Fair use is news again because Mitt Romney’s latest campaign ad features a news clip of Tom Brokaw reporting in 1977  that the House found Newt Gingrich guilty of ethics violations.  The campaign contends this is fair use, Brokaw is concerned that he appears to be endorsing Romney and NBC Nightly News claims this is copyright infringement.

What is fair use and how do you take advantage of it?

Generally speaking, you can use or copy a portion of someone else’s copyrighted work for purposes of criticism, comment, news reporting, teaching, scholarship, and research. In reality, however, it is often difficult to distinguish  fair use from infringement. Fair use is often used in connection with parody, criticism or commentary.

Section 107 of the Copyright Act sets out four factors to be considered in determining whether or not a particular use is fair:

1. The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes;
2. The nature of the copyrighted work;
3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole;
4. The effect of the use upon the potential market for, or value of, the copyrighted work.

There is no specific number of words, lines, or notes that may safely be taken without permission. Acknowledging the source of the copyrighted material does not substitute for obtaining permission.

As a business, before you use another’s work, ask the author’s permission or seek intellectual property counsel to determine if your potential use is fair or infringing.

Related articles

• Romney would consider pulling NBC ad (politicalticker.blogs.cnn.com)
• Lines Between Fair Use And Copyright Theft Blurry (npr.org)

The W-9 form can be downloaded here: http://www.irs.gov/pub/irs-pdf/fw9.pdf

Who gets a 1099 Form?

• Non-Employee Compensation or Independent Contractor. Businesses are required to file Form 1099-Misc for amounts of $600 or more paid for repairs, maintenance or other services performed by non-employees.  If you’ve hired carpenters, handymen, plumbers, electricians, accountants, landscapers or paid for other services from non-employees, have the contractor provide a W-9 and issue a 1099-Misc.
• Rents.  Rents collected in more than $600 in 2011 require a 1099-Misc, unless such rents are collected by a real estate agent.
• Royalties.  Royalties collected of $10 or more  in 2011 require a 1099-Misc.
• Gross Proceeds Paid to an Attorney.  If your business paid $600 or more in legal fees (even if it was for another entity), you need to file a 1099.  The exemption from reporting payments made to corporations do not apply to payments for legal services.

For more information, contact your tax attorney, your CPA or the following IRS Publication: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

Related articles

• What Are the Different 1099 Tax Forms? (turbotax.intuit.com)
• End of Year Tax Filings: Form 1099-MISC (smallbizsurvival.com)
• New Preparation Rules for an old form [Form 1099-MISC] and New Form 1099-K (abizinabox.wordpress.com)
• 2011 1099 Forms, Plus New Form 1099-K, Due This Month (blogs.findlaw.com)
• Online Business Owners Prepare for Form 1099-K (internetbiztaxtips.com)

I am inspired by entrepreneurs who base their business model on improving the wider community/environment.

Image via Wikipedia

In August 2010, our legislature became one of the first to enact the low-profit limited liability company (L3C), which is a hybrid business form combining profit-making with socially responsible missions.  It can be the perfect venture for educational, scientific, literary or religious businesses that don’t want the hassle of complying with non-profit reporting requirements, or that have some activities that are not permitted by the federal tax code.

The L3C can be structured to take advantage of both non-profit and for-profit sources of capital.  It may offer marketing advantages by attracting socially aware investors and partners.  It may also attract private foundation program-related investments.

The biggest disadvantage, however, (and this is not a small disadvantage) is that the federal tax authorities have not ruled whether investments in L3Cs qualify as program-related investments.

We have a wide range of supports here for social entrepreneurship, including  informal meet-ups. formal academic programs at Duke and UNC,  community-based efforts to increase and support social entrepreneurism, and paid consultants.

How is your business giving back on a day-to-day basis?

Related articles

• One Entrepreneur Greets MLK Day with Work (smallbiztrends.com)
• United Way Triangle MLK Day of Service (unitedwaytriangle.org)
• Thousands In Triangle will Volunteer on MLK Day (nbc17.com)
• For-Profit Social Entrepreneurs (wealthartisan.com)
• The Rise of the Charitable For-Profit Entity (forbes.com)

Image by jferzoco via Flickr

In the past, lenders correlated borrowing ability with a company’s assets. If you had enough collateral, you could borrow what you needed.   Now, the emphasis is on the ability of the borrower, its owners and its guarantors to make the payments.  To determine this, lenders analyze “global cash flow.”

