The Pros and Cons of Business Partnerships

By Skye Schooley, Staff

  • A business partnership is a shared business venture between two parties.
  • It can be an informal agreement, although you should always have a written contract.
  • Business partnerships are great for financing, expertise and division of labor, but be wary of disadvantages like partner liability and conflicts of interest.
  • This article is for entrepreneurs and future business owners who are considering entering a business partnership. 

When starting a business, you may have the option to either go it alone or form a business partnership. Both options have advantages and disadvantages, and the best one for your business depends on your unique situation. We spoke with business owners and legal experts to map out what you should consider when evaluating a business partnership opportunity. 

What is a business partnership?

A business partnership is formed when two or more parties come together to carry out a business venture, sharing both profits and losses. A business partnership can be formed by individuals and/or business entities (e.g., limited liability companies or corporations). 

The terms of the partnership can take many shapes and forms. For example, a business partnership can occur when a pharmaceutical company takes on a development partner to develop a specific drug, said James Cassel, chairman and co-founder of Cassel Salpeter. 

“A partnership can also consist of a musical artist partnering with a record company, or it can be a case where two people just decide to go into business together, or an attorney wants to partner with another attorney,” Cassel told business.com. 

Although it is possible to have a business partnership without a formal agreement, it is always wise to have a written contract with detailed terms.  

Key takeaway: A business partnership can be a shared business venture between two people or between two business entities.

Types of business partnerships

There are four types of business partnerships you can enter: a general partnership (GP), limited liability company (LLC) partnership, limited liability partnership (LLP), and limited partnership (LP). Each partnership type has varying levels of liability and control. 

General partnership

A general partnership is formed between two or more parties who run a business venture together. GPs don’t require formal agreements or state registration, so they are easiest partnership to start. They offer tax flexibility; however, they don’t offer personal liability protection, so you are responsible for the actions of your partners actions, and your personal assets are at risk. 

Limited liability company partnership

A limited liability company partnership (also known as a multimember LLC) consists of two or more owners (individuals or corporations) who are referred to as members. In an LLC partnership, a member can be held responsible for another member’s actions, but it does offer the added benefit of personal liability protection and tax flexibility. 

Limited liability partnership

A limited liability partnership is a formal agreement between two or more individuals to run a business venture together. Owners of an LLP are protected from the actions of their partners, and they are not personally responsible if a lawsuit is filed against the business (excluding cases of personal negligence or malpractice). LLPs offer management and partnership flexibility, but they do not offer tax flexibility. In some states, only certain professions can form LLPs. This is something to investigate if you are operating in an unapproved profession in multiple states, as some may not recognize you as an LLP. 

Limited partnership

A limited partnership consists of two or more partners, including at least one general partner and one limited partner. The general partner has control over business decisions and is personally responsible for the business. The limited partner (also known as a silent partner), though, does not make business decisions and is not personally liable. There is some tax flexibility with LPs.    

Compare each partnership type to see which level of liability and control suits your needs. When evaluating partnership types, it is important to be mindful of the state rules and regulations that apply to your business type. 

Key takeaway: You can enter a general partnership, limited liability company partnership, limited liability partnership or limited partnership, depending on state guidelines and the level of liability and control each partner wants. 

How are business partnerships formed?

Matt Odgers, attorney at Odgers Law Group, said a partnership can be unintentionally formed based on the actions of the partners, unlike other business entities that require state fees and registration documents (such as articles of incorporation). 

“While strongly recommended, a partnership does not require a written agreement, and it can be formed based on an oral agreement or based on the actions and relationship of the partners,” said Odgers. 

It is always best to clearly communicate what your intentions are when working with someone else. If you decide you would like to officially partner with that person or organization, Odgers advised drafting a partnership agreement, applying for a tax ID number, and filing a statement of partnership with your state government. 

Key takeaway: Partnerships can be created through formal written contracts or informal agreements.   

Business partnership taxes

Partnerships are generally taxed as pass-through entities, meaning that each partner reports their share of the income and expenses on their personal tax returns. Because of this, partners who own more shares of a business are responsible for paying more in taxes. 

“The partnership will file a Form 1065 with the IRS, and each owner receives a Schedule K,” said Odgers. “The Schedule K spells out that owner’s share of the income and expenses from the partnership. The owner then uses that information when filing their own taxes.”  

Key takeaway: Partnership taxes are reported on each partner’s personal tax returns, according to their ownership shares in the company. 

Pros of business partnerships

A business partnership can be a desirable option for many reasons. The core benefits pertain to funding, taxation, division of labor, and knowledge. 

