The Wall Street Journal, Small Business
WSJ.com, December 2, 2010
Entrepreneurs Going the Royalty Route Use a Share of Revenue to Pay Back Loans
By: Scott Austin
When first-time entrepreneur Philip Vaugn recently began searching for start-up capital, he traveled down two conventional paths.
Mr. Vaugn, co-founder of travel-review aggregator Raveable.com in Kirkland, Wash., says he wasn't interested in forking over a large chunk of equity to venture capitalists or committing to ambitious investment-return expectations. He also considered a loan, but knew that banks had made it onerous for young companies like his to obtain debt financing.
"We're in a weird spot" but we have "a decent amount of revenue coming in," says Mr. Vaughn who expects Raveable's sales to grow two to three times annually.
So he's considering an alternative called royalty financing, in which a company pays back a loan using percentage of revenue. Traditionally found in industries such as mining, film production and drug development, royalty financing is being seen more among technology companies and other early-stage firms with growth potential.
To read the full article.. click here.
Friday, December 31, 2010
Thursday, December 30, 2010
Check out: Money is available for small businesses, but it takes work
Posted 11/21/2010 6:00 PM
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
Wednesday, December 29, 2010
Check out Editorial: Small businesses need more access to credit
By News Sentinel Editorial Board
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
Wednesday, December 1, 2010
Check out Boomerang Business Owners Sell Shop, Then Buy It Back
Sell the Store, The Buy It Back
by Emily Maltby
Wall Street Journal / WSJ.com Small Business Online
November 11, 2010
Call them "boomerang" business owners.
A handful of entrepreneurs who sold during flush times are repurchasing their old companies for cheaper prices, hoping they can resuscitate the now ailing businesses.
Dave McCarthy, who says he was tired of the day-to-day stress of running his own hand-crafted furniture business, Eldred Wheeler in Hanover, Mass., decided six years ago to sell the shop for between $5 million and $10 million in cash.
But he regretted the decision almost immediately, he says. "I should have gone on vacation rather than selling."
Then Mr McCarthy, who had since bought a candy company that he still runs, noticed last year that the economy had taken a toll on Eldred Wheeler, forcing its owners to severely cut staff and operations. He decided the opportunity was ripe, and bought back his old company for less than $1 million.
To read the full article... click here.
by Emily Maltby
Wall Street Journal / WSJ.com Small Business Online
November 11, 2010
Call them "boomerang" business owners.
A handful of entrepreneurs who sold during flush times are repurchasing their old companies for cheaper prices, hoping they can resuscitate the now ailing businesses.
Dave McCarthy, who says he was tired of the day-to-day stress of running his own hand-crafted furniture business, Eldred Wheeler in Hanover, Mass., decided six years ago to sell the shop for between $5 million and $10 million in cash.
But he regretted the decision almost immediately, he says. "I should have gone on vacation rather than selling."
Then Mr McCarthy, who had since bought a candy company that he still runs, noticed last year that the economy had taken a toll on Eldred Wheeler, forcing its owners to severely cut staff and operations. He decided the opportunity was ripe, and bought back his old company for less than $1 million.
To read the full article... click here.
Tuesday, November 30, 2010
Object lesson--follow the exact terms of the lease when exercising an option to renew!
Rock Bottom Brewery tries to hang onto downtown lease
By Kathleen McLaughlin
Indianapolis Business Journal / IBJ.com
November 3, 2010
Landlord John Goodman wants Rock Bottom Brewery out of its West Washington Street location in downtown Indianapolis by next June.
Goodman recently rejected the restaurant's attempt to renew its lease for five more years. Rock Bottom, part of the Colorado-based chain, has occupied 14,600 square feet at 10 W. Washington St. since June 1, 1996.
The renewal notice was invalid, he said in an Oct. 8 Marion Superior Court filing, because it didn't come from the proper entity, which is named tenant Walnut Brewery Inc., and wasn't delivered by the U.S. Postal Service.
"It is unusual," said John Buerge, director of development and property management for Rock Bottom Restaurants Inc. in Louisville, Colo. "I think this is more he wants the space back for whatever reason."
Buerge insists that Rock Bottom's notice was adequate because it arrived via overnight delivery from UPS and required a signature. Similar cases in other states have been resolved in the tenant's favor, he said. Rock Bottom filed a notice to have the case moved to U.S. District Court of Southern Indiana.
To read the full article... click here.
By Kathleen McLaughlin
Indianapolis Business Journal / IBJ.com
November 3, 2010
Landlord John Goodman wants Rock Bottom Brewery out of its West Washington Street location in downtown Indianapolis by next June.
Goodman recently rejected the restaurant's attempt to renew its lease for five more years. Rock Bottom, part of the Colorado-based chain, has occupied 14,600 square feet at 10 W. Washington St. since June 1, 1996.
The renewal notice was invalid, he said in an Oct. 8 Marion Superior Court filing, because it didn't come from the proper entity, which is named tenant Walnut Brewery Inc., and wasn't delivered by the U.S. Postal Service.
"It is unusual," said John Buerge, director of development and property management for Rock Bottom Restaurants Inc. in Louisville, Colo. "I think this is more he wants the space back for whatever reason."
Buerge insists that Rock Bottom's notice was adequate because it arrived via overnight delivery from UPS and required a signature. Similar cases in other states have been resolved in the tenant's favor, he said. Rock Bottom filed a notice to have the case moved to U.S. District Court of Southern Indiana.
To read the full article... click here.
