The Business Case For Diversity

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When Dian Griesel sits down for her weekly staff meetings at DGI Comm in New York City, she’s always grateful for the variety of the employees around her. “Our ages run from 25 to over 60,” says Griesel, president of the public relations firm. “We come from all races, walks of life, education and backgrounds. Each of our employees brings something unique to the table.”

She believes that since their “public” is diverse, so should the workforce be. “I can’t count how many times my staff and I have sat at a table to discuss a client crisis situation or a product launch and how invaluable it’s been to have all different viewpoints,” she says. “It benefits our firm yes, but more importantly it benefits our clients. We are ten steps ahead of them because we’ve already weighed every possible angle.”

Diversity has become a business imperative that affects the bottom line. A growing body of research shows that companies with a diverse blend of employees outperform their peers. Companies in the top quartile for gender or racial and ethnic diversity are 35% more likely to have financial returns above the national industry medians, according to a McKinsey study called Why Diversity Matters.

More Options For Customers

Another study, from the Harvard Kennedy School, made a clear case that diversity benefits startups. In the study, 500 business students were randomly assigned to 45 groups to start a venture. Teams with lower percentages of women had lower sales and lower profits than teams with a balanced gender mix. Profits increased as the share of women increased up to 50%, but then leveled out.

A study by Katherine Phillips, a professor at Kellogg, found that adding even one employee from a different background can get people out of their comfort zones and thinking differently about a situation.

Having diversity has kept DGI Comm fresh and edgier than if it didn’t have younger employees. Griesel says: “It gives us more options to present to our clients. We do have clients who come to us and ask us to target certain age groups and we are able to do that successfully.”

Entry-Level Diversity

The good news: Small businesses have a diverse ethnic and gender blend of entry level employees, according to a study by the Small Business Majority. About seven out of 10 small businesses have at least one female employee; a quarter have at least one Hispanic employee; 6% have at least one American Indian or Alaskan native employee; and 5% have at least one Asian or Pacific Islander employee.

That said, the picture wasn’t as rosy when it came to employees above the entry-level point. In that case, 35% of higher-level workers are women, 9% African-American, 8% Hispanic, 2% American Indian or Alaska natives, 1% Asian Pacific Islanders. However, nearly a third of small business owners in the survey plan to increase the diversity of their upper-level employees in the next few years.

How to Diversify

Rieva Lesonsky, writing in SmallBizDaily, provides three suggestions for diversifying a small-business workplace:

Find new sources of job candidates.

Reach out to people outside your general social circle and share job openings on sites or with organizations that cater to minority, female or disabled workers.

Encourage employees to recruit friends and acquaintances.

Diverse entry-level employees who reach out to others in their social circles will likely bring more diverse job candidates into your orbit.

Recruit outside your local area.

Since urban areas are often more diverse than rural or suburban locations, reach out to nearby cities.

Keep in mind there are also challenges to managing a diverse workforce. As Pennsylvania State University researchers note, “Managing diversity is more than simply acknowledging differences in people. It involves recognizing the value of differences, combating discrimination, and promoting inclusiveness.”

Employees must feel secure they have a chance to express their views and will be listened to. Employers need to be aware of their own personal biases, as well. It’s not necessarily a simple or easy process. However, small businesses that embrace diversity can potentially expect a rush of new creativity, productivity and a happier workforce.

Read This Before You Hire A PR Agency For Your Small Business

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A common mistake first-time business owners make is thinking a publicist, PR agency, or other media representation is a must to receive media attention. Because media relations can be time-consuming and expensive, it’s not for every business. But before you spend $4,000 or more per month to retain a publicist, here are five basic tactics for DIY media outreach to help get you started.

1. Define your PR goals, then make a “hit list”

Why do you want PR? Vague goals like “get more attention” or “to meet potential clients” are difficult to quantify.

Make specific, measurable goals, such as, “Appear as an expert contributor on two regional morning TV programs in the next six months,” or, “Speak at an upcoming industry trade show.”