  • Access to capital. Perhaps the most obvious advantage to having a business partner is splitting the finances. Starting and running a business is an expensive venture, and when you share the financial responsibilities of a business with another individual or entity, you are at a greater advantage of getting your business off the ground. Partnering with one or more other business members (regardless of partnership type) can increase financial security and cash flow, and lower the stress of funding your operation.  
  • Taxation. Another advantage to a partnership is taxation. Most business partnerships are taxed as pass-through entities. Because of this, you file and pay taxes on your share of business ownership. This can reduce the burden of paying taxes on the entire business yourself.
  • Division of labor. Just as partners can split the financial burden of a business, they can split the responsibility of operations as well. A business partner is someone you can share day-to-day business operations and major business decisions with (unless you operate under a limited partnership). Splitting up the responsibilities and duties of your business can help with efficiency and productivity, enabling you to accomplish more than you would alone. If you have a problem with your business, you have someone to consult with. 
  • Knowledge and expertise. Every business owner brings unique experiences and skills to the table. When you operate your business with a partner, you can benefit from their knowledge and expertise. It is ideal to have a business partner that excels in areas where you are lacking. Additionally, if you are a first-time entrepreneur, it can be beneficial to partner with a seasoned business owner who can help guide the business. 

Key takeaway: The benefits of business partnerships include additional funding and expertise, tax benefits, and division of labor. 

Cons of business partnerships

Operating a business with someone else is not always easy, and sometimes it can end terribly if you are not properly prepared. There are a few challenges to be aware of, primarily regarding profit, liability, and conflicts of interest. 

  • Informal arrangement. Partnerships allow for great flexibility, but this can be a problem as well. When setting up a partnership, it might be easier to just settle on a verbal agreement, but it is always best to sign a clear, written agreement for protection. Coming to terms about the percentage of ownership, liability, and responsibility can be difficult to agree on, which can cause setting up a partnership to take more time and money than you might have anticipated. 
  • Lower percentage of the profit. In contrast to the benefit of having additional funding, a business partnership can also yield lower profit per person. Since you will be dividing the profit of the business based on share of ownership, you must be okay with not receiving the full income that the business brings in. 
  • Partner liability. Depending on the type of business partnership you enter, you may be personally responsible for any actions brought against the company. You also may be liable for a mistake your partner makes. Liability is a big factor in partnership, so it is important that you trust your potential partner and enter a partnership that protects your best interests. 
  • Conflict. When you are running a business with someone else, you are bound to have occasional differences in opinion. If you and your partner have different work ethics, or have a disagreement you can’t resolve, your business can suffer immensely. This is especially true in cases of partnerships with family members or close friends, where personal issues can cloud professional judgement. 

Key takeaway: The disadvantages of business partnerships can include lower profit percentages, added partner liability and conflict. 

“While easy to form, partnerships can lead to a lot of trouble down the road if there is a disagreement or if litigation arises,” said Odgers. “It is strongly recommended to work with an attorney to determine whether the partnership is your best option.”

Source : Business News Daily

A protest vote in Hong Kong

By Melina Delkic

Hong Kong’s opposition party said on Sunday that over 600,000 residents of the city cast ballots in primaries that some viewed as a symbolic vote against tough national security laws.


The unofficial poll will decide the strongest pro-democracy candidates to contest elections in September for Hong Kong’s Legislative Council. The party is aiming for a majority in what is usually a pro-Beijing body by riding a wave of anti-China sentiment stirred by the new laws.

Though the primaries are only for the opposition camp, participation can be seen as a gauge for popular opinion. It remains to be seen whether Beijing’s new powers will make that path impossible.


Quotable: “A high turnout will send a very strong signal to the international community, that we Hong Kongers never give up,” said Sunny Cheung, 24, one of a batch of aspiring young democrats out lobbying and giving stump speeches.

Source : The New York Time

14 Important Traits Successful Salespeople Share

By Max Freedman, Contributing Writer

Whether you’re pitching a startup to investors or selling cars at a dealership, sales skills are vital to all business ventures. As many who have tried their hand at sales can attest, though, not everyone is cut out for this line of work.

Identifying the core characteristics required for sales success can help you determine if you have what it takes for a career in sales. It also can help business owners identify and hire the sales candidates who will be the best for their bottom lines.

Business News Daily spoke with business leaders to discover the traits that the most effective and productive salespeople share. Read these business leaders’ thoughts and learn more about the sales personality types below. [Read related article: https://www.businessnewsdaily.com]

The 4 sales personality styles

When it comes to sales, the four personality types are assertive (sometimes also known as driver), amiable, expressive and analytic. Each of these types can be broken down into a cluster of descriptions to paint a picture of the person:

  • Assertive: goal-oriented, competitive, decisive, impatient, controlling, loud; more likely to speak in sentences than in questions
  • Amiable: patient, friendly, open to challenges, calm, informal; often good listeners who ask many questions and seek strong personal relationships
  • Expressive: people-pleasing, convicted, colorful, persuasive, outgoing, creative, spontaneous, intuitive, loyal, enthusiastic; also likely to speak in sentences instead of questions and seek strong personal relationships
  • Analytic: impersonal, fact-driven, formal, serious, direct, patient, prepared; likely to ask many questions and not seek personal sales relationships

According to the business leaders Business News Daily interviewed, good salespeople often boast several qualities from all four sales personality types.