Want to Buy a Franchise? The Requirements Went Up
Some chains demand more experience - and more cash - from buyers
By Emily Maltby
The Wall Street Journal - Small Business Online
November 15, 2010
For entrepreneurs, it's getting tougher to get in on some franchises these days.
With the economy in the dumps, an array of franchisers are raising their standards for prospective buyers. They're demanding candidates to bring much more cash to the table, as well as a stronger track record of experience in the industry. In some cases, they're even inspecting the buyers' current operations to see just how well they're run.
Tactics for Tough Times
"The margin for error in a down economy is less," says Darrell Johnson, chief executive of franchise research-and-consulting firm FRANdata in Arlington, VA. "In a good economy, when you are struggling and learning on the job there is more margin for error because the economy is helping you along."
To read the full article... click here.
By Emily Maltby
The Wall Street Journal - Small Business Online
November 15, 2010
For entrepreneurs, it's getting tougher to get in on some franchises these days.
With the economy in the dumps, an array of franchisers are raising their standards for prospective buyers. They're demanding candidates to bring much more cash to the table, as well as a stronger track record of experience in the industry. In some cases, they're even inspecting the buyers' current operations to see just how well they're run.
Tactics for Tough Times
"The margin for error in a down economy is less," says Darrell Johnson, chief executive of franchise research-and-consulting firm FRANdata in Arlington, VA. "In a good economy, when you are struggling and learning on the job there is more margin for error because the economy is helping you along."
To read the full article... click here.
Monday, November 29, 2010
SBA Program Provides Women-Owned Businesses Greater Access to Government Contracts
The Small Business Administration's Women's Procurement Program Rule could provide easier access to $500 billion worth of feral contracting opportunities.
By Julia L. Rogers
10/26, AOL Small Business Online
After being stalled for nearly 11 years, the Small Business Administration's Women's Procurement Program Rule was put into effect earlier this month - potentially providing easier access to $500 billion worth of federal contracting opportunities for women-owned businesses.
The new rule dictates that women-owned businesses must account for 5 percent of government contracts, up from the current 3.4 percent. Eligible businesses must be at least 51 percent owned and controlled by women who are U.S. citizens, to enjoy deals up to $3 million in many industries and up to $5 million in the manufacturing sector.
To read the full article... click here.
By Julia L. Rogers
10/26, AOL Small Business Online
After being stalled for nearly 11 years, the Small Business Administration's Women's Procurement Program Rule was put into effect earlier this month - potentially providing easier access to $500 billion worth of federal contracting opportunities for women-owned businesses.
The new rule dictates that women-owned businesses must account for 5 percent of government contracts, up from the current 3.4 percent. Eligible businesses must be at least 51 percent owned and controlled by women who are U.S. citizens, to enjoy deals up to $3 million in many industries and up to $5 million in the manufacturing sector.
To read the full article... click here.
Check out this interesting marketing technique...
WEB REVIEW: With Groupon and its ilk, daily deals drive demand
By Jim Cota
IBJ.com
October 30, 2010
A few months ago, something interesting happened.
A small company in Chicago called Groupon sent out an e-mail offering to sell a Gap gift card with a $50 value for $25. It was part of a marketing campaign - fully endorsed by Gap, by the way - to test the waters with a national campaign of this type. With no prior frame of reference, neither Groupon nor Gap had any idea what to expect, but I think it's fair to assume the results exceeded their wildest aspirations...
To read the full article... click here.
By Jim Cota
IBJ.com
October 30, 2010
A few months ago, something interesting happened.
A small company in Chicago called Groupon sent out an e-mail offering to sell a Gap gift card with a $50 value for $25. It was part of a marketing campaign - fully endorsed by Gap, by the way - to test the waters with a national campaign of this type. With no prior frame of reference, neither Groupon nor Gap had any idea what to expect, but I think it's fair to assume the results exceeded their wildest aspirations...
To read the full article... click here.
Thursday, November 18, 2010
Check out... Businesses Put Up for Sale Smack Into Harsh Reality
By Sarah E. Needleman
Wall Street Journal (WSJ.com)
October 14, 2010
Small-business owners banking on a big payoff when they sell their establishments may have to settle for a lot less than planned.
A combination of tight credit, skittish buyers and business owners unwilling to sell at rock-bottom prices - factors similarly affecting home sellers - has left the small-business marketplace at a standstill.
David Wetzel says he spent two years trying to sell his business, Dorst Hardware, a Ventnor City, N.J., shop he's owned since 1993. He's now liquidating the business and expects to earn only about a third of his asking price. "I had some very close leads who wanted to buy, but they could just not get the financing," says Mr. Wetzel, who is 64 years old.
to read the full article... click here.
Wall Street Journal (WSJ.com)
October 14, 2010
Small-business owners banking on a big payoff when they sell their establishments may have to settle for a lot less than planned.
A combination of tight credit, skittish buyers and business owners unwilling to sell at rock-bottom prices - factors similarly affecting home sellers - has left the small-business marketplace at a standstill.
David Wetzel says he spent two years trying to sell his business, Dorst Hardware, a Ventnor City, N.J., shop he's owned since 1993. He's now liquidating the business and expects to earn only about a third of his asking price. "I had some very close leads who wanted to buy, but they could just not get the financing," says Mr. Wetzel, who is 64 years old.
to read the full article... click here.
Sunday, October 24, 2010
Is This a Good Thing????
Small Business Administration redefines 'Small Business'
New size standards will now classify more than 18,000 additional businesses as "small business," making them eligible for SBA programs
By Lauren Drell
AOL Small Business
October 11, 2010
Small businesses are getting a little bigger, thanks to new size standards form the Small Business Administration. Effective November 5, 2010, the change will make nearly 18,000 more businesses across 70 industries, including retail and hospitality, eligible for SBA programs, including loans and help winning federal contracts.
