Do you have, or expect to have, any "common law employees"? Do you want your employees to be able to contribute their own money too? Which is a higher priority—maximum contributions or simple administration? As a small-business owner, you're probably used to handling a lot of responsibility—everything from drawing up detailed business plans to creating a budget.
Comments Think of an example for an incentive plan? But many plans fail to improve company results, and even create demotivation when they seem to be unfair or unattainable. Appreciation is one of the three things that define a great workplace. In a small business, employees are the most important source of customer satisfaction.
Happy employees make for happy customers.
You can show appreciation with non-cash recognition and rewards, and many studies show these are more effective than cash bonus plans see next article. But when you decide to use compensation to show appreciation, we have also noted that annual bonuses are the preferred way to increase compensation, rather than increases in base salary.
Salary and Structure Designing a bonus or incentive plan takes some careful thought. This article describes how to do that. It excludes sales force compensation. Preparation Decide the behaviors you want to promote, as well as the results you want the company to achieve.
If you focus only on individual results, you may destroy teamwork and pay out rewards without improving company results. So every incentive plan should reward all three levels: Each of these three performance arenas must be measured on quality or customer satisfaction as well as productivity.
The incentive plan must be simple enough to explain clearly, and it must be perceived as fair. Dimensions of fairness are: I do well when the company does well.
I get credit for exceeding expectations goals. I get credit for exceeding the performance of my peers. I get credit for helping my peers succeed. The most effective plans deliver rewards frequently e. Design the Incentive Plan Given the above principles, create the plan. Here is a classic design from a big company: Set a quality threshold that must be achieved to enable any payout e.
That percentage can be higher for higher level employees. For individual results, set a target payout to be earned by completely satisfactory but not extraordinary performance, and a threshold below which nothing is paid. One problem with this design is the degree of goal-setting and measurement required, which may not be practical for a small business.
A points system is much easier to explain and administer.
For example, if you are operating a maid service and you want to reward houses cleaned with no complaints:Dec 14, · With the GOP's proposed shift from a worldwide to territorial tax system, it won't be small businesses who benefit, says CPA Anne Zimmerman.
Financial Planning for Small Business is designed to provide an introduction to the Before developing a financial plan for your small business, you may wish to consult with an accountant, lawyer, business mentor, business management consultant, For existing businesses, this is usually the next year of operation.
For new. 7 elements of a business plan that will help you to plan and succeed.
Of those who created plans, 64 percent grew their businesses, compared to 43 percent of companies that hadn’t yet finished a plan. Choosing how to fund your small business is an important aspect of your overall business plan. Depending on your decision, it can also.
Virtual Business Plan Walk through the design of a business plan. SBA Business Planning Guide – Careful business planning is fundamental to success.
The Small Business Planner includes information and resources that will help you at any stage of the business lifecycle. Wells Fargo Works is our commitment to serving small businesses, delivering resources and guidance to help your business take the next step.
The Pros and Cons of Downloading a Business Template; 1. Free Business Plan Template Download. Are you an entrepreneur looking to download a free business plan? If so, you have come to the right place. Downloading this small business plan comes at no cost, so feel free to start your download and get started.
For many small businesses.