Ask yourself why each opportunity would be important strategically for your business. Once your goals are clear, make a “hit list” of the media gatekeepers and tastemakers — reporters, producers, bloggers, etc. — who can make those things happen.

2. Focus on relationships, not immediate payoff

There’s a good chance you’re already consuming the media you’d like to have cover your business. If you’re not, you should be. Knowing the writers and publications before reaching out is key to building successful relationships. A writer’s beat and the kind of stories they write are important to understand so you don’t annoy them with unusable inquiries.

When you read, watch or listen to your favorite media, pay attention to the by-lines. Follow the writers and producers on Twitter. When you see a story you really enjoy, send a quick email or tweet letting the writer know you enjoyed it. That’s how relationships begin.

Once you’ve met a journalist (either in person or electronically), don’t hit them up for coverage right away. Instead, offer yourself up as an industry resource. For example, if you run a garage, offer to be available if the reporter has questions about self-driving cars. If you own a clothing boutique, offer up your services for any future, “what’s hot this season” trend stories. Instead of pitching yourself or your business as a story—you’re making yourself available to help a journalist.

If you’ve proven to be a valuable resource, it can be easier to share news about your company with your new-found journalist friend.

3. Look for smaller opportunities

Many business owners focus solely on TV and national media opportunities, which can make smaller press outlets easier to approach. Because smaller outlets are often local or regional in nature, most of them are considered highly trustworthy sources—meaning coverage from them could move the needle in your market.

Take a look at your hit list from Step 1. Now, try to increase it by adding smaller outlets. College alumni publications, local unions and industry associations and Chambers of Commerce, for example, need stories as well.

4. Embrace “the snowball effect”

The best thing about small press is that it can snowball into even bigger press.

Whenever you receive press, promoting it can cast a wider net and increase the possibility of additional coverage. Even national news media looks for stories in smaller outlets. So don’t scoff at an interview on a small blog, podcast, college newspaper or local news broadcast.

Sharing coverage on social media, linking to it on your website and promoting it to current clients not only increases your audience, it can provide opportunities for coverage the next time a reporter is looking for a story in your area.

5. Expand your definition of PR

Most business owners think of PR as media coverage by journalists, but that’s one very small part of a much larger picture. Some of the most important PR functions — that is, functions that help shape the perception of your business — may not involve the press at all.

Review sites like Yelp and Google, Deal sites like Groupon and social networks like Facebook can be critical to the perception of your business.

Don’t be afraid to ask satisfied customers for positive reviews on these sites and others. And create accounts to communicate directly with customers — and to respond publicly to any neutral or negative comments. Depending on your business, it’s very likely these tasks can be delegated to an employee. Just be sure to set guidelines for the tone and style that should be used when addressing customers.

PR can be a costly and time-consuming effort for business owners, so it’s important to decide if this is something you should do yourself or outsource. Whether or not you assign someone internally to manage PR or pay an agency to manage it for you, good PR can move the needle for your business.

3 Lies the Media Tells About Owning a Business

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Today’s media celebrates entrepreneurship — SXSW Interactive, Planet of the Apps, and nearly a dozen entrepreneur-focused reality shows — and can encourage many first-timers to start a small businesses without understanding what they’re getting themselves into. Soon, they may find themselves drowning in a sea of regulations, employees’ needs, and clients who aren’t paying invoices on time.

The good news is, even though small business ownership is tough, many agree the rewards are better than a traditional 9-to-5 job. Below are three misconceptions the media often promotes about small business ownership. This is how to deal if you found yourself believing the hype.

1. You’ll be your own boss.

While true on one level — there is no “boss” to answer to — on another level, this often-touted benefit of small business ownership couldn’t be further from the truth. When you start a small business, you essentially swap the reality of having one boss with the reality of having additional people to answer to.

A small list of people you’re accountable to can include lenders, investors, bankers and landlords – all of whom expect regular updates; customers, who can be as demanding as any traditional boss; regulators, who can multiply with your growth as a small-business; and your own employees.