SBA size standards vary by industry, and caps are typically set based on the number of employees or average annual receipts -- criteria that have been in place since 1984. This recent "comprehensive review" of size standards will at least double the cap on average annual receipts, taking them from $7 million to as much as $35.5 million.
The change is said to benefit car dealers most of all, as they represent nearly one-third of the 18,000 deemed "small businesses." Whereas the cap for car dealers used to be revenue based, the new rule hinges on the number of employees: 200 is the limit. About 90 percent of all car dealerships will now be considered small businesses, some with revenues up to $20 million, according to a report by The New York Times' You're the Boss blog.
"These increases in the size standards mean more of America's small businesses will be eligible for and can access the resources and services the SBA and other federal agencies have available," SBA Administrator Karen Mills said in a statement. The new size guidelines are aligned with current economic and industry indicators and are meant to ensure that small businesses have the tools they need to grow and create jobs, since small businesses have created 65 percent of all the new jobs in the past 17 years and employ half of America's private-sector workforce.
New size standards will now classify more than 18,000 additional businesses as "small business," making them eligible for SBA programs
By Lauren Drell
AOL Small Business
October 11, 2010
Small businesses are getting a little bigger, thanks to new size standards form the Small Business Administration. Effective November 5, 2010, the change will make nearly 18,000 more businesses across 70 industries, including retail and hospitality, eligible for SBA programs, including loans and help winning federal contracts.
SBA size standards vary by industry, and caps are typically set based on the number of employees or average annual receipts -- criteria that have been in place since 1984. This recent "comprehensive review" of size standards will at least double the cap on average annual receipts, taking them from $7 million to as much as $35.5 million.
The change is said to benefit car dealers most of all, as they represent nearly one-third of the 18,000 deemed "small businesses." Whereas the cap for car dealers used to be revenue based, the new rule hinges on the number of employees: 200 is the limit. About 90 percent of all car dealerships will now be considered small businesses, some with revenues up to $20 million, according to a report by The New York Times' You're the Boss blog.
"These increases in the size standards mean more of America's small businesses will be eligible for and can access the resources and services the SBA and other federal agencies have available," SBA Administrator Karen Mills said in a statement. The new size guidelines are aligned with current economic and industry indicators and are meant to ensure that small businesses have the tools they need to grow and create jobs, since small businesses have created 65 percent of all the new jobs in the past 17 years and employ half of America's private-sector workforce.
Saturday, October 23, 2010
Check out... Top 10 ways government kills jobs in America
By: Arthur Brooks
OpEd Contributor
WashingtonExaminer.com
October 19, 2010
Our politicians all seem to agree on at least one thing: There will be no recovery unless America gets back to work.
But that's often where the agreement ends. Once you move on to discuss how to get America back to work, opinions begin to diverge.
In general, the worst thing for job creation is a poor entrepreneurial climate. Such a climate is brought on by the large fiscal debt, unpredictable health care costs, and a generally anti-business and pro-regulation approach by government.
In the run-up to the midterm elections, all of us should be thinking about "climate change" - and the best ways to create jobs in our nation. We'll hear lots of talk about recovery and stimulus, about fairness and equity, the future and change.
As we listen to the rhetoric, remember the reality. These are the Top job killers in America.
To read the full article at the Washington Examiner... click here.
OpEd Contributor
WashingtonExaminer.com
October 19, 2010
Our politicians all seem to agree on at least one thing: There will be no recovery unless America gets back to work.
But that's often where the agreement ends. Once you move on to discuss how to get America back to work, opinions begin to diverge.
In general, the worst thing for job creation is a poor entrepreneurial climate. Such a climate is brought on by the large fiscal debt, unpredictable health care costs, and a generally anti-business and pro-regulation approach by government.
In the run-up to the midterm elections, all of us should be thinking about "climate change" - and the best ways to create jobs in our nation. We'll hear lots of talk about recovery and stimulus, about fairness and equity, the future and change.
As we listen to the rhetoric, remember the reality. These are the Top job killers in America.
- Uncertainty and business
- Uncertainty and the consumer
- High corporate taxes
- Unhealthy health insurance costs
- The threat of unionization
- Inability to hire and fire
- Trade restrictions
- Credit
- Increasing unemployment insurance
- Encouraging frivolous lawsuits
To read the full article at the Washington Examiner... click here.
Friday, October 22, 2010
Check out... Former executives want to be their own boss
Laid-off office workers tired of rat race; seeking their own businesses with $100,000-plus income.
by Tanya Mannes
October 12, 2010
San Diego Union Tribune
As high-level corporate jobs dry up, some executives are embracing the idea of trading rush-hour traffic and hectic schedules - as well as steady paychecks - for a chance to be their own boss.
The economic collapse has eliminated millions of jobs, slashed pension programs and gutted home equity and stock portfolios, making the idea of self-reliance more attractive.
Peter Siegel, founder and chief executive of BizBen.com, a California business-for-sale website, is seeing a surge of former executives - many in their 40s, 50s and 60s - seeking a business with an adjusted net income of $100,000 or more.
To read the full article... click here.
by Tanya Mannes
October 12, 2010
San Diego Union Tribune
As high-level corporate jobs dry up, some executives are embracing the idea of trading rush-hour traffic and hectic schedules - as well as steady paychecks - for a chance to be their own boss.
The economic collapse has eliminated millions of jobs, slashed pension programs and gutted home equity and stock portfolios, making the idea of self-reliance more attractive.
