COSE Mind Your Business January/February 2016 by COSE (Council of Smaller Enterprises)

JANUARY/FEBRUARY 2016

WWW.COSE.ORG

Mind Your Business

CHASING CAPITAL

Educate yourself on what lenders want [10]

EXIT STRATEGIES

How to walk away [12]

TIPS, TRENDS, IDEAS AND INSIGHTS FOR SMALL BUSINESS OWNERS

TEAM BUILDING Energize and motivate your staff to face the year ahead [14]

SETTING EXPECTATIONS

THE OUTLOOK FOR 2016

Get your priorities in order for the new year [19]

THE 3 ITEMS SMALL BUSINESS OWNERS NEED

ON THEIR TO-DO LISTS THIS YEAR JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 1

contents 4 MEMO

THE 5 OUTLOOK FOR 2016

New healthcare offerings. Millennials. Cyber security concerns. Small business owners are going to have a lot on their minds in 2016. Here’s how they should be thinking through these issues.

Every Great Business Starts with Great Employees

10 WHAT LENDERS WANT

Capital is the lifeblood of any business, and that’s especially true for small businesses. Lending experts explain what it takes to get on your capital provider’s radar.

12 EXPERT’S EDIT Even if this isn’t the year you’re going to walk away from your business, you should start thinking about your exit strategy. Three succession planning experts give their thoughts on what that plan should entail.

TEAM BUILDING

If your business is going to get done what it needs to get done in 2016, you’re going to need help from your crew. Learn the best way to get your team as motivated as you are in the new year.

19 VIEW FROM THE TOP

Four Northeast Ohio business leaders discuss the best way to go about setting expectations for the year and how to set priorities.

1-888-OHIOCOMP YOUR WORKERS’ COMP PARTNER!

A competitive benefits package that includes a high-quality health insurance plan can help you find the best employees for your small business team. As the oldest and largest health insurer in Ohio, we partner with COSE to offer benefit plans that work for small businesses. So, whether you’re hiring your first employee or growing your business, we have a solution. To find out more about Medical Mutual plans offered through COSE, please contact your broker or the COSE Benefits Team at Medical Mutual at (440) 878-5930. 1-888-644-6266 | WWW.1-888-OHIOCOMP.COM

2 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

PREFERRED COSE PARTNER SINCE 2006

➤ Aggressive medical-case management

➤ Negotiated medical discounts

➤ Nurse Case Manager dedicated to COSE employers

➤ Personalized, local support

➤ Return to work focus

➤ Services tailored for smaller businesses

➤ Workers’ comp cost-containment strategies

➤ Headquartered in Cleveland

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 3

contents 4 MEMO

THE 5 OUTLOOK FOR 2016

New healthcare offerings. Millennials. Cyber security concerns. Small business owners are going to have a lot on their minds in 2016. Here’s how they should be thinking through these issues.

Every Great Business Starts with Great Employees

10 WHAT LENDERS WANT

Capital is the lifeblood of any business, and that’s especially true for small businesses. Lending experts explain what it takes to get on your capital provider’s radar.

TEAM BUILDING

If your business is going to get done what it needs to get done in 2016, you’re going to need help from your crew. Learn the best way to get your team as motivated as you are in the new year.

19 VIEW FROM THE TOP

Four Northeast Ohio business leaders discuss the best way to go about setting expectations for the year and how to set priorities.

1-888-OHIOCOMP YOUR WORKERS’ COMP PARTNER!

2 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

PREFERRED COSE PARTNER SINCE 2006

➤ Aggressive medical-case management

➤ Negotiated medical discounts

➤ Nurse Case Manager dedicated to COSE employers

➤ Personalized, local support

➤ Return to work focus

➤ Services tailored for smaller businesses

➤ Workers’ comp cost-containment strategies

➤ Headquartered in Cleveland

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 3

MEMO

New Look, New Approach

s the page turns to a fresh new year, I’m sure many of you are taking a step back and reexamining your business. What works? What doesn’t work? What do we need to do to stay on top of our game? Well, we here at COSE are no different. You are holding in your hands the first issue of our relaunched magazine, Mind Your Business. We thought long and hard about what we want to accomplish with this publication and how we can use the magazine to best suit your needs. So, how are we going to do that? Let me explain. First, every Mind Your Business article strives to answer the question: “OK, so what now?” We tackle each story from your perspective as a small business owner and entrepreneur, which means that in every issue, we will be taking a deep dive into the issues that impact you the most and providing you with actionable takeaways to apply to your business. In this issue, we look at the outlook for 2016, including how to handle exit strategies, get your team on board with your vision, secure the capital you need, and more. We’re also striving to make Mind Your Business an even more engaging experience for you, the reader. One of the ways we’re doing this is by making the publication a more

visually appealing read (I, for one, am a big fan of our Expert’s Edit section that offers up actual business plans “copy edited” by a number of experts in a given field). We’re also providing additional resources online to help you explore the topics you read about in Mind Your Business on an even deeper level. Lastly, be on the lookout for a Mind Your Business Resource Guide. As you might be able to guess by the name, these issues are meant to be used as a continuing resource for you as you go throughout the year. To help achieve that goal, each of these issues will contain a directory listing related to the core theme of that issue. While a lot has changed, one thing that remains the same is our commitment to helping small businesses reach their full potential. Our Mind Your Business publications represent that mindset. We hope you enjoy the new look, and I encourage you to reach out and let us know what you think.

Mind Your Business

A PUBLICATION OF THE COUNCIL OF SMALLER ENTERPRISES COUNCIL OF SMALLER ENTERPRISES STEVE MILLARD President and Executive Director smillard@cose.org MEGAN KIM Vice President, Business Operations mkim@cose.org SHAWN A. TURNER Content Director sturner@cose.org DAN ROMAN Director, COSE Corporate and Foundation Relations droman@cose.org COURTNEY WOOFTER Account Executive cwoofter@cose.org CONTRIBUTORS ALICIA HOISINGTON, TERRI KEVANY STACI BUCK Art Director COSE.ORG CRAIN COMMUNICATIONS, INC. Design and Production Services

STEVE MILLARD president and executive director

smillard@cose.org | 216.592.2436

COSE extends a warm welcome to the following new members: AES Enterprise Inc Affiliated Podiatrists, Inc. Antipodes Consulting LLC Argo Tool Corporation Avery Dental Bold Alternatives Bonitas International Burke Rosen & Associate CAM/RB, Inc. Casellas Orthodontics Centric Consulting Chagrin River Marine LLC ClearCreek Financial Group, Inc. Coatings Research Group Inc Cold Springs Milk Cartage, Inc. ConTek Concrete Polishing Inc COSO Media Cuyahoga County Convention Facility Development Corp. David W. Grillo, LLC Dock Dogs

