By Dani Babb and John Rutledge | MainStreet.com

Inquisitive entrepreneurs and small business owners can find inspiring insights and common sense answers from two industry pros on MainStreet.

Each week Dani Babb, a small business expert and the dean of Andrew Jackson University’s College of Business in Hoover, Ala., and Dr. John Rutledge, the chairman of private equity investment firm Rutledge Capital, offer their advice to scores of entrepreneurs and small business owners. They are also frequent commentators on Fox Business News.

This week they respond to a question from Mary from Arkansas about small business startup funds.

Mary: “How do I get money to start my business?”

Babb and Rutledge: Mary, there are many ways to get money to start your business!

Even though credit is tight there are still lots of options. The right source of money for each entrepreneur depends on the business, the amount of money needed and the potential return.

Try the Small Business Administration for starters. We always recommend that a business check into the SBA, which has a lot of options for individuals wanting to start businesses. They offer loans of up to $500,000 with 10% collateral under the new rules.

However, getting money these days isn’t as easy with tightening lending standards. If you do go the SBA route, be sure you have the business documents required by the SBA before you hit the bank.

If you’re starting a business as a sole proprietorship, you’ll need good credit. If your personal credit score isn’t so hot, Mary, consider creating a new LLC that will let you “start over” in many respects with regard to your financing options.

Another option is to BYOB, or be your own bank. Do you have an attic, closet or garage full of stuff you aren’t using? Many businesses, particularly online businesses, can be started with less than $5,000. Sometimes you can sell enough stuff on eBay (Stock Quote: EBAY) to start your new venture and avoid owing money to anybody. Do this before you approach other sources of capital—it’s always your lowest cost source of money. We helped a business owner two weeks ago that found more than $7,000 worth of “knick knacks” in her closest was able to get her online business started. In about three months she will have an e-commerce store!

Be careful when you approach family and friends. Many business owners say their first round of funding started with friends and family, and yours ma,y too. Those who are closest to you may be the best chance to raise capital; but its cost can be much more than the interest rate. To avoid family tensions, be sure to get an agreement in writing because even the best of businesses can be derailed rather quickly if family money issues come into play. Family holidays can become unenjoyable events. Keep business about business!

If you have a home with equity, you have yet another option—to take out a mortgage. There are a few ways you can do this. One is to get a home equity line of credit. The interest rate is usually variable but you can draw from the line as you need it. Another option is to take out a second mortgage on your home to finance your business, and a lot of people do. Usually, you’ll have the money up front, which means you will need to pay interest from Day One. Money is fairly inexpensive these days. Just be prepared to pay this loan back, whether your business is successful or not.

Credit cards are another option. More than 15% of businesses, including both of ours, started at least in part with personal credit cards. This is OK if you expect to be able to pay it back quickly or can lock in a good deal (a low rate for 12 months or longer) from the bank. If you have an LLC, be sure you take the credit cards out in the name of the LLC and use its employee identification number (EIN) instead of your personal Social Security number. But for startups banks will want a promise that you as an individual will pay off the balance, even if your business cannot.

Many people believe that venture capitalists (or VCs) are the answer. In fact, while VC money gets all the press, it’s not right for most simple businesses. VCs work with less than 1% of businesses and primarily invest in “bugs and drugs:” software, biotechnology, pharmaceuticals and green technology. The best way to get into this community is referrals from others who have received money from a VC. But chances are, if you are starting small and aren’t going green, you won’t get much help from these guys.

Finally, Mary, consider angel investors. Angels are usually local rich guys and gals who back early stage ventures for an ownership stake in your business. Angels invest their own money, unlike VCs. They want very high returns and the potential to earn five to 10 times their original investment within five years. Be cautious here: They will want an equity stake in your business or they will want you to have a plan to take it public. This may not fit your needs.

Good luck!

By Bob Feeman | MainStreet.com

Running a company during a recession can pose major challenges to their owners. But it also offers them an opportunity to revamp their businesses and find new avenues for success.

Here are six strategies for small-business owners who are struggling to survive in a weak economy:

Exercise your bargaining power: Recessions can take a toll on a company’s cash flow. If you’re having difficulty paying your suppliers, work with your vendors to create a payment plan that’s more manageable. You might be able to use the economic crisis as a bargaining chip to renegotiate your contracts and get better terms.

You should also look for ways to reduce inventory to keep overhead costs down. And be sure to bill customers right away, which can help speed payments and keep cash flowing.

