Stand with Small Business, Support Health Reform

While much attention has been focused on this year's health reform debate, there has been startlingly little of that attention paid to the plight of America's small business owners, like Miriam Malkovsky, owner of the Bombay International boutique in South Bend, Indiana. These businesses and their employees, as well as their owners and their families are on the front line of America's health care crisis.

Below, I share with you an op-ed from Miriam that was recently published in the South Bend Tribune in South Bend, Indiana. With critical House and Senate votes approaching, it is vital that voices like Miriam's are heard above the drumbeat coming from the lobbying onslaught bought and paid for by powerful interests.

That's why U.S. PIRG, Consumers Union, Small Business Majority, and Main Street Alliance have joined forces to fly in over 100 owners of small businesses to Washington this Tuesday. They will meet with U.S. Senators and with Secretary of Health and Human Services Kathleen Sebelius, and they'll discuss health reform legislation with their own members of Congress. Here's hoping that the House and Senate listen to them.


If I ran my business like health care ...


I am the owner of Bombay International in South Bend. I am proud to live and work in South Bend.

As a small business owner, I do everything possible to run my business efficiently and to keep my own costs as low as possible. I do this because I think it is important to give my customers the best product for the price.

It is unfortunate that the health care industry doesn't run itself this way. In fact, the health care system is filled with waste and inefficiency that drives up the cost of health care for everyone. So much so, that not everyone can afford care.

My scarves cost between $19 and $24. I have not raised my prices since I opened the store 10 years ago. According to a recent U.S. Public Interest Research Groups report, premiums for Hoosiers have doubled in the past decade, and are on track to double in the next eight years. If I ran my small business like health care, I would be charging $14 to $18 dollars more today than last year, and would charge between $61 and $78 for the scarves by 2017.

I do much of the bookkeeping to keep my finances in order. Last year, some health insurance companies increased their administrative costs four times the rate of inflation. If I ran my business like health care, I'd go out and hire four bookkeepers regardless of whether or not I really needed them, and pass those increased costs on to my customers.

All of the items in my store have stickers and bar codes to indicate the price. Most other small businesses in Indiana do the same. Most hospitals, however, rarely post their prices, making it impossible to see if hospitals are charging a fair price and actually competing in the market.

Because time is money, I try to keep paperwork at a minimum. Don't do the same thing twice if you can only do it once. My dealings with health insurance companies make me wonder if their motto is "don't do the same thing twice if you can make someone do it four times!"

We need to get serious about health care reform -- in particular about making the system more efficient and delivering higher quality care at fair and affordable prices for consumers. We need to streamline administrative waste, ensure that doctors have access to the most up-to-date information about the treatments that work best, prohibit insurance companies from denying people with pre-existing conditions and create real competition with a public option.

I hold my business to a high standard of efficiency. Shouldn't we hold the health care system to that standard, too?

Mariam Malkovsky is a South Bend resident. Ashley Fisher, U.S. Public Interest Research Groups field associate, assisted Malkovsky in writin


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In Boost for Economy, Companies Spend on Equipment

Businesses are finally willing to spend more money on equipment, a healthy sign for the economic recovery.

For the first time in nearly two years, companies ponied up more money for a category called "equipment and software" in the third quarter of the year.

It isn't a huge growth rate — just 1.1 percent, according to the government's report last week on U.S. economic growth. Still, equipment and software are a broad and important category of items made by such companies as Deere & Co., EMC Corp. and General Electric Co. It includes computers, software, medical equipment, industrial engines, autos, planes, furniture and farm machinery.

Business spending is especially crucial now because consumers, who normally drive a recovery, aren't doing so this time. Many shoppers are too squeezed by job losses, flat wages, tight credit and high debt.

The higher spending doesn't necessarily mean companies are swimming in cash. But in a twist on the Ant and the Grasshopper fable, some businesses managed to save enough during the recession to spend more now, analysts said. Others can't get loans to expand their plants and instead must upgrade the equipment they have, analysts said.

When businesses spend more on equipment, jobs can eventually be created at companies that make the machines and the parts that go into them.

