“Dennis, I am a workers compensation attorney in Louisville, Kentucky and have a likeable, outgoing client who’s work injury requires that finding a different occupation. His grandmother suggested that he look into becoming a Kirby vacuum salesman which is sold door-to-door. I found two very positive articles you wrote about the Kirby Company and would appreciate your opinion.

“What are the pros and cons of becoming a ‘Door to Door’ salesperson? Thanks, “Charlie.”

Direct Selling Offers Unique Opportunities

Charlie is correct. I have a great deal of respect for the Kirby Company. Not only do they make an excellent vacuum cleaner–which they refer to as a home cleaning system that has the best warranties in the business–but they are an ethical company. They believe in protecting the consumer, as I discovered many years ago as a Deputy District Attorney in charge of Consumer Protection in the Kern County D.A.’s Office.

Over the years I have met many Kirby distributors who started out selling Kirbys door-to-door, and as Joseph Mariano, President of Washington D.C. based Direct Selling Association (DSA) recently told me:

“The people who are in direct, person-to-person, sales today–Kirby and the Fuller Brush Man which come to mind almost immediately–have a rich, colorful American history behind them. Yankee peddlers–traveling salesmen–were the original entrepreneurs, a common sight throughout America until the late 1800’s. They would go from town to town with carriages filled with everything they had to sell, all sorts of goods, bringing a needed touch of civilization to an expanding country.”

Marino confirmed what I so admired–something which just stood out in a truly admirable way–about these Kirby salespeople who had success written all over their faces. “Success in direct marketing requires:

–Being entrepreneurial-minded;

–You must love to work independently by;

–Establishing a business with low start-up and overhead costs, and;

–Affiliating yourself with a company that markets its products through direct sellers who in turn retain the freedom to run a business on their own terms.”

And who are some of the companies that sell their products this way? Mariano listed a few of the 150 members in the DSA–some of whom I had heard of, while others I had not:

Mary Kay

Avon

The Pampered Chef

Amway

Traveling Vineyard

Tupperware

Shaklee

Jafra Cosmetics

What it Takes to Succeed

Mariano points out that direct selling consultants, “forge strong personal relationships with their customers,” but is quick to stress, “There is nothing easy and if you are looking for a quick buck, you will fail.”

He made it clear that success in direct sales, “Requires putting in the time, the effort and developing the skills to run a business. There is a great variety of people who have been successful, many who initially thought, ‘I can’t be good at selling.’

“Often what gets someone into direct sales is that they or a family member owned a Kirby vacuum cleaner, took Shaklee vitamins, went to a home party for Mary Kay and through that exposure thought, ‘Maybe I can do this. I really love this product–and especially the people selling it–and I can see myself telling others about it.”

He provided a by-the-numbers list of qualities which a successful direct seller needs:

(1) A willingness to share the benefits of the product. You want your friends and family to know about your positive experience.

(2) Selling is not always going to be easy. The old saying, “If at first you don’t succeed, try, try again,” applies. By developing exceptional product knowledge and a true love of the product, those feelings will become contagious and will help you to succeed.

(3) Remember that you are a guest in someone’s home and have a legal and ethical obligation. Be truthful. Our member companies agree to follow a strict code of ethics, but there are others out there who do not.

(4) You need a thick skin – selling is not easy. Some people will just not be interested but could very well refer you to someone who is when you are polite and thank them for their time.

(5) When looking for a direct selling opportunity, run the other direction if you are told that you do not have to work a lot and can make money easily. Do not consider any offer that requires you to put a lot of money up front, or purchase large amounts of inventory.

(6) If compensation is promised on merely recruiting other people rather than selling, forget it!
For anyone interested in this field, www.dsa.com is the place to begin – and for regular consumers wanting to learn more about their rights when buying from a door-to-door salesperson.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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“Shirley,” from Atlanta, wrote: “Your recent articles about becoming CEO in a family-owned business and how not to treat your sales staff if elevated to a management position are especially relevant to our situation, and I could use some guidance.