How to sell to each of the personality types

Sales personality types aren’t just important for knowing whether you’d make a good salesperson – you’ll also want to change your selling methods based on the personality type of the person to whom you’re selling. Each of the four personality types will react in their own distinct way to different sales pitching styles. Experts suggest taking the following approaches when selling to the different personality types:

Assertive

  • Be professional.
  • Come prepared.
  • Only give entirely accurate answers. If you don’t have one, tell the person that you’ll investigate it and get back to them.
  • Make short statements and get to the point quickly.
  • Provide examples of your product’s benefits.
  • Show how your product levels the person with their competitors.
  • Use business metrics rather than subjective descriptions.

Amiable

  • Pitch a vision, not a product.
  • Build rapport before beginning your sales pitch.
  • Tell stories about other clients, why they sought your product, and how it addressed their issues.
  • Gently guide the person through the sales process instead of bombarding them with information.
  • Offer personal guarantees such as refund policies.

Expressive

  • Show case studies and other fact- and data-based information.
  • Work toward a strong, professional relationship and build rapport.
  • Focus on qualitative rather than quantitative descriptions.
  • Check in with the person often to see whether you’re both on the same page.

Analytic

  • Be patient.
  • Realize the person has likely done introductory research ahead of time.
  • Provide data and numbers instead of vast, unprovable claims.
  • Steer toward facts and away from building a strong, professional relationship.

The 14 traits of successful salespeople

No matter which personality type you’re selling to, there are certain best practices to follow and good characteristics to cultivate. Business experts we interviewed say that the most successful salespeople share these traits.

1. They care about the customer’s interests.

“Your customers want to know you … understand their challenges, dreams, and goals, and have carefully considered why your solution makes sense – and they want to be sure you have their best interests at heart. They have to be sure you care [more] about their mission and the greater good than your numbers.” – Karin Hurt, founder of Let’s Grow Leaders

2. They’re confident.

“If you don’t believe in your product, you aren’t going to make a customer believe in your product. If you can confidently explain how your product or service is going to solve a problem for the customer, then you’ve got the customer in the palm of your hand.” – Megan Ingenbrandt, social media assistant at General Floor 

3. They’re always on.

“A good salesperson … is always aware of her circumstances and surroundings, can see how her product or service might positively impact her environment, and will be prepared to present and make a sale at any moment.” – Judy Crockett, retail management consultant and owner of Interactive Marketing & Communication 

4. They’re subtle.

“Great salespeople never look like they are selling anything. They are educating, instilling faith and confidence. They are quietly and invisibly demonstrating why customers should believe in them and, in turn, buy from them.” – Mark Stevens, CEO of Almost Science 

5. They’re resilient.

“Top sales achievers have a unique ability to cope with difficulty, to negotiate obstacles, to optimize performance in the face of adversity. They take rejection as a personal challenge to succeed with the next customer.” – Jim Steele, president and chief revenue officer of Yext  

6. They’re extroverted.

“An extrovert is generally sociable, gets energized by spending time with other people, likes to talk and start conversations, and makes friends easily. They also tend to have many interests. This allows a salesperson to be willing to meet people, enjoy the interaction, and talk about many things. The more subjects they can converse about, the better they’re able to connect with the customer.” – Dominick Hankle, Ph.D. and associate professor of psychology at Regent University 

7. They’re good listeners.

“You have to listen to the customer’s pain point before you start selling your product or service. Great salespeople sell solutions to problems, and they do that by understanding and listening to the customer.” – Timothy Tolan, CEO and managing partner of The Tolan Group (Sanford Rose Associates) 

8. They’re multitaskers.

“Multitasking is just a natural occurrence in any sales environment. You have sales you’re trying to close, leads you’re nurturing and following up on, and potential leads calling or emailing for more information. A great multitasker can keep everything sorted, conducting multiple trains on a one-train track, and this leads to efficiency, which in turn leads to better performance.” – Coco Quillen, COO and director of operations at Davinci Virtual Office Solutions 

9. They provide insight.

“In today’s marketplace, most customers are much better informed and educated before reaching out to a vendor. Simply providing specs and product data isn’t enough. A sales professional with a consultative mindset identifies customer needs and seeks to tailor custom solutions that fit those needs.” – Rudy Joggerst, digital marketing manager at Janek Performance Group 

10. They’re persistent.

“Persistence, when done respectfully and consistently, breaks through. It reminds [customers] that you are there with a solution to their problems. It gives them multiple chances to connect. And though it may take half a dozen times to get a response, land that meeting or open a discussion, they will thank you in the end.” –Michael Mehlberg, co-founder of Modern da Vinci 

