Yes, he's gainfully employed...

Yes, you may have heard that I got a full-time job.  After more than a year of working part-time, taking the occasional consulting gig and doing some tour guiding to fun places like Seattle and San Francisco, I have accepted an offer to be the manager of the Business Resource Innovation Center in Carson City, NV.  This is a very exciting opportunity for me to be part of the solution in helping to create jobs in Northern Nevada.  My initial focus will be to provide one-on-one business counseling as well as business curriculum development.  Mentoring entrepreneurs will also be a big part of my efforts.

The BRIC is a one-stop shop for many business services in Carson City.  In addition to housing the business branch of the library and business development, there are many other city departments that call the BRIC home.  Business licensing, the permit center and the engineering, planning and building departments all can be found in one place just north of city hall.  The overarching goal of the BRIC is to support and nurture business activity in Carson City and the surrounding region.  And in the near future, there will be additional programs that will help new businesses get off the ground as well as help existing businesses reach new levels.

More exciting things to come!  I must say that I can't wait to start helping and inspiring folks to make a big impact on the community.

Budgeting, Your Marketing Plan and the New Fiscal Year

Yes, it is budget time for those of you who have your fiscal year the same as the calendar year.  Some take this process a little more seriously than others.  As one of my professors from graduate school said, “It all depends.”

If your business is relatively stable and has minimal impact from the external environment, then the annual budgeting process is probably pretty simple (don't we all wish we could say this!).  And if your business is in the start-up phase or has a volatile competitive market, you may have extensive meetings with others in your organization in order to get as much input as possible into your plan for next year.  Or you may be a public company and there are a whole different set of rules for developing plans and the disclosures to the public that are required.

-from B2Bmarketinginsider.com-

The bottom line is that your marketing plan will dictate much of the financial planning for your organization.  Yes, the number crunchers are going to have input on how interest rates and depreciation schedules will affect your income statement, but it’s the marketers and sales staff that have the real influence planning for future revenues.  That is why all businesses need look at the fundamentals of marketing in one way or another to properly plan for the coming year.

The essence of all marketing plans focus on what is affectionately called the 4 P’s.  They are product (or service), price, promotion and place (or distribution). 

Product is simply what you are selling.  Price is what you are charging for the product.  Promotion includes all the advertising, social media activity, public relations and promotions.  Place (or distribution) focuses on the cost of getting your product and your customer together.  Marketing plans should also focus on the affect of competition and the external environment on each of the 4 P’s. 

The common mistake when creating or changing your marketing plan is that it does not have enough detail.  You also need to identify the market in which your products are sold.  There was a specialty retail company that first started out by saying that they were in the candle market.  Then they realized that they were in the bigger home décor market.  Then after much research they realized that they were in the even bigger gift market.  Look to the behavior of your customers to find out how they are using your product and that will give you a hint as to how you should position what you are selling.  

When you review your price structure, ask yourself if any customer questions have come up.  How do your prospects that don’t buy react to your prices?  Do you offer volume or promotional discounts?  Price is the determining factor for the customer’s perceived value of everything that you are providing.  In today’s economy, most people are motivated to find the best possible price and value.  Only if you have the luxury of being a monopoly do you have less concern about price.  And even monopolies have to consider the cost of barriers to entry into their markets.  When considering price, market share becomes a factor.  The more you reduce prices, you most likely will gain market share yet reduce profitability.  It’s a tough balancing act between your profitability and gaining customers.  And this all plays into your market strategy.  Are you Mercedes or are you Toyota?  Either strategy will have huge implications on your pricing.

Many people consider that the meat of their marketing plan is what is really their promotional plan.  Remember that your promotions are designed for one thing – to get people interested in what you have to offer.  Once they walk in the store, make that phone call, check out the website or send an e-mail, it is up to the remaining parts of the marketing plan and your promise to show value.  Although you may spend a good deal of time considering the many alternatives to getting your message out into the firmament, you need to balance your efforts with the other very important parts of your overall marketing plan.

Place or distribution focuses on how you get your product or service connected to your customer.  Does it require a vast distribution network and what is the cost of that network?  How do prospective customers get to your website?  Or do you drive a truck full of produce down to the Farmer’s Market?  You may have wholesale and retail customers that take delivery in completely different ways.  This part of the marketing plan is dedicated to making sure that you are being most cost efficient in getting the right goods to the right customers.

With the holiday shopping season just around the corner, be looking here for a new post about a different way to look at retail and the components that can determine success in the retail universe.

ProNet's best speaker ever - Ian Hill

Ian Hill

Now those of you that know me, know that I don't throw around words like "best ever" without having something to back it up.  In my book, we all have room for improvement, so unless you can walk on water like a guy did around 2000 years ago, you aren't getting a "10" from me.  That being said, Mr. Hill knocked everyone's socks off at yesterday's Monday morning general meeting at ProNet.  Not only does he come with tons of street cred locally in Northern Nevada but he has also been recognized for his philanthropic work in Canada.  Here a link to learn more.

