We are living in difficult times – the coronavirus pandemic, wildfires, global warming, racism, and a lot of rancor, political and otherwise. This year, 2020, can’t be over soon enough. Please know that what is important to you is important to us. We are here for you.
Stacy and Nancy
Challenges facing small and mid-market manufacturers:
Most small and mid-market manufacturers understand the value of an online presence, but they are facing other challenges in their respective industries just to stay competitive. Many are experiencing gross margins being driven down due to the lack of a skilled workforce and raw material pricing increases. Operating expenses are also rising as businesses spend time and resources in product development and innovation to stay cutting edge in their industry. This, combined with ever-increasing regulations and compliance issues, often pulls focus toward daily operations and does not allow forward planning.
Gaining a competitive advantage:
Selling “in-demand” products is no longer enough. Customers are demanding more and to meet those customer demands, it is vital to first anticipate their needs and second, to make doing business with you easier than doing business with anyone else. Finding creative ways to take work off of your customer and offering them something they can not get elsewhere is a good way to ensure they keep coming back.
Outsourcing your online strategy & customer engagement as an option
As a smaller or mid-size manufacturer facing these challenges, you may not have the infrastructure to optimize your online strategy around customer engagement. Turn that challenge into an advantage!
Larger enterprises are often slow to move and are tied up with enterprise IT systems which require much more planning to make changes. Robust, often turn-key technology solutions are now available to the SMB market at a 10th of the costs of enterprise systems. In addition, proven tactics and best practices in improving the customer experience and leveraging the internet to better engage your customers exist and can be easily implemented. All you may be missing is the know-how and diverse skill set to capitalize on these lower cost solutions and proven best practices.
At a much lower cost than hiring a full in-house team of diverse resources, hiring an eCommerce managed services firm gives you the best of both worlds. eCommerce platforms require constant updating and improving as your business grows and your needs change. Outsourcing your eCommerce efforts allows you to focus on your core business and on growing your revenue rather than investing your company’s time, money and resources into building and maintaining an ecommerce platform.
5 important considerations:
1. Executive level sponsorship: As a small or mid-sized manufacturer, you can not afford to delegate this to a staff member or manager to oversee. A successful engagement requires that your managed services firm understands the vision of your company. Knowing the strategic plan allows them to envision how to leverage the online channel to push your company’s vision and strategic initiatives forward.
The relationship with your managed service firm should not be viewed as a ‘staff augmentation,’ but rather as a partnership. Understanding online best practices often results in an out-of-the-box conversation to give your company a competitive advantage. A ‘just go do what I say’ approach is a waste of your investment and frankly a partnership any good managed service firm will not want.
2. Configurable options: Every company has different levels of technical or business expertise and a good managed services engagement will account for those skill sets already present within your company. From one end of the spectrum – a fractional eCommerce executive that participates in executive level, to the other end of the spectrum – more of an advisory role with someone more savvy with new technology.
Comparably, if your firm has design or development expertise, a managed services solution should account for leveraging your internal staff, as desired.
3. Integrated process: At a minimum, a managed services firm should meet with you quarterly to discuss business initiatives and online channel initiatives. These periodic strategy meetings should also involve brainstorming on how to capitalize on market opportunities and business initiatives.
In addition, it is imperative to meet with your managed services firm on a monthly basis to gauge their performance by reviewing agreed upon measurable metrics (increased revenue, cost savings, customer loyalty, brand exposure, etc.). A good managed services firm will have open lines of communication and have a process in place so that you may request, review the status of and update any current initiatives or discuss new initiatives.
4. Diverse skill set: A qualified managed services firm will have access to a diverse skill set to leverage for your online initiatives. This includes:
- Digital marketing & usability experts
- eCommerce Strategist
- Technologists / platform experts
- ERP/operations expertise
- Systems integration expertise
5. Your Gut: Far more abstract, but perhaps the most important criteria is whether or not you are comfortable with the firm. Do you you think they have your best interests in mind? Do they act like an extension of your team? Do they treat you like a child or do they act more like a mentor or coach helping to develop your own expertise?
Are you comfortable with the on-boarding process or do you feel as though they are rushing the process? A good online managed services firm will take time and invest in learning your business, bringing ideas to the table, even start laying out a plan before you ‘sign on the dotted line.’
