  Karmen communicated clearly.  The automated system did not.

   You customers may often feel the same way.  Everyone wants to be heard and everyone wants to have their opinion valued, yet so many companies as so busy telling you about why they are great, that they often neglect paying attention to what the customer wants. 

Here are five ways to make sure you do not make the same mistakes.

1. Listen actively – This means allowing the customer to finish a complete sentence, without interrupting them.  Make sure you allow them to completely finish their thoughts (even when they get off track), make eye contact, and ignore your instinct to answer some unasked question.  I’m often struck by other parents who ask how my Ava, Lilly, or Lane eat/sleep/play and when I give an answer, they really are just waiting on their turn to talk and tell me about what their little Johnny or Suzy do. 
2. Jumping to conclusions – This goes hand-in-hand with listening actively.  I used to do software support for a program, unfortunately named, “ManagER.”  So whenever a customer would call the company and even breath the word manager (usually looking for some glassy-eyed supervisor), the call would get transferred to me. I got plenty of opportunities to listen actively then.  Make sure you let the customer tell you all of their needs/problems before you offer solutions.
3. Becoming distracted – One of the best tools we have for multi-tasking is our phone.  One of the worst tools we have for multitasking is our phone.
4. Using negative words – Instead of telling a customer “No, we don’t offer blue recliners anymore since nobody wants them,” say, “We do offer brown and green recliners and we can take a look at special ordering a blue recliner, just for you.”  Also, replace “but” with “however” and replace “you can’t do that” with “we can do this.”
5. Be specific – If you are a pool business and you tell a customer that you will get to their house “sometime next week” and clean their pool, understand they may be upset when you call Thursday morning to come over that evening.  You may be there within your timeframe, but being vague may mean you are not within your customer’s timeframe.

TSBDC Seminar: Social Media Digital Marketing Course - July 12th and 19th

Friday, July 12, 2013 9:00 AM to 12:00 PM

Register for this event online

Fee: $ 99.00

Payment will be required at time of the first class on July 12th. Check or cash preferred.

This hands-on, computer lab course will cover the following:

July 12th, Class 1: 3 Hours
*Deciding on Your Platforms – Learning the Functions and Business Uses for Social Media
Platforms Covered:
o Facebook
o Twitter
o LinkedIn
o YouTube
o Instagram
o Pinterest
o Vine
o How to run effective campaigns that combine both offline and online marketing.
o Tracking – effective use of free/paid tools to streamline you social media efforts and tracking

July 19th, Class 2: 3 Hours
*Social Media Plan Building, Building an effective Social Media Plan (3 Hours – Hands On)
o Who and where are your best customers
o Define your voice
o Why would someone want to connect with you on social media
o What are the big ideas that are going to drive your campaign
o Content allocation – who will implement your social media projects
• Who – Who is going to do the work on your social media marketing
• When - developing a calendar / schedule
• Where - Office? Outside resources? Mobile? Computer?
• What – What pieces of content do you need? Do you need an image repository? Videos?
• Develop a detailed calendar to structure your social media activities

Speaker(s): Transparent - Jason Elkins

Already Registered? Sign in for more information.

Phone: 615-230-4780

Email: Send

July Workshops

July

Starting a Small Business workshop of Volunteer State Community College's Tennessee Small Business Development Center, 4-6 p.m. Thursday, July 11, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.
 
Social Media Digital Marketing Course - July 12th and 19th   workshop of Volunteer State ^th and July 19, 1480 Nashville Pike, Gallatin, TN in the Ramer Administrative Building, Computer Lab 175. Registration is required. Reserve online. www.tsbdc.org. $99 (payable at the workshop).
Community College's Tennessee Small Business Development Center, 9am-12 p.m. two consecutive Fridays, July 12

Do You Need to Incorporate Your Business? workshop of Volunteer State Community College's Tennessee Small Business Development Center, 2-4 p.m. Wednesday, July 24, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.


Getting Ready to Go to the Bank workshop of Volunteer State Community College's Tennessee Small Business Development Center, 3-4:30 p.m. Wednesday, July 31, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free. 

The Top 10 Differences Between Managers and Leaders

Sure they can be the same thing, but, they that's not always the case.  In fact, it rarely is.