Focus on the profit-makers: When the economy is flying, it’s easy to get sidetracked by adding ancillary products or services that might broaden your company’s appeal but water down profits. Take a critical look at everything your business offers and concentrate on the efforts that will bring in the most cash. Weed out time- and labor-intensive services that are less profitable.

Explore the art of the deal: Customers still spend during recessions, but they’re more cautious and sensitive to bargains. If you provide services, consider bundling some together under a lower price. Try offering reduced prices for groups. Look for underserved customers and lure them with discounts. Special prices might hurt in the short term, but attracting new clients will help you generate revenue after the economy rebounds.

Improve customer service: It’s important to retain the customers you have. Show them your appreciation through discounts, special events and gifts. Take the time to talk to them. Provide them inside information about your products and services. If you do it right, they’ll remember you after the economy improves.

Evaluate your rivals: A recession can become an opportunity to attract clients from your competitors. Try offering services that help you stand out in the field, such as free delivery or package deals.

Adapt and get creative: Revisit your original business plan and ask yourself if your vision is still viable in this economy. If it’s not, look for ways to adapt by tapping into new markets or targeting other groups of customers. Consider taking a new marketing approach or changing the packaging of your products. Minor tweaks can create major improvements.

By Heather Grossmann | MainStreet.com

With the unemployment rate careening toward 9% and companies doling out forced furloughs and pay cuts, the search is on for alternative sources of revenue.

The good news is that you don’t need to look beyond your own workbench, sewing kit or crafts closet to find it. More and more people are finding that with a bit of cultivation, a favorite hobby can provide a steady stream of income

Etsy.com, an online marketplace for handmade goods, is a testament to the trend. It took the company two and a half years of hard work to finally hit one million users by January of 2008, but only nine moths later, that number had already doubled. And in each month since, Etsy had added over a hundred thousand new buyers and sellers to its community.

Adam Brown, a spokesman for Etsy.com, says these days consumers are more inclined to buy homemade items.

“Lately, people are more aware of the social and environmental costs of things that they buy,” Brown says. “Handmade objects also have an intangible value…The person and story behind the item. I like to use this story: ‘If your house was on fire, are you going to run in and rescue your stereo, or the dress that your mother made for you?’ ”

MainStreet spoke to four people who have capitalized on this trend, successfully turning their hobbies into earnings:

Jessi Walter has always loved baking. When she lost her job as a vice president of credit strategy at Bear Stearns, she didn’t despair. Inspired by kitchen lessons she had given her boyfriend’s young nieces, Walter started Cupcake Kids, a small business that provides children’s cooking classes (and not just on cupcakes). Now, Walter’s classes regularly sell out and she is looking into opening a second location.

MainStreet: What is the most challenging aspect of running your own business?
Walter: Being in charge of everything! If you don’t do it, no one else will. It’s exciting to have so much control and involvement in what you are creating but it’s also a constant challenge to keep up with my ideas and vision for Cupcake Kids.

What is most rewarding?
It’s amazing to see the company grow. I love looking at how we’re expanding each month and how we’re improving in every area of the business. It’s also wonderful to work on generating new lines of business.

What have you learned?
The biggest insight is that it’s hard. I’m so glad that I made the decision to pursue Cupcake Kids, but it’s been a lot of work. Many more hours than Wall Street. My head brews with ideas from morning to night!

What tips would you give people looking to turn a hobby into a business?
Love what you are going to do. You have to embrace the whole process (not one specific element of your business). If I only liked teaching kids to cook, I wouldn’t be very happy right now. I enjoy the marketing and the business planning, etc. You have to be in it for the whole package. You also need to be realistic about your goals and whether or not they are attainable. Budgets are very hard to do but they really help!

Joe Oliveri has been collecting broken and obsolete computer parts in his basement for more than a decade. His plan was to retail them on eBay (Stock Quote: EBAY), but he quickly realized that some items just don’t sell. Three years ago he had his eureka moment when he saw a clock made from old hard drives for sale. He thought, “Hey, I can do that.” And he did. Oliveri started GeekGearStore.com that year and has been making money off of discarded computer parts ever since.

MainStreet: What is the most challenging aspect of running your own business?
Oliveri: The challenge is managing my time between my day job, family and Geek Gear. And recruiting my own customers…I recently started a mailing list to try to keep in touch with my previous customers and keep them informed on my latest creations.

