Constructive Praise is Important Too

54642287The art of giving constructive criticism is a well known management concept.  The skill of giving and receiving critical feedback is an important one for all managers to learn.  If handled appropriately, by the person giving it and the person receiving it, a critique can result in professional and personal growth for both of the people involved in the discussion.

There’s an equally important skill that’s rarely talked about and commonly misunderstood.  The ability to give productive praise is as important as the ability to give productive critical feedback.  But, unfortunately and erroneously, the knack of giving constructive praise is viewed as easier and more natural to do.  Therefore, many people believe it doesn’t need to be learned. 

They think – What’s there to learn, don’t you just tell someone they’re doing a good job and move on?  The answer is an emphatic “No”.  People rarely respond to and rarely learn anything from a generic “good job”.  To be useful meaningful praise should follow the same guidelines as meaningful criticism.

Be timely.  Highlight the here and now.  Focus your praise on specific behaviors which have happened very recently, ideally in the last day or two.   

Neal was confused when Sam, the owner of the company, said, “Thanks for your hard work”.  He thought Sam was being sarcastic because it was a very light work week.  When he realized it was 2 weeks ago (when the whole shop worked hard to fill a large order) that he was being thanked for Neal perceived the praise as being “a day late and a dollar short”.  The praise only strengthened Neal’s opinion that Sam was out of touch with the daily operations.

Focus on behaviors.  Specifically refer to what the person did or does.  Describe what you have seen and think about his behavior. Use “I” statements and focus on behaviors you want him to continue doing, which reinforces positive actions

Paul was diligently putting in long hours for a new a client.  His manager Jill stopped by his office and praised him for his work.  She specifically cited the weekend hours he was putting in and how satisfied she was with the quality of the work he was producing.  Paul was gratified to see that someone was paying attention and felt she “was interested” in his success.

Be specific.  Be ready and able to discuss the behaviors specifically.  Praise that’s too general is often seen as insincere or of little value.

Dawn’s boss Ed thanked her for her contribution to a presentation which helped secure a large contract.  She had used new techniques for the graphics and was eager to hear about the reaction to them.  She asked for specific feedback to gauge what might work for future presentations.  It quickly became clear Ed didn’t know what her contribution was and that he had paid little attention to the presentation.  Dawn saw his praise as “dishonest and worthless”.

When done correctly, constructive praise is often more effective in motivating people than constructive criticism.  Successful managers learn how to use both to improve relationships and productivity.  A few well-chosen, specific and timely words of praise have been known to make the difference between a good day and a bad day for many people. 


The State of the U.S. Economy and other news

64002400Depending on whom you ask, the economy of the United States is a hot topic for any business owner, or analyst willing to delve into it.  For Ohio small business owners the health of the state’s economy is always an important part, and the changes that can affect their business are always a hot issue.  Tax changes, especially changes that affect them particularly are viewed carefully by them and are not always welcomed. For news about the state of the U.S economy, follow the links below.


Ohio’s major chambers of commerce rap John Kasich’s tax plan as divisive and bad for business

COLUMBUS, Ohio — In a letter to Gov. John Kasich, nine key chambers of commerce from around the state wrote that his tax reform proposals will shift tax burdens, cause friction and hurt businesses.

The chambers, while pledging to work with Kasich and legislative leaders in the future, said they don’t believe Kasich’s tax proposal will help to bolster Ohio’s economy.

“The proposed plan does not look to create greater efficiency within government in order to support tax cuts,” they wrote in their letter to Kasich and the leaders of the Ohio House and Senate. “Instead, this plan shifts the tax burden from one group to another, pitting different types and sizes of businesses and individuals seemingly against each other while government spending continues to grow.”


Has American Business Lost Its Mojo?

Over the past three decades, the American economy has become less vigorous. An extensive body of evidence shows that the public focus on the success of high-tech companies like Apple and Google masks an overall downward trend in key measures of business vitality.

“Business deaths now exceed business births for the first time in the thirty-plus year history of our data,” note Ian Hathaway and Robert E. Litan, economists at the Brookings Institution, in a May 2014 essay, “Declining Business Dynamism in the United States.”

