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Passing the Association Health Plan Bill
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Archives › March 2004
March 31, 2004
Before You Start a Consulting Business...
Posted by Carole Matthews at 2:05 PM
Inc. reader Ken Fredeen shared his thoughts on what to consider when starting a consulting business in the Sound Off! area of the April 2004 article, "Brains For Hire." From his experience as the principal/owner of NeuTech Consulting, a strategy consulting practice based in Monroe, Conn., Fredeen offers four areas that prospective new consultants should have covered before hanging out the "open-for-business" sign.
- You have one or two immediate clients.
- You have a well-respected reputation in your industry.
- You have strong self-promotion and selling skills.
- There is an eaily identifiable, pent-up demand for your service, and you are uniquely qualified to deliver it. (You must be absolutely realistic about this, not just hope that the demand is there.)
If you're strong in only some of these areas, you have a pretty good chance of success, according to Fredeen, but if none of these bases are covered, then you should reconsider going into business for yourself.
Today's news
Passing the Association Health Plan Bill
Posted by Carole Matthews at 12:47 PM
On Thursday, April 1, 2004, U.S. Senator Olympia J. Snowe (R-Maine), Chair of the Senate Committee on Small Business and Entrepreneur-ship, will participate in a press conference with Jack Faris, President, of the National Federation of Independent Business (NFIB) to unveil a nationwide campaign to get Association Health Plans (AHPs) passed by the Senate and signed by President Bush.
Snowe is the sponsor of S.545, "The Small Business Health Fairness Act," a bill she introduced to create national AHPs.
Useful MSOffice Tricks
Posted by Carole Matthews at 11:10 AM
The Office Letter sent out weekly to subscribers by Smallbizpipeline.com lets users in on different tips, tricks and shortcuts to using various MS Office products. Here are three of this week's five tips from the newsletter:
To see all styles in Word 97, 2000, 2002: In the Styles list, Word doesn't display all of the options, just the built-in styles. To see all Styles, hold down the Shift key when clicking the down-pointing arrow.
Cut/copy/paste alternatives: You're probably familiar with the Ctl+X, Ctrl+C, and Ctrl+V options, but did you know (shortcuts below work with Office 97 and above):
- Cut: Shift+Delete
- Copy: Ctrl+Insert
- Paste: Shift+Insert
To view open documents: Using the Window command allows you to move between documents of the same type. You also can press Ctrl+F6 to view the documents in this list. Press Ctrl+F6 multiple times and you will eventually return to the current document. To cycle through the list in reverse order, use Ctrl+Shift+F6. (This works in Word, Excel, and PowerPoint 97 and above.)
March 30, 2004
Technology
Are You Ready for VoIP?
Posted by Carole Matthews at 4:05 PM
A fair amount has been written about the advantages and disadvantages of voice over Internet protocol (VoIP) or telephoning over the Internet. Anne Stuart covered the topic in a March 2003 Inc. article, Good Call, Robert X. Cringely visited the topic in his What's Next colum Internet Phone Service is Here in October 2003, and even more recently, Brian Clark touched upon VoIP's shortcomings in his March 2004 article, The Best Bang for Your Tech Buck.
The technology has been widely covered since 1998, as Matt Villano of CIO magazine notes in his March 15 article, IT Phone Home, but how come no one can agree whether it's come of age or it's still a technology in waiting? The three businesses profiled in Villano's story have all implemented VoIP, admittedly not without a few hassles, but each has found success in its use to help cut costs and connect distant employees and offices. And other writers mentioned above have offered similar praises from companies, but Clark casts a shadow on the advantages by highlighting security, bandwidth, and compatibility issues, among others.
So my question is, is it good or is it bad? Is VoIP all that the vendors, and businesses using it, crack it up to be? Or is it a technology that needs a few more wrinkles ironed out before small businesses chuck their old analog systems?
March 29, 2004
Is Pay or Happiness More Important to Employees?
Posted by Carole Matthews at 10:10 AM
Fresh Inc. reader JHB, the president of a manufacturing business, recently read an article titled "Hiring Push Could Test Loyalty," in an "Executive Memo" from the Illinois Manufacturers' Association. The article highlighted some interesting statistics regarding why employees plan to leave their current jobs.
Of those who plan to leave:
71% plan to leave for more money.
58% plan to leave for more opportunity/money.
30% plan to leave for a different management team.
According to JHB, the first one in particular is surprising and is contrary to what most consultants and experts state in numerous articles -- that keeping workers happy is more important to them than money.
JHB is wondering what real businesspeople are thinking. Is pay a primary issue at your workplace, or are "touchy-feely," "warm & fuzzy" things really more important? It can't be both... money and the "warm & fuzzies." What have you experienced?