11. They’re honest.

“A successful salesperson will not fib to close a deal, because he or she knows that you’ve not only burned that bridge, but all of the potential other bridges that lead from your contact to their contacts. Better to miss out on a deal and maintain your honesty, integrity and network.” – Ollie Smith, founder of ExpertSure 

12. They’re focused.

“The reps that achieve the best numbers quarter after quarter all have one thing in common: focus. They don’t get distracted by instant messenger or email, and they aren’t worried about office gossip. They understand what they need to do to be successful and set goals for themselves to achieve that success. They act with purpose in their day-to-day and apply deep focus to all aspects of their work.” – John-Henry Scherck, principal consultant at Growth Plays 

13. They’re optimistic and upbeat.

“Top salespeople … tend to be upbeat and radiate a sense of humor, fun, and general positivity. While grounded in reality, they focus on what they can control, stay on course with optimism about what they can achieve, and [don’t] let the rest drag them down.” – Mike Kunkle, vice president of sales effectiveness services at SPARXiQ 

14. They have a broad worldview and cultural understanding.

“Timing, decision criteria, financial justifications, formality, and even the expectations for support during and after a transaction may be quite different [in other markets], so international sales success takes empathy as well as patience. Additionally, in many markets around the world, business is based on relationships, which takes longer to develop when working with international customers.” – Ed Marsh, founder and principal of Consilium Global Business Advisors 

Paula Fernandes and Brittney Morgan (Helmrich) contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article.

Source : Business News Daily

6 Valuable Tips for Building a Mentor Relationship

By Business News Daily Editor, Expert

  • From help navigating difficult decisions to everyday career advice, a mentor can help guide you throughout your career.
  • Getting feedback from someone who is successful and more experienced can take your career to the next level.
  • To be successful, a mentor relationship requires dedication and commitment from both the mentor and the mentee.

What does a mentor do?

“Everyone needs a confidante … to go to for advice,” said Rachel Bitte, chief people officer at Jobvite. “Whether you seek out your own or are assigned one by your company, having a mentor can be a wonderful asset, no matter the stage you’re at in your career.”

A mentor helps you build your skills as a leader, a strategist, a consultant or a manager. They can guide you toward making sound decisions that positively affect the trajectory of your career path or in gaining skills needed for your industry. In the entrepreneurial sector, a mentor can help you successfully guide your new business through the pitfalls inherent with being a startup, including funding challenges, paperwork, finding clients, and delivering on projects, for example.

But, like every relationship, building and maintaining a successful mentor relationship isn’t effortless.

Building a mentorship relationship

“Building your relationship with your mentor is like job searching – you need to put time, effort and focus into cultivating and growing this relationship,” said Vicki Salemi, career expert at Monster. “Just as your dream job won’t fall into your lap, neither will the perfect mentor relationship.”

Check out these six tips for how mentees can build a successful mentor relationship.

1. Identify your goals.

To find an effective mentor, Salemi suggests first identifying your goals – this will help you decide who will be a good mentor for you. You can ask yourself questions like what do you hope to get out of the relationship? What do you anticipate giving?

“The mentor can only provide you with the guidance and support you need once you figure out what that is,” Salemi added. “Once you identify your goals, finding the right fit is important, and often comes down to personality and communication style.”

2. Get to know your mentor.

To forge any relationship, you need to get to know each other, and Salemi says this is particularly important in a mentor relationship.

“The same rules apply for building a relationship with colleagues as they do for building a mentor relationship,” she said. “Try to get to know the person, including learning about their professional background and their personal likes and interests.”

The more you know about your mentor, the more they can help you. You can ask them about their professional backgrounds and how they’ve navigated past career challenges.

3. Follow up.

For the relationship to grow, you need to stay in regular contact with your mentor.

“Be consistent and follow through,” Salemi said. “Schedule regular check-ins [such as] a monthly phone call and then face-to-face meetings in person each quarter. In-person meetings are still the most effective way to build a strong relationship!” Remember, your mentor is giving their time out of goodwill. It may be on you to reach out more often and keep that relationship alive.

4. Be prepared.

“Good mentors are attracted to people who are proactive about their career … [are] eager to learn, take interest in the lives of people around them, and look to add value where they can,” Bitte said.

Be prepared for every meeting, and show your mentor you’re eager to progress in your career. 

“Be prepared to have specific agendas,” Salemi added. “Each time you speak with your mentor, provide an outline ahead of time of what you’d like to discuss. Be specific so both you and your mentor feel like you’ve met your objectives by the end of your meeting.”

This strategy serves four powerful purposes. It helps you learn something concrete and actionable each time you meet with your mentor. It helps your mentor be prepared to guide you with their best advice. It also helps your mentor believe that you are taking the mentorship seriously and making good use of both your time. Last but not least, it helps the mentor feel good about the work they’re doing. That feel-good feeling will strengthen the relationship between you and keep your mentor coming back to the table.