TSBDC Seminar - Use Technology to Work Smarter, Not Harder in Your Small Business, June 11th

There's a big difference between being busy and doing things that matter. The most successful business people I know are the ones who can focus on the big picture, instead of getting distracted by "small stuff."

And let's face it, our days are overflowing with small stuff. We all have too many things on our to-do lists. Because we enjoy the satisfaction of crossing things off those lists, it's tempting to spend time on trivial tasks at the expense of really important ones. But we don't become more successful that way. Doing isn't the same as achieving. The key is to prioritize our activities so we're investing our time and energies where it matters most.

Speaker(s): Jim Butera - ITS Techs 

Fee: Free

June 11th, 2:00 - 4:00 pm, Betty Gibson Building at Vol State Community College

Click here to Register

Assuming Makes Something Out of “U” and “ME”

  A couple of weeks ago my four year old, Ava, was having quite the time in the tub.  Yelling, playing, and unfortunately, dumping out water.  I could hear my wife yelling, “no, no, no!”  But it was too late.  “Ava, what were you doing?” Sarah asked.  “Umm, I don’t know.  It was an accident?” Ava said in a questioning fashion, wondering if her new found excuse for everything would work again. 

   We explained why it was a bad thing to pour water out, cleaned the mess, and went about our normal routine.  That was until I was in the bathroom directly below the “Great Flood” and noticed some new water stains on the ceiling! “Bad words!”  (I’ve learned to actually say “bad words”instead of the real thing.)  I was not a happy camper and showed Ava why we don’t pour water out on the floor.  She felt bad.  She helped to put out a toy cup to catch water drops and gave me a dollar out of her piggy bank to fix the damage.  I had been a bit of a jerk to my baby girl, so now I felt bad.  But, it appeared the damage was done, so I would have to wait until the morning to see how much worse it would get.

   The following day, I did notice a small leak coming through one of the newly formed water spots.  Nothing major, but it was there.  I placed a five-gallon bucket under it and went to work. I asked my mother-in-law, who was coming to the house for babysitting, to call me if things got worse.  She called.  She said it looked worse and even sent a picture.  It didn’t look too bad to me.  What I didn’t ask about was the five-gallon bucket.  I should have.  When I got home it was almost full!  “Bad words!”  I called a local plumber and I started cutting out the now larger wet spots in the ceiling.

   After two hours, several more holes, and a keen eye, Ben the plumber discovered something I had not considered.  A leak.  “A leak”, I said.  Wow.  What are the odds?  And then I thought about poor little Ava and how I was a jerk.  “Bad words!”  I gave her an apology and tried to give her the dollar back.  She said “that’s okay Daddy, you keep it.”  Sweet girl!

   The assumption was that Ava caused the leak.  I was wrong.  It was, perhaps, a logical assumption, but it was the wrong conclusion. 

   Let’s take a look at bad assumptions made in small businesses:

• Assuming that your employees are purely motivated by money.  Sure, they want to get paid; however, they primarily want to know that what they are doing matters, receive recognition, and work for someone they respect.
• Assuming that your old method of advertising is still working, without tracking where your revenue is coming from.  Conversely, assuming your new advertising is a big flop, because it didn’t make it rain dollar bills in the first week of implementation.
• Assuming you can only more revenue from new customers.  Most of the time, the best way to increase revenue is with your existing customers.
• Assuming your bookkeeper is doing everything correctly.  If you don’t read your financial statements on a regular basis,you may have a lot in common with an ostrich that has its head in the sand.
• Assuming that you need to borrow money, when your business is short on cash.  More times than not, the cash flow issue is from lack of effective marketing, not collecting accounts receivable, and letting expenses get out of control.

U.S. Bank donates to Tennessee Small Business Development Center

Thanks U.S. Bank!

U.S. Bank recently donated $2,000 to help support the Tennessee Small Business Development Center at Volunteer State Community College. The TSBDC offers free and confidential one-on-one counseling for existing and start-up businesses. Free and inexpensive workshops designed for the small business owner are also available. Pictured: Karen Mitchell, vice president of resource development and executive director of the College Foundation; Justin Hays, branch manager U.S. Bank in Gallatin main branch; Hilary Marabeti, assistant vice president for Continuing Education and Economic Development; and Charles Alexander, director of the TSBDC. / Submitted

Why Business Leaders Should Think Like Artists

Best-selling author Seth Godin challenges entrepreneurs to get out of their comfort zones and embrace vulnerability. 

