Pro global business

This morning I woke up to news that President Obama has fired GM President Rick Wagoner. Which now means the government is running GM, at least for now. I’ll say it again…The government is running GM.

Sure GM took some bailout money, sold their soul to the devil and are now paying the price. But here’s the part to ponder. Obama and his group gave GM and Chrysler a last chance effort to come back with a plan that would get them out of this mess. A plan? How does a company whip up a marketing/financial plan on the spot when they obviously haven’t had a plan for years?

Was it a big surprise that gas prices went up and their products were gas guzzlers? Was it a big surprise that they built copycat vehicles to compete with Honda and Toyota instead of differentiating themselves?

GM and Chrysler have been clueless for the last 20 years. What’s either of their branding stand for? If Volvo equals safety what does GM and Chrysler stand for? Nothing.

Then factor in the unions. What role did they play in destroying the American car maker? So here’s what you have. A company sucked dry from the unions (Obama supports these guys so it’s not their fault), with no vision or brand identity that’s somehow in trouble? There is only one solution for these brands.

Let them die. Before you know it we’ll see new, exciting brands pop up. They will most likely be niched brands that will differentiate themselves. Maybe we’ll get an automaker that just makes electric cars? Who knows but it’s time to let capitalism shine.

The last thing I want my president doing is acting as a CMO!

As the economy continues to sputter along, the sources of traditional small business financing have been quickly drying up. Collectively, banks and commercial lenders are requiring more collateral while simultaneously approving smaller loan amounts. And this is coming as other personal financing products, such as home equity loans, are getting harder to come by. As a result, many new and growing small businesses have been forced to do a lot of scrambling about in search of financial support.

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One promising ray of hope for small businesses in this dismal environment is the SBA-based microloan program. Based on a financing system that was designed to help small businesses in Third World countries, the SBA started this program in the 1992 with the goal of offering accessible financial assistance and counseling to new and growing small businesses. There are currently several nonprofit, community-based intermediaries funded by the SBA. These microlenders provide small business loans as well as training and technical assistance to its borrowers.

Now, the economic stimulus bill recently approved on Capital Hill provides a $30 million boost to the SBA’s microloan program. This is in addition to the $20 million already earmarked for microloans.

Though loans from microlenders can range from less than $100 to as much as $35,000, with a term as long as six years, the average size of a microloan is $13,000 with an average loan maturity of 42 months. The interest rate can be negotiable, but it tends to be higher than it is for standard business loans (usually between 8%-13%). A microlender can also serve as a subordinate lender to banks, sometimes enabling the loan to be increased to $50,000.

As the recession continues to deepen, microlenders across the country are experiencing an increase in inquiries from would-be entrepreneurs and small business owners, including entrepreneurs starting “high risk” ventures and established businesses that have bad credit or a poor sales history. Most applicants are drawn to the availability of financing, the easy approval process, the personal touch that most microlenders have to offer, as well as the free business training and technical assistance.

If you are in need of a small loan to help get your business off the ground or to expand an existing business, this program is definitely worth checking out. For help finding a microloan lender, the SBA provides a listing of all the intermediaries that are part of the SBA’s microloan program. There are microlenders located in almost every state.

This The Honest Way blog is getting its second post in a month. What’s going on here? I’ll tell you. I love it when someone writes a review of a product or service that is hard hitting and honest, then all the affiliates and noob hangers on of said product come out in force to try [...]

In the midst of all the outrage surrounding AIG’s infamous bailout bonus packages, a surprising detail has emerged. The so-called “retention” bonuses were paid to 52 people who have packed up and left the company. Though one could perhaps argue that the people who left technically could afford to leave, and anyway they weren’t doing such a good job in the first place, it still raises two powerful questions: 1. How could the powers that be at AIG be so out of touch and unconcerned with employee performance?, and 2. Shouldn’t the “generous” benefits have made their employees more loyal to the company?

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It’s very clear to me that the two are connected…

Employee loyalty does not begin and end with benefits and perks. A benefits package is only one piece of a bigger picture. Employees also need to feel appreciated and noticed; they need communication and feedback; and they need to feel that the work they are doing is challenging, yet doable. Basically, it all boils down to the fact that employees need to feel that they and their contributions to the company are valuable. Once that is in place, it makes it easier (though still not easy) for employees to swallow any necessary reductions in benefits and compensation without immediately fueling dreams of leaving the company.

This should come as consoling news to small business owners who have been forced to cut back on employee benefits and have had to let go of employees in response to the recession. Many of these people are dealing with low employee morale and worry that key employees will leave once the economy rebounds.