There is widespread support for their assertion. Jim Clifton, chairman and C.E.O. of Gallup, wrote in a January 2015 essay, “American Entrepreneurship: Dead or Alive?”:

Until 2008, start-ups outpaced business failures by about 100,000 a year. But in the past six years, that number has suddenly turned upside down. There has been an underground earthquake.


The Cleveland Flea: Why sellers are sold on it 

CLEVELAND, Ohio — The Cleveland Flea started two years ago with 40 businesses participating. On April 11, when the Flea starts its outdoor season, about 160 businesses will be selling. And Flea organizers say there’s a long wait list to join the party. I posed the following three questions to a handful of Flea vendors:

*How has participating in the Flea changed your business?

*What’s the best part of the Flea?

*What do you hope to see for the Flea in the future?

And here is what they said:

What they sell: Specialists in interior design, estate sales, antiques, mid-century modern, gifts and things


The Legalization of Marijuana in Ohio and Other News

business (10)Legalization of Marijuana raises different views and opinions depending on whom you ask.  Some argue that the legalization of marijuana will boost the local economy by the tax revenue the state will collect.  The prohibition enforcement costs the state will save by legalizing marijuana are in the millions according to some research.  The incarcerations due to marijuana related charges cost the prisons $1 billion dollars a year.  The savings and tax revenue that legalization will save the state are in the billions, so what are the cons for this issue?

Follow the links below for more news happening around Ohio.


Petition Wants To Make Ohio The Fifth State To Legalize Marijuana

A group in Ohio wants the state to join Colorado, Washington, Oregon and Alaska in the legal recreational marijuana club, with a new petition to amend the state’s constitution.

The petition from ResponsibleOhio must collect 300,000 signatures before the amendment making marijuana legal medically and for recreational use could be put to a vote in November, reportsCNNMoney.

The group is made up of investors from several companies who want the state to allow residents 21 and older to possess up to an ounce of pot for personal use and allow doctors to prescribe marijuana for some medical conditions. Residents could also grow a limited amount of cannabis plants at home.


Pew study finds auto title loans as harmful as payday loans

CLEVELAND, Ohio — Title loans are just as toxic as their payday loan cousins, according to a new report from Pew Charitable Trusts.

“They fail to work as advertised. They’re overwhelmingly unaffordable,” said Nick Bourke, director of Pew’s small-dollar loans project.

Like payday loans, auto title loans are marked by triple-digit interest rates and balloon payments that make them hard to pay off.

The Pew study sheds light on auto title lending ahead of a field hearing Thursday in which the Consumer Financial Protection Bureau is expected to map out a rule that could cover not only payday lending but other high-cost small loans.


Ted Cruz: Small business are going out of business ‘in record numbers’

Republican Sen. Ted Cruz became the first big-name politician to announce a 2016 presidential bid during an address at Liberty University in Lynchburg, Va.

Cruz, of Texas, asked the audience to “imagine” (a word he used 38 times) what he believed a conservative administration could accomplish.

“Think just how different the world would be. Imagine instead of economic stagnation, booming economic growth,” Cruz said. “Instead of small businesses going out of business in record numbers, imagine small businesses growing and prospering. Imagine young people coming out of school with four, five, six job offers.”


Tax Breaks For Small Business Owners and other News

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Starting a business requires an entrepreneur to wear many hats right from the onset.  The demands on your time are many, and developing your business plan and hiring the right people are time consuming tasks that are very serious, and can play a devastating role if not done properly.  Hiring a business coach to see you through the developing stages of a business plan, plan your goals and time stages to achieve those goals, and developing a strategic plan that will produce success for your business is a must every business should have.


5 Tax Breaks Overlooked By Small Business Owners

For the small business owner, tax season can be stressful, and the prospect of shelling out a load of money to the government is not exciting. That’s why small business owners love tax benefits. Here are 5 tax benefits that are often overlooked by small business owners that can save your business money.

Please consult your tax professional before following any of the suggestions below. If you do your taxes yourself, there is a resource which compares the online offerings of TurboTax, TaxAct, and HR Block.

