Keeping your employees happy is one of the key elements to maintaining a successful business. Though it is important, fair and competitive pay is not the only thing that employees look for to remain happy in a position. In fact, it’s only the beginning.

1. Flexibility
Employees want to be able to balance their job and their family responsibilities in a way that benefits both. Providing a flexible work schedule translates into a happier employee. If feasible, provide your employees with the opportunity to set their own hours, as long as the put in a certain amount of time each week. You will find that those employees will be much less likely to let their personal lives interfere with their work.

2. Job Security
Employees in a larger business want to know that they are not expendable. It’s important that you make laying people off an absolute last resort if something goes wrong, and make sure that your employees know that. It’s hard to be committed and loyal to an employer who has no concern about your job.

3. Fair Treatment
Far too many employers believe they must enforce strict rules and discipline in order to obtain the best performance from their employees. Granted, approximately 5% of employees do require a continual kick in the pants to stay on task. But most employees will respond much better to being trusted. Don’t hold it against your employee if he comes back from lunch five minutes late one day. Chances are he’s also the guy that stays a few minutes late without question when you need him.

Also, do everything you can to avoid office politics. Yes, you are their boss, but you also couldn’t run your business efficiently without them. You’ll get a much better performance out of employees if you treat them more like equals rather than subordinates. And don’t allow your seasoned employees to treat new employees like doormats. Your business shouldn’t be a hierarchy, it should be a team.

4. Appreciation
Recognize your employees’ achievements. Provide positive feedback when ever you observe a job well done, even if it something as simple as a successful telephone call. Make an effort to say hello each day and care about your employee. On Monday, ask her how her weekend was, and actually listen to her answer. Not only will this motivate your employee to work harder for you, but it will also open lines of communication and allow your employee to feel like she can come to you if she has a concern.

5. A Pleasant Environment
The spectrum of a pleasant working environment includes everything from sitting next to someone who wears deodorant every day to colorful walls, sunlight and fresh air. This also comes back to the fact that you should take time to talk to your employees each day and acknowledge their existence.

Encourage employees to get along with co-workers by hiring people with positive attitudes and great people skills. Consider providing opportunities for employees to socialize a bit, such as a birthday party over the lunch hour once a month for employees whose birthdays fall that month.

Recognize that employees want to be treated like adults and need more from you than a paycheck. Establish a positive relationship with your employees and watch your business thrive as employees become more devoted and enthusiastic about their jobs.

Sources:
• University of Pennsylvania: Giving Employees What They Want
• About.com: What People Want From Work
• MoreBusiness.com: Flexibility: What Employees Want in a Job

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If you are hiring an employee for the first time, one of the most difficult tasks ahead of you is figuring out how much to pay him/her. The salary you offer must be fair and competitive, without paying too much for the job at hand.

SET BOUNDARIES
The first step to determining how much you will pay your new employee is to determine the ceiling and floor. The ceiling is the maximum amount you are willing the pay, and the floor is the least amount you should pay.

Decide how much the job is worth to you by asking yourself how much value someone in the available position will bring to your company. Also do some number crunching and determine how much you can afford to pay while still making a profit. For a salesperson, the pay is based on revenue and easy to determine. For administrative staff, you need to ask yourself what the cost would be to your company if there was no one filling the position.

Market rates are the source for determining the minimum you should pay. Candidates expectations are based upon the market, so you need to be aware of what the competition offers. You will first need to have a job description handy. Basing the market on title alone leaves lots of room for negotiation. For example, a marketing director can earn anywhere from $50,000 to $500,000 a year. Break the job down and be specific about the responsibilities it entails.

There are a number of sources available to determine the market value of the job you are offering. Call your local chamber of commerce and ask about similar jobs in the area. Read the local classifieds to see what others seeking employees are offering.

Search Google for “salary surveys” to compare business and trade magazine surveys of jobs nationwide. Or, you can also use websites such as the U.S. Bureau of Labor Statistics and/or Salary.com to determine past and current salaries locally.

TYPES OF PAY
There are several ways to pay an employee. Explore all the options based upon the job you are offerings before determining what works best for you. The following are types of pay to offer an employee.

1. Hourly
Hourly pay is typically associated with work product that is a direct result of the time put in, such as assembly line employees. You must meet the minimum wage requirements, which is $5.15 federal, but some state minimum are higher. This is also solely based on eight hour work days for a total of 40 hours a week. Hourly employees typically get time and a half for overtime and working on holidays.