Some makers of technology-related equipment see better business conditions. At EMC, which sells data storage machines and software, CEO Joe Tucci said he was starting to see customers become more comfortable with ramping up spending on information technology.

EMC said it expected a "slow but steady recovery."

For now, though, most businesses are reluctant to hire. To meet any pickup in demand, they're relying instead on workers they already have.

The economy isn't likely to create many jobs until a broad-based recovery has taken hold.

Edward Yardeni, president and chief investment strategist at Yardeni Research, predicts businesses will boost their spending on capital equipment at around a 10 percent annualized rate in the current October-to-December quarter. And he thinks it will continue rising after that as businesses' revenue and profits improve.

For now, companies will probably focus spending on computers, software and other technology that can boost the productivity of their existing workers, he said.

The need to frequently upgrade their technology gives many businesses another reason to spend, Yardeni said.

The government report Thursday on GDP — the value of all goods and services produced in the United States — showed the economy grew again in the third quarter for the first time in more than a year. It was the most convincing sign yet that a recovery has begun and that the worst and longest recession since the 1930s is over.

Herb Goetschius, president of McNichols Co., a Florida maker of metal gratings and other products, said his revenue is starting to rise after customer demand "fell of a cliff" late last year and earlier this year.

Some companies he sells to are spending more to replace outdated equipment and also to maintain and repair existing plants and machines. All that is boosting his revenue.

"To maximize storage at existing plants, companies are building mezzanines instead of wasting the square footage," Goetschius said. "We see our products used for that."

Economy Rebounding, but Job Growth Lags

Treasury Secretary Timothy Geithner acknowledges the federal budget deficit is too high, but that the priorities now are economic growth and job creation.

Asked repeatedly on NBC's "Meet the Press" whether this means taxes will rise, Geithner avoided giving specifics. He did say President Barack Obama is committed to dealing with deficit in a way that will not add to the tax burden of people making less than $250,000 a year.

The White House has not decided how to reduce the red ink, Geithner said in an interview broadcast Sunday.

"Right now we're focused on getting growth back on track," he said. "And we're not at the point yet where we have to decide exactly what it's going to take."

He acknowledged that the economic recovery, while showing positive movement, has been shaky and uneven.

"A lot of damage was caused by this crisis. It's going to take some time for us to grow out of this. It could be a little choppy," he said. "It could be uneven. And it's going to take awhile."

A bright spot in the recovery identified by Geithner is the banking system, which he said is "dramatically more stable" because of the government bailout.

Geithner said that just one year ago economic activity came to a standstill as major financial institutions shut down due to lack of liquidity.

Even though 115 banks have failed so far this year, Geithner said there has been a "dramatic improvement in confidence," with private capital back in the system. He said large businesses are now able to borrow again.

"The banking system is dramatically more stable than it was three months ago, six months ago, nine months ago, a year ago," he said.

But Geithner said more needs to be done to assist small businesses, adding that the administration is working to help open up credit to them. These businesses, he said, "face a really tough environment on the financing side."

After financial institutions were widely blamed for assuming too much risk and bringing the economy to the brink of collapse, Geithner said a concern now is that they might end up being too timid.

"The big risk we face now is that banks are going to overcorrect and not take enough risk," he said. "We need them to take a chance again on the American economy. That's going to be important to recovery."

House Republican leader John Boehner of Ohio, citing the growing unemployment rate, said Sunday the president's economic stimulus program has done nothing but increase the size of government. He said businesses are "sitting on their hands" because of government spending and proposals for health care and other initiatives he contended would increase taxes.

"Business people are afraid to invest in their business, afraid to grow their business, because they don't know what's going to happen next," Boehner said on CNN's "State of the Union."

Geithner acknowledged the economy remains tough for many workers who have lost jobs and it's going to be some time before the employment outlook starts to brighten for many of them.

"Unemployment is worse than almost everybody expected. But growth is back a little more quickly, a little stronger than people thought," he said.

Unemployment hit a 26-year high of 9.8 percent in September, and the October report due in the coming week could show it topping 10 percent.

"It's likely still rising. And it's probably going to rise further before it starts to come down again."