Peter Siegel, founder and chief executive of BizBen.com, a California business-for-sale website, is seeing a surge of former executives - many in their 40s, 50s and 60s - seeking a business with an adjusted net income of $100,000 or more.
To read the full article... click here.
Check out ATC - About Us
The State of Indiana Alcohol & Tobacco Commission has an excellent web site with lots of helpful information for anyone with questions about Liquor Licenses. It is a great resource!
Click here... ATC - About US.
Click here... ATC - About US.
Check out... 5 Ways to Make a Bad Economy Better
Published October 12, 2010
FoxNews.com
The economic forecasts just keep getting worse.
The National Association for Business Economics released a study Monday downgrading its growth prediction from 3.2 percent to 2.6 percent for this year, with next dragging along at the same pace. The forecast showed the jobless rate hovering above 9 percent through 2011.
The study comes after the Congressional Budget Office pegged growth next year at 2 percent, a pace the office described as "anemic" compared with other post-recession recoveries.
So what can the government do about it? Washington has been pushing out bold, new economic proposals since the recession started, but one glance at the job-fair crowds these days would prove these proposals have had limited effect.
There is no shortage of comments in the suggestion box. FoxNews.com has compiled recommendations from top economists about what Washington can do to give the country's job market and productivity a kick in the pants...
To read the full article... click here.
FoxNews.com
The economic forecasts just keep getting worse.
The National Association for Business Economics released a study Monday downgrading its growth prediction from 3.2 percent to 2.6 percent for this year, with next dragging along at the same pace. The forecast showed the jobless rate hovering above 9 percent through 2011.
The study comes after the Congressional Budget Office pegged growth next year at 2 percent, a pace the office described as "anemic" compared with other post-recession recoveries.
So what can the government do about it? Washington has been pushing out bold, new economic proposals since the recession started, but one glance at the job-fair crowds these days would prove these proposals have had limited effect.
There is no shortage of comments in the suggestion box. FoxNews.com has compiled recommendations from top economists about what Washington can do to give the country's job market and productivity a kick in the pants...
To read the full article... click here.
Business For Sale market has flatlined...
BizBuySell.com has recently released its latest economic data for Third Quarter of 2010. The company's data, which tracks trends in the business-for-sale marketplace, suggests that the business-for-sale market has bottomed out, but a recovery will still be slow in coming.
The number of closed transactions reported to BizBuySell.com in Third Quarter 2010 was 1,117, exactly equal to 1,117 reported for this same time period a year ago.
These numbers indicate that the business-for-sale market has flat-lined, with earlier signs of recovery stalling out in the second half of this year. Although we do see a slight 1% increase compared to the 1,106 closed transactions reported for Q2 od 2010, the market is still down considerably from previous years...
The biggest problem remains a lack of available credit for small business acquisitions, which continues to make life tough for business brokers and business owners looking to sell.
To read the full article... click here.
The number of closed transactions reported to BizBuySell.com in Third Quarter 2010 was 1,117, exactly equal to 1,117 reported for this same time period a year ago.
These numbers indicate that the business-for-sale market has flat-lined, with earlier signs of recovery stalling out in the second half of this year. Although we do see a slight 1% increase compared to the 1,106 closed transactions reported for Q2 od 2010, the market is still down considerably from previous years...
The biggest problem remains a lack of available credit for small business acquisitions, which continues to make life tough for business brokers and business owners looking to sell.
To read the full article... click here.
Tuesday, September 28, 2010
Check out Dolce hotel, YMCA part of city-funded 'North of South' development
By: Scott Olson
IBJ.com
An upscale Dolce hotel and 27,000-square-foot YMCA are among the tenants slated for a $150 million mixed-use development being built on 10 acres of land Eli Lilly and Co. owns near its Indianapolis headquarters.
The development, details of which were announced at a Monday morning news conference, also include plans for 320 high-end apartments and 40,000 square feet of restaurant and retail space.
The city plans to fund the project by issuing bonds, using income generated by the development to pay off the costs, pending approval by the City-County Council. Indianapolis also plans to provide $90 million in tax-increment financing for sewer and street improvements. Council members are expected to vote on the financing by the end of the year.
to read the full article... click here.
IBJ.com
An upscale Dolce hotel and 27,000-square-foot YMCA are among the tenants slated for a $150 million mixed-use development being built on 10 acres of land Eli Lilly and Co. owns near its Indianapolis headquarters.
The development, details of which were announced at a Monday morning news conference, also include plans for 320 high-end apartments and 40,000 square feet of restaurant and retail space.
The city plans to fund the project by issuing bonds, using income generated by the development to pay off the costs, pending approval by the City-County Council. Indianapolis also plans to provide $90 million in tax-increment financing for sewer and street improvements. Council members are expected to vote on the financing by the end of the year.
to read the full article... click here.
Check out Finding Surprises in the Small-Business Jobs Bill
By: Robb Mandelbaum
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
to read the full article... click here.
Monday, September 27, 2010
Liquor License Permit List!
PERMIT AUCTION - COMING SOON!
The 2010 ATC permit auction is scheduled for October 21, 2010.
To see the license permit list... click here.
The 2010 ATC permit auction is scheduled for October 21, 2010.
To see the license permit list... click here.
Check out Three Best Ways to Use Location-Based Social Media
By Riva Richmond
Wall Street Journal (WSJ.com)
Restaurants, retailers and other small businesses with storefronts are embracing location-based social networks - think Foursquare or Facebook Inc.'s Places - to woo customers and keep them coming back.
