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Use Non-disclosure Agreements to Keep Things Confidential

Dawn McDonald

Dawn McDonald

Practically every business hires independent contractors. But rarely do they obtain non-disclosure agreements prior to disclosing information to the contractors.
If you hired a third party to develop your Web site, did you require an NDA before discussing your business procedures or methods? If you invented a new product or business process, did you obtain a NDA from manufacturers or distributors before discussions began? While this seems like common sense, most businesses fail to recognize this important protection.
A non-disclosure agreement is a legal contract between at least two parties that outlines confidential material, knowledge, or information that is to be shared between the parties, while one or both wish to restrict access to the data by third parties. The non-disclosure agreement is a contract creating a confidential relationship between parties to protect any type of proprietary information.
NDAs are often used when two or more entities are considering doing business and need to understand the processes used by the other for purposes of evaluating the business relationship. Employment contracts will often include a non-disclosure agreement clause restricting the use and dissemination of confidential, company-owned information.
Non-disclosure agreements may also contain clauses that protect the person receiving the information so that, if they lawfully receive the information through other sources, they would not be obligated to keep the information secret. The NDA typically requires the receiving party to maintain the information in confidence when the information was supplied directly by the disclosing party named in the agreement.
Many agreements are unilateral or directional NDAs. This would be used when only one party is disclosing information which is to remain confidential and requires that the other party not use the disclosed information without compensating the discloser. Another common type of non-disclosure agreement is a mutual agreement where both entities intend to disclose information that should remain confidential.
Just because a document or clause is titled ‘non-disclosure agreement’ does not mean it provides you with the appropriate level of protection. A non-disclosure agreement can protect any type of information that is not commonly or publicly known and may be very detailed; however, agreements generally address the following basic issues:
•Parties to the agreement;
•Definition of information to be held confidential;
•Time period of the confidentiality;
•Term the agreement is binding;
•Exclusions, if any, from the agreement; and
•Types of permissible disclosure, such as those required by law or court order.
Unless they can provide a compelling reason for their refusal, warning lights should go off if a party refuses to sign a non-disclosure agreement. Analyze the business relationship and the deal itself and consider whether you should walk away in the event one party refuses to sign.
To minimize and manage your risk, obtaining non-disclosure agreements should become a standard practice for your business.  Do not expose your business secrets to others without this protection.

Dawn D. McDonald is an associate with Cooley, Shrair P.C., focusing her practice on assisting clients in the areas of commercial litigation and labor and employment law; (413) 735-8045; [email protected]

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Six Tax Tips to Enhance Your Growth Strategy

If you’re a business owner, then you know how challenging it is to maintain your profitability in these tough economic times, let alone grow your business. Therefore, it’s critical to ensure you have the right resources, team, and business partners who not only support you, but also truly understand your business … from all angles.
Every business owner should have an accountant whom they can rely on to support their business’ challenges and provide timely and appropriate advice. Your accountants should be more than just advisers whom you speak with during tax season. They should serve as your business partners, helping you with financial and operational strategies and supporting your objectives for profitability.
Business owners should communicate with their accountants throughout the year to ensure they are taking advantage of all eligible government subsidies, basically tax breaks, that are relevant to the company. These are designed to support investments in capital assets as well as every organization’s most valued resource: its people. The following tips are designed to help decrease risk and improve profitability.

1. Review all expenditures made in 2011 to see if they qualify for the business-property-expensing option. The generous dollar ceilings that applied until Dec. 31, 2011 for both Sec. 179 and 100% bonus depreciation expensing allowed many businesses to deduct most, if not all, of their outlays for machinery and equipment.

2. Next, review your eligibility for the following credits:
• Employee retention tax credit of $1,000 for each eligible new employee whom you have retained for at least 52 consecutive weeks;
• Small-employer health-insurance credit of 35% of your non-elective contributions to your employees’ health insurance; and
• Research and development tax credits, including certain costs incurred in the creation of a Web site.  This can be a very lucrative tax credit, which is often overlooked in businesses, especially in industries not commonly affiliated with research and development.