But, here’s the flip side.

While there can be a lot of people holding you accountable, the excitement of running a small business can be like nothing else. When you find yourself overwhelmed by how many people need things from you, try to take a step back and look at what you’ve built. You’ve created a business that has become successful enough to impact the lives of all of these people.

When the demands of small business ownership become too demanding, take a break and prioritize your to-do list. Delegate what you can, and ask for extensions where possible. Remember: although it sometimes doesn’t feel like it, the overwhelming majority of people you’re accountable to are on your team. When you need help, ask for it. You might be surprised by how those around you are willing to help lessen your burden.

2. You’ll have greater work/life balance.

As the saying goes, “Entrepreneurs are the only people willing to work 80 hours a week to avoid working 40 hours a week.” It’s a fitting description of the life of a small-business owner, where work never really seems to end. Even late at night, there’s always something else to do: answer emails, address inventory concerns or reconcile accounts. Because of the workload, many small business owners can attest to going years without a vacation.

Now for the good news.

While you may end up working more hours when you own your own business, if you love what you do, it may not feel like work. Although you might have a less traditional schedule as a small business owner, there are flexibilities in other ways. You may be able to mix business with pleasure — for example, a working vacation, or research that interests you that could also be a business deduction. Instead of thinking about the quantity of time away from work, consider the quality of all of your time and how entrepreneurship can make all of your time more fulfilling.

3. It’s a great way to get rich.

There’s no quicker reality check on this myth than doing taxes at the end of the year. While success stories make compelling viewing and some small business owners do become wealthy, the vast majority of businesses don’t ever hit $1 million per year in revenue, let alone profit.

Oxford University affiliate 80,000 Hours reports that 50% of entrepreneurs make less than they did (or would have) as salaried workers. In fact, many business owners end up making less than they did as employees, often for more hours worked, and with considerably fewer benefits. Only about 30% earn more.

You may not get rich, but…

Although there may not be a pot of gold at the end of the rainbow, there can be a comfortable life spent doing something you love. Investing in an accountant you trust who specializes in helping entrepreneurs can be key to a successful life as a small business owner.

Being a small business owner isn’t easy, but there are often silver-lined flip sides to every challenge. And although some days may not feel like what you bargained for, take comfort in the fact that most other small business owners are facing the same challenges you are…despite what you may see on flashy reality shows or hear on trendy podcasts.

10 CEOs and Founders Share the Best Advice They’ve Ever Received

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Business owners sometimes wish they could go back and give advice to their younger selves. Some lessons, although valuable, can be difficult for founders to have to learn the hard way. Below, 10 CEOs and founders running multi-million dollar companies share the best advice they’ve ever received.

1. Resist the Urge to Compare Yourself to Anyone Else

Daisy Jing, founder of skincare Banish, warns, “Don’t compare yourself to other’s highlight reels … put yourself heads down on your business, and focus on putting one foot in front of the other. Set daily and weekly goals for yourself and keep your eyes on the prize. Before long, you’ll be a lot further than you’d ever thought possible.”

2. Keep Your Priorities Straight

Jonathan Long, founder of digital marketing agency Market Domination Media, says, “Business opportunities will always be there, but your family and friends will not. Be dedicated to your business, but don’t let it pull all of your time away from the people that matter to you.” He adds, “Deep down I know this, but sometimes I get so wrapped up in a business, especially if it’s new, that I have to circle back around to this advice. I think it’s something all entrepreneurs have to be reminded of at some point.”

3. Don’t Look For A Series Of Quick Fixes

Sarah Schupp, founder of the parent-focused, on-campus resource UniversityParent, says, “There’s no such thing as a silver bullet. It’s such a cliché, but I often believe that something new—a new client, new software, a new employee—will create an overnight impact, and then I feel disappointed when the new thing doesn’t overwhelmingly exceed my expectations. Instead, I remind myself of Jim Collins’ advice in Good to Great that ‘Success comes from many tiny incremental pushes in the right direction.'”