Geithner said it's too early to decide if a second government stimulus package should be offered, though he acknowledged unemployment probably will rise even more before it starts to turn around. Economists expect to see job growth after the first of the year, probably in the first quarter, he said.

"You're not going to see real recovery until it's led by the private sector, by businesses," he said.

The treasury chief added that with about half of the stimulus money left, along with tax cuts and investments ahead, "there's a lot of force still moving its way through the system now" and that will keep providing economic support. "It's working. It's delivering what it should result."

Last week, Christina Romer, who heads the president's Council of Economic Advisers, said the government's economic stimulus spending already had its biggest impact and probably wouldn't contribute to significant growth next year.

Geithner also said the administration supports steps being considered by Congress like extending unemployment insurance and the homebuyer tax credit.

In addition, he complimented Obama's pay czar, Kenneth Feinberg, for his work in reining in pay for senior executives at the top seven recipients of government bailout money. Geithner played down concerns about government interference in executive compensation and the potential for the most talented and productive executives to leave their companies.

Internet Advertising: How To Recognize If Its Worth Your Time?

Usually the answer to the question is of course it is. Nevertheless the constant in the equation is if the endeavor is accomplished well. Clearly like any other job. Is building your home worth your time? Yes! But any person will say to you, “If you are going to do it, do it right.” Thats the mutual constant in every meaningful project that you deem is worthy. “If you are going to do it, do it right.” The equivalent can be said for web advertising and the advertising of your real world home based business, presently online. When it comes to marketing your home based business online, reaching your ideal viewers is one of the principal things to definitely remember. Its always tougher to produce sales when you aren’t reaching your ideal audience.

So reaching your intended audience becomes undoubtedly significant. Why, because these are the persons who are most likely going to be interested in your web site, services or products. Its far easier to promote your services or goods to the folks who are presently looking for you furthermore show an interest in what you have to offer. Instead than finding yourself having to try to persuade those who are entirely not interested in what you have to offer at all. Although the idea of it might sound straightforward, the online promotion community utilizes a cornucopia of tools and techniques, many of which need a little time getting to know.

Lets use for example a real world business that sells golf clubs and golf paraphernalia. You will aim to target your marketplace audience of individuals who either re-distribute golf clubs and gear, take pleasure in playing golf professionally or like playing golf simply for fun. Here is why, because these are the people that might be interested in purchasing new golf clubs or golf gear.

In this situation it makes a lot of sense to aim to promote on web sites where those people might be golfer’s. For instance, web sites for privileged golf clubs or open golf courses or even tour planners or resorts where folks may play a lot of golf. It doesn’t make as much sense and your advertising isn’t nearly as effective if you were to market and advertise your web site on a site regarding clothes. Certainly some individuals interested in clothing could be interested in golf clubs and gear too. However the odds are much less furthermore your promotion efforts would be more wisely used on placing text ads on web sites that are more applicable to your business.

One thing to point out so you take into account, not all web promotion techniques and tools are built equal. It now and then may take a moment to manage to find the exact moderation between methods that works for you. Lets place your promotion methods into two categories, “Extensive Promotion” and “Instant Exposure.” The two each speak for themselves, your “Prolonged Advertising” methods should be techniques you affirm regularly. Why, your website will be able to constantly experience the rising benefits of these techniques. Also because this method takes recurring action to implement and constantly grow upon. The other, “Instant Exposure” is just that, these techniques usually require involving quite a bit of your energy to utilize and obtain any results from, unless you have a fair budget and can intelligently choose through the muck.

To throw in an additional part to think about when you are choosing a web site to promote on above and beyond relevancy, is traffic. How many monthly visitors does the other web site get? If you are planning to spend your important marketing dollars, this can be an significant decision to make. You intend to place your advertisement on a website that is applicable to your web site as well as most likely to appeal to similar viewers. It sometimes can be a tricky chore to achieve, except you’ll realize you are getting your money’s worth of coverage through this advertising technique.

Non-profit Helps Refugee and Immigrant Businesses Flourish

Maria Elena Terriquez had always wanted to run her own business. She had sold perfume in Mexico for 15 years when she immigrated to the United States to join the four of her five adult children who were living here.