The services allow smartphone-toting customers to "check in" to a business or address, and then instantly share that information with friends and connections. Other fast-growing pioneers in the field include Brightkite Inc., Gowalla Inc. and online-review heavyweight Yelp Inc.
Marketing experts say the services offer inexpensive, easy and effective ways for a small business to get its name out and engage customers (see related article, "Getting Customer to 'Check In' With Foursquare"). Foursquare and Yelp currently offer the most developed tools for small companies that want to run promotions, though other services are developing similar ones.
If you want to try location-based service, it's easy to get started. First, find out whether your business is already listed in services popular to your area. If so, claim ownership and make sure the listed information is complete and correct. If not, add the listing yourself.
to read the full article... click here.
Wall Street Journal (WSJ.com)
Restaurants, retailers and other small businesses with storefronts are embracing location-based social networks - think Foursquare or Facebook Inc.'s Places - to woo customers and keep them coming back.
The services allow smartphone-toting customers to "check in" to a business or address, and then instantly share that information with friends and connections. Other fast-growing pioneers in the field include Brightkite Inc., Gowalla Inc. and online-review heavyweight Yelp Inc.
Marketing experts say the services offer inexpensive, easy and effective ways for a small business to get its name out and engage customers (see related article, "Getting Customer to 'Check In' With Foursquare"). Foursquare and Yelp currently offer the most developed tools for small companies that want to run promotions, though other services are developing similar ones.
If you want to try location-based service, it's easy to get started. First, find out whether your business is already listed in services popular to your area. If so, claim ownership and make sure the listed information is complete and correct. If not, add the listing yourself.
to read the full article... click here.
Wednesday, September 15, 2010
Check this out... too weird!
Only in Japan, Real Men Go to a Hotel With Virtual Girlfriends
Dating-Simulation Game a Last Resort For Honeymoon Town and Its Lonely Guests
By Daisuke Wakabayashi
ATAMI, Japan - This resort town, once popular with honeymooners, is turning to a new breed of romance seekers - virtual sweethearts.
Since the marriage rate among Japan's shrinking population is falling and with many of the country's remaining lovebirds heading for Hawaii or Australia's Gold Coast, Atami had to do something. It is trying to attract single men - and their handheld devices.
In the first month of the city's promotional campaign launched July 10, more than 1,500 male fans of the Japanese dating-simulation game LovePlus+ have flocked to Atami for a romantic date with their videogame character girlfriends.
The men are real. The girls are cartoon characters on a screen. The trips are actual, can be expensive and aim to re-create the virtual weekend outing featured in the game, a product of Konami Corp. played on Nintendo Co.'s DS videogame system.
to read the full article... click here.
Dating-Simulation Game a Last Resort For Honeymoon Town and Its Lonely Guests
By Daisuke Wakabayashi
ATAMI, Japan - This resort town, once popular with honeymooners, is turning to a new breed of romance seekers - virtual sweethearts.
Since the marriage rate among Japan's shrinking population is falling and with many of the country's remaining lovebirds heading for Hawaii or Australia's Gold Coast, Atami had to do something. It is trying to attract single men - and their handheld devices.
In the first month of the city's promotional campaign launched July 10, more than 1,500 male fans of the Japanese dating-simulation game LovePlus+ have flocked to Atami for a romantic date with their videogame character girlfriends.
The men are real. The girls are cartoon characters on a screen. The trips are actual, can be expensive and aim to re-create the virtual weekend outing featured in the game, a product of Konami Corp. played on Nintendo Co.'s DS videogame system.
to read the full article... click here.
Tuesday, September 14, 2010
Value of Free Publicity!
Eateries cash in on TV appearance
Scott Olson
September 2, 2010
IBJ.com
The venerable Edwards Drive In on Indianapolis' southeast side has built quite a clientele in its 53-year existence. But the old-fashioned eatery has attracted scores of newcomers since its national television debut last month.
Edwards, along with Bub's Burgers & Ice Cream in Carmel and Gray Brothers Cafeteria in Mooresville, were featured Aug. 18 on the Travel Channel's popoular "Man v. Food" TV show.
For Jeff Edwards, who operates the family-owned drive-in at the corner of Raymond Street and Sherman Drive with his sister, the national exposure has created quite a stir.
After the airing, Edwards instructed his staff to query customers on whether they've been to the restaurant before.
"Three out of five were brand new, which is an alarming amount considering we out 500 to 600 customers through every day," he said. "It's created a tremendous amount of travel business, because they've seen it on the show."
to read the full article... click here.
Scott Olson
September 2, 2010
IBJ.com
The venerable Edwards Drive In on Indianapolis' southeast side has built quite a clientele in its 53-year existence. But the old-fashioned eatery has attracted scores of newcomers since its national television debut last month.
Edwards, along with Bub's Burgers & Ice Cream in Carmel and Gray Brothers Cafeteria in Mooresville, were featured Aug. 18 on the Travel Channel's popoular "Man v. Food" TV show.
For Jeff Edwards, who operates the family-owned drive-in at the corner of Raymond Street and Sherman Drive with his sister, the national exposure has created quite a stir.
After the airing, Edwards instructed his staff to query customers on whether they've been to the restaurant before.
"Three out of five were brand new, which is an alarming amount considering we out 500 to 600 customers through every day," he said. "It's created a tremendous amount of travel business, because they've seen it on the show."
to read the full article... click here.