4. Be Leery Of Offering Up Equity Early On

Kyle Goguen, founder and CEO of online pet retailer Pawstruck, warns, “Giving up equity early on can be a big mistake. Obviously this advice varies depending on what type of business you are in and your goals; but in general, avoid handing it over in lieu of money. Finance your business in a different way and be confident in yourself that you’ll make your new business a success. Years from now, you’ll be kicking yourself for giving up a portion of your business.”

5. Invest In Your Employees For Maximum Return

Kate Hancock, founder of OC Facial Care Center spa, says, “Get to know your employees on a personal level. People will do anything for you if you get to know [them] and connect [with them] on a personal level.”

6. Know When Good Enough Is Good Enough

Rebecca Devaney, CEO of innovation agency Hunter Creative Labs, says, “There is [an] architecture term, ‘satisfice,’ a combination of ‘satisfy,’ and ‘suffice,’ that essentially breaks down to 80% of the perfect solution is the optimal solution. In other words, you can spend your life getting something ‘perfect,’ or you can get it out there, get feedback, and iterate then. Lives are wasted in the pursuit of perfection, rather than the ugly truth of just getting it done.”

7. Put Your Money Where Your Business Is

Kenny Nguyen, CEO of creative agency Three Sixty Eight, says, “The best advice I’ve ever received is to always pay for your own product. If you can’t do that, then you haven’t built something you’ve loved enough. This advice has led me to always buy tickets full-price at events we throw.”

8. Take Care Of The Tough Stuff First

Laura Mignott, co-founder of NYC-based agency Digital Flash, says, “Take your medicine. Do all the tough stuff first. Don’t put it off because it’s uncomfortable.” If you find yourself making to-do lists padded with easy items just for the satisfaction of crossing things off, read this paragraph again!

9. Know Your Own Secret Sauce

Chris Van Dusen, founder and CEO of digital conversion company Parcon Media, says, “Really understand what makes your product/service/company different and double down on that. Your UVP (unique value proposition) will be what truly defines you.”

10. Put Your Ego Aside When Hiring Staff

Matt Cheuvront, founder and CEO of branding agency Proof Branding, says, “Hire people that are smarter than you. While it’s tempting to hire people that you think you can mold and shape to be your perfect employee, there is great value in hiring talented professionals who will challenge and push both you and your team to work harder, better, and more creatively.”

Beyond SPAM: How to Make Email Marketing Work for You

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SPAM has a bad reputation with consumers, who think of it as the “junk mail” of the digital world. However, businesses have long made commercial emails work for them. They convince customers to subscribe, buy, or just learn more about the products or services they’re selling.

While staying within the restrictions of the CAN-SPAM Act, what can your business do to effectively reach out to new customers? With the average consumer receiving approximately 122 emails per day in 2015, it’s important to realize that many emails are never opened. Even if recipients do open your message, you risk being quickly discarded if you don’t capture their attention right away. Here are a few ways you can adjust your email marketing strategies for better results.

Informational

This type of email exists solely for the purpose of conveying information to a customer. It could be a new service announcement, lifestyle information like a recipe or helpful tips from your experts. Maybe its a newsletter that informs your customers of your business’s recent activities. Visuals are highly effective in informational emails. Not only is a picture worth 1,000 words, but a reader is also more likely to remember information if it contains visuals. The human brain processes visuals 60,000 times faster than text, according to research, so if you want to make sure your message connects, images are the way to go.

Promotional

Though you will share information about your offerings, most of your marketing campaigns will be promotional in nature. The emails you send letting customers know about an upcoming event, a new product or service, or an available discount are always geared toward conversions. Today’s effective promotional emails are personalized based on data about a customer’s preferences, demographics, or previous interactions with your brand. Time them in a way that makes recipients likely to open them with a subject line that grabs a reader’s attention.