It’s been ten years since she arrived, and at 54, Terriquez now runs a Fruitvale Avenue perfume business called Las Mil Y Una Fragrancias that translates into 1001 Fragrances. Part of what helped her start the business was training she received at AnewAmerica Community Corporation, a non-profit that offers business-training services for immigrants and refugees. On Thursday evening, wearing a bright cap and gown, Terriquez graduated with 34 of her peers from AnewAmerica’s micro-business training program.

“I was cooking in several restaurants in Oakland,” said Terriquez in Spanish, through the English translation of AnewAmerica Program Associate Ferron Salniker after the graduation ceremony at Holy Names University. “Now I don’t have to work in other places, because my business sustains me,” Terriquez said.

The ceremony had a familial atmosphere, with family and friends standing up throughout to snap photos, and small children fidgeting in their chairs searching for their parent in the sea of blue graduation gowns at the front of the room.

AnewAmerica’s three-year Virtual Business Incubator program provides micro-business development training to help clients achieve financial literacy and economic self-sufficiency. It also offers long-term investment planning, and technological training, and emphasizes the importance of social responsibility.

Clients have opened businesses that include an event planning service, a Mexican ice-cream shop, and a Nepalese rug shop.
Penny Baldado, Eunice Griffin, Dolma Chuteng, and Dexi Palmo (from left to right) await their graduation from Anew America's micro-business training program

Penny Baldado, Eunice Griffin, Dolma Chuteng, and Dexi Palmo (from left to right) await their graduation from AnewAmerica's micro-business training program

Once clients graduate from the six-month training program, they receive two and a half years of guidance toward the development of their own businesses from staff-members, and volunteers who include business students and small to medium business owners.

“A lot of the people who are new to this country might not be able to find, or at least not right away, well paying jobs,” said AnewAmerica Business Program Director Jeff Butler. “There might be barriers of experience, or certificates they have, that might not be recognized in this country,” said Butler. He said that a lot of their clients ran small businesses in their home country before they immigrated.

AnewAmerica is based in Berkeley but has offices in Oakland, in San Jose and in Richmond. Thursday evening was the first time they had graduated students from their Richmond program that opened in 2008. CEO and Founder Sylvia Rosales-Fike said in an interview after the graduation ceremony, that the effort for a Richmond program was initiated by alum Leonor Garcia, who recognized a need for a micro-business training program in the city.

Created in 1999, AnewAmerica does outreach to the nine Bay Area counties, and have clients from over 55 countries and six continents. According to Butler, the largest groups of people are from Latin America and South East Asia, followed by Africa, and then Europe.

On November 19, the program will celebrate its tenth anniversary at Oakland’s Scottish Rite Center, with a “Gala and Exposition” in which AnewAmerica clients will sell merchandise including custom made jewelry, pottery, and food.

When Rosales-Fike spoke at the graduation ceremony, she said the graduating class represented Mexico, Iran, the Philippines, Columbia, Nepal, Guatemala, Nicuragua, El Salvador, Germany, South Korea, Ethiopia, India, and Ecuador. “These are the new Americans of our society,” Rosales-Fike said. “These are entrepreneurs who are contributing to our economy and enriching our country.”

AnewAmerica’s clients have typically lived in the U.S. for at least five years. The organization said that they don’t inquire about their client’s citizenship but are looking for people who will participate for the entire three-years, and are committed to starting a business in the Bay Area.

Rosales-Fike said that what makes AnewAmerica different from other micro-business training programs is their emphasis on social responsibility. One main piece of AnewAmerica’s curriculum guides clients toward opening socially and environmentally responsible businesses. Examples of these include a frozen yogurt shop with locally produced yogurt, a pre-school/day-care program with an organic garden, and an environmentally friendly cleaning service.

AnewAmerica launched a Green Business Certificate program in 2008. The program trains clients to open environmentally friendly businesses and work toward meeting the Bay Area Green Business Program’s standards that are recognized by the state, and include pollution prevention, resource conservation, and waste minimization.