March 26, 2004
This week from the Donald's world: Sex, Lies and 10-year-old tycoons?
Posted by Darren Dahl at 11:59 AM
Greetings all. My name is Darren, and I'm filling in this week for Nadine, who's down in Miami for the Inc. 500 conference.
Last night's episode was my favorite of the season. It had all the elements than any story needs to become a straight-to-DVD blockbuster: oodles of conflict and disparaging remarks, a romance under fire, underdogs toppling the unbeaten female Goliath and even a shot of the wind-swept Donald defending the legitimacy of his hair. A classic.
First off, nobody is going to miss Katrina. Easy on the eyes? Yes. Tough on the ears? Good God yes! She did put up a valiant struggle in the boardroom--unveiling the Amy-Nick romance was genius--but she is no more. This sets up an intriguing conflict of four men against the now battle-scarred Amy, who showed off a world-class scowl after her "Fall at the Taj Mahal."
First off, I think Troy, or T-Roy as Kwame crowned him, has stepped closer to the edge of unemployment. He's clearly an unnaturally happy fellow: the polar opposite to Trump's icicle-like lieutenants. The swagger T-Roy showed after besting Heidi in the boardroom rubbed me the wrong way. I was howling when the 10-year-old tiger tycoon trounced him, "Troy - don't sell something that's already been sold." There's no comeback for that!
On the other hand, T-Roy and Kwame have struck up quite the friendship: at least they certainly enjoy shaking each other's hands. (I counted nine connecting-of-the-palms last night.)
The outtake of Kwame sitting on the AC boardwalk discussing his management style, which I think could be termed "lazy-unfair," was sensational. How this guy remains on the show continues to baffle me. I think the others keep him around merely so they don't have to heft themselves out of bed to answer the daily a.m. phone call from the Donald's assistant.
When the dynamic duo chose Bill, they clearly pleased the Donald. The look of horror on Bill's face was priceless: He's tired of T-Roy's antics too. But, Bill unveiled a few inner demons of his own last night. Although he has shown himself to be a master strategist and a title contender, at least according to Amy's boardroom revelation, I think he might be a bit sexist. He certainly didn't react well to a bit of blonde competition at the VIP desk. Let's see if this shakes out with Amy and her use of her "womanly charms" over the last two weeks.
As far as Nick's blonde ambitions, I think he's setting himself up for disaster with Amy. He clearly enjoyed the moment when she sent him up to the suite instead of Katrina, but this moment will be fleeting. Now that the Donald has called Amy out over her "boyfriend," Nick had better watch his back. Based on what we got a peak at for next week: We have a lot to look forward to!
March 25, 2004
Out of Business
Posted by Carole Matthews at 2:17 PM
According to the Small Business Administration, about 34% of business with fewer than 500 employees close within two years of opening, and 50% fold after four years. Here, New York Times writer Laura Randall tells the stories of some small-business owners who have become part of those statistics in Lessons Learned the Hardest Way, by Going Belly-Up (registration required). Their stories provide lessons in business that could be valuable to any company's survival.
Small Businesses Have Security Under Control
Posted by Carole Matthews at 12:30 PM
According to the recent March Small Business Pipeline reader survey, many small businesses were spared significant business impact from the recent MyDoom virus and don't seem to be too worried about security in the coming year.
Of the 227 companies with fewer than 100 employees that were surveyed, more than 90% said MyDoom had minimal or none at all on their companies, and only 42% of respondents said their top security concern was preventing malicious attacks from viruses and worms in 2004.
Is security a top issue for your business in 2004? Or are other IT investments like PCs, servers, and networking topping your list?
When a CEO is the Brand
Posted by Carole Matthews at 10:54 AM
Martha Stewart's recent conviction has Wharton professors debating the merits of personal branding in "When the CEO is the Brand, But Falls from Grace, What's Next?" While marketing experts at Wharton agree that making a celebrity of the owner is a good thing for a business, they stress the importance of putting certain safeguards in place to help prepare for the unexpected.
According to Wharton professors, companies should have other talent in place who can step in if the "appealing public personality" can no longer be in the spotlight. For instance, when Gianni Versace died in July 1997, his sister Donatella easily was able to step in to take up the reins since Gianni's team of designers had been developing much of the brand's new designs. Similarly, Ralph Lauren and Michael Dell, who have both built strong companies on their images, have created "separate, institutional identities" outside of their public personas that make their brands less vulnerable.
Nonetheless, celebrity obsession is a trend that could be on its way out, according to David J. Reibstein, a Wharton marketing professor. "Right now we're in an era of celebrity, where we allow paid stars to validate our products," he says. "Slowly, however, we're moving away from that and are beginning to instead seek independent, third party confirmation of our choices. But then again, it's amazing what some consumers will buy into. Some simply want to be able to associate their buying decisions with a name that they can read about in the media."
