What Every New Business Owner Should Know

What Every Business Owner Should Know

You have a great idea for a new business – perhaps a new product that could be incredibly useful, a new technology that could change the way we use AI, or you’re a newly licensed professional in your field. Whatever the idea, getting started can feel overwhelming and may have you asking:

  • What type of entity should I set up? Do I need to be an LLC?
  • Do I need an EIN or a bank account?
  • What are compliance requirements for my business?

These are common questions new business owners face. For many people, starting a business is outside of what they’ve learned in their professional training or personal experience. Understanding where to start, what requirements need to be met, and who to turn to for guidance can make the process much easier. We’ll provide some insights on  what to consider when starting a business and how to build a team of professionals who can provide guidance and support along the way.

Entity Types

One of the first decisions you’ll make when starting a business is choosing an entity structure. This decision is important because it can affect both the legal protections available to you and how your business is taxed. Some entity types depend on whether you own your business alone or with others. There are advantages and disadvantages to all of them, so it’s important to consult with an attorney and CPA before deciding which structure is right for your business.

  1. Sole Proprietor – A sole proprietorship is the simplest way to operate a business when you are the only owner; you and the business are considered one and the same. There is no legal separation between the business and the business owner. This is a simplistic form of ownership because there is no need to apply for a separate tax ID, bank account or file a separate income tax return. An important thing to note is that this type of structure also offers no legal protections. This means you may be personally responsible for business debts, obligations, and legal claims. The income or loss related to a sole proprietorship is reported on your individual income tax return. Additionally, net income from the activity is generally subject to self-employment tax.
  2. Limited Liability Company –  An LLC, or Limited Liability Company, is a popular choice for business owners because it can provide liability protection while offering flexibility in how the business is taxed. The assets and liabilities of the LLC are considered separate for legal purposes and therefore add protection for the owner’s personal assets. An LLC, however, is a legal business structure, not necessarily a tax structure. For federal tax purposes, an LLC may be treated as a sole proprietorship, partnership, S Corporation, or C Corporation, depending on its ownership and any elections made with the IRS. This flexibility allows business owners to choose a tax structure that may better fit their circumstances as the business grows. The tax treatment will determine how business income is reported and whether self-employment or employment taxes apply.
  3. Partnership – A partnership is formed when there are two or more owners of a business. A partnership may be structured as a Limited Liability Company (LLC), a General Partnership (GP), or a Limited Liability Partnership (LLP). Each structure has different requirements for ownership, capital contributions, and liability protection. If you are active in a partnership, there will be self-employment earnings. A partnership is a type of pass-through entity. This means that all income and losses are reported first on a partnership tax return, and are then passed down to the owners via a Schedule K-1. The owners then report the income or losses on their individual income tax return and pay the tax at the individual level.
  4. S Corporation – A business may elect S Corporation tax treatment if it meets certain requirements, including limitations on the number and types of eligible shareholders. Similar to a Partnership or Single Member LLC, the assets and liabilities of the S Corp are separate from the individual, but the income and loss activity is still reported and recognized by the individual owners. One of the primary advantages of an S Corp is the potential to reduce the amount of business income subject to self-employment taxes through reasonable compensation paid to the shareholders as wages. However, this adds an additional requirement of having payroll and issuing owners a W-2. An important aspect of S Corp is that the distributions to the shareholders should be pro-rata based on ownership percentages.
  5. C Corporation – A C Corporation is a separate legal and tax-paying entity from its owners. For tax purposes, the C Corp is treated as its own taxpayer, separate from the individuals who own its stock. For a new business owner that anticipates taking the company public or selling their stock to many investors, this may be a great option. However, the biggest downside to a C Corp is that they are subject to double taxation. This means the C Corp pays taxes on its profits first. If those profits are later distributed to shareholders as dividends, the shareholders must also pay taxes on the dividend income. As a result, the same income may be taxed twice. Unlike pass-through entities,  C Corps pay taxes on their profits at the corporate level using a separate federal income tax rate rather than having business income taxed directly on the owners’ individual income tax returns. 

Regardless of which entity structure you choose, maintaining accurate and separate business accounting records is essential. Good recordkeeping helps you monitor your financial performance, stay organized for tax purposes, and make informed business decisions.