So what was his message to a group of about 100 unemployed professionals in Reno?  He had a straightforward style that got your attention right away saying, "I'm not here to waste my time."  We all understood right away that this was going to be special.  I'm sure that Mr. Hill has many talks up his sleeve and he certainly knew who his audience was.  The main theme yesterday was transformation.  He started at the macro level of the world and society and brought it right down how it was affecting each and every person in the room.

First, he asked us questions about ourselves.  "Do you posses the leadership skills for today?"  "Do you possess the leadership competencies that the times require?"  The crux was that as the world is changing around us, we have to change.  The way of being successful in the past is not necessarily how you will be successful in the future.  Analysis was the first place to start.  He asked the group to come up with places where transformation was occurring in our society.

• First off was the fundamental change in technology.  This was quite obvious to all yet needed to be said.
• The next focus was leadership styles.  Autocratic leadership styles of the past will not work with a new generation of skilled workers.  Participatory leadership, where everyone is part of the decision process, is what is required in a multi-generational workplace.  He asked if the patterns of the past were serving us well.  This question hit us smack in the forehead, creating a wondering that if what worked in the past wasn't going to work in the future, what will?  
• Next was understanding the conduit of communication of the day.  With all the focus on social media, he took a different tack.  Communication is broken down into the spoken, written and virtual word.  While technology will always influence how the message is delivered (see: radio), the key will always be to deliver a clear, concise and understandable message.  Good stuff!
• Globalization and the interconnectivity of the today's world has created a monumental shift in how we think and how we conduct commerce.  It's not about grandma's corner store anymore.

While I can't get all the information from his talk in this post, he left us with key touchstones to think about in our job search:

• Be a systems thinker.  Understand the big picture.  Look to see how what you do influences how your company operates.
• Do the analysis that's required to anticipate what will happen.
• Crisis is opportunity.  Those that are looking to the coming year and what will be in crisis will afford an opportunity to succeed and flourish.  
• Be an agent of change.  Being willing to change yourself and change your environment.  Not that these are easy, but you must create a process for change.  You will know you are doing this when you ask for help because you cannot do it all yourself.
• Educate yourself.  Be on a path of continued learning, understanding, action, accountability and analysis.

He left us with one piece of advice.  Volunteer!  If you are not doing this one thing in your job search, then you are a fool.  His words, not mine, but I wholeheartedly agree.  And we were extremely lucky to have an hour of his time.  Thanks to Mr. Hill and ProNet for a great way to start the week!

Want to travel to the Pacific Northwest? I was just there...

...and had a great time.  As tour director for a gang of folks from the Reno area, I got the chance to see some wonderful sights in Tacoma, Leavenworth and Seattle.  Having traveled to the region in the past, I had a general idea of what was there to see, but with our local bus driver, Michael Bailey, we all got a terrific amount of insight into the area and some of the special sites and attractions.

Tacoma's Union Station

First, I have to say this: if the weather wasn't so cloudy/rainy/wet, I could see myself living in Tacoma.  The efforts that have been made to preserve buildings downtown has been more than commendable.  The dedication to look and feel gives the downtown area a flow especially when you add in the free light rail that keeps that flow moving.  Then you have the imprint of Dale Chihuly and glass art all over the city.  Many cities and towns look for that distinction that separates them and Tacoma has certainly accomplished that.  A must visit is to the Museum of Glass.  With the hot shop where artists and artisans can create in front of the public (watch the hot shop live) coupled with stunning and whimsical galleries, this museum is a must see in the area.

On the way to tap the keg!

Another town that has made an all-in commitment is the Bavarian-style town of Leavenworth.  We were there for one weekend of Octoberfest and the whole town revels in their recreation of southern Germany.  From the gift shops to the gazebo in the center of town to the beer garden, Leavenworth is a destination not to be missed, especially in October.  And the beer is pretty good too - it should be because nearly all of it is imported from Germany.

Museum of Flight

And last but not least, Seattle.  The anchor of the Pacific Northwest has much to see and do.  Three sites that are on the must-see list: the Space Needle, Pike Place and the Museum of Flight.  Even if the weather is cloudy and rainy (like it was the only time on this trip), riding the elevator to the observation deck is a must, even for those with a little skittishness about heights.  Do it just to say you did it.  The views even on a cloudy day are magnificent.  And make sure that you read up on some history before you get there.  Pike's is a farmer's market on steroids.  While many communities have created this quintessential American event, Pike's is the mother lode.  Not only can you talk to many owners behind the stall counters, you also can get extremely fresh, local produce and seafood.  And for the Starbucks fans, you can visit the #1 store (and you can buy coffee beans that are specially roasted for this store only).  And for all the plane enthusiasts out there, how would you like to step aboard a British Airways Concorde?  Here you can do this as well as sit in a cockpit mockup of an F-18 and a SR-71.  Get a feel for what it is like for pilots flying these amazing accomplishments in aeronautical technology.  Plan on a whole day here because there is just so much to see.

