TAILIEUCHUNG - HOW TO ORGANIZE AND RUN A SMALL BUSINESS
An entrepreneur is one who manages, organizes, and assumes the risk of a business. The entrepreneur starts a business because of a plan or idea that he or she believes will work. The Small Business Administration (SBA) Office of Advocacy defines a small business as one that is independently owned, is locally operated, is not dominant in its field of operation, grosses less than $3 million annually, and has fewer than 500 employees. | You have to pay your employees fair wages. If compensation is too low, the employee’s morale will be bad and they may leave. If the salaries are too high, you are rendered less competitive and lose money you should not lose. Typical salaries and fringe benefits in the industry may be learned from professional organizations, local chambers of commerce, the . Bureau of Labor Statistics, and executive recruiters. Bonuses should be based on employee job performance and/or the profitability of the company. Semi-annual reviews are a good idea. In looking at the compensation package, you have to consider not only salary but also fringe benefits (., health plan, retirement plan). Most fringe benefit payments are tax deductible. Also important are job security, working conditions, and hours, employment terms (., sick leave, vacation time), status (., job title), and treating employees with dignity and respect. Generally, an employee is given two weeks vacation after one year and three weeks thereafter.
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