What is most rewarding?
Geek Gear fulfills a few things in my life. The first is legacy. It’s the thought that knowing something I made might be around after I’m gone. Next is satisfaction. When I make a new product it’s like winning a baseball game. I tell myself when I sit down at my workbench to brainstorm, “I need a win here!” And, when a customer opens a box from Geek Gear, I want them to be happy and bring a smile to their face.

What have you learned?
The most important part to any of my business is customer satisfaction. A happy customer tells a few people about you. An unhappy customer tells everyone!

What tips would you give people looking to turn a hobby into a business?
First and most important is to keep it fun. When it’s a hobby you do it for fun, so when you make that jump to business keep it fun!
Second, keep it simple! When I make a new product, I usually only buy enough supplies for one or two. If I can sell two, I can probably sell four, then eight, then eventually fifty or more. This way I’m only investing in parts that will be used in my products. You may come up short on stock from time to time, but it will keep your expenses down.

Cyndie Smith spent years traveling the globe as a health care executive. It was tiring and frustrating and eventually she’d had enough. Smith took a metalworking class for inspiration and, when a friend told her about Etsy.com, she decided to try and sell one of the bracelets she designed in class. She sold 49 of them in short order and in 2003, Cyndie Smith Designs was born.

MainStreet: What is the most challenging aspect of running your own business?
Smith: Time is my biggest challenge. People think, because it’s my own business, I can just do it when I feel like it. Not so! There’s marketing, updating websites, photographing, record keeping, packaging and mailing, and finally, creating.

What is most rewarding?
The fact that most of my customers keep coming back. It took about a year to create a loyal following, but I have people whose entire family has one of my designs. They’ve become friends, not just customers, and they come to me for custom designs. I love that, because it means that each piece has a special meaning to them.

What have you learned?
After almost two years, I’ve learned not to let it take over my whole life. It’s so easy to get caught up in the thrill of it all, like Sally Fields at the Oscars: “They like me, they really like me!” I wish I’d known how to balance it all. I’m still learning but I’m getting better at it.

What tips would you give people looking to turn a hobby into a business?
It can’t be done half way. People considering this move need to understand that the business doesn’t just come to you. It’s hard work and requires hours of marketing and follow-up. When I first started, it was two hours of online marketing in the morning, and two hours late at night (to catch the West Coasters, and the international market). Also, customer service is everything. A quality product won’t go anywhere if the customer isn’t happy.

Traci French taught kindergarten through fourth grade for 10 years, and while she loved the kids, she wasn’t as fond of the work. When readers of her blog started asking to purchase the photos she posted, she realized that she could make a living doing what she loved best. French is now a full-time mom and a full-time photographer. She sells her work online and to companies like Urban Outfitters.

MainStreet: What is the most challenging aspect of running your own business?
French: Time management. I have the toughest time with that. I have nobody to answer to, so many times I put everyday life in front of working on my photography. Although, it can also go the other way. Many times I feel like I should really be giving my family my full attention, but then get caught up in my photography or blog.

What is most rewarding?
Oddly, the same thing. I love the fact that I don’t answer to anyone and can spend the day tooling outside with my son if I want to.

What have you learned?
I wish I went for it earlier. I wish I had spent my 20s trying to come up with a career path that I would absolutely love, rather than something just to get by.

What tips would you give people looking to turn a hobby into a business?
As hokey as it sounds, put good things out there and they will come back to you over and over again. I have been amazed by how kind and giving people can be and how good it feels to admire the work of others. Also, commenting on other people’s blogs is a fantastic way to introduce yourself and what you do.

By Ann Evanston | WomenCo.

Do you need more exposure for your business? Do you want ways to connect quickly with many people? Then social networking is for you!

Many entrepreneurs, like myself, are on social network sites like Womenco.com. The opportunity to expose our business is there, but do we understand how to use it to grow?

Web 2.0 has greatly changed the face of business – it is simply amazing! What you want to realize is that trusted friends – online and offline – refer and do business faster and more efficiently than, say, advertising.

Here are my tips on using online social networking to increase your business:

1. Join sites that interest you, so you will have fun participating. Pick sites that will you a chance to showcase your expertise. Being a member on WomenCo. has allowed me to share my insights as an entrepreneurial woman which increases my business exposure.

2. When you sign up, make sure you are a REAL person! Don’t be “sxychk2008” or “businessmama.” Use your real name – NOT your company name because it feels like you are selling your business. After all, how can people do business with you if they cannot find you? As a small business owner, I need people to be able to get access to me easily – the harder I make it the less likely they are to do so. And your name should ALWAYS be search-engine optimized!

