Ghosting Haunts: 6 Tips to Protect Your Reputation in the Labor Market

It’s normal to think about interview etiquette when you’re going up for a position, but what about when you’re making the hiring decisions? In a recent Wall Street Journal article, reporter Sue Shellenbarger points out the significance of employer conduct during the selection process.

It is important to think about how you treat potential employees. We all know the feeling that there aren’t enough hours in a day. With a small business, you can’t put everything on pause while filling a vacant position. Your “to do” list is varied and ongoing. Interviewing and vetting take time. It’s definitely a lot! Nevertheless, your communication with candidates should reflect your business’ values.

Why it Matters

“Employers are battling to hire skilled employees in one of the tightest labor markets in 50 years,” Shellenbarger warns. Dismissive behavior, such as “ghosting” candidates, can damage a business’ reputation in the labor market. A few disgruntled stories can make a meaningful impression with the rapid fire spread of information over social media.

A negative impression can also hurt a business’ consumer reputation, Shellenbarger points out.  “More than three in five job seekers say being treated badly would make them less likely to buy the company’s products, according to a 2017 survey by Future Workplace and Career Arc,” she says. “While 91% of employers agree that candidates’ experience can affect their buying decisions, only 26% bother to measure how well they’re doing.”

Be Aware

Obviously, it’s important to make carefully considered hiring choices in building your team. Keep in mind, however, the average hiring process takes almost twice as long now as ten years ago.  Application processes also often involve creating and submitting work-intensive samples. This can all increase candidates’ opportunity costs. “The extended hiring process raises the stakes for applicants, who must invest more time and energy,” says Shellenbarger.

She continues, “Only two out of five front-line managers are trained in how to make the hiring process a positive experience for candidates, a 2017 CareerBuilder survey says. The training they do receive tends to be defensive in nature, on avoiding charges of illegal discrimination. This can make them doubly reluctant to contact losing candidates, for fear that in delivering the news, they’ll open themselves somehow to charges of race, gender or other bias.”

Positive Hiring Practice Tips

To avoid muddying the waters of your potential labor pool, Shellenbarger gives the following six tips:

  • Make sure your job postings accurately describe the openings.
  • Acknowledge applicants’ resumes soon after they’re received.
  • Train hiring managers to treat all applicants well.
  • Keep candidates informed about where they stand.
  • Let applicants know if you change course in the middle of a search.
  • Leave the losers as well as the winners with a positive image of the company.

 

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8 Tips to Get and Keep Good Employees

“I can’t get good employees.” How often have you heard this from small business owners?

Cultivating a good team is an essential challenge. Here are some tips for attracting and retaining good employees:

  1.  Model integrity. Say what you’ll do, then do what you say.
  2. Always be respectful to employees and customers, even when you’re angry. People hear how you talk about others in moments of frustration and assume that’s how you’ll talk about them when they make mistakes.
  3. Even if you know the answer, help the employee figure it out.
  4. Let your employees make little mistakes and then show the leadership compassion when you unscramble the problem.
  5. Focus local  for employees. A short commute is high value these days.
  6. Don’t be afraid to hire people who are smarter than you. When you do, let them help you.
  7. Focus on total compensation, not just the salary. Put in place bonus plans so that when the business does well, everyone does well.
  8. Hire slow, fire fast.

If you are purchasing a business, the training and transition phase is important. Usually, the seller will assist, helping you understand the ins and outs of your new business and providing stability for both your new employees and your customers. Hopefully, your new business also comes with some veteran employees who know the ropes. Try to resist making sweeping changes right away. Employees may feel  uncertain working for a new business owner. Some consistency will help them feel comfortable to keep doing their jobs. It also gives you a chance to make more informed decisions. For more tips on setting yourself and your employees up for a smooth transition, click here.

That’s a start. There are great people out there who can help your business thrive. Now the real question is, how do you become a business owner who deserves better people?
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Less Risky Business: Buy a Business

In a recent Harvard Business Review article, Harvard Business School professors Richard S. Ruback and Royce Yudkoff advocate for more aspiring entrepreneurs to pursue their goals by buying a business. They site concern over risk as the most common explanation for shying away from acquisition. They further argue that these concerns are short sighted and unfounded.

Comparing Risk

“We think that these concerns about ‘risk’ are misplaced and that searching for a business is less risky than other career paths that are traditionally considered more stable,” they write.