Transactional

Customers trigger transactional emails by some action on their part. For example, he or she signed up for a subscription or purchased a product from your website. At this point they expect a confirmation email. Despite the business-first nature of these emails, they provide an opportunity to increase business. For your purchase and shipment confirmations, you can add a coupon good for a future purchase; or an invitation to subscribe to your email list. You can also build in social sharing buttons to encourage your customers to spread the word on social media. Many customers will bypass that section of the email to focus on the information they need. Therefore it’s important to make it as eye-catching as possible while still maintaining your message’s clean, professional layout.

Email marketing and the laws that govern it will always be evolving. Technology creates new ways to connect with consumers. Data analytics and personalization make it easier to directly connect with recipients, increasing the chances that they’ll take action on the information you send.

How Spam Could Put You Out of Business: 9 Ways You May Unknowingly Be Breaking Email Laws

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Email marketing is a great way to build a business – or lose one, if you run afoul of the CAN-SPAM law. This regulation doesn’t just cover the proper use of bulk mail, as you might imagine from its name; but, “Any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service.”

This means the next time you send out an email message to former customers about a new product line, its a good idea to review the rules for commercial email. On its site, the FTC warns that, “Each separate email in violation of the CAN-SPAM Act is subject to penalties of up to $40,654.”

Here are nine missteps that can cause small business owners to run afoul of the CAN-SPAM law:

Draw Customers in With a Fake Subject Line.

A subject line that says “You’re a Winner” might get more clicks, but you’re in trouble if the message doesn’t reflect the content of the message. The Federal Trade Commission recently brought suit against a company that sent emails designed to give the impression of a brief note from a friend. The emails read “Hi! CNN says this is one of the best [link]” and “Hi! Have you already seen it? [link].” Even ignoring subtleties can get you in trouble. For example, your subject line can’t suggest you are offering a 75% off coupon if you’re only giving 10% off.

Keep Your Identity Secret.

Sure, a customer might be more likely to open an email they think is from their uncle rather than an ad. However, your “From,” “To,” and “Reply to” elements need to accurately reflect who you are – this includes the person or business sending the message, as well as the domain name and subject line.

Hide the Fact Your Email is an Ad.

You don’t need to label your message “an advertisement,” but you have to come up with a way to communicate
the message is selling something. A “brought to you by” at the
close of the email is often considered sufficient, according to the marketing firm Comm100.

Soft Peddle the Sex.

In the case of commercial email that contains sexually oriented material, the CAN-SPAM Act’s Adult Labeling Rule requires the phrase “SEXUALLY-EXPLICIT” to appear in all caps as the first 19 characters in the subject line.

Don’t Tell Anyone Your Physical Location.

Listing a physical address is not only a way to gain recipients’ trust – it’s a legal requirement of CAN-SPAM. You can use a street address, a registered post office box or private mailbox you’ve registered with a commercial mail receiving agency established under Postal Service regulations.

Ignore Requests For Opt-Outs.

Emails can be a lot like love: If someone wants to leave, let them go; if it’s meant to happen, they’ll return. Your email must have a conspicuous notice of how to opt-out that the average person can understand. You can include a link to a menu that allows a customer to opt out of some of your offerings. But you must also give them a way of opting out of everything.

Drag Your Feet On Opt-Outs.

After you send any message, the opt-out mechanism must work for at least 30 days. And you must honor the opt-out request within 10 days. You can’t charge a fee, can’t ask for any information beyond their email address, and you can’t ask them to do anything other than send a single email or visit a single web page.

Don’t Monitor if Your Email Vendor is Following the Law.

You can’t contract your legal responsibilities away to a third party. This is where many small business get in trouble. According to the FTC, when it comes to email law, both the vendor and the client can be found at fault.

Forget About the Law if Customers Have Already Given Consent to Contact Them.

While this consent eliminates the need to identify your email as an ad or solicitation, all other components of the act remain in force.

When you think about it, CAN-SPAM is just about respecting your customers. And that can lead to more sales – and can help you avoid fines, or worse, for breaking the nine rules.