Dr. Harry Persaud Easy2 Technologies Ferencak Communications, Inc. For the Love of Cleveland Freedom Capital LLC Goodrich-Gannett Neighborhood Center Grace Roberts LLC Great Lakes REIA Griesser Sales Co., Inc. H & M Metal Processing, Inc. H2L1-CSC JV HealthSpot, Inc. Home Maintenance Services J & J Door, Inc. Joe’s Deli & Restaurant John Baird Kealy Trucking Co. Kendera Enterprises, Inc. Klopp Investment Management LLC Kocher Micro Inc

4 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

Lewis Wallack And Associates Inc. M Genio Michael J. Linden Co., LPA Mosko Excavating Munson Valley Landscaping Mutual Of Omaha My Pizzetta North Woods Lanes, Inc. Northcoast Dermatology Associates Inc. Oby Kramer Skinner, LLC Ohio Mustang Supply, LLC Orbital Research, Inc. Orthotic Solutions, Inc. Paramount Medical Research and Consulting LLC Precision Gear LLC R W Corwin Ross Brittain & Schonberg Company LPA Sayed M. Yossef, M.D., Inc.

Series, Inc. Shear Talent, Inc. Stephen D. Hobt Taylor Companies of Ohio Inc. Term Machine & Fabricating The Becker Law Firm The Chronister Group LLC The Coffee Club Inc. The Fountain Clinic thinkinc. TRC, Inc. TrustPoint Technologies, Inc. United Testing Systems URG Inc. VIP Restoration, Inc. Virtual DataWorks Vision World Welever Construction LLC Yokohama Industries Americas Ohio Inc Young Sprouts

2016 Outlook:

WHAT TO

WATCH

As small business owners head into 2016, they are faced with a number of important issues. Here are some tips to work through these challenges and ensure smooth sailing in your operations. By ALICIA HOISINGTON JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 5

MEMO

New Look, New Approach

Mind Your Business

STEVE MILLARD president and executive director

smillard@cose.org | 216.592.2436

4 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

2016 Outlook:

WHAT TO

WATCH

s small business owners head into 2016, there are a myriad of top-of-mind issues that could affect operations. Here is a run-down of some of those issues and how to work through them.

MILLENNIALS

FROM MARKETING TO HIRING

“C

onsumer demographics and preferences are in the process of significant change, and that will continue as we head into 2016,” says Greg Dooley, cofounder of Estrela Consulting, a full-service college planning business in Hudson. He points to millennials — people aged 18 to 34 — who are now the largest demographic group in the United States, surpassing baby boomers. This demographic has grown up in a technology-enabled and always-connected environment. As such, their values, needs and expectations are different from prior generations. “As a result, small businesses need to rethink how they market their products and services to millennials and how they attract and retain talent,” Dooley says. From a marketing standpoint, Dooley says it’s important to note the difference in behavior and expectations from prior generations. For instance, millennials communicate differently, mostly via text and social media. They also prefer access over ownership, using services such as Spotify or sharing-economy services such as Uber. They also have less brand loyalty, Dooley says. “Given that millennials now represent the largest demographic group in the U.S., small businesses should make a conscious effort to learn more about their values, behaviors, needs and expectations,” he says. “With this information in hand, businesses are much more equipped to develop marketing plans that will communicate and deliver the value of their products and services for this demographic group.” The millennial group shouldn’t just be top of mind when it comes to marketing, however. More than one in three American workers now are millennials, according to a Pew Research Center analysis of U.S. Census Bureau data. In 2015, millennials surpassed Generation X (those aged 35 to 50) 6 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

to become the largest share of the American workforce, according to the research. And by 2020, millennials will comprise about 50% of the global workforce, according to PricewaterhouseCoopers. According to PwC’s “Millennials at Work: Reshaping the Workplace” report, millennials’ use of technology is what sets them apart, as the group has grown up with broadband, smartphones, laptops and social media as the norm. They expect instant access to information. “This is the first generation to enter the workplace with a better grasp of a key business tool than more senior workers,” the report reads. Some things employers

should keep in mind as they look to hire millennials, according to the report: n The

generation places more emphasis on their personal needs than those of the organization, as their behavior has been colored by the global economic crisis.

Millennials tend to be uncomfortable with rigid corporate structures. n

They expect rapid progression, a varied career and constant feedback. n

They have ambition and desire to move quickly upward in an organization. n

They want a flexible approach to work as well as regular feedback and encouragement. n

While it seems clear the demographic of the workforce is changing, are the requirements for hiring changing? That is, do college degrees still matter today? “For our business, we do require a bachelor’s degree for new hires,” Dooley says. “That being said, we’re not necessarily looking for a specific degree.” Dooley says it’s important for small businesses to stay flexible when it comes to evaluating talent. “I’m interested in learning about what they’ve done with their degree as well as the skills they’ve developed, the experiences they’ve had, how they solve problems, and how they communicate and interact with others,” he says.

CYBERSECURITY

KEEP YOUR BUSINESS SECURE

onsumer headlines last year were filled with reports of data breaches happening at large retailer stores or

CONVENIENT CLASSES. ACCESS TO CAPITAL. POWERFUL NETWORKING. REMARKABLE RESULTS.

David Hegenbarth 10,000 Small Businesses Graduate

APPLY TODAY – Applications Due February 19, 2016 INFORMATION: 216-987-3220 | www.tri-c.edu/10ksb | 10ksb@tri-c.edu 16-0028 10KSB 7x4.75 Ad.indd 1

16-0028

Millennials want to feel as if their work is worthwhile and their efforts are recognized. n

1/14/16 2:51 PM JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 7

s small business owners head into 2016, there are a myriad of top-of-mind issues that could affect operations. Here is a run-down of some of those issues and how to work through them.

MILLENNIALS

FROM MARKETING TO HIRING

“C

should keep in mind as they look to hire millennials, according to the report: n The

generation places more emphasis on their personal needs than those of the organization, as their behavior has been colored by the global economic crisis.

Millennials tend to be uncomfortable with rigid corporate structures. n

They expect rapid progression, a varied career and constant feedback. n

They have ambition and desire to move quickly upward in an organization. n

They want a flexible approach to work as well as regular feedback and encouragement. n

CYBERSECURITY

KEEP YOUR BUSINESS SECURE

onsumer headlines last year were filled with reports of data breaches happening at large retailer stores or

CONVENIENT CLASSES. ACCESS TO CAPITAL. POWERFUL NETWORKING. REMARKABLE RESULTS.