And there is much more to see than I am mentioning here.  Dear friends have been going to the Hood Canal area for years during the summer.  The Olympic Peninsula is otherworldly.  And Mt. Ranier and Mt. St. Helens can take your breath away.  So next time when you are considering a vacation spot that can tickle many a fancy, think about the home of the apple, Washington.

New baseball stat - The Triple Threat

Sorry it's been a while since I've posted anything here.  Been a bit crazy with networking and such. 

So have you ever thought of something and just sent an email up the flagpole to see if anyone is paying attention?  Well I've had this idea for a while and thought I'd send a note to Major League Baseball and ESPN.  Here's the premise: It's been since 1967 that anyone has won the Triple Crown in baseball.  Carl Yastrzemski was the last one to do it.  The last National Leaguer to do it was Joe Medwick in 1937!  (Yes, there is a pitching triple crown but it's just not the same, sorry...) 

Well, I thought about running a little statistics using Batting Average, Home Runs and Runs Batted In.  I took the top ten in the National League in 2010 in each category, assigned a 1 to the player that led the category and then divided the others' results by the leader's total.  (And I used the National League only because I'm a purist when it comes to hitting - I just can't stand the designated hitter rule.)  St. Louis' Albert Pujols would have been last year's Triple Threat.  He led the league in Home Runs (give him a 1), RBI's (give him another 1) and his average at .312 was 92.8% of Carlos Gonzales' league leading batting average of .336.  With a total of 2.928, Pujols outranked Cincinnati's Joey Votto's total score of 2.803.

Wouldn't this be cool to give out a Triple Threat award every year instead of waiting for someone to achieve what hasn't been done in 44 years?  And isn't this what baseball is all about, lots of fun statistics.  When I did this a week ago for 2011 to date, Matt Kemp was ahead of Prince Fielder and Pujols.

If you think that this is a good idea, pass this on to the powers that be at MLB and ESPN. 

Webinar review: Social Media Analytics by Awareness, Inc.

Earlier today Awareness, Inc. offered a webinar called "Social Media Analytics: Effective Tools for Building, Interpreting, and Using Metrics".  After a bit of technical difficulties (a bit surprising since previous webinars have been smooth as silk) and a bit of general orientation to the subject (understanding that the attendees must have had a wide range of social media experience), there were some good tidbits of information (which is all most of us should hope for when attending any kind of training offering - especially when they are free).

Marshall Spooner was the main draw with his book of the same name as the webinar title above.  He did demonstrate a wide range of knowledge of social media, especially in the question and answer phase at the end of the webinar.  I will say first that in such a fast moving space as social media, to produce a book is a difficult prospect at best.  While much of the basics may be relevant for a short period of time, there is no doubt that books cannot be written fast enough to keep up.  So based on that, this blogger appreciates Mr. Spooner's attempt at describing the current state of social media analytics.

Aside from the basic information about using Google Analytics to track traffic and aggregators such as the product by the webinar's host, there were a couple of new things that he brought up. Shareaholic has a great browser add-on that makes sharing links much easier across social media applications.  Tynt.com has a unique measuring tool called an Interest Graph.  It is a visual representation of the online network of people that share interests with you on the Web.  And then of course there are the aggregator tools such as the Hub from Awareness, Inc., the webinar's sponsor, as well as Radian6, Alterian, Synthesio Unity and Socialflow.com.  While each of these has their strengths and weaknesses, it is highly recommended here that you do your due diligence on each option to see what will work for you.  If you are in an organization where coordination and collaboration of social media activity is a must, then these are the places to start your investigation into this space. 

I will say that while this webinar was a big disorganized up front and a bit choppy on the flow of the presentation, I did get something out of this one.  And one other disappointing note: the redirect to Amazon.com when exiting the webinar.  It just seemed a bit pushy.  I can imagine that there must be a better way to give attendees the choice to go to Amazon on their own.  After all, isn't social media all about opting IN and not being soullessly sold a product?

Facing foreclosure, short sale or worse?

If you or someone you know is facing the possibility of having to get out from under debt tied to a house that has been drastically reduced in value, have lost a key source of income or just want to sell their house for various reasons, Alan Hoffman at Homegate Realty is the man that can help.

This was the second time that I've listened to Mr. Hoffman speak at a ProNet general meeting and he doesn't disappoint.  Above all, he makes it clear that he and his staff are there to help.  And in this odd time of people scrapping, Homegate is really showing themselves to be one of the "good guys".  A clear message was don't fall prey to someone who is claiming that they can readjust your mortgage.  Much of the work can be done yourself.  Or Homegate can help you with negotiating the banking waters.

Also, there is a process by which banks conduct short sales or foreclosures.  You need to do the homework as well as getting over the idea that you have to keep your house at all costs.  The financial hole that some people are digging for themselves, potentially ruining credit and adding unneeded stress in their lives all can be mitigated to some extent.  The answers may not be pretty yet the financial and family pressure can be eased somewhat.  And Homegate can help you with all this.