As a borrower, you will need to show all cash coming into the borrowing company from all sources, and then do the same for all the principals of the business, particularly if they are going to personally guaranty the loan.

While I think the initial emphasis on repayment instead of assets is sound, current federal banking regulations apply equally to all transactions, no matter the size.  For a small transaction, especially for a new-ish company, the paperwork can be overwhelming to both the borrower and the lender. Even community banks and credit unions, who are  often more flexible and approachable than national banks, are hamstrung by these underwriting regulations.

To be loan-ready post-2008, a corporate borrower should gather these materials:

• Amount of the loan;
• Purpose of the loan;
• Detailed description of any collateral (real estate, equipment, accounts receivable, etc.);
• Business plan/projections for the Borrower;
• Current financial statements and at least two years of historical financial statements for the Borrower and every corporate or LLC principal or guarantor, parent and subsidiary companies of any of these;
• Federal corporate tax returns for at least two years for the Borrower and every corporate or LLC principal, guarantor, parents and subsidiaries;
• Organizational documents (articles of incorporation or organization, bylaws or operating agreement, etc.) for the Borrower and every corporate or LLC principal, guarantor, parents and subsidiaries;
• If a principal guarantor derives income from ownership of other closely held entities, the lender will want financial statements and tax returns from those entities as well.

We are seeing clients gather these documents in advance and have a “book” available to potential lenders.  If you need help making sure your company’s organizational and maintenance documents are “credit-worthy,” contact your business lawyer. To make sure your books are accurate and clean, contact your CPA.

Related articles

• Documenting Global Cash Flow “The SBA Way” (SBAaccess.com)
• What is Global Cash Flow? (thebizbank.com)
• Beginner’s Guide to Financial Statements (SEC.gov)
• Peer-to-peer lending: How to borrow from and lend to ordinary people (confused.com)
• A Summary of the Guidelines of SBA 7a Loans (yepthatsme.com)

“The costs and resources invested by ON A WING AND A PRAYER PRODUCT GROUP into growing its followers, fans and general brand awareness through social media are substantial and are considered property of  the Company.  We intend to aggressively protect our customer lists and confidential information, intellectual property, trademark and brands. That’s why we are suing you for misappropriation of our customer list and other trade secrets (aka your Twitter followers). Please pay us $2.50 per follower per month of your unauthorized use.”

The first case to address whether a Twitter account is a corporate asset and how to value the account has been filed in federal court. Initial hearings are later this month.

It’s an important case because as more and more employees post material on Facebook, LinkedIn and Twitter—often on behalf of their companies — the social media account becomes increasingly more valuable to both employer and employee.  The company gets an online voice and brand, and the employee makes often significant personal connections that can impact his career.

In Phonedog v. Kravitz, an employee voluntarily quit a technology review company.  At separation, he was permitted to keep his Twitter account with 17,000 followers, but was asked to occasionally tweet about the company and continue to provide content for blogs and reviews.  At some point he changed his Twitter name to delete the name of the company. The relationship later soured, with the employee filing suit for unpaid benefits and compensation, and the company  contending that the former employee misappropriated the company’s Twitter account and followers, and cost the company thousands of dollars in lost advertising and sales.

Without delving into the details of this particular case, here are some reasons a Twitter account could legitimately belong to an employer:

• The account uses the company’s brand name.
• The account was created specifically to communicate with the company’s customers.
• The account was created to attract new customers.
• There is an applicable non-competition or confidentiality agreement.
• What does the corporate social media policy say?

Reasons the account could legitimately belong to the employee:

• The account name does not include the employer’s brand name.
• Tweets were not exclusively about the company (some about the Tweeter’s life and thoughts, some about the company and its products).
• Followers connect because of the personal relationship with the Tweeter, not because of the brand name of his company.
• Twitter followers (and LinkedIn connections) are not secret, so this is not theft of a trade secret.
• The employee is actually an independent contractor.
• What does the social media policy say?

If you are not hearing my subtext, a social media policy is more crucial than ever.  But there are significant hidden issues in the areas of labor and employment law, intellectual property protection and public relations/disaster recovery.  This is a good time to spend money on an attorney.

Stay tuned for more insight into social media policy.