Business Registration

Once you’ve decided which entity structure is right for your business, the next step is to complete the necessary legal registrations with state and local authorities, as well as applicable taxing agencies. Our discussion is focused on Mobile and Baldwin County Alabama entities, however many states have similar structures.

  1. State Registration – All Alabama business entities, except sole proprietorships, will need to register with the Secretary of State (sos.alabama.gov). First, you must reserve the business name. After filing the business name reservation, you will fill out the Secretary of State’s Registration form.
  2. Local Registration – Following the completion of the state registration, you’ll start the registration process with counties and local municipalities.
    • County and State Business Licenses – Depending on the nature of your business and applicable local requirements, you may need business licenses in the counties where you conduct business, not just the county where your business is located. County business licenses are issued by the County Probate Judge or by the License Commissioner.  The business license will serve as your license for both the state and the county.
      1. In Mobile County the business license application can be found on the Mobile County License Commission’s website https://www.mobilecountylc.gov/licensing-and-permits/.
      2. In Baldwin County, the business license application is submitted to the Judge of Probate and can be found at https://baldwincountyal.gov/permits-and-licenses/business
    • Municipal (City) Business Licenses – A business license is required for each city in which business is conducted. You will need to check with each city to determine if they require a business license for your particular business.
    1. Tax Authority Registration
      1. Federal – A Federal Employer Identification Number (FEIN), issued by the IRS, is required for any business structure other than a sole proprietorship. An FEIN would be required for a sole proprietorship if they have payroll. You can apply online for a FEIN at https://www.irs.gov, (type FEIN in the search bar).
      2. State and Local – Depending on your business activities, you may be required to register for and remit several types of taxes at the state and local levels. Following are some of the taxes that may be required, depending on your type of business:
    • Withholding Taxes, if you have payroll
    • Sales, Consumer Use, or Sellers Use Taxes
    • Lease/Rental Tax for tangible property
    • Lodging Tax

    In the City of Mobile and Mobile County, the applications for a business license, referenced above, will also include an application for applicable taxes.

    For most cities and counties in Alabama, the sales, use, lease/rental, and lodging taxes can be filed and paid through the MAT website. Some localities may require you to file through another third party processor, such as Avenu.

    In the state of Alabama, you will need to register on the My Alabama Taxes (MAT) website (https://myalabamataxes.alabama.gov) and click on the link for Register a New Business/Obtain a New Tax Account Number. The application will cover any applicable tax types.

Building A Team of Advisors

In addition to meeting the compliance requirements of owning a business, it is equally important to build a team of advisors who can work alongside you as your business starts and grows. You’re the expert in the product or service your business provides, but there are other professionals who specialize in areas that are important to running a successful business. The following are some examples of professionals who can be part of your team of advisors.

  1. CPA – At Crow Shields Bailey, we understand the importance of having a CPA who knows you, your business, and your goals. CPAs provide a wide range of accounting services, from bookkeeping and payroll to preparing financial statements and ensuring tax compliance. Beyond these essential services, your CPA can serve as a trusted advisor, helping you with financial projections, forecasting, and tax planning throughout the year. A strong relationship with your CPA provides valuable insight into your business’s financial health and helps you make informed decisions as you plan for the future.
  2. Attorney – Attorneys are important from the start to the finish in a life cycle of a business. These professionals will guide you on Operating Agreements, writing or reviewing contracts, employment agreements and any litigation that may come your way. They are there to guide you through legal challenges as they arise but also to ensure that your business, and you personally, are protected. Having an attorney in your corner can get ahead of legal troubles and also protect the future of your business.
  3. Financial Advisor – A financial advisor can help you make the most of the money you’ve worked hard to earn. They can provide guidance on investing business profits, developing retirement strategies, establishing retirement plans for you and your employees, and building wealth for the future. Having a financial advisor on your team can help ensure that both you and your employees are financially prepared for the years ahead.
  4. Banker – Building a strong relationship with a banker can be a valuable asset to any business. As your business grows, you may need financing, additional banking services, or different types of business accounts. Having an established relationship with a banker can make navigating these needs much easier. A banker who understands your business and its goals can help you explore financial options and provide guidance as your needs change. Additionally, bankers often have valuable connections within the local business community and may be able to introduce you to other professionals who can help support your business’s growth.
  5. Payroll and Human Resources Professional – Payroll and human resources (HR) can become increasingly complicated as your business grows and you begin hiring employees. From managing payroll and staying current with employment regulations to handling employee benefits, onboarding, and workplace policies, these responsibilities can quickly become overwhelming. A payroll and HR professional can help ensure employees are paid accurately and on time, required tax deposits and filings are completed, and your business stays compliant with applicable employment laws and regulations. Having someone who understands these responsibilities can save you time, reduce the risk of costly mistakes, and allow you to focus on running and growing your business.
  6. Mentors in Your Field – Building relationships with other individuals in your industry who have successfully started and continue to operate businesses can provide a wealth of knowledge and insight. These individuals may have faced many of the same challenges you encounter and can share valuable experiences, lessons learned, and advice along the way. A mentor can serve as a trusted sounding board, offering guidance and perspective when things are going well and when challenges arise. Having someone who understands your industry and has firsthand experience can be an incredible resource as you navigate the ups and downs of owning and operating a business.