“My father-in-law, ‘Big Al,’ was CEO and ran our ‘point of sale’ manufacturing and sales company here in the South, producing products that facilitate the sale of all sorts of things, such as in-store displays, eye-catching price tags, to fill-in-the-blanks advertising copy.

My husband, ‘Little Al,’ was in charge of the actual manufacturing end of things and had little contact with salespeople.

“After Big Al suffered a disabling stroke, our board elevated my husband to CEO, which has proven to be problematic.

“When it comes to emotional intelligence, Big Al is so warm, always showing appreciation for everyone here, especially our sales staff. My husband thinks that by just paying people appropriately, that’s all they need.

“We have lost two key people because, I believe, he just doesn’t get it or care that people need to be appreciated and their suggestions given serious consideration for the good of the company. We both read you on Kiplinger.com. How can I help him join the feeling human race?”

It’s about more than just being polite

I ran Shirley’s question by two friends of this column, Southern California-based HR consultants Marinor Ifurung and Tim Moreno at the law firm Klein, DeNatale, Goldner.

They were eager to offer practical insights and recommendations, and gave me permission to play the recording of our interview for the couple.

Tim: The consequences of underappreciation and the failure to maintain positive company cultures is why good people are lost. Employees want to work for and with management that is appreciative and expresses it in a variety of ways, “Thank you, for being part of our organization. We value you.”

This is far more than merely being polite — these qualities help to define the workplace as where you want to be.

Marinor: Employers need to realize that it is not just what you pay your people that matters, but there’s a profoundly human need most of us have for our work, our contribution, to be valued and appreciated. Both academic research and real-world experience reveal that without this validation, the effort and desire to do not just a good, but an exceptional job will decrease.

Employers want top talent and competent, reliable employees. A culture of recognition, validation and appreciation is essential to attract and retain these people — and it starts at the top. While there are some employees who do not need or care about that recognition, HR people across the country are finding that more and more do, and leave in its absence.

Tim: We’ve all heard the expression “happy wife, happy life,” and the same thing applies to employer/employee relations. I see a correlation — the happier the employee, the less litigious that employee will be. That is an issue of real significance that can’t be overstressed.

Pay is important, but we are finding that when employees are surveyed anonymously and asked, “What is it that makes you look forward to coming to work?” compensation does not rank high on the list. We’ve found that, for example, where a firm down the street pays slightly more, but where management has created an environment you want to go to every day, most employees comment that pay is secondary.

We hear, “When I come to work, I can do my job, feeling part of a team, having a goal to bring my very best to this terrific company.’

Tim’s and Marinor’s Recommendations

Tim: In a small organization, good morale depends in large part on transparency and an atmosphere of trust. Employees need to feel able to voice concerns — either directly or in an anonymous fashion — without worrying about their job security.

We have found that when employees are encouraged to find ways of just doing things better, it is like a giant shot of vitamin B12. Everyone has a sense of being valued, listened to and their recommendations and opinions respected.

An employer who has a long-term outlook recognizes, rewards and encourages exceptional performance — and, when possible, their recommendations are fast-tracked, proving that management is listening and paying attention.

Marinor: In concrete terms, people love birthday parties, company BBQs, outings to theme parks, gift certificates, and doughnut Fridays, good-quality snacks — and the list is endless.

In place of these nice, fancy things, the simple, one-on-one, “Thank you. I got your report. It looks great,” doesn’t cost a thing, but is often the best gift of all, making the employee feel wanted, needed and valued.

After Playing the Recording

“Al,” I said, “just try those suggestions and look for smiles in return. See how good you will feel. Go through the motions, and the emotions will follow.”

The post Are you an emotional miser with your employees? appeared first on Dennis Beaver.

Today’s story will be of special interest to students who attend California State University Channel Islands and live on campus in a residence hall. For those who cherish Freedom of Speech and Expression, it is now a safe place to live.