March 24, 2004
George W. Bush and Small Business
Posted by Carole Matthews at 3:57 PM
Inc.com reader Derek Lester recently had a few things to say about our coverage of the Bush Administration and its recent SBA budget cuts. Specifically, Mr. Lester took issue with a few stories we've recently run regarding this topic: Rhonda Abrams' column, "All Hat, No Cattle"; a story by Bobbie Gossage and Elizabeth Wasserman in the March issue of Inc, "SBA Slams Door on Borrowers"; and a recent Fresh Inc. post "SBA Leader Defends Slimmer Agency."
Here, Mr. Lester shares his viewpoint:
Your comments regarding George Bush & SBA's position concerning an apparent lack of support for small business is fatally flawed, and irresponsible journalism (or is it editorialism?). Focusing solely on loan guarantees and the SBA budget as your basis for your articles' assertions is flawed because you ignore the other, more significant money being credited back to small-business owners. Take for instance the $9.7 billion coming back to small-business owners in tax reductions, or increasing the expensing four times to $100K.
You also are critical about the SBA cutting off 7(a) loan guarantees when in fact the SBA doesn't have the funds available since Congress has not appropriated necessary funds due to budget bill disputes. This is an outstanding example of government being run like a good business; you don't spend what you don't have.
Take a look at this SBA link to get the real facts about what this administration is truly doing to support small businesses and then tell the whole story. Upon initial review, it would seem you have an agenda you're actioning with reporting this partially skewed version of facts...how ironic quotes from Sen. Kerry are cited in your [SBA Slams Door on Borrowers]. So please, list exactly what he is doing to help small businesses as he spends a year on the road campaigning. What is his business experience compared to that of the SBA director or even with the President? Has he put his budget plan forward for review?
What are your thoughts about the Bush Administration and its support, or lack of support, for small businesses? Let us know.
Summertime Energy Savings
Posted by Carole Matthews at 10:20 AM
Summertime is right around the corner, and the Mechanical Contractors Association has recently released its recommendations for helping reduce your office energy bills during the hot months.
Here are several suggestions:
Check insulations levels. Insulation keeps the heat out during the summer months, so be sure that attics, crawl spaces, floors, exterior and basement walls are properly insulated.
Check for drafts. Holes and cracks around doors, windows, switches, and outlets, and in ceilings and walls, can let summer heat leak in. Caulk or use weather stripping to combat the problem.
Close those shutters! The U.S. Dept. of Energy estimates 40% of unwanted heat enters buildings through windows. Use shutters, awnings, curtains and shades to keep the sun out.
Buy energy efficient appliances and office equipment. If you're replacing equipment this summer, be sure to compare energy consumption before you purchase.
Turn off the lights. (It's not true that turning lights on and off eats up more energy.) And turn off office equipment when during non-business hours. Leave minimal lighting on during non-business hours for safety.
Keep thermostats at 78 degrees. And install programmable thermostats that will adjust the temperature automatically.
Inspect and clean air conditioner's indoor and outdoor coils. And have a qualified contractor check refrigerant levels.
March 23, 2004
JetBlue's Buzz Factor
Posted by Carole Matthews at 11:51 AM
JetBlue, the relatively new discount airline, has earned a passionate following that sets them apart from other low-cost carriers, writes Marci Alboher Nusbaum in a New York Times Business Travel column today. Besides the usual cost-conscious travelers, the company also has managed to capture the hearts of many upscale business fliers, as well. With new planes, reliable service, enthusiastic employees, leather seats, inflight DirectTV, and more, the airline gives premium service at an affordable price.
Norm Brodsky wrote in his March 2004 column "Learning from JetBlue," that the airline's customer service also is top notch. On a flight from NYC to Calif., Brodsky even encountered the airline's founder and chief executive, David G. Neeleman. Neeleman wasn't there for a perfunctory meet and greet; he was there to find out how he could make the airline better for his customers. Neeleman worked his way through the cabin, talking to as many travelers as time allowed, to discover what they liked and didn't like about traveling on JetBlue. Now that's customer service.
Design Eye for the StartUp Guy Contest
Posted by Carole Matthews at 10:45 AM
Now you're probably thinking that you have no idea how to design a book cover, let alone any design skills, but who knows, this could be your big chance to explore you artistic side. Guy Kawasaki's upcoming book, The Art of the Start, needs a cover design, and he's running a contest with iStockphoto.com and BitPass to find the perfect "face" for it.
His hands-on, down-to-earth book provides actionable advice for start-up entrepreneurs; individuals in companies trying to bring new products to market; and people starting schools, churches, and not-for-profits. The book covers major topics like branding, fundraising, bootstrapping, recruiting, and pitching investors -- all of the information someone needs to know when starting something. (And, basically, a lot of the things you already know about as an Inc. reader.)
