Kimberly Stevens

Does your business run on a sales engine or a sales effort? A sales effort is something that has to be done every time you want to make a sale. But, a sales engine is something that, once put into place, can bring you sale after sale without added effort. Here are a couple of examples …A photographer gets to know a handful of bridal consultants that refer every new bride they meet to him. Each time they get a new client, he has the opportunity to get a phone call from that bride without having lifted a finger.A home cleaning company establishes a relationship with organizations that provide temporary corporate housing for companies with newly relocated employees. The temporary housing companies contact the cleaning company each time they have a person vacate one of their units so they can prepare it for the next resident.

Since the nature of the residences is temporary, they have a continual need for cleaning services.In both of these examples, instead of spending valuable (potentially billable) work time on marketing, these companies are earning money. And during the time they do spend on marketing, they are focused on developing long-term relationships with sources of continual referral instead of tracking down each individual purchaser.In the cleaning company example, they could be running classified ads, taking calls, visiting individual homes to provide cleaning estimates, etc. But all that effort only results in one job. There is an opportunity to clean each temporary residence 3-4 times per year. Multiply that figure by the number of units the temporary housing company manages, and you’ve got some regular business rolling in.

And all from one relationship. Now, that’s a sales engine!In the case of the photographer, the service is not being performed for the bridal consultants. It’s being performed for their clients. So, rather than being a repeat-service relationship, it is a referral relationship. However, it is not reciprocal.

By the time the photographer hears from brides, they have already started planning the other elements of their wedding, so it’s too late to refer them to the bridal consultants he knows. But, he could reward the bridal consultants with a referral fee that he creates by either discounting his services when dealing with those brides they refer to him or by marking his services up by 15%.Despite all the stories you hear, most business owners are honest people who have the desire to treat their customers fairly. In the case of the photographer, the bridal consultants provide the brides with a list of photographers that they can choose from. This allows the bride to make her own decision based on quality/price rather than being pushed into a relationship with a particular photographer.Would you prefer to invest your time in building a relationship that brings you sale after sale or one that brings you a one-shot sale? It’s not magic. It’s not a get-rich quick scheme.

It’s a simple key to business success.So, the question is .. are you going to spend this afternoon pitching one account that could lead to one job or building a relationship that could lead to several jobs? Don’t get me wrong — it can take more than an afternoon to establish the most ideal relationships. But, in more cases than not, it’s no more difficult to form this one relationship than it is to form any other.Start your sales engine.

Kimberly Stevens

Anyone who owned a business in the U.S. in 2002 knows the difficulties that a poor economy can cause. Even those in other countries who may have operated under better economic conditions last year have or will experience downturns in business. Well, 2002 is over, so how do you regroup to face 2003 with optimism and a fresh game plan? That was the topic of discussion in my recent coaching session with Denise. “The economy can’t possibly be as terrible this year as it was last year, can it?” she asked.

“I mean, I’m really struggling to get new jobs from my current clients much less bring on new clients.” “Well, it does seem like the economy is taking a longer time to rebound than anyone expected, so let’s see what we might be able to do to shore up your business during this down time.” During the rest of our conversation, we set a new agenda focused on strengthening relationships with current clients, further distinguishing herself from her competitors, and approaching segments of her target market that she’d never really considered. By strengthening her relationships with her current clients, she is ensuring that they will return to her when things do pick up instead of hiring some writer they’ve recently met who was more in the forefront of their mind. By focusing on identifying more ways to distinguish herself from her competitors, she is making sure that if she does get the opportunity to make her pitch to a business that is hiring now, they will be more apt to hire her over her competition. But, the most significant way you and Denise can get new business coming in the door now is to identify and approach segments of your target market that you’ve previously ignored. People and businesses haven’t completely stopped spending money, but many have cut back significantly.

