COVID-19 Relief for Small Business Owners and Employers

By Jessica Suotmaa 0

With the current COVID-19 pandemic, the closing of non-essential businesses, and the fears for an upcoming recession, many small business owners are either suffering, or preparing to suffer. We, at Lum Law Group, are in the same boat. We are also a family-owned small business with few employees that, for the most part, caters to our local community.  While we are still answering calls and helping existing and potential clients, we share the same concerns as our clients, our employees, and our fellow small business owners.

In this article, we have outlined relief and resources that may assist small business owners during these difficult times. We would like to remind you that you can call us if you need assistance with vendors, landlords, or any other COVID-19 related issue. We are here to help!

Payroll: Paycheck Protection Program

Part of the CARES Act was to fund the Small Business Administration (SBA) to provide assistance to small business to continue to make payroll.  The SBA’s Paycheck Protection Program (PPP) allows businesses with fewer than 500 employees to borrow money specifically for payroll.  Less than twenty five percent of the borrowed amount can be used for other things, such as mortgage interest, rent, and utilities. You can borrow enough to cover an eight week period, which must be used within eight weeks after receiving the funds.  Loan repayments are deferred for six months.

While applications opened today (April 3, 2020), SBA announced that self-employed individuals and independent contractors will not be able to apply until April 10, 2020.

Payroll: Defer Paying Social Security

If you are self-employed, or have employees, you can defer making the social security portion of employment taxes for the time being.  This would mean a reduction of 6.2 percent tax paid on wages. The deferral allows you to pay the deferred amount over a two and a half year period, where half of it would have to be paid by December 31, 2021 and the second half by December 31, 2022.

Payroll: Keep Paying Your Employees

As part of the new economic stimulus plan, if you can prove that your business has lost fifty percent or more in profits due to coronavirus, your business can qualify for a “prize” for retaining your employees. Even if your business is closed, if you keep your employees on payroll, you can qualify for up to fifty percent of your employee’s wages.  This “prize” for keeping payroll not only helps your employees who may not be able to work from home, or may not have much to do.

As an employer, you will receive the prize in the form of a tax credit on your business tax return.

Note: Businesses that receive a SBA loan will not qualify for this tax credit.

Tax Deduction: Restaurant, Retail, Hotel

If you are a restaurant, hotel, or retail store owner, you can prepare and file amended tax returns to deduct the cost of property improvements. This deduction was supposed to be part of the 2017 tax overhaul anyway.

 

As you can tell, most of the available relief is for employers.  If you have questions about California unemployment benefits for independent contractors and self-employed individuals, please visit the EDD website. If you would like to learn more about the “stimulus check”, please read our post here.  If you have issues with vendors, landlords, business partners, etc. please contact us for how we can help you. Together, we can get through the crisis!

What Parts of Your Business Should You Evaluate Before Expanding Overseas?

By Lisa 0

After becoming successful, many companies to expand their business operations globally. In the US, most entrepreneurs fail within the first five years, so if your business is still standing—congratulations!  As a result, you might think because your business is successful here in America that you can easily spread your business out to the rest of the world. However, expanding into other countries just doesn’t happen overnight, and having success in America doesn’t always translate into successful foreign operations. There’s much to be examined in yours business before you should make the big jump. Here are a few things you can evaluate before expanding your business overseas.

Your Product

Don’t assume that because your product sells in America that it will universally sell everywhere. Do your research beforehand. Just about every global company tailors their products to different markets. For example, Samsung has what’s called “Made For India” which manufactures and sells products to suit average lifestyles in India. You have to give customers what they want. Read up on the culture, laws and regulations of the country you plan to expand into. From there, tailor your product and your marketing to the specifications needed to succeed in that country.

Your Leadership Team

Believe it or not, many businesses have business teams that aren’t very productive. While this doesn’t seem to stifle their success, having a strong leadership team can be the driving force to continued success if utilized properly.

Any well-functioning leadership team should be able to set the path going forward. While each team member has different functions they oversee, they should be able to come together and overcome any problems within the company. If they have trouble with these tasks, consider team coaching to develop your leadership team’s skills. Evaluate your leadership team on how they accomplish these roles and make changes if needed. Evaluating and investing in your leadership team is important, as the leaders’ decisions affect the rest of the company.

Your Employees

Don’t forget about your employees. Your employees are likely the reason as to why you’re in the position to expand your business in the first place. Employees will need to be notified about the international expansion as well as trained on any new tasks they will need to do in the future.

These are just a few of many things you’ll need to look at before going through with your overseas expansion. Again, this doesn’t happen overnight. Expanding your business overseas can be a successful venture if planned properly. Take the time to carefully examine the current state of your business and make needed adjustments before making the big jump.