Related articles

• Who Owns Your Social Media Account? Your Company or You? (intelligentdesignsmedia.com)
• Who owns a Twitter username? How to avoid a Twitter account lawsuit (theredrocket.co.uk)

Do not open these emails or click on any links.  This email technique is known as “phishing” and is designed to steal your personal information.  Sometimes when you click on a phishing link, it will surreptitiously install malware on your computer that copies your keystrokes as you enter passwords. Sometimes, you will be directed to a site that seems to be the official site of the Better Business Bureau, your bank or even the Internal Revenue Service.  Then it will ask you for all kinds of personal information and steal your identity.

Click here for some tips from the Federal Trade Commission to help you avoid phishing and identity theft.

Other popular phishing emails have titles such as: Rejected ACH Transfer; Federal Tax Transfer Rejected; and Direct Deposit #123456 Declining.

It is essential  to have good anti-spam and anti-virus software, and if you don’t have an Information Technology department, you should investigate an IT consultant that will help you protect yourself and use best practices.

Related articles

• Malware: BBB “Complaint from your customers” and billycharge.com (wales4u.wordpress.com)
• Better Business Bureau Warns About Scam Emails (newyork.cbslocal.com)
• The Consumer Financial Protection Bureau and Other Ways to Submit Consumer Complaints (savings.com)
• Avoiding Identity Theft from Phishing Scams (turbotax.intuit.com)

Heading to the office today, I heard a young man behind me say, “Well, I’d been there six- and-a-half years, so it was time to move on.”  A few steps later, I heard him add, “Well, it was time for me to get health insurance.”

This random comment fell right in line with the just reported findings by Mercer’s October 2011, What’s Working survey.   The survey finds that employees leave for a host of nonfinancial reasons as well, with a key factor being “how you are treated….”

When I’m leading training sessions for human resources professionals, I remind participants that in spite of the many laws they must know, if they will remember but one rule, they will usually get the law right, quoting Maya Angelou: “People will forget what you said, People will forget what you did, but people will never forget how you made them feel.”  When workers believe that they have not been treated fairly they seek to strike back.  Sometimes they vote quietly with their feet because of how they feel about their “work, co-workers, bosses and the general work environment,” according to Colleen O’Neill at Mercer.

Perhaps fueled by the Occupy Wall Street movement, it is clear that more terminated employees are not voting so quietly. The EEOC’s charge statistics certainly show a steady increase.    And, although the year-to-date numbers are not posted, it is clear from speaking with fellow defense oriented employment lawyers, charges are up across the board. To paraphrase the famous line from the movieNetwork, workers are “Mad as H_ _ _ and Not Going to Take it Anymore.”

The tide has clearly turned since the end of the official recession.  Making sure that employees understand their workplace situation is key to your company’s economic health. North Carolina may be an “at-will” employment state, but if employees don’t feel that they have been treated fairly, your company may become part of the EEOC’s new statistics.

If you need assistance with workplace decisions, The Workplace Lawyers at Sands Anderson would be pleased to assist you.

This was originally published on Virginia Workplace Law on November 8, 2011.

Saturday, October 22, 2011 at the Community Room in Crabtree Valley Mall, Raleigh, NC.  

Why should you come?

The Keynote Speaker:

Olalah Njenga is the award-winning CEO of YellowWood Group, LLC, a strategic marketing firm that helps companies own their market and become unstoppable.  She is also the creator of Breakthrough Advantage™, an intensive event to help business owners create unfair competitive advantage.  A member of the National Speaker’s Association (NSA),  Olalah speaks nationally on business topics, including  one-page marketing plans, positioning and differentiation, the business relevance of social media and re-branding strategies to boost  industry presence.

The panelists:

Sue O'Lear

Sue O’Lear a.k.a “MrsFatAssBlogger” is a wife, mom, Nursing student, and writer. Her blog, Did I Just Eat That Out Loud? is a source of humor and motivation for anyone trying to live a healthier life. Cited in the July, 2010 issue of Women’s Health Australia magazine as one of the top blogs for laughter and inspiration, MrsFatass makes weight loss funny. speaks and provides training on a variety of business topics including entrepreneurship, market penetration, differentiation, branding and social media.

Born as a health and fitness blog, MrsFatass.com has grown into a mix of real life experiences, observations, successes, and flops in areas of diet, family, sex, friendship, social anxiety disorder, and pop culture. Read by men and women alike, MrsFatass.com’s unique blend of humor and honesty appeals to a varied audience, including mommy/daddy bloggers, humorists, foodies, fiction writers, and avid reality television junkies as well as the health nuts that were the first home for her voice.

