Once a week, PointBlank will deliver a roundup of small business news and advice from around the nation.
Don’t Hire Based On Tax Incentives
There’s an argument to be made for not hiring based on tax incentives, and You’re The Boss is here to make it. It also has to do with President Obama’s recent jobs proposal, so hey, it’s timely!
I’ll let Jay Goltz explain, because he puts it so very well:
There are additional tax breaks in the plan that are meant to encourage the hiring of new employees. An employer can get a $4,000 credit for hiring someone who has been unemployed for more than six months. It’s a little hard for me to imagine not feeling sympathy for people who fall into this category. There are additional breaks for hiring veterans, and I don’t know how anyone could oppose giving an advantage to someone who left the work force to go to war. And yet, I wonder if, in general, these kinds of targeted breaks really work. Or are they better politics than business.
I guess I would need to see more details, but I have my doubts. Will paying a bonus for the hiring of someone who has been out of work six months be fair to someone who has been out of work for only four months? What incentive does this offer a person who has been laid off for five months? Is this fair to an employer who managed to make it through the last three years with minimal layoffs, but now has to watch a competing company be rewarded for hiring back the people it let go? How long will the person have to remain employed for the employer to get the $4,000? There will probably be a whole industry started on how to game the system.
It’s a good argument for being cautious about these tax breaks for hiring, should they come to pass. Be sure to weigh these issue carefully.
Post 9/11, Businesses Move And Thrive
Kind of an inspiring story of small business perseverence in the face of tragedy.
The Greenwich Jewelers shop was mere blocks away from the Twin Towers when they were struck on September 11, 2001. The store was forced to close almost immediately after, and operating without a storefront for months. Sales dipped by 70% in the wake of the catastrophe, and the store’s future seemed to be in doubt.
Led by determined daughters of the original owners, however, the store bounced back. It found a new location near Wall Street and today, the store is thriving. There’s a good message in here about sticking to it no matter what comes your way, and it’s a highly recommended read.
An Interview With Lou Imbriano
BizEngine scored an interview with Lou Imbriano, a marketing guru who formerly served as the Chief Marketing Officer for the New England Patriots. It’s a very cool interview, and I’d recommend you check it out.
Other Useful Links
Please suggest your own links in the comments! Thanks for reading.