And there is certainly enough statistics and prognostications about the future of the housing market.  We could see another 20% reduction in values in Reno-Sparks market.  Prices may not come back for decades.  So what does this all mean?  Where my parent's generation valued home ownership, thought that prices would always go up and wanted a place for the kids to always come home to, our time will mean something completely different.  Where and how you live will be more and more a financial decision than one of the heart.  Attachment to a physical property will not mean as much.  This does make me sad when I think about my parents living in the same house for over 45 years and the sense of security that they have.  Will we as a society become more attached to a certain region because we can't be mobile anymore?  Or will we be renting more in order to be more mobile?  Will technology play a part in the rate of mobility of society?  Will foreign investors see an opportunity due to depressed prices?  At what point will the market begin to bottom out?  All good questions, yet one thing that has forever changed back to the way it was - real estate is once again a long term investment decision.  Long gone are the days of flipping property or moving up quickly or transferring to another metro area at the drop of a hat.

So many factors in buying real estate now compared to five years from now.  And because there are many more complications, I would highly recommend Alan Hoffman and Homegate Realty to help with understanding the constantly changing real estate market.  Especially if you are looking for someone with a "white hat".

No more political emails!

Please don't take this personally.  I emailed this to a bunch of people earlier.

I am declaring that I will not get any of my information on politics going forward from emails from anyone.  If I am sent an email that has a subject that hints at all that it is political, I will delete it without reading it.  If you must know why, please keep reading.  If you don't care, please know that you face the possibility of having all of your email labeled as spam.

So if you are getting ready to label me as an extremist, please understand that I am an American first with an independent affiliation.  I have been registered as a member of the Republican and Democrat parties at different times during my life and I am currently disgusted with politics in this country.  The problem is that the email sphere has become as unreliable, vicious, libelous and childish as I have ever seen it.  It has become the bane of my brain-space.  There are many other sources of information that I am choosing to use for my evaluation of political information.  And there are many other wonderful things about life that I am choosing at this time.

I would ask that you too take the time to think about what you send and whether or not it is truly something of value and not a ranting by someone who has no credible authority whatsoever.  In this era of instant gratification, wouldn't it be better to show some restraint or at least consider that others are not as rabid about a particular subject as you are?

This extends to social media as well.  With the impending 2012 presidential elections, this medium will be used and abused as much as email.  At least with social media, I can unfriend, unfollow and disconnect.  So forget including me in distribution lists, flash mobs, chain letters or petitions to get whoever recalled from office, whoever elected to office or solicit my vote.  Unlike our politicians, my vote is not for sale to the highest paying lobbyist.  No more political cartoons (I'll get mine from the Sunday paper, thank you.), no more quotes from supposed intellectuals, no more videos from talking heads, no more doctored pictures, no more commercials with information taken out of context, no more blather from cable/broadcast news.  To quote from the movie "Network", "I'm mad as hell and I'm not going to take it anymore."  And I don't want to hear about it for the next 15 months.  When I'm ready to vote, I'll do my own research without kibitzing coming from useless emails.

I encourage you to take this same pledge.  No more political email.  And I'm not talking about some phony political pledge that supports a platform that benefits a very small minority.  Think like an American.  What's good for all of us is good for each of us.  If you are going to take the pledge, please comment below.  And feel free to use this as a template for your own declaration to your email contacts.  And if this is all too much for you, please feel free to delete my email address from your contact list.

Patience, leadership and basketball

This is not a grand post about sports analogies or advice from playing a game that doesn't apply to your everyday life.  How you view this post hopefully will be one that helps you see that obstacles can be overcome with patience, persistence and having a good mentor by your side.

At this week's ProNet general meeting, we had the distinct honor and privilege to have David Carter, the head coach of University of Nevada-Reno's men's basketball team speak about his journey to his current position, how he approached his goals and how he had a key mentor that helped him with perspective.  He also will be referred to as "Coach Carter" in this post, since that is what he has his long-time friends call him.  Yes, the ones that told him after his basketball playing days were over, that being a coach was a foolish thing, in so many words.

As a star basketball player for Crenshaw High School in Los Angeles, Coach Carter had many choices of top-notch colleges to attend.  But if it wasn't for his older brother, he may not have even had that opportunity.  With formidable competition for the point guard spot, this was one of the first times that Coach Carter relied on his military-trained brother for advice.  He heard that he should stick with it and do his best.  When he was picked for the team, his brother's response was one of a knowing expectation that Coach Carter would get the desired spot of point guard.  That quiet leadership that he experienced early from his brother, would become a touchstone for other major decisions in his life.

One other situation that is applicable to all job seekers out there was when as an assistant coach, paying his dues, he interviewed for a couple of head coaching jobs.  When he didn't get the positions, the response was that he needed more experience.  This begged the question, "How do I get the experience?".  He learned that in order to be considered for bigger responsibility that you need to show up, do your job the best you can and try to have empathy for the person currently in that position.

