Business
August 26, 2019Business / Original Objective ArticlesBy: Virgil Jacobs | Contributing AOJ Journalist
Every employer that wishes to ascend in the business world has encountered a type of obstacle related to the question of “Who to hire.” Quality of hiring decisions generally mean the difference between the successful team that produces great quantities of products and satisfaction, with great care and the most profit; compared to those that made inferior hiring decisions resulting potentially in lazy employees that do not necessarily want to work or work where they are employed, which can consequently bring down the team around them. The reduction of overall morale can cause the poor qualities in workers to propagate to their colleagues. It could be the manager and/or boss as well, incapable or unable to lead or advise this good and/or bad team. Which will be mentioned after the workers as a sort of way to align the points in a way that represents the pyramid of industry. Understanding that the foundations are the most important part of a structure, and starting there.
Foundations
Thanks to the definitions of “https://www.jagranjosh.com/general-knowledge/list-of-collar-workers-1404546729-1”
Blue Collar
Workers who are given the menial hourly wage; laborers who do physical work.
White Collar
Professional, office types of jobs and workers, typically a cubicle environment. Includes management positions above said office jobs.
Black Collar
Workers of this caliber are depicted to be miners and oil workers. However, in special cases “Black-Market” workers fall into this category.
Gold collar
People who are highly skilled and knowledgeable in their work, includes doctors, lawyers, scientists, and other professionals. Used sometimes to represent lower wage workers, who have their parents to support them.
Open collar
A person who works from the home environment, specifically through the internet
Grey Collar
People who choose to continue working after their retirement age.
Pink collar
Lower wage jobs, relating to receptionists and librarians.
Green Collar
Environmental jobs, energy jobs for alternate energy sources. Including, but not limited to work with solar panels.
From this list, you could create your very own list of general collars required to complete a job. This provides a measuring stick that you can line up to those people you are considering for hire. Although, the guidelines aren’t just set in stone by the collars themselves, keep in mind that you are hiring for the job. With this in mind, it opens plenty of doors and opportunities, while also providing the ability to shut said doors, and forcefully deny these opportunities. The goal is to create the perfect team with the best supervisors for this team, however, if you are working from your home alone, this would include different criteria. Moving on, different collared jobs require different kinds of workers, different skills, and different inner mechanisms. Like a car or an ATV, so assuming that this car and/or ATV are your team, How do you make one?
Diversity
The scope of different jobs in the world that require different sets of skills is pretty much impossible to list. So, as said above, it is easier to list out the people, and then single them out. After singling people out, you can measure their ability and their type of skillset to the job of best fit. Say, you wouldn’t want a cement truck tire on a bicycle. So, it’s important to measure, and then place these parts into and onto the correct vehicle. Well, now an even better question arises; What parts are best for what? But before we can answer that, we need to understand what we want to make first.
Frame
This is the most protective part of the car; it is the backbone of your business. When you crash, this is the saving grace of hard work and people who are prepared for the future and perhaps even mistakes of diversity. If you pile all of your attention into the engine of the car, to work faster, sure you’ll obtain an absurd amount of speed; but you’ll have less protection than is designed to help for a crash (mistake in the business), and interestingly enough the faster you go the more likely you are to crash. The frame of your business is a plan, MAKE plans, it’s good to be prepared, but also good for the intended consequences to take shape. Then, the idea of your business can take form as an improvement after those plans. But the plans are important, if you don’t build the plans as they are written, you are likely to cause a crash, to go off the intended plans, you are perhaps literally misaligning the assembly line of the car that everyone is working different parts of. An unexpected part falls through the next worker, and the plan is abandoned at this point. If the plan isn’t followed, the decisions that will be made next could be incredibly horrid for the business, and less likely to be good for it.