Monday, September 13, 2010
Check out... SBA Program Proves a Hit, but Now It Is in Limbo
By Ruth Simon
August 5, 2010
Wall Street Journal (WSJ.com)
Pinnacle Bank made just two loans through Small Business Administration in 2007 & 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program is the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
Across the nation, many banks have turned to the SBA's so-called 7(a) program to help unfreeze credit. Nearly 3,000 lenders have made 7(a) loans in the current fiscal year, up 21% from 2008.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting many borrowers. The agency is involved in less than 10% of all small-business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing complaints from borrowers and lenders, as lawmakers haggle over broader small-business legislation.
To read the full article... click here.
August 5, 2010
Wall Street Journal (WSJ.com)
Pinnacle Bank made just two loans through Small Business Administration in 2007 & 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.
"The SBA program is the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.
Across the nation, many banks have turned to the SBA's so-called 7(a) program to help unfreeze credit. Nearly 3,000 lenders have made 7(a) loans in the current fiscal year, up 21% from 2008.
The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting many borrowers. The agency is involved in less than 10% of all small-business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.
But the sweetened program is now in limbo, drawing complaints from borrowers and lenders, as lawmakers haggle over broader small-business legislation.
To read the full article... click here.
Wednesday, September 1, 2010
Check out A struggle to sell small businesses | PressDemocrat.com
A struggle to sell small businesses
By Robert Digitale
The Press Democrat
August 29, 2010
Carmen Campos spent two years seeking the right location for her second Carmen's Burger Bar.
Campos wanted a more visible building than her original restaurant, which sits tucked in a residential neighborhood in Santa Rosa's Town & Country Village. She found it in a small strip center next to Wells Fargo Center on Mark West Springs Road at Old Red Highway.
Campos and her husband, Alvaro Ramos, bought the shuttered pizzeria on the site and last month opened it for business. Already the couple and 14 employees are matching the sales at the original location, even though the new site is still awaiting a full liquor license.
"We're making more burgers than they are," Campos said Thursday afternoon at the Larkfield location.
Carmen's is bright spot in the battered world of small business sales.
More common are tales of owners reeling from depressed business values, buyers who can't get loans and business brokers who, over the past three years, have seen transactions plummet.
"I think the industry's probably off 50 percent from what it was," said Al Statz, owner of Exit Strategies, a business brokerage in Petaluma.
Sales of Sonoma County small businesses - cafes, markets, auto parts stores and more - declined 44 percent from 2007 to 2009, according to BizBen.com of Dublin, an online website for the sale of businesses. Sales statewide declined 46 percent.
To read the full article... click here.
By Robert Digitale
The Press Democrat
August 29, 2010
Carmen Campos spent two years seeking the right location for her second Carmen's Burger Bar.
Campos wanted a more visible building than her original restaurant, which sits tucked in a residential neighborhood in Santa Rosa's Town & Country Village. She found it in a small strip center next to Wells Fargo Center on Mark West Springs Road at Old Red Highway.
Campos and her husband, Alvaro Ramos, bought the shuttered pizzeria on the site and last month opened it for business. Already the couple and 14 employees are matching the sales at the original location, even though the new site is still awaiting a full liquor license.
"We're making more burgers than they are," Campos said Thursday afternoon at the Larkfield location.
Carmen's is bright spot in the battered world of small business sales.
More common are tales of owners reeling from depressed business values, buyers who can't get loans and business brokers who, over the past three years, have seen transactions plummet.
"I think the industry's probably off 50 percent from what it was," said Al Statz, owner of Exit Strategies, a business brokerage in Petaluma.
Sales of Sonoma County small businesses - cafes, markets, auto parts stores and more - declined 44 percent from 2007 to 2009, according to BizBen.com of Dublin, an online website for the sale of businesses. Sales statewide declined 46 percent.
To read the full article... click here.
Check out 5 Things Small Businesses Want from Washington | Business News Daily
5 Things Small Businesses Want From Washington
August 23, 2010
By Jeanette Mulvey
Business News Daily Managing Editor
Hardly a day passes without President Obama calling on Congress to pass the small business bill in September. The legislation would free up $30 billion in loans and institute a number of tax credits for small businesses. Small business owners are skeptical about how effective the bill will be.
Business News Daily asked 50 small business owners across the country how Washington can help get their businesses back on track. Five key trends emerged.
Ease lending requirements...
Repeal 1099 reporting requirements...
Make it easier to get government contracts...
Communicate better...
Get out of the way...
"Let business do what it does best: Make stuff and provide services that meet the needs of the customers." said Paul Chase, a Pennsylvania-based real estate agent. "There is certainly a need for some regulation, but companies are being regulated to death."
To read the full article... click here.
August 23, 2010
By Jeanette Mulvey
Business News Daily Managing Editor
Hardly a day passes without President Obama calling on Congress to pass the small business bill in September. The legislation would free up $30 billion in loans and institute a number of tax credits for small businesses. Small business owners are skeptical about how effective the bill will be.
Business News Daily asked 50 small business owners across the country how Washington can help get their businesses back on track. Five key trends emerged.
Ease lending requirements...
Repeal 1099 reporting requirements...
Make it easier to get government contracts...
Communicate better...
Get out of the way...
"Let business do what it does best: Make stuff and provide services that meet the needs of the customers." said Paul Chase, a Pennsylvania-based real estate agent. "There is certainly a need for some regulation, but companies are being regulated to death."
To read the full article... click here.
Tuesday, August 31, 2010
Liquor Permit Auction coming soon!
Permit Auction - The 2010 ATC permit auction is scheduled for October 21, 2010. The list of available permits and bidder registration will be posted on its site in early September.
Check out Community Colleges Offer a Wealth of Programs to Help New Entrepreneurs
The Old College Try
By Laura Lorber
Wall Street Journal, WSJ.com
A flood of new entrepreneurs find it often pays to go back to school.