David Hegenbarth 10,000 Small Businesses Graduate

APPLY TODAY – Applications Due February 19, 2016 INFORMATION: 216-987-3220 | www.tri-c.edu/10ksb | 10ksb@tri-c.edu 16-0028 10KSB 7x4.75 Ad.indd 1

16-0028

Millennials want to feel as if their work is worthwhile and their efforts are recognized. n

1/14/16 2:51 PM JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 7

corporations and as such small business owners might not think they are prone to these types of attacks. That’s not the case, sources say. “They do have to worry,” says Steve Giordano, president of TeamLogic IT. “Small business owners might not be the focus of a targeted attack, but there are other things out there, like viruses. Hackers can also throw it out into the wild and see what kind of game they will catch.” According to Kaspersky Lab’s “Damage Control: The Cost of Security Breaches” report, 90% of businesses admitted to experiencing a security incident, and 46% of businesses lost sensitive data because of an internal or external security threat. These data breaches can be costly for small businesses. According to the report, small businesses spend an average of $38,000 in direct spend required to recover from the attack. Indirect costs from a breach on a small business can cost an additional $8,000. Giordano says it can be difficult to pin down a general cost on a data breach at a small business — but there is a cost nonetheless. That cost depends on how the company operates its network. For instance, if the business has an e-commerce platform, the cost could be thousands of dollars per hour. Cost isn’t just about money, either, Giordano stresses. If the business needs to be HIPAA- or PCI-compliant and a breach jeopardizes that, the business owner could face regulatory costs, especially if customer data, such as social security or credit card numbers, is compromised. Giordano says most threats to small business owners come via Web-based email spam. Once an incident happens, business owners often find themselves getting data back only because they have backed it up — or they have to pay ransom to the “bad guys,” he says. Additionally, he says a security incident can happen due to employees’ use of company computers —for instance, if they are searching on social media and unknowingly pick up malware. When it comes to owners protecting themselves and their businesses, Giordano says there’s no silver bullet. “You have to put in multiple layers of defense,” he says. Those layers can include: n

Use antivirus software. However, Giordano stresses the free suites won’t cut it. Small business owners need to invest in the business-class software.

8 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

Create a firewall.

Ensure your network has anti-malware.

Use spam filtering in email.

Implement use policies for employees using company computers. Giordano encourages owners to make their employees aware of the threats out there and also inform them on how to handle emails that looks suspicious.

HEALTHCARE

HOW IS IT EVOLVING?

“O

ver the last year, the number of changes to the rules and regulations around small group health insurance has stabilized and the impact ACA has had on small groups is just now becoming clear,” says Steve Millard, president and executive director of COSE. In the under-50 employee market, there are three major types of plans: grandfathered plans, grandmothered (or transitional) plans and ACA plans. In general, most small business owners with 2 to 100 employees have been able to “stay put” in grandfathered or grandmothered plans, Millard says. Vice President of Small Group Sales for Medical Mutual, Dan Polk, says, “Our advice to small groups is to be careful not to leave the protection of grandfathered or grandmothered status too soon, because once status is lost you cannot go back,” Polk says. “ACA continues to evolve, and there will be a right time to consider something different.” “As of now, groups with a renewal of November 1, 2016, or later who are enrolled in a grandmothered (or transitional) plan may be required to move to ACA benefit designs. However, there is a strong

possibility that requirement could be postponed by the president again,” Polk adds. “There are a number of small groups that are classified as grandfathered or grandmothered, and most of those groups will do well to maintain that status. “For grandfathered plans, that means very little change is allowed to their benefit structure, but as a result they are not paying for some of the higher cost ACA-coverage requirements. For the grandmothered groups there are a few more choices, but there are still some limitations in order to maintain their status,” he said. New employers since January 1, 2014, and small business owners without employees have been most affected by the new rules so far, Millard says. New employers after January 1, 2014, had little choice but to buy an ACA plan. Small business owners without employees that had a group coverage plan – so-called “group of one” coverage — lost that coverage due to ACA and had to transition to the individual insurance market. “Making that transition has been the most significant disruption for small business owners,” he says.

the experience rating that exists in their plans that ties their rate to the preferred health risk those that have continued in these transitional plans tend to have. “We see the marketplace beginning to create some new self-insured hybrids and other creative plan approaches to address opportunities to help these companies avoid the additional cost of moving to an ACA compliant plan,” he says. For most companies with grandfathered plans, they will continue to have the option to renew their current plan. “The ACA market is not yet stable and we could still see some big increases to those base rates as the pool is disrupted with new entrants from transitional plans and if healthy individuals continue to stay on the sidelines,” according to Millard. “We expect insurance carriers to continue to work hard to keep these groups which tend to be healthier, long term customers. We also expect a number of new products to emerge that will provide protection from ACA market rules with rates comparable to today’s grandfathered plans. Those will be worth a look by small business owners.” MYB

NEXT STEPS HEALTH CARE IN 2016: 4 THINGS TO KNOW

Millard has four tips for small business owners to navigate the healthcare waters:

1 2

Ask a lot of questions: A lot is changing. Make sure you ask plenty of questions of your broker or insurance provider.

Think about Medicare: Are some of your employees who make lower-than-average wages eligible for Medicare? They might be eligible for programs that can reduce both their costs and your costs to cover them.

Encourage healthy behaviors of employees: While these won’t reduce your insurance rates if you’re a small employer, they could have impacts of productivity in the short term, morale and overall well-being.

Talk with your accountants and legal advisors: Make sure that you’re taking all the steps necessary to be compliant with new rules, such as filing the right forms, providing the right notifications to employees of their options and completing the required reporting to the IRS.

Want more? Additional resources for this story can be found online at www.cose.org/myb

EMPLOYER IMPACT

hile one of the biggest changes for 2016 was expected to be the requirement for employers of 51 to 100 employees to have to comply to the small group employer rules imposed by the ACA, a new piece of legislation passed in October 2015 called the PACE Act, permanently exempts these employers from small group rules. For employers of more than 50 employees, that’s good news because it allows them to avoid the disruption of moving to ACA. For the rest of the small employer pool, the impact is less certain. One of the benefits of adding these employers to the small group market would have been the generally positive risk experience they would bring and some significant increase in the pool of insured lives that could further stabilize rates. For employers of 2 to 50 employees, the big event in 2016 will be dealing with the requirement for grandmothered or transitional plans to begin to make the move to become ACA compliant plans, Millard says. This will start with November 2016 renewals and continue with each renewal month through October 2017. Unless something happens to change those rules, as these programs move to ACA they will lose the benefit of JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 9

Use antivirus software. However, Giordano stresses the free suites won’t cut it. Small business owners need to invest in the business-class software.