Contestants must use iStockPhoto.com images or shoot their own if they design the cover with a photo. Also, there's a $1 entry fee payable through BitPass, a digital content payment system. The winner will receive a Canon EOS Digital Rebel with lens, an autographed copy of the book, and 250 credits towards images on iStockPhoto.com. See full details about the contest and submit entries at iStockPhoto.com.
March 22, 2004
Retirees No More
Posted by Carole Matthews at 1:51 PM
A study by AARP released on March 18 revealed that a growing share of older workers are starting their own businesses. Reported in "More Retirees Start Their Own Businesses" in The Wall Street Journal (registration required), 50-plus workers accounted for 40% of all workers in business for themselves. According to AARP, the number has been slowly climbing for several years. The organization expects the trend to continue after a Summer 2003 poll revealed that more people plan to work into their 70s and that 16% planned to work for themselves.
What the article didn't mention, but what is mentioned in the actual study are the reasons why retirees are starting businesses. AARP calls the reasons "push" and "pull" factors, and a couple of those reasons include being "pushed" out of wage and salary positions and being "pulled" into entrepreneurship because of greater personal wealth and more education that helps incline them to becoming self-employed.
Are you a recent retiree who's started a business? What was your push or pull factor?
March 19, 2004
Conferences
Be a Conference Commando
Posted by Keith Ferrazzi at 6:15 PM
As the big Inc. 500 conference is upcoming, wanted to suggest a few points to consider that make your investment pay off. By the way, come by one of my two sessions (Thursday night for sure) for my session and learn a boatload more.
Here you go:
You may not be a speaker, but speak up in Q&A and make your thoughts heard. Don't just blend in. Stand out with good thinking.
Come well prepared by knowing who you want to meet at the conference IN ADVANCE and be in touch with them before or just as you get there to set up your own meetings. You can even pull a group together at break time for a small agenda of your own. Organize a min-conference within a conference of your own.
Draft off a Big Kahuna. By that, recognize who the big guys are at the conference that everyone knows and get to know them. I guarantee if you are around the big guys, the important people will rotate by them sooner or later and you'll meet everyone who matters.
Be an info-hub. If you know everything about the event and the ins and outs of all the private fun stuff, eventually everyone will come to you for the skinny.
Master the Deep Bump. The point here is balance between meeting as many people as possible and making as deep an impact with each one you meet. Think Clinton. Everyone he meets feels like they know him intimately.
Breaks are not time to take a break. It's at the breaks that you'll meet everyone. Hey, get a blackberry so you can do e-mail during the sessions don't run back to your room AFTER the session. MEET PEOPLE during the breaks!
Then follow up, IMMEDIATELY. The key here is don't collect cards and wait till later when you get home. Each night, shoot out your follow up e-mails, or you'll forget later.
Don't be this guy: the Celebrity Hound; the Smarmy Eye Darter; the Pure Card Amasser. You get the point, don't you?
SEE YOU THERE!
The Apprentice
The Donald-Recap Episode
Posted by Nadine Heintz at 12:31 PM
I felt pretty cheated when I found out that last night's episode was a recap. But they added enough new material to make it worthwhile. I enjoyed getting the Donald's take on what's happened so far. I also loved the behind-the-behind-the-scenes footage of Omarosa going to the hospital and hiring a doctor to come in. The best part was when that lady told her to take a couple Advil! She obviously didn't think the bump was a big deal. If it was a concussion, she probably would have been more concerned. That said, my only knowledge of concussions comes from that Eight is Enough episode where Abby fell off a ladder and the kids had to tell her stories all night so she wouldn't fall asleep and go into a coma. So who am I to say whether Omarosa was really hurt? But the Donald didn't seem to think so!
I was also shocked when they recapped that scene where Omarosa tells Amy everyone's been talking about her behind her back. When I first saw that, in the original episode, I didn't realize Omarosa was lying. But after seeing it again last night, my opinion of her sank even further. Another new moment I enjoyed seeing was the dinner Bill and Nick had before they went to the boardroom with Erika. I wasn't sure how much strategizing people were doing in private, so that was interesting. Their plan to gang up on her certainly worked like a charm.
Things are really going to heat up over the next few weeks, judging from last night's previews. The Donald's going to find out about Nick and Amy's budding romance. I can't wait for that! And apparently Katrina and Amy are going to have it out. Didn't see that coming. Hmmm.
So the Donald held tryouts for the Apprentice 2 on Wall Street yesterday. Apparently people had camped out in the freezing cold the night before to get a chance to interview for the show. Unbelievable! Also, I heard that the Donald is trying to trademark the term "You're fired." I knew that was coming. He is the Donald, after all!
