Some have abandoned the thought of looking for a job. They have decided to start a business of their own, relying on their talents gained buy previous employment. It has been estimated that nearly 70,000 new businesses will be formed in Oregon in 2010. Most of these companies will be in the Portland area and have no employees. These will be composed of the unemployed who are trying to survive. They may arrive in a BMW wearing a $500 suit, but they could also be receiving food stamps and living with relatives. I commend these warriors fighting against their personal poverty. I say fight on, because some of you will discover powerful personal qualities of leadership and courage. These times will prove that you can survive and prosper once more.

Sad to say, not all will become successful, but having a plan of action will greatly improve your odds. As I meet with new businesses, I always ask who is their targeted customer. Too often the response is, “everyone.” That lack of focus will cause you to chase customers who do not have the ability to purchase or interest in your product. You need to ask yourself a few questions prior to mastering the world.

• Who needs my product or service and why?

• Who is already servicing that market?

• What do I have that is different?

• Why should they buy from me?

Answer these questions in as much detail as possible. This is by no means a complete list of questions, which need answering to become successful. It is only a start.

If you have started a business, I would like to hear your story and progress. Your struggles and success can encourage others to continue moving forward.

E-mail http://ken@asecondlookbizconsulting.com

I wish you all the best!

Ken Bear Cole

A Second Look Business Consulting LLC

The truth is that many families will be spending less this Holiday Season. Almost 16 million people are out of work this year. Middle Management ex-employees have been hit especially hard. Too many did not tighten the belt when they were laid off. They had severance packages, which have sustained their life styles, but they are almost gone. So are the unemployment benefits and most of their savings. These are the people who were more concerned about where to vacation, then how to make the mortgage payment. The BMW has been sold and they are now driving a stable used car with better gas mileage. Vacations are on hold and so is Christmas for the adults. The kids will receive less, but hopefully they can find a new gift under the tree.

Hopefully they can discover the joy of being a family and doing things together. This is not the first time this country has seen tight financial times, but it may be for some of your neighbors. So get together with friends, share expenses, and have some fun, because Santa is on a budget this year.

Ken Bear Cole

A Second Look Business Consulting LLC

The first thing to do is get educated about the two different systems available to you in Oregon. Did you know you have options? Oregon has a “Provider Network” system” and a “Life and Health Insurance” system. Both will provide programs for financial assistance when health care services are needed. The key difference is one is actual “Insurance” and the other is a “Subscription” to a predetermined plan.

What is the difference between the two systems and what does that mean to me and my family?:

Mind you, this is a very convoluted subject that is ever changing. The best option today, in my opinion, is to make the choice for the system that best protects my family from the “Loop Holes” of what the media calls “The Broken Health-care System”. But wait…What are those Loop Holes and are they in the program I already have? Both good questions and ones that need answering if you already have a program, looking to change that program, or needing to purchase a program.

This is a list of a few of the Loop Holes you need to be aware of:

• Does your plan pay claims based on UCR charges (Usual Customary and Reasonable charges)?
• Do you have to get PreAdmission Authorization for hospital inpatient care?
• Do you have to get a Referral to see a Specialist?
• Does your Co-Insurance coverage amounts decrease if you need medical care when you travel out of Oregon or overseas?
• Do you have to commit to a 6 month or 1 year contract?

These are just a few of the many “Health Care Restrictions” and “Financial Exposures” most people are unaware are already in their health care program.

Amtrak?  Nope.

How about the Pet Rock?  Nope.  I am of course talking about communication mediums where the intent is designed to help people find and communicate with more friends (a.k.a. Social Media).

The techno-geeks sold us a line built on the traditional marketing model, where there is traffic there is profit.  Eight years ago that falsehood was exposed at the cost of hundreds of billions of dollars and millions of jobs.

Paul Benjou wrote on MediaLifeMagazine.com, “The fact is, it’s a good bet these social networking sites will never figure out a workable business model because there may not be one.”