Jordan Holt needed a business plan. So he went back to school.
A technician for a military contractor in Yuma, Ariz., Mr. Holt launched a side business last year, servicing and repairing generators - and quickly realized he would need to write up a formal plan if he ever wanted to borrow money for equipment. But after doing some online research, putting together a plan "looked complicated and overwhelming," he says.
He decided to get help he needed from a business-plan development course at Arizona Western College in Yuma. "I was able to take everything in my head and put it down on paper," says Mr. Holt, a 29-year-old-ex-Marine. "I truly think it could work."
As more newcomers like Mr. Holt take up entrepreneurship, community colleges are helping them along by offering more courses that teach ins and outs of running a company. Along with classes on preparing plans and judging the feasibility of a business, schools offer training in everything from management to marketing. Many colleges also offer business incubators and networking events, where students can rub shoulders with local owners.
To read the full article... click here.
By Laura Lorber
Wall Street Journal, WSJ.com
A flood of new entrepreneurs find it often pays to go back to school.
Jordan Holt needed a business plan. So he went back to school.
A technician for a military contractor in Yuma, Ariz., Mr. Holt launched a side business last year, servicing and repairing generators - and quickly realized he would need to write up a formal plan if he ever wanted to borrow money for equipment. But after doing some online research, putting together a plan "looked complicated and overwhelming," he says.
He decided to get help he needed from a business-plan development course at Arizona Western College in Yuma. "I was able to take everything in my head and put it down on paper," says Mr. Holt, a 29-year-old-ex-Marine. "I truly think it could work."
As more newcomers like Mr. Holt take up entrepreneurship, community colleges are helping them along by offering more courses that teach ins and outs of running a company. Along with classes on preparing plans and judging the feasibility of a business, schools offer training in everything from management to marketing. Many colleges also offer business incubators and networking events, where students can rub shoulders with local owners.
To read the full article... click here.
Saturday, August 14, 2010
Check out The New Abnormal - BusinessWeek
BusinessSherpa: "Great Article!!!!!! Love the term The New Abnormal."
The New Abnormal
By Devin Leonard
Business Week
In March, Ralph Ronzio went to a warehouse in a seedy part of Orange County, Calif., and watched a guy auction off his condo for half what he'd paid for it. Ronzio had bought the place for $329,000 in 2005, when he moved to Southern California from Rhode Island to take a job at a data-storage company. It was the first place he'd ever owned. "It was totally my bachelor pad," he says. "Not much inside other than the usual leather couch and the big screen TV. My fiancée made me sell the couch."
That wasn't the only thing that changed when Ronzio got engaged. His fiancée had two young children, and there wasn't enough room in the condo for all four of them. So last year, Ronzio bought a house nine miles away and they all moved in. He figured he could rent the condo and cover his costs. He figured wrong.
The more he thought about the money he was losing, the more it stressed him out. Finally, Ronzio enlisted the help of a firm called You Walk Away and did exactly that from the remaining $319,000 on his condo mortgage. When the bank foreclosed, he says he felt an enormous sense of relief. He also had more cash. He and his fiancée took the kids to Disneyland. Ronzio, 31, gave himself a treat as well. "I bought myself an iPad," he says.
It used to be that someone like Ralph Ronzio could be fairly certain of the outcome when spending a few hundred thousand dollars on real estate. Housing prices were headed in only one direction. You could surf the boom and borrow against your home equity to pay for all manner of splurges—a vacation, a flat-screen TV, the latest Apple gadget. It may have looked like a lot of debt on paper, but considering that housing prices nearly doubled from 1999 to 2006, there was always an escape hatch: Sell your house and make enough money to pay it all back.
That was the old normal. Last year, Mohamed El-Erian, CEO of PIMCO, the influential bond shop, declared a "new normal," a global realignment in which the U.S. consumer, no longer a hungry monster, became cautious and subdued.
The current circumstances might be better described as the new abnormal, in which no one knows anything.
To read the full article… click here.
The New Abnormal
By Devin Leonard
Business Week
In March, Ralph Ronzio went to a warehouse in a seedy part of Orange County, Calif., and watched a guy auction off his condo for half what he'd paid for it. Ronzio had bought the place for $329,000 in 2005, when he moved to Southern California from Rhode Island to take a job at a data-storage company. It was the first place he'd ever owned. "It was totally my bachelor pad," he says. "Not much inside other than the usual leather couch and the big screen TV. My fiancée made me sell the couch."
That wasn't the only thing that changed when Ronzio got engaged. His fiancée had two young children, and there wasn't enough room in the condo for all four of them. So last year, Ronzio bought a house nine miles away and they all moved in. He figured he could rent the condo and cover his costs. He figured wrong.
The more he thought about the money he was losing, the more it stressed him out. Finally, Ronzio enlisted the help of a firm called You Walk Away and did exactly that from the remaining $319,000 on his condo mortgage. When the bank foreclosed, he says he felt an enormous sense of relief. He also had more cash. He and his fiancée took the kids to Disneyland. Ronzio, 31, gave himself a treat as well. "I bought myself an iPad," he says.
It used to be that someone like Ralph Ronzio could be fairly certain of the outcome when spending a few hundred thousand dollars on real estate. Housing prices were headed in only one direction. You could surf the boom and borrow against your home equity to pay for all manner of splurges—a vacation, a flat-screen TV, the latest Apple gadget. It may have looked like a lot of debt on paper, but considering that housing prices nearly doubled from 1999 to 2006, there was always an escape hatch: Sell your house and make enough money to pay it all back.
