Tuesday, June 23, 2009

Do you have a plan?

If the government decides to "manage" health care in this country, do you have a plan? Of course you don't because we do not know what the heck is going on. The proposals be talked about are sometimes interesting and sometimes stupid. Typical government methodology. But, you should determine now. what your stand on health insurance will be especially if you are a small business. I honestly believe that most employees would give up some pay to have health insurance. The costs to them are so high if they do not have health insurance that they simple do not get care and it results in needing more expensive care later.

Let me give you a couple of ideas:

1. Tell your employees to suck it up and learn to live without it. Be helpful in the sucking it up part though. Find out what kinds of government largess is available to them and help them get it. You are paying for that at the Federal or State level now anyway. Might as well take advantage of it. Right?
2. Find some health insurance that is very cheap (relatively speaking) but only covers the most critical needs and has a $25,000 deductible. Therefore, when they go to the doctor, there would only be a 4150 co-pay and the rest is applied to the deductible. No cut in pay either.
3. Find health insurance that is pretty good. $2500 deductible, $50 co-pay and Rx coverage too based on the insurance companies list of acceptable drugs. Probably the only covered drug is Aspirin and Tylenol the rest have a $100 co-pay. 8% cut in pay for this coverage.
4. Find good coverage. $1000 deductible and $25-$25 co-pays, Rx coverage that has a $50 copay. 25% reduction in pay.
5. Great coverage. $500 deductible, $10 co-pay on doctor visits and Rx. 50% reduction in pay.
6. Best coverage on earth. 100% coverage on everything. 90% reduction in pay. That is okay because now you live in a Socialist country that is emulating Norway or Canada.

What do you think?

Monday, June 15, 2009

Do you like Baseball?

I really do like Baseball. I coached little league for 11 years for my youngest Son. It was great fun but I did not do it because I like Baseball. I did it because I like my Son and he liked playing. I used to tell the parents of the kids in our first meeting each year what my coaching philosophy was. I told them each year that, no matter what, my Son was going to play. I told my Son that he would play and that, although I liked coaching, I was doing it because he wanted to play. If he ever did not want to play, we could quit. But I wanted the parents to know that my Son was going to play all the time up front. I also told them that if they had a problem with that, I would help them find another team. I did have a couple of parents choose to go to another team and that was fine.

Most of the teams I had were not the great ball players. My Son was great, of course, and there were others that got better and better. Some of those kids played for me for 11 years. Of course, some moved away and new kids came and went. The guy who ran the league used to call and say that he had a kid that other teams wanted to get rid of or that they had a kid that signed up late, etc. and would I take them. I almost always did. Some of those experiences were good and some were bad. Lots of times I had kids that wanted to play and their parents did not have the money for the fees, uniforms, gloves, etc. I took them anyway. I kept pretty good records and can prove that during those 11 years I spent $5835 to help out kids in some way. Almost always, I took the kids out for Pizza, Ice Cream or something after a game: win or lose. Many times, that would be the best meal some of those kids got. That came to another $2995. Remember, this was 1980's and early 1990's. So, it was less expensive than today, but so was my income. Then we had parents that could afford anything. I had one who helped coach whose kid had everything on earth and, believe or not, the kid was a pretty good kid. He not only helped me coach but he helped buy after games several times.

Now what does this have to do with Small and Family Owned businesses? First of all, if you have a family member or selected person that is going to replace you as owner, tell everyone up front, right now. If it is because they are family, say so. No long diatribes about their terrific qualifications and tremendous education. They are replacing you because they are family and that is okay. Second, if there are people in your company that are pretty good, determine what it would take to help them be great and coach them into doing that or getting what they need. Thirdly, once you know what they need, if you can, help them pay for it.

Lastly, most companies frown on helping employees financially, but I think that you should. You should limit it to the equivalent of about a weeks pay (or two weeks pay if you pay every two weeks, or a months pay if you pay monthly). That can change if you have an employee that has been with you a long time and has a problem. If you are not able to help them, try to find them help elsewhere. They have invested in you, now you invest in them. If they need time to pay it back and them have been a steady, good employee, let them make payroll deductions. (By the way, if you are not using ADP for Payroll, you should. No I am not paid by them, but I have used them for years and years and they are great.)

What do you think?

Wednesday, June 10, 2009

What is up?

From a small business perspective, what is up with the Chrysler bankruptcy deal? Everyone looks at Chrysler because they will end up "leaner and meaner" with less debt and less wages and less baggage. However, the creditors and small businesses supplying things to people who supply things to the suppliers will be just fine. With the takeover by Fiat, there will be influence from the Italian auto maker, but the really small and family owned businesses will come back and will do well PROVIDED the cuts and changes required by the court continue. In other words, if Chrysler does not go back to their greedy top executives and unions. One thing Chrysler has to remember when they are out of Chapter 11 is DO NOT GO BACK TO WHAT YOU WERE AND DO NOT TRY TO. You must depend not on unions and not on banks but on your own creativity and the creativity of what got you there in the first place. Your cars and trucks and your employees and your suppliers. Not the government. Dependence on the government is what wiped you out and will in the future if you allow it. Getting out from the governments hold will allow you to succeed. Remember Free Enterprise?

If you are a small or family owned business supplying things to Chrysler, get in there now and make the best most cost effective product you can and do it in a positive and constructive manner. Should you give them terms? I do not know. Can they get your product elsewhere? If so, yes. If not, maybe. Negotiate the best deal you can REMEMBERING that "what goes around comes around". That, friends, is a fact of life. Hang in there, be aggressive and be interested in what is going on around you.

What do you think?