3. Did you take advantage of alternative fuel and energy credits? There are a variety of options, and it’s important to speak directly with your accountants to confirm if you qualify for any of these credits.

4. It’s important to substantiate and retain documentation for all of your deductible business expenses, particularly meals, entertainment, and automobile mileage. The IRS is auditing small businesses with a particular focus on disproportionate meals and entertainment as well as automobile expenses. Review your expense-tracking system with your accountant for compliance with these requirements.

5. Meet with your accountant to review the status and classification of all independent contractors. Some might need to be classified as employees and receive W-2 forms rather than 1099s.

6. Evaluate your options with an existing retirement plan or consider setting one up beginning in 2012 to maximize your benefits and theirs.

During every growth stage in a company, it’s extremely important to manage your liquidity. Therefore, this is the perfect time to establish a budget for 2012 to accurately forecast the funds needed to run your business. Cash flow is the lifeblood of every organization, so ensure that yours is healthy.

Robert F. Gorton is a shareholder and CPA at Waldron Rand. He has more than 20 years of experience providing assurance, tax compliance, and business-advisory services to privately held companies in varying industries. He works closely with each client’s management team to implement short- and long-term business, financial, and tax plans to ensure success. He is skilled in the area of mergers and acquisitions and has counseled many clients on due diligence, negotiations, and integration activities. He is certified in financial forensics and has significant experience in litigation, accounting and auditing, and investigative analysis; [email protected]

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Understanding the Issues Surrounding Commercial-vehicle Insurance

Corey Murphy

Corey Murphy

Company vehicles are vital assets. They are an integral part of our daily business practice. For many, the expense of keeping these vehicles on the road is a significant cost center for their company. They are also a major insurance liability issue that requires your attention if the matter is to be managed effectively.
A helpful tool for managing your company’s commercial-vehicle insurance program begins with a clear understanding of how insurance underwriters calculate your commercial insurance premium. A better understanding of this process puts you in a better position to lower insurance costs and also gain the confidence that your policy correctly reflects proper protection for your commercial-vehicle liability exposure.
The International Assoc. of Industrial Accident Boards & Commissions reports that commercial vehicles traveling on highways, as a group, are a significant risk of serious injury to employees. They are also associated with some of the most costly workers’ compensation claims. Insurance data confirms that traffic accidents are the source of a large portion of the total number of serious cases involving employee disabilities and fatalities. Within this commercial-vehicle risk group are truck drivers, salespeople, messengers, and collectors.
When pricing business automobile-insurance policies, underwriters generally rely on several considerations. They want to know what do you drive, where you drive, and how well your drivers perform. How you answer these questions has a significant impact upon your commercial-vehicle insurance cost. So it is important to fully consider how you respond to each criterion.
The question of what you drive considers the physical characteristics of the vehicle. It also extends to how you use the vehicle and what or who is carried in or on the vehicle. A vehicles is first classified by its gross weight, which is usually assigned by the manufacturer. This weight assessment indicates the weight of the vehicle when empty, plus the maximum load it is capable of carrying. Vehicles used to transport people are classified by their seating capacity, not vehicle weight. Generally speaking, the higher the gross weight — or, for passenger vehicles, the higher the seating capacity — the more it costs to insure the vehicle.
There are several standard classes of vehicles in the world of underwriting. The classes include private-passenger types, service vehicles, retail, and commercial. Again, the group that best suits your vehicles will determine their insurance ranking. A car that is driven by a salesperson to sell and service clients is considered a private-passenger type. If a vehicle is used to transport tools, equipment, or supplies to and from a job site, it fits into the service-vehicle category. An auto used to pick up or deliver property to individual homes or businesses is an example of the retail class. Vehicles used to transport goods or people are classified as commercial usage. This latter group can be further subdivided depending on the cargo they carry.
Where you most often drive is another consideration taken into account. Underwriters often define this by the ‘operating radius’ your vehicles typically drive within. Most often this is measured from a vehicle’s principal place of garaging. A local radius is considered 50 miles or less, an intermediate radius is 51 to 200 miles, and 200 or more miles is considered a long-distance classification. Interestingly, private-passenger vehicles typically have no radius restrictions assigned to them.
The exception to all of this is if your vehicle is most active in a particular geographic area outside its home-based location. For example, a vehicle that is principally garaged in Chicopee but chiefly operates in the Boston area may be assigned by the underwriter to the much-higher-rated Boston territory.
Depending upon your company’s driving record, you may earn a credit. If the driving record proves better than your industry’s norm, you may qualify for a credit. Conversely, if your driving experience exceeds the norm, your premium will be debited. Typically a business with five or more vehicles is subject to this experience rating. A formula taking into account similar-type businesses or industry standards is applied to measure your performance.
It is important to obtain a copy of the rating to ensure that it is accurate. Review this carefully with your agent to identify potential errors. Inaccurate calculations can cost your business plenty.
Finally, whom you select as your drivers significantly impacts your premium. Business owners must pay close attention to their driver selection. A driver-qualification program is a great and simple tool to manage who is allowed to operate your vehicles. Make certain your drivers remain eligible to operate your vehicles and have clean driving records. It is a great way to avoid driving up your insurance costs.