Building a team of trusted professionals who work together to support you and guide your business as it grows can be one of the most valuable investments you make as a business owner.

Starting a business is an exciting journey filled with opportunity, hard work, and important decisions. While there is a lot to consider along the way, you don’t have to navigate the process alone. Surrounding yourself with the right team of professionals and advisors can make all the difference. They can help you build a strong foundation, make informed decisions, navigate challenges, and position your business for long-term success.

At Crow Shields Bailey, we enjoy helping business owners turn their ideas into successful businesses. Whether you’re just getting started or looking for guidance as your business grows, our team is here to help you navigate each stage of your business journey.

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Restaurant Revitalization Fund

Restaurant Revitalization Fund

The American Rescue Plan Act of 2021 includes $28.6 billion in nontaxable grants for restaurants and restaurant-related businesses. This program will provide relief for many businesses in the restaurant industry, assisting in recovery from 2020 and to make it through the next few months, as states begin to reopen and vaccine distribution increases. Projections indicate some time in May or June of 2021 for a potential operational date.

Guidance is still limited to statutory language, and additional guidance is expected in the coming weeks. For now, this is what we know.

  • What type of entity is eligible for a restaurant revitalization grant? Eligible entities include restaurants; food stands/trucks/carts; caterers; saloons; inns; taverns; bars; lounges; brew pubs; tasting rooms; taprooms; licensed facilities or premises of beverage alcohol producers where the public may taste, sample, or purchase products; or other similar places of business in which the public or patrons assemble for the primary purpose of being served food and drink. Any of these entities located in an airport terminal or that is Tribally-owned is also eligible.
  • What type of entity is not eligible? Entities above that are state or local government-operated; entities that as of March 13, 2020, own or operate (together with any affiliated business) more than 20 locations, regardless of whether those locations do business under the same or multiple names; entities which have a pending application for or have received a Shuttered Venue Operator Grant; or any entity that is a publicly-traded company.
  • What is the definition of “affiliated business?” A business in which an eligible entity has an equity or right to profit distributions of not less than 50%, or in which an eligible entity has the contractual authority to control the direction of the business, provided that such affiliation shall be determined as of any arrangements or agreements in existence as of March 13, 2020.
  • How does an eligible entity determine the amount of the grant? The amount is equal to the pandemic-related revenue loss of the eligible entity. The total grant will not exceed $10 million and is limited to $5 million per physical location.
  • How does an eligible entity calculate its pandemic-related revenue loss? For an entity that was in operation for the entirety of 2019 and 2020, the pandemic-related revenue loss is calculated by subtracting the 2020 gross receipts of the eligible entity from the 2019 gross receipts of the eligible entity.

For an eligible entity that was not in operation for the entirety of 2019, the pandemic-related revenue loss is calculated by taking the difference between the average monthly gross receipts of the eligible entity in 2019 multiplied by 12 and the average monthly gross receipts of the eligible entity in 2020 multiplied by 12. The Administrator may issue a separate formula to determine this amount.

For an eligible entity that opened during the period beginning on Jan. 1, 2020 and ending March 10, 2020, the grant amount is the amount of eligible expenses incurred less any gross receipts. The Administrator may issue a separate formula to determine this amount.