March 18, 2004
SBA Leader Defends Slimmer Agency
Posted by Carole Matthews at 4:23 PM
The Bush administrations proposal to cut $119 million from the SBA's 2005 fiscal year budget doesn't seem to upset the SBA's leader, Hector V. Barreto, as Elizabeth Olson writes in a recent New York Times News Service article. Barreto defended the administration's proposal saying that revisions in the SBA's most popular loan program will eliminate the need for $100 million, and a proposed 30% increase in the overall loan amount the agency can guarantee "will provide more businesses with the capital needed to start up and expand.'' Barreto's optimism doesn't quell some critics' fears that the administration's proposal is a smoke screen for its real intentions -- to dismantle the agency all together -- which Barreto brushes off as nonsense.
You really can't blame critics for expecting the worst. Just in January, as Bobbie Gossage and Elizabeth Wasserman recently reported in SBA Slams Door on Borrowers, the SBA put its most popular loan program, the 7(a), on indefinite holiday, leaving many capital-strapped business owners out in the cold. And all of these proposed cuts and "holidays" while President Bush repeatedly reassures small businesses that he sees them as the primary creator of jobs in the nation.
During this election year, it's certainly too bad that no one has reminded him that actions speak louder than words.
AARP for GenY
Posted by Carole Matthews at 11:12 AM
Smallplanet.net, a newcomer to the social networking scene online, hopes to make money by letting marketers promote their products and services to its young, professional members. In a ClickZ column today, Janis Mara explains the CEO's strategy, and how it differs from other online social networking sites.
For the most part, many networking sites like Friendster and Myspace.com sell advertising space to help boost profits. L.A.-based SmallPlanet.net plans to profit by letting marketers offer Smallplanet members discounts on goods and services, according to CEO Hunter Heaney. The invitation-only site will encourage members to vote on the products and services they need, and the company will then seek marketers wishing to reach its 18- to 35-year-old demographic.
March 17, 2004
Technology
Most and Least Popular Net Activities
Posted by Carole Matthews at 10:56 AM
Using the Internet for e-mail made the top of the list in a recent Harris Interactive poll, as reported by Robyn Greenspan for Clickz.com yesterday. On the bottom of the list, according to the Dec. 2003 survey: VoIP or phoning over the Web and participation in chat rooms. Only 5% of those surveyed often or very often participated in chat rooms as compared to 6% in Dec. 2000, and a mere 3% made calls via the Web often or very often.
VoIP is a relatively new technology, so it's not surprising that it hasn't caught on yet. (Anne Stuart explored the advantages and disadvantages of VoIP for businesses in the March 2003 article, "Good Call," and Brian Clark recently discussed its shortcomings in a March 2004 "The Best Bang for Your Tech Buck.") What is surprising, however, is that activities like travel planning and reservations, bill paying, and searching for jobs, which have been around for quite a while, are struggling to gain more users.
More anonymous activities like exploring new sites; conducting research for school or work; and gathering information on products and services are more likely to be performed by the users surveyed in the Harris Interactive poll.
March 16, 2004
Silicon.com Neuters Web Copycat
Posted by Carole Matthews at 9:37 AM
In a March 9, 2004, story, Silicon.com exposed a website, 'Car or Car,' that was ripping off the design, content, and IP of the website, Car Enthusiast, owned by Shane O'Donoghue. The rival website used the lifted contents of O'Donoghue's site to sell advertising against it.
Today, Silicon.com reports it's neutered the Web copycat by contacting the site's sole advertiser, Webclients, which has agreed to withhold all payment to 'Car or Car.' Silicon.com also contacted on O'Donoghue's behalf the hosts and administrators of the copycat site, based in Taiwan and Australia repsectively, to inform them of their parts in supporting the bogus webiste.
March 15, 2004
Today's news
Martha Quits
Posted by Carole Matthews at 1:22 PM
Martha Stewart has resigned from the board of Martha Stewart Omnimedia and has also given up the positions of director and chief creative officer, a CNNMoney story reports today. She will, however, retain the role of "founding editorial director."
It's a disappointing turn of events for Martha, whose March 5 conviction has sent MSO stock plummetting and has put the spotlight on the credibility of her namesake brand and its ability to weather the storm. One Fresh Inc. reader who posted today thinks that despite what stock analysts are saying, the quality of her products and the style she's brought to domesticity won't kill the "lure of Martha. "
And it's hard to deny that there is a lure. Linda Tischler, senior writer at Fast Company eluded to such a lure in her recent FCNow blog post. Despite the "czarina of domesticity's" lack of warmth during an interview years ago, Tischler still admires her for having created, single-handedly, "one of the most compelling and powerful brands of the last several decades." And, Tischler admits, that Martha is still the only CEO whose recipe for ginger scones she cherishes. You can't say that about too many company leaders, can you?