Corey Murphy is a certified insurance counselor and president of First American Insurance Agency in Chicopee; (413) 592-8118; [email protected]

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Understanding Older Generations at Work

Mandatory retirement has been illegal in most industries for decades, but some managers are still reluctant to hire and retain workers older than 65. Frequently workers in this age group are characterized as inflexible, slower, and reluctant to evolve with technology. But most employers find that today’s older workers challenge these stereotypes and can be real assets.
Biological and psychological changes occur as we get older. Each generation is also different sociologically from other age groups. Awareness of age-related differences can empower employers to capitalize on senior workers’ positive attributes and consider making workplace adaptations for their limitations.

Biological Age-related Changes
While most stereotypes about older adults are greatly exaggerated, many biological changes do take place both physically and cognitively. Nearly every organ and system in the body is a bit less efficient than it once was, but this does not mean inevitable disease or disability. The stereotype that seniors can’t hear or see well is false, but it is true that hearing and vision are not quite as sharp as they once were when we are younger. While Alzheimer’s disease and dementia are not part of the normal aging process, tip-of-the-tongue moments and slower reflex, reaction, and recall times are.
Due to changes in eyesight and hearing, consider moving an older worker’s seat at a meeting table to enable a better view of a projection screen. Recognizing normal changes that happen to the aging brain can help managers understand older workers’ behavior. For example, some older workers may be quiet during that meeting but submit great ideas a few hours later, after they’ve had time to process.

Sociological Age-related Changes
Sociologically, older workers are generally highly dedicated employees. Many seniors, particularly older women, are motivated by financial need. There are numerous advantages to deferring Social Security payments, so many seniors want to put off collecting for as long as possible. Most older adults have also witnessed steep declines in their retirement accounts, so there is a genuine need to supplement their income. Others simply did not adequately plan for retirement and require additional income from a full- or part-time job.
Generationally, workers older than 65 are known for a strong work ethic. Even if there is not a significant financial incentive, they were raised in an era that idealized hard work. They are team-oriented and unlikely to leave coworkers in a bind. This age group has likely finished raising their families so they can be open to working more hours when necessary. They are known for honoring commitments and respecting authority.
This age group also is typically good at interpersonal communication. Having worked for most of their careers without access to e-mail and texting, these workers have had to rely on their people skills to get things accomplished. They tend to also be more resourceful than younger generations who have come to rely only on the Internet for research and problem-solving.
Since this age group may have less computer experience than their younger coworkers, it is important to assess and respond to needs for training. Older workers are sometimes thought to be technologically challenged, but often it is because they have not had the opportunity to learn the appropriate skills.

Psychological Age-related Changes
Psychologist Erik Erikson believed that older adults experience a crossroads in their life: a stage he called “ego integrity vs. despair.” The concept of ego integrity is that, when a senior reviews his life thus far, he finds meaning in the way he has spent his time, which leads to wisdom and acceptance of his mortality. On the other hand, if a senior’s life review is focused on feeling resentful or disappointed about the way his time has been spent, he feels despair, which can sometimes even trigger depression.
Meaningful work often promotes increased self-worth in older adults, regardless of whether they are experiencing ego integrity or despair. In understanding this, managers can best motivate older employees by critiquing gently and praising publicly when it is earned. A manager singling out an older employee for a job well-done provides psychological benefits for the senior but also goes a long way to dispelling false stereotypes about older workers.