For an eligible entity that has not yet opened as of the date of grant application, but has incurred eligible expenses, the grant amount is equal to the amount of those expenses. The Administrator may issue a separate formula to determine this amount.

For all eligible entities, the pandemic-related revenue loss is to be reduced by any amounts received from a Paycheck Protection Program (PPP) loan (2020 PPP and 2021 PPP, if applicable).

  • How does an eligible entity compute gross receipts? The SBA has not yet issued guidance on how to compute gross receipts. However, an eligible entity may wish to determine gross receipts utilizing the SBA PPP gross receipts criteria to estimate the pandemic-related revenue loss. For a for-profit business, gross receipts are defined for PPP as All revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. 2. These terms carry the definitions used and reported on IRS tax return forms.

Gross receipts do not include the following: 1. Taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers (this does not include taxes levied on the concern or its employees); 2. Proceeds from transactions between a concern and its domestic or foreign affiliates; and 3. Amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker.

All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts.

  • What costs are considered eligible expenses? Eligible expenses are: Payroll costs (as defined under the PPP), except for qualified wages taken into account in determining the Employee Retention Credit or premiums taken into account in determining the continuation coverage premiums credit under the American Rescue Plan Act of 2021; 2. payments of principal or interest on any mortgage obligation (no prepayment of principal allowed); 3. rent payments, including rent under a lease agreement (no prepayment of rent allowed); 4. utilities; 5. maintenance expenses including construction to accommodate outdoor seating, and walls, floors, deck surfaces, furniture, fixtures, and equipment; 6. supplies, including protective equipment and cleaning materials; 7. food and beverage expenses that are within the scope of the normal business practice of the eligible entity; 8. covered supplier costs; 9. operational expenses; 10. paid sick leave; and 11. any other expenses provided by the SBA Administrator.
  • What is the covered period? The period beginning on Feb. 15, 2020 and ending on Dec. 31, 2021, or a date to be determined by the SBA Administrator that is not later than March 11, 2023.
  • Is there a priority in awarding grants? Yes, During the initial 21-day period in which grants are awarded, Congress instructs the SBA to prioritize grants to eligible entities that are small business concerns owned and controlled by women, small business concerns owned and control by veterans, or socially and economically disadvantaged small business concerns.
  • Is the grant taxable and/or is an eligible entity allowed deductions for covered expenses paid for with the grant funding? The grant is exempt from federal taxation and no expenses are disallowed as a result of the use of the grant funding.
  • How does an eligible entity apply? The SBA has not yet announced how to apply. Congress has instructed the SBA to prioritize the ability of each applicant to use their existing business identifiers over requiring other forms of registration or identification that may not be common to their industry.
  • What can an eligible entity do now to prepare? An eligible entity should use the SBA PPP provided gross receipts definition to compute the decline in gross receipts and then subtract from that amount any funding received from any PPP loan.
  • Does an eligible entity need to make any certifications on the application? There may be more certifications to make than this, but the statute requires an eligible entity to certify that 1. The uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity, and 2. the eligible entity has not applied for or received a Shuttered Venue Operator Grant.
  • Is there a forgiveness application? This is a grant program and not a loan program. However, there may be reporting required to substantiate that the grant was utilized for allowable purposes.

We will release more information once more guidance is released on this matter. If you have any questions, please contact us at 251-343-1012.

Crow Shields Bailey PC – SBA Loan & Loan Forgiveness Information

Our team has been researching around the clock to keep you up to date on the latest details regarding the COVID-19 crisis. What we currently know is that the CARES Act that includes the Paycheck Protection Program (SBA Loans) has been signed by the President, but the banks are still waiting guidance from the SBA. We have spoken with numerous bankers, and although they do not know the specifics of what will be required for the loan application, they have suggested to us that you start gathering the following information. It is imperative that you have this to us as soon as possible. $350 billion has been set aside for this program, but those funds will move quickly because everyone in the country will be applying. As far as we know, loans will be processed on a first come, first serve basis. There may be additional items they will require or the items below may change, but as of today, this is what they think will be required. Please call us at 251-343-1012 with any questions you have so we can have you at the front of the line with your bank.