Sue was born and raised in Flint, Michigan and graduated from the University of Michigan – Ann Arbor in 1996 with a degree in Organizational Psychology. She spent several years working in marketing for a for-profit educational company before becoming a full-time stay at home mom to her first child in 2003. She now resides in Wilson, North Carolina with her husband and her two children.

Kelly Duffort

Kelly Duffort is a web strategist with 10+ years of experience in adopting and applying interactive technologies for communicating key messages to target audiences. She is the principal and founder of KD Web Strategies, a consulting firm that advises companies how to take their overall web presence (e.g., websites, blogs, social media profiles) to the next level. Before striking out on her own, Kelly worked in web and communications roles at GlaxoSmithKline, Towers Watson and Booz, Allen & Hamilton. She is president of the local chapter of the International Association of Business Communicators, IABC Triangle.

Kelly says, “Whether you love it or hate it and whether you understand it or avoid it, social media is changing the way people communicate – personally and professionally. If you use social media wisely to promote your business, you will be amazed at the connections it enables you to make and the doors it opens for you.”

Leah D. Gordon

Leah D. Gordon is a public relations consultant and knowledge management specialist with over 10 years of experience serving a variety of clients from local government agencies to small business retailers. Leah is co-author of “Knowledge Management for Data Use and Decision Making for International Public Health.” She provides training in communication strategy, image development, building and managing online communities of practice, and effective use of online and traditional media to meet business objectives. She leverages multiple, no to low cost social media platforms to strengthen web presence.

Leah says “Social media allows two-way communication between businesses and consumers in ways we have never experienced before. The opportunities are amazing.”

Donna Ray Chmura

Donna Ray Chmura is a North Carolina growing business attorney with Sands Anderson’s Raleigh, NC office. She came to the practice of law after a career in journalism, with the intent of becoming a legal affairs writer to explain how laws and decisions affect people. Now, she works as a strategic partner with emergent and entrepreneurial businesses to analyze the business, legal and capital needs of her clients, and plan for the future. Coming from a family business background, she also enjoys working with start-ups to structure a strong legal foundation.

She is an author of NC Law Life, and is active on LinkedIn and Twitter.

Organized by Beverly Mahone, founder of Boomer Diva Nation, the summit will be moderated by executive life coach Martin Brossman.

But what about the First Amendment?  The concept of free speech is so enmeshed with our national identity and values, that most people do not realize the First Amendment only prevents the government from restricting free speech:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Hank Williams is the latest U.S. citizen to face the cold hard reality that while he has the right to speak his piece, the First Amendment does not protect him from the consequences of his speech.

The Dixie Chicks’ music is still not played on many country stations after Natalie Maines criticized the actions of then-President George W. Bush while she was on tour in London.

Gilbert  Gottfried was fired as the voice of the AFLAC duck after AFLAC considered his Japanese Tsunami jokes tasteless and offensive.

Many public employees (those who work for the government) have very few free speech rights to criticize their employers.  Private employees also can be fired for voicing their views or opinions.  An Alabama woman was fired for having a John Kerry bumper sticker on her car.  A Delta flight attendant was fired for blogging and posing in racy pictures in her uniform.

Related articles

• Hank Williams Jr. Likens Obama To Hitler In Uncomfortable Fox and Friends Interview (mediaite.com)
• Hank Williams Jr. Tests Free-Speech Tolerance (firstamendmentcenter.org)

Image via Wikipedia

Small business owners in the Triangle are invited to attend a free corporate legal clinic on Friday, October 28, 2011, sponsored by the Durham County Bar Association, North Carolina Lawyers for Entrepreneurs Assistance Project (NC LEAP) and the Small Business Center at Durham Technical Community College.

 This is the place for you if:

•  You are thinking about starting a business and have questions for an attorney;
• You tried to form your own corporation or LLC and need reassurance and review;
• You have a contract to be reviewed;
• You have questions about an employee or independent contractor;
• You want to find out more about protecting your company’s name, logo, web site or materials;
• You have a question about trademarks or copyrights;
• You need help collecting money from your customers;
• You’ve received a legal notice you don’t understand; or
• You want to get your company’s legal affairs in order so you can get financing. 

 The clinic will be held at the Durham Tech Small Business Center, SOUTHBank Building, 400 W Main St, Third Floor, Durham, NC 27701, from 10 a.m. to 2 p.m. Clients are encouraged to pre-register by calling (919) 536-7241, and will be given an hour-long window in which they will have a 20-minute consultation with an attorney. We will try to fit in walk-ins as best we can, but the wait will be long.