5. Know when it’s time to move on.

Career goals and paths change. Mentor relationships aren’t designed to last forever, and that’s OK. While your mentor will always be a valuable contact, it’s important to know when the relationship has run its course.

“Keep in mind that you may outgrow your mentor as needs change over time,” Salemi said. “While that mentor may have been amazing in one specific area, they may not be as knowledgeable in another.”

6. Thank your mentor. 

Thank you goes a long way. Let your mentor know you appreciate their advice and time.

“Be sure to express your gratitude throughout your relationship,” Bitte said. “A handwritten thank-you note can make any amount of work worth it.”

“Time is important to all of us, and the time your mentor devotes to your meetings, emails, and overall advancement should be appreciated and recognized,” Salemi added. “Whether it’s a simple email or a handwritten note, point out to your mentor how much you value their input.”

How long should a mentoring relationship last?

There is no one-size-fits-all relationship in the mentoring world. If the two of you are working together on your own, the relationship can last as long as is mutually beneficial. Some mentor-mentee relationships last a lifetime and often grow more equitable over time.

If you’re part of a more formal mentorship program, there may be time requirements you need to follow, so make sure you’re fully informed about your program. Knowing the guidelines also shows that you’re a good candidate for mentorship and that you’re taking the opportunity seriously. A good rule of thumb is to meet once a month for six months and then reevaluate whether to continue together in your last couple of scheduled meetings.

What are the benefits of mentoring?

A good mentor relationship gives you a powerful resource for advice, strategy and a deeper understanding of the world you’re working in. That relationship can guide you through defining and understanding your job role, navigating any problems at work and empowering you to do your best work – which, in turn, can result in promotions in the corporate world or long-term business success in entrepreneurship.

At the same time, the relationship benefits the mentor, too, providing a way for them to feel heard and valued for their experience. The perspective provided by a mentor can elevate your career by helping you to be your best – if you’re willing to engage, listen, ask questions and cultivate the relationship over the long-term.

Source : Business News Daily.

Why Your Company Should Ditch On-Premises Software and Move to SaaS

By Andrew Martins, Writer

On-premises software has remained a go-to solution for years within the business technology space. Yet with the recent – albeit abrupt – switch to remote work for most American workers, those solutions have become less viable as entire systems have had to become nimbler in the age of COVID-19.

Newer cloud- and web-based solutions known as “software as a service” (SaaS) can give employees the tools they need wherever they are. With so much change already underway, could this be the time for your business to make the switch?

Here are some reasons to commit to this change, and what you should and shouldn’t do when migrating.

What is SaaS?

SaaS is an online service that delivers a software solution without the need to install an actual program on physical hardware. For example, rather than relying solely on the Microsoft Office suite that’s installed on your work laptop, Microsoft Office 365 provides the same functionality through most browsers for a monthly subscription fee. The former can be useless if that laptop is lost, stolen or inaccessible, while the latter can be accessed anywhere with a working internet connection.

For Jayson DeMers, founder and CEO of EmailAnalytics, SaaS and cloud-based solutions were already important in the modern business landscape. Having relied on them since the beginning of his company, he said he understood the importance of digitization in the wake of the pandemic.

“With the pandemic crisis, companies need to consolidate, conserve and focus resources on activities that ensure survival in these tough times,” he said. “That’s why it makes sense to let a SaaS vendor worry about back-end operations and maintenance, freeing up your team to focus on maximizing value from your software solution.”

If your business has gone full remote, you already understand DeMers’ point about needing to focus on survival. According to Diginomica, COVID-19 is likely to forever change business as we know it. As remote work becomes more normalized and digital conference meetings become commonplace, SaaS application deployment will gain increasing importance.

Why switching from legacy software to SaaS is a good move

Along with making it easier for you and your employees to access the software you need, SaaS cloud software can be easier to use than legacy on-premises software. That’s usually because these online, cloud computing-based business applications are quicker to implement, reducing the amount of time needed to get your team up and running.

For DeMers, the value proposition of SaaS largely deals with the fact that your company isn’t responsible for the software side of things; instead, the vendor handles everything. Further, these services update themselves. Having relied on such systems for his business from the start, DeMers thinks the technology has been a major boon to his company.

“The main benefit of SaaS is that all its systems are entirely managed by the vendor, including [the] database, servers, and all the other components that go into making SaaS work,” he said. “That enables me, as a user, to focus on just using the software and not having to worry about maintaining it, updating it, battling against viruses, hacks, or other system threats.”

SaaS also has the benefit of being cheaper in many cases. Purchasing business software licenses can cost thousands of dollars, even though you will likely need to upgrade to a newer version with a new cost associated with it every few years, and in some cases, pay an annual fee for tech support. If you subscribe to a service, you get the latest version of the software, as long as you maintain a subscription, and in most cases, tech support is included in your subscription.

“Using SaaS rather than on-premises legacy solutions will free up your team’s resources to focus on getting value or insights from your software, and shift away from maintaining, debugging, and handling back-end operations for your legacy solution,” said DeMers.