 

Here’s another article you might like: Outsourcing, Offshore And Overseas: What Do I Need To Know?

Does your business act like a business?

By Jessica Suotmaa 0

Don’t say we didn’t warn you, but the implementation of new tax regulations may cause many business owners to lose their business deductions when their “business” is reduced to a mere hobby.  Budding entrepreneurs need to ensure their business is set up correctly. Meanwhile, existing business owners need take a magnifying glass to their business to ensure their businesses are both set up and run like a business. In this article we’ll outline the basics of what it means to own a business that’s correctly set up as a business, as well as what it means to act like a business.

1. Form a business entity

It’s more challenging to prove your small business isn’t a hobby if it’s not registered as it’s own entity.  Hire a professional to determine which business type would be most suitable before registering with your local government.

2. Create a professional website

Whatever your business may be, a professional website will help validate it for your customers.

3. Open a separate business account

Keeping your business and personal expenses separate will simplify your year-end bookkeeping—especially come tax time. Open a business bank account and credit line to ensure they’re separate.

4. Open a business email at a professional domain

Many of our clients already have separate business emails but at the same email server as their personal email.  To solidify your professional business image, and to ensure it’s security, open a new email account with a professional domain, such as your own company’s dot com.

5. Draft written contracts

Don’t allow your clients to weasel out of contracts or make last minute changes. Hold them accountable by drafting written contracts and requiring your clients to sign them prior to beginning work.

6. Provide invoices

After you’ve completed work, always invoice your clients, and ensure that the invoices match incoming payments.

7. Advertise your product or services

Even if you rely on word-of-mouth to obtain new customers, try listing your business with a business registry if advertising is out of your budget.  The purpose is to prove that your running your business with the intention making a profit, and advertising your product or services plays a large part in it.

In order to “act like a business” and deduct relates business expenses on your taxes, even the smallest side business must follow the above rules.  If you’re still a freelancer thinking about expanding to a full-fledged business, or want to be treated (taxes) as a business, then start right from the beginning and follow our tips to avoid issues years down the line.

Business Safety Requirements You Shouldn’t Ignore

By Lisa 0

As a business owner, you understand the plethora of risks that are placed on not only yourself but your company as well. The most important of areas to have a risk assessment conducted on is on your safety requirements. A common mistake made within a variety of “low risk” jobs such as you would find in an office building is that many crucial safety requirements are not followed. This isn’t because they are not considered, but because owners believe they don’t apply to their industry. Therefore, the following list includes a few general business safety requirements you shouldn’t ignore.

Insurance

Although most business leaders understand the importance of having insurance, they might not be thinking about the right ones. A company, whether or not it is required by law, should have the right insurance in place, according to NFIB. One of the most important ones to have is workers’ compensation insurance. This insurance can help you greatly as it provides your employees with enough resources to sustain them after a workplace injury. This also reflects well on yourself and the courts if they decide to sue your company.

PPE

PPE or Personal protective equipment are pieces of equipment that are used to protect employees from hazardous obstacles and or illnesses. One of the most common injuries seen within an office building is back injuries from attempting to lift heavy boxes. If your employees are constantly needing to reach for heavy boxes and carry them around, you definitely need to provide them with the right equipment, such as an industrial back belt. This also includes the use of signs warning of danger within your various rooms. According to Creative Safety Supply, as the employer, you are responsible for providing PPE, making sure that it is accessible, and sufficient, and that employees know how to use it.

Distractions

Business leaders within the construction business can attest to the serious issue of worksite distractions. Accidents on the worksite can often be traced back to a lack of communication. However, when investigated a little further, it is not a lack of communication that was the issue but an introduction of distraction. This comes in the form of listening to music while working, fatigue, and even using cell phones for other activities other than work. You, as their boss, must make sure that these distractions are not being created within your workplace.

Running a business is no easy task. You are constantly presented with issue after issue. However, safety must always be your first priority. This is to protect not only yourself but your employees and customers as well. Simply follow some of the tips laid out above to begin implementing proper safety requirements into your business.

For all your business law-related needs, contact us so we can assist you!

Event Space for Your Small Business

By Lisa 0

Hosting events for your small business is a great way to bring your team together, gain exposure in the community, and network with industry partners. Whether you’re planning a training, networking, or some other type of special event, it’s vital that you make the most of it. To help you plan the perfect event, here’s a list of the do’s and don’ts to keep in mind.

Don’t Underestimate Planning Time

The last thing you want to do is to wait too long to start the planning process. Most business events take several months to plan. Create a planning timeline right from the start to keep you on track.

Do Set Clear Objectives

Before you even start the planning process, you must have a clear set of objectives and goals in place. Put these goals into writing to ensure everyone on the planning committee is working towards the same objectives.

