National Clothesline

Summertime is vacation time. It is also a good time to look at your business and take stock of where you are and where you want to be.

Many business owners are “too busy” to think about the business, and as long as they are making money, they are willing to live with a certain level of dysfunction. This, of course, is shortsighted.

Here are some of the questions you should be asking yourself during the dog days of summer.

Are my corporate books up to date? Remember, corporations and other legal entities need to have certain records to demonstrate that they are separate legal entities from the stockholders, and not just an extension of those persons.

Corporations are created to limit liability and protect personal assets, and failure to keep proper records could jeopardize that liability.

Do I have a succession plan? You should be thinking about who will run the business when you retire or if you become sick. If you plan to sell the business at some point, you need to make sure that there are people who can run it until you are ready to sell.

Are my employee policies up to date? Legislatures have nothing better to do than expand employee rights.

Each year, it becomes more and more difficult to run a business without running afoul of some new labor and employment law protecting bad employees.

If you have a handbook, have it reviewed. If you do not have a handbook, get one. If you have wage and hour questions, get them answered.

Do I need all my current employees? Bad employees cost money. Bad employees are a drag on morale. Bad employees should be eliminated.

If an employee goes on vacation, and efficiency goes up while he or she is away, consider whether you need that employee at all. Terminating a bad employee can sometimes prevent good employees from leaving.

When was the last time I met with my employees to talk about the business? Regular communication with employees is essential, yet frequently overlooked.

Employees without an opportunity to discuss workplace issues with their employers often seek union representation based on the mistaken belief that you do not care about their workplace problems.

In addition, you may get suggestions on how to improve business and make more money. Good employees have good ideas.

When was the last time I attended a seminar on management or other topics that would help me run my business better? When was the last time my managers went to such a seminar?

It never hurts to sit in a room with other business owners and hear about good management and legal practices.

Many times, the best seminars are sponsored by trade associations and are included in the membership dues. Good speakers encourage questions, and questions encourage other business owners to share their solutions to common business problems.

Do I really understand the law? While most lawyers will tell you what you cannot do, that is not the best way to look at legal issues.

In fact, a good lawyer will tell you want you can do and how to do what you want to do in a legal, proper manner. In addition, many people believe there are legal restrictions on practices when there are not. It is not unusual for me to find a new client who is doing something because he believes he is required to do so, incorrectly.

Do I have the right lawyer and accountant? I firmly believe in loyalty, but loyalty should not be hurting your business. If you decide to look for a new lawyer or an accountant, interview several candidates. They should be willing to meet with you at no cost to discuss a future business relationship.

When was the last time I talked to my vendors about pricing and other subjects? Every time we contact a vendor (telephone provider, insurance provider, delivery service, etc.), we find out that we have been paying more than we need to for something or we are not taking advantage of certain benefits.

So call Comcast, Verizon, Joe’s Landscaping and Snow Removal, and Bill’s Insurance Brokerage to ask your representative to come out and discuss your account. Who knows, you might end up with a better deal.

These are only a few of the items to consider that might help you run your business. If you are too busy to ask them now, perhaps you will need a lawyer in the future to help you untangle a mess you could have avoided with a little planning.