Engine
This is the incentive for the car to work. Think of your engine as a salary; the larger the salary is, the more people will admire it and wish to be a part of your business. Although, an engine is a very complex mechanism within a car, just as the salary payout of a business is very complex as well. You must monitor/balance running the business correctly so it retains stability; keeping the salary not too high based on the job, nor too low to not even come close to matching the effort it takes to complete the action of the job. Staying careful to not overheat and strain any of the small and hard to get parts. After maintaining this balance, you now have an incentive for people to go forward with your business as well as a good sound, good flow, and good running, which, as a general view of your business, is what it should be like. Different engines, of course, attract different types of people. This is the same as different businesses attract different people. The phrase goes vice versa. After establishing your frame and your engine, you now have a car (business) that is taking shape, and something people might like to buy, invest, and/or be a part of. However, a task that must remain the head of concern is making an engine that your business can use to attract the best fitting collar worker, that’s the key.
Wheels
What will carry your business? Your employees, and that is precisely what a wheel is constituted to be. The wheel is an irreplaceable concept because without it your engine will be exerting power but go nowhere. If you have no employees, then how will you move forward in your business, which includes yourself if in the parameters of being “Self Employed”. I’m sure we’ve all had the Difficulty of “popping” a tire or having a flat tire. These two are categorized to be separate for a reason. Overflowing the tire, or putting too much stress on an employee, will cause him/her to burst from stress/tension. On the other hand, keeping your tire/employee underworked will mean the rest of the wheels must pick up the lack of energy exerted, creating a type of free rider.
It’s important to monitor your tire’s pressure, due to the fluctuation in work from diversity through the changing of tires. Considering other environmental factors too, tires morph and warp due to time itself. Check them occasionally (However more often would be recommended), if not frequently, to make sure the weight of your business is being carried equally by all of your workers; thus, ensuring the “equal” distribution of work among them. Assuming each is the correct fit for your car, you must figure out the correct pressure of the tire for the job you require it to do. Pressure being work, and different jobs in businesses have different payments (Reference to the engine). This will determine what job you are doing, and that is why the (Frame) that was previously stated, is important. It pretty much plans the entire point of your car, what it does, and what parts you need. After this, it’s pretty much just assembling the car until it works, there is no guarantee you’ll get it right the first time. But that is why Mechanics, or (Business consultants) exist.
Steering
wheel
Manager, to some… dreadful, which
is not a good indicator. The scale of effectiveness greatly appreciates a happier
reaction to that word. Sort of like this, imagine you are the passenger in a
car, while the driver, however, is not proficient in turning, or perhaps using
his signals to evade crashes. Well, this brings about it a preamble to
destruction very quickly. It highlights an abundance of character in an
individual, which is where they’re going, and how they get there, and such will
dictate their leadership skills or attention span of the car (business) itself.
It’s a matter of great importance to have a decent driver, someone who
understands the route, and the car itself. That way he/she who is the operator
can utilize both of those factors into a flawless and easy approach to
business. The byproduct of this choice to hire someone who is appropriate for
driving your car, understanding of your directions, and perhaps sometimes even
points out an easier path to take, will bring about a well lead team, and
someone who will be careful with concerns of safety, and proper procedures. Altogether,
such a choice will be of great benefit to you and your business.
Where do you get the parts for your car?
Where should I hire my workers? Well, it depends on what you want them to do, and how well you wish for them to perform what they do. It’s all about quality, and then your preference. Let’s explore this idea. This scale is a magnifying glass to apply traits that would be beneficial to your business. Consider this as an identifier for the right fitting parts to your car. Although, finding parts that are the right price is extremely difficult at times, warranting a professional. But a rough outline always helps, narrow down the search.
Consistency Consistency ranges from how often your employee shows up, to how often they keep their demeanor or good personality. A resume can be used as a main source to discover which traits an individual may possess; it may also allow you to find an isolated group and/or person that does their job efficiently for a reasonable price. The resume may also give you insight on the consistency that they’ve had at other jobs previously.
Completion Completion is self-evident; will this employee complete what they’re needed to do? This is notorious among new hires in every job field. It’s something that managers, directors, and bosses around the world have keened their eyes for. If you are a teen rising into the responsibility of job hood, you should be prepared to do what your job asks you to do.
