Erich Stauffer

Tag: Entrepreneurship

  • Economy 3.0: Employees as Owners

    As we start to climb out of the recession we were in and enter into what some are calling Economy 3.0, a new trend is emerging. More and more bankrupt companies are being bought or given to their employees.

    The Times of Northwest Indiana reported on June 26, 2009 that unionized workers at the Gary Post-Tribune want to purchase the newspaper from the bankrupt Sun-Times Media Group. The Gary Newspaper Guild has the support of its national union and a Massachusetts consulting firm that helped an employee group purchase some of Maine’s largest papers from the Seattle Times Co. The Sun-Times Media Group filed for Chapter 11 bankruptcy protection in March of 2009.

    The UAW, a union of automobile manufacturing employees, now owns 55% of Chrysler/Fiat and 39% of General Motors, according to USA Today. Both car companies underwent bankruptcies in the Spring of 2009, both helped along by the Obama administration. So is this trend one of the people or are the people following the government’s example?

    Maybe the government learned it from the people. In 2007 a group of former employees in Culver City, California bought their employer Small World Toys Inc. out of bankruptcy for $12.5 million.

    It would be hard under normal circumstances to get enough employees together to do anything singular with thier money, but having their employer go bankrupt seems to have a rallying effect amoung the people. If this trend turns out to be good for the employees over time, maybe more employees will band together before their employer goes bankrupt and have a larger stake in their employers future – as part owners.

  • Flat is the New Up

    As early as July 2008 Newsweek was reporting that “flat was the new up.” NPR reported it again in December of 2008, and AMNews has again used the term as late as June 22, 2009 in describing medical offices remaining steady against other types of commercial real estate. When corporate earnings estimates are released, it is considered good news when they are not announced lower than expected. No bad news is good news. Flat is the new up.

    In markets that are all, but rational, the human emotional element plays a large part in shaping the events of the economy as a whole. Before the recession hit, everyone was saying, “a recession is coming,” and as if on command, a recession came. Now we are starting to hear the opposite. Warren Buffet, the second richest human on Earth, has said “Not off the bottom yet”, but John Bogle, the legendary 80-year-old founder of mutual fund giant, The Vanguard Group, suggests otherwise believing that stocks already have hit their low point for 2009.

    Business Week is doing its part by starting a weekly column it calls “The Case for Optimism.” Editor-In-Chief Stephen J. Adler is, “looking past the financial turmoil and economic unrest gripping the globe to focus on the promising future that lies on the other side of this storm. We’ll chronicle the forward thinkers investing in R&D, launching promising new products, entering new markets, or implementing management and leadership…BusinessWeek is optimistic about the economy amid the sharpest downturn since the Great Depression.”

    People matter. Everything begins as an idea. One man’s change in thought can change the economy. Change the way you think and you can change your reality. If we keep telling ourselves that things are going to get better, that we have hit bottom and there is no where to go but up, then that is what will happen – and may be happening. Bloomberg reports consumer spending was up in May of this year.

  • A Tale of Two Entrepreneurs

    Ever wondered what difference a website can make to your local business? This is a story Patrick Neeman told about two business owners he knew personally.  One friend thought his local business was okay without it, while the other followed the path online.

    Neeman said to his first friend, “Why don’t you have a small website for your business?” This friend runs a small business where his clients spend their money with him on a discretionary basis — that is, it’s for entertainment purposes.  They have to physically visit his business location to use his services, and even though he could sell merchandise online, it makes no sense because most vendors could beat his prices.

    “Looking around his office, he had some computer from the prehistoric era that had dial-up and nothing else. He would never, never really embrace the web like he needs to generate business from it,” said Neeman.

    The other friend, Bob The Chiropractor, just started his business recently in spite of the recession. He runs a chiropractic business, but Neeman met him previously at a marketing company and said, “He’s really a businessman that happens to be a chiropractor, instead of the other way around.”

    Because of the nature of his business, the customers also have to come in to use his services and it’s extremely local. Bob’s really embraced the web, and it shows. In fact, Neeman doesn’t even list the URL – he invites you to type in “Bob The Chiropractor” at Google.

    How well is he doing?

    He’s doubling the size of his office because he’s overbooked. End of story.

    Neeman writes, “Not everyone should get a website, because like any marketing activity, to do it truly well you have to embrace it, and it does take some extra effort. But if you put in that effort and do it right, the rewards can be tremendous.”

    View the full article to find out How to Make the Web Work for Your Business in 5 Steps.

  • The Art of the Start by Guy Kawasaki

    Guy Kawasaki was part of Apple’s Macintosh team. He helped develop the computer and although it became a huge success, much of the rest of Apple wondered at the time why resources were being taken away from the Apple II, the current product leader. This lead Guy to one of his core themes, “Kill the cash cow.” He has this in common with Jim Collins who has a similar saying, “Sell the mills,” which refers to Scott Paper Company selling their paper mills in order to directly compete against Proctor and Gamble.

    The Art of the Start is not Kawasaki’s first book, nor has it been his last. Rules for Revolutionaries came before and his most recent book is Reality Check. Although all of Kawasaki’s books deal with the entrepreneurial spirit and development, The Art of the Start is a no-bull how-to manual for getting any business, school, or church off the ground and running. The very first chapter lays out the five things any organization needs to do to start. All you have to do is follow them.

    The following is an excerpt from the FAQ section at the end of the first chapter:

    Q. When should I worry about looking like a real business, with business cards, letterhead, and an office?

    A. Make business cards and letterhead immediately. Spend a few bucks and get them designed by a professional or don’t do them at all. Ensure that the smallest type size is twelve points. An office isn’t necessary until customers are coming to see you, or you run out of space for the team.

    Q. Do I need a Web site?

    A. Yes, particularly if you’re going to raise money, serve lots of customers, change the world in a big way, and achieve liquidity. Customers, partners, and investors will look for your Web site from the very start.