Don’t Assume Anything

When it comes to planning a business event, don’t assume anything. Instead, get everything in writing, including vendor contracts, RSVPs, and committee meeting notes. This step is especially important for last-minute changes and late registrations.

Do Plan Thoroughly

It’s critical that you take the time to plan every single detail of your event. Meeting room experts recommend that you have your entire event planned at least two months before the big day. This two-month period gives you enough time to deal with any potential issues and make changes if necessary.

Don’t Skip Marketing

To make the most of your event, you must invest in marketing. Create a social and email marketing campaign that explains why someone should attend your event and how it will help them.

Do Develop a Contingency Plan

Chances are that at least one thing will not go as planned on event day. It’s a good idea to always have a contingency plan in place that you can fall back on if the need arises.

Don’t Forget Follow-Up

Many business leaders forget one of the most important steps in planning an event – to follow-up. Always take the time to follow up with attendees. Ask them if they enjoyed the event, what could have been better, and what other events they would like to see in the future.

Do Set a Budget Early

Planning a business event can become extremely expensive if you are not careful. Take the time to set a clear budget for your event early in the planning process. You can make adjustments can later if necessary, but a preliminary budget should be set right away. 

Hosting an event for your small business can be a great opportunity. The important thing is to give yourself plenty of time to organize your event and use that time wisely. We stand ready to help you grow and protect your small business for maximum improvement.

How Data Analysis Can Improve Your Small Business

By Jessica Suotmaa 0

If the term “data analysis” seems frighteningly out of reach for your small business, let us clear up how it can be of help. We are also a small business and often find ourselves dealing with an overwhelming amount of data, or options, and we feel like it’s getting out of hand. So data analysis has been sitting on our desk, under a pile, waiting to be tackled.

It’s tempting to just hand over all the data to a professional or hire a service, but that doesn’t always go well. When we tried it, we were asked more questions than we could answer. We were given many demands we thought they would handle, and in the end we felt conned; if we had known the amount of time and effort we would put into it, we would’ve just done it internally. Of course then we did exactly that. Here’s how we looked at incorporating data analysis in our small business.

What can Data Analysis do for me?
The reason we need data analysis in our small businesses is so we can make better, more informed decisions. The purpose of collecting data is to have proof supporting the decisions we make. Otherwise we might make decisions based on personal preference, inaccurate facts, or other subjective reasons. Collecting data allows us to base our decisions on facts.

How do you collect Data for Data Analysis?
Depending on the type of business you have, you may already have data collected. It could be the client management software, it could be your sales reports, or it could even be your social media insights.

Step 1: What questions do you want to answer?
Identify the issues and challenges in your small business that guidance. The right questions are the key to good data analysis. Your questions should be specific.

For example, if your business has been slow and struggling to cover your overhead, you need to figure out what to do. You could have the following question:

1. Can I reduce costs by reducing the number of employees without affecting current quality/production?
2. Is there anything fixable preventing my employees from working more efficiently?
3. Is there training I can offer my employees to increase their skills and reduce the number of employees needed?

Step 2: What Data does your business already have?
Take a close look at what data your business already has and see if it can answer your questions. If not, see about what data you would need to answer the questions you have. Then, brainstorm how you could go about collecting it.

In the above example, the data necessary could be the efficiency and output of each employee, the overall client/sales projection for the near future, and how much each employee costs the company.

Step 3: What will you measure and how?
Once you’ve narrowed down your key questions for resolving your issue, you can start deciding on you’ll measure and how you can measure it. The specific what and how depends on your questions and your data. For our example, we can decide to measure the number of employees our company has, the amount they’re paid in wages, and their output or efficiency.

This is a good time to verify your questions will result in quantifiable answers.

Once you’ve determined what you’ll be measuring, you can also define how you’ll measure it. Part of the “how” is determining the following:

– Timeframe (deadlines and parameters)
– Unit of measure (Hours? Goods? Dollars?)
– Factors (wages might not reflect complete benefits)

Step 4: What additional data does your business need?
Perhaps in defining the questions, measurements, and methods of measurement you’ve realized you have insufficient data. Maybe you haven’t successfully quantified the output or value of each employee in your business. Or you don’t know how efficient each employee could be. Either way, you’ll need to develop a plan to measure applicable data.

To measure data you can go backwards and look at the past assignments, or you could go forward and record for a certain period of time. Regardless, it will take time to collect the necessary data. Know that all you can do is have the templates, instructions, and systems prepared so that once your data is collected/organized, it can be plugged in easily for analysis.

Step 5: Analyze the data

Once you have all your data in one place, you can analyze and interpret the results. The goal in data analysis is to disprove the hypothesis or not disprove the hypothesis. This means you can’t prove your hypothesis and a positive result is an ongoing process.