June Seminars

June

How to Read and Draft Common Contracts for Small Businesses workshop of Volunteer State Community College's Tennessee Small Business Development Center, 2-4 p.m. Tuesday, June 4, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Government Contracting workshop of Volunteer State Community College's Tennessee Small Business Development Center, 2-4 p.m. Wednesday, June 5, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Room 110. Registration is required. Reserve online. www.tsbdc.org. Free.

How to Write a Business Plan workshop of Volunteer State Community College's Tennessee Small Business Development Center, 2-5:00 p.m. Thursday, June 6, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. $30, payable at the time of the workshop.

Use Technology to Work Smarter, Not Harder in Your Small Business workshop of Volunteer State Community College's Tennessee Small Business Development Center, 2-4 p.m. Tuesday, June 11, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Starting a Small Business workshop of Volunteer State Community College's Tennessee Small Business Development Center, 4-6 p.m. Thursday, June 13, 1480 Nashville Pike, Gallatin, TN in the Betty Gibson Hall, Gibson Conf Room 104. Registration is required. Reserve online. www.tsbdc.org. Free.

Digital Marketing Course - Four consecutive Fridays, June 28, July 5th, 12th, and 19th workshop of Volunteer State Community College's Tennessee Small Business Development Center, 9-12:00 p.m. on Fridays, May 3, 1480 Nashville Pike, Gallatin, TN in the Ramer  Admin Bldg, Room 175 Registration is required. www.tsbdc.org. $299, call 615-230-4780 or email charles.alexander@volstate.edu to reserve a spot.

5 Reasons Why Talented Employees Leave Their Jobs

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7 Small Business Trends

I’m often asked what is new in the world of small businesses.  Unfortunately, over the last five years or

so, the talk for most folks has been how the sky is falling.  Well, several smart and hard-working entrepreneurs have ignored the economy and have changed the small business landscape.

Here are seven trends in the world of small businesses (according to me, at least):

1. Social Media – Social media is not the new hip thing.  In fact, if you haven’t already found a way to properly utilize Facebook (1 billion users), Twitter (500 million users), LinkedIn (200 million users), or Pinterest (50 million users), you are already behind.
2. Video – Yeah, I know I’ve hammered this home a few times, but I had to include it.  All the cool kids have video on their site.
3. Mobility – The days of going to the office may be over.  The average small business owner wakes up, checks their phone, has a home office, uses Google docs/apps, video chats with employees, networks mostly online, and has constant interaction with customers online.  Also, everybody has a Smart Phone now. Everybody.
4. Hiring – Many folks that have been laid off for the eleventieth (it’s a real number) time have decided to be self-employed.  So now we do not see that many people looking for, let’s say a bookkeeping job, versus handling bookkeeping for 4 -5 different businesses.  The same is now true for anything I.T., graphic design, accounting, or even janitorial services. 
5. Specialty Based – I remember as a kid, you wanted a jack-of-all-trades for everything.  That’s not the case anymore.  Successful business owners know that having a niche is a quicker path to success.  For example, instead of a handyman, maybe you want to be a restaurant maintenance specialist; instead of a clothing retail store, maybe you want to have a men’s big and tall consignment store; instead of an insurance agent talking home, life, and auto, you become a construction policy guru.  You get the idea.  Better to be good at one or two things that give you a competitive advantage than be mediocre at 10 things.
6. Sustainability - According to a 2011 study by MIT, sustainability is now a permanent part of 70% of corporate agendas.  According to a survey conducted by Cohn & Wolfe, a majority of consumers in all countries say that it is very or somewhat important that companies are environmentally-friendly and 35% are willing to spend more for green products.  Green Village Recycling and Rhoades Car can attest to this. 
7. Authenticity - Customers want to engage and be a part of “something.” Customers are willing to pay premium prices for authenticity. The International Council of Shopping Centers Survey says "71% of respondents are motivated to shop locally because 68 cents of every dollar spent at a locally-owned retailer stays in the community."