2. Salary
Salaries are a fixed payment amount, usually determined by an annual salary that is divided into 52 weeks a year. Salary is usually associated with administrative positions, such as clerical or managerial jobs. Salaried employees are paid the same each pay period, regardless of sick days or vacation time (as long as it is within the parameters set by the company policy).

3. Commission
Commission pay is most often used in sales positions – a job that contributes directly to revenue. Most salespeople are paid a low base salary and then receive a percentage of the sales they bring into the company. This opens the opportunity for effective salespeople to make six and seven figures a year, which also means they are making 10-20 times that for your business.

4. Bonuses and Benefits
Keep in mind that most every applicant is going to expect some sort of incentive outside of legitimate pay. Consider offering bonuses occasionally as reward for a job well done. You should also look into benefits for your employees. Your first thought is, of course, health insurance and company stocks. But also consider the less obvious benefits such as a set amount of vacation time, paying for the employee to further their education, and even casual dress requirements. All of these make a job much more motivating.

PLAN AHEAD
When determining what the starting pay for your new employee will be, remember to leave room to grow. Everyone expects to and strives for earning a raise. Inflation, when the buying power of your employee’s salary drops while the amount is stagnant, occurs on a yearly basis. Salaries need to adjust to accommodate.

Also, consider the fact that, when and employee first starts he won’t know the ropes very well and will make mistakes, but, as time progresses, he will learn more and become more efficient, thus becoming worth more to your company. He will deserve a reflection of such growth in his paycheck.

Sources:
• Entrepreneur.com: How to Set Salaries
• Microsoft.com: 5 Steps to Determine an Employee’s Salary
• Bliss & Associates, Inc.: Deciding How Much to Pay Employees
• ItsSimple.biz: What Other Employers Are Paying

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If you’re hiring an employee for the first time, the interview process can be just as intimidating for you as it is for those who apply for the job. Here are some tips for smooth and successful interviews.

Get the Word Out
Once you’ve determined exactly what you’re looking for in the person you hire, write out a job description. Be sure to include the work hours, what education and experience is required to fill the position, the characteristics needed to perform the job successfully, and, of course, where resumes should be sent.

It is best to have two job description formats, a brief description for periodical circulations such as your local paper, and a detailed description for online job search engines, such as Careerbuilder.com. Also, check with local colleges and see if they have a career center, as most provide an online job search for students.

Review and Prepare
Set aside time each day to review any resumes you’ve received. It’s a good idea to have the job description in front of you as a reminder of what requirements you presented for the position. Rate each candidate on a scale from one to ten. This will give you a quick reference on whom to call first for an interview.

Also, for those candidates you intend to meet with, jot down any questions you may have about information they indicated on their resume, such as why they were unemployed for two years, or why they want to leave their present position. Additionally, you will want to have a list of basic interview questions that you ask each candidate, to give you a basis of comparison.

Some suggested questions:

• What would be the perfect job for you and why?
• What characteristics in a supervisor motivate you to produce your best work?
• Name and explain your top two strengths and weaknesses.
• Where do you see yourself in five years?
• Describe two instances where your work was criticized and how you responded.

Conducting the Interview
Anyone who walks through your doors for an interview is going to be nervous, regardless of their credentials. Put them at ease by starting with small talk and neutral topics such as what the job entails or how and why you started the business and where you see it heading.

Then move on to questions about the information listed on their resume. Avoid questions with yes or no answers, but, rather, keep the questions open-ended. To avoid rehearsed answers use follow-up questions and keep the candidate thinking on their toes.

Have interviewees bring documentation with them to prove the accuracy of their resume, such as college transcripts or letters of recommendation from previous employers. Not everyone is honest on their resume, in fact, nearly 40% of job applications have some sort of inflated or bogus information, so have then verify it.

During the interview keep your eyes open for the expression of qualities you’re looking for in a potential employee. Is the candidate communicating clearly? Does she express passion for the industry? Pay attention to the nonverbal cues such as their posture and outward appearance. Did he take time to iron his shirt?

You may also want to consider having each candidate take a personality or assessment test as part of the interview process. I highly recommend investing in the Personality Puzzle Test developed by Florence and Marita Littauer specifically for employers and employees. Take it yourself and then provide it to potential candidates to see how well your personalities will click.