Here are a few questions you can ask yourself once you have the results from the data:

– Does the data answer my question?
– Does the data help prove or disprove a point?
– What are the limitations of the data analysis?

Assuming your data analysis results answered the question you had initially posed, you can count it as successful. You can go ahead and plan how to execute the plans for improving your business or solving the issue at hand. Rest easy knowing your decision is proven by measurable and quantifiable data.

Do you have any questions about starting a business? Or running a small business? Send us a msg and we’ll sit down with you to see how we may be of service.

4 Assets That Can Help You Scale Your Startup

By Lisa 0

Just because you have a small-scale business operation doesn’t mean you have to forego a professional look and feel. In fact, securing a professional appearance is essential to the successes of all small businesses. Consider using these four assets to help your small business project a confident and high-level demeanor.

A Professional Phone Number

Voice over internet protocol (VOiP) is a technology that allows you to use broadband internet to make telephone calls. Using VoiP will provide you with cost savings and other advantages. One of the biggest advantages is that you can talk to your clients from anywhere in the world as long as you have an internet connection. VOiP services generally have excellent phone connections and can be bundled with other services such as voicemail, fax, caller identification, call forward, last number redial and more.

Small business owners may also consider purchasing a toll free line (subscription) to give your business further credibility.

A Professional Business Presence

Even if you’re operating out of your home, you can use a virtual office to direct mail to a real business address. The appearance of a physical business location will go a long way toward establishing the power of your brand.

Entrepreneurs have several choices in this matter. If you work completely on your own, you can share a co-working space with one or more individual. Many co-working spaces also offer mailing address only services for a fraction of the cost of having conference room and shared space access. Other options include setting up a virtual mailbox online that will provide you with a physical mailing address. Vitrual mailbox services provide alerts when it receives physical mail on your behalf,  allowing you to manage your mail online. 

A Powerful Web Presence

A website isn’t a luxury, it’s a necessity. However, these days it is not just enough to have a website.  You need a website that will help potential clients to identify your brand. A website with an attractive design, informational blog posts and other key elements will help establish your small business as a local authority in your industry.

A Loyal Network

You are your own biggest asset. What you know and how you keep your customers happy is, perhaps, the biggest factor in scaling your business. By providing the best possible products or services, you’ll keep customers happy.  By keeping in touch with your previous customers and bringing them back as repeat customers, you are forming a network around your small business.  Doing so can lead to word-of-mouth, or testimonial marketing, a recognized economical method of getting more customers.

Remember that every business was once a startup. The key to scaling it is to wisely use assets available to you, including your own talents. 

If you’re growing your business and need legal advice, we’re here to help! Contact us today to discuss how we can help you.

Why the Order of Business Matters

By Jessica Suotmaa 0

Did you ever wonder which came first, the chicken or the egg? Similarly, you may have wondered if you should be filing your company with the State or with the Federal Government first? Or perhaps they’re just one and the same?

They are not.

There is an order which you should follow, but consultants offering quick and helpful tips will tell you to register for a tax identification number first. After all, if you’re a small business owner just getting started, you need your tax id to open a bank account and give to vendors to receive payments. Obtaining a tax ID may be your primary concern and all that other paperwork can be handled by them.

Note: Most banks require your State registration documents to open a bank account.

You pay them to set up the tax ID for you, and you don’t hear back unless there’s a problem–but usually there isn’t and you obtain your tax ID immediately.

Note: You can apply for a business tax ID for free on the official government website.

Then a month later, you may discover that you cannot use the name of your business. Someone else has already claimed it but you didn’t know because you didn’t check the name on your local State’s Secretary of State website.  It’s a quick and free search that prevents you from pursuing registration for a name that is not available to you.  In other words, it prevents you from wasting time and money.

So now what? You have to change the name on your tax ID because it doesn’t match. You may have to change website domain names, email names, logo designs, business cards, and other promotional material in which you’ve already invested.

Not ideal.

To avoid a situation where you have to back track, start the process the right way.  The correct order for starting a business in California is as follows:

  1. Determine your business needs by the type of business you’ll be doing.
  2. Talk to a professional (such as an attorney) about the best way to organize your business (e.g. partnership, LLC, corporation).
  3. Decide on the organization and tax methods.
  4. Decide who will be the primary responsible person.
  5. Decide on a company name, trade name or “doing-business-as” (DBA) name.
  6. If applicable, search the State’s Secretary of State business website for the business name of your choice.
  7. If the name is available, prepare documents for registration.
  8. Pay applicable fees.
  9. Wait for the documents to arrive.
  10. Apply for the Employer Identification Number (EIN), aka “tax ID”.
  11. If applicable, order a copy of your corporate book.
  12. If applicable, order your marketing materials.