Experience Experience is not something that can always be expected, especially for first-time employees, but if it’s a factor, say a job that requires experience, the employer needs to understand the past experience of the potential employee. In the case of the car analogy, this isn’t so fitting; an older car part that has seen use may not be the best to use. However, a person is a different story. If the person in question has experience in your job field, you should attempt to find out this experience to understand the abilities and prior knowledge that the said individual has, before granting them the job opportunity.
Efficiency How well does this person work? Tying in the other trait magnifications, how well does this person combine all their experience, work ethic, and demeanor into an individual that works well. This can be obtained by contacting the individual’s previous jobs, through the record of the individual, or by their resume. Focus on these and you’ll have a narrowed search for people that will be beneficial for your business.
So all that is listed above describes what to look for as you search for parts, but you still don’t know where you can find these parts (employees) for your business. Well, it all really depends on the collar worker you’re looking for; more detail about where to find the two most commonly employed collars is listed below.
Blue Collar
“https://www.pennlive.com/news/2017/04/does_pennsylvania_have_the_mos.html”
“Indiana has the most blue-collar jobs with 21.4 percent.”
If your a blue-collar Employer, Indiana would be a great place to look for an abundance of employees. However, blue-collar workers can be found just about anywhere. High school students looking for a part-time job may be eager to take blue-collar jobs and a good source for employees as well.
White Collar
“https://www.forbes.com/sites/joelkotkin/2018/05/29/the-cities-creating-the-most-white-collar-jobs-2018/#6429f1103920”
“Texas is home to three of the 10 metro areas that have generated
the strongest job growth over the past decade, led by No. 1 Austin where the
business services job count has expanded 37.1% since 2012 and 7.2% last year.”
Texas is considered a good area to be searching for white collar workers. Many potential white collar workers can be found graduating from universities as well and may be great for hire, as they will be eagerly searching for the jobs their education has promised them.
Closing Points
What is stated above are the general ideas for finding your desired employee and a hiring professional in your area may be better equipped to find the best fits for the job(s) you offer. But in reading this article, perhaps it gives the employer or employee insight into the world of hiring, and maybe even a little insight into the responsibility on the employee’s side. The main focus was to provide ideas for the correct people to hire, the people who will provide the best abilities and demeanor for your business. The car analogy served the purpose that it may perhaps simplify the thinking and perhaps the complexity of forming a business for most people. Good luck building your car, and good luck adding modifications (new parts to enhance your car). The options are limitless, using the tools given, build a car that you are satisfied with, makes you money, and advances forward into the world of economics, and competition.
Citations:
Josh, J. (2014, July 5). List of Collar Workers. Retrieved from https://www.jagranjosh.com/general-knowledge/list-of-collar-workers-1404546729-1Alexandersen, C. (2017, April). Does Pennsylvania have the most blue collar jobs in the U.S.? Retrieved from https://www.pennlive.com/news/2017/04/does_pennsylvania_have_the_mos.html Kotkin, J. (2018, May 29). The Cities Creating The Most White-Collar Jobs, 2018. Retrieved from https://www.forbes.com/sites/joelkotkin/2018/05/29/the-cities-creating-the-most-white-collar-jobs-2018/#6429f1103920 [...]
August 8, 2019Business / Original Objective ArticlesBy: Gittan Alicia | Contributing AOJ Journalist
While the idea of companies starting from nothing and growing into something big sounds unusual and rather impressive, most companies start from nothing. Therefore, it’s no surprise that most of today’s famous companies arose from nothing, but rather that they’ve come so far. However, instead of focusing on how far these companies have come, the media acts surprised that they began with so little, painting a false picture of the world of business. The truth is, that like the biggest companies of today, most companies start from nothing, and many small companies are going down the same roads of starting off right now that these bigger companies have already been through.