The volunteer attorneys will help you assess your legal needs, give you some basic information and point you toward appropriate resources. 

 NC LEAP assists low-wealth entrepreneurs with their legal needs in starting or expanding their businesses by providing access to pro bono North Carolina business and transactional lawyers.

 The Durham Technical Community College Small Business Center is a state-funded organization which is part of the Small Business Center Network of North Carolina. The Small Business Center (SBC) provides small business owners with information they need for success, including advice on marketing, sales, bookkeeping, and management. 

Image by Getty Images via @daylife

Automatic teller machines. Email. Self check-out lanes at the grocery store. Pay bills by phone or online.

Since 2008, the unemployment rate has dramatically increased, and despite massive federal stimulus efforts, jobs continue to be shed.  Six million people remain unemployed.

I can’t help but wonder if some of these jobs just don’t exist any more, whether people have been replaced by machines.  Is technology permanently reducing the available number of jobs?

President Obama at NC State University in Raleigh:

“The time for hand-wringing is over. The time for moping around is over. We’ve got to kick off our bedroom slippers and put on our marching shoes,” he said.

Obama’s job’s plan calls for tax cuts, infrastructure spending and new job training assistance to be funded by ending tax loopholes for corporations and American families earning more than $250,000 a year. According to the White House the act will create jobs in NC as follows:

• The President’s plan will cut the payroll tax in half to 3.1% for employers on the first $5 million in wages and in North Carolina, 170,000 firms will receive a payroll tax cut under the American Jobs Act.
• The President’s plan includes $50 billion in immediate investments for highways, transit, rail and aviation which would include at least $797,900,000 in North Carolina that could support a minimum of approximately 10,400 local jobs.
• The President plan proposes to invest $35 billion to prevent layoffs of teachers, while supporting the hiring of tens of thousands more and keeping cops and firefighters on the job. The plan will provide $900,300,000 in funds to North Carolina to support up to 13,400 educator and first responder jobs.
• The President’s plan includes a $25 billion investment in school infrastructure that will modernize at least 35,000 public schools across the country including $675,700,000 in funding to North Carolina to support as many as 8,800 jobs.
• The President’s proposed new Pathways Back to Work Fund would provide hundreds of thousands of low-income youth and adults with opportunities to work and to achieve needed training in growth industries and could place 4,000 adults and 12,700 youths in jobs in North Carolina.

Do you support this jobs bill?  How will it help the Tarheel State reduce unemployment? What else would you like from our state and local government?

Related articles

• President to rally support for American Jobs Act in Triangle (charlotte.news14.com)
• On tar and Tar Heels – Obama on N.C. infrastructure (politico.com)

]]>

Image via Wikipedia

But I won’t copyright it that way.

Recently, we’ve had a number of potential clients with copyright questions. So we thought it was time to post some copyright registration FAQs.

1. What can you copyright?  Copyright law protects original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, photographs, drawings, movies, songs, computer software, and architecture. Recipes and web sites sometimes can be protected, It protects the expression of ideas. It does not protect domain names, titles, slogans, most logos, band names, company names, facts, ideas, systems or methods of operation.
2. How do you get protection? Copyrights are created when you “fix” the work in a “tangible means of expression.”  So when it hits the paper, the memory card or the computer RAM, it is protected.
3. What rights are included in the “copyright”? Copyright is a bundle of rights:  the right to copy the work, distribute the work,  display the work, create derivative works, and publicly perform the work.
4. Why should I register my copyright? Technically speaking, copyright protection applies automatically upon creation, but this isn’t as good as it sounds.  Unless you get a federal registration, you cannot sue for infringement and your ability to get damages will be greatly reduced.  Registered works are entitled to certain presumptions under the law, and are eligible for statutory damages and attorneys fees, which makes the case much simpler and more efficient to bring.  Otherwise you have the costly and burdensome job to prove the actual damages you suffered from the infringement.
5. How long does a copyright last? For works originally created on or after January 1, 1978 the term is the life of the author plus 70 years.  If it is a joint work, the term lasts for 70 years after the last surviving author’s death. For works made for hire, and for anonymous and pseudonymous works (unless the author’s identity is revealed in Copyright Office records), the duration of copyright will be 95 years from publication or 120 years from creation, whichever is shorter. Other works have different times of duration, and it is best to discuss the specifics with a copyright attorney.
6. How do I register my copyright? To register a work, submit a completed application form to the US Copyright Office, along with a nonrefundable filing fee, which is $35 if you register online or $50 if you register by mail; and a nonreturnable copy or copies of the work to be registered.
7. What about mailing the work to myself? There is an enduring myth that mailing your work to yourself gives you protection.  This is often called a “poor man’s copyright.” There is no provision in the copyright law regarding any such type of protection, and it is not a substitute for registration. At best, it could prove when the work was created, but there are so many ways to game this system that the practice is virtually worthless. We think this practice provides a dangerous false sense of security. At $35, copyright registration is the most economic intellectual property protection.