This Millennial helped Bootstrap an Entire Winery

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While studying wine and viticulture at California Polytechnic State University, Chip Forsythe started making wine in trashcans in his backyard. He then generated his first wine sales by hocking the wine throughout San Luis Obispo, CA. Now, as one of the founders of Rebel Coast Winery, he co-owns a successful wine brand that won more than 10 competition medals last year.

According to Forsythe, Rebel Coast now sells more product in one day than their entire first year of business. But, like many small business owners trying to get a new brand off the ground, it wasn’t always that way.

Audience-centric branding

Rebel Coast stands out in wine stores due to their unique brand voice, geared toward 20- and 30-something wine drinkers.

“If you take away the romance of owning a winery, you are selling a commodity in a very competitive market, so standing out on the shelf is very important,” Forsythe says. “Our wines look like no other wines out there, and that differentiates us right away.”The labels stand out against more traditional wine brands, with unique names like “Reckless Love” (named after a response to a text Forsythe sent to former girlfriends, asking for a couple words that would describe him) and Cloud Colony (a marijuana-infused Sauvignon Blanc). Additionally, Rebel Coast appeals to the crowd by highlighting their brand personality on Instagram. They include raucous wine parties, silly printed suits, road trips via a bright yellow, custom-printed VW van and shenanigans.

Bootstrapping and cash flow

“When we first started I was stressing out hard about cash flow,” says Forsythe. “Bills were piling up and I was venting about it to my dad. I will never forget what he said: ‘Chip, revenue will solve all your problems.’ That stuck with me, and every hire we made from then on had to bring in revenue somehow, someway.”

Unlike many young wine owners, Forsythe’s parents didn’t already own a winery or a bank account that could help him get his winery started. So, he started small, which allowed him to focus on staying out of debt and quickly testing products and adapting to the market. To get through the tough start-up phase, Forsythe learned how to cut corners, so he could keep his small business in the green and avoid failing.

“We — no joke — started living in my brother’s garage to save on rent; and kept the team living together from then on,” says Forsythe. “We have run out of money tons of times, but money has never been the motivator. So when the bank account is dry we all just get bunk beds, figure out what everyone’s rent is and get skinnier.”

Forsyth focused on efficient hires when bootstrapping his business. One way was to hire a commission-only sales team since he couldn’t afford to pay full-time salaries to 17 salespeople. Instead, he promised double the industry standard in commission, but no salary. That way as the wine sales grew, he could pay his sales team.

Managing cash flow for growth

Today, Forsythe is more experienced handling cash flow gaps, but bringing on the right support team and learning better to manage finances has paid off.

“Transparency with the team is how I manage cash gaps,” says Forsythe. “Every week at our all hands meeting, I go over what is in the bank, and where it is going. Predicting gaps is essential. At first, when gaps would hit, we would stress out and see who was able to miss payroll that week. It’s not ideal, but that is where a solid team comes in. We all had to pull together to keep the company up.”

Since being founded in 2013, Rebel Coast has doubled revenue each year, and according to the Huffington Post, Rebel Coast Winery is now, “Valued at over $5M and distributed in 36 states.”

Win New Customers Using FOMO

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Fear of missing out (FOMO) is nothing new. For decades, people have attended parties and other gatherings solely out of fear that if they don’t, something exciting will happen and they’ll regret not being there. However, today’s constant online connectivity can make consumers more aware of events taking place.  As a result, the term FOMO has made its way into the dictionary, becoming an accepted part of English vernacular.

For businesses, FOMO has opened up new marketing possibilities. Brands are gradually learning to capitalize on FOMO by creating campaigns showing how customers who aren’t using a particular product or service might be missing out.  Large corporations like Netflix and JetBlue have learned to appeal to consumers’ FOMO in national ads. However on a lower-profile level, companies use FOMO every day. Here are a few ways your small business can incorporate FOMO into your marketing messages.

Time-Sensitive Offers

A ticking clock activates FOMO on a basic level by letting customers know about something they can only take advantage of right now. When an offer has an expiration date attached to it, interested customers feel more compelled to take action. If they’re still on the fence about taking action, the fact that the offer will soon disappear could provide just the incentive needed. Brands often do this through their email marketing messages.  However, you can also put it to work in your social media posts about your special discounts and offers.