Before making any decisions, always call all references listed on the resume and anyone that may have written a letter of recommendation (to verify that he actually wrote it). Also, it’s always a good idea to perform background checks on education, judicial matters, and previous employers. You’d be surprised what some people think they can hide.

Be sure to give the potential employees a time frame for when they can expect to hear from you. They will be anxious, so don’t leave them hanging in the air on whether or not they got the job. Make personal calls or write rejection and offer letters. If it is a rejection, be sure to explain why so that they can see where they might need improvement.

For further information on the requirements for becoming a first time employer, be sure to check out yesterday’s post How to Hire Your First Employee.

Sources:
• Entrepreneur.com: Hiring Your First Employee
• Entrepreneur.com: Interviewing Applicants

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The signs are fairly obvious. Most of your waking moments may be spent running the business, and time is taken from your family and friends. Maybe you’re unable to keep up with demand and are actually having to turn customers away.

More or less, your stress level is beginning to climb rapidly as the papers stack up and nothing seems to get done. It’s time to get some help.

Before looking at prospects, consider these things:

What are you looking for?
Make a list of the things that need to be done for your business to run smoothly. Indicate which of those tasks you must do, which of the tasks you’d prefer to do, and which of the tasks can be delegated elsewhere. The latter is what you need that first employee for.

Think about what kind of manager you are in order to determine the best type of person to fit your style. If you’re the type that delegates and then does your own thing, then you will need someone who can think independently. If you get stressed occasionally, then you may want someone that works well under pressure.

Next, decide exactly how you want the business to grow with the additional help. If you’re looking to take this transition slowly, then you need someone for the clerical and administrative tasks that you just can’t seem to get to, such as filing and mail. If you’re ready to plow full speed ahead, you’ll want to find someone that can handle larger areas such as sales and distribution.

Once you’ve figured out exactly what you’re looking for, write out a job description. This will come in handy when you are coming up with help wanted ads and during the interview process, but it will also serve as a personal reminder of the load that will be taken off your shoulders once the right person is found.

What are the legal prerequisites?
There are several things you will need to do in order to legally be ready to hire someone.

• Obtain an Employer Identification Number (EIN) for tax returns.
• Obtain Workers’ Compensation Insurance.
• Register with the Department of Labor for your state.
• Invest in payroll software in order to properly withhold taxes. See the IRS Employer’s Tax Guide for further withholding information.
• Provide a safe working environment based upon the Occupational Safety and Health Act (OSHA).
• Familiarize yourself with IRS Form 940-EZ, which you will need to file each year.

What are the business prerequisites?
In addition to legally preparing for an employee, it’s a good idea to implement additional business practices prior to seeking help.

• Determine what your time-off policy will be, such as vacation time, sick days, maternity leave, etc.
• Set up employee benefits, if feasible, such as health insurance or a 401(k) plan, including a sign-up procedure.
• Determine the disciplinary and review procedures for your business.
• Create an employee handbook, which indicates your business policies, including those items previously listed. Include a signature page for the employee’s indication that he/she read the handbook.
• If you have any information you need to protect from the competition, such as the recipes for your gourmet restaurant or lists of clientele, have an attorney draw up a Non-disclosure Agreement and/or Non-compete Agreement for every future employee to sign.

Hiring an employee can be intimidating, as it will knowingly take up precious time and resources. Make sure that your reservations don’t keep you from waiting too long. Missing the right window of opportunity may force you to hire in a hurry, resulting in the wrong person for your business.

Even if your situation only seems moderately stressful, evaluate your business and whether or not even a part-time employee might make things run more smoothly. At the very least, you will be able to determine when you may need someone in the future and start planning ahead to make the transition easier.

Sources:
• Inc.com: The First Employee
• Nolo.com: Hiring Your First Employee - Ten Things You Must Do
• Microsoft.com: Five tips for Hiring Your First Employee
• AllBusiness.com: Ten Tips on Hiring Your First Employee

Tags: Employer Identification Number, Department of Labor, payroll software, OSHA, employee benefits, 401(k), business policies, Hiring an employee

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CONTINUED SUCCESS
BUILDING AN eBAY EMPIRE

Congratulations! Your eBay business is now up and running and bringing in the dough! You may even be ready to expand your part-time operation into a full-time adventure. Let’s examine some ways to upgrade your business and continue on this successful path.