Your job is to find those that are still hiring people to provide the service you sell. You can do this by focusing in on one or two market segments within your target market and really going after them. Segments are smaller groups that fall within the larger label “target market.” Let’s say your target market is “business owners.” Well, there are a lot of industries represented within the group called “business owners.” And finding, reaching, and pitching your services to each one takes a different approach. The “business owner” group could include: * freelance writers * caterers * interior designers * florists * house cleaners * doctors * landscape planners * recruiters * accountants * architects * massage therapists * dry cleaners And, I’m sure you’d agree that these people do not likely belong to the same networking groups, read the same national publications, attend the same annual conferences, or buy the same support services. Additionally, they don’t have the same needs or care about the same things.

If you go out into the marketplace in an attempt to reach “business owners” with one marketing message, nobody in the group is going to hear the specific message they want to hear – “what’s in it for me?” It’s impossible to answer that question for all the diverse groups that make up the whole category of “business owners.” So, what’s your target market and can you identify segments within it that might represent new opportunities for you in 2003? And, further, how can you locate, approach, and sell to them? Take some time to think about it this afternoon. It will be well worth your investment.

Lenore Wright

Hundreds of writing contests tempt screenwriters with the lure of prize money, instant film industry contacts and personal feedback from film professionals. But contests can be costly, screenwriters should choose intelligently.Before you write that check, research and evaluate the contests that interest you. Narrow down your choices to the best contests for you personally and the best ones for your scripts. These guidelines might help:TIPS FOR RESEARCHING CONTESTS> Check out their website >Nearly all contests have an online page with guidelines and other vital details. I know it's tempting to salivate over the prize list and ignore the other features available on the site.

Don't let the promised goodies distract you –> $10,000 and a trip to Hollywood to meet the film industry movers and shakers you dream of impressing. You're on a mission. You need to find out if the contest has preferences regarding the subject matter of the script, the ethnicity/gender of the author or the area where the writer resides. Shortcut: At the very least read the FAQ page and note the submission deadline. > Rely on peer reports >If you belong to any online screenwriting discussion lists (and you should!), post a query about the contests you're considering.

Learn from the experiences of others. Movie Bytes offers a very useful feature to help you: Contest Report Card. Writers evaluate contests they've entered and post their comments. Take advantage of this wonderful resource: > Feedback, feedback, feedback >Unproduced writers need professional feedback. Some contests offer feedback on your script as part of the package.

Even if you don't win, you've received some extra value for your money. If the source of the 'professional feedback' is not listed on the site, send an email requesting this information. It's important — pin them down!> Script readings >Some contests offer a staged reading of the winning script (or the scripts of all the finalists) as part of the prize. Script readings can be a great tool to help you polish your script as well as good industry exposure. Insider tip: Film festival script competitions in particular seem to offer script-reading opportunities to their finalists.TIPS FOR EVALUATING CONTESTS> Sponsors >The people or companies sponsoring the contest should identify themselves and they should have film industry credentials.

Some contests feature a well-known director, actor or producer as a nominal sponsor, implying that this person will read the final scripts or at least the winning one. If that is so, it should be stated in their guidelines or on their website - don't just assume it's true. > Judges >Some contests post their judges' names and credentials. I find this reassuring; however many legitimate contests don't make this information available for various reasons, not necessarily because they're hiding something shady. A general guideline: The less information the contest makes available, the more aggressively you should query the contest contacts before your write them a check.

> Press releases >You want to win a contest that makes an effort to publicize their winners. When you come across the press releases of contests that tout their finalists or winners, resist pitching a rant at your agent; instead swallow your envy and jot down the contest details so you can enter the next time around. > Paid ads announcing winners >The most helpful form of publicity for contest winners are paid ads in the film industry trade papers. This species is rare; but when you come across it, make a note to at least research the contests that promote their winners in Variety, Hollywood Reporter and the major film magazines.> Industry contact >Many contests promise the winners and/or finalists will be exposed to important film industry contacts. Vague promises or inuendoes don't count.