A great leadership question was asked related to bringing a group of kids that knew nothing but being a star at the high school level.  Coach Carter said that the key to success was to get the kids to understand that they all have a role to play at a specific time.  Seniors to freshman all had to know that each player has a role in order for the team to be successful.

And lastly, he was asked about interviewing for a job while you were still employed.  His comments focused on being where you are, doing what it takes to be successful where you are, don't go looking for it, but be open to the possibilities.

It was a real joy for this former high school basketball MVP to remember some of the lessons that I had been taught by my coaches.  Now it's time to pass those same lessons onto others.

Living in the Upper Loop: Being accountable vs. being the victim

At this week's ProNet general meeting, we were treated to an excellent presentation about the signs and impacts of our behavior, both in our personal and professional lives.  Jane Grossman, a self-described "Catalyst" (love the job description!) with A Sustainable Way, a consultancy focused on creating a competitive advantage, as well as being in collaboration with IMPAQ Accountability Business Solutions, showed us how to recognize when you are accountable for your actions and when you are playing the victim. 

So, first off, how did she describe the meaning of accountability? Using IMPAQ's Personal Accountability model, she first made the distinction between personal and organizational accountability.  Personal accountability was defined by taking action consistent with your desired outcomes.  Organizational accountability was defined as having a working environment where people can count on each other.  The benefits of staying in this "upper loop" are fantastic.  Who out there doesn't want greater success, improved relationships, increased self-confidence, more effective uses of resources and increases in teamwork, trust and morale?

And how do we know when we are in the "lower loop" and playing the victim?  We've all been there - by ignoring an issue, denying that an issue exists, blaming others, rationalizing our behavior, resisting help or just plain hiding somewhere in your bunny slippers.  And how do we begin the process of moving from victim to being accountable?  According to Ms. Grossman, it begins with "the ability, willingness and courage to renew attitudes and behaviors to achieve desired outcomes".  In the business world, this means that teams find ways to contribute to overall success and don't spend time blaming others or tuning out when things don't go their own way.

The first thing to do in getting out of the victim role and becoming accountable is to recognize that you are in a victim loop.  Just like other addictions, recognizing that you have a problem is always the first step.  One of the big steps is about forgiveness.  Ms. Grossman spent a good deal of time discussing that this is a big part of a highly personal process.  I like to say that forgiveness is all about "giving it up" or "letting it go" and this seems to be in congruence with the presentation.  We are entirely too hard on ourselves these days and I think that it's because there is a huge perception that we have so much to lose and there is no room for mistakes.  Sure many of us have made mistakes and paid the consequences but the learning opportunities are what life is all about.  (Just my humble opinion)

If you are looking for a unique, productive method of bringing a dysfunctional team together, I would highly recommend that you check out A Sustainable Way and have Ms. Grossman come in to help break a logjam of decreased productivity, distrusting relationships or lack of success.  You can reach her at 775-849-9755 or janeg@asustainableway.com.  To learn more about IMPAQ, the Personal Accountability model and their extensive strategy and leadership development programs, check out their website at www.impaq.com.

Are you getting ready to dip your toe into the hiring pool?

Photo by Jonathunder

Ah, summertime.  When the eatin’ is good and the cotton is high!  Graduations are done and a whole new crop of eager beavers are out there looking for their first great opportunity to make a difference in this great world of ours.  Many have their heads filled with new ideas and the passion to make them happen.  So how many of them are knocking at your door?  Do you really have a need or an opening?  Are budgets set for the year and “it’s just not a good time”?  Are you looking for someone to provide that spark of innovation that could kick your accomplishments (and profitability) into high gear?

Sometimes it feels like a curse to have seen so many ways not to run a business.  One gigantic mistake that I have seen frequently is that business owners and managers underestimate the value of the people they hire as employees.  Yes, we live in a time when corporate and employee loyalty are not what they used to be.  Yes, there is pressure from overseas to outsource American jobs that no one dreamed would happen.  Yes, there is increased competition and costs putting constant pressure on profitability, both long-term and short-term.  So, as someone in the position of hiring new employees, how do you go about filling key positions and identifying the kind of people you need?

Willie Mays - NY Giants - 1954

First decision you probably have to make is cost based.  Based on the skill set required and the supply and demand for that skill set, you try to set a salary level, advertise for the position and sift through the resumes.  When you’re sifting, what are you looking for?  You typically have two choices: hire the veteran or hire the rookie.

With the veteran you hopefully are getting a seasoned professional who can make an immediate impact.  This is also the person who is going to cost you more.  The rookie will be a smaller hit to your budget and will most likely require more training and handholding to get them up to speed.  Ideally, this should be a classic “you get what you pay for scenario”.  There are distinct advantages and disadvantages in each scenario.  The veteran may be the “rainmaker” you need and there may be baggage or skeletons from previous experience that may negatively impact performance.  The rookie, on the other hand, will be cheaper yet their inexperience will require training time and effort that you may not feel you have.  The value proposition is whether the time invested in training the rookie and the funds saved in compensation will pay off over the expected length of time the new employee is with the company.