3. Actively participate by commenting on discussions and starting your own discussions. Be careful that you do not shove your business down everyone’s throat! A common mistake I see is someone joins the network then immediately posts a “discussion” about their business. Your profile is about what you do! When you can weave your expertise into a discussion, then you build your business credibility. Remember: you are there to be social first. Your business can grow because you “play” according to the site users’ interests!

4. Spell check all your posts! Type your posts in Word, and then copy and paste! Depending on how serious you are, I highly recommend an editor.

5. RSS your blog to your personal page if at all possible, and then people can learn more about you. If you cannot do that, at least post the link!

6. Get a quality picture of yourself and use it – it will go everywhere you post! People always tell me they can feel my positive energy from my picture. A good picture should showcase the “real you.”

7. Post comments on others’ discussions.

8. Be careful who you become “friends” with – do your homework first. I had one woman ask me to be her friend, and she turned out to be a card-carrying member of a cult-like organization! NOT the right connection for me!

9. Make sure you get e-mail reminders if people comment on your discussions or leave messages for you! You do not want to forget, you want to be prompt, and it’s a good way to remember to check out what’s going on on the site regularly!

10. Show up! Social networks will not help you grow if you do not show up! Plan to be on the site at least three times a week.

Happy networking!

By Ann Evanston | WomenCo.

I often hear people say: “I want to work from home,” or “I’d love to be my own boss.” Even better? Some say, “I have a great idea for a business.” But do they have the right mindset? I’ve also heard people say, “I have an entrepreneurial mindset.” But what does that really mean? Do they have what it takes to become not just entrepreneurial, but a successful entrepreneur? Find out here!

1. Are you a risk taker?
You must be willing to take chances, explore new concepts, ideas, people, and places in order to be successful as an entrepreneur.

2. Do you take advantage of opportunities?
Being able to see opportunities and seize them right away — and not later — is extremely important for an entrepreneur.

3. Do you feel fear and move through it with excitement?
Fear is a part of any entrepreneur’s life, but entrepreneurs usually thrive in this environment, even if it feels a bit scary. And, if they don’t, they feel the fear and do it anyway.

4. Are you willing to learn?
Entrepreneurs are not afraid of learning new things, trying new concepts, stretching themselves, and getting out there, because initially they often have to do it all themselves.

5. Do you adapt to change quickly?
The world is moving fast. Technology seems to change faster than the speed of light! And you have to be willing to change with the needs of your customers and technology in your business.

6. Are you self-disciplined?
An entrepreneur does not have a boss watching over them. An entrepreneur has to be able to get up and do what needs to be done, when it needs to be more, whether they want to do it or not.

7. Do you enjoy sales?
Let’s face it — you can’t be in business and be afraid of sales. So learning about sales and how to close business is important. You must also be comfortable with sales and enjoy doing it, because you love what you sell.

8. Are you influential?
There are many businesses doing exactly what you do (or want to do). You have to have the personality and presence that will influence others to want to be a part of what you have, in person and online.

9. Are you a connector?
Highly successful entrepreneurs have a network of connections that they refer to all the time.

10. Are you results-oriented?
Entrepreneurs need to have the ability to know what their goals are and how they are going to achieve them, and measure those successes so they can continue to move to the next level.

11. Do you understand the intrinsic motivational factors?
Motivation is the key dynamic of how you attract people to your business and close sales; understanding and studying it will make you more successful.

12. Are you willing to expand by hiring help?
Do you know the single biggest mistake that a person who thinks he or she is an entrepreneur makes? Thinking they can do it all. Your business cannot grow if you do not eventually get some help! These 12 factors will help you become more entrepreneurial in what you do. Evaluate where you are. See these traits in yourself and know that if you do these things well, your business will skyrocket.

“Kidding Around”, a specialty toy store in NYC, is doing everything it can to prepare for new lead restrictions on toys and increased costs. But even though the owner is raising prices on the consumer, this small business faces dire times.

This is part two of our interview series with race car driver Danny Bopp. You can win the Geezeo-emblazoned, autographed hood of his car later this month. More info here.

Danny, you were unable to compete in the ARCA RE/Max Series race on April 19th due to lack of funds. I’m sure you were very disappointed. Yet, at the same time, that’s exactly what we’ve been discussing: pursuing dreams frequently requires monetary hurdles, too. Knowing this won’t slow you down. What’s your next move?

Well, you are right, there are many obstacles you must face, and at times it is disappointing. My next move is to take a step back and analyze why I was not able to overcome this, and continue new and improved strategies that I am sure will work. I am currently meeting with new potential sponsors, as well as new race teams to drive for.