Flexibility
It is important to be flexible. Be willing to change the market you’re in to match the current trends. New opportunities will come knocking, and you have to be willing to take advantage of them. Flexibility also means variety, which, as they say, is the spice of life.

Quality Customer Service
Upgrade your customer service to the next level. For example, you may want to provide a handy 800 number for potential buyers to reach you immediately for answers to their questions. Send customers an e-mail with each new phase in the conclusion of your transaction, such as thanking them when you receive their payment, notifying them when their item has been shipped, and following up with them when they receive the item to ensure satisfaction.

Providing a tracking number with every shipment earns brownie points and gives the buyer peace of mind. You may also want to consider providing discount shipping to your buyers with the purchase of more than one product from you. This strategy is a must if you are selling products such as books or movies, since the shipping cost for multiple items increases minimally. This option is very popular and one of the first incentives that buyers look for. A seller who doesn’t provide a multiple item shipping discount can really turn a buyer off.

Tips, Tools & Advice
Joining an eBay community can help you to determine what buyers are interested in as well as get advice from fellow sellers, or just meet new people through discussion boards, blogs and chat rooms. The PowerUp Newsletter provides helpful tips, ideas and eBay news.

There are also some great tools available to help you improve your eBay business. Sellathon.com provides a 30-day free trial of ViewTracker, which provides information on potential buyers, including what search terms brought them to your listing. Seller’s Assistant Pro is eBay’s desktop sales management tool. And eBay’s free program Turbo Lister allows you to recreate your listings in bulk, without having to retype each, and without loosing that professional quality.

Who You Are
Don’t forget to fill out the About Me Page. This gives you an opportunity to share with your potential customers what led you to start your eBay business and what ideals your business holds to. Providing this information to your buyers helps them to feel as though they can trust you and will keep them coming back.

eBay Store
The best way to boost your sales and expand your eBay business is to open an eBay store. On average, sellers see a 25% increase in sales within three months of opening an eBay store. Your store will cost a monthly fee, but you do receive discounts on other eBay fees and access to many other features and services that are not available with regular listings. You can create both auction-style listings and items with fixed prices, adding flexibility to your setup. Your eBay store will allow buyers to find your products in one location, on a customizable webpage designed just for your business.

eBay Store Fees
Subscription fees for an eBay Store vary depending on the size of your operation, starting at $15.95 for the basic store package to $499.95 for the anchor store package. For more information, visit the eBay Store Subscription Fees page to view side-by-side comparisons of the 3 available storefront packages. Also available is the eBay Store Fees page which contains information about Insertion, Final Value, Listing Upgrade and Picture Services fees.

Implementing these additions to your already thriving eBay business will have you well on your way to an eBay empire. Many eBay business owners see sales in the millions each year. Though some days you may have to stretch and stand on your toes to get there, success in the eBay world is well within reach.

View Part 1 - Learning the Basics
View Part 2 - Selling an Item
View Part 3 - Casual Seller to Powerseller

Sources:
• AllBusiness.com: Nine Reasons to Open an eBay Store
• Entrepreneur.com: eBay Made Easy
• Entrepreneur.com: Getting Started on eBay

Helpful Links:
• Entrepreneur.com: eBay Center
• Owen & Emma’s eBay Store Library

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CASUAL SELLER TO POWER SELLER

Now that you have a little experience under your belt, and have built up your feedback rating, it is time to transition from a casual selling hobby to an actual eBay business.

First, determine what exactly it is you want to do. Will your business be a full-time or part-time commitment? Remember, you can always start out part-time and see how it goes; you may want to expand later. Will you work from home or a commercial location? Will it be a one-person or couple operation, or will you hire employees?

The Product
Part of the transition to an eBay business is moving from selling miscellaneous items to a select category of products. The most successful eBay businesses specialize in a specific product category also known as a niche. Deal with products that most interest you, whether it is antique pottery or discount golf equipment. Your product line needs to be something that you can easily become an expert in, if you’re not already. This will give you a significant advantage over other sellers.

Once you have determined your products, research how many other eBayers are selling the same things. Competition can be fierce in the beginning, so you want to provide a product that will help your business to stand out as much as possible.