In either case, whether you hire the veteran or the rookie, it is key to find out what their level of commitment will be to the new position.  Again, without much loyalty on either side of the table, as the business owner you need to know how much you can rely on the prospective employee, especially if they are going to be in direct contact with your customer.  Which brings up another extremely important point.  If you are trying to find someone for an open position in sales or customer service, this is the time to be extremely selective.  While other positions in the company are important to the operation of the company, you can make an unbelievable impact by hiring the right people for customer contact positions.  This is where the image and culture of the organization will be in contact with the outside world.  This is where your style as the business owner will be reflected and duplicated to your customers.  Many companies require personality testing when looking for customer contact employees.  While I’m not a big fan of categorizing people into neat psychological cubbyholes, this is one area where I would consider making an exception.  During the interview process, you want to hear phrases like, “I love working with people”, “I’m calm under fire” and “I like to help others in developing solutions”.

One thing to remember: that while products and services are sold to generate revenue, it’s the people that make it happen.

The Debt Ceiling and our Two Party System

Okay, so I can't keep my big, fat mouth shut on this issue any longer.  First off, please know that I am not affiliated with either of the major parties.  I am at times disgusted, yet find myself agreeing with some issues on both sides.  So I guess that makes me the definition of today's independent voter.

With all the gnashing of teeth in Washington on whether or not to raise the debt ceiling, it is plain to me who will be to blame if we get to August 3rd without coming to a resolution.  That would be the party of 'no', the Republican party.  Please don't get me wrong, I agree with many of the ideas regarding bringing the national debt under control.  Let's keep this part simple.  One party says yes.  The other says no.  It's the one that says no that keeps the ceiling from being raised and will be responsible for holy hell breaking loose in the financial markets.  So my message to the leadership of the Republican party - your legislative body knows that the real work happens in negotiating the budget, so do it.  Their is no upside to holding the debt ceiling over the heads of every American citizen, only downside.  Quit being childish and walking out of meetings.  By the way, this sets a great example for our children - if you don't like the game, you just take your toys and go home.  Real nice.

And here's the other part that the Republican party does not seem to see or hear - the middle class is suffering more than the 9% official unemployment rate indicates.  Many more are under-employed, using savings and scraping the bottom of the barrel just to get by.  Some economists are saying that we are really in a depression.  But that news doesn't seem to be getting to the GOP.  They steadfastly refuse to close loopholes for the rich and are willing to threaten any chance that we have for a real recovery in the short-term.  Yes, I understand the long-term goals of less government, less taxes and all.  We all want more in our pocket.  Yet, no one wants to pay for any of it, especially the rich ones who who paid for the loopholes and can more than afford some of it.  Remember this, 40% of the nation's wealth is held by 1% of the population (Wall Street Journal).

Oh and the Democrats are not without blame either.  Yes, some of the spending was necessary to keep the economy from falling into a 1930's style depression.  The money wasn't coming from the consumer or business sectors.  That said, now is the time for true long and short term planning.  Now is the time for real efficiencies to be put in place.  Now is the time to get rid of redundancies.  Now is the time to look at real cost benefit of everything, including defense and entitlements.  Unfortunately, a few got us into this mess, but all will have to sacrifice at some level.  Oh and by the way, what is really being done to keep this from happening again?  Not much I'm afraid.  Between the toothless SEC and the timidity of Congress to enact real reform legislation, we are in danger of all this happening again when real recovery occurs. 

True reform is going to take real compromise.  The majority of the country is in the middle.  I suggest that both parties meet us there.  It's only together - united we stand - that we will be able to get through these most devastating economic times.

Time to listen to Chicken Little?

Gas Prices Going Through the Roof!  Interest Rates are Climbing!  Inflation on the Horizon!  Social Security Going Bankrupt!  Health Care Unaffordable! Chicken Little Says, “The Sky is Falling!”

It’s bad enough that you are constantly worrying about the revenue side of your income statement when the expense side is just exploding.  The pressure from competition to keep your prices low and higher expenses squeezes your profit.  As a small business owner, you are left with trying to make hard decisions that affect your customers, employees and suppliers.  It’s times like these where it’s a good time to look at the overall strategy of your business.  So where do you start?

Taking a business plan approach to your business is a great place to start!  Look at your marketing plan to see if your strategies are still relevant.  Are your customer acquisition methods still working?  Is customer service still the best it can be?  Look at your financial plan.  Are your margins holding or are they under pressure from suppliers and vendors?  Do you have sufficient cash to meet your obligations?

Revenues are generated by demand for your product or service.  There are many questions to ask about what is changing about your customers during uncertain times.  We haven’t experienced inflationary times in a generation.  Price sensitivity is a key concept that will be talked about as if it is a new idea. 

As your costs increase, many businesses need to determine if some or all of those costs can be passed on to their customers.  You, as a small business owner, need to make the determination if you will lose any customers if you institute a price increase.  If you will lose a significant number of customers with small price increases, this means your customers are very price sensitive.  Also, if your product or service is not a commodity, odds are your customers will be less price sensitive.  Conversely, if your product or service is a commodity, the more likely that customers will shop around to find a better price, hence a higher price sensitivity.