Until just a few days ago, it wasn’t, and here’s why

Policies enacted earlier this year by the school’s administration created a real, life-long danger to students who resided on campus, and as you will see, this is no exaggeration.

Upon checking into their dorm, the school’s administrators forced them to wear the equivalent of a mental dog muzzle, knowingly and flagrantly violating the single most important right guaranteed by the United States Constitution, Freedom of Speech.

In a place where open, free debate and discussion must be encouraged, CSU Channel Islands’ administrators made it clear they did not believe these rights should be allowed in its residence halls.

They threatened students with action all the way to expulsion for daring to engage in the kinds of discussions so essential on a college campus, and they did it by making legitimate, protected speech illegal.

Welcome to the Residence Hall – Now Shut Up or Risk Expulsion!

Ask anyone who lived on campus during college days about the exciting discussions over just about any topic under the sun that would come up with room mates, or friends in the dorm. Animated, passionate debate is the spice that makes university exciting, enriching students’ lives in so many ways.

Learning to listen to opinions which differ from our own–especially when accompanied by sarcastic put-downs and pointed language–these things are preparation for dealing with the world outside campus walls. College students quickly learn that other people have strong opinions and are not shy about making those opinions known, often with strong, derogatory language.

Anyone who can’t tolerate being told that they are an idiot for thinking a certain way will face a life of conflict. It is good to be told off, to have our reasoning challenged; it makes us think.

But when a student fears punishment for exercising the most important right the founders of this country gave, then debate, and voicing contrary opinions are stifled. When it becomes “Watch out for what say, and for what you think,” then we are all in trouble.

When a university makes normal speech punishable, then a long winter has settled upon that campus. So, for a moment, picture yourself as a Channel Islands student in the dorm cafeteria, about to get into a debate over the President’s policies with supporters and people who hate the man.

You are just about to accuse one of the students of being “a roaring idiot who is full of @#$#% when someone says, “Stop! Read these Resident Hall rules before saying a word!”

Labeled Derogatory Comments as Harassment

In violation of a standard established by the U.S. Supreme Court in the Davis decision of 1999, the Resident Handbook stated, “Harassment includes, but is not limited to, verbal harassment–epithets, derogatory comments, or slurs–and visual forms of harassment, such as derogatory posters, cartoons, drawings, symbols, or gestures.”

Talk about an elephant squashing Free Speech! Violate those rules and you could get yourself punished, all the way up to expulsion!

And just what is the legal standard for harassment?

As the Court stated in Davis, “Harassment in education is behavior that is so severe, pervasive, and objectively offensive and that so undermines and detracts from the victims’ educational experience, that the victim-students are effectively denied equal access to an institution’s resources and opportunities.”

Telling a dormitory resident that he’s a moron for “feeling that way” opens the door to the moron showing them by using the school’s power to find harassing behavior and kick someone out of school!

A School Lawyer Who Did the Right Thing

When this dangerous, twisted, illegal language came to my attention, I contacted the school’s attorney, Marc Mootchnik, who admitted that it did violate the Davis decision and promised to do what he could to make things right.

Unlike lawyers who will support a client who he knows is wrong, Mootchnik kept his word. That language is now gone from the handbook, and while not perfect, does appear to meet the Davis standard, and states:

“Harassment and bullying do not include constitutionally protected activity or conduct that serves a legitimate purpose.”
And if Mootchnik had not prevailed? Professor Lyle Sussman of the University of Louisville had this comment:

“Recall the conversations we had in our respective student union, cafeteria, dormitory rooms, and walking to and from classes. Those conversations might have resulted in our suspension/expulsion if they occurred at Cal State Channel Islands, 2019.”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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“Matt” emailed this question: “Do you know something I can read that would help me deal with an issue several of my employees have raised. They tell me that I am favoring the stars in our company – similar to teachers pets –instead of encouraging everyone to shine.”