8 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

Create a firewall.

Ensure your network has anti-malware.

Use spam filtering in email.

HEALTHCARE

HOW IS IT EVOLVING?

“O

NEXT STEPS HEALTH CARE IN 2016: 4 THINGS TO KNOW

Millard has four tips for small business owners to navigate the healthcare waters:

1 2

Ask a lot of questions: A lot is changing. Make sure you ask plenty of questions of your broker or insurance provider.

EMPLOYER IMPACT

WHAT

LENDERS Capital — and access to it — is a lifeline for small business and goes a long way toward determining the ultimate success or failure of the firm. Lenders and lending experts discuss what it is that capital providers want to hear when an entrepreneur approaches them for a loan. By SHAWN A. TURNER

WANT

estiny Burns thought the business plan she had drawn up for her upstart CLE Urban Winery in Cleveland’s Cedar Lee neighborhood was a shoo-in for a loan. But after the underwriter at the first bank she approached swatted away her loan application, she was left scrambling to regroup. “I had a solid business plan,” Burns remembers. “My banker thought it was a slam dunk. The underwriters didn’t agree. I didn’t explain the plan well enough to the banker for the banker to translate it effectively to the underwriter.” Burns’ experience is not uncommon, according to a group of lending experts contacted by Mind Your Business. All too often, entrepreneurs focus on the wrong things when they go loan hunting and the owners end up not getting approval, they said. The experts laid out three things small business owners need to be cognizant of to avoid having their loan application land in the “DENIED” pile.

Jim Bonvissuto, president of BIG Financial & Advisory Services in North Royalton, says story business CASH the owners need to tell FLOW is largely dependent on whether they are seeking a loan for an established small business or a start-up. “For an existing business,” he says, “the bank or funding institution is going to focus on the cash flow of the business and whether it’s positive and whether the business is able to sustain itself and pay down debt over time.” Raymond Graves, who works in lender relations at the Cleveland District Office of the Small Business Administration, agrees cash flow is important. He says the benchmark ratio of historical cash flow to projected debt service is 1.2. This means cash flow from the prior year should be 120% of the projected debt service the business will have the next year, including the new debt the firm is applying for. “Treat your personal cash flow like a division of your business,” he says. One common mistake borrowers make is they try to argue that the loan will increase sales, Bonvissuto says. But banks aren’t necessarily concerned with sales — it’s earnings they’re after. “You have to be able to show support that those sales will translate into positive profits or cash flow,” he says.

where they’re going,” he says. He The process of applying for a loan adds that when the business owner if you’re a start-up can be trickier, as shows a high degree of comfort and Burns discovered. Start-ups must be familiarity with their business, that much more focused on telling their gives the bank an extra degree of story because they don’t have an comfort in making the loan. operating history on which to rely, TELL In many ways, Burns’ first lender according to the lending experts. YOUR visit was like a dress rehearsal. Bonvissuto suggests start ups present a clear vision of what makes STORY When she visited her second lender in search of a loan, she had a better their product or service unique, idea of what the institution wanted. where their competitive advantage “I was more diligent in my explanation,” she lies and how they plan to gain market share. recalls. “I explained what I needed, what my “They have to have a business plan that plan said, and why they should fund me.” is like a forecast,” he says. “How does all Burns submitted a cover letter to her second this translate to the financials on the income lender that explained the start-up costs her statement and with the cash flow?” business would incur as well as what kind of Richard Kretschman, business manager terms and interest rates she was looking for. “I and team leader for Akron and Cleveland at Fifth Third Bank, says the business plan gets think that really helped a lot,” she says. a lot of attention at his bank. “The business She got the loan from Key and is moving plan helps tell us where they’ve been and forward with construction.

Graves says many small easy the collateral would be for the business owners approach a bank to sell if the need arises. lender expecting the bank to fully At the end of the day, small fund 100% of their costs. While business owners also shouldn’t that does happen sometimes, it’s come into the meeting with better to plan on injecting at least lender with the thought SHOW their between 10% to 20% of the costs that all of their problems will YOU in cash yourself. be solved by borrowing money, “What it really demonstrates is Bonvissuto says. HAVE you’ve been able to generate excess “Put together a plan first that SKIN cash historically and you’ve saved shows how you will make the IN THE business profitable by cutting it to invest in the business,” he says. GAME expenses and dumping unprofitable Collateral also plays an important role during the funding products and redeploying assets to process, Fifth Third’s Kretschman explains. areas in the business that will get a bigger He says the bank takes a close look at how return,” he says. MYB

NEXT STEPS UNDERSTAND 3 METRICS LENDERS WILL SPEND A LOT OF TIME ON:

Which metrics do lenders focus most on? Ravmond Graves, who works in lender relations at the Cleveland District Office of the Small Business Administration, points to the following:

680+ 35% 10%

The generally agreed upon landmark credit score lenders will look at when making a lending decision, though some underwriting requirements might call for a score lower than 680.

Personal debt payments should be less than 35% of your personal income

Plan on covering at least 10% (possibly up to 20% or more) of your project in cash

Want more? Additional resources for this story can be found online at www.cose.org/myb 10 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 11

WHAT

10 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

WANT

easy the collateral would be for the Graves says many small bank to sell if the need arises. business owners approach a At the end of the day, small lender expecting the bank to fully business owners also shouldn’t fund 100% of their costs. While come into the meeting with that does happen sometimes, it’s lender with the thought better to plan on injecting at least SHOW their that all of their problems will between 10% to 20% of the costs YOU be solved by borrowing money, in cash yourself. Bonvissuto says. “What it really demonstrates is HAVE “Put together a plan first that you’ve been able to generate excess SKIN shows how you will make the cash historically and you’ve saved IN THE business profitable by cutting it to invest in the business,” he says. GAME expenses and dumping unprofitable Collateral also plays an products and redeploying assets to important role during the funding areas in the business that will get a bigger process, Fifth Third’s Kretschman explains. return,” he says. MYB He says the bank takes a close look at how

NEXT STEPS UNDERSTAND 3 METRICS LENDERS WILL SPEND A LOT OF TIME ON:

Which metrics do lenders focus most on? Ravmond Graves, who works in lender relations at the Cleveland District Office of the Small Business Administration, points to the following:

680+ 35% 10%

The generally agreed upon landmark credit score lenders will look at when making a lending decision, though some underwriting requirements might call for a score lower than 680.

