Latest Small Business News 9/13/19

The Latest on California’s Contractor Law

 Just this week California passed major legislation with the hope of helping individuals currently working as “independent contractors” become employees. As an official employee, workers have the benefit of being required to earn a minimum wage and receive payment for overtime, in addition to other benefits like health insurance and paid sick leave. Of course, with so many businesses and workers thriving in what is known as the “gig economy”, this legislation is being fought from both sides, leaving everyone more than just a little confused as to what’s going to happen next.

Uber, one of the biggest targets for the new California law, is already taking sides, standing firmly with their statement that their drivers will not be covered as employees and, instead, will remain contractors. Legally, Uber looks like they might be able to get away with this angle, so long as they can “prove that (as a company) it didn’t direct and control them”.

The new law, which is slated to go into effect on January 1 of next year, has more than just Uber on its toes.

Other groups, including small churches and synagogues, are concerned about the feasibility of affording “making pastors and rabbis employees. The state’s winemakers and franchise owners are also concerned about what their future will look like once the law takes effect, having for decades worked with contractors at hourly rates in order to keep their businesses afloat.

For small businesses, especially, in order to keep their businesses operating as is without being impacted by the new legislation, they’ll need to prove, like Uber, that the work done by contractors is not part of the “company’s main business”. And, furthermore, that the work being done is not directed by the company.

According to an article in the New York Times, “California has at least one million workers who work as contractors and are likely to be affected by the measure, including nail salon workers, janitors and construction workers”.

And while you can find businesses, contractors, and employees on both sides of the debate, it’s important to remember the ethics behind it all. According to Robbie Hunter, the head of the state building trades council that represents construction worker unions in California, companies that work off of apps and that use “independent contractors who make very low wages” to be profitable are seriously “undercutting brick-and-mortar businesses doing the right thing — paying for workers’ compensation, being very efficient, working hard to make a profit”, which means that them being held accountable by the new law could be the advantage needed for businesses that are wanting to truly take care of their workers.

 

On to the Text One: 3 Ways to Use Texting to Improve Your Business

 Smart businesses owners know that texting isn’t just for group messages about where the next game night is being hosted and who’s bringing casserole to the potluck. When businesses choose to integrate texting into their communication strategy, they are actually giving customers what they want - not bothering them, which is the common belief held by many small business owners. In fact, if you’re still wondering if you should pull the trigger on your business texting idea, keep in mind that “64% of consumers believe that businesses should use SMS messages to interact with customers more often than they currently do.”

Want to build a loyal tribe for your business? Texting is one of the best ways to do that. Not only do your customers want to hear from you, but they want to find ways to interact with you. (77% open text messages from businesses when they offer coupons and 48% open messages just because they want to be in the loop.)

Here are three ways you can integrate texting into your business model to improve customer relations - and sales.

1.     Offer More Engaged Communication Option. Your customers find texting easy and convenient, which is why it’s a great medium for brand communication. While emails only get opened 20% of the time, texts get opened 98% of the time - and that’s huge.

2.     Reminders for Appointments. For service companies, texting reminders is essential. When you help your customers know when to expect their next service, it helps to keep cancellation rates down, which helps you to keep your revenue up.

Distributing Coupons and Deals. Within minutes of sending a text message (three, to be exact), 90% of your customers will open it, which means it’s a great way to extend limited time offers and sales. By using scarcity strategies, like “Only Today!” or “The First 10 People!”, you can encourage your audience to take action quickly.