Technology
Linux vs. Windows
Posted by Carole Matthews at 11:12 AM
Back in the June 2000 issue of Inc. magazine, writer Dan Orzech contemplated the advantages and disadvantages of Linux for small businesses in "Bidding for Linux." His final note: though the free open-source operating system is touted to be cheaper and very reliable, small businesses shouldn't be too quick to jump on the Linux bandwagon. Four years later, there's still much debate about Linux becoming a competitive alternative to Windows-run machines.
Many issues remain when considering Linux to help run a business. For one, as writer Brian Clark notes in his March 2004 Inc. article, "The Best Bang for Your Tech Buck," it's not really "free." Licensing fees, though less than Microsoft's, do exist, and "every company selling it has their own idea of what the desktop should be -- there's no standardization." Beyond that, trying to get Office products to work within a Linux environment was difficult when Clark attempted it. And it doesn't seem it will get to much easier, as Microsoft won't be developing any MS Office Products for Linux anytime soon.
Also, there's been some argument that Linux is a more secure operating system than Windows. But as writer Michael S. Mimoso and Jyrki Tulokas, corporate business manager of F-Secure discuss in a March 11, 2004, article, Mainstream Means More Malicious Code, it's only a matter of time before more viruses affect Linux. Today, notes Tulokas, most viruses are written for Windows because that's what people are using, and spammers can get maximum effect using the system of choice. But as more companies install Linux to run, say, CRM and Web applications, it's only a matter of time before viruses and malicious code is written to take down a business's e-commerce capability.
Obviously, the debate is far from over. Linux has a strong following, as the proliferation of Linux dedicated websites illustrates, but will it ever replace Windows as the operating system of choice? And do you use Linux in your business? What kind of luck have you had?
March 12, 2004
The Apprentice
The Donald-Episode 10
Posted by Nadine Heintz at 1:27 PM
Okay. I just got back from the boardroom. Luckily I wasn't fired. I kind of miss Omarosa. But I guess I'll get over it. I liked Heidi, but I never thought she'd make it to the end. I think she was too brash to be a good leader. Too rough around the edges. And last night, she just seemed to give up. She obviously wanted to spend more time with her mom, which was totally understandable. Here heart just didn't seem to be in the game anymore. I sure hope her mom recovers quickly. Poor Heidi.
Next on my list is Katrina. She must go. She's very annoying. Very petty. That said, she did have a good point last night when she blasted Bill for treating her like a dummy who's only value is her looks. But it would have been more effective if she had brought that up right away in the meeting, not later on. Troy tried last night, but his idea was kind of lame. I don't know any New Yorkers who regularly take pedi-cabs, and tourists probably wouldn't take ten trips on one. But at least Troy tried, unlike Kwame, who was useless as usual. Maybe he would have gotten more customers if HE had worn a tank top on th pedicab! What amazes me is that Kwame has survived this long, even though he's in the boardroom practically every week!
The other team's advertsing idea was brilliant. But there was a bad vibe. First of all, the flirtation between Nick and Amy is weird. I don't like the idea that they're playing games with each other in order to win the apprenticeship. That's creepy. And Bill didn't demonstrate good leadership with Katrina. He alienated her and she responded by shutting down. Not good. Also, why the heck did Nick give the restaurant guy all of his money back even though the guy got a morning's worth of advertising? He should have just given him half. But I guess it didn't matter in the end.
As usual, Caroline was great. She's so direct. I love it. Don't mess with her. I believe the NYC tryouts for the season two are taking place next week, so I'll probably pop in and see what it's like. Stay tuned!
March 11, 2004
Inc. on TV!
Posted by Carole Matthews at 5:06 PM
Inc. reporter Rod Kurtz will be appearing on Bloomberg Small Business this Saturday and Sunday morning starting at 6 AM to discuss Inc.'s "Top 25 Cities to Do Business." If you're not an early bird, don't worry. The show repeats every hour to two hours most of Saturday and Sunday AM, so you won't need to miss sleeping in.
Today's news
Economic Development Zones Under Fire?
Posted by Carole Matthews at 12:27 PM
A recent state audit reported that eight business zones in New York state aimed at helping economically distressed areas weren't creating as many jobs as expected. Staff writer James Bernstein of Newsday goes on to say that the report, which took sharp aim at New York's Empire Zone economic development program, cites inadequate records, poor administration and a lack of holding firms who receive tax breaks accountable for producing jobs as reasons for the poor performance. Business receiving tax breaks were expected to produce 521 jobs in their respective zones, yet only produced 319.