So what can small business owners do to retain employees and keep up the morale in this recession? Here are some points to keep in mind:

• Make employee recognition a priority. It is human nature for people to want recognition for their input and hard work. Some free or low-cost ideas include: personalized “thank you” notes, sending along a compliment made by a customer or co-workers, and giving out gift certificates to high-performers. But keep in mind here that your comments and actions should be sincere to have the desired effect.
• Ask employees for feedback. Your employees are one of your most valuable assets. Ask them for advice on how they can do their jobs better and how the company as a whole can improve. You may be surprised to hear what ideas your employees can come up with. Even if an idea is not beneficial or feasible, you should still let your employees know that you considered what they had to say.
• Keep your employees up-to-date. One important element in being able to allay your employees’ fears about their job security and to boost employee morale in general is to be open with your employees about where your company is holding in terms of its performance and finances. But there is one important caveat here. You will have to determine an appropriate balance between disclosing information and withholding it. Openness does not mean you have to tell your employees everything. You may need the assistance of an HR consultant to help you determine what to say and what not to.
• Be creative about benefits. Though reductions to your employee benefits may be inevitable, it doesn’t mean that all is lost. Here are a few tips to reduce the expenses of your health care coverage without giving it up. You can also seek out low-cost seminars for your employees, such as having someone come in to speak about financial planning.

 

Wisconsin paid $50,000 for this logo and tagline…

The tagline has been used many times over with other companies.  Read about that here. Why use and pay for a tagline that clearly does not differentiate but instead puts you right in the middle of the pack? And what are your thoughts of the logo? Worth 50K?

Click here to view the embedded video.

Is this a brand extension from hell or what?

In several of my previous posts, I mentioned that hard economic times are known to be the harbinger of innovation and business opportunity. So I thought I would give you a few examples of some famous companies that got their start in the harshest of economic conditions:

General Electric (GE). GE got its start in the middle of the Panic of 1873, which became a six-year recession, when American inventor Thomas Edison created the first the incandescent light bulb. GE is today considered the world’s tenth largest company.

Fortune Magazine. Fortune, the famed global business magazine, was founded by Time co-founder Henry Booth Luce in February 1930, just four months after the Wall Street Crash of 1929 that marked the onset of the Great Depression.

Revlon Cosmetics. Revlon was founded in 1932 in the midst of the Great Depression by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman. The three founders pooled their resources and developed a unique manufacturing process for a new type of opaque nail enamel. Within six years the company became a multimillion dollar organization

Hewlett-Packard (HP). HP began as an electronics company in a garage in Palo Alto, California at the end of the Great Depression. The founders, William (Bill) Hewlett and David (Dave) Packard, formalized their partnership in 1939 with an investment of US$538. Today, HP has operations world-wide and has grown into the first technology business to exceed $100 billion in revenue, earning $104 billion in 2007.

Sports Illustrated. This famous sports magazine was launched on August 16, 1954, at the tail-end of a recession. The magazine benefited from fortunate timing as a boom in professional sports exploded soon after its founding. Sports Illustrated now sells about 3 million copies in the U.S. each week.

Burger King. This well-known fast food chain began in 1954 when James McLamore and David Edgerton opened a Burger King restaurant in Miami, Fla. During a second recession in 1957, the company introduced its successful signature burger — the Whopper. Today, the company operates more than 11,100 locations in 65 countries.

Hyatt Corporation. The renowned hotel business got its start at the Los Angeles International Airport during the Eisenhower recession (1957 to 1958). The chain rose to worldwide fame in the following decades and now operates more than 365 hotels in 25 countries.

IHOP Corporation. The first restaurant of this well-known national chain began in July1958, in Toluca Lake, Calif. Owners Al and Jerry Lapin were at the helm of the fast growing company, which began franchising just three years later. Today, there are more than 1,300 locations across the U.S.

The Jim Henson Company. This company, known for its famous puppet characters including Miss Piggy, Kermit the Frog and Elmo, was created by famed puppeteer Jim Henson in 1958. Today, the privately held company is managed by Henson’s children and continues to thrive by creating popular kids-friendly shows and movies.

Trader Joe’s. The neighborhood grocery store began as a chain of convenience stores called Pronto Markets during the Eisenhower recession in 1958. In 1967, the company changed its name to Trader Joe’s and began to carry unique grocery items under its own brand. The company now operates more than 280 stores in the U.S.

LexisNexis. This computerized legal research service got its start during the 1973 oil crisis which brought the US into a deep economic recession. The service has since been made available online and is used in 100 countries by those involved with law, government, education and business.

FedEx Corporation. This shipping and logistics management company was founded by Frederick W. Smith on April 17, 1973, under the name, Federal Express. Today, FedEx manages more than 7.5 million daily shipments worldwide.

Microsoft Corporation. The ubiquitous computer technology corporation got its start in 1975, when it was created by Harvard University dropout Bill Gates as a little company in Albuquerque, N.M. Then, it dealt in rudimentary computing languages and began its climb to business stardom in the recession-plagued early 80’s with the success of MS-DOS. Today, Microsoft is a multinational company offering a wide range of products and services and an estimated revenue of over $60 billion a year.