Next, determine how you want to set up your listings. You can either sell products by the auction method, by a fixed price only, or do both. If you have multiple numbers of the same item, you may want to list some as auction and some at a fixed price. This will give you an opportunity to see which way that particular item sells better.

Your Time
Selling on eBay can be time consuming, so establish a routine. Determine a block of time in your day or week that you will devote to your eBay business, if it is only part-time. If the business is a full-time operation, then map out your day by determining when you will respond to e-mail questions, when you will list new items, when you will package shipments, etc.

Also, when will you make trips to the post office for mailing? Most postal carriers, including the U.S. post office, will pick-up your shipments, if postage has already been paid and you arrange for them to do so. You can pre-pay postage through eBay or by establishing an account on the carrier’s website. If that is not currently an option, determine what day or days of the week you will drop your packages off. It is also important to indicate this in your listing details, so that the buyer is aware of how long it will be before the item is shipped.

The Details
Speaking of listing details, be sure that your listings reflect the professionalism of your business. Proofread and use the spell check option, which eBay provides, on all of your listings. Limit the type of fonts you use to two and don’t use background colors that make the words hard to read. Highlight important words like “Free Shipping” in a different color than the rest of the text, such as red, to draw the buyer’s attention to them.

Supplies
This transition period is also a good time to invest in whatever equipment you don’t already have readily available. A digital camera and postal scale are a must. It is helpful to have a digital camera with a macro setting so that you can take close-up shots of smaller items or details.

If you are working from home, you may want to consider setting aside a work area just for your eBay business. Not only will this make things simpler because everything is right at your fingertips, but also be able to use the space and organizational products you buy as home office tax deductions.

Start slow, listing only a few products each day, so that you don’t have them all ending at once and become overwhelmed. As time progresses and your routine becomes more established, it will be easier to step it up a bit. You’re your own boss, so determine a pace that works best for you and stick with it.

View Part 4 - Building an eBay Empire
View Part 2 - Selling an Item
View Part 1 - Learning the Basics

Sources:
• Entrepreneur.com: eBay Made Easy
• Entrepreneur.com: Getting Started on eBay
• AllBusiness.com: Setting Up a Home-Based eBay Business

Helpful Links:
• eBay.com: Getting Started as a Seller
• Entrepreneur.com: eBay Center
• AllBusiness.com: The eBay Business Plan

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SELLING AN ITEM

The first step to selling on eBay is to establish a seller account. This will require more personal information than your original registration with eBay, including verification of your identity, but it is, again, secure and never shared with other eBay users.

Choosing Your Product
Next, you need to figure out what to sell. When just starting out it is better to get a feel for the way it works and to iron out all the kinks before starting your business, so you may want to consider using the “Laundry Basket” approach. Take a basket around your house and fill it with items you don’t need or use anymore. This is always good for those spring cleaning or sort through the attic days. You can sell almost anything on eBay, but there are a few exceptions, which you can view on eBay’s Prohibited and Restricted Items List.

To list an item, make sure you are signed on and then click the “Sell” link at the top of any eBay page. The form for selling an item on eBay is fairly simple, and it will walk you through each step, with help links available along the way.

Be aware of the fact that eBay does charge fees for selling. You will first encounter insertion fees, which are based upon how many features you use in your auction listing. You will also be charged a final value fee when the auction ends, which is a percentage of the final sale price. A list of these fees can be found on the Basic Fees page.

Taking Photos and Developing Item Descriptions
Once you have determined the item(s) you’re selling, you will need to take quality pictures to put on your listing. Items without pictures are much less likely to sell. The first picture for every eBay listing is free of charge. Each additional picture is $0.15.

This is where a digital camera and scanner come in quite handy. If the item is flat, like a book, a scanner works great because it captures the cover well. Other items need to be placed against a solid colored contrasting background, so that the features stand out and the item can be viewed easily. Make sure your picture is crisp, not blurry. It is also recommended that you stay away from stock photos on the manufacturer’s website. Buyers want to see what the actual item you’re selling looks like.

Also, make a list of details about each item to put in the items description. The more honest information you provide to the buyer, the more likely they will be to bid on the item. Indicate the dimensions of the item, the size, the condition it is in, number of pages, etc. It is important to remember that, when describing the condition, you do more than say “good.” Tell the buyer exactly what you see.