Starting a business can be challenging. While it’s tempting to allow companies that offer package deals to do-it-all for you, it’s important to realize you need to know what they are doing for you. Is it to your advantage? Will your business outgrow the model? Is the organization or tax method appropriate for your type of business? Consult a business attorney for professional advice.

3 Interview Questions to Stop Asking in California

By Jessica Suotmaa 0

If you’re a small business owner who isn’t accustomed to hiring, you’re probably unaware that many of the common interview questions from “back in the day” are now illegal to ask in California. We’ve divided this article into two sections: the three questions you need to stop asking now, and the three questions you should’ve stopped asking yesterday. Read on for how you can protect your business from employment discrimination claims.

Stop Asking These Questions Today!

1. “What are you making now?” Or, “How much were you making at your previous position?”

Remember when job ads would require a “five year salary history” in the cover letter? Those days are gone in California.

Previously, hiring managers might ask how much a job candidate was making, or is currently making, and decide which candidate would be the “cheapest” to hire.  Hiring managers may also offer different compensation packages based on current or prior salary history. As a result, if there was a wage gap between men and women, that wage gap was further increased with each new job offer.

California passed AB168 in 2017, which went into effect January of 2018, prohibiting employers from asking for a “salary history” or inquire how much a candidate is or was making at a previous position.

Note: If a potential hire reasonably requests a “pay scale“, you are required to provide it.  AB2282 clarifies that a pay scale is a salary or hourly wage for the open job position and does not have to include bonuses or other benefits.

2. “Have you ever been convicted of a crime?” or “Check here if you have criminal convictions.”

Gone are the days of asking an applicant about their criminal history at the interview.  California requires employers to discover any criminal history in the background check process. The bill, AB1008 was signed into effect in 2017 following the lead of San Francisco and Los Angeles cities, banning employers with five employees or more from asking about a candidate’s criminal history on job applications.

You don’t begin the background check process until after you have extended an offer of employment. You cannot run a background check before offering the position to the candidate.  If the background check results prevent you from hiring the candidate, you are required to follow these steps:

  1. Inform the candidate of the results and explain why you’re rescinding the offer.
  2. Provide a copy of the background check report (if available).
  3. Allow the candidate five (5) days to respond and defend themselves.
  4. If the candidate responds to the decision, you are to wait five (5) more days to consider his or her defense.

Note: The exception to the rule are employers who run medical facilities and hire employees who have access to drugs.

3. “How’s your credit score?” Or, “Will you consent to sharing your credit report?”

Where previously potential employers could obtain an applicant’s credit information as part of the on-boarding process, California now limits it to certain occupations.  You can no longer slip in credit consent forms into the offer package, nor can you judge a candidate’s hire-ability based on their credit report.

California limits the use of credit history in employment decisions, but does not outlaw it.  The following are exceptions to the rule:

  • Department of Justice employees
  • Managerial position
  • Peace officer or Law enforcement officer
  • Any position wherein a credit check is required by law
  • Position wherein an employee would regularly access credit card information
  • Position where an employee is a signatory for an employer’s bank or credit card account, or authorized to transfer funds
  • Position that involves access to confidential or proprietary information
  • Position that involves access to $10,000 or more of cash.

 

Are you not sure what you can ask now? Do you have questions about your job description? Contact us today!

 

4 Characteristics of Wildly Successful Startups

By Lisa 0

If you’ve studied successful startups, you might think that what makes a startup take off or remain permanently grounded is just luck–or a fluke. While all startups are unique, and there’s no guaranteeing that one will be a success, there are certain characteristics of startups that help them succeed better. Here we list the characteristics that every successful startup needs to ensure they cover.

Location, Location, Location

Where you place your startup is of great importance. Entrepreneurs should take into account several factors, including the visibility of signage, rent, utilities, and the relative safety of the area. This isn’t just a matter of choosing the right neighborhood in your city. It’s also about choosing the right city. You want to make sure your startup is located in a city that will be conducive to its growth but not so competitive that it’ll be washed out. Even if your startup is based online, you still need to consider practices like choosing shorter domain names and having a worthwhile host.

Business Sense

A startup can really teach you about the ins and outs of running a business. However, while there’s plenty you’ll learn through trial and error, there’s plenty more that needs to be grasped before you open your doors. As a startup founder, you should have a thorough comprehension of basic budgeting, hiring needs, and marketing. Be sure to hire people who have at least some startup experience.

Pacing

The most successful startups didn’t start raking in mountains of cash overnight. They got to reach their impressive heights because of discipline. As much as you might long to be a smash right out of the gate, you need to work your way up the ladder of success. Make a multi-year plan of things you hope to accomplish by certain dates. This will help you know what to strive towards. Then you can follow the steps and check-in with yourself regularly. Remember, consistency is key!