Seems more and more state governments are paying closer attention to tax breaks given to businesses in economic development zones lately. Just recently, Governor Carcieri of RI proposed axing many tax breaks for businesses in economic development zones because they weren't producing any significant returns for the state.
Why all the scrutiny? The economy of the last few years hasn't been especially business friendly. A slow-to-recover economy has produced more layoffs than sales in many businesses, not just those in the "zones." Perhaps state governments should look at the bigger picture of what has resulted because businesses have moved into these areas.
Neil Pierce of the National Academy of Public Administration outlined some of the hopes of inner cities -- where many ecnomic development zones are established -- in a 2001 column. While job growth from 1995 to 2001 was just 1% in inner cities compared to 2% nationally, Pierce suggests that the positive aspects of revitalizing the areas provides broader benefits, including those noted by famed Harvard urbanologist William Julius Wilson.
The higher the ratio of inner city income to suburban incomes, he noted, the stronger the economy of the entire metro region. "In the global economy, firms choose regions. The health of the inner city is a key factor in their decisions."
Perhaps states should look beyond performance ratings and consider the overall economic and societal implications of targeting economic development zones.
March 10, 2004
Aligning Sales Management with Profitability
Posted by Carole Matthews at 11:41 AM
Many top managers are frustrated with the disconnect between the sales process and corporate objectives, writes Jonathan Byrnes in his March The Bottom Line column for HBS's Working Knowledge. Why the disconnect? The process of transforming management's goals into sales breaks down for numerous reasons including lack of clarity about objectives, vagueness in communicating objectives, and failure to align compensation with objectives among other reasons.
How can does a company reconnect the two camps? Byrnes and co-author Paul Bergeron suggest a five-step remedy. (Here's the gist of what they've outlined in the article):
Understand profitability. Sales often doesn't maximize a company's profitability because top managers seldom have a clear grasp on the "company's key profitability drivers."
Translate into business objectives. Create a business plan that addresses how your company intends to maximize profit on a day-to-day basis.
Communicate the objectives. Direct communication results in two things: top managers become better educated on the nuances of what drives profitability in a business, and it shows the sales force that top managers are committed to accomplishing the objectives.
Translate into a compensation plan. Create specific objectives that can guide the sales force every day, and then tie compensation to its accomplishing the goals.
Create individual sales plans.
March 9, 2004
The Golden Rules of Customer Feedback
Posted by Carole Matthews at 6:03 PM
Ben McConnell and Jackie Huba, authors of Creating Customer Evangelists share The 10 Golden Rules of Customer Feedback in a recent column for Marketingprofs.com. They start the article off by saying that many people don't ask for feedback because they're afraid they might hear that their company is miserable and that their product is horrible. Yet, according to McConnell and Huba, companies rarely receive that type of painful feedback. And, their research shows that companies that have focused feedback efforts gain many positives from the experience including the ability to use the feedback to drive marketing initiatives, develop products and set service expectations.
So how do you overcome your negative tendencies when it comes to getting customer feedback? Here are several suggestions from the pair's "10 Golden Rules":
* Believe that customers possess good ideas.
* Gather customer feedback at every opportunity. Avoid the trap of "we don't want to bother our customers," and get them involved.
* Seek real-time feedback. Call up your customers and be the first in line to hear about their problems.
* Make it easy for customers to provide feedback.
* Share feedback with others in the organization.
March 8, 2004
Can Martha's Brand Survive?
Posted by Carole Matthews at 12:54 PM
Martha Stewart was found guilty last Friday of conspiracy, obstruction of justice, and making false statements in her dealings with federal investigators over her sale of ImClone stocks in 2001. (Check out this Inc.com poll where Inc.com users reacted to the initial charges.) Stewart contends she did nothing wrong, but her proclamations of innocence probably won't go a long way in saving her name or the brand she's built.
In a March 5, 2004, Businessweekonline.com column, BusinessWeek Associate Editor Diane Brady reviews where Martha Stewart Living Omnimedia goes from here. Her opinion: "The psychic heft behind the brand is seriously diminished." Though execs at the company are remaining optimistic and have promised to forge on, the fact remains that the company's reputation "will forever be linked to a convicted felon." Can the brand withstand the association? And what is the company without Martha?
March 5, 2004
The Apprentice
The Donald-Episode 9
Posted by Nadine Heintz at 11:22 AM
Finally, Omarosa got her just desserts! I knew she was unstable, but I was still shocked when she broke with the show's usual format and ran into the boardroom. What drama. She totally unravelled. She said she was going to "eat" Kwame in the boardroom, but instead she had a complete breakdown. I'm starting to wonder if she's not more interested in a job on daytime TV than at one of Trump's companies. At any rate, she had the ax coming. As I've said before, she's managed to stay out of the boardroom, but I had a feeling Trump was dying to fire her. And I was SO happy when Trump finally called her on her histrionics over the mysterious plaster incident.