What if your customers are very price sensitive and you cannot raise your prices because losing any customers would be a disaster?  Your only choice is to take a hard look at your expenses.  The trick to making these hard decisions is to minimize the affect on your business’s ability to service your customers while maintaining good relationships with suppliers and employees.  Unfortunately, the reality is that someone will not be happy.

With fuel costs skyrocketing, you may be able to get away with a fuel surcharge.  There are many businesses that are freight-oriented and are having to consider this change.  If you are considering a fuel surcharge, consider that it be used only temporarily.  When gas prices settle down (and they will), your customers will perceive that you should incorporate the added expense into your pricing.

Annual increases in health care costs have been outpacing increases in all other business expenses for quite a while.  Even large companies that spend billions on health care for their employees, are considering drastic measures to reign in the cost of this benefit.  You may have to consider health plans that are not as rich in coverage or require that your employees share in the premium cost.  If health care has been a bigger part of the overall compensation package, the harder it will be to make these changes and not affect the motivation of your employees.  One option that is becoming popular among small businesses is to offer a fixed dollar benefit for health care premiums and let your employees find an insurance plan that fits them best.  The general trend is that the more that employees have to pay for their own medical care, the more they will be discriminating with their medical expenditures and look to prevention options, such as a better diet and exercise.

With all the feathers being ruffled over changes to Social Security and the harbingers of doom being broadcast by both sides of the political fence, it is still extremely important to keep making contributions to your retirement plan.  As a business owner, if you feel that you have to cut back retirement benefits, one way would be to cut your match of the employee’s contribution in a defined benefit plan.  If you are considering eliminating a retirement benefit or plan, always consult your CPA and your financial advisor to discuss the ramifications, both with the IRS and with your employees.

If you got this far, it's hard to believe that I wrote most of this article for The Business Times in Grand Junction six years ago!  Yes, 6 years ago!!!  While things change, some things stay the same.  What's that tell you?  Keep at it!  Focus.  Know that you have control over some things, yet it doesn't pay to spend your energy worrying about others.

Review of "Inside Job", Oscar winning documentary and a comment or two

Last weekend, I got around to watching the documentary that created a real buzz at the Oscars for the winner's acceptance speech as much as the movie.  In his acceptance speech, Charles Ferguson said that not one person has gone to jail for what was perpetrated on the American people and the world in the financial meltdown.  When you look at the vast amount of greed that has occurred in the American financial system of the past decades, he has made a film that lays it all out, warts and all, for all of us to see.  AND YOU NEED TO SEE THIS ONE!  As demonstrated in the movie, there is plenty of blame to spread around, particularly with the investment banks, the SEC and the rating agencies.  Even worker bees in the mortgage and real estate business rode the tsunami of cash for a long time.  Yes, many local folks worked very hard and now they all have taken it in the shorts the past couple of years and will continue to feel the pain for another five years, at least.

So who's all to blame?  Oh my, where do you start?  Where do you end?  The thing you have to remember is that blame is not necessary criminal.  That is where I think that the investment banks, the SEC, AIG and the ratings agencies are primarily to blame, but someone needs to look deeper.  If they and others were not making changes in the legal connections over decades between mortgages and derivatives, the financial community would have been hard pressed to create such a calamitous event.

We also know the usual suspects in this case if you haven't been paying attention - mortgage brokers, commercial banks, investment banks, AIG, the SEC, the rating agencies and of course, the politicians.  Yes, we can certainly point a big, fat finger at previous White House administrations (yes, plural and of both parties) as well as Congress.  Too much money, too much greed and too many people willing to look the other way.

I am also going to offer another reason why we ended up in this fix.  Short-term thinking.  For years we have simply decimated our manufacturing sector.  Because we valued short-term profits over long-term strategic thinking (for the reverse, see China), we were willing to send millions of jobs overseas because labor was so much cheaper.  We lost the diversification of our economy, forgetting how to make things or at least not caring because we only want a "heckuva deal".  So in order to keep our GDP growing every year, we needed another sector to take the place of manufacturing.  Enter the construction industry.  For years, we hung on the leading indicators of new housing permits and starts like it was real growth, when in reality it was about bigger and better houses because we can, not because we should.  The "I want it now" mentality, "push a button and get a result", gave us short-term profit expectations in long-term investments.  And we all just followed the pied piper, Mr. Greenspan, as well as others that said that deregulation was good.  So, some of us need to take a good look in the mirror.

Now it's time for the rest of us to play a different tune.  Oh and if you're looking for someone to really focus the gleaming bright light look no further than the people responsible for designing the compensation packages throughout the financial industry.  When you want to change or direct behavior in a capitalistic society, there's no better way that to give an incentive for that behavior.  Now, don't get me wrong, I pretty much dig the capitalistic system.  Yet, any adequate checks and balances that were in the system were swept away with strong lobbying efforts and campaign contributions.  Yep, that other tsunami of cash that also benefited a select few.

