Contractor, Subcontractor, or Employee

This reoccurring dilemma continues to surface in the cleaning industry. The IRS takes a negative view of any Company trying to avoid payment of the Social Security Tax and states take a similar stance when a company tries to circumvent their unemployment fund.

For example, if you use a subcontractor to do some of your cleaning work, you can pay them without making a deduction or contributing your portion of the FICA tax and other payroll liabilities. However, you are required to issue a 1099 form to them and send a copy to the IRS with your tax return.

Ask yourself the following questions:

1. Do they provide their own truck, equipment, chemicals and supplies?
2. Do they have their own insurance and provide you a Certificate of Insurance?
3. Do they do cleaning for other companies or themselves?

If these questions have a yes response, then you should be within the basic guidelines set by the IRS. We always recommend checking with your CPA and Insurance Agent to be sure all is in order.

Related carpet cleaning business information on the Bane-Clene® web site:

• IRS audit
• Sub-Contracting can be hazardous
• Time to have a talk with your CPA
• What makes a company successful

Thank you for reading Bane's Blog.

The Bane-Clene^® Team

Please read the latest issue of The Clene-Times^® at www.baneclene.com/publications/.

Delegation

Growth of a company will not occur without a principal's ability to delegate work and decisions. In the beginning, an owner/operator has to delegate contact with customers to new technicians. Thus begins the process of growing and delegating. Principals must be specific in whom they delegate to and in turn does that person have the authority to re-delegate. That authority is usually given to managers. When you talk to your manager, be sure you are specific in the instructions you give. Especially, if only a certain person or persons should be given the task or job you are discussing.

Many people have trouble delegating. Make sure the manager you hire has that ability. While a manager may be given broad authority to delegate, we feel that certain duties should be handled only by owners and/or principals. These may include but are not limited to handling the company's finances, hiring or firing, policy making decisions and solving major problems. That doesn't mean that you should not seek their input, but once again, we feel only the owner, principal partner, an officer or top echelon employee should handle matters in these areas.

Related carpet cleaning business information on the Bane-Clene® web site:

• What makes a company successful

Thank you for reading Bane's Blog.

The Bane-Clene^® Team

Please read the latest issue of The Clene-Times^® at www.baneclene.com/publications/.

Please visit our recently updated web site at www.baneclene.com

A Capital Idea

Conventional wisdom says that lack of capital is a big cause of business failure. However, lack of capital may be the MAIN REASON why small businesses SUCCEED. Sounds like a paradox.

Businesses flush with capital through a loan or grant or similar circumstance often spend on unneeded items or overspend on the basics. Owners take excessive vacations, leave early or live the high life without actually having achieved anything as of yet.

In the beginning, small business entrepreneurs work long hours, often 6 or 7 days a week, and watch their spending. Therefore, they develop an appreciation for earned capital. This translates into prudent and wise expansion and growth.

Instead of waiting for loans, backing or other initial capital infusions, a budding entrepreneur takes what they have to start with, and roll up their sleeves and they get going.

Small business and entrepreneurs are the backbone of the American economy having in many cases started with little or nothing and have built a thriving and successful company.

Related carpet cleaning business information on the Bane-Clene® web site:

1. Before You Finance
2. Building Your Own Carpet Cleaning Business
3. Cash Flow in the Carpet Cleaning Business
4. Four Characteristics of a Successful Person
5. The 15 Factors of Success
6. Twenty Steps to Success
7. What makes a company successful

Thank you for reading Bane's Blog.

The Bane-Clene^® Team

Please read the latest issue of The Clene-Times^® at www.baneclene.com/clenetimes.html.

Feathering Their Nest

Many articles written today talk about products for the home, food delivery services and other topics relating to the fact that consumers are spending more time at home. This trend will not only continue but will grow among more of us.

Translating that information to the carpet, upholstery and drapery cleaning industry doesn't take physic powers. If people are spending more time at home, they will soil their environment to a greater extent. They will then want that environment to be cleaner and healthier. This should lead to greater sales for our industry.

That said, they will then seek out professional services. Evaluate your advertising to take advantage of this. Make sure your technicians are up to date on cleaning techniques, chemical usages and all aspects of customer relations. Trucks and equipment should be in top operating and appearance condition.

Help your customers "Feather Their Nest" by providing what they need.

Related carpet cleaning business information on the Bane-Clene® web site:

1. Advertising. . . the Essential Element in the Carpet Cleaning Business
2. Advertising the Bane-Clene® Way
3. Bane-Clene® Carpet Cleaning Truck-Mounted Equipment
4. Bane-Clene® Marketing & Advertising for the Carpet Cleaning Industry
5. Carpet Cleaning Industry Potential
6. Sell The Sizzle
7. The ABC's of Advertising
8. The Bane-Clene Way® Advertising Program
9. Why Bane-Clene® Over All Other "Truck-mounted" Carpet Cleaning Equipment?
10. Why Doesn't My Advertising Work?

Thank you for reading Bane's Blog.

The Bane-Clene^® Team

Please read the latest issue of The Clene-Times^® at www.baneclene.com/clenetimes.html.