Unless someone won the lottery, was gifted a massive amount of money, or already had the money to spend on a business, they will have to start their business from little to nothing. This means the individual will need to figure out how they are going to pull together money to meet bills for and expand their business. Business owners could bring together such money either by bootstrapping or pulling together money from outside sources. More commonly a business owner would choose to bootstrap even though it is oftentimes more difficult because it provides many advantages.
What Exactly
is Bootstrapping?
Bootstrapping in the world of business is relying on as little money as possible to build a company. This means figuring out how to cover the costs of maintaining and building your company with what one has in hopes of eventually building up to success. This is the common route that businesses must take simply because all startups don’t yet have a reputation or customer/audience base to generate much revenue and therefore have very little to thrive upon. It’s no surprise that given the difficult task of bootstrapping, many startups end up failing.
Why do Most
Companies Bootstrap?
While bootstrapping isn’t the only way to start a company and is in no way easy, it certainly has many benefits when compared to other methods. Some of the most notable of these benefits are fewer restrictions on how one runs their business, required focus on the things that will actually get one’s business somewhere, and one gains a greater understanding of their business. However, there are several disadvantages to bootstrapping that require lots of work on one’s own part to overcome and bootstrapping certainly isn’t easy. Regardless of these advantages or disadvantages most individuals only option is to start a business by bootstrapping due to a lack of capital and/or inability to gain capital through outside sources.
Bootstrapping provides the best guarantee that an individual
can run their business the way they want to, making it a very desirable
approach to starting a business. When one bootstraps their business, they’re
using their own money instead of money from outside sources. This means the
individual is not obligated to meet expectations of whoever funds them, and can
instead focus their resources on what they believe is best for their company.
However, it is still crucial that the individual meets the needs and desires of
their customers and employees to be successful. After all, customers bring in
revenue for a company and employees are an important factor in running a
company.
When one’s own money is at stake, they’re bound to be more
careful about how they spend it, whereas, if one is using someone else’s money
to run their business, there’s less incentive for them to be careful. This
gives bootstrapper’s a great advantage over other companies because they’re required
to focus on the things that will actually get them somewhere so they can make a
profit and get by. Whereas businesses who aren’t bootstrapping and using money
from investors are more likely to expend their resources by investing in things
that are more expensive and may not necessarily make them a profit.
Bootstrapping is a great way to gain a greater understanding
of running a business, which may be great incentive to some. The reason
bootstrapping helps an individual and a cofounding team if they have one is
because in the early days of bootstrapping, the company won’t have the capital
to hire people to carry out specific sections of the business, for instance,
one likely won’t have the funds to hire a head of marketing. Therefore, the
founder and co-founding team of a business will be required to carry out such
functions on their own, granting them a greater understanding of their
business.
Most companies are forced to be started through bootstrapping
due to a lack of capital or an inability to outsource, and while bootstrapping
provides them with several advantages, some of which I’ve already described,
there are several disadvantages to bootstrapping as well. One of the most
obvious of these disadvantages is the lack of capital when starting out. This
lack of capital requires more work on one’s own part and a plan to make profit
as soon as possible. Another major disadvantage of bootstrapping is a lack of
networking connections and credibility. Having outside sources provide a great
opportunity for connections within one’s niche. Without outside sources one is
on their own to build connections and figure things out, and the lack of
outside sources often makes a website less credible, meaning the company will
need to spend more time building the trust of customers.
Entreprenoria.
(n.d.). The Advantages and Disadvantages of Bootstrapping Your Company. Retrieved
from https://entreprenoria.com/finance/bootstrapping/the-advantages-and-disadvantages-of-bootstrapping-your-company/
Gazdecki, A.
(2016, May 27). 5 Benefits Of Bootstrapping Your Small Business. Retrieved from
https://smallbiztrends.com/2016/05/benefits-of-bootstrapping.html
Towers, P.
(2017, May 25). 5 Benefits of Bootstrapping Your Startup – Task Pigeon.
Retrieved from https://blog.taskpigeon.co/5-benefits-bootstrapping-startup/
Chan, J.