Personal debt payments should be less than 35% of your personal income

Plan on covering at least 10% (possibly up to 20% or more) of your project in cash

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 11

EXPERT’S EDIT

Planning Your Exit

Aussem: If you’re doing everything Aussem:

By SHAWN A. TURNER

It’s been a good run, but it’s time to move on to the next phase of your life and sell the small business you’ve worked so hard to build from the ground up. Transitioning to the next phase of your life can’t be that hard, right? Mind Your Business reached out to business transition experts to pick their brains on what is the best way to walk away. The business plan you see below is based on actual exit strategies they have seen (names have been redacted to protect the innocent — and the guilty.)

You need to have a clear vision of what you want for your company. There are different strategies involved with selling and transferring.

for your business, you’re doing too much. Try to narrow down your primary responsibilities to three key things and delegate the rest to staff/family. If something happens to you before you’re ready to sell, there will be someone there to pick up for you. And for the buyer, there is nothing to acquire if you haven’t properly trained your staff on how to run the business in your absence.

MEET THE EXPERTS: Pokopac: It’s important

Exit strategy for the owner of the Good Buy Company

Jim Aussem ATTORNEY

Cavitch, Familo & Durkin

Margo Pokopac

CERTIFIED QUICKBOOKS PRO ADVISOR

ential Pokopac: Pot

see at buyers need to s of cl ea n least three year d tax fina ncial data an no w returns. Start getting your fina ncial house in order.

Van Duyn:

Don’t rush. You e need to maximiz this th e returns on tirement sale beca use re e. ca n be expensiv u want yo Th e la st thing tirement to be doing in re ons. is clip ping coup

Neal van Duyn FORMER OWNER AND PRESIDENT

Cleveland Bottle & Supply Co. and recent successful seller of his business

Van Duyn: Strike

this sentence. Insert: “I want this process to take as long as it needs to take so that I get a fair value for my small business.”

12 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

I haven’t yet decided whether I want to sell my business or pass it on to my kids. I know I have a little bit of time before I need to commit to making a decision. Besides, I have too many responsibilities with everything I am doing for the Good Buy Company that I just don’t have time to talk to them about it right now. I’ll wait until it gets closer to the time when I absolutely HAVE to make a decision. The kids? I mean, the kids kind of seem interested and it would be great to keep it in the family. They’ve seen me operate it for forever it seems like. I’m sure they’d have no trouble picking up where I leave off. Besides, it would be great to provide this valuable asset to my kids to help them build wealth and opportunity for their own family. Someone else? On the other hand, maybe it makes sense to sell? The company’s been doing OK during the past year. I bet I could put it on the market today and get solid offers right away. The offer? Now that I’m thinking about it, selling definitely makes the most sense. I’ll just put it on the market right away. I don’t think there’s anything else I really need to do other than wait for the buyers to come to me.

Van Duyn:

If th e kids aren’t commit te d to th e business , th en you need to co nsid er selling to an un af filiated third part y or th ink of anot her exit st rategy. Make sure you get th e right value from th e right future ow ner.

Pokopac:

The exit process needs to start three to five years before you actually exit. Use that time to strengthen your company’s financials so you can tell a great story to your buyer.

I don’t want this to drag on for too long, either. Those golf courses down in the Sun Belt are calling my name! The sooner I can get this wrapped up, the more my short game will thank me! Wow, this really wasn’t as complicated as I thought it was going to be. Regardless of whether I decide to sell or transfer to my family, I’m sure the process will be smooth! Now, where did I put my clubs?

that your children have business experience before they take over for you. Preferably, they have five to seven years’ experience at another company so they can learn best business practices and bring fresh ideas back to the table.!

Pokopac: “The biggest mistake I see

people making when they want to sell their business is that they didn’t start thinking about the process soon enough.”

Van Duyn: “There are a lot of strategies and Van Duyn: You should

start looking at your expenses. Where is there leakage? Plug those leaks to help boost your earnings. After all, people buy earnings, not sales.

tactics available to help aid you in a successful exit of your business. Seek out that help. This is your life’s work and you want to maximize the value it can create for you.” For a sampling of resources related to selling your business, visit www.cose.org/myb JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 13

EXPERT’S EDIT

Planning Your Exit

Aussem: If you’re doing everything Aussem:

By SHAWN A. TURNER

You need to have a clear vision of what you want for your company. There are different strategies involved with selling and transferring.

MEET THE EXPERTS:

Exit strategy for the owner of the Good Buy Company

Jim Aussem ATTORNEY

Cavitch, Familo & Durkin

Margo Pokopac

CERTIFIED QUICKBOOKS PRO ADVISOR

ential Pokopac: Pot

see at buyers need to s of cl ea n least three year d tax fina ncial data an no w returns. Start getting your fina ncial house in order.

Van Duyn:

Don’t rush. You e need to maximiz this th e returns on tirement sale beca use re e. ca n be expensiv u want yo Th e la st thing tirement to be doing in re ons. is clip ping coup

Neal van Duyn FORMER OWNER AND PRESIDENT

Cleveland Bottle & Supply Co. and recent successful seller of his business

Van Duyn: Strike

this sentence. Insert: “I want this process to take as long as it needs to take so that I get a fair value for my small business.”

12 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

Van Duyn:

Pokopac:

The exit process needs to start three to five years before you actually exit. Use that time to strengthen your company’s financials so you can tell a great story to your buyer.

Van Duyn: You should start looking at your expenses. Where is there leakage? Plug those leaks to help boost your earnings. After all, people buy earnings, not sales.

Pokopac: It’s important that your children have business experience before they take over for you. Preferably, they have five to seven years’ experience at another company so they can learn best business practices and bring fresh ideas back to the table.!

FINAL EXPERT TAKEAWAYS Aussem: “If you want to pass the business on to your children, involve them in the process so they can take ownership of the plan. If you’re selling, hire an investment banker who can help you put together a normalized business.” Pokopac: “The biggest mistake I see people making when they want to sell their business is that they didn’t start thinking about the process soon enough.” Van Duyn: “There are a lot of strategies and tactics available to help aid you in a successful exit of your business. Seek out that help. This is your life’s work and you want to maximize the value it can create for you.” For a sampling of resources related to selling your business, visit www.cose.org/myb JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 13

ulture plays a huge role in the success or failure of a business. As we ring in the New Year, now is the perfect time to take a good look at your business and make changes to ensure you are cultivating a culture that engages employees and ensures they are committed to the goals and growth of the business in 2016. No matter the size, businesses develop cultures over time and those beliefs and behaviors become ingrained in the workplace. A company’s culture is influenced by many factors, including the style of leadership, employee mindset, motivational factors, and opportunities for advancement, recognition, and interaction. With all these dynamics at work, it is vital to make certain your employees are engaged and committed to the mission of the organization. Mind Your Business reached out to small business owners who have gone to great lengths to create and foster an employee culture of teamwork and accountability and found that they are reaping the rewards for their efforts. Following are just a few steps you can take to cultivate a winning culture in your business.