In fact, I do and I’ve just read the pre-publication “galleys” of Cultures of Growth: How the Science of Mindset Can Transform Individuals, Teams and Organizations, by Indiana University Psychology Professor Mary C. Murphy, who I had the pleasure of interviewing recently.

It is right on-point for Matt, and looks at ways people who are in a position of power create these cultures of genius, where the “stars” alone advance, versus cultures of growth, where everyone is encouraged to develop their abilities and creativity.

She has done extensive research in growth mindset theory, which is somewhat controversial, and questions have been raised as to its scientific repeatability. Regardless, I found Cultures of Growth an inspiring read that offers concrete steps to enhance personal creativity and development, and which apply to many aspects of daily life.

And, I have to point out that her writing style is welcoming and made me feel as if she was sitting across the table from me and we were just having a chat. Her book is an example of how to keep a reader engaged.

I asked profesor Murphy to list some of the things that we do as parents, teachers, and in the business world, that stifle creativity and personal development.

(1) Figure out what your strengths are, things that come easy to you and then only concentrate on those.

Consequences: You remain in the same rut, and are not encouraged to explore ways to stretch yourself, to innovate, to accept new ideas and approaches and integrate them.

(2) Stereotype everyone – yourself included – and decide that’s just who they are. “He’s no good at math.”

Consequences: You have slammed the door shut on the ability to learn something new by thinking, “He’ll never be good with numbers. I better find someone else who can do math.”

(3) Create a Culture of Genius where the stars horde information and pit people against each other. Anoint them as the most creative and worship them, only be friends with them, rather than others who have not demonstrated star power.

Consequences: Everyone will think that creativity only comes from this genius group and they are infallible. You have snuffed out a culture of growth.

(4) Make it deadly to make a mistake, to have a dissenting opinion, or to challenge ideas, especially from people who want to collaborate and work with their colleagues instead of competing with them.

Consequences: This ensures that mistakes and their shortcomings will be hidden.

Your people are not going to be taking risks or having new ideas in the context of high stakes evaluation and feedback that’s just focused on outcomes.

(5) Only care about the kids who are smart, their intelligence, and let the others know that we really don’t care so much about them because “we know you’re not as good.” Demonize effort.

Consequences: That will stifle motivation, learning and the desire to actually improve. If you have to try hard, it means you don’t have the requisite or innate skills, ability and talent for this thing. Maybe it’s not for you.

(6) Only solicit ideas for improvement for those deemed genius. Make their contributions and ideas unquestionable and infallible.

Consequences: You are creating a culture of anti-creativity where you will not listen to other ideas and fail to question the ideas that come from those identified geniuses. The other, non-geniuses might just have something of great value that you will never see.

(7) Identify our prototype for geniuses and then only search, recruit and retain people who match those characteristics.

Consequences: We narrow our search. We’re going to figure out who is from that gender perspective, race perspective, background, education, and work history perspective. And we’re only going to look for those same people, because, moving forward, those are going to be our geniuses. That is really going to stifle creativity.

(8) Assume new team members have all the requisite skills and knowledge they need to jump right in at the deep end.

Don’t build float into projects, don’t provide developmental opportunities or onboarding. Don’t bring them up to speed or help them get oriented, which would allow them to understand what the team is doing and their particular contributions to it.

Just assume that they have what it takes and go to the deep end and just get going and let them see if they sink or swim.

A Life Raft

We don’t have to believe every aspect of mindset theory to find something very positive. For those in power, it is proof of why prejudging is so destructive.

The post Can we grow our creativity? appeared first on Dennis Beaver.

“In the era of The Great Resignation, there is a tool – a path – as old as humanity itself which can be the most effective way to show employees that the boss really does care about their welfare and wants the best for them,” notes Jacqueline Carter, senior partner at Potential Projects, a global consulting and leadership development firm, whose goal is “To create more human worlds of work.”