Today we’re talking about multiple channels of income to support a larger goal/dream. When you don’t meet a benchmark, how do you personally bounce back and stay focused?

Not making a standard to me means there is an avenue or angle I have not taken or focused on enough to see the results I need to see. Disappointment is part of the challenge, and not everyday is going to be perfect. Realizing that everything does not work out the way it should now can actually become a blessing in disguise at a later time.

As we discussed last week there are real-world costs associated with pursuing a dream. To work toward your racing goal you’ve aggressively pursued other income channels, all of them entrepreneurial. What sorts of projects do you do? How do they fund your main objective?

I actually began modeling and acting around the time I started racing, at twelve. I learned at an early age what it takes to be my own brand as well as own my own business. I believe a person has more independence and responsibility when running their own business. Racing is very much in the same manner. You have to learn marketing, business development, and accounting. Pursuing a dream is a self-motivating lifestyle.

If you weren’t a race car driver, do you think you’d still pursue small business ventures?

Absolutely. I love everything about what it takes to run and manage a business. Along with driving, I have other avenues that I firmly believe in that I may still begin if my schedule allows.

What are some of the biggest lessons you’ve learned as an entrepreneur? What are the benefits?

There are pros and cons to both. By working a stable job, you have a steady income, possibly a 401K, etc., and with being an entrepreneur the stability is not there, but there are many leadership skills you must acquire to stay on top of trends and your finances. The biggest lesson I have learned is to always be courteous and respectful to everyone you meet. You never know when your paths may cross again.

What advice would you share with someone who is starting a business in order to support a larger goal?

I believe the proper education is necessary, but can only take you so far. It is up to the individual. It really comes down to common sense. Do you have what it takes to start a business, is there a market for it, or is it the right time to do so? Planning and preparing is key to any business or dream.

We fully agree. Thanks for taking the time to talk with us, Danny.

By Nicole Crimaldi | WomenCo

Take a look at the top 2 reasons businesses fail: inadequate capital and excessive cost overruns. Don’t let your business fail because of these two things. Since most of us don’t have lots of capital available to us to start our operation, we must use what we have wisely.

Here are 10 ways to use that capital wisely and manage your start-up costs.

1. Start small. Excitement is great: it is the power that will get you through the tough days in your business. Don’t let that excitement lead you to buying too much inventory, spending money you don’t have on a lavish website, etc. I’ve also been guilty of this one. You get this great idea, it makes perfect sense in your mind, you know you are going to be a rock star and achieve all of your goals right away so you just “go big.” Then you start the business and face the inevitable road blocks that come up, or get anxious about the thousands of dollars of inventory that are sitting in your closet unsold. Then starts the downward spiral of disappointment and discouragement which is enough to cause many entrepreneurs to shut down their venture and get stuck with the bill.

2. Don’t get carried away with marketing materials. I have also been guilty of this one. Marketing materials are the fun part of starting a business: choosing a logo, designing business cards, picking out graphics and colors for your website, getting business stationary, etc. Unfortunately getting caught up in colors and patterns doesn’t make you money. Yes, marketing materials are important but making money is more important. Also, keep in mind that your business model may evolve and change over time. Therefore it may be wise to start simple with your marketing materials and re-evaluate after a few months. The business cards I spent so much time making are now obsolete and ready for the trash as my services have completely changed from 6 months ago.

3. Join Twitter. I will never get tired of telling everyone to join Twitter. I have seen it work in amazing ways for me over the past 2 months when I finally caved and joined. Twitter is basically a micro-blog where each entry is limited to 140 characters. Through a simple web interface you can send out “tweets” and read others’ tweets by following other Twitter users. As of this post, I have over 1,100 followers which I’ve gained in a very short time period. From Twitter, I found my logo designer (which I got a discount on), I was offered to be a featured writer for WomenCo and several other publications, I was interviewed for a book, will be doing a segment on Blog Talk radio, and have found a few of my mentors there. All for free. Just remember that Twitter isn’t a self-promotion tool. It is a way to build relationships with other entrepreneurs and potential customers. To find people who share your interests, go to search.twitter.com to put in your interests and connect with people.

4. Partner with other entrepreneurs. My experience with Twitter is the perfect example of entrepreneurs who want to help each other. If you aren’t good at accounting, perhaps someone in your network owns a small accounting practice. What if that accountant needed help with marketing, staffing, or something else that you could offer to barter services? Speak up and ask for help from other entrepreneurs and be willing to help them too. You will save money and grow valuable relationships which will be key as your business grows.

