Thursday, September 27, 2012

What To Think About As A Sweat Equity Partner

I have found an operating agreement is an absolute necessity for small enterprises, particularly LLC's with multiple members and similar partnerships.

The % of ownership can be determined by a financial contribution, or a donation of effort in the form of hours at zero cost to the company, carefully accounted at an agreed upon rate and yielding a resulting ownership share, or some other means of valuing an investment in the firm.

Yet a third factor to consider in specifying the ownership % is the long term role of each partner in the operation of the firm.

An operating agreement is a separate document, not controlled or required by the state or the federal government but very important to your company. It should be a simple, straightforward document you and your prospective partner(s) can draft yourselves, addressing such matters as % of ownership, how revenue will be distributed and other general matters, as well as who can commit the company in the form of credit cards, who signs checks on the company account and other administrative matters. Buying out a partner should also be covered as well as adding new members if the need arises down the road.

I have seen many enterprises fail or go through terrifically hard times due to lack of an operating agreement. The parties should sign it after a review by a lawyer. It should then be notarized and made an official part of the company file.

You can download a free, generic operating agreement with instructions from the second vertical Box Net cube in the left margin of the below site. You can feel free to borrow from the sample or supplement it as you see fit to make it your own. It is fairly comprehensive in order to cover most business situations and there may be elements of the example you feel are not necessary.

The role of the individual in the on-going operation of the company is a major factor to consider in the ownership equation as well as initial financial or labor contributions. The operating agreement process is the way to achieve equity and commitment among the parties.
Courtesy Of Kenneth Larson, SCORE Mentor

Tuesday, September 25, 2012

One of the Best Things you Can do for Your Employees – and for Yourself

Do you know most of us will live approximately 13 to 15 years past what has traditionally been considered retirement age? The U.S. Centers for Disease Control says the average American male lives to 76 and the average American woman to 80. Experts estimate we’ll need 70 to 90 percent of our preretirement income to maintain our current standard of living when we stop working. And yet few of us are saving enough for retirement.

Part of the problem is that according to the U.S. Small Business Administration, 72 percent of workers at small companies (companies with less than 100 employees) have no employer-sponsored retirement plan available to them. By starting a retirement savings plan, you will help your employees save for the future, help you attract and retain qualified employees and even gain significant tax advantages for your business and your employees. All while helping you secure your own retirement.

Starting a retirement savings plan can be relatively easy and inexpensive:
  • Today small businesses can offer a retirement plan for about what we pay per month for cable television – even if you have just a handful of employees.
  • Business owners can also take advantage of a tax credit for the costs of setting up a retirement plan. The credit equals 50 percent of the cost to set up and administer the plan up to a maximum of $500 per year for each of the first three years of the plan.
  • Employee contributions are deductible from the employer’s income and employee contributions (other than Roth contributions) are not taxed until distributed to the employee. Money in the plan grows tax-free.
  • A plan can be put in place in less than a week and will only require about an hour a month of on-line maintenance time. And you don’t have to set up an employee match unless you choose to do so.
Participation in a 401(k) plan continues to be one of the most efficient ways to help employees save for retirement. As you evaluate your company benefits this fall, it might just be time to consider a 401(k) plan for your business.

Monday, September 24, 2012

Mompreneur vs Professional Business Woman

Below are two different viewpoints on the difference between Mompreneur vs professional business woman.  Feel free to add your own thoughts as a comment .....


Mumpreneur must be a British thing, as when I Googled it most of the sites were .uk. Never heard the term here in the states and I find it a bit derogatory. I've owned a recruiting business for over twenty-five years and prior to that was a free-lance graphic designer before taking a job as a recruiter. I was a single mom and worked from home, and I would have been horrified to be singled out as a mumpreneur. I was as viable a solopreneur or freelancer as any man with or without children, a Professional Woman with clients, deadlines, meetings, billings and taxes owed.

If one runs a legitimate business, whatever that business is, and it is successful, turns a profit, and pays taxes to the government, then you are a Professional Woman. If you run a Cottage Industry, you are still a business woman, but it's a smaller endeavor, selling more one of a kinds, or handmade items to a smaller audience. But that is a legitimate business too.

I take umbrage with that term. Are the many women on mumpreneurs? I doubt they would see themselves that way. And that is a highly successful international site with handmade goods from all over the world from small firms, individuals or companies that often work out their homes. They see themselves as businesses.

A Professional Woman is known by her code of ethics, business practices, decorum and the ability to deliver on time and within budget what she promises. Just like any Professional Man. They are one and the same.

Where did this term originate and who is using it? Distasteful to me. As a woman I would be embarrassed to say it out loud. Demeaning.

Courtesy of Cheryl Roshak


I think it depends on who you ask- My site is called "Mompreneur Mogul".

It's not derogatory. It's not degrading.

Anyone who is a mother knows that the term is a total gift. Period.

Some women flip out about it - I think that's silly. ( of course that is my opinion I know other women get upset if you call them mommy, or in this case mompreneur- I don't.

And as far a gender discrimination I don't see how it applies in any way.

To me a Mompreneur is obviously a mother and she is a professional woman.

Even if she never had a business just being a mom would make her professional. Anyone who is not a mom should try it for 24 hours. Most would come out crying. Moms are professional believe me.

As a matter of fact I think it's funny at times that people who have racked up degrees and are in high positions in companies ( some not all) look down on a mother. Funny if it wasn't for theirs they wouldn't even be in that company.

It's one of the most challenging most rewarding jobs on the planet. Nothing compares really.

I've performed on stage in front of 40,000 people. I shook the hands of Steve Wynn. Chuck Schwab, Michael McDonald, Larry The Cable Guy and others. I've toured the world and been in the company of the elite and the most poor- I've written a book, been on tv, run my blog and business and I love my business however being a mom beats it all.

Simply put a Mompreneur is a woman with a business who also has children and she is profesional.

Oh and there is no shame in my name ;) None whatsoever-

Courtesy of Lisa Cash Hanson


I think mumpreneurs are defined as mothers with children who run a business, usually from home and this business is often web-based, allowing flexibility for childcare arrangements. In my experience of it, mumpreneurs also often create products and services for pregnancy, babies, children and childcare once they see the need for it after going through these stages themselves.

A professional woman may have her own business, but she is less likely to be based at home with children within this business, having opened her own offices, salons or consulting rooms If she does not have her own business, she is likely to have a senior role in a government or publicly-listed company.

The overlap is that they both work incredibly hard!  And happen to be women.