Build Your Team

[

GETTING EVERYONE ON YOUR STAFF PULLING IN THE SAME DIRECTION CAN BE EASIER SAID THAN DONE. BUT THERE ARE WAYS TO MAKE THE PROCESS GO A LITTLE EASIER, AS OUR CADRE OF SMALL BUSINESS OWNERS REPORT.

By TERRI KEVANY

14 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

ASSEMBLE THE RIGHT TEAM

[

James Wearley, general manager of FEMC in Bedford Heights, knows firsthand what a difference the right team can make. When Wearley left the banking industry to step in to run his fatherin-law’s custom packaging equipment manufacturing business five years ago, he was shocked to find the culture of the once thriving business in need of serious attention. “There was a culture of entitlement,” says Wearley. “No one wanted to share information or follow processes or procedures.” Wearley knew he either had to successfully change the mindset of the employees or build a better team. In the end, he had to do a lot of both. As Wearley started making changes, he noticed a handful of employees jumped on board and thrived in the new team-oriented environment. “But a lot of employees had a shot and didn’t step up to the challenge,” Wearley says. So he turned his focus to hiring the right people who would fit into the new framework. “I didn’t have the money to go out and hire the starting quarterback,” he says. “I had to find people that had a little less experience, but that had the right mindset: the mindset of, ‘I will do what it takes for this team to be successful.’” Once he had his team in place, the goals started to align. “We now have a culture based firmly on accountability,” says Wearley. “That is not only good for our company but ultimately adds value to our customers.” And the hard work has paid off. “I knew it was going to be a tough road to get here — like a rung on a ladder that seems too high up — but now that we’re here I feel that anything is possible. We are half the size as we were five years ago, and we have double the sales,” he says. Hiring the right team is especially

important for smaller businesses. Chelly Bevel, CEO of Chelly’s Nursing Review & Tutoring in Highland Heights, grew her company guided by a belief in the slow growth/no debt principle of business. But last year, she added classes and her classes grew, which led to her outgrowing her third building. Finding the right fit for her business was paramount. “It’s almost like being parents,” Bevel says. “When there are just two of you, you have to be of one

mind on everything. Ours is a huge team, even though it’s only two people,” she says, in reference to the part-time tutors her business uses. The key to her first hiring success? “Employees have to believe in your mission,” says Bevel. “And I don’t think it works well to have someone on your team exactly like you. I believe in hiring someone who can fill in your weaknesses with their strengths.”

Small Business Insurance Solutions Employee Benefits » Business & Personal Insurance Retirement Plan Services » HR Consulting Services

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Build Your Team

[

GETTING EVERYONE ON YOUR STAFF PULLING IN THE SAME DIRECTION CAN BE EASIER SAID THAN DONE. BUT THERE ARE WAYS TO MAKE THE PROCESS GO A LITTLE EASIER, AS OUR CADRE OF SMALL BUSINESS OWNERS REPORT.

By TERRI KEVANY

14 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

ASSEMBLE THE RIGHT TEAM

[

Small Business Insurance Solutions Employee Benefits » Business & Personal Insurance Retirement Plan Services » HR Consulting Services

216-520-3300 » TheAlphaGA.com JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 15

So, you have your team in place. Now it’s time to chart the course. What is the mission of the organization and what are the strategies for accomplishing set goals? In any busy business, it’s crucial everyone knows what is expected and how their individual contributions and efforts as a team drive the business forward. Wearley and his team are in the process of creating a vision statement and core values for FEMC. They are also creating project management dashboards that include precise

timelines so everyone is on the same page. Bevel sets the same standard for her one employee as she does for her students: no excuses. “We are training professionals,” says Bevel. “There are no excuses for not being your best at all times.” Lisa Oswald, owner of National Commercial Warehouse and Kay Chemical in Cleveland, says that the culture at their business is very much family-driven. That culture was built over the last 50 years by her uncle, the business’s original owner, who

often jokes that everyone in their large family has worked in the business at one time or another. Oswald and her husband, Bob, try to carry on that sense of family with their three full-time and seasonal employees. “My uncle set a precedence of honesty, fairness and reliability,” says Oswald. “And he never refused an opportunity. His mantra was ‘There is always a way.’ That is truly how we work, and that mentality continues to motivate all of us every day. That attitude is how we serve and retain our customers.”

EMPLOYEE MOTIVATION: 5 Things to Know It goes without saying a motivated workforce is a more creative and productive one, and that can go a long way to setting the tone for your company’s culture and engagement efforts. Sources contacted by Mind Your Business relayed the following five tips as ways to energize your workforce.

CULTIVATE THE CULTURE

‘‘

Tax, Audit/Assurance and CFO Services

I think the more people feel valued in their role, the harder they want to work for you.

‘‘

CHART THE COURSE

LISA OSWALD, owner of National Commercial Warehouse and Kay Chemical in Cleveland

It falls to the business owner and an organization’s leadership to make certain that the culture of the business is one that promotes the concept of teamwork. “We make sure that everyone knows that their attitude, performance and their contribution is important,” says Oswald. “I think the more people feel valued in their role, the harder they want to work for you.” Chet Green, owner and president of Northcoast Inc. Recycling Specialists, a premier industrial and commercial recycling

CHOOSE PEASE & ASSOCIATES Call today for a free consultation with one of our specialty advisors. 216.348.9600 | peasecpa.com

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[1[ [2[ [3[ [4[ [5[ WALK THE WALK Genuine leadership is key to creating a productive work environment. If you demonstrate the same drive, passion, and commitment to the goals and vision of the company that you expect from your employees on a daily basis, you will inspire the same from your team.

ENCOURAGE DIALOGUE Make yourself available to your staff and keep lines of communication open. Employees want to be able to speak their minds. By presenting opportunities to share ideas and voice concerns, you help establish trust and respect. On the flip side, be sure to communicate with your team as openly and honestly as possible.