Why making the switch to SaaS may not be right for you

While there are plenty of reasons to immediately ditch your legacy software for a SaaS solution, there are some key issues that businesses should consider that might require them to continue using legacy software.

First and foremost is the need for a solid internet connection. If you live in one of the areas of the U.S. where internet connectivity is lacking, then you’re likely going to want to stick with legacy software. While SaaS is not usually resource-intensive, internet speeds can hamper a SaaS solution’s ability to communicate with the hosted data center.

Another major issue that could be a concern for some businesses is the fact that you could be putting your sensitive company data in another company’s data center. It’s with this in mind that DeMers suggests doing some homework before signing on the dotted line – especially when it comes to ensuring proper data security measures are being taken.

“You have to trust the vendor with all your data, and you have to rely on someone else’s team to fix security vulnerabilities and database/server issues if they affect you,” he said. “This can be frustrating if the vendor has poor customer service. This is one reason why good customer service is so critical for SaaS businesses.”

How to make the switch from on-premises software to SaaS

If you’re convinced that making the switch from on-premises software to SaaS is the right move for your business, there are things you can do to make the data migration process less of a headache. While the process may be different from one business to the next, here are some of the steps you should take:

  1. Copy your data. Since you likely won’t be relying on physical storage for the data you’ll be moving over to your SaaS solution, it’s important that you back up any relevant files. Your IT department or manager should have been regularly creating backups, so this may already be ready to go.
  2. Upload data to the cloud. After vetting your SaaS provider and making sure your data will be secure, upload whatever data you need for that application to the cloud. After sending the files, check the application to make sure everything uploaded correctly.
  3. Set up regular synchronization. Since your company will no longer be using on-premises software, you will need to make sure that whatever data needs to be accessed by multiple users can be accessed from anywhere. Ensuring that all of the necessary data is automatically synchronized with the application so any changes copy over for other users is important.
  4. Finish the migration of other tools. If you’re moving to an entirely SaaS setup, it’s important to make sure that the cloud solution and implementation functions properly. To that end, make sure everything you need to move over to the cloud service gets there. 

While these steps are all important, it should be noted that a strong SaaS provider will make data migration as painless as possible. Look for a service that can directly assist with the changeover or automate parts of the process for you.

Source : Business News Daily

7 Tips for Starting a Virtual Assistant Business

By Business News Daily, Sponsor

  • Virtual assistants are remote personal assistants that manage administrative tasks completely online.
  • VA firms aim to lower overhead costs for companies. Remote workers are usually hired at a reduced expense and can work flexible hours.
  • Starting a VA company will involve many of the same steps as launching any other business. Create a business plan, choose a business structure, develop a marketing plan, and research competitors.

Businesses of all sizes need administrative help, but having a full-time employee onsite can be cost-prohibitive. Enter virtual assistants (VAs), administrative professionals who offer a wide variety of services remotely, operating as their own small businesses.

Through technology like cloud collaboration software, videoconferences, project management apps and instant messaging, entrepreneurs who want to start a virtual assistant firm have all the tools they need to successfully work with business clients.

“The reasons for utilizing a VA firm have become more needs-driven, customized and service-oriented,” said Michelle Anastasio-Festi, CEO and founder of CT Virtual Assistance. “It’s gone beyond reducing expenses or needing more time, (and businesses are now) focusing on the bigger picture of how hiring a VA can help them achieve their business goals faster, or promote their brand or service.”

If you’re interested in taking advantage of this lucrative business opportunity and becoming a VA, here’s some expert advice on how to make it work. [See related story: 22 Online Business Ideas You Can Start Tomorrow]

1. Read, research and network.

Operating as a VA on your own can feel like you are all by yourself, but in fact, there are professional groups, online forums and books to support you in your business dream. By reading and researching what services a VA can perform, you can narrow down your own offerings. And by networking with other VAs, you can benefit from subcontracting work or advice from more established VAs.

“Most VAs are more than happy to help out someone who is new to the field. And even if they don’t have any subcontracting work, they may be able to refer you to someone who does,” said Julie Perrine, CAP-OM, MBTI Certified, with All Things Admin.

2. Develop a business plan.

As with any business, you need to develop a business plan before launching a VA company. A business plan is an outline of your company and how you plan to operate. The business plan acts as a timeline for your company. Also, if you plan to seek out loans or investors for the VA business, lenders will request a copy of your business plan.

3. Choose your business structure.

Structuring your business is a requirement before making your services public. There are multiple business structures available. According to the Small Business Administration, a sole proprietorship is ideal for low-risk business ventures or individuals who want to test the waters with their new company before formalizing plans. Additional structure options include corporations, LLC, and partnerships. All structures have tax advantages and disadvantages.

Before launch, check with your municipality about any licensing requirements you may need for your new business.   