Tips for Accommodating and Embracing Older Workers
The best strategy in managing and accommodating older workers is the same as with employees of any age: observe , identify strengths and weaknesses, and work with that person to optimize performance. Nearly every employee requires some accommodations in order to do the best job possible. For example, a manager may have to spend time with a new college graduate explaining when, and if, it is appropriate to text customers. The same concept is true with older workers.
It is also important to re-evaluate a worker’s duties as he ages during employment with an organization. For example, a 70-year-old hotel shuttle driver who has been with a company for 20 years may be better-suited to a front-desk assignment if age-related changes are interfering with driving abilities.
Older workers have so much to offer: experience, work ethic, potential to mentor, and, frequently, fewer family obligations that will interfere with work. The key to maximizing value with older employees is recognizing and accommodating their differences.

Jennifer FitzPatrick, MSW, LCSW-C is an author, speaker, and educator. Founder of Jenerations Health Education Inc., she has more than 20 years’ experience in health care. She is a frequent speaker at national and regional conferences and was an adjunct instructor at Johns Hopkins University. Her new book, “Your 24/7 Older Parent,” is addressed to those dealing with the care of an elderly parent; www.jenerationshealth.com

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Know the Rules of the Road — and the Restaurant — to Avoid Trouble

Jennifer Reynolds

Jennifer Reynolds

Questions continually arise regarding various types of employee expenses, reporting requirements, and the deductibility of certain kinds of expenses. With heightened scrutiny by the IRS, it can be difficult to determine whether or not a meal, entertainment event, or a travel expense qualifies for a tax deduction.  This article will describe the most common expense reimbursements paid by employers, as well as the deduction rules and reporting requirements mandated by the IRS.

Meals and Entertainment
The IRS requires a taxpayer to jump through a number of hoops in order to qualify for this deductible expense. Once the documentation requirements are met, the deduction is limited.
In order for meals and entertainment expenses to qualify for the deduction, the expense must first be an ‘ordinary and necessary’ business expense. This criteria is not exclusive to meals and entertainment; rather, all business expenses must meet the general deductibility requirement of being ordinary and necessary. This term is broad and implies customary or usual in carrying on business. Therefore, if it is reasonable in your business to entertain clients or other business people, you should pass this test.
Second, the expense must be ‘directly related to’ or ‘associated with’ the business.  ‘Directly related to’ involves an active discussion with the anticipated result of gaining immediate revenue. Here, as a business owner or employee of a business, you must anticipate receiving a specific concrete business benefit. General goodwill or making a client, customer, or associate view you in a favorable light will not qualify under this test.  Further, the principal purpose for attending this event must be business, and you must be actively engaged in business discussion during the event or meeting.
Alternatively, the ‘directly related’ test can be met if the meal or entertainment takes place in a clear business setting, in furtherance of your business. Meetings or discussions that take place at venues such as sporting events, nightclubs, or cocktail parties (i.e. social events) would not meet this test.
However, if the ‘directly related’ test cannot be met, the expense may still qualify under an alternative ‘associated with’ test, where the expense may qualify if it is associated with the active conduct of business, or if the meal or entertainment event precedes or follows (basically takes place on the same day as) a substantial and bona fide business discussion. This test is much easier to satisfy, because it allows the ‘goodwill’-type entertainment, such as the sporting event, nightclub, or cocktail party referenced earlier, to qualify as serving a business purpose.
The event will be considered ‘associated with’ the active conduct of a trade or business if its purpose is to get new business or encourage your existing clients or customers to continue their business relationship with your company. For meals, the owner or an employee of the company must be in attendance at the event. This means that, if you simply cover the cost of a client’s meal after a business meeting but you do not join him or her, that expense will not qualify as a deductible business expense.
Assuming the expense meets the ‘directly related’ or ‘associated with’ test, the expense must then be adequately substantiated to prove that it qualifies as a deductible business expense. The use of reasonable estimates is not sufficient to stand up to an IRS challenge; you must be able to establish the amount spent, the time and place, the business purpose, and the business relationship of the individuals involved.
Careful and detailed recordkeeping procedures should be maintained in order to keep track of each business meal and entertainment event, and the justification for its business connection. Further, for expenses of $75 or more, documentary proof (such as a receipt) is required.
Once the business purpose test is met, the expenditure is subsequently limited to a 50% deduction. For example, if you spend $2,500 per year on meals and entertainment, only $1,250 will be deductible, further limiting the tax benefit of business meals and entertainment.