5. Don’t waste money on fancy office furniture/supplies. Again, fancy desks and paper shredders are not going to make you money. Keep this in mind when you are going through the aisles of Office Max like a kid in a candy store. Save the fancy office furniture for much, much later.

6. Hire interns. Interns are thirsty for experience and knowledge. If you pick your interns carefully, you will get a lot of “bang for your buck.” Your interns are probably better and faster when it comes to technology, trends, and implementing new systems for your business. Your interns can work on marketing projects, or even just get the administrative tasks out of the way so that you can focus on growing the bottom line. Interns are a win-win if you are both willing to work hard and learn from each other.

7. Negotiate everything. Everyone had to start somewhere and everyone wants new clients. Therefore, make sure to ask about discounts for new businesses. This includes bank fees, insurance rates, marketing material and web design. Many companies will be willing to give you a discount if they see you as a solid client in the future. Featuring and linking your vendor in your blog/website helps too!

8. Cash is king. There have been a few rare stories of people starting their small business using credit cards and actually making it. This is called a miracle. Try to pay cash for as much as you can. Piling up debt to start a business can be very stressful and risky. Take advantage of vendors who will offer a discount for paying cash, little discounts really add up.

9. Take advantage of your local college. Many colleges have outstanding business development programs that help entrepreneurs who are out of school brush up on their skills. Better yet, contact your local college’s marketing or entrepreneurship department to see if your business could be a project for the students. College students are often the best “consultants” because they are up on technology, trends and what businesses are doing right now. They will probably think about your business in a completely different way than you do, which can lead you to new ways of thinking and innovating your concept.

10. Join an incubator or entrepreneurship organization. Ten brains are ten times better than one. I was part of a Ladies Who Launch incubator in June of 2008 and it really helped me organize my ideas, get confident and get started. LWL incubators are a group of 10 women who get together once a week for four weeks. For me, the incubator just got better and better. Also, since we were all had different backgrounds we learned so much from each other. Before June, the terms SEO, HARO and Meta Tag were foreign to me. Thanks to the incubator I was able to get a website going, and get my first client. I also stay in touch with most of the women from my group and help them whenever I can, and they do the same for me. Other great organizations for women entrepreneurs include: Step-Up, SCORE, and Count Me In.

By MainStreet.com Staff Writers

In tough economic times, many companies would rather cut back on employee hours, rather than layoff workers. Switching to a 32-hour workweek from a 40-hour workweek is a popular way many small businesses are cutting back on wages, without sacrificing health or retirement benefits for their workers. Additionally, many employees seek flex time to work around the changing needs of children, spouses, school and second jobs. As an employer, though, you have to be careful that negotiating flex time doesn’t take away from a productive work environment, or cause feelings of imparity among your office staff.

Negotiate Individually

It is always best to negotiate privately and individually with your employees. No two employees will likely have the exact same needs, so these details are best worked out with a human resource person present and in a closed-door setting.

There are psychological benefits to giving your employees flex time, but you have to ensure that your work caliber is not adversely affected in the process. When recruiting new hires, be honest and open about your policy on flex time. Further, don’t single out flex time benefits for your “favorite” workers. If you can’t afford to give flexible hours to everyone in the same department, then don’t do it at all.

Avoid Giving Too Much

If an employee wants to come into work a little later and leave a little later on Tuesdays and Thursdays in order to avoid traffic, this is typically an easy agreement to achieve. However, when an employee with a shallow work history wants to telecommute from home three days out of the week, he is usually asking for too much. The key is to find a balance that will still allow your employee to accomplish all of their needs without sacrificing their quality of work.

A great way to draw the line in negotiations for flex time is to set rules. For example, some businesses institute “core time.” This is a window of hours that every employee must be on site in order to schedule and accommodate group projects. For example, this could be from 10am to 4pm. During this time, all of your workers are on site, which allows you to schedule company-wide activities without hesitation. Whatever flex time arrangements are made outside of this time is up to your discretion.

Things to Keep in Mind

Flex time is ideal for some people, but it simply doesn’t fit every type of business. If you operate a critical industry, such as a medical facility, flex time may not be an option. As a matter of fact, according to the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, one in four employees are eligible for flex time, but only one in 10 actually utilize it.

Related articles:

• So You Want to be a “Daylighter”? (geezeo.com)
• New Rules for Freelancing (geezeo.com)
• How to Ask for a Raise in a Recession (geezeo.com)