  • Personal and Business Financial
  • Business Financial Info
  • Business Ownership (Articles of Inc., Operating Agreement, etc.)
  • Business Overview/History
  • Copies of Business Leases
  • Description of how COVID-19 has impacted your business
    • Outline income shortfalls
    • Have you experienced any supply chain or other business interruptions?
    • Have you experienced a delay in receipt of accounts receivable?
    • What steps have you taken to anticipate or mitigate risk related to the Coronavirus (i.e. contingency plan, travel ban, work from home, quarantine, business closure etc.)?
    • Employees retained during impacted period
    • Utility Costs
    • All scheduled debt and lease payments made during impact.
    • Number of employees, payroll cost and frequency
  • Monthly payroll costs for the past twelve months
    • Payroll costs include the sum of the following:
      • Salaries, wages, or commissions
      • Payment of cash tip or equivalent
      • Payment for vacation, parental, family, medical, or sick leave
      • Allowance for dismissal or separation
      • Payment required for the provisions of group health insurance premiums
      • Payment of any retirement benefit
      • Payment of State or local tax assessed on the compensation of employees

A summary of the loan program is below. Let us know how we can best serve you.

Maximum Loan Amount During the covered period, with respect to a covered loan, the maximum loan amount shall be the lesser of  the average monthly payroll costs incurred during the 1-year period before the date on which the loan is made  times 2.5 or $10,000,000, whichever is less.

Loan Maturity Maximum of 10 years from the date on which the borrower applies for loan forgiveness under that section. Covered Loans will be required to be deferred for 6 months to a maximum 12 months

Fees: All SBA Guaranty Fees normally applicable to the 7a loan will be waived

Certification As a condition of receiving a loan under this section, a borrower shall certify under terms acceptable to the Secretary that the borrower— (1) does not have an application pending for a loan under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for the same purpose; and (2) has not received such a loan during the period beginning on February 15, 2020 and ending on December 31, 2020.

Loan Forgiveness Borrowers are eligible for loan forgiveness equal to the amount spent by the borrower during an eight-week period after the origination date of the loan on the following items: payroll costs; interest payment on any mortgage note incurred prior to February 15, 2020; payment of rent on any lease in force prior to February 15, 2020; and payment on any utility for which service began before February 15, 2020.

  • Amounts forgiven may not exceed the principal amount of the loan. Eligible payroll costs do not include compensation to any employee above $100,000 in wages.
  • Amounts forgiven will be reduced proportionally by any reduction in employees retained during the eight-week period after the date of the loan as compared to either (i) the period from February 15, 2019 to June 30, 2019 or (ii) the period from January 1, 2020 to February 29, 2020. The borrower can elect the period of time used for the analysis.
  • Amounts forgiven will also be reduced by the reduction in pay of any employee beyond twenty-five percent (25%) of their compensation for the most recent full quarter during which the employee was employed.
  • Borrowers that re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period.
  • The remaining loan balance of any portion of a loan that is not forgiven will have a maturity of not more than ten (10) years

Crow Shields Bailey PC – SBA Disaster Assistance Loans

SBA to Provide Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19)

  • Who is eligible?
    • These loans are for small businesses, agricultural cooperatives, aquaculture enterprises, and nonprofits affected by disaster to help meet working capital needs or normal business operating expenses through the recovery period. They are available to for profit and non-profit companies.
    • Small businesses, for purposes of these loans, have 500 or fewer employees.
  • What can these loans be used for?
    • Loans may be used to pay fixed debts, payroll, accounts payable, and other operational bills that can’t be paid because of the disaster’s impact. They cannot be used to expand or refinance existing debt or cover lost profits.
  • What is the maximum loan offered?
    • $2 million
  • What is the interest rate on these loans?
    • The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
  • What is the term of these loans?
    • SBA offers loans with long-term repayments up to a maximum of 30 years. Loans are determined on a case-by-case basis, based on each borrower’s capacity for making monthly loan repayments.
  • When do repayments begin?
    • The first payment isn’t due until a year after the official date of the loan. However, interest starts accruing on the loan the moment the funds are disbursed.
    • On a case by case basis, loans offered under this program may have a forgiveness clause as a feature.
  • What do I need in order to apply?
    • Your business needs to operate in a current declared disaster area.
      • States or territories are required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where in the state those businesses are located as a result of a disaster. Once an economic injury declaration has been made for a state, loans will be available statewide. This will apply to current and future disaster assistance declarations related to Coronavirus (COVID-19).
      • Certain counties in Alabama, Florida, Georgia, Mississippi, and Tennessee have been declared disaster areas relating to Coronavirus (COVID-19).
      • Current declared disaster areas can be searched at https://disasterloan.sba.gov/ela/Declarations.
    • You need to register with the Federal Emergency Management Agency by calling FEMA at 1-800-621-3362 (TTY: 1-800-462-7585) or visit DisasterAssistance.gov.
    • You need documentation justifying amounts you will need to cover each category of cash outflow. Be as thorough as possible!
  • How do I apply?

