Important Announcement #7
DATE: November 18, 1994
TO: Industry Colleagues And Friends
FROM: John Stiernberg
SUBJECT: Budgets, Trends, And Latest News!
More Big News: This is to share some ideas and update you on activities since Important Announcement #6 was sent in July 1994.
Budgeting for Independent Contractors: Tips on "Temps"
Using independent contractors (consultants, service vendors, and temporary help as opposed to full- or part-time employees) is a common and progressive way for any-sized company to deal with staffing uncertainties. What if your current staff is already overworked or lacks expertise in critical areas? Where does the money come from? How do we find good people? Here are three proven budgeting tips.
1. Create separate budget accounts for a) consultants, b) temporary help and c) overtime in each relevant cost center. You don't necessarily have to spend the money if it's in the plan. Yet, it may be difficult to "create" funding mid-year if you do not anticipate the need. Even if you haven't needed extra help in the past, having the reserve funding built in to the budget is good business--especially in our dynamic market!
2. Become familiar with the costs in advance. Wages and independent contractor fees are in a state of flux, so be sure to get current and forecasted rates, then plug them in to your 1995 plan. Beware of the temptation to budget based on last year's expenditures. Conditions may have changed dramatically, making previous expenses useful only as a point of comparison.
3. Plan for overtime in clerical and semi-skilled job functions. Paying time-and-a half plus benefits to a current employee is often a cost-effective alternative to "bringing in a temp", especially for projects like getting ready for a trade show or assembling a direct mail package. An after hours binder-stuffing party can even be a teambuilding exercise!
Faxback Survey #7: How Do You Use Outside Help?
The trend is for increased use of outside help on an "as needed" basis. This is a part of the shifting employment situation in North America. Do you plan to use independent contractors in 1995? What departments (engineering, marketing, sales, production, finance, or operations) require the most outside help? Is your budget for non-traditional help up, down, or about the same in 1995?
Your feedback on this topic is valuable. Please respond via Faxback Survey #7 enclosed. Simply make a few notes and fax or mail as indicated. Results of the survey will be announced in Important Announcement #8.
Survey Results: We Have Another Winner!
Thanks to those of you who responded to Faxback Survey #6. Seventy per cent of those responding indicated that digital communications were used regularly for electronic mail, 55 % for sales and technical support, and 46% for transaction processing. Most digital communication is with staff and customers. Consistent with national averages, Compuserve, Prodigy, and America Online were the three most-often-used online services. More detailed results are available upon request--see Faxback Survey #7 attached.
The winner of the "Whole Internet User's Guide and Encyclopedia" is Art Shulman. Art is president of Harvey Electronics. Congratulations Art!
See You At Upcoming Trade Events
I will be attending upcoming industry events and would like to know if you are planning to attend:
* CES January 6-9, 1995 in Las Vegas, NV
* NAMM January 20-23, 1995 in Anaheim, CA
* TED 6 February 22-25, 1995 in Monterey, CA
* Custom Builder Conference and Expo March 2-5, 1995 in Chicago, IL
Please let me know if you or someone from your company will be attending each of these key events. Simply check the appropriate box on the enclosed Faxback Survey #7.
Special Holiday Prize Drawing
As promised last issue, the prize drawing is a regular feature of the Important Announcement Series. Here's how to enter:
Returning the survey enters you in the special prize drawing. The prize is a combination of home-made Holiday Truffles (chocolate soaked in Rebel Yell Bourbon) and a $25 gift certificate from Tower Records (redeemable at any Tower location or their mail order service). This is a true multimedia prize--it looks, sounds, and tastes great!
On Monday, December 19, 1994, the winning survey will be drawn at random from the ones received by either fax or mail. Sound like fun? Please respond!
Shameless Promotion
What do we do at Stiernberg Consulting? We are business development consultants. Our clients include manufacturers, publishers, and trade organizations active in the electronics industry, with emphasis on entertainment and communications. We work on a wide range of projects from strategic planning and market development to event production.
We would like to share more information about our practice with you. Please request the updated version of our Business Profile by checking the box on Faxback Survey #7, or contact us via USPS, telephone, or electronic mail. Note: our e-mail address is jandj@delphi.com.
Let's Talk Soon!
1994 has flown by. We hope that you have had a prosperous and interesting year. We are looking forward to 1995, and to hearing from you soon!