Some clients sell environmentally friendly products or reduce their business operation’s negative environmental impacts. Others choose to donate a percentage of their profits to a local charity or take leadership positions in their communities like advocating for immigrant or labor rights.

In addition to her perfume business Terriquez started a clothing business called Eco-Fashion, to provide single mothers and victims of domestic violence with jobs. She put an ad out in a Spanish newspaper and recruited Spanish-speaking immigrant women with sewing and crochet skills. Her purpose was to create sources of income for women who would not be able to find work elsewhere.

“They gave me the support and security to start my own business,” Terriquez said of AnewAmerica with her newly granted diploma and a bouquet of flowers and balloons, that her family gave her, at her side. “They also taught me how to give back to the community.”

Frontier Shareholders Approve $8.5 Billion Acquisition Of Verizon Wire Line Business

Frontier Communications shareholders have voted to approve the company’s acquisition of Verizon’s local exchange businesses in 14 states, as well as certain related customer relationships.

Shareholders also voted to increase the number of authorized shares of Frontier common stock.

Various state regulators still need to ok the deal, but Frontier is confident the deal will be closed during the second quarter of 2010.

In May, Frontier offered Verizon $8.5 billion in stock to buy 4.8 million access lines in the 14 states. Frontier yesterday said it will issue shares to Verizon stockholders equal to $5.2 billion, and Verizon will receive $3.3 billion in the form of a special cash payment to boot.

The Communications Workers of America has come out in strong opposition to the impending deal. The union claims the buyer will end up being short on cash and that it is too small to integrate Verizon’s systems efficiently.

Frontier Communications is a provider of communication services to rural areas and small and medium-sized towns and cities. The access lines it is aiming to purchase from Verizon are located in Arizona, California, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, Wisconsin, and West Virginia.

Obama Prods Large Banks to Lend to Small Business

Who bailed out the big banks, the so-called "too big to fail" banks, to the tune of over $700 billion? The American taxpayer including small business. What do small businesses get in return? Refusals of their applications for loans!

This week, President Obama is urging the large banks to pick up their lending to small businesses for this very reason. We helped them. It's time for them to help us. It was reported yesterday that the five largest U.S. bank holding companies hold 45 percent of all bank assets in the U.S., which is twice what they held 20 years ago. However, they hold more derivatives in their portfolios than business loans.

According to the same article, which quotes a survey by The Banker, business lending has dropped by a whopping 48 percent since last year. As of October 7, less than one-third of the stimulus money made available for the Small Business Administration's new ARC loans has been used because the large banks won't make the loans.

Obama said in his Saturday radio address that the administration will take every appropriate step to prod the large banks to increase their lending to small businesses. Obviously, the administration is aware that any economic recovery cannot happen without the participation of small business and small business can't participate unless they have access to credit.

Positive Money Ideas

I have compiled ideas and concepts that people have used to generate income either as a part-time activity or as a full scale business. Some may seem very ordinary, some a little offbeat - but every one of our ideas to make money can be developed into a successful home based business or small business! These home business ideas and small business opportunities are realistic and practical, waiting for the someone like YOU to make money at home with them!

Art/Design :
Artist (Draw Art)
Color Consultant

Automobile :
Antique Car Rental
Car Maintenance Classes
Business
Used Business Equipment
Business Incorporation Service

Childcare :
Mall Creche
Kid Hotel
Communication
Training Video Producer
Freelance Copywriter

Computers :
Electronic Scrapbook
Ink Cartridge Refilling
Education
Education Finance Consultant
Home Schooling Consultant

Employment :
Temp Employment Agency
Sports Recruiter / Scout
Entertainment
Bionic Animal Rides
Story Teller

Environment :
Flower Planting Kits
Prosperity Plants
Financial
Retirement Financial Consultant
Venture Capitalist

Food :
Sandwich Bar
Steamboat / Hot-Pot Diner
Healthcare
Personal Menu Service
Personal Weight Loss Consultant

Home Improvement :
Custom Storage Cabinets
Power Cleaning
Internet
Cafepress Store
Kontera