Auto Expenses
Another area of heightened IRS scrutiny is auto-related deductions. The business standard mileage rate is the most common method of reimbursing an employee’s auto expense. Reimbursements based on the business mileage rate are in lieu of reimbursing employees for the actual fixed and operating costs, such as depreciation, maintenance, fuel, etc.
If an employer pays an employee a mileage reimbursement, this reimbursement may be excluded from income provided that the time, place, and business purpose for the travel are substantiated. This substantiation must meet or exceed the amount of allowance paid by the employer. Proof generally is made by substantiating the dates, location, miles, and business purpose of the travel. For 2011, the optional standard mileage rate is set at 51 cents per mile for business use through June 30, 2011 and 55.5 cents per mile on or after July 1, 2011.
If, however, the allowance paid to the employee exceeds the actual substantiated mileage rate, the excess must be treated as taxable compensation on the employee’s W-2.  It is important to note that not only employees, but business owners must comply with the substantiation requirements for mileage allowances. Even though there may be no question as to the deductibility of the expense, the expense may be disallowed by the IRS for lack of contemporaneous documentation to properly substantiate the expense.

Out-of-town Travel
Business deductions are allowed for business conducted out of town, which reasonably requires an overnight stay. The actual cost of travel, including plane fare, cab fare to the airport, etc., are deductible, in addition to the cost of meals and lodging. Meals will be deductible even if they are ‘personal,’ (not connected with business), although they will again be limited to the reduced deduction (generally 50%).
Personal entertainment costs incurred on the trip are not deductible, but business-related costs such as dry cleaning, phone calls, or computer rentals will be deductible.  Further, if a meal or lodging expense is considered ‘lavish or extravagant,’ a term interpreted to mean ‘unreasonable,’ no deduction will be allowed.
If you combine business and pleasure on a trip, it will be necessary to allocate deductible versus non-deductible business expenses. For example, if you fly to a location for five days of business meetings and stay for an extended period of vacation, only the costs of meals, lodging etc. for the travel days pertaining to business are deductible. The IRS does not allow deductions for expenses incurred during personal vacation days.
However, with respect to the travel itself (plane fare, for example), if the trip is ‘primarily’ business, the travel cost is fully deductible.  Alternatively, if the trip is primarily personal, none of the travel costs are deductible.  A significant, but not exclusive, factor in determining the primary purpose of the trip is the amount of time spent on each. The IRS has heightened scrutiny surrounding conventions and seminars.   They will check the nature of the meetings carefully to determine if they are vacations in disguise. It is important to save all materials helpful in establishing the business or professional nature of the travel.
In addition, the rules for deducting costs incurred for a spouse accompanying an employee or business owner on a trip are very restrictive. No deduction for additional spousal travel costs will be allowed unless the spouse is an employee and there is a business purpose for the travel. Moreover, personal expenses incurred at home as a result of taking a business trip are not deductible. For example, pet boarding while away is not a deductible business expense.
This article is intended to give some general guidance surrounding deductibility of business expenses. As always, you should consult your tax advisor or legal advisor before applying this general information to your specific tax situation.

Jennifer Reynolds is a tax manager with the certified public accounting firm Meyers Brothers Kalicka, P.C., in Holyoke.