The legitimate contests get specific about what they mean by exposure. Exposure could mean a phone conversation with an agent, a script submission to a studio slushpile, a professional pitching session or an all-expense-paid trip to Hollywood or New York City. Find out.> Production promises >Some contests promise that the winning script or scripts will be produced. Yipee! But do they back up this promise with results? Find out - call their bluff. Tip for cynics: Request a contact email for a previous winner or finalist.IN SHORT: BE CHOOSY!I hope these guidelines help you find a contest that works for you and your script.

Be choosy - it's your money, your script, and your career.FEEDBACK: screenwriter@breakingin.ne.

Margaret Stead

Copyright 2006 Margaret Stead

A call today on our Redundancy Hot-Line started us thinking again about the contradictory implications of old legislation on new rulings on Ageism, due to come into force in the UK in October 2006.

At the moment the European Equal Treatment Directive, commits the UK Government to introducing legislation outlawing age discrimination in employment and vocational training, by October 2006, but critics say that so far the government has been acting only in employer’s best interests.

In July 2005, the Government published the draft regulations on age discrimination. Whilst the regulations are subject to further consultation and some elements may therefore change, they provide a strong indicator as to how the legislation will be implemented in 1st October 2006.

Under the draft Regulations, the Government is proposing that the qualifying lower and upper age limits for redundancy payments and the right to claim unfair dismissal is to be scrapped.

For each complete year of continuous service between the ages of 18 and 21, employees receive half a week's pay. For each complete year of continuous service between the ages of 22 and 40, they receive one week's pay. For each complete year of continuous service between the ages of 41 and 65 you will receive 1½ weeks' pay.

Current rules state that once an individual reaches 64, the amount due is reduced by one-twelfth for every complete month you are over 64. This means that if you are 65 or over you are not entitled to any payment!

To help you work out any payment, the UK Department of Works and Pensions kindly provide a Ready Reckoner for calculating the number of week's pay due.

(For an official definition of a week's pay you'll need to consult Redundancy Payments. 

The level of statutory redundancy payments in the UK is already among the lowest in the EU and the level of the 'multiplier' (week's pay) is still to be determined!

The Government is proposing that the current service-related qualifying periods to make claims and the use of length of service (20 year cap) in calculating payments will remain.  

These current 'tapering down' provisions, which reduce awards in the period leading to the current upper age limit, will end, as will the use of age bands in calculating payments.

Whilst there is some support for the decision to maintain the length of service factor in the calculation of compensation, observers believe that the 20 year cap on length of service is unfair and arguably indirectly discriminatory.

With regards to redundancy, the consultation paper states that a policy objective is to encourage culture change whereby employers retain workers past retirement age “Because they recognise the continued valuable contribution that they can make, not because it is cheaper to make them redundant”. (IPD. Policy Document - Age Positive clearly states that research finds no age difference in worker's effectiveness)

However an alternative view, is that the setting of a default retirement age will encourage some employers to retire workers once they reach 65 rather than face higher redundancy costs should this situation arise once the worker is over the default retirement age.

Despite the assertion in the consultation document that the default retirement age is not a mandatory retirement age, it is believed by trade unions that many employers may seek to treat it as such.

In our opinion, older workers should receive 'Affirmative Payment' recognising their length of service and taking into account that a person made redundant after the age of 50 is eight times less likely to return to work than a person made redundant at a younger age (Employment and Older People: Help the Aged Policy Statement 2004)

Employment lawyers suggest that employers should now check their redundancy schemes and, as with the statutory scheme, remove any unjustifiable age-discriminatory provisions. Employers should also be careful of selecting employees for redundancy in a way that could be considered discriminatory.

Redundancy selection based on “flexibility” or “last in, first out” could be construed as discriminatory and should be examined sooner rather than later.

The biggest impact the legislation will have is on dismissal procedures. Upper age limits for claiming redundancy or unfair dismissal is extended beyond the normal retirement age. It is advisable for the employer to set a new retirement date.