Personal/Public Services :
Costume Making and Rental
Lactation Consultant
Pets
Home Made Dog Treats
Boarding Kennels

Real Estate :
Vacation Rentals Broker
Mortgage Portal
Real Estate
Vacation Rentals Broker
Mortgage Portal

Recreation :
Inflatable Bouncers
Portable Pool Rental
Transportation
Motorbike Maintenance Classes
Disco Taxi

Wholesale/Retail :
Beekeeping
Specialty Book Store

Top Ten Do's and Don'ts

• TOP TEN DO'S

1. Prepare a complete business plan for any business you are considering.
2. Use the business plan templates furnished in each session.
3. Complete sections of your business plan as you proceed through the course.
4. Research (use search engines) to find business plans that are available on the Internet.
5. Package your business plan in an attractive kit as a selling tool.
6. Submit your business plan to experts in your intended business for their advice.
7. Spell out your strategies on how you intend to handle adversities.
8. Spell out the strengths and weaknesses of your management team.
9. Include a monthly one-year cash flow projection.
10. Freely and frequently modify your business plans to account for changing conditions.

• TOP TEN DON'TS

1. Be optimistic (on the high side) in estimating future sales.
2. Be optimistic (on the low side) in estimating future costs.
3. Disregard or discount weaknesses in your plan. Spell them out.
4. Stress long-term projections. Better to focus on projections for your first year.
5. Depend entirely on the uniqueness of your business or the success of an invention.
6. Project yourself as someone you're not. Be brutally realistic.
7. Be everything to everybody. Highly focused specialists usually do best.
8. Proceed without adequate financial and accounting know-how.
9. Base your business plan on a wonderful concept. Test it first.
10. Skip the step of preparing a business plan before starting.

BUSINESS PLAN

The primary value of your business plan will be to create a written outline that evaluates all aspects of the economic viability of your business venture including a description and analysis of your business prospects.

Keep in mind that creating a business plan is an essential step for any prudent entrepreneur to take, regardless of the size of the business. This step is too often skipped, but we have made it easy for you by providing this ready format to build your plan as you progress through this course.

Business plans can vary enormously. Libraries and bookstores have books devoted to business plan formats. This course is a starting point. You can then go on to design one that would be ideal for your particular enterprise.

Be aware now that most start-up entrepreneurs are reluctant to write down their business plan. It is, therefore, strongly recommended that you complete each segment of the plan as you progress through this course. We make it easy for you by providing sample plans for both product and service businesses and also an attractive blank form that you can download onto MS Word and customize yourself.

Your business plan will become your roadmap to chart the course of your business. But at the outset you cannot predict all of changing conditions that will surface. So after you have opened for business, it is important that you periodically review and update you plan.


A. Why Prepare A Business Plan?

Your business plan is going to be useful in a number of ways

* First and foremost, it will define and focus your objective using appropriate information and analysis.

* You can use it as a selling tool in dealing with important relationships including your lenders, investors and banks.

* Your business plan can uncover omissions and/or weaknesses in your planning process.

* You can use the plan to solicit opinions and advice from people, including those in your intended field of business, who will freely give you invaluable advice. Too often, entrepreneurs forge ahead ("My Way!") without the benefit of input from experts who could save them a great deal of wear and tear. "My Way" is a great song, but in practice can result in unnecessary hardships.

To help get started in lining up appointments. Names include your investors, family members, banker, lawyer, attorney, business mentors, trusted business friends, potential customers, competitors (distant ones), potential landlords, and the U.S. Small Business Administration.


B. What to Avoid in Your Business Plan

Place some reasonable limits on long-term, future projections. (Long-term means over one year.) Better to stick with short-term objectives and modify the plan as your business progresses. Too often, long-range planning becomes meaningless because the reality of your business can be different from your initial concept.

Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital requirements, timelines, sales and profits. Few business plans correctly anticipate how much money and time will be required.

Do not ignore spelling out what your strategies will be in the event of business adversities.

Use simple language in explaining the issues. Make it easy to read and understand.

Don't depend entirely on the uniqueness of your business or even a patented invention. Success comes to those who start businesses with great economics and not necessarily great inventions.