Related articles

• But, Honestly, Copyright Protection is as American as Apple Pie, Even on the Internet (NCLawLife.com)
• Copyright Basics for Recording Artists: Protect Your Music (ixiivrecords.wordpress.com)
• US Copyright FAQ (selfpubauthors.wordpress.com)

Image via Wikipedia

Guest post by Annemarie Cleary

What a week we just had in Virginia!  An earthquake, a hurricane with flooding, and swamp fire smoke all in one week.  If last week didn’t convince you to review, or prepare for the first time, a Business Continuity Plan (BCP), then the approaching ten-year anniversary of 9/11 should spur you to action.

The 9/11 attacks destroyed tens of thousands of vital records, irreplaceable documents and art.  The businesses affected lost employee records, customer lists and many, many more documents vital to business operations. As many employers on the East Coast are undoubtedly discovering, it doesn’t take a disaster as devastating as 9/11 to cause an interruption in business.  Earthquakes, hurricanes, floods and fires are just a small sample of the very real disasters that can strike your business.  Are you prepared to pick up the pieces?

Creating a BCP so that you can get your business up and running as soon as possible after a disaster is vital to your company’s long-term survival.  A BCP should include lists of emergency contact information, both internal and external, and a detailed recovery plan and should be developed with employees from all business units and levels of your company.

Begin by assessing the potential risks to your business’ ability to deliver products or services to customers.  Arizona business may need to plan for the effects of an evacuation due to forest fires, but not for a hurricane.  Businesses in North Carolina or Virginia, on the other hand, would be more likely to plan for flooding as a result of a hurricane, for an office fire or even for an earthquake.

After determining the risks that your business might face, consider how to mitigate the effects of those risks on business operations.  The objective is to compile a detailed step-by-step guide to getting your business running again.  You should:

• Identify the employees who are critical to the operations of your business, as well as a backup for each position in case key personnel are not available.  Your list should include every available means of contacting these individuals (e.g., business phone, home phone, cell phone, business and home email).
• Identify the critical products and services you provide to your customers and record the contact information for your most important customers so that you can stay in touch.
• Identify an alternative location from which to operate your business in the event your office is inaccessible.
• Identify contingency equipment options.  If, for example, the equipment your company uses to operate is its computers, contingency equipment options might include identifying which of your employees can telecommute.
• Identify what protections you need to take to preserve confidential client information.
• It is vital that your BCP includes a technology recovery plan.  You should regularly back up important IT data, such as customer lists, banking information, employee records and anything else that would be necessary to starting your business again.  Back up the information and arrange a secure off-site storage location.  Redundancy is the key.

Once you have all the necessary information, put your plan in writing.  Create step-by-step instructions on what to do, who should do it, when it should be done and how.  Ensure that critical personnel have copies of the plan and keep a copy off-site, too.  Then, practice and maintain your plan.  Review your plan periodically and walk through the plan with an imaginary disaster in mind.  Then, make changes where needed.

There are a number of websites that offer additional suggestions on developing a BCP, including the Federal Emergency Management Agency (FEMA) and Inc. .  You can alsocontact your employment attorney for assistance in preparing a plan.

Related articles

• Corporate Damage Control (nclawlife.com)

While many business owners are savvy enough to select the proper entity on their own, many do not understand the difference between trade names and trademarks. Others accidentally give the rights to their logos and other commissioned artwork to their graphic artist and the content of their website to their web host.  Some will think they can choose whether a worker is a contractor or an employee.  A good business attorney can address these issues on the front end, and save much expense and aggravation later.

Likewise, a good certified public accountant isn’t just a number cruncher — he or she is a trusted advisor who understands your business and today’s economic climate.  CPAs evaluate business ideas, plan for growth, minimize taxes, monitor cash flow and help keep proper financial records.  Poorly set up books can make it impossible for companies to track costs, make profits and attract financing.