Visual Marketing

One of the best ways to bring an element of FOMO to your campaigns is through visuals. Brands create ads showing people having a great time using their product or spending time in their establishment. This can easily be done through your social media posts and email messages, telling an ongoing story about the great experiences customers are having by doing business with you. In the end, a subset of interested consumers will want to be part of that fun.

Exclusivity

At one time, “VIP members” were customers who spent a certain amount or lived at certain income levels. Social media has made it easier for businesses to portray exclusivity to the groups that are most loyal to them. When you offer a deal to your Facebook followers, for instance, those who aren’t a part of the group will fear they’re missing something.  Often times, those feeling left out will begin to follow you as well.   Existing members will likely continue to stay, since leaving will mean giving up those members-only deals.

Encourage Sharing

When you post something on social media, you’re often limiting your messages to those who already know about your brand. The key to growing your audience is to find a way to get the word to new customers. One of the best ways to do that is by encouraging your existing customers to share your messages. Successful brands often do this through interacting directly with fans on social media.  One great example is utilizing incentives such as contests, where customers share their own posts with a specific hashtag to be eligible. There are other methods, as well.  Some of these include making it as easy as possible to share your blog posts, online articles, and social media messages across multiple platforms.

Consumers may fear missing out, but brands can help by providing timely interactions that make clients feel included. With the right marketing techniques, businesses can generate a sense of urgency in customers that will encourage them to take action now, rather than sitting on the decision for a while.

Hiring Seasonal Employees

3 Things You Need to Know About Hiring Seasonal Employees

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Warmer weather isn’t the only thing to look forward to as winter draws to a close. For many small businesses, the spring and summer months represent peak sales seasons. If last year’s seasonal rush left you breathless, hiring seasonal employees can help ease some of the pressure of keeping up with customer demand. If you’ve never hired seasonal employees before, there are some important issues to keep in mind.

1. Federal and state employment laws still apply

Legally, seasonal employees are entitled to the same rights and protections as regular employees. That includes the right to work in a safe environment and to not be subject to discriminatory practices or harassment. Under the Fair Labor Standards Act (FLSA), you’re required to pay seasonal employees at least minimum wage, plus overtime if they work more than 40 hours per week.

Under the FLSA, small businesses have to extend benefits required by law to seasonal employees – including worker’s compensation coverage – unless your state grants an exception for seasonal hires. You are responsible for withholding Social Security and Medicare taxes from their wages and paying in a matching amount on their behalf. In general, seasonal employees are subject to the same tax withholding rules as other employees.

2. Special rules apply to hiring minors

Approximately 23.1 million 16 to 24-year-olds joined the labor force in the summer of 2016, according to the Bureau of Labor Statistics.  Hospitality and retail sectors employ nearly half of them. If you’re thinking of hiring teens to wash dishes at your restaurant or man the cash register at the beach shop, there are certain legal guidelines you have to observe.

For example, federal law doesn’t require teens to have a work permit but some states do. Sixteen is the federal minimum age requirement for most types of non-farm work. Teens who are 16 and 17-year-olds can work unlimited hours. They can’t, however, be employed in certain occupations that are deemed hazardous by the federal Labor Law Guide.

Teens aged 14 and 15 years old can be employed outside school hours with certain conditions. For example, they can’t work more than three hours on a school day or 18 hours in a school week. They can only work between the hours of 7 a.m. to 7 p.m. Evening hours extend to 9 p.m. from June 1st through Labor Day. There are additional restrictions on the types of work that younger teens can do.

3. Rules for hiring temps

A temp agency can be a good resource for hiring seasonal employees; but it adds another dimension to the hiring process. Legally, there’s a distinction between temp workers and employees, including seasonal employees. While they’re still protected under federal equal opportunity and labor laws, you’re not required to extend benefits like health insurance or retirement benefits to temps.