Their clients include Fortune 500 companies, such as Disney, Ikea and Unilever.

Along with Rasmus Hougaard, their just-released book, “Compassionate Leadership – How to Do Hard Things in a Human Way,” describes the steps that “Break down walls of indifference and a lack of caring that in many ways still dominate American business,” she points out, adding:

“As the greatest expense for most business is personnel, it is critical that we retain good people. But far too many organizations fail to spot the wrong messages they are sending, fail to seize opportunities which will deepen bonds of trust. That’s why we have studied and developed practical, workable solutions,” she said.

So, just what is compassion? What are the consequences to an organization when management fails to understand this concept in today’s business world?

Compassionate leadership gives readers tools, an insightful paint-by-the-numbers approach to becoming a more effective leader through understanding and implementing this vital concept. It is also a very touching, inspiring read.

The Failure to Understand the Role of Compassion is Costly

“In any organization, a failure to understand the role of compassion will predictably result in the loss of your best talent and limit opportunities to manage change and innovation in today’s business environment,” Carter points out.

The authors explore compassion’s broad meaning and function in both society and business organizations. “It is wanting to be of benefit and is distinct from empathy which is an emotion. Compassion is an intention – a desire – and we found that truly competent leaders connect with empathy but lead with compassion.

“It isn’t about being everyone’s best friend, or ‘being nice,’ rather it is about being able to show up as someone who truly cares, but is able to do and say the hard things that need to be done in human way.” This point is illustrated throughout the book.

In a sense, compassion can be defined as wanting to be kind, showing that you care and both asks and answers this question: “How can I help?”

As any HR manager will tell you, one of the reasons for The Great Resignation has little to do with money, but everything to do with the boss being a decent person.

The authors make clear that, especially these past two years, it means being aware of the challenges facing employees, both on the job and at home. Compassionate Leadership gives readers an approach to showing that they care and are curious – truly want to know how their employees feel, what their concerns and worries are, truly wanting to know, “How can I help?”

“Compassion is the opposite of indifference, and it is one of the essential qualities that determine whether one is a decent human being. A compassionate leader does not pretend to have all the answers. To the contrary, that leader will be fully present – physically and mentally – encouraging all involved to share their curiosity and points of view in problem solving. In a word, the compassionate leader is the very definition of caring transparency.”

Being Candid in a Caring Way

“Compassionate Leadership,” Carter underscores, “does not mean simply telling someone what you think they want to hear. Rather, it requires the courage to step into things that are challenging. The compassionate leader is able to say what needs to be said in a kind and caring way. It is different from brutal honesty.”

Of course, there is a fine line between being candid and being accused of maintaining a hostile work environment or allegations of discrimination.

“The solution to this problem,” Carter believes, “requires learning how to communicate those difficult things in a better way, and not avoid being clear out of fear of a lawsuit.”

She asks this question: “Would you like to work for a boss who only cares about production and not the welfare of employees? The choice is obvious, and our research proves that leaders who can do both – be goal oriented and care about their employees – are far more successful.

“Employees are expecting to see more human leaders today and we can train ourselves to be more compassionate in our daily lives. Additionally, these principles can be applied to our interactions with family and friends.”

Once you begin to read “Compassionate Leadership – How to Do Hard Things in a Human Way”, you will have a difficult time putting it down because it is so interesting and relevant. For a look into the future, to the human directions the business world is moving toward, visit www.potentialproject.com. It will be well worth your time.

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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“I am CEO of an educational sales organization, and we need our telemarketing staff to go out into the field, make presentations and do lunch-and-learn new product seminars with potential customers. May I legally change their job duties? Would I be required to provide training for them, and if so, what type? Thanks, ‘Walter.’”

“Yes to both questions,” says Southern California labor lawyer Daniel Klingenberger. “If employers prefer sales presentations face-to-face with existing or prospective customers, they can establish those job requirements. They would be well advised to provide appropriate sales or presentation skills training to these employees.”