Crow Shields Bailey PC COVID-19 Response

As we all find ourselves in uncharted territory, we want to share with you how CSB is responding to Coronavirus (COVID-19).

CSB is concerned with the health of our clients, team members, vendors and the communities we serve.

We have a plan in place to ensure continuity of services to our clients.  Our team has the ability to work remotely and can access client information in a safe and secure manner. Whether we are working in our offices or remotely, the lines of communication will remain open.

What you should know:

  • CSB will have drop off boxes in the lobbies of each of our three locations to limit hand-to-hand contact.
  • We will also need to do more phone meetings rather than meeting face-to-face.
  • We will rely on the use of our secure file transfer services such as SafeSend (to electronically receive and sign tax returns) or Sharefile (to send and receive documents which do not require signatures).

Our plan is to have personnel in each of our offices. However, we will follow local regulations and guidance regarding whether an office should be closed.

We value our relationship with you and will continue to provide updates as needed as we navigate these unprecedented times.

Please feel free to reach out with any questions or concerns. We hope you and your loved ones are safe and healthy.

 

Gina McKellar

Managing Shareholder

Six Cliches That Are Still Relevant For Today’s Business Students

September 26, 2019

Abby Roveda, CPA | Senior Accountant | Published by Crow Shields Bailey

Has the statement clichés are clichés for a reason reached cliché status yet? Did that question hurt your brain just a little bit?

At some point in your life, clichés become perceived as the professional equivalent of dad jokes—they’re cheesy and you can hardly ever say them with a straight face. There is still more than an ounce of wisdom to them. In my time in public accounting and working the recruiting circuit, I’ve found that these clichés are still relevant for today’s students.

The Early Bird Catches the Worm

This is NOT about showing up early for interviews and work. This IS about starting to plan for your career now and setting yourself up for the best shot at success. If you don’t know what you want to do yet, you’re not alone. That doesn’t mean that there’s nothing you can do now to prepare for the unknown. Take every opportunity you have to go and hear speakers, attend career fairs, and shadow in different industries until something piques your interest.

If you do know what you want to do, why would you wait for an invitation to start pursuing it? Maybe you’re not at a point academically where it makes sense to do an internship; however, there is no bad time during your college career to attend socials with potential employers, take advantage of job shadowing opportunities, get your resume out there, attend leadership events to add to your resume, or participate in on-campus recruiting. The more a potential employer gets to know you, the less of a hiring risk you become for them.

Fail to prepare, prepare to fail

I do some work on the board of a not-for-profit, and this is the director’s favorite phrase when we have an upcoming event. We spend a lot of time planning for potential mishaps, such as inclement weather or IT problems, and preparing backup plans should any of them actually occur on the day of the event.

How does this apply to students looking for jobs? Have you ever been interviewing for a job and the interviewer asks if you have any questions for them and you replied, “No, I don’t think so?” For many employers, that indicates to them a certain level of disinterest in their company, and even in your own career. Having questions ready for your potential employer is one of the most important steps you can take to prepare for an interview – besides popping a breath mint if you had extra garlic and onions on your pizza at lunch. When you are competing with multiple students for the same job or internship slot, who do you think will have the edge when all other things are considered equal – the one with zero questions for the interviewer or the one with a couple of well-prepared questions?

What doesn’t kill you makes you stronger

Did you just imagine Kelly Clarkson belting that line? Who knew that Kelly was actually singing to business students when she recorded that power ballad?