16 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

RECOGNIZE ACHIEVEMENTS Consistent recognition of a job well done, whether as a casual mention or as part of a formal employee recognition program, is a great no-cost way to acknowledge an employee’s efforts. According to the 2015 Employee Recognition Report by the Society for Human Resource Management, valuesbased employee recognition programs are helping employers create a stronger culture and more human workplace.

OFFER SELFIMPROVEMENT OPPORTUNITIES Expanding and improving an employee’s skills and knowledge through professional development can benefit your company greatly while enhancing job satisfaction. Professional development can encompass various learning opportunities, including formal training, certifications and topical seminars and conferences.

INCENTIVIZE YOUR TEAM Whether through cash or non-cash rewards, incentivizing your team can boost employee morale and the overall corporate culture. If pay increases or bonuses aren’t in the budget, consider offering paid time off, flexible work hours, remote work opportunities, employee celebrations, and goal-oriented contests with fun prizes.

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 17

CULTIVATE THE CULTURE

‘‘

Tax, Audit/Assurance and CFO Services

I think the more people feel valued in their role, the harder they want to work for you.

‘‘

CHART THE COURSE

LISA OSWALD, owner of National Commercial Warehouse and Kay Chemical in Cleveland

CHOOSE PEASE & ASSOCIATES Call today for a free consultation with one of our specialty advisors. 216.348.9600 | peasecpa.com

Pease & Associates, cpas

16 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 17

business located in Solon, believes he has figured out what motivates his 18 full-time employees. Besides offering an attractive benefits package that includes health, dental and retirement benefits, Green offers opportunities for education and training. “We encourage our employees and we want them to push themselves,” says Green. “If you want to take a class, and it benefits our company, we will pay as long as you pass the class.” To Green, he just can’t see doing it any other way. “Why would you want someone working for you who doesn’t want to better themselves?” he asks. “To me what defines success is when the people who work for you are successful. It’s not only about the money.” Green also ensures that his workplace is a safe one, which his employees appreciate. As one of the founding members of the Western Reserve Safety Council, Green understands the need to work hard to protect his employees and is proud of the fact that Northcoast Recycling has never had a losstime accident in their 28 years in business — quite a remarkable accomplishment. “We work hard at doing everything we can do to motivate and protect our employees.” MYB

NEXT STEPS According to the Globoforce 2015 Employee Recognition Report, employee engagement is one of the top problems faced by employers today. The report found that values-based recognition programs, in which employees are formally recognized for their achievements, can help create that engagement and a “more human workplace.” Two in three employers (66%) report that their recognition program is helping the company build a stronger brand, too.

RESOURCES

The resources listed below can be accessed by visiting www.cose.org/myb Get the Facts – The 2015 Employee Recognition Report: Culture as a Competitive Differentiator by the Society of Human Resource Management and GloboForce Take the Quiz – What is Your Corporate Culture? by Inc.com Learn More – SBA Online Learning Center Course: Small Business Employee Recruitment and Retention

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For help growing your business, contact: Paul Carlin SVP, Commercial Banking, Beachwood Paul.Carlin@pebo.com | 216.910.0555 Brad Jeffries SVP, Commercial Banking, Akron Brad.Jeffries@pebo.com | 330.252.4517

Investment products: Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, an independent broker/dealer, and are Not Deposits, Not FDIC Insured or insured by any other government agency, Not Guaranteed by Peoples Bank, and are Subject to risk and may lose value. 1.877.376.7576. Peoples Bank, Trust & Investment Services and Peoples Insurance Agency, LLC are independent of RJFS. Insurance products are: NOT FDIC Insured • NOT GUARANTEED by Peoples Bank • NOT a deposit • NOT insured by a federal government agency • Subject to risk and may lose value. Peoples Bank (w/logo)® and Working Together, Building Success.®, individually, are federally registered service marks of Peoples Bank, National Association.

18 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

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VIEW FROM THE

TOP

How 4 Area Leaders Set Expectations With a new year comes a fresh start — and a fresh set of expectations. But what’s the best way to accomplish what needs to get done? Four Northeast Ohio small business leaders explain.

By SHAWN A. TURNER

an I grow another 10% or 20%? That’s the question Steve Petti, president of New Image Media in Warrensville Heights, asks himself at the outset of every year. It’s likely also a similar question other small business owners are asking themselves around this time of year, too. But to achieve that growth, business owners first will need to get their priorities in order and what better time to do that than at the beginning of the year? Mind Your Business reached out to a selection of top small business owners and entrepreneurs to collect their thoughts on how to prioritize goals for the year so that ultimate goal — growth — is attainable. Here’s what they had to say.

Kimberly L. Jacobs CEO, KMG

t the beginning of each year, Jacobs asks each of her team members to jot down the ideas they have for the next 12 months for their specific areas. Then, the team comes together to discuss everyone’s ideas. “We rate them on how much will it cost? How much will it generate? Is it achievable in 12 months? Will it require additional resources? Does it align with our company culture?” she says. Ideas that don’t meet those guidelines fall to the bottom of the list, meaning team members need to sell their ideas to the group if they want to see them implemented. “The vetted list, then, becomes our strategic vision for the next 12 months,” she adds. Jacobs is a big believer in transparency and that applies to setting goals. After the meeting, each of the goals set for the year is given a due date and the team keeps track of how far along they are to reaching the goal. Each of the ideas are revisited every quarter and can be adjusted if the organization’s thinking has changed. “A lot can change in 12 months and you don’t want someone working on a goal for the sake of working on a goal,” Jacobs says.

Steve Petti President, New Image Media

imilar to Jacobs, Petti’s thinking around setting annual expectations for his business involve the process of actually writing them down. Seeing the goal in writing makes it more tangible and gives it more weight. Also similar to Kings Medical, New Image’s goals and expectations center around Petti’s efforts to build his business. “We made an aggressive commitment to grow,” he says. “We revised our vision statement and prominently posted it on our wall” he added. “Our vision is to be NEO’s most recognized name in video for business. We need to remind ourselves daily.” But saying he wants to grow is one thing. Actually achieving that growth is another. So, what is one action Petti intends to take during 2016 to help him achieve the growth goal he has set for himself? “Grow our audience,” Petti says. He has faith in his business model and wants to spread the word. A priority for him in 2016 is to get out and attend events — and build as many relationships as he can. JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 19

RESOURCES

18 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

VIEW FROM THE

TOP

By SHAWN A. TURNER

Kimberly L. Jacobs CEO, KMG

Steve Petti President, New Image Media

Raquel Eatmon

Lisa Stouffer

CEO, Rising Media

President and chief human resource consultant, Cephala Recruiting and Consulting LLC

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fter Raquel Eatmon, CEO of Rising Media in Beachwood, has spent time reflecting on her goals for the upcoming year, she then starts the process of thinking about the best way to take action on the expectations she has set for herself. One important question that runs through her head is: “Do I need to ask for help?” In her former life as a TV news journalist, she became used to being able to wrap up a story at the end of the day into a tidy report. Such is not the case when it comes to business, as she has discovered. “I have to go easy on myself,” she says. Eatmon has found it best to pace herself and not get caught up in measuring herself against other CEOs. If she has to, she rolls items over if they need another day to complete.