Failure to do this will increase the risk of the employee claiming that the real reason for any future dismissal is not retirement, but for some other reason such as 'redundancy' or 'capability.' In such a case according to Richard Butler International Lawyers, "The dismissal would be unfair, unless the statutory procedure has been followed."

Failure to follow the proper procedure on retirement could expose the employer to an unfair dismissal claim resulting in a basic and compensatory award of a maximum of £58,400. (as of February 2006) or possibly an order for reinstatement or engagement. Potential claimants will have three months (from the date the complained of took place) to being a claim in the Employment Tribunal.

(County Court - six months)

Employers should decide their position on age, audit employment policies for age bias, particularly considering for example recruitment and benefit schemes, access to training and opportunities for promotion, equal opportunities and redundancy policies.

A planned retirement procedure should be formulated and a 'duty to consider' procedure. Employers should start NOW as eradicating ageist attitudes and implementing change will take time.
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lawrencesolok

The IRS issued the February 14, 2006 Quality Assurance Bulletin (“QAB”) dealing with 401k plan exclusions of part-time, temporary, and seasonal (A.K.A. “part-time”) employees. This QAB revolutionizes the way IRS document examiners will look at 401k plan eligibility clauses and warns that inadequately drafted provisions dealing with part-time employees may be disqualifying, regardless of any plan determination letter.
Why the Attack ?
As 401(k) plans have matured, newly recruited employees are no longer willing to wait the traditional 1000 hour, one-year eligibility period to begin participating. Many employers are liberating their traditional 401k plans of a 1000 hr year wait by allowing immediate eligibility, at least for the deferral portion of the plan.
Other employers, while permitting immediate eligibility, wish to also avoid covering part-time employees because of :
(1) the negative effect on the ADP test as part-timers seldom contribute and will be counted as a zero.
(2) the administrative costs of adding and deleting new employees and
(3) the part-timers’ zero balance will prescribe a top heavy contribution.

Employers are now looking to provide immediate deferral entry and simultaneously exclude part-timers as a classification
The Problem: Treas. Reg. §1.410(a)-3 notes that a service condition requiring more than one thousand hour year of service is invalid. In other words what matters is that the plan as written, could have a service requirement in excess of the Code §410(a) limits, which is enough to disqualify the plan. Therefore, as a class part-timers can not be excluded.

IRS additionally addressed this issue in the following:
• A 1994 Field Directive instructed IRS examiners to challenge plans which had these service requirements.
• the IRS modified Publication 794, which accompanies determination letters, added the following : “A determination letter may not be relied on with respect to whether a plan’s exclusion classifications, if any, violate the minimum age or service requirements of section 410 by indirectly imposing an impermissible age or service requirement.”
• A 2002 Recurring Issue Focus (“RIF”) told IRS examiners that this would be an audit issue, not a determination letter matter.
IRS 401k Attack
Effective with the February 14, 2006 QAB the IRS examiners will again challenge 401k plans with the “part-time” exclusions. Examiners will not be challenging an exclusion classification that is defined without reference to hours of service (e.g., hourly paid employees). The QAB states:

Specialists should take note that the issue of whether a plan is providing a direct or indirect service requirement is not limited to part-time or seasonal employees.

Any exclusion classification, whether it be part-time, seasonal, temporary, or any other classification of employees, should be closely scrutinized. Specialists should require that any such classification be clearly defined.

Employer’s 401k Triumph
Plan sponsors should carefully examine their 401k plans if they currently exclude part-time employees from participation. If the plan does not have a fail-safe to assure that the plan will comply with Code §410(a), the sponsor should consider amending the plan.
The employer could regain the provision by including fail-safe language for the condition where the employee works more than 1,000 hours of service during a plan year. The plan can exclude part-time employees as a classification until they meet the year of service requirement, even though full-time employees enter immediately.

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