I also consulted on this topic with Terri Sjodin, principal and founder of Sjodin Communications in Newport Beach.

“You would be surprised at how often these same issues come up as employees have gone from home-based to virtual and now are sent out into the field,” she says.

Sjodin, a New York Times bestselling author and a frequent guest on radio and television talk shows, has dedicated her professional life to helping people become effective speakers.

Her most recent book is Presentation Ready: Improve Your Sales Presentation Outcomes and Avoid the Twelve Most Common Mistakes.

“Most people want to improve their presentations,” she says, “but don’t know where to start. Understanding the most common mistakes — and figuring out how to avoid them — is critical because you can’t course-correct what you don’t recognize as a problem.”

She provided confidence-boosting insights to help Walter’s sales professionals get started on learning good presentation skills.

(1) Don’t wing it. Failing to prepare reveals a lack of product knowledge.

Winging it is improvising, ad-libbing or generally conducting a presentation without much preparation. It is among the top mistakes salespeople reported making that had likely ruined transactions.

Goal-oriented, persuasive presentations that need a customer’s buy-in risk failure if you are not well prepared, if you haven’t done your homework and if you don’t know your company’s product or service well. Listeners easily sense a lack of preparation where the speaker appears disorganized, unskilled and distracted.

This can have a greater cost than one lost sale; it puts the employer’s reputation at risk.

(2) Don’t be boring. Being informative has its limits.

The 2023 State of Sales Presentations Research Study from Sjodin’s company revealed that being boring is the most common mistake presenters recognized in others. This can happen for a host of reasons, including sharing too many facts and figures.

A good presentation is much more than just delivering information; you need your message to land, to create a connection with the listener.

This is accomplished by crafting a message that is engaging, interesting and amplified by stories listeners will tune in to emotionally, making the product or service relevant — something they can visualize owning or using.

“Your enthusiasm is vital!” Sjodin says.

While it is important to provide a factual basis for why someone should purchase your product, you don’t want customers to feel as if they are being asked to drink from a fire hydrant.

“Buying decisions are seldom based on a massive amount of detail but are strongly linked to positive feelings the audience has about the speaker,” Sjodin points out.

(3) Do be the first person in the room and know who your audience is.

“Audience analysis refers to knowing who will be in the audience,” Sjodin notes. “This intelligence is golden, as the more you know about your listeners, the better able you should be to fine-tune the presentation. But sometimes you will have no idea who will be present, and they might have no idea who you are.”

The solution is to be the first person in the room. By greeting listeners as they come in, you can exchange a few words and, time permitting, ask them what they might like to know about your product or service.

“In so doing, your presentation has already begun, and you have likely won a friend,” Sjodin says.

(4) Keep in mind that for a lunch-and-learn seminar, the food is important.

Lunch-and-learn seminars are popular in the investment world.

“A common mistake,” Sjodin says, “is for the financial adviser to lecture while guests are eating. Few will pay attention!”

Sjodin recommends that, prior to lunch, open the session with a few welcoming remarks, advising that lunch will be served in a moment and that afterward the presentation will begin.

“In summary,” Sjodin notes, “providing your team with presentation skills training will boost their comfort with the new job responsibilities and help them to succeed.”

In Presentation Ready, Sjodin puts her all into helping readers become more effective in the world of sales. It is a shot of confidence-building Vitamin B-12 and the ideal gift for employees preparing for a required change in performance skills.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

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Today’s story is about my uplifting and inspiring interview with Cleveland-based Daniel Blalock, President of North American Field Sales for the Kirby Company.

That’s right. Kirby, as in the Kirby vacuum cleaner, a company that is one of the most positive examples I know where hard work, competence and perseverance teach us lessons for achieving personal and financial success.

But first, let me tell you how a phone call from a Kirby distributor when I was a consumer fraud deputy district attorney in Kern County had a profound influence on the way I looked at the people in sales, door-to-door–and overall.