4. Expand your skill set.

There’s a lot more to being a VA than helping with the tasks your client needs you to do. Having office experience will help you in your day-to-day duties, but as an independent business, you need to learn the ropes of how to run it.

“Working virtually means you must exercise great discipline,” said Tim Petree, senior vice president of BST Concierge. “You’re your own boss, (but) those corporate rules that once seemed to be a drag can save you from financial ruin when you’re the CEO or sole proprietor. If anything, you must now be conversant in all areas of business administration – sales, marketing, IT, customer service, project management, receivables, payables and compliance.”

5. Communicate clearly.

As with any type of virtual work, not being in the office for face-to-face interactions with your clients can present some difficulties if your or their communications are unclear. VAs perform many of the important day-to-day tasks that keep a business running, so knowing what’s required of you as a service provider is key to customer satisfaction.

6. Market your business.

Marketing is essential when developing a successful VA business. Keyword research will help you get started on a marketing plan for your company. Find out what keywords clients are using to find VA services. Tools like Moz are useful in researching keyword terms. Once you select your keywords, integrate them in all marketing materials for the VA business. Your marketing efforts should include a professional and user-friendly website. An optimized and well-designed website will attract new clients. Social media marketing should also be a part of your strategy for your VA venture.

7. Adapt to your clients’ needs.

As a VA and as a business owner, you’ll need to be able to deliver exactly what each client needs. It’s a good idea to determine the best structure for your service packages and pricing based on what your clients are looking for.

“A VA provides business owners with the opportunity to get exactly what they need, when they need it, like ordering from a menu,” Anastasio-Festi said. “Because most VAs offer a wide range of services to various industries, it becomes confusing as to who needs what most. [Our firm] is moving away from hourly retainers and more towards customizing individual monthly packages that are tailored to each client’s needs.”

Source : Business News Daily

Does My Company Own My Intellectual Property?

By Adam Uzialko, StaffJuly 9, 2020

  • In many cases, intellectual property (IP) created on behalf of a business in exchange for compensation is considered the property of the business that commissioned it.
  • The terms of a signed business agreement might stipulate who owns any intellectual property created on company time or using company equipment. Review all agreements carefully before signing.
  • Though intellectual property laws favor businesses, employees have rights. Consult with an attorney if you believe a business agreement you’ve signed violates state or federal law.
  • This article is for professionals and creatives who regularly develop intellectual property on behalf of businesses and need to know who owns the rights to their work.

Intellectual property rights are designed to protect various types of creative expression, but what happens when that creative expression occurs on company time or within the confines of an employment relationship? Do you own the ideas you come up with in the workplace? This guide will serve as an introduction to intellectual property rights in the workplace and what you can expect when it comes to retaining the rights to your creative labor.

What qualifies as intellectual property?

Before you can understand whether you own the intellectual property you develop in the workplace, it helps to define the term. 

“Intellectual property refers to an exclusive right to a particular form of creative expression,” said Omid Khalifeh, intellectual property attorney at Omni Legal Group. “This could be artistic expression as with copyrights, utilitarian and functional as with patents, or related to branding, like with trademarks.” 

Copyrights, patents and trademarks are mechanisms by which the owner of intellectual property can protect it from misuse or unauthorized replication. They are related, but each applies to specific types of intellectual property:

  • Copyrights: Copyrights technically exist the moment a work is created, but they are practically unenforceable unless you register your copyright with the U.S. Copyright Office. Copyright protections expire after the author’s lifetime plus 70 years (or 95 to 120 years, depending on the nature of the intellectual property). [Read related article: Copyright Infringement: Are You Stealing Intellectual Property?]
  • Patents: A patent protects an invention for a limited duration of time. They cover things like machines, manufactured goods, industrial processes and chemical compositions. A patent extends the exclusive rights to the owner of the intellectual property to produce, use and sell the invention.
  • Trademarks: Trademarks relate to company branding. Under common law, you can claim a trademark by placing a “TM” superscript at the end of your brand or product name. If you register your brand with the U.S. Patent and Trademark Office (USPTO), you may affix the encircled “R” symbol at the end of your brand or product name.

While copyrights, trademarks, and patents protect intellectual property from theft or misuse, they do you no good unless you are in fact the owner of the intellectual property. So, who owns the intellectual property you’ve created on company time, or using company tools? 

Key takeaway: Intellectual property refers to creative works, inventions and branding. To protect intellectual property, owners can file for copyrights, patents and trademarks.

Intellectual property rights in the workplace

During the workday, an employee might create a wide range of intellectual property. But who maintains ownership rights to that intellectual property: the employee or the employer?

“Within the scope of their employment, people may come up with many new ideas stemming from the demands of their job,” Khalifeh said. “A designer may make an ad poster or a new garment design, whereas an engineer may invent a new widget.” 

While those creations might have been entirely conceived of and developed by the individual employee, oftentimes, they are generally owned by the employer. According to William H. Honaker, an intellectual property attorney at Dickinson Wright, there are four types of workplace intellectual property that are most common.