Those of us that work with startups are familiar with the intersection of  providing value and penny-pinching, and can often work with the bootstrapped entrepreneur on how the services are provided and paid for.

Related articles

• Moving beyond the kitchen table (csmonitor.com)
• Bootstrapping Mistakes You Can Easily Avoid (startupbiz.wordpress.com)
• How to Get Good At Making Money (inc.com)
• About Starting a Small Business (thinkup.waldenu.edu)

Clients are bootstrapping like never before.  There are ways of doing business  that didn’t exist 10 years ago:  virtual assistants, fractional CFOS, co-working spaces.  We can attend meetings or place video phone calls via our laptops.  We store documents and software programs in the cloud.

And more ominously, we are doing more with fewer employees.

How are you becoming more efficient?

Image via Wikipedia

I’ve been involved in Twitter discussion about the word “Mompreneur” based on this article at Forbes.com.  The article posits that women-led businesses have a tough time getting capitalized, especially if their products or services target women or families. @85Broads widened the discussion to whether there is a stigma to “mompreneur“.

As a woman professional, I have watched the “mompreneur” debate from the sidelines for a few years now, along with the related “mommy blogger” debate.

I am a professional.  I am also a mom.  I take both of these roles seriously, and sometimes they overlap. One Saturday, I held a deal together by Blackberry from the Museum of Life and Science.  I have a magnetic Thomas the Tank Engine set in my briefcase for those days where my kid has to come search titles.

I choose not to label myself a mompreneur or a mommy blogger.  Other women in my position embrace these labels.   When a woman self-labels herself a “mompreneur” or “mommy blogger”  (or when we women call each other “broad” or “bitch” or even “honey”), it is empowering because it is a choice and a self-identification.

But when male venture capitalists, investors, backers and bankers  use any of these terms, it is usually to denigrate, belittle or devalue  the women’s business.  It’s often the new shorthand for “Honey, I can’t give you a loan.  You should stay home and take care of your husband, who really deserves access to my capital because he has a family to support.” It’s shorthand for “This is just a hobby.”

Do you think there is  a stigma to being called a mompreneur or mommy blogger?

Oh when will they ever learn?
(Pete Seeger – Where Have All the Flowers Gone, Copyright 1961 (renewed) Fall River Music Inc.

It seems that internet and social media titans Google and Facebook have once again, to no one’s surprise, gotten themselves in some hot water with the FTC and some privacy watchdogs again. They just can’t seem to get the hang of this “privacy” thing. Hence the start of this post.

Google has settled with the FTC over a little faux pas concerning its fabulously fizzled BUZZ service. Trying to combine the best of Facebook and Twitter, they announced BUZZ with typical Google style and fanfare, and just to be hip, they phrased their sign up options thusly:

“Sweet! Check out Buzz”

Or

“Nah, go to my inbox”

Minor problem: The “Sweet!” option gave less than a full and transparent statement of the degree to which users’ information would become public. In essence, Buzz capitalizes on all those emails you never deleted, scanning them for connections that you have or might want to make, or something like that. In other words, they use your private information to build a public social network. I’m sure they studied the 2009 Facebook Privacy policy fiasco in detail, but apparently concluded that Google and BUZZ were somehow “different” as in not subject to the same rules and regulations as their competitors. When folks started to realize that their private information was being shared far more than the casual “Sweet – Check out Buzz” message indicated, they were less than amused, but then, as they dug further they discovered that checking the “Nah” box did not have the effect one might have expected either. Notwithstanding a clearly checked “Nah” box, Google dutifully went right ahead and collected all sorts of information about the non-subscribers, perhaps with the thought that they would be pleased to see all that information stored and ready to go once they finally decided to join the flood of ecstatic BUZZ users, now measuring in the hundreds, or even thousands.

For its thoughtful and condescending violation of its users’ privacy expectations, Google was invited to discuss their philosophy of privacy with the FTC in court, leading to a proposed consent order that requires Google to submit to rigorous FTC audits for the next 20 years.

Facebook’s latest gaffe was to introduce its facial recognition capability as an “Opt Out” feature in June. Described by PC Magazine as “Creepy” and “terrifying,” Facebook’s tool works in the background scanning and analyzing the 200 million or more pictures uploaded every day by its 600 million users. By comparing faces in the pictures in its database with pictures in which your friends have “tagged” you, or you have tagged yourself, Facebook develops an incredibly powerful capability to analyze your movements, your activities, and your associations. Of course, by participating in Facebook in the first place, you already give them a lot of raw material, but this new tool goes one step farther. And it’s a big step.