You will need a heading for your listing. This will be the first thing potential buyers see on their search results, so it needs to be something that will grab the buyer’s attention, as well as indicate crucial keywords so that you listing will come up on as many search results as possible. Avoid using unnecessary words like “cute” or “wow” in your heading, as these are not words that a buyer will use in a search. Also, you are limited on the characters you can use in a heading, so you need all the space you can get.

Pricing
Next, determine what the starting price for your item will be. Items that start at $0.99 and under will often get the buyer’s attention more easily, but there is risk involved with starting the item that low, since it is uncertain how many bids you will get.

Do some research on ended auctions for items like the one you are selling and see how popular they are. You can do so by using the advance search and checking the “completed listings only” box. This will give you an indication on how high the bidding might go on your item and if the risk is worth it. For example, if the DVD you are selling typically sells for $10, then starting it at $0.99 shouldn’t be a problem. But if it usually sells for $3.00, chances are, your item may not go much past the starting price.

All auctions have the option of adding a “Buy it Now” or “Reserve Price.” Buy it Now gives the buyer the option of buying the item for a set amount, so long as no one has bid on it yet. This is great for items like DVDs, when you are willing to sell them below market value.

A Reserve Price allows you to indicate the minimum amount you are willing to take for the item. This amount is not revealed to any bidders. All they will see on the auction is whether or not the current price of the item has met the reserve price. If it does not meet the reserve by the end of the auction, you are not obligated to sell the item to any bidder. However, you will still have to pay the insertion fees for the auction.

Shipping Options
You will also need to determine shipping costs. This can sometimes be difficult, so I recommend that you first buy a postage scale and then prepackage your item before you list it, so that you can determine the actual weight for shipping. The form for listing your item provides a postage calculator that will determine the shipping costs, based on weight and package dimensions, for most carriers (USPS, UPS, FedEx).

You have the option of setting a flat shipping rate that you pre-determine, or a calculated shipping rate which is based on the buyer’s address and any handling charges you may add (which are not revealed to the buyer). I recommend adding the cost of shipping supplies, eBay listing fees (typically under $1) and Paypal transaction fees to your shipping charges, so that those are covered even if you item only sells for $0.01. PayPal does charge a percentage of the transaction amount when money is sent to you, though it is quite minimal (less than 5%).

The eBay listing form is very easy and there are helpful links indicated to get you through it. Once you’ve listed one item, you’ll have the form down, but it will take observation to see what works to grab the seller’s attention. Get some practice with small household items before transitioning to a full-blown business, so that you know what you’re in for.

View Part 3 - Casualseller to Powerseller
View Part 4 - Building an eBay Empire
View Part 1 - Learning the Basics

Sources:
• Entrepreneur.com: eBay Made Easy

Helpful Links:
• eBay.com: Getting Started as a Seller
• Entrepreneur.com: eBay Center

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LEARN THE BASICS

Since its start in 1995, eBay is one of the fastest growing business venues around. Over two billion items and nearly $50 billion dollars in final sale prices were produced last year, and every year eBay gets bigger and better. If you’re ready to start your own business, or expand your current one, using eBay will almost guarantee your success. This week’s four part series will take you through the steps of starting a successful eBay business, starting with eBay basics.

Most people are well aware of eBay and its primary function, but some just haven’t had the chance to use it yet. eBay is an online auction website, where you can find most anything you’re looking for, and quite often reasonably priced below market value. Like normal auctions (though, it is much easier to understand the auctioneer), buyers bid on an item and the highest bidder at the close of the auction gets the item for that price, plus shipping charges.

It is free to join eBay to browse and buy, so I recommend that you first register. To do so, go to eBay’s registration page, where you will supply your contact information, as well as pick out a user ID. Be aware that, should you plan to use eBay as a business, this ID will be viewed by all. So pick something that reflects who you are and what your business will be.

Take some time to explore eBay and learn about the features. There are eBay communities for discussions with other users, a help page, information for buyers, information for sellers; the list goes on and on. And do some shopping as well. The best way to learn how to sell on eBay is to buy on eBay. This will give you an opportunity to find out what works and doesn’t work for your future listings.

Bidding and Seller Ratings
It’s important that you understand that bidding on an item is a legally binding contract, and it takes quite a bit of effort to back out of a bid, including a mark on your eBay record and a possible reprimanding by eBay. So be sure to fully read each auction and all the specifics before deciding to bid. If you have any questions about the item or the seller’s policies, e-mail the seller about it before bidding, since you may not like the answer they give you.