A Strong Legal Foundation

You need to consider what sort of business you want your startup to function as. You could be an S-corp, which lets owners and workers share income easily but caps the number of allowable shareholders at 100. You could be an LLC, which allows business assets to be kept separate from personal ones in the event of financial hardship, but you’ll have to cover self-employment tax. You could be an LLP, which can be more cost-effective but are restricted by some states. You could also be a proprietorship, which gives you singular reins of your organization but which makes you culpable for any marks on the business. This is a decision you shouldn’t make lightly.

When creating a startup, entrepreneurs can get stuck on having the most innovative idea above all else. While that’s certainly important, they shouldn’t forget about basic standards to follow. All of these characteristics are common among successful startups because they are sensible and important when it comes to sustainability.

Before you go anywhere with your startup, you need to make sure that you have all your legal bases covered. Lum Law Group would be happy to answer your questions and help your new business get started!

 

3 Things You Can Do to Make Interviewing Job Candidates Easier

By Lisa 0

While startup founders are well-known for their skills in selling their business, they’re also known for being smart about hiring.  Small business owners, especially long-term owners or new entrepreneurs, may not be as hiring savvy. If you’re new to the hiring process, here’s a few strategies you can employ for a more successful interview. 

Prepare to Sell the Position

A job interview is a two-way street. The candidate is interviewing you every bit as much as you are interviewing them. You will need to give a candidate a reason to want to work for you, knowing that they may have several employment options available to them. In order to prepare, you should figure out ahead of time what the selling points of your organization are and prepare an elevator pitch.  Rehearse how to work them into the interview. Expect that every candidate who walks in the door will be the right candidate for the job and be ready ahead of time to seal the deal.

Prepare Questions Beforehand

Job interviews are generally not very long. Before you know it, you are saying goodbye to the job candidate and sending them on their way. Wasting time during an interview helps neither you nor the candidate.  By taking some time before the interview to plan the flow of the interview and the questions you’ll be asking, you can use the scheduled time more effectively.  Just like you can sense that a candidate came unprepared, they can sense the same of you.  Not only does a little preparation go a long way to making a good impression, it also helps to guide the conversation. Come up with a few questions that you believe will give you a sense of your candidate’s abilities. It’s also a good idea to know who you can and can’t hire.

Practice Active Listening

President Lyndon Johnson once said, “You aren’t learning anything when you’re talking.” This holds true when you are conducting an interview as talking too much is one of the common mistakes that interviewers make. While you want to sell your company, an interview is also your chance to see how a job candidate handles certain situations and responds to pressure. It is difficult to get a sense of the candidate when you are the one who is doing all of the talking. At the same time, practicing active listening does not necessarily equal silence as it is possible to listen and still participate in the conversation.

By knowing ahead of time how best to conduct a job interview, you can go a long way to ensuring that interview will be productive.  A good job interview helps you schedule fewer interviews, spend less time interviewing, and ultimately find the right candidate quicker.

If you would like share your interviewing tips and experiences with other new employers, please comment below!

5 Scams Every Small Business Owner Should Know

By Jessica Suotmaa 0

At the end of the year, many small businesses take stock and plan how to do better in the next year– much like how individuals check their bank accounts and step on their scales to see how they can improve those numbers come January 2019.  The desire to improve is commendable. Yet, where large companies have skilled experts on their payroll to apply tried-and-true strategies, small businesses don’t.  They rely on external professional opinions. As a result, scammers tend to target solo entrepreneurs and small business owners.

1. The “You don’t know anything about SEO or websites” Scam

Nearly every day, we get an email from someone who claims to be an SEO expert.  Granted, a few of these professionals might actually know a thing or two about SEO, but even they make their services sound too good to be true.  These professionals will inform you that if you knew SEO, or had a better website, you would have more customers.  Your website would rank higher on Google Search Results.  Your business would get more exposure, which then would result in more sales, or clients, or fame.

The truth is that you don’t know if they have SEO skills. You don’t know if their website design is better than your current one, or the one you were thinking about designing.  The SEO scammer knows you lack the internet knowledge to question their scam, and will send you “personalized” reports that they can generate with a click of the mouse.  These reports are copy pasted information that will tell you all the things you need to improve–for a price.  All your problems can be solved by throwing money at them.  Don’t forget to ask them how much.

2. The “You Deserve An Award or Feature” Scam

Back in the day, scammers used to sell “directory listings” as a way for small business owners to gain exposure and new clients.  The SEO scam is a modern version of that scam, but there is another scam that is similar: the “Congratulations! You have been featured” scam.