Even if you opt out, how can you know whether Mr. Zuckerman’s elves won’t continue to analyze your photos with this capability. Or, having opted out, what if being tagged in one photo with one “suspect” and in another with a different “suspect” might provide a link that law enforcement officials would just about do anything to know. Did I say ‘suspect”? Sorry – I meant “subject.” Facebook is not a government agency of course. But then, what, if any, new surveillance capability has not eventually been commandeered by law enforcement, with or without a warrant? I’m not sure I would want to count on Facebook not to give up the goods if the FBI or Homeland Security brought enough pressure to bear. In fact, their privacy policy pretty much makes it a foregone conclusion:

6. How We Share Information

 

 Facebook is about sharing information with others — friends and people in your communities — while providing you with privacy settings that you can use to restrict other users from accessing some of your information. We share your information with third parties when we believe the sharing is permitted by you, reasonably necessary to offer our services, or when legally required to do so. For example:

……..

To respond to legal requests and prevent harm. We may disclose information pursuant to subpoenas, court orders, or other requests (including criminal and civil matters) if we have a good faith belief that the response is required by law. This may include respecting requests from jurisdictions outside of the United States where we have a good faith belief that the response is required by law under the local laws in that jurisdiction, apply to users from that jurisdiction, and are consistent with generally accepted international standards. We may also share information when we have a good faith belief it is necessary to prevent fraud or other illegal activity, to prevent imminent bodily harm, or to protect ourselves and you from people violating our Statement of Rights and Responsibilities. This may include sharing information with other companies, lawyers, courts or other government entities.

Time will tell whether Facebook and Google use these powerful capabilities for good or evil, but they are here to stay, and growing everyday. Even if there is little you can do to block their intrusive reach, you owe it to yourself to actually read the privacy policies of Facebook and any other site to which you submit personal information.

How carefully are you reading the Terms of Service and Privacy Policies of the online sites you frequent?

Image via Wikipedia

As of June 23, 2011, all cities, all counties, and private employers with at lest 25 employees in North Carolina are required to use the federal government’s E-Verify program to verify the work authorization of newly hired employees.
Public universities, community colleges and other North Carolina state agencies are already required to use E-Verify. The new statute applies to municipalities, counties and employers that employ 25 or more employees in North Carolina.

Timeline for employers to register and participate in E-Verify:

• October 1, 2011:  municipalities and counties in North Carolina.
• October 1 2012: Employers who employ 500 or more employees in North Carolina.
• January 1, 2013: Employers that employ 100 or more employees in North Carolina
• July 1, 2013: Employers that employ 25 or more employees in North Carolina

Employers with seasonal temporary employees who work fewer than 90 days in a consecutive 12-month period are excepted from compliance, and the law also does not apply to employers that employ fewer than 25 employees in North Carolina.

An employer covered by the Act will be required to enter a new hire’s information reported on the Form I-9, Employment Eligibility Verification, into the E-Verify program to determine the eligibility of that employee to work in the United States. An employer must retain the records of the verification of the employee’s work authorization during the length of that employee’s employment and for one year after the end of the employment period.

Any person who has a good faith belief that an employer is violating the requirement to use E-Verify may file a complaint with the North Carolina Commissioner of Labor. The complaint may be anonymous. The commissioner will investigate valid complaints and may issue subpoenas for employment records from the employer as part of this investigation.

For a first violation of the Act, the North Carolina Commissioner of Labor will order the employer to file a sworn affidavit within three business days after the determination that the employer has violated the Act. The employer must swear in the affidavit that it has consulted with the employee and requested a verification through E-Verify. Failure to timely file this affidavit subjects the employer to a $10,000 civil penalty. A second violation of the Act subjects the employer to an additional $1,000 civil penalty, and a third violation subjects the employer to a $2,000 civil penalty for each required employee verification that the employer failed to make. The Act contains a provision allowing an employer to appeal the commissioner’s determination that the employer has violated the Act.

 For more information about instituting an E-verify program, please call Donna Ray Chmura at 919-706-4200 or dchmura@sandsanderson.com

Low business costs (18 percent below the national average) and a smart labor force (42 percent have a college degree) make North Carolina’s capital an attractive spot for employers.  Job seekers get it: The net migration rate to Raleigh was the second highest in the U.S. over the past five years.

What makes Raleigh #1 for your business?