Questions about your business? Get answers from the COSE Expert Network. The COSE Expert Network features experts who: • are available to answer questions • provide 60-minute, in-person consultations • connect via email or phone to provide feedback or information • are vetted and reviewed by COSE

To get answers to your business questions or to set up a consultation with an expert, visit www.COSEexpertnetwork.org today!

20 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

f revenue growth is a goal for your company in 2016, then there is a good chance that staff growth is going to come into play, too. During a recent COSE webinar, Stouffer pointed to the growing millennial generation as a potential source of that staff growth. Companies with growth in their sights should prioritize the hiring of this upcoming generation. And what’s the best way to attract these millennials? Millennials want to be treated as individuals, so that is a good place to start, she says. “Do you send out cold, auto-generated emails to applicants?” she asks. “Can candidates apply and check their status on a mobile app?”

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www.cose.org/workerscomp JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 21

Raquel Eatmon

Lisa Stouffer

CEO, Rising Media

President and chief human resource consultant, Cephala Recruiting and Consulting LLC

To get answers to your business questions or to set up a consultation with an expert, visit www.COSEexpertnetwork.org today!

20 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

WORKERS’ COMPENSATION SERVICES COSE Compensation Services offers the most comprehensive program in Ohio, including: • Claims management • Legal defense

• Safety consultation • Unemployment consultation

It’s not too early to start planning for 2017 premium savings.

Request a free quote today!

www.cose.org/workerscomp JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 21

Further, companies should begin drafting other changes to their hiring process. Three things small business owners can be doing right now to appeal to millennials include: n Communicate your purpose: Millennials want your company’s message to them to be genuine. Explain how prospective employees fit into your business’s architecture. n Put your culture out front: Show off your workplace on your company’s website. Think about including video testimonials from current employees. You want job applicants to be able to picture themselves working at your business. n Be proactive: Don’t wait weeks or months to get back in touch with applicants. Reach out as soon as possible. And once the candidate is onboard, consider instituting “stay interviews” to help identify what drives your employees. What’s their passion? What keeps them coming in everyday? “Use this feedback to enhance your company’s benefits and culture,” Stouffer says. MYB

NEXT STEPS

MARK YOUR CALENDAR FOR COSE’S 2016 EVENTS

HIRING MILLENNIALS

In a recent human resources report, PricewaterhouseCoopers identified several additional tactics employers should use if “hire millennials” is one of the expectations they have set. Provide flexibility Give them the freedom to work in the environment that suits them best, even if it means that environment is the local coffee shop. Enable growth Put millennials on rotational assignments to give them a taste of many different parts of your business. Challenge them to come up with new ways to streamline processes. Give feedback Give honest feedback in real time. Don’t wait for the annual review.

FEB

APRIL

Want more? Additional resources for this story can be found online at www.cose.org/myb

JUNE

SEPT

OCT

13-14

22 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

COSE Annual Meeting The COSE Annual Meeting honors small business success and reviews the many ways COSE is working to support and promote the small business community in NEO and beyond. Join us for this one-of-a-kind celebration that brings small business owners together to kick start the year ahead.

Best of Tech Awards The culmination of OHTec Tech Week, these technology business awards put a spotlight on the region’s most innovative companies and leaders. Awards feature the much anticipated “Tech Company of the Year,” as well as the “Most Promising Start Up,” “Best Tech Device,” “Best IT Services Team,” and the CoolTech Challenge Scholarships for high school students.

Business-to-Business Matchmaker This unique small business event presents a great opportunity for small businesses to gain access to buyers that represent millions of dollars in purchasing. The goal is to create future contract opportunities for small businesses through one-on-one sessions between buyers and suppliers.

CIO Symposium The CIO Symposium is the longest running gathering of CIOs in Ohio! Its interactive format presents an ideal forum for CIOs and IT executives to share insights on critical business issues and make important connections.

Small Business Convention The Small Business Convention is the largest small business event in the Midwest, connecting hundreds of small business owners with the right people, knowledge, and resources to propel success. The fully immersive, experiential event features world-class keynote speakers, workshops, networking events, and an exhibit hall full of small business resource

Every day, small business owners have new ideas and opportunities, and are faced with new challenges. Don’t think you’re alone. Tap into a network of your peers and experts who will act as a sounding board while you work towards your goals. Whether it’s attending a COSE networking event or taking time to work on your business at the Small Business Convention, we connect you to the resources and people JANUARY/FEBRUARY 2016 | COSE Mind Your Business | 23 you need to achieve your idea of success. Learn more at www.cose.org

Further, companies should begin drafting other changes to their hiring process. Three things small business owners can be doing right now to appeal to millennials include: Communicate your purpose: Millennials want your company’s message to them to be genuine. Explain how prospective employees fit into your business’s architecture. n Put your culture out front: Show off your workplace on your company’s website. Think about including video testimonials from current employees. You want job applicants to be able to picture themselves working at your business. n Be proactive: Don’t wait weeks or months to get back in touch with applicants. Reach out as soon as possible. And once the candidate is onboard, consider instituting “stay interviews” to help identify what drives your employees. What’s their passion? What keeps them coming in everyday? “Use this feedback to enhance your company’s benefits and culture,” Stouffer says. MYB n

NEXT STEPS

MARK YOUR CALENDAR FOR COSE’S 2016 EVENTS

HIRING MILLENNIALS

FEB

APRIL

Want more? Additional resources for this story can be found online at www.cose.org/myb

JUNE

SEPT

OCT

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22 | COSE Mind Your Business | JANUARY/FEBRUARY 2016

ANNUAL MEETING FEBRUARY 24, 2016

www.cose.org/annualmeeting

“Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art.” Join us as we celebrate the art of small business at the COSE Annual Meeting, featuring Michael Goldberg, Assistant Professor of Design and Innovation at the Weatherhead School of Management.

- Andy Warhol

THANKS TO OUR EVENT SPONSORS:

DETAILS 4:30-9 p.m. Near West Theatre 6702 Detroit Avenue, Cleveland, 44102