“Nine out of ten startups will fail. This is a hard and bleak truth,” says Forbes contributor Neil Patel. “Cold statistics like these are not intended to discourage entrepreneurs, but to encourage them to work smarter.”

Top 10 Reasons Startup Fail (by CB Insights)

Purchasing a vetted business allows you to avoid many of the reasons for this high failure rate. “Your chances of success are far greater buying an existing business than starting your own,” says Michael Greene, President of Sam Goldenberg and Associates.  “A good broker can help you find an established business that already has a proven success model, history of revenue generation, and immediate cash flow. It can also come with much more: inventory, trained employees, a customer base, operating systems, equipment, vendors, transitional support—the list goes on. It is a more manageable risk than other options.”

“Finding an existing local business for sale can often be less risky and more satisfying and rewarding than starting completely from scratch,” says Simon Brackley, President and CEO of the Santa Fe Chamber of Commerce. “Aspiring entrepreneurs can enjoy improvements in operations, marketing and strategy rather than starting from the ground up.”

Navigating the Search for a Business

Unfamiliarity with the search process is a major source of concern, according to Ruback and Yudkoff. For many buyers, there are uncomfortably many unknowns along the way.

A buyer can drastically limit risk in the area of search success by working with a broker. According to an International Business Brokers’ Association Market Pulse survey, “Dating back to the earliest Market Pulse surveys in 2012, surveyed advisors consistently report that approximately 49-50% of their engagements closed in a successful transition while half are terminated. This closing ratio is approximately twice the accepted industry standard of anywhere from 18% to 30%, depending on deal size.”

Buying a Small Business

Furthermore, according to IBBA, it is an especially good time for people looking to buy a business in the range of $500,000 or less. This is the range of most small businesses for sale in New Mexico. “Small business confidence is at a record high, with the longest stream of small business optimism in history.”

A broker further helps to mitigate risk by facilitating negotiations, advising on financing, and setting up support during the transition between business owners. Click here to find out more about how brokers support buyers throughout the search for and purchase of the right business.

Finally, Ruback and Yudkoff suggest that buying a business results in less stress, more success, and higher quality of life in the long run.

“The searcher becomes a CEO of a business. Over time the business evolves to match the CEO, the management team is picked by the CEO, the products and customer base shifts to align with the CEO’s skills and interests, and the CEO is likely to understand the business better than competitors. Plus, the CEO’s significant ownership interest adds both to rewards and stability. In the long run, we think that being a senior consultant involves much more angst than being the CEO of a small business.”

Plus, with good exit planning, owning a business helps you create options for your next phase of life.

Get Started!

If you are considering entrepreneurship through acquisition, congratulations! Click here to get started by looking at our current listings.

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Franchise Opportunities and Tips

Franchise businesses rank as one of the leading business opportunities. Many entrepreneurs opt to buy a franchise business. Franchises offer a host of appealing benefits including stability, a proven concept, as well as a network of established resources.

To see current franchise businesses for sale, click here.

If you are considering exiting your franchise, follow these tips for reselling a franchise business.

Your Guide to Reselling a Franchise

According to recent findings from the International Business Brokers Association (IBBA), experts have declared it’s currently a seller’s market and a great time for owners to consider exiting. To help guide you through your transition, utilize the following four tips.

Consult Your Franchise Agreement

Before you make any significant decisions, be sure to review your franchise agreement. Many franchisors layout specific parameters for franchisees looking to sell their business and some franchisors even offer assistance in the selling process.

In addition to reviewing the agreed-upon selling process, you should also make careful note of any transfer fees or mandatory training for the new owner once your business switches hands. While selling any type of business presents a variety of challenges for owners, reselling a franchise often involves a few more obstacles.

Contact Your Franchisor

After reviewing your franchise agreement documents, contact your franchisor as soon as possible to alert them of your exit plans. During this conversation, consider asking the following questions.

  • Will I receive assistance selling my business?
  • What qualifications must a prospective buyer have?
  • How is my franchise location valued?

While these questions are a great start to beginning your exit process, consider enlisting the help of a certified business broker to provide the best guidance.

Prepare the Business for Sale

To receive the best asking price, ensure your business is in tip-top shape from your books to the building condition both inside and out. Consider investing in small maintenance fixes or even a professional service to obtain an accurate business valuation to further help you obtain desirable offers.