The two primary issues faced when investing in online customer experience and engagement solutions. – the cost of the platform/technology and the skilled expertise (strategic down to tactical) to capitalize on this – is now affordable and features robust solutions. Hiring the right eBusiness managed services firm gives you the ability to stay competitive with and even react quicker than your competitors, all at a reasonable investment.
To date, business owners who started a business or who moved their business to a location that was previously occupied by a completely separate company may wind up inheriting certain workers’ compensation liabilities. A transfer of experience and/or debt—an Ohio Bureau of Workers’ Compensation (BWC) policy known as successor liability—had a negative and unanticipated impact on a business’ workers’ compensation costs.
With the approval of this legislation, the Ohio BWC will be required to reduce the transfer of negative experience to a successor employer under certain circumstances. And this legislation paves the way for relief for small business owners that are often unknowingly impacted until it is too late.
“Business owners have been blindsided when they inherited these liabilities after the move occurs and it jeopardized a small business owner’s ability to participate in certain workers’ compensation savings plans,” says COSE Executive Director Steve Millard.
Due to the passage of House Bill 259, Ohio law now instructs the BWC to establish conditions and criteria that might reduce or waive negative experience to be transferred to an employer who is a successor in interest.
“My company has opened four restaurants in Northeast Ohio the last few years,” says Operations Manager of Driftwood Restaurants Toby Heintzelman. “In three cases—and despite the fact that our company did not buy these businesses from the previous owners—we were surprised to learn that we were expected to pick up the previous companies’ workers’ compensation history. It made no sense. Moving forward, we’re encouraged that business owners will be responsible for the real risk they bring, not the history or disputes of former occupants.”
BWC also now provides a limited release of relevant workers’ compensation information before an acquisition or merger occurs. To help facilitate these requests, the Request for Business Transfer Information (AC-4) Form has been created. This form, which both parties must sign, allows the buyer to view any outstanding liabilities as well as the risk experience of the predecessor.
“The Governor, Ohio BWC, and legislative leaders like former State Representative Barbara Sears are to be commended for listening to the business community and acting on this issue,” says Millard. “The old approach served to prevent, or even worse, penalize new business creation in previously occupied or abandoned facilities. We’re confident these common sense changes will provide small business owners with greater clarity when they move to a new place or open up a new business which will help revitalize Ohio neighborhoods and lead to economic growth.”
An employer identification number (EIN), also known as a federal tax identification number (TIN), is used to identify a business entity. Generally businesses need an EIN. If you answer yes to any of the following questions, your business must get an EIN: Do you have any employees? Do you operate your business as a corporation or partnership? Do you file an employment, excise or alcohol, tobacco and firearms tax return? Do you withhold taxes on income, other than wages, paid to a non-resident alien? Do you have a Keogh plan? Are you involved with any of the following: Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns; estates; real estate mortgage investment conduits; non-profit organizations; farmers’ cooperatives; or plan administrators?
It’s important to remember that a business entity is separate and distinct from its owner(s), and as such needs its own identification. You can apply for an EIN online, for free, and receive your EIN immediately. The application is fairly straightforward and takes only minutes to complete.
“I’ve been working with lawyers and governance issues for more than 20 years. Working with Nancy brings all the bests together – she has a great mastery of non-profit law and governance issues; she is brutally efficient – resulting in great value for the investment in her work; and, she has a way of breaking down complicated issues to promote understanding and good decision making. I’d highly recommend Nancy for your non-profit legal needs.” Steve Millard, President and Executive Director, COSE | Council of Smaller Enterprises
As the year-end donor season approaches, we want to remind you that the donor is required to pay for an appraisal for any property, real or personal, for which the donor wants to take a deduction of $5,000 or more.
We often see agreements between a donor and non-profit organization whereby the non-profit agrees to pay for a qualified appraisal of the property to be donated. IRS rules does not permit this, notwithstanding the terms of any such agreement. More specifically, the donor is required to file Form 8283 with her tax return to take a charitable deduction for donated property, which requires her to get a qualified appraisal of real and personal property. Not all donations require an appraisal, such as cash or marketable securities. But where an appraisal is required, it is up to the donor to obtain and pay for it.
“I worked with Stacy and she was amazing! She answered all of my questions and even helped me while she was on vacation! I definitely recommend this firm!” Valeria Burton