Why then do hundreds of millions of people flock to them and very smart investors drop billions of hard earned dollars on the hope?

Do people really seek hundreds, if not thousands, of new friends?  Do humans spend countless hours behind the computer screen sending messages to the thousands of followers they have on Twitter, Facebook or My Space?  Do we crave attention so much yet lack the basic ability to find that companionship in face-to-face interactions?  Nope, nope, and nope.  The reason comes down to one word: Money.

Social networking has been around for as long as humans interacted.  As soon as a monetary system was established, I bet someone was trying to make a buck by selling the ability to reach more people.  Herein lies the reason why millions try and billions are invested.

Small Business runs America.  70% of the jobs are created by small business, 50% of the GDP is generated by small business; but small business can nary afford the expensive “traditional media” air time.  We seek alternative methods and when something seems to work, we use it!

Twitter, Facebook and MySpace will probably go the way of the pet rock, but in the mean time, many small business owners will use social media to reach new customers and earn a living.  When it ends, will it be a bubble or a fad?

I only hope social media sites don’t go the way of GM or Amtrack.

Ed Bejarana
Zenith Exhibits, Inc.

Zenith Exhibits, Inc. is a marketing firm that specializes in face-to-face and internet marketing that is affordable for small business people.  To learn more about our tradeshow displays or internet marketing service, please call (503) 709-1454.

1. GM Partners With Segway
2. Tropicana’s Botched Redesign
3. KFC Runs Out of Chicken
4. John Thain’s $35,000 ‘Commode on Legs’
5. SEC Bars Madoff…Just in Time!
6. Not-So-Stressful Stress Tests
7. Yankees’ $200,000 Seats
8. U.S. Debt is ‘Safe.’ Seriously. Stop Laughing
9. Geithner gives few details, tanks the market
10. Obama’s spending cuts…a ways to go

Anyone else worried that three of the top ten directly relate to the administration?  First six months in office and already they have made the top ten list?  Oh my!

I would like to spend some time on number 8.  In the next few days I am publishing a three part article series entitled “Small Biz Ideas – The New Economy of Scale”.  In advance of that multi-site publication, it would be to our benefit to examine the state of the US Dollar.

When the US Treasury Secretary is laughed at for saying the US Dollar is strong, I think we have some rough roads a head of us.  As business owners / operators, we can coward in the corner, deny the possibility, or plan on the likelihood.  As a business community, I feel, it is in our best interest to plan.

What are some things you are doing to cut costs, streamline your business, or improve economic conditions for your operation?  How might another business person reading this thread benefit from your ideas?

One thing I am doing is renegotiating distributor agreements with my manufacturers.  For no money out of pocket, I had gained FREE marketing assistance, FREE demo units, more direct support for the displays I sell, FREE color matching and a 60% reduction in shipping costs.  Note, to extra money out of my pocket.  All I did was ask.

Another thing I am doing to help improve my business position is expand my internet marketing effort.  Since the summer months are slow anyways, I have been spending extra time improving my websites with better content, streamlined keyword selections, smaller/faster pictures, and more testimonials.

Reach out to your current customers and ask for input.  Call your manufactures and ask for help.  Email the mayor and request more city contracts.  The worst anyone can say is no.

Ed Bejarana
Zenith Exhibits, Inc.
(503) 709-1454

Zenith Exhibits is a marketing consulting firm that specializes in trade show and internet marketing solutions.

Certainly the medical profession would love to prevent terminal illness, but until that happens the goal is to “mitigate” the damages and maintain a quality of life.  However, we’re inundated with information on how we should live and eat as if it were for the end of preventing death.  We know that’s not a reality so we either ignore the information or stick our head in the sand and think “it’s never going to happen to me”.  Most of the medical information we hear is much like, “Blah blah blah, Cholesterol, blah, blah, blah, High Blood Pressure, blah, blah, blah, Exercise, blah, blah, blah, Heart Disease, blah, blah, blah, blah, blah.