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Focus on Progress, Not Perfection Ditch Unreachable Expectations, Fear of Mistakes, and Excess Criticism

By MARTI MacGIBBON

Heather, a manager at a publishing company, prides herself on her extremely high standards, even jokingly referring to herself as a perfectionist, but she has difficulty meeting deadlines.
During brainstorming sessions with her staff, Heather yearns to unearth new discoveries and innovations, but dreads making even the smallest mistakes, putting a damper on creativity. She tends to take on only familiar challenges in order to guarantee that she will excel. Recently Heather noticed she has difficulty relating to and encouraging her subordinates. She longs to be able to inspire them, but finds she can see only flaws in their work. Since Heather is also self-critical, she is tense and rigid when embarking on new projects, putting a clamp on productivity.
Tyler’s office is down the hall from Heather’s, and she’s noticed how he and his staff consistently come up with innovative new concepts and complete projects before the deadline. Whenever a groundbreaking new endeavor is discussed, Tyler volunteers to take it on. His confidence is truly remarkable. In meetings, Tyler’s subordinates demonstrate self-assurance and an easy rapport with him. When Tyler’s staff turn in reports, the mood is upbeat, almost celebratory, even when they are only halfway to their project’s completion. Heather sees people leave Tyler’s office looking focused, empowered, and energized. She wonders how Tyler can appear to be so relaxed and happy and still be so productive.
Tyler’s advantage is that he focuses on progress, not perfection. Striving for perfection and rejecting anything less can become an obstacle to innovation, creativity, and satisfaction in the accomplishment of everyday tasks and goals. Focusing on progress will highlight the fact that everyday tasks and goals are actually baby steps on the way to achievement of the highest standards and accomplishments. While focusing on progress, we learn to enjoy the journey as well as the destination. French Enlightenment philosopher Voltaire said, “Perfection is attained by slow degrees; it requires the hand of time.”
Here are six progress-oriented strategies you can use that will free you from excessive self-criticism and increase your creativity, satisfaction, and confidence.
There is really no such thing as perfection in life. Know that perfection is not an oasis — it’s a mirage! You’ll never arrive, because it simply isn’t there. Once you realize that everything in this universe is flawed, you can relax and focus on improvement and progress. You will find that, as your confidence builds, your freedom of thought increases. You now have lots of elbow room to take on new and exciting challenges.
Practice intelligent goal-setting. Determine your ultimate goal. Then set doable, measurable goals, at definite intervals on the journey, that you know you can reach. At each of these intervals you can measure progress, adjust your sights, and make changes if necessary. It’s easy to slip into a self-defeating pattern by setting inappropriate goals and standards. If you tell yourself you can accept only the utmost perfection in everything you do, you rob yourself of the joy that comes from celebrating each and every small accomplishment regardless of the result.
At the end of each day, take an inventory of anything and everything you have accomplished, and celebrate it. Progress is not exclusively linear. Be sure to include upbeat attitude, a positive thought process, kind words, and generous actions on your list. You most likely have gained character strengths, leadership skills, personal insights, and communication skills during any given day, week, or month at work. It’s a good idea to begin recognizing all of your accomplishments and gaining greater resolve from them.
There is real reward in enjoying the journey and accepting your work without judging it. Perfectionism often creates a cycle of procrastination — the standard is set so high that you find yourself overwhelmed and paralyzed at the outset. Exercise your non-judgmental attitude toward others as well, regarding everything around you as a work in progress.
Give yourself permission to grow and to embrace missteps. Some of the greatest discoveries were a result of blunders, or were learned by trial and error. If you stop making mistakes, you stop progressing and learning. Loosen up — value the process. You’ll find your creativity, productivity, and happiness will increase exponentially.
Never underplay your accomplishments. Banish self-talk such as, “well, it was OK, but anybody could’ve done that.” That sort of thinking, discounting the positive, can lead to anhedonia, the technical term for diminished ability to find joy and satisfaction in life. Instead, encourage yourself and others around you by recognizing the significance of smaller tasks as part of the ultimate goal. Muster your enthusiasm by visualizing the final result.
Try consistently putting these strategies into play, and you will be surprised as you exceed your own expectations. Constantly focus on progress and learn to have fun along the way. Celebrate each baby step. Pat yourself on the back: turn on the self-approval faucet and let the feeling of accomplishment wash over you. This isn’t complacency, this is stamina building.
Success in any endeavor takes time — it’s like a long-distance run. If you want to zoom across the finish line at the end of the course, then say goodbye to perfectionism’s unreachable expectations, fear of mistakes, and excessive criticism. Say hello to progress and begin embracing and celebrating it daily. Perfectionism is a deal breaker. Progress is a star maker.