“Intellectual property in the workplace is typically thought of as falling within four broad categories: patents, protecting inventions; copyrights, protecting creative works; trademarks, protecting a company’s reputation; and trade secrets, protecting what a business can keep secret,” he said.

“As a general rule, an employee might own patents or copyrights, but not trademarks or trade secrets,” Honaker added. “Trademarks and trade secrets depend on use and procedures that are tied to the employer, and don’t exist independently of the employer.” 

However, the exact nature of intellectual property rights in the workplace is largely dependent upon any agreements or contracts an employee signed as part of the onboarding process. Just because an employee might retain patent and copyright ownership doesn’t necessarily mean that is the case.

Key takeaway: Intellectual property rights in the workplace heavily favor employers. However, the terms of signed business agreements could influence who owns intellectual property.

What is an employee intellectual property agreement?

An employee agreement is usually signed when an employee is hired and joins a company. Often, these agreements include clauses that relate to intellectual property and its ownership. These clauses explain what rights a person has to any creative ideas they’ve created while at work, and what rights belong to their employer.

“Most businesses require employees to sign an employment agreement,” Honaker said. “These agreements often have provisions regarding the ownership of intellectual property created while employed. Typically, these require an employee to assign any business-related intellectual property to the business.”

This is known as IP assignment, and a written agreement, including an assignment clause, could transfer ownership rights to any intellectual property that would otherwise belong to the employee to the employer.

In most cases, employees are thought to forfeit the rights to intellectual property created for the employer in exchange for compensation in wages or salary. That means signing any boilerplate employee agreement likely forfeits your right to maintain ownership of intellectual property you create at work.

“Because it is widely accepted that employees are being compensated for their ideas as part of their salaries, they will have to be proactive if they wish to hold on to any of their intellectual property rights,” Khalifeh said. “This means negotiating rights ahead of time and making sure these are outlined in the terms of their employment agreements.”

Key takeaway: Many business agreements include a clause in which the employee forfeits rights to any intellectual property created on company time or using business-owned equipment.

What if there is no employee intellectual property agreement?

If you were not required to sign an employee agreement, or the documents you signed make no mention of intellectual property rights, patent and copyright ownership laws apply to those types of intellectual property created in the workplace, Honaker said.

“If there is no Employee Intellectual Property Agreement, or if the agreement is invalid under your state laws, then you have to look at the patent and copyright ownership laws,” he said. “Each of these will have different requirements.”

Copyrights

Copyright laws cover creative works, including written materials, photographs, videos, drawings and computer programs.

“The creator of a copyrighted work owns the copyright unless it’s a work for hire,” Honaker said. “A work for hire has two requirements: the creator is an employee of the business [not an independent contractor], and creating the work was within the scope of the employee’s job requirements.”

If both work-for-hire requirements apply to creative work you created in the workplace, your employer likely owns the intellectual property.

Patents

Patent laws protect inventions and are only relevant if the creator applied through the USPTO. The inventor (or inventors) is usually considered the owner(s); however, ownership, or at least certain rights, could still be reserved for the employer.

“The courts will typically require the inventor to assign their rights to the business if inventing was part of the inventor’s job requirements,” Honaker said. “If you were hired to invent, then it seems only fair that what you invent is owned by the business that pays you.  

“Even if the employer doesn’t get ownership, if the invention was made using the employer’s equipment and resources, the employer will typically be given at least a shop right,” Honaker added. “A shop right is a nonexclusive right to use the invention.”

Key takeaway: In the absence of an intellectual property agreement, state and federal laws apply. Consult with an attorney if you believe your intellectual property is being misused.

What rights do employees have to intellectual property in the workplace?

While it seems that employers have a great deal of power when it comes to intellectual property in the workplace, there are limits. Employee intellectual property agreements are influenced in part by state law, so noncompliant agreements are unlikely to hold up in court. Further, if the creation of new intellectual property does not pass the work-for-hire test and no legal agreement has been signed assigning those rights to the employer, then ownership is retained by the employee who created it.

“Employers need to remember that an employee using work equipment to create IP is not reason enough to claim the intellectual property,” said Reuben Yonatan, founder and CEO of GetVoIP. “So, if you employ a developer to create a system for you, but in the process [they] use the work computer and any other resource to create a social media platform that blows up, it does not mean you own any part of that social media platform.”

Although many intellectual property laws favor the employer, employees have rights. If you are concerned about an agreement you’ve signed with your employer, consult with an attorney to determine whether it is indeed valid under your state’s intellectual property laws. As an employer, you should always consult with your attorney when devising any employee intellectual property agreements to ensure you are abiding by state and federal law.

Key takeaway: Know your rights. Not all situations favor the employer when it comes to claiming ownership of intellectual property created in the workplace or with company resources.

Source : Business News Daily