Taxation also works differently with temps, depending on how you hire them. A temp hired through a staffing agency is technically considered their employee. The staffing agency is responsible for issuing their paycheck and withholding the necessary amount of taxes. If you’re hiring temporary workers directly, on the other hand, you would bear the burden of withholding and paying Social Security and Medicare taxes.

One thing you may have to be careful with is when a temporary worker strays into permatemp territory. A permatemp is someone who works for you over an extended period of time. They do the same type of work as regular employees. Depending on the size of your business and how long a permatemp is employed, you may have to grant them limited benefits with regard to things like access to a retirement plan or sick leave. Check your State Department of Labor for details.

Don’t skimp on training seasonal or temporary workers

Just because you’re hiring seasonal employees for only a few months, doesn’t mean you can put less time into their training. As you’re putting together your seasonal budget, you should be leaving room for the added cost of getting new hires up to speed. Properly trained employees, whether they be seasonal or full-time, can yield a solid return on investment if they’re helping drive sales during the seasonal months. Investing in their training can pay even more dividends, particularly if they work for your business year after year. It saves you the time and money of having to bring new seasonal staff on-board.

Building a Socially Responsible, Organic Retail Food Brand

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Rosé, sangria, cider, chai tea, strawberry daiquiri, rum and pina colada …

Do those flavors incite images of a high-end wine bar, a cozy coffee shop or a beach bar in the tropics? Guess again. Those are just some of the unique flavors Oscar William’s Gourmet Cotton Candy spins onto paper cones for weddings, fundraisers, corporate events and other gatherings.

Who they are

Oscar William’s is a family owned and run business, started in 2013 by Tasha Holland-Kornegay. However, the idea to sell cotton candy in unique and unusual flavors came from Holland-Kornegay’s 14-year-old son, Kyree. Her husband designed the small business’s name, logo, and signature outfits. Today, the family still works to develop new flavors. They include chili pepper, root beer float and banana pudding, and they travel to sell their cotton candy for their community.

In the beginning, Holland-Kornegay didn’t have a plan or a budget. She just wanted to raise whatever funds she could for her nonprofit, Partners Against Sexually Transmitted Diseases (PASTD).

“During my graduate studies, I worked at the American Sexual Health Association, answering questions on the national STD/HIV hotline,” says Holland-Kornegay. “I began to realize the seriousness, and alarming rate of the HIV/AIDS epidemic within countless communities throughout North Carolina. I was wracking my brain one day on trying to figure out ways to raise funding for HIV/AIDS awareness after writing grant [proposal] after grant [proposal] with little success.

How they did it

She launched the cotton candy company with less than the $1,000 she had in the couple’s bank account. For the first few years Oscar William’s was just breaking even. But, thanks to guerrilla marketing and social media, their business has now grown to becoming profitable. They still give 10 percent of the profits they make to PASTD.

Learning to market Oscar William’s was enjoyable, says Holland-Kornegay, and community was key. If it weren’t for the community she built around her brand, she says, the company wouldn’t be as successful they are today.

“Hitting the streets, we went out and offered the product to the public. Lots of networking; sending out emails to let others know about us,” she says. “[We] created a buzz in the neighborhood and offered lots of sampling.”

In addition to local area events and promotions, Holland-Kornegay built a group of followers on Facebook. Oscar Willam’s leverages it to recap events, give fan shout-outs and survey new cotton candy flavors.

Facebook took notice and included Oscar Willam’s as part of their Facebook Stories series.

“Our business has a community business feel,” says Holland-Kornegay. “The people invested in our mission and our product. My advice for other entrepreneurs is to make sure your customers feel connected, share your stories with them, and let them in on the process. Let the community grow with you and your business.”

Their cotton candy business is profitable now, but it took the Holland-Kornegay family persistence, patience and diligence to grow into what they are now. “You can be scared, but you can’t let fear hold you back,” says Holland-Kornegay. “Take a deep breath and DO IT!”

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