Marti MacGibbon, CADC II, ACRPS, is a certified mental health professional, inspirational motivational speaker, veteran standup comic, author, and member of the National Speakers Assoc. Her memoir,  Never Give In to Fear, is available on Amazon.com and through her Web site, www.nevergiveintofear.com.

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Words to Live By

Speak To Be Remembered and Repeated:  7 Rules to Keep in Mind

“Speak to be remembered and repeated” is the advice I give my executive speech-coaching clients. Isn’t that the goal of every executive, professional speaker and sales professional — to be remembered and repeated?
However, it’s easier said than done. Here are some tips.
1. Speak in short sentences or phrases. Edit your sentences to a nub. Jerry Seinfeld said, “I will spend an hour taking an eight-word sentence and editing it down to five.” In comedy, the fewer the words between the set-up and the punch word, the bigger the laugh. In business communications, change the punch word or phrase to impact phrase.
2. Don’t step on your punch word. It should be the final word or idea in the sentence. (Yes, this works for Jerry Seinfeld and his comedian brethren, and it also works for business communicators.)
The otherwise-powerful word “today” can also be the biggest impact-diluting word in business communications if you use it wrong. For example, in the sentence, “You have to make an important decision today,” your punch word should be ‘decision.’ So switch it around and change the noun ‘decision’ to the active verb ‘decide.’ “Today, you have to DECIDE!”
3. Perfect your pause. Deliver your punch word and then pause … and pause … and pause. Give your listeners time to digest what you’ve just said. Get comfortable with silence, and don’t be tempted to rush on or fill it with “um’s.”
4. Repeat your key ideas more than once. Do not be afraid of being redundant. Instead, worry that tomorrow your audience members will not remember your key ideas.
5. Never read your speech. Remember the audience wants to hear from you. If someone is simply going to read a script or the titles off a PowerPoint slide presentation, you could have stayed home. (PowerPoint is a magnificent visual aid, but not a scripting aid.)
6. Use stories. Help your listeners to “see” your words. Statistics and facts are fine, but sell your message and make yourself unforgettable by getting listeners to make the movie in their heads. For example, you might say, “Drunk driving is a bad idea. Let me share with you some statistics on the loss of control drivers experience after even one beer.” Instead say, “Never, never, never drive drunk! Not even after one beer. I know. My friend Eliot Kramer was absolutely positive that two drinks couldn’t affect his timing and judgment.” (Hold up a single shoe, dangling from its shoelaces.) “Six months ago, he died.” Farther on, add some statistics and then conclude with a reference to your powerful story.
7. Say something memorable. Presidents have gifted speech writers to coin ringing phrases for the history books. You can be just as memorable in your field when you think about what you want to say and why. Here’s an example from the memorial for 60 Minutes’ Ed Bradley. Fellow reporter Steve Kroft said, “I learned a lot from Ed Bradley, and not just about journalism. I learned a lot about friendship, manners, clothes, wine, freshly cut flowers (which he had delivered to his office every week) and the importance of stopping and smelling them every once in awhile.”
Another example, from Mike Powell when he was a senior scientist at Genentech, giving a speech to the Continental Breakfast Club: “Being a scientist is like doing a jigsaw puzzle, in a snow storm, at night, when you don’t have all the pieces, or the picture you are trying to create.”
Remember to try out these seven key ideas as you prepare your next presentation so your words will be remembered and repeated. Why else would you go to all that effort?

Patricia Fripp is an executive speech coach, sales presentation trainer, and keynote speaker on sales, effective presentation skills, and executive communication skills. She works with companies large and small, and individuals from the C-Suite to the work floor. She is the author of Get What You Want!, Make It, So You Don’t Have to Fake It!, and is past-president of the National Speakers Assoc.; www.Fripp.com; [email protected].