In this scam, you receive an email or phone call about you, or your company, has personally been selected to be “featured” or awarded something.  The scammer provides a lot of details on the publication, company, or organization that is granting you this great honor, and asks you quite a few questions about when you would like to be “honored”.  At the end of the conversation, they will give you a price.  It’s usually a few hundred dollars for an award and a few thousand dollars for a feature.

Many small business owners will think of it as an “investment”, thinking this cost will be offset by the respect having that plaque or print magazine feature hanging on their wall will buy them. If you feel the same way, that’s fine with us, but we think it’s cheaper to self-publish.

3. The “You Can Be Like Me” Scam

The modern day “You Can Be Like Me” scam is usually done by an “influencer“, someone who is popular, has a wide following, and is able to use his or her influence to sell products and services.  First of all, there are plenty of influencers who are not who they say they are, but there are also influencers who are not as wealthy or successful as they claim to be.  They use their popularity to gain free products and services from businesses in exchange for reviews and exposure.  On an initial level, a small business owner can be scammed by a person who claims to be an influencer, but actually only has fake followers. That’s why there’s no ROI.

On a second level, the influencer will sell coaching programs to teach ordinary people how to become like them.  When they target small business owners, or aspiring entrepreneurs, they will highlight how easy it was to get started and how they earn “passive income” and were finally able to quit their nine to five jobs.

On a final level, there are professional coaches who aspire to be influencers.  They sell coaching programs that promise you great things, but it’s almost impossible to verify their credentials. It is also difficult to glean whether or not a coaching program has worked for you.  Are you lagging in progress because your coach is sub-par, because the content doesn’t speak to you, or because you haven’t been putting in enough effort? If something doesn’t work, the coach will say they have a better idea and this next strategy will definitely work for you.  It’s comparable to the blind following the blind.

4. The “Phishing Scam”

Scammers “fish” for your company information via a “phishing scam” by telephone or email.  If by email, they will impersonate a real company, such as Google or Fedex, and ask that you “login” to their fake website that looks exactly like the real website.  If by phone, they will try to “verify” your information over the phone, and expect you to make purchases or pay bills on the phone with them to gain your credit card information.  Avoid this scam by directly typing the URL of the website your trying to access rather than clicking on email links. If you receive an email that you suspect could be a scam, avoid clicking anything and mark as spam immediately.

5. The “Did You Forget” Scam

Scammers know that small business owners tend to have an external accountant, or someone else in the company acting as bookkeeper.  They also know that small business owners tend to be busy and do not have time to mind every single invoice that enters their inbox.  As such, they will often send random invoices, even past due reminders, to pressure accountants to pay off balances immediately.  We have seen emails for services never rendered, hotel vacations in Ventura, and office supplies we didn’t buy. Be careful of email invoices and ensure that every invoice is matched with an internal request.

 

We hope by writing and talking about the five scams we’ve listed, and more, we can help small business owners avoid being scammed.  Remember, if it sounds like it might be too good to be true, it probably is.  For the official Federal Trade Commission anti-scam guide, click here.

Are you worried you might be a victim of a scam? Give us a call and talk to our attorney today.

 

5 Things Startups Need to Know About OSHA

By Lisa 0

Every business should be concerned about employee safety, whether you are part of a large organization or a fairly small one, including startups. And even offices have occupational hazards, so don’t be lulled into thinking that only jobs involving physical labor need to be aware of OSHA regulations. If you’re part of a business, then you need to know and be able to implement workplace safety. To help you better understand OSHA, here are five things that businesses should know.

1. What is OSHA?

OSHA stands for Occupational Safety and Health Administration, and is under the United States Department of Labor. The OSH Act was created to ensure the safety of employees while they are at work. OSHA is a government agency that regulates workplace safety practices, ensuring that all employees have a safe place to work.

2. What and Who is Covered Under OSHA?

According to the OSH Act, employers are required to provide a safe work environment that is free of known hazards. This covers all potential hazards such as dangers from chemicals, trips and falls, workplace violence, and almost all other potential workplace hazards. One of the few exceptions to this is any hazards that involve food with workplaces that sell it. Private sector businesses are required to be in compliance with OSHA regulations, but self-employed individuals who do not have employees are not. It is critical that if you are thinking about starting a business or have already started a business that you comply by the OSHA rules and regulations.

3. What Services Does OSHA Offer?

OSHA offers training, education, and outreach programs for businesses. These services are designed to equip businesses and their employees with necessary knowledge in order to work safely. Among these opportunities are classes and grants to help non-profit organizations become more knowledgeable about workplace hazards and how they can be avoided and minimized.

4. How Are OSHA Regulations Enforced?

One of the ways that OSHA regulations are enforced is through inspections. These are conducted without advance notice, and businesses with higher incident rates or worker complaints are more likely to be inspected. Businesses that have had catastrophes and fatalities are most likely to undergo OSHA inspections.