Being a professional requires you to get out of your comfort zone. There are many aspects of the recruiting process that are just plain unenjoyable. For instance, getting dressed in an uncomfortable suit in the sweltering heat of Alabama, making sweaty handshakes with strangers, repeating the same small talk over and over again…I feel you. I hated career fairs when I was in college. There was not a single aspect of them that I found enjoyable, except that during the height of recruiting season I could usually count on being provided free dinner for 3 of the 5 nights of the week, which was a big help with the old budget. However, by forcing myself to continue to attend these functions, I found that I had actually grown comfortable talking to potential employers. I had become more confident in a room full of strangers and I had actually semi-mastered small talk that didn’t solely revolve around the weather.

Dress for the job you want, not the job you have

Speaking of getting dressed in uncomfortable suits…

Lots of employers have more relaxed dress policies in this day and age. Gone are the days (at most places) of dressing in full suit and tie every day for the office. However, until you know what that dress policy is and until you are actually employed there, you should err on the side of being overdressed. Except for a few exceptions—like showing up for your shift at Habitat for Humanity in a three-piece suit—you will never regret being overdressed in a professional setting. And, even more importantly, your potential employer is not going to note you being overdressed as much as they will if you are underdressed.

You are what you do, not what you say you do

This is really important for when you start working at your first job. However, there is another important spin on this for business students applying for jobs.

My husband has been giving advice to fourth year medical students applying for residency this fall since he just finished the process last year. One of the things we have talked about is the temptation to stack your resume with things that you think make you look good, but don’t necessarily reflect how you actually spend your time or what you value. His advice to fourth year students was, “If you can’t talk about it for 5 minutes, it should not be on your resume.”

What does that mean? You should prepare a 5-minute speech based on everything on your resume? No. If you list a community service activity and it was something you did just to fulfill service hour requirements and not something you actually believed in, do you think you could talk intelligently and passionately about it for 5 minutes if asked about it in an interview? Unless you’re minoring in drama, you probably can’t, and that will lead the employer to question the authenticity of other things listed on your resume as well.

When the going gets tough, the tough get going

If you haven’t experienced a setback at this point in your life, then you probably aren’t challenging yourself. Do you know why employers ask you in interviews to tell them about a time that you failed? Not because they are trying to expose you, but because if you failed, learned something from the experience, and bounced back from it, then you can guarantee that will stand out to them and give you an advantage.

Being a professional in any kind of industry is challenging and you will make mistakes and fail at things multiple times throughout your career. We are counting on it. Not because we like watching you squirm, but because it is absolutely the best way to learn. And if you can’t learn from failure, then there is a limit to what we can teach you.

If you have any questions about career development, recruiting, or any other topic, please feel free to reach out to us. We are always here to help!

 

CSB Awarded Best Company To Work For By Business Alabama

July 29, 2019

Deborah Fisher | Firm Administrator | Published by Crow Shields Bailey PC

At CSB, our team is our most valuable asset and one of our top priorities is to recruit and retain the best and the brightest. We make sure that team members have a clearly defined career path, mentors to help them reach their goals, opportunities for excellent training, and we have some fun along the way as well.

Because of our “team first” mentality, we were thrilled and honored to discover that the sentiment is mutual when we were named one of Business Alabama Magazine’s Best Companies to Work For. This award is based, in part, on surveys that our team members completed about what it’s like to work here and their satisfaction level with features like benefits, compensation, flexibility, working environment, and more.

We believe that communication is the key to reaching this level of employee satisfaction. We haven’t always been in this position. Just like many other “Boomers” in management, we came up with ideas in meetings that we thought were great and many times, to our dismay, we were not even close to hitting the mark. That’s when we realized that maybe, just maybe, we should actually ask team members what would make CSB a great place to work.

We took great pride in having an “open door policy” but sometimes that simply meant listening to suggestions. If you don’t take action, then what’s the point?  We began to really listen to team members’ ideas and started taking action. As a result, for the last eight years or so, our team is responsible for many changes such as our dress code (we now have a Dress for Your Day policy), recruiting (our team plans and executes events), community service (we vote on our main charity each year), compensation (our team is responsible for various changes to our compensation structure), time off policy (we ditched traditional “vacation and sick leave” and replaced with PTO), two extra holidays came from team recommendations, and the list goes on.

In summary, if you are putting forth the effort to hire and retain the best and the brightest – let them show you what they can do. We firmly believe that the change in our mindset to move from just listening to listening AND taking action is one of the reasons that we have been named one of the best companies to work for in Alabama. And for that, we are truly grateful.