Keep in mind the franchise business industry has grown for the eighth year in a row. The industry’s performance paired with your well-prepared business should provide plenty of offers to consider.

Negotiate a Deal & Exit Your Business

After listing your business for sale, consult with your franchisor about any offers you receive. Depending on the franchisor’s level of involvement with the selling process, any prospective buyers may need to be approved before the sale is final. For tips on exit planning, click here.

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At the Xitech Closing

Congratulations to Matt Baker and Troy Shepard for their acquisition of Xitech Instruments, Inc. 

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Happy Halloween

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Michael Greene: Witness to the Birth of NM Dining

 

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New owner of Garcia Street Books aims to offer what online sellers can’t: relationships

Sam Goldenberg & Associates shepherded Jean Devine into Santa Fe’s beloved Garcia Street Books.  

By Justin Horwarth | The New Mexican
Jul 10, 2017

The new owner of Garcia Street Books is banking that an old formula, encouraging customers to browse, will help the independent bookstore survive in the age of Amazon’s Kindle and other online services that have eaten into the profit margins of brick-and-mortar booksellers across the nation.

Jean Devine, 63, said she wants the 15,000-square-foot building off Garcia Street and Acequia Madre to “open amazing places for the mind and spirit to go” while readers browse the eclectic selection at a store that’s managed to survive the introduction of chain-retailers such as Barnes & Noble in the 1990s and then the creative destruction the internet brought to the publishing industry.

Two weeks after purchasing the store from former co-owners Rick Palmer and Adam Gates, who had owned it since 2012, Devine said she has come to understand the loyal following Garcia Street Books has earned from customers over several decades. If the store does not have a certain book, regulars will eschew online ordering and keep her up to date about the books they want to purchase, she said.

“What keeps us alive are the people who live here, whether they’re full time or part time,” Devine said.

Read the full article at The New Mexican’s “New owner of Garcia Street Books aims to offer what online sellers can’t: relationships.”

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For couple, a big bite of Santa Fe restaurant scene

The New Mexican
By Bruce Krasnow
July 12, 2017

Jennifer Day and executive chef of New Mexico Fine Dining. Photo credits Luis Sánchez Saturno.

A Santa Fe couple who own vacation rentals, car dealerships and furniture stores has purchased four local restaurants with the promise of reopening two that are now closed and tripling their Santa Fe workforce by next year.

Jim and Jennifer Day are now the owners of Georgia and Bouche, as well as the closed Bobcat Bite and a restaurant space at 227 Galisteo St. that was home to Galisteo Bistro but will reopen under the Italian name “A Mano.”

The couple recently lived in San Antonio, Texas, but has owned a home in Santa Fe for 16 years and lived here full time for nine years. Jennifer Day is an interior designer and fiber artist. Jim Day is a competitive bicycle rider who graduated with a Master of Business Administration from the University of Texas.

Together they own several car dealerships in Texas as well as 50 Aaron’s furniture franchises in 10 states. They also own the Escondido Ranch in Central New Mexico, which will be the primary source of grass-fed beef sold at their Santa Fe restaurants.

(more…)

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“Discovering the Delights of Santa Fe”

Reposted from the Santa Fe New Mexican.
Sunday, August 21, 2016

Do you find the food in Santa Fe enjoyable?

It’s no wonder. Santa Fe, after all, has just been named to yet another prestigious Top 10 list — the readers of Travel + Leisure named it one of the best cities for food in these United States. The accolade was part of the magazine’s World’s Best Awards for 2016, with votes from sophisticated travelers — folks who know their chile and appreciate it hot and spicy.

Such travelers also are going to love the city’s sophisticated bakeries, upscale eateries and the burgeoning food cart offerings. They likely won’t mind perusing the fresh produce at the Santa Fe Farmers Market, either, or eating tapas on a porch while savoring sangria. Made-to-order cocktails, craft beer and the city’s new Margarita Trail all can enhance the enjoyment of the many varieties of food to be had.

Santa Fe, when it comes to food, isn’t sitting still, secure that it offers the best red and green chile in the world, perhaps the universe. No, this is a city where entrepreneurs are taking Central American dishes and selling them out of food trucks in middle-class neighborhoods, where vegetarian cuisine is no weak substitute for meat and where healthy, locally sourced food is on most menus. The variety and choice would grace a city twice the size of Santa Fe. No wonder we made the list.

Read the Complete Article at: “Our View: Discovering the delights of Santa Fe”.

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