It was the mid-1970s and Kirbys were turning up in “vac shops” all over the country for much less than the normal selling price, but with their serial numbers illegally removed.

So, the homeowner who purchased a Kirby from the door-to-door salesperson at the retail price, (which includes a sales commission) saw the same machine advertised for less at “Honest Abe’s Vac Shop,” canceled their contract under the three-day cooling off law, and bought from Abe.

The customer then discovered that the all-important serial number had been illegally ground out, thereby voiding the Kirby’s extensive warranties.

That’s what happens when stolen items enter the supply chain.

The customer, salesperson, distributor and manufacturer all lose.

These sales violated state law, harming the consumer, salesperson, Kirby distributor and reputation of the manufacturer. For me, as a DA, these were morally compelling cases.

I successfully prosecuted “Honest Abe” for knowingly selling a consumer product that had the serial number illegally removed, and when I opened my own law office, was retained by Kirby distributors all over the country who were being cheated this way.

Discovered Keys to Success

The many distributors I met began by selling Kirbys door-to-door and all had one thing in common: “They believed in the product, knew that direct sales is tough but stayed with it. They had grit, and perseverance,” Daniel Blalock says.

And Dan’s career path is an example of both, taking him from selling Kirby products via in-home demonstrations beginning in June 1995 to being promoted to President of North American Field Sales in 2019.

Dan’s Formula for Lasting Success

Does he have a formula for lasting success? You bet he does!

“I tell new sales people ‘Yes, direct sales is a challenging line of work, but once you sell your first Kirby, that builds self-confidence. You get to know and believe in the product, and this comes across to the customer. Keep at it! You will succeed!

“As you increase your sales, in time you will have the chance to own your own distributorship. But don’t spread yourself thin! While it is rare for a Kirby distributor to fail, don’t get involved in other business activities that take you away from running your own shop.

“None of us can ride two horses at the same time and we need to realize that time taken away from our primary source of income can’t be replaced and often leads to a new venture and your established business suffering financially. Don’t shoot the horse that you rode in on.

“Just because you are good at your regular line of work does not mean that you will have the same level of success – or any success – in other areas about which you know little. Accept what you are good at, stick with what you know and don’t be in a hurry to ‘make it big.’”

Start With Owning Your Building Instead of Renting

Dan’s career path also parallels his approach to building wealth:

“A gradual, slow, conservative approach to investing will serve you best, beginning with owning your own building instead of paying rent. Once you’ve done that, start maxing out your tax-deferred investments.

“Put out of your mind wanting to become wealthy in the next couple of years and put your money where it will grow and be secure in conservative funds, such as an indexed S&P 500 fund. When you put your money away in conservative investments that don’t take your time to manage, it can then grow on its own and you are able to spend your time doing what you do best.

Caring About People Makes a Difference

A common denominator of successful, respected CEO’s and company presidents is that they care deeply about their people. That dedication came through loud and clear during our meeting.

Dan wants Kirby salespeople to succeed – and made it evident that he wants to help them along that path.

When advancing to the top, so many forget their roots and how they were nurtured by others.

Dan Blalock hasn’t forgotten where he came from, who helped him along the way, and his sense of duty to pass these sound values along, a lesson for all business leaders.

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Recently, I received an email from “Ivan,” a young university graduate with a business degree and IT specialization. He and several friends from college established an IT service company in the Midwest, with an eye toward emulating “the relaxed work-should-be-fun image that many tech companies in Silicon Valley portray.”

“My father is a CPA,” Ivan wrote, “and tells me this would be risky and that no one talks about the fun factor’s share of work-related injuries while scaring away visiting clients. What is your recommendation? I think all employees need to enjoy their workday, and some horseplay is healthy. Thanks, Ivan.”