(2019, February 26). Bootstrapping Business Entrepreneurs – Start a Business
Without Funding. Retrieved from https://foundr.com/bootstrapping-entrepreneur/
Big
Businesses of Today That Started off Bootstrapping
Like the many small companies starting off today, the biggest and most famous companies started off bootstrapping. In many cases, the situation of the founders at the time had required them to bootstrap their startups, which have grown into the well-known companies they are today. Quite literally, today’s biggest companies had grown from nothing into something big, but it’s often forgotten that almost all companies start from nothing. So, we’re going to focus on the bootstrapping methods such companies went through in their beginning and how they compare to the small startup companies of today.
Apple, famously known to have started off in a garage, is one of many big companies in today’s world. Apple wasn’t the only garage startup of its time, but the fact that Apple made it big from such a low start is what gives the company all the attention. Started by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 with very little money and almost no room for mistakes or failure. The beginning was very risky for Apple and being not well-known, Apple struggled to find companies who would purchase and sell the Apple machines, and also struggled to get the parts needed. Apple eventually found a buyer and affordable parts to create the first Apple machines, however, Apple only had 30 days to carry out the order from their buyer, a risk too big for Ronald Wayne. At this point, Ronald left Apple, and after his leaving, the two Steves managed to complete the order, marking the first ever success for Apple. Be that as it may, had Apple failed to complete the order or get the required parts, the company would’ve been over, as “Jobs and Woz didn’t have two nickels to rub together,” according to Robert Wayne.
Almost every company starting out and bootstrapping today faces the same problem the two Steves faced, having little to no capital or credibility. A lack of capital makes getting resources and materials required for one’s business difficult, as demonstrated by Apple, and makes others less willing to risk entrusting a company that is unable to pay back should something go wrong. Lack of credibility as a starting off company also increases the difficulty of gaining support from others. Having no track record and no capital as a company makes it a huge risk for others to invest in or support one’s company. Such was the case for Apple, but through perseverance and persistence, Apple was able to gain the support it needed and to sell its product. However, while Apple may have been able to do this, not all companies have been able to, and today not all companies will be able to either.
Rawlinson, N.
(2017, April 25). History of Apple: The story of Steve Jobs and the company he
founded. Retrieved from https://www.macworld.co.uk/feature/apple/history-of-apple-steve-jobs-mac-3606104/
How would
Companies Pull Together Money from Outside Sources?
Pulling together money from outside investors for one’s company is no easy task, but is certainly an option, and one of the ways one can start a company. Pulling together money from outside sources typically involves drawing in investors with one’s business plan or current business status. As a starting company, outsourcing is much more difficult because there’s no track record or current status of the business for an investor to go upon. Meaning, the investor would only be sold to one’s idea if they were convinced and believed there was great enough potential in the company for them to invest.
Starting companies can gather money and resources from outside sources to further their business through a business incubator, accelerator, crowdfund, or something of the like. All of these options provide support, services, and/or funds to assist a startup business. The role of a business incubator in supporting a startup business would be to help a startup succeed by providing virtual and on-site assistance to a company through a collaborative environment. The role of an accelerator in aiding a startup business would be similar to an incubator, but faster paced and more intensive. The goal of accelerators is to provide education, mentorship, and financing to accelerate the start of business by compressing what would be many years’ worth of learning on one’s own into a few months. Crowdfunding’s role in supporting a business would be strictly to provide capital through public investment in return for future buy-in to one’s company. There are many other options businesses use to aid their startup as well.
Hathaway, I.
(2016, March 1). What Startup Accelerators Really Do. Retrieved from https://hbr.org/2016/03/what-startup-accelerators-really-do
Riggins, N.
(2019, January 1). What is a Business Incubator? Retrieved from https://smallbiztrends.com/2017/06/what-is-a-business-incubator.html
Westwood, R.
(2014, October 8). How To Start A Business With No Money. Retrieved from https://www.forbes.com/sites/ryanwestwood/2014/10/08/how-to-start-a-business-with-no-money/#29d7ce2e57ad
Why Would a
Company Pull Together Money from Outside Sources?
