Bookkeeping 101

I have had the opportunity to advise several entrepreneurs who are fairly new to business, and they were new to bookkeeping as well. Basic bookkeeping goes beyond purchasing Quickbooks, but many lawyers feel uncomfortable advising their clients on how to get started. This podcast on BW Online, called "Bookkeeping Basics", is a great solution.

Work-Life Balance

BW Online's Entrepreneur Journal has an article called "Custom-building a Life." Inside, restauranteur Jeff Weinstein talks about his struggles to find balance between his successful business and his family. He tried to make his work and family responsibilities fit neatly into a schedule, but as small business owners know, that is not always possible. After all, problems can arise outside of 9-to-5, and often you are the one who needs to solve them.

While I am certainly no poster child for good boundaries, I'd like to offer the following suggestions. First, of course, is to know when to delegate, and then do it. Entrepreneurs are so comfortable relying on themselves that they often mistakenly believe that they need to do everything personally. Instead, they need to recognize which tasks (most small tasks and some large ones) can be delegated to an employee or business partner. The measure is not whether someone else can do it exactly as you would, but whether they can do it competently. If they can, then stand back and let them do it. You may be surprised at their competency and innovation. The best part is, you won't be spending your Valentines Day dinner dealing with work problems.

A second, and related, suggestion is to recognize when something is an emergency. Part of this is learning to stick to a schedule. If you tell yourself that you leave work behind at 5:00 (or whenever you set your work hours), then that does not mean that you cannot handle emergencies as they arise. But it does mean that you should only be dealing with emergencies after 5:00. This is by far my biggest work-life balance issue, so I understand that your brain will not shut down at 5:00. But there are ways that you can minimize how much your work cuts into your personal time. If you get a brilliant idea during "CSI," then jot it down in a notebook. And leave it at that. You can spend time developing your brilliant idea tomorrow at work.

If your problem is that your work invades your personal time because you simply don't have enough time during the workday, then you need to deal with that issue. Perhaps you need to delegate (see above). Or perhaps you need to work on managing time better (that topic is way too big for this little blog post). If you can't delegate because you have no one to delegate to, then find help - whether it's relying on professionals to assist, or hiring a new employee.

I'm sure you can think of many reasons why you can't utilize this advice, and that's okay. But it's your life that your work is invading, and only you can put a value on that. And maybe that's where you need to begin.

Handling Product Recalls

This article on law.com discusses the need for good public relations in handling product recalls. The article is written for GCs, but the advice really applies to any company manager facing a recall. The author advises companies to have a plan in place in case of a recall, because the timeline is very short once a company learns of a problem. It is also useful to have a good product tracking system in place. These steps can assist a company, and its lawyers, in acting fast to respond to a concern, and can streamline a company's actions in those critical first days.

What It Means to Work Here

BW Online has an article from Harvard Business Online called "What It Means to Work Here." We all know that the greatest companies have the greatest employees. But the average small businessperson can't compete with Google's legendary offerings. This article recommends creating a "signature experience" - a distinctive practice that can make your company stand out. Does the future success of your business absolutely require that your employees be seated at their desks from 9:00 to 5:00? If not, why not build in a little flexibility? Can you offer telecommuting? Offering your employees a unique experience or benefit will help you to stand out, and will give you the chance to compete for talent with... well, maybe not Google, but you get the idea!

The Best and Worst Corporate Practices

BW Online has an article here featuring a slideshow with the 10 best and 10 worst corporate practices in 2008. Some of my favorites: employee-driven transfer policies, matching contributions, and subsidized public transportation for employees. Wondering how your corporate policies measure up? This article is a great checklist.

Stoneridge: The Finale

And we have a decision... As I suspected, and informally predicted, the Supreme Court has ruled in favor of the defendants, Scientific-Atlanta and Motorola, in the Stoneridge case. You can read the slip opinion here.

Business defendants in securities class action lawsuits have long felt that plaintiffs attorneys cast a wide net in naming defendants, hoping to find the deepest pockets in cases that seek joint and several liability. But wait - you say - surely a court won't hold businesses liable who didn't have anything to do with the securities fraud. Ah, but securities class action litigation is very expensive to defend, so most companies would prefer to settle rather than face those ridiculous costs. And if they're not named as defendants in the first place, then they can avoid paying large settlements when they did nothing wrong.

Makes sense, right? Except that the question of when one company can be held liable for securities fraud committed by another company does not have a simple answer. The Stoneridge case sought to clarify the category of liability for "aiders and abetters." But I better stop here, because I really just wanted to whet your appetite for the article I've been working on...

To read more about the decision, check out this article.

Tax time! (Almost)

Okay, I know we've got a ways to go until April 15th, as the -25 windchill reminded me this morning. But this is tax time because you are probably getting your records together for your accountant. In my experience, small business owners run the gamut in the complexity and totality of their record-keeping. From my perspective as a lawyer and tax preparer, the more the better. Write it all down and keep it for at least seven years. Better yet, write it all down, scan it, and keep it electronically forever. (And as a tax preparer, I ask that you put it in a spreadsheet. The shoebox full of receipts is so 1980s.) If you're not sure whether something would be deductible, keep the receipt and talk to your tax preparer. You never know what extra deductions your preparer can find, but I can't do much to help you if you didn't document it!

BW Online has their advice for small businesses, with Five Tax-Trimming Tips. The first is an important one - save your records. (See my note above about saving your data electronically.) If you're not sure what to save or for how long, be sure to ask your tax preparer. Second, make sure that you're using the best business entity for tax savings. Your attorney can discuss potential tax savings with you. Third, manipulate your income and expenses to cut your tax liability for 2007. Fourth, get your capital gains now - just in case the Democrats take the election. Finally, put more money in your retirement accounts to avoid paying tax on it now.

Venture Capital in 2008

The Wall Street Journal has run a few articles about how VC firms and other financiers may be clamping down a bit in 2008 (sub-prime crisis, fears of recession, etc.). If your company was counting on financing in 2008, you may want to check out this article by BusinessWeek online. BW interviewed a California VC firm, and they provide insight into the tech market, VC firms, and - most importantly - how you can catch the eyes of venture capitalists.

Time to Re-Write Your Company's Vision

BW Online has a great article called "The Napkin Test". The author believes that companies put too much effort into a wordy and quickly-forgotten mission statement. Instead, he suggests that companies focus on writing a powerful vision. The vision is different from the mission statement because it is concise and easy to remember. It should be 10 words or less, essentially short enough to write on the back of a napkin. (A little cocktail napkin, that is. If you can fit it on one of those huge linen napkins, then you're missing the point.)

When you're ready to sit down and write your vision, read this article first. Then you'll be ready to inspire your employees and customers!

Happy New Year!

Merry Christmas, Happy New Year! Yes, I took a break for the holidays, but now I'm back. Stay tuned for some new posts. I hope everyone has a wonderful 2008!