Glen Allen Business & Professional Association

Steiner Business Solutions has recently become a founding member and officer of a newly formed organization, the Glen Allen Business & Professional Association.  Dan Steiner, President of Steiner Business Solutions, will serve the Association as Vice President/Treasurer.  We have already started talking to business owners in the Glen Allen, Innsbrook, Short Pump, and surrounding areas about memberships.  Interest in the Association has been very strong to this point and we’re excited about kicking off our first “member event” this summer.  Our website is currently under development, so be on the lookout for that.  More details are coming……..

BIZ LINC 2009

Steiner Business Solutions, a member of the Greater Richmond Chamber of Commerce, has signed up to be an exhibitor at “BIZ LINC 2009″.   BIZ LINC is the Richmond Region’s largest business-to-business trade show!

Event Details:

Date:  September 23, 2009

Location:  Richmond International Raceway – 600 E. Laburnum Avenue

Time:  8:00 am – 5:00 pm

Please stop by and say Hello!

“Relationship Banking” – truth or myth?

As a fellow small business owner/entrepreneur, I can personally attest to the anxiety that exists in the banking industry.  I’ve been trying to secure a modest line of credit for my business.  Personally speaking, I feel like I’ve lived a financially conservative and responsible  life to this point.  I’ve always made it a habit and priority to pay all my bills on time; therefore, my credit score is quite a bit above average.  Sure, I’ve got a relatively young business to manage and grow, but I’m very pleased with the results so far, and I’ve managed to put some reserves in the bank.  I’ve proven to be a very good and stable customer to my bank.  Unfortunately, that’s not enough to convince the bank that I’ve trusted with my money, to offer that same trust to me with THEIR money.

Banks are hitting the airwaves and newspapers, assuring people that – YES – they are still lending money.  I’m still waiting to run into that ONE person who got funding.  I believe the real message coming from the banks is, “Please don’t take your money out of your account – we promise we’re not going bankrupt.”

One of the hardest things to do when I decided to venture out on my own and become a business owner was convincing my wife that we could afford to take that risk.  The first couple of times I started “talking crazy” about doing something,  she was very nervous and hesitant.  But over time, she saw the confidence in my voice and step -  knew that I had a good business plan – and was now behind me 100%.  That, to me, is the definition of “relationship banking”.  It seems to me the banking system’s definition of “relationship banking” is – we will support you and do business with you if our underwriter (whom you will never meet) decides that you are a good credit risk.  And may I ask how he/she determines that?  Oh, well they take all your personal and business financial data- run it through a software program with fancy formulas- and come up with a decision.  If you’re lucky, your loan officer will call you with the bad news.  If you’re one of many, you’ll get your pre-printed rejection letter in the mail.

Honestly, I don’t really need the line of credit; but I thought it would be a good idea for my business to establish some credit history.  But more importantly, I wanted to find a bank and build a long term “relationship” (there’s that word again).  A bank that could serve me and my customers for many, many years.  So far – that relationship has yet to happen.  Sure, the economy is awful and I can understand that banks are more cautious than ever.  Small business lending IS very risky; however,  I’m not upset about the money -  I’m more disappointed that my bank, who promises me “relationship banking” does not believe enough in me or my business to begin that “relationship”.

But hey, if the underwriter did ever ask me why I felt I was a good credit risk, I would tell him/her…..”Don’t worry about me repaying my debt to you, because if my business begins to fail, I’ll just ask the government for a bailout!”

Paying Employees During Inclement Weather

It has been a long time since bad weather has been around to raise the question:  do you have to pay your employees if they don’t come to work due to severe weather conditions?  The answer depends on a couple of factors:  (1) Is the employee exempt or non-exempt, and (2) was the business open or closed?

If the employee is non-exempt, it’s simple.  These employees do not have to be paid for time taken off due to bad weather, even if you close the business.  Your obligation to non-exempt employees is to ensure they are paid appropriately for hours worked.  So, outside of any policies you may have stating otherwise, there is no requirement to pay these employees for time not worked.

Exempt employees are different.  If you close your business for the day, you still must pay exempt employees their full pay.  You can charge the time to vacation, but if you don’t offer vacation or if you provide vacation but the employee has no time off available, you still must pay the employee for the entire day.  (Exceptions exist if you are closed for a full week, but the above applies for anything less than a full week).

If your business is open and exempt employees do not come in because of the weather, they can be docked for a full day’s absence (or count it as a vacation day, if available).  Deducting an employee for a partial day’s absence is not permitted — if they come in late or leave early due to the weather, they still must be paid for the entire day if any work was performed during the day.

The concern over whether or not your business is closed is because the Department of Labor says exempt employees cannot have their pay docked when they are “ready, able, and willing to work”, which would include if your business is closed.  If your business is open, however, and the employee does not come in, the DOL recognizes that as an absence for personal reasons, which can be docked (again, only in full-day increments).

This is a general overview, and there are some additional quirks, depending on the circumstances.  If you have any questions about handling a specific case in your business, please let me know.

Regards,

Charlotte

Cole James Associates, Inc. provides Human Resources services and support to small and medium sized businesses.  To learn more about these services, please visit our website at www.colejamesassociates.com or call (804) 339-5576.