Support from outside sources can hugely beneficial to startup companies who have so little capital, knowledge, and resources to build off. Outside sources can provide advantages such as preserving a company’s internal financial resources, a collaborative environment, and increased room for growth. However, such advantages come at several costs companies must consider.
By gathering the support of an outside source, a company may gain preservation of their internal financial resources that could be used later on should a situation call for it. Not only that, but should a greater opportunity for investment arise, like a lower interest loan, a company could use financing from its external (outside) sources to pay for it. Companies could also improve their credit rating by investing the internal financial resources they’ve reserved into certain business activities.
Some outside sources provide companies with a collaborative environment to aid a company through any challenges it may face. Such an environment provides a company with additional resources and approaches to its challenge that may not have been accessible had the company been on its own. A collaborative environment may also provide networking opportunities and allow individuals to review and offer creative ideas for each other’s companies.
Outside sources also have the advantage of granting greater room for a company’s increase in growth. The services and knowledge provided by outside sources like incubators or accelerators may allow a company to grow quicker by acting as a guide. Other outside sources may provide a company with funds that allow a company to invest in opportunities for growth that the company otherwise may not have been able to afford.
While all these advantages I’ve listed are certainly beneficial for a company, they come at a cost. Seeking out the aid of an outside source as a startup company reduces some of the freedom an individual has to run their company. For instance, taking money from investors for one’s company may require the company to meet the expectations and demands of the investors for continued funding. Ownership of one’s company can also be lost if one gets the funding of their business from investors and shareholders, which requires one to give up a portion of their ownership in the company in exchange for funding. Some outside sources may also include the risk of one’s initial contribution to the source like an incubator or accelerator, and the possibility of no return on one’s contributions.
George N. (2019,
February 12). The Advantages & Disadvantages of External Financing.
Retrieved from https://smallbusiness.chron.com/advantages-disadvantages-external-financing-10033.html
Why Do Some
Businesses Succeed While Others Fail?
It would be great for businesses if they could just look up, “How to make my business succeed” and be given a straight answer, but making a business succeed is not quite so easy or straightforward. There are several factors that play into whether or not a business will succeed, some in control of the one running the business and others not. Making a business succeed and determining what will make a business succeed is especially difficult because the factors and circumstances change depending on the type of business. However, there are some general factors that can be applied to just about any company on its outlook for success.
One of the biggest and most important factors that contribute to a company’s success is the interest and necessity of what’s being offered by the company to the public. For instance, if someone starts a shoe company in the midst of several other shoe companies with no unique aspects to their shoes and company, the need for shoes is already met. There’s nothing of interest being offered to the public and therefore, the company would probably fail. The same goes for any other company, if a company has nothing of interest to their customers and isn’t providing something of necessity to the public, they’ll likely fail.
The drive and commitment of an individual running a company is another very important factor in the success of a company. There’s no way a company will succeed if the one’s running the company aren’t committed to making the company run and aren’t focused on how they’ll make the company run. Running a company certainly isn’t easy, but a company won’t succeed if the one’s running it give up on it because it’s too much for them.
Names and company branding are actually a significant factor in the success of a business as well. Lists of successful companies today who changed their names and/or logos can be found online because of how impactful this factor is on a company’s customers or audience. Some names are more memorable and meaningful than others to people, and people are less likely to care to remember and recognize a company with a long name that doesn’t make much sense. The same goes for logos; if a logo is too overwhelming and complicated, people are less likely to remember and recognize it than if it were simple.
Of course, there are several other factors that could be applied generally to the success of businesses and many more that could be applied to specific business niches, but there’s so many it’d be impossible to list them all. This is part of what makes running a business so difficult, evaluating the factors and figuring out how to overcome them, and even then, not all are avoidable. Even the biggest corporations of today could’ve failed somewhere on their way to success had they evaluated one of these factors wrong or been caught in an inescapable circumstance. [...]