The good news about medical issues is, if they are terminal, you don’t have to stick around and deal with the consequences.  That’s usually left to your family or estate.  However, this article is not about Medical Issues, it’s about Identity Theft.  The analogy, however, holds true.  Unfortunately, if you have an Identity Theft attack you still have to stick around and put things back together.

The Federal Trade Commission, (FTC), estimates it takes 120-600 hours and approximately $1500 in out-of-pocket expenses to restore your identity, if you ever get it completely back.

Five years ago Identity Theft was a fledgling industry that many people thought was a fad and that authorities would get it under control.  Sadly, it has grown into the largest and fastest growing crime in the history of the world!  Seems a new company is springing up everyday to “Guard, Lock, or Protect” your identity.  Some are legitimate and some are opportunistic.

We’ve heard so much about Identity Theft in the last few years that it has become a Blah, Blah, Blah issue.  People have developed some really dangerous ideas that, if left unchecked, could be fatal to their financial and social health.

The first is, “I just don’t think it’s going to happen to me, I don’t really believe it’s as bad as everyone says”.  Fact is, it’s worse.  There are 27,000 reported victims everyday.  Many people don’t report for various reasons, but mainly because they don’t know.  The average victim doesn’t find out they been a victim for over 12 months.  Which is unfortunate since liability limits change after 48 hours and then again after 60 days of the event.  Some reports are now saying that the average person can expect to be a victim 3-5 times in their lifetime.

The second response is, “My credit is so bad, I wish someone would steal my identity”.  Depending on the report you read, credit issues are only 25%-30% of the reported events.  The four other areas of affect are criminal activity, DMV records, medical information records, and IRS/Social Security records, i.e. reporting income on a false number.

The credit issues are relatively easy to fix, but losing your medical benefits due to testing HIV positive, or getting arrested for outstanding warrants on a routine traffic stop can be devastating.  Especially if it’s not you and you have no idea where the information came from.   You’re going to want to have access to an attorney, and not just in the 9-5 hours.

The third most popular response is, “We’ve got that covered through our financial institution, i.e. bank, credit card, credit union, etc.”.  Financial institutions have found a great resource to charge consumers for doing what they used to do for free.  You’ve got a number of resources available for financial theft issues that can be viewed at the FTC website.  Most of these won’t cost you anything.  However, a $50-$500 liability can severely impact most households.  Early detection is the key to limiting these liabilities and getting your credit report 1-4 times a year is a little like using your smoke alarm on the weekends.  Chances are, if you experience one of the four other areas of Identity Theft your financial institution isn’t going to help you, especially after hours.

The fourth, and probably most dangerous response is, “Oh, we’ve already had that happen.  It took a long time, but we finally got it all cleaned up.”  We’re not talking about the Measles or Mumps.  Once you’ve been an Identity Theft victim, statistically, you are 50% more likely to be a victim again than someone that has never been a victim.

Nobody is going to be able to prevent Identity Theft.  Your information is in too many places and there have been far too many breaches to think that you can prevent it.  What needs to be done, as with our medical issues, is to take precautions against a premature catastrophe, then have a plan in place that will mitigate the consequences.

Visit the FTC Identity Theft website and see how to safeguard your identity.  Then, contact any place that has your “non-public information” (NPI) and ask them if they have a written policy and plan in place to protect your information, then get a plan that will not just guard or lock your credit, but that will actually provide you with a full restoration plan and not just a do-it-yourself kit for all five areas of this insidious crime.

If you’re a business owner and someone steals your identity, it could affect your entire business.  We have not yet seen the potential affects that this can have on businesses, but the “industry” is still young.  Now is the time to speak with your attorney, consultants, and  finance professionals and get your plan in place.