1. Have Lunch Meetings

If you often buy lunch (eat-in or take-out) while you are working, you might be able to deduct 50% of meal expenses. If you and your business partners or employees have meetings, consider having meetings over lunch. As long as the dining expenses are reasonable, you are allowed to deduct 50% of meal costs when eating with business partners and employees while conducting business operations. If you buy lunch every day and spend around $8, you can deduct $4. If you do the math, that amounts to over $1000 a year in claimable deductions ($4/day x 5 days x 52 weeks).


Small business: National ombudsman helps small businesses address concerns about federal regulators

Small-business owners turn to Brian Castro when they need help collecting payments from federal contractors, are concerned about excessive fines or think a regulation is too burdensome.

Since August 2013, Castro, a Duke University law school alumnus, has led a little-known program that advocates for small businesses at the federal level. Castro is the national ombudsman and assistant administrator for Regulatory Enforcement Fairness at the U.S. Small Business Administration.

Last fiscal year, which ended Sept. 30, the office received 430 formal jurisdictional complaints and thousands of inquires, Castro said.

“We offer an informal avenue, a channel for an expedited resolution,” that is separate and apart but in addition to a company taking their concerns to court, often a long and expensive process, Castro said. “Our services are already paid for with the taxpayers’ dollars and very often are resolved or obtained within 30 to 60 days.”

Castro’s office employs seven and offers four tools to help small-business owners, nonprofit organizations and small governments address concerns about federal rules and regulators.


Tax Structure & Business Incentives

Businesses in the Columbus Region benefit from:

  • No personal property tax
  • No inventory tax
  • No state corporate income tax

In addition to these tax savings, which are further detailed on the Tax Structure page, state and local governments offer tax incentives, credits, loans and grants to new businesses and expanding companies. State and local resources are below.

If you have questions about these programs, please contact the Columbus 2020 team. Our team of experts can help you navigate the many programs available to businesses.

Incentives

Tax credits and abatements

Job Creation Tax Credit

The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.


Small Business Owners Challenges

business (6)As a small business owner you are probably dealing with the same predicaments most other small business owners suffer from. Do you take the most needed vacation with your family or stay home and work? For most business owners the challenge of leaving their work and their earnings is a challenge with no easy solution.  Time off work equals sales lost, work accumulated, issues unresolved, accounting problems that need to be taken care of, etc. etc.

Click on the following articles to read more about this topic.


Small business weakness: Not understanding the numbers

We likely should listen when Dave Gay talks about suburban small businesses: Less than two months into retirement from his 21-year role as head of the Illinois Small Business Development Center at College of DuPage, Lisle, Gay responded quickly when I asked where the weaknesses might be in small businesses.

Topping a shortlist: “A lack of understanding of financials and what the numbers say,” Gay begins. Too many business owners “just don’t understand their financial records,” he says.

Next, but related: Lack of a transition plan, especially among now-aging Baby Boomers hoping their businesses will fund retirement.


Small Business Owners Pick Sales Over Sun and Fun

Many small business owners who took a vacation last summer have opted to keep on working this year instead, says a survey by American Express. Those with startups find it’s hard to tear themselves away when they’re nurturing a very young company, and many owners want to capitalize on momentum. Others are working because sales are down.

Jerome Cleary was on the verge of taking a trip to Hawaii this month when he started getting emails and phone calls from potential clients. He had to choose between new business for his public relations firm and the white sands of Waikiki.

He stayed home and worked.

“Things are supposed to die down during the summer. People go out of town or go on vacation. But suddenly people wanted to get started on projects,” says Cleary, who is based in Los Angeles.


Small Companies Power Ahead with Big Gains

In an economy that is expanding slowly, many companies are finding growth hard. But smaller companies entering new niches can grow quickly. Many are part of the Russell 2000, an index of small-company stocks that has outperformed other major indexes in 2013, suggesting investors are more comfortable buying stocks of smaller, riskier firms.

You may be unfamiliar with some of the best stocks on Wall Street this year. Small, mostly unknown names are leading the surge in stock markets. Companies like Entravision Communications, a Spanish-language media company; SunPower, a maker of solar panels, and MannKind, a biopharmaceutical company, have more than tripled in value. All are part of the Russell 2000, an index of small-company stocks that has outperformed other major indexes in 2013.