The most crucial item to examine when you are interested in an item is the seller’s feedback rating. This will also be the first thing your future buyers will look at. A seller’s feedback rating is their reputation as both a buyer and a seller on eBay. It is a comment that the buyer/seller leaves about that user at the end of the transaction, reflecting how that person presented him or herself as an eBay member.

You will find this rating on the top right hand side of the item listing page, under “Meet the seller.” It will first list the seller’s ID, followed by a number in parentheses, which indicates the number of positive feedback ratings the seller has received from individual eBay members.

The next line will indicate what percentage of all of the feedback the seller has received has been positive during their entire membership on eBay. By clicking on the number following the seller ID, you will be able to view all the feedback the seller has ever received, positive, negative or neutral, and a summary of what that feedback has been for the past 12 months.

I highly recommend that you do not buy from someone with a feedback score of less than 10 or a positive percentage of less than 90%, as these sellers either do not have the experience to guarantee a trustworthy sale, or have proved themselves to be inconsistent and untrustworthy to other eBay users.

This is also important to know when considering starting an eBay business. You will need to purchase some items on eBay, and be a good customer, in order to build up your feedback rating, so that future buyers will be more likely to purchase an item from you. What qualifies as a good customer is someone who pays quickly and communicates well with the seller. Easy enough, right?

Sign Up for a Paypal Account
It is also important to register with PayPal, which is owned by eBay. PayPal enables you to pay for your items using a checking account, debit card or credit card in a secure and safe manner. In fact, PayPal has received such notoriety for its safe process that many online stores outside eBay are beginning to accept PayPal for payments of online orders.

Most eBay sellers will only accept PayPal payments, because it guarantees the payment will be received. Your payment information is never sent to the seller, as the payment is sent directly to PayPal and then PayPal sends it on. PayPal will be necessary when you are selling on eBay, since most buyers prefer to pay this way as well, so it is better to go ahead and get your account established now.

There are many more aspects of eBay that you should familiarize yourself with before starting and eBay business. EBay is easy to use, and you can most certainly learn as you go if you must, but it is better to understand the way the site works in order to make it easier when you transition from buyer to seller. I have provided some helpful links below to get you started.

View Part 2 - Selling an Item
View Part 3 - Casualseller to Powerseller
View Part 4 - Building an eBay Empire

Sources/Helpful eBay Links:
• BizHelp24.com: Starting an EBay Business
• Entrepreneur.com: Getting Started on EBay
• eBay.com: New to eBay Help Page

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Small business owners were glued to their televisions last week as election ballots were tallied. In the end, 51 Democrats had seats in the House, compared to Republicans 49 seats. The House currently has 230 Democrats and 197 Republicans, with eight elections still determined ties.

Based on a pre-elections survey done by Wells Fargo and Gallup, approximately 75% of business owners believed the congressional takeover by Democrats would have a direct effect on small businesses nationwide. Various issues are expected to come into play.

Trade Promotion Authority
President Bush has ambitiously been seeking renewal of the Trade Promotion Authority, which will lapse in June. Created in 1974, TPA allows the president to negotiate trade agreements. Congress can approve or squash the agreements, but cannot amend them, which protects the agreements from gruelingly being picked to pieces once they were made with the U.S.’s trading partners. The shift in power is expected to slow the President’s progress on getting a renewal approved prior to the lapse, if at all.

Taxes
Estate Tax/Death Tax have been a long time reformation agenda for small businesses. It is a taxation of 30-50% on assets that are transferred from one generation to the next upon death. In other words, if dad dies, and leaves son a business and property worth $20 million, it will be taxed up to $10 million. If an asset is left to a spouse or a charitable organization, the tax usually does not apply.

A repeal of the tax was on the table, but it is expected to fall to the wayside. There may be a bipartisan approach, but it is not expected to be anything immediate, as the estate tax is not currently a congressional priority.

Healthcare
As far as healthcare, small businesses have been pushing for some sort of reform that will allow them to provide affordable health insurance to their employees. One such hope was association health plans, which would allow small businesses to band together on one insurance policy, even across state lines. The idea is highly supported by Republicans, not as favored by Democrats. It is expected that some option will be extended to small businesses, although association plans will probably not be utilized.

Minimum Wage
The national minimum wage has been $5.15 per hour since 1997.