Okay, I could go on with this but know I should probably quit while I'm ahead.  If you feel compelled, make a comment on this post.  As long as it doesn't flame anyone personally, I'll post it.

PS. I will say it was a little weird to see Dominique Strauss-Kahn being interviewed for "Inside Job".  Too bad he couldn't keep it in his pants.  He actually nailed it and provided one of the few perspectives that showed a global view (and frankly he should have being the former head of the IMF and all).  Watch his interview in the Special Features section of the disk.

Economic Development and the Tahoe Reno Industrial Center

In all my running around networking in the community, it's always great to meet new people.  This morning I attended the monthly Network Business Connections (NBC) breakfast in Carson City.  The best part is getting out from behind the computer to actually meet people (wow, what a concept these days!).  And you get to sit next to folks and find out about what is happening at the grassroots level in the business community.

The guest speaker was Lance Gilman from the Tahoe Reno Industrial Center (TRIC).  For those that have either met Mr. Gilman or listened to him speak, you definitely have to say he speaks his mind and is a real character.  That said, he spoke about the current state of economic development in the region from his perspective as developer of the TRIC.  For those of you that don't know the basics about the TRIC, this is one of the largest industrial parks of its kind in the USA.  In just the first phase, the park will support 100 million square feet in the first 5,000 acres, nearly tripling the existing industrial space in the Reno/Sparks area.  Completely outfitted with rail, fiber, power plants and other upgraded municipal services, TRIC is designed to make the biggest economic impact the region has ever seen.

A major point that Mr. Gilman promoted during his talk was the key skill of selling.  In his review of his background he talked about selling boats in San Diego during the OPEC oil embargo of 1973-1974 when gas was not being sold for boating, the lack of real selling skills at a well known motorcycle company and the ups and downs of real estate.  In so many words, he said that selling is a matter of mindset and not to listen to the news or read the newspapers and instead focus on the aspirations of our customers.  He also said that we cannot use the past to predict the future anymore, particularly with all the uncertainty coming from our government officials these days (with that last part with a little colorful language - loved it!).

In the end, the point that we all heard loud and clear, was that if the business community wants more efficiency from our government entities, it is up to us.

A big thanks to Kris Holt for bringing Mr. Gilman to speak to the group and providing assistance to economic development in the region and the community at-large.

ProNet presentation - Getting the Most from Social Security

This week's presentation was quite timely for many of the members of ProNet that are over 50.  While all of us are thinking more about getting our next job, retirement is one of those things that is looming in the background.  And a big component of that retirement equation is Social Security.

While there may be some that will preach "doom and gloom" about Social Security, this was not the focus of our time with a regional representative from Principal Financial Group.  The strong message was that while the federal government is making cutbacks in service (no longer printing reports and not printing checks soon), there are many investment organizations such as Principal that have retirement experts that can help wade through the complicated process of how to best manage your decisions on when to claim and when to wait.

A nice, shiny handout covered the main points: know your benefit, understand your options and determine a plan to maximize your benefit.

First, in knowing your benefit, the primary issue is knowing your full retirement age and whether you choose to start receiving benefits at 62, full retirement age or age 70.  There are many factors involved in making this decision.  There are no cookie cutter solutions.  Much depends on your financial situation regarding how much you have saved, your current health, your marital status and your spouse's social security status.  This is where good advice is a must.

Second, in understanding your options, there are choices that you have that will make a significant difference in your overall retirement income and your tax situation.

• Regarding eligibility, you need to determine if you are eligible by working the minimum number of quarters (right now it's 40).  
• Regarding timing, you need to make a decision if you are going to elect to take benefits early or late (big difference in the amount of the permanent benefit).  
• How about working?  You need to consider if you want to continue working and earning a wage.  If you do, it could mean an issue with having benefits being withheld.  
• Taxes are always a concern and you should consult your tax person to determine the tax impact of receiving social security benefits.  
• There also is a spousal benefit.  If there is a significant difference in individual benefits you may want to consider the spousal benefit to help maximize your total household benefit.
• And, of course, there are special provisions - "claim and suspend", "claim now, claim more later" and "do-over". To find out if these apply to you, ask you investment representative, CPA or go to the Social Security website.

And last and the bottom line - just like anything these days, you need to determine your plan of action in order to get the most out of a government program, such as Social Security, that will be even more instrumental to our retirement going forward.   Just so you are prepared before you go to that first meeting with a financial professional, get all the following items together: your most recent Social Security statement, your most recent tax return, your most recent pay stub (if applicable), your latest statements from your IRA's, 401K's and other retirement plans, your latest statement of mutual funds and investments, copies of your life and disability insurance policies, copies of annuity contracts and your latest wills and trust documents.

A big thank you again to staff from Principal Financial Group and Wells Fargo Advisers for taking the time to present to ProNet on this critical and valuable subject.