5. Do Injuries and Illnesses Need to be Reported?

As of January 2017, organizations are required to report injuries and illnesses electronically. Many of these injuries and illnesses are ones that were already required to be recorded on-site.

 

Employee safety is a concern for all businesses, both large and small, including startups. Those who are seeking further clarification can visit the OSHA website, which explains the mission and recent changes more thoroughly.

 

Resources:

About | OSHA.gov

How OSHA Rules Apply to Startups | NBC Chicago

Personal Injury Case Law | Craigswapp.com

Why Is OSHA Important in a Company? | Chron.com

 

5 Game-Changing Business Tips For Entrepreneurial Immigrants | Lum Law Group

 

5 Game-Changing Business Tips for Entrepreneurial Immigrants

By Lisa 0

In the U.S., you have already seen plenty of active businesses everywhere. What you may not notice is that many companies fail and are replaced on a regular basis. Entrepreneurial immigrants frequently do very, very well in business-friendly locations, but they aren’t immune to harsh market forces either. Here are five essential tips for immigrants who want to start a business in a new country.

Learn the Customs

Personal hobbies and interests are different in every country. Some countries promote spending time with family, while others support more self-centered independence. Learn more about Americans to create products and services that they will need and want.

Learn the Laws

American business owners have many rules to follow if they want to remain in business. They need to obtain and renew licenses, follow safety regulations from the OSHA or FDA, and pay their taxes every year. If you’ve worked in another country, you may find hundreds of additional rules to learn and follow.

Other rules pertain to the specific type of industry. Construction workers are required to wear protective clothing, while medical professionals need certain immunizations. For every rule, also learn about the penalties, such as fines or imprisonment, for not complying.

Improve Communications

Communication is the most important field to study in business. You cannot find customers if you cannot communicate with them effectively through advertising. Furthermore, as Franchise Gator advises, you will be unable to understand the important business paperwork that you will need to read and file.The first step is to read, write, and speak better English.

There are classes for people learning English as a second language along with online learning software. Wordcounter.io includes free grammar tools that will help your written communications sound like native English. Correct all spelling and grammar errors before you advertise to customers.

Focus on Marketing

Getting in contact with customers is one of your most important tasks as a business owner. Work with American marketing professionals from the beginning. They already understand the culture, and can offer advice on everything from creating websites to building SEO content.

Get Help

There are several small business loans available specifically for entrepreneurial immigrants through the US Small Business Administration — which might be one of the reasons why 48% of overall growth of US business ownership between 2000 to 2013 was attributed to immigrant business owners, and the number of self-employed immigrants more than doubled between 1994 and 2015.

If you find yourself having difficulty securing a loan due to low collateral or other challenges, signing a “comfort agreement” may be helpful. This is an additional contract between the borrower and the lender that provides the lender with wiggle-room or recourse in the case you default on your loan.

 

You may have the money and resources, but if you don’t have basic knowledge about doing business in America, you won’t succeed. Come up with a plan on how you will gain this knowledge. Then, learn the tips that are proven to help countless entrepreneurial immigrants.

 

Small Business Owners: Trademark Your Brand and Grow Your Business

By Jessica Suotmaa 0

Our intellectual property attorney, A. Justin Lum, was interviewed by Steve Thompson, writer of 245 Days to Go, a blog for small business and startup entrepreneurs and Contented Writing.

One of the biggest issues for a startup business is protecting your ideas. Every startup is built on the solid foundation of an idea and the passion of an individual. We can all see a niche in the market or something that has never been tried before. As an entrepreneur, you look to develop what you offer every day so customers can see your product or service and flock to you. This is how success is made.
But without the proper protections in place, you are vulnerable to other businesses and unscrupulous operators. Something needs to be done. Don’t worry – there is help at hand.
House of Representatives

By Justin Lum 1

Yesterday the Supreme Court made it easier for patent litigation winners to obtain their attorney fees from the losing party in “exceptional” cases.

Although there are standards to be met, the Supreme Court has, in overturning the Federal Circuit, given more power to both plaintiffs and defendants when there is misconduct by either party during the litigation, regardless of whether it is sanctionable.  The Supreme Court has stated that a case with merit-less claims or (rather than “and”) brought in subjective bad faith, may warrant an attorney fees award. Ocean Fitness v. Icon Health.

 

昨天最高法院推进了一项法例，在特殊专利诉讼中，获胜方可以从败诉方获得律师费。尽管条例标准即将出台，最高法院已经赋予原告和被告更多权力，当在诉讼中他们中的一方因另一方的不端行（无论是否该受到制裁）而受损害时。最高法院已经表明在案件中，其中一方无价值的陈述或着带入主观错误观点，可能会奖励另一方律师费。