Cable News Network (CNN). CNN was founded by Ted Turner in the recession of 1980. It was first station to offer a 24-hour all-news channel. Today, approximately 1.5 billion people across the globe watch CNN.

MTV Networks. MTV debuted during the economic slump of 1981 as an all music video channel hosted by various VJs (video jockeys). Today, the channel offers a selection of music videos as well as several popular pop culture and reality TV shows.

Clif Bar. The Clif Bar got its start in the midst of the recession of the early 90’s when company founder and CEO Gary Erickson decided during a 175 mile bike ride that he could no longer take another bite of the energy bars he had due to their poor taste. He developed Clif Bar as a tasty, healthy, and environmentally friendly alternative.

As the unemployment rate surges across the nation, a diverse group of people of various ages and backgrounds are suddenly being faced with the question: What next?

History attests to the fact that economic difficulty often spurs innovation and creativity, and our current economic crisis should be no different. In a recent post, I noted that the rate of small business formation is expected to grow in the coming year as more workers are laid off and a general sense of job security is threatened.

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If you were recently laid off then the very idea of starting your own venture may be overwhelming (and rightfully so), but there is also much to be said about the opportunity that it creates- for you and your potential customers.

Here are some tips on how you can turn this setback into an opportunity to start your own business:

1. First, get some perspective. Try to stay calm and allow a little time for the news to settle. Depending on your financial situation, you may need to start making decisions quickly, and to do that you need to be in a rational state of mind

2. Clarify your financial situation. If you haven’t already done so, you should organize any bills or other outstanding debt, and determine your monthly expenses. There are two main reasons for doing this. First, you need to determine how much money you will need to support yourself in the meantime, and second, you need to prioritize your bills and expenses to see what can be forgone, what can be negotiated, and what can be pushed off outright.

3. Try to minimize the financial strain. Reducing the pressure of earning an income will give you the time and security to plan your business. If you need quick access to money try to avoid relying on credit cards, payday loans, or any other high interest forms of finance. Instead, attempt to negotiate a payment plan with your creditors. They may be willing to reduce your minimum payments or waive the interest until you are working again. You may also want credit counseling. There are a number of organizations that offer this counseling for free or low cost, such as The National Foundation for Credit Counseling, American Consumer Credit Counseling, and Advantage Credit Counseling, Also, find out if you qualify for unemployment benefits and file as soon as possible. Finally, you may want to look for a temporary job to ease the financial strain.

4. Begin preparations. Once you have a handle on your new situation, you can then begin the preparations for starting your business.

But if you lack experience or training in the venture you want to start then your fist priority is to gain that experience. To do this you could take a job in that area. For example, you could work in a restaurant or bakery if you want to open a catering business

On the other hand, if you already have the necessary training and/or expertise then you should check out the various programs offered by organizations designed to help entrepreneurs and new small business owners get the information, training, and even financial assistance they need. Much of this assistance is either free or low-cost. Some sites that are definitely worth checking out include:

• The United States Small Business Association (SBA)

• The National Federation of Independent Business (NFIB)

• SME Tool kit

• Business.Gov

• Start-Up Nation

• My Own Business

• SCORE

• The American Entrepreneurs for Economic Growth

• Internal Revenue Service Small Business Tax Center

• The American Small Business Development Center Network

• Micro Mentor

• National Business Incubation Association

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All the fuss has died down on Seth Godin’s Meatball Sundae book so I thought now would be a good time to chat on it.

The book is very easy to read and I liked how he wrote in 1-2 page chapters. Made it very easy to follow along. His explanation of new marketing was on target.

Here’s what was missing… Branding. Nothing really ever mentioned on how companies can translate new marketing into a big picture branding strategy. After all new marketing is really just a bunch of tactics. Write a blog, build a forum etc. All of these are mere tactics. How do they translate to and interact with a companies brand identity?

I also felt that Seth was somewhat harsh on traditional media. He lumps TV advertising into one bin and says it’s done. And although I do agree to some extent I also believe that GREAT, targeted TV Advertising works exceptionally well. And here’s where the rub is…Permission Marketing.

Seth believes that interrupting consumers is bad, hence his disdain for spam, tv commercials, radio ads etc. Whereas I believe that consumers expect interruption but because it’s generally bad they despise it. But I also believe that good, targeted interruption can be very beneficial. Here’s an example:

Say I have a great diabetes cereal product like Glucerna (http://glucerna.com/product/cereal.aspx), a well targeted email campaign to people with diabetes could be very helpful. Is it Spam? Technically, yes. But it will be of serious help to this targeted list. Will they see it as an interruption? I don’t think so. I have diabetes and saw Glucerna’s TV commercial and immediately went to their website to learn more.

So I do feel like there is a grey area to Permission Marketing. What are your thoughts?