Omarosa's personality aside, I didn't think she was so great last night. She acted like she was dead set against choosing the weird medieval-inspired artist, but she actually agreed that it would be smart from a numbers standpoint. What a mistake. The team's disgust for the artwork was palpable, especially when Heidi referred to one piece as a toilet tank. Ha! The best part by far was when Omarosa sold the picture of the dead cat for $849. I have to give her props for that one. I also loved Carolyn's "clutch the pearls" moment when she eyed the sloppy table strewn with napkins and dessimated snack trays. If Heidi and Troy are so clueless about art, they should have at least made sure the gallery was tidy and stocked with food.
As for Nick, he kind of redeemed himself last night after his disappointing sales attemptsin the last episode. When he was in charge, he ditched the sourpuss baby routine and really turned on the charisma. I don't know if it's red hair, but he definitely exudes some kind of good energy when he's the leader. I wonder if he may underperform at times when he's not in charge to sabotage the project manager? Hmmm. That could be a savvy strategy as things come down to the wire. Risky, though.
Amy didn't wow me last night. I agreed with the Donald's criticism of Nick's choice of new teammates, especially since I think it might have something to do with his crush on her. I admit Amy has a bubbly personality that people want to be around, but I haven't been blown away by anything she's done on the show. But perhaps my memory fails me. Anyway, I better see some fancy footwork from her next week.
Last week, I was convinced Troy had what it takes to be the apprentice. But he totally spazzed out last night. He was great at selling water, but he needs a variety of skills to head up a Trump company. Kwame, as usual, was useless. But he was smart to bring Omarosa and Heidi into the boardroom. With those two going at each other, he was almost invisible. Very wise. But I don't think Kwame's long for this world. He can't fly under the Donald's radar forever. As for the infamous lunch incident, it was just ridiculous. Both women handled it badly and wasted valuable time. Omarosa was being a princess, but Heidi needs to tone down her foul language. I loved when the Donald asked her what the "f bomb" was, though. I also loved the Donald's little smile when Heidi rolled her eyes during Omarosa's whole concussion rant. I think he likes Heidi's spark and sees her as a diamond in the rough. He's just a guy from Queens, after all!
Next week should be interesting. Maybe things will heat up between Nick and Amy now that they're back on the same team. I can't wait to see everyone's reactions when they find out Omarosa was fired. On the preview, it looked like there was a lot of jumping up and down and clinking of champagne glasses. I don't blame them. And I also can't wait to find out who dares to cross Carolyn in the boardroom!
March 4, 2004
Stepping into Your Employees' Shoes
Posted by Carole Matthews at 4:53 PM
A new reality TV series aims to get CEOs and executives thinking -- and working -- like their employees. The new series to air March 8 at 10 p.m. on TLC, Now Who's Boss? has executives "roll up their sleeves" and actually do the jobs of their underlings. The first episode shares how Jonathan Tisch, the CEO of the luxury Loews Hotel chain, fared when he took on the jobs of bellman, line cook, front desk and even housekeeping.
Other executives who will be experiencing life as employees:
Dan Brestle of Estée Lauder
John Selvaggio of Song Air Service
Larry Flax and Rick Rosenfeld of California Pizza Kitchen
Skip Sherman of Universal Orlando
John Vanderslice of Club Med
Buzz Power
Posted by Carole Matthews at 11:08 AM
Adage.com reports that Mel Gibson's new film, the highly controversial The Passion, took in $26.5 million on Ash Wednesday alone -- a benchmark only beaten by two films, Lord of the Rings: The Return of the King and Star Wars. Topping that, the films distributor reported total box office receipts of $125 million for a five-day period.
Great advertising? Nope. It was the Gibson team's ability to leverage all of the controversy around the film and use it to create a word-of-mouth campaign that brought the buzz about the film to a deafening pitch. As Paul Silver, a key marketer in the film My Big Fat Greek Wedding put it, "They've turned every liability into an asset." Among Gibson's tactics: sending 250,000 DVDs to Christian ministers and priests around the country and creating a website where clerics could order promotional posters, door hangers and hymnal slip cards to distribute to their congregations.
Taxes
RI Governor Proposes Tax Changes
Posted by Carole Matthews at 10:47 AM
To raise funds to fill a "budget hole," Governor Carcieri of RI proposes to repeal several business tax breaks, change income tax filing requirements for business owners and eliminate tax breaks for businesses that invest in nine of the state's enterprise zones, according to a recent Providence Journal article.
The governor also has proposed raising the annual minimum corporate income tax and the franchise tax for businesses, and has proposed requiring business owners who don't live in the state, but have a business in the state, to pay state income taxes. And, he's recommended that the tax credit a small business receives when it