Sure, some horseplay at work is healthy, but a concussion isn’t. We’ve all seen images of a happy, playful workplace presented by tech companies — employees dashing around on Rollerblades, basketballs hurling through the air, an atmosphere more like an elementary school playground than a serious business enterprise. Indeed, more than one business writer has asked, “Where is the adult supervision? Doesn’t anyone among these young start-up CEOs care about workplace safety?”

I checked in with Marinor Ifurung, a senior human resources consultant with KDG Law in Southern California. “There are real consequences when a work environment invites accidents,” she said, “and that’s something HR consultants are critically aware of. Zooming around the office on Rollerblades — accidentally knocking a co-worker to the floor — or someone getting hit in the head by a basketball thrown by an employee encouraged to make the workplace a fun place predictably results in injury, medical costs, time off work and financial loss to the employer.”

She added, “HR is often faced with the human side — the emotional side — of workplace safety not being taken seriously, from mom-and-pops to the largest corporations. Often, it is the last thing newly formed companies spend much time” thinking about.

Ifurung and her colleagues Tiffany Cutler and AnduAlem Yohannes talked with me about the nuances of these issues.

Maintaining a safe work environment is legally required

Cutler: In all states, OSHA requires employers to have measures in place to establish a safe work environment: Work must be accomplished in a safe manner, the worksite itself must be a safe environment. What safe is, or what is required to meet that definition, is occupation-specific and often modified by various state laws.

It is one reason that anyone going into business who plans on hiring employees should obtain guidance from an employment lawyer or an HR consultant who works with new businesses.

So often, people who start their own businesses discover the hard way that safety violations are costly.

Yohannes: OSHA’s mantra, “A Safe Workplace is Sound Business,” recognizes that safety is an investment in an employer’s most valuable asset — its employees. Prevention of injury and illness is simply good business, and this requires a dedication of resources — not just to keep the business owner out of trouble — but to encourage a culture of safety on the job.

Glaring safety failures and consequences

Ifurung: One of the most disturbing situations we see are employers not carrying workers’ compensation insurance. Most people would think workers’ comp is a given, but you would be surprised at those who feel they don’t need it. The excuse is often, “We’re too small and don’t need it, but if we do, then we’ll get it.”

The consequences of their failure (or frugality or even lack of concern for their employees) can dwarf the cost of the insurance. They can include the employer being held personally responsible for the cost of medical care, including future treatment, lost wages, penalties into the thousands of dollars, and, in some cases, actually going to prison.

Also, a “stop order” may be issued in some states that prevents the company from functioning until it has obtained workers’ comp insurance.

Surprise safety visits by state or OSHA investigators who are looking for noncompliance issues often result in fines. Also, employees are encouraged to anonymously report safety violations to OSHA.

Lack of safety training and reporting

Ifurung: A lack of safety training is a well-documented factor in workers’ comp claims. Employees are told to “work safely,” but are not trained in how to use potentially dangerous equipment. Safety training should never be a “one-shot” deal; it should be continuous.

Cutler: Senior managers and line managers should have the same goals, and workers’ safety should be seen as mission-critical. Companies could develop reward systems, and then safety would become continuous, and people would not become complacent.

Yohannes: A clear policy for reporting injuries — or even closes calls — needs to be established so employees know what their obligations are and who they should go to. It is essential to make clear that there will be no retaliation or discrimination just because a worker reported a workplace injury or safety risk.

How to become informed of your obligations

How can entrepreneurs with no prior experience with workplace safety issues become informed?

Ifurung: There are many workplace safety consultants that provide training and facilitate compliance with safety regulations with the aim of reducing the risk of accidents and injuries. Most workers’ compensation insurance companies conduct seminars and free webinars. These resources have a large online presence, so that’s a good place to begin.

Concluding our discussion, she added, “Safety is everyone’s job. According to OSHA, 80% to 90% of serious injuries are caused by human error that can be prevented by giving site safety training. More than 99% of all accidents are preventable.”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

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