Join us at this exclusive conference and discover A World of Options.  We will explore the economic cycles we are facing and present strategies you’ll not hear from Wall Street!  This FREE conference is open to all people who’ve been impacted by current economic time.  Space is limited.  To reserve your seat, RSVP online or by calling (503) 244-2692.

Still not sure you should attend?  Consider Ben Franklin’s concept of insanity, “doing the same things and expecting different results.”

• If you are afraid to open your 401K statement,
• If you wake in the morning worried about your home equity,
• If you feel like your job is insecure,

then RSVP online or call (503) 244-2692.

Don’t remain a victim of economic woes, find Market Chaos Solutions on June 25 at the Benson Hotel.

What does really mean break-even? It is the level at which the company makes neither a loss nor a profit, but just covers it’s fixed costs or overheads.  It’s the floating point, at which you know that you are not sinking. In practical terms it could be the level of monthly sales that, once reached, will give you the security of paying your bills, at least for that month. Or for a whole year. Or even how many units you need to sell in order to cover all the fixed cost, to pay all your bills.

That’s really important, isn’t it? It is the sales target  you and your staff staff must reach every month, as each sale after that generates profit, even at a deep discount.

There is no need to panic: its very simple to determine your break-even point. First of all we must understand three things: variable costs, fixed costs and revenue.

Variable costs are the costs of goods sold, that is they are expenses which change in proportion of the activity of a business. They may include the cost of raw materials, or of the items you sell, if you are a re-seller. Payroll expenses which are directly related to the objects or services you sell are also variable costs, because they go along with the level of revenue. Salaries of admin staff, which you have to pay regardless of how much you sell, are instead fixed costs.

Fixed costs or overheads do not change with the level of business activity, or sales. They are the bills that you have to pay every month, no way out, whether your sales are good or bad.

The revenue is your total sales, total income. The relationship between these three components is what determines the break-even point. Revenue minus the variable costs gives your gross profit. Gross profit minus overheads is your net profit, or EBIT, or even EBITDA if you wish to sound more sophisticated. (Earnings Before Interest and Taxes-Earnings Before Interest, Taxes, Depreciation and Amortization).

These are thick words but the meaning is simple. Now, how do I get to know when I reach the break-even point in my sales? That is, how much revenue I must generate at least to pay my bills? Here is the formula:

OVERHEADS divided by GROSS PROFITS times REVENUE=BREAK-EVEN

Easy, isn’t it? If you wish to calculate your monthly break-even, you must take an average of at least the last six months.

In a downturn economy is obviously so important to constantly monitor our business, and to know our break-even point is essential.

You need the internet!

But you say that you already have a website?

• How well is it performing?
• Are you on the 1st page of Google?
• Is it a business asset or just another expense? (Does it bring in revenue?)

Beware of the SEO rip off promises. You don’t need to spend $3,500 – $5K any more. The only way you can get a 1st page listing on Google is to have valuable content. You can’t just buy your way onto Google, Yahoo or any other valued search engine.

People need to know why they should do business with you. Just a low price is not enough any more. Consumers are becoming increasing tired of low priced junk! They need assurance that your goods and services don’t fall into the junk category.

An effective Twitter or Facebook campaign can require little cash, but it will require a few hours per week.

You will need to be consistent, because the web traffic will fall off as soon as you stop posting. But you can see results in less then a week.

You may need to enlist the assistance of a professional, but that bill should be less then $500. There are videos, which will walk you through the process for even less.

Shifts in business practices always take a little extra time to understand, but the results are dramatic. I remember writing or dictating business letters for my secretary to type. She would give me a draft to review and I would cross things out and reword them. It was a time consuming process, not to mention the additional staffing costs. Now I do it all on my laptop.

We are going through a major shift in business practices, just like when the PCs became commonplace. So it’s get on board or get out of the way. Maybe that is why your competition is sustaining or growing during this recession.

What do you think?

Ken Bear
Fishing with Bear LLC