That was the old normal. Last year, Mohamed El-Erian, CEO of PIMCO, the influential bond shop, declared a "new normal," a global realignment in which the U.S. consumer, no longer a hungry monster, became cautious and subdued.
The current circumstances might be better described as the new abnormal, in which no one knows anything.
To read the full article… click here.
Tuesday, August 3, 2010
Let's discuss economic "recovery" for local small businesses...
By the local Business Sherpa himself, Larry Battershell.
The longer I talk to small business owners around the Indianapolis area and listen to endless tales of woe, the more convinced I am that the much touted economic "recovery" is not either U shaped or W shaped but more of a descending staircase--down a few steps-plateau, down a few more steps--plateau,etc....guess its better than a fast plunge on free falling elevator....... I will keep looking for the "green shoots".
The longer I talk to small business owners around the Indianapolis area and listen to endless tales of woe, the more convinced I am that the much touted economic "recovery" is not either U shaped or W shaped but more of a descending staircase--down a few steps-plateau, down a few more steps--plateau,etc....guess its better than a fast plunge on free falling elevator....... I will keep looking for the "green shoots".
Check out my Spotlight of Businesses for Sale!
To view click the image...
If any of the businesses shown here interest you... contact me.
Click here to email the Business Sherpa.
Check out... Media That Inspires: Temple Grandin
Media That Inspires: Temple Grandin
By: Jenny Inglee, July 2010
"Media That Inspires" is an ongoing conversation at TakePart that recognizes the power that films, books, and other media have to compel change and prompt action. TakePart is asking people who make a difference every day about the works that have inspired them.
Temple Grandin may very well be the most accomplished person with autism in the world.
A renowned animal scientist and best-selling author, Grandin has changed the way people think about animal behavior and has transformed public perception of the autistic mind.
Her autism, Grandin believes, is what helps her see things as animals do. And because of that insight, many cows and pigs in the U.S. are given a better quality of life and a more humane slaughter.
When interviewed about the media that inspires her, Grandin explained that she thinks in pictures. “Being autistic," she says, "I have to troll through the Internet in my mind. It’s sort of like surfing on the computer.”
To read the full article... click here.
By: Jenny Inglee, July 2010
"Media That Inspires" is an ongoing conversation at TakePart that recognizes the power that films, books, and other media have to compel change and prompt action. TakePart is asking people who make a difference every day about the works that have inspired them.
Temple Grandin may very well be the most accomplished person with autism in the world.
A renowned animal scientist and best-selling author, Grandin has changed the way people think about animal behavior and has transformed public perception of the autistic mind.
Her autism, Grandin believes, is what helps her see things as animals do. And because of that insight, many cows and pigs in the U.S. are given a better quality of life and a more humane slaughter.
When interviewed about the media that inspires her, Grandin explained that she thinks in pictures. “Being autistic," she says, "I have to troll through the Internet in my mind. It’s sort of like surfing on the computer.”
To read the full article... click here.
Friday, July 30, 2010
check out... Getting an SBA Loan: 5 Things You Need to Know
Getting an SBA Loan: 5 Things You Need to Know
Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.
Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.
Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.
- Know the lingo.
- Document everything.
- Got collateral?
- Do your homework. Seriously.
- You are not a risk taker
to read the full article … click here.
Thursday, July 29, 2010
Check out... Specialized brewery finds home in Fountain Square
Specialized brewery finds home in Fountain Square
By Sarah Richcreek / Star correspondent
IndyStar.com
As consumers look for more hand-crafted goods and a back-to-basics approach, one very specialized brewery has found a home in Fountain Square.
New Day Meadery is the only meadery in Indiana, and one of only 60 in the nation. Husband-and-wife team Brett Canaday and Tia Agnew began production in Elwood in 2001. In June, they opened a Fountain Square shop with a tasting room at 1102 Prospect St.
Mead, in essence, is honey wine. Because mead contains no grapes, which are naturally high in sugar, the fruit in mead needs the added sugar of the honey to increase the alcohol content.
Canaday and Agnew offer eight varieties, from dry to sweet. (Bottles range from $12 to $25.) Their tasting room is open to walk-ins, who can experience a single taste up to a full flight for a fee.
Canaday and Agnew plan to collaborate with local restaurants to provide food for larger tastings and parties, and they hope to host private cooking demonstrations.
By Sarah Richcreek / Star correspondent
IndyStar.com
As consumers look for more hand-crafted goods and a back-to-basics approach, one very specialized brewery has found a home in Fountain Square.
New Day Meadery is the only meadery in Indiana, and one of only 60 in the nation. Husband-and-wife team Brett Canaday and Tia Agnew began production in Elwood in 2001. In June, they opened a Fountain Square shop with a tasting room at 1102 Prospect St.
Mead, in essence, is honey wine. Because mead contains no grapes, which are naturally high in sugar, the fruit in mead needs the added sugar of the honey to increase the alcohol content.
Canaday and Agnew offer eight varieties, from dry to sweet. (Bottles range from $12 to $25.) Their tasting room is open to walk-ins, who can experience a single taste up to a full flight for a fee.
Canaday and Agnew plan to collaborate with local restaurants to provide food for larger tastings and parties, and they hope to host private cooking demonstrations.
Wednesday, July 28, 2010
Check out... The Art (and Journey) of Raising Funds
The Art (and Journey) of Raising Funds
By ROSALIND RESNICK
For an entrepreneurial start-up, landing that first check from an investor is a milestone.
What many start-ups don't realize is that the seed capital they raise – often from friends and family – is just the first step in a fundraising journey that can drag on for months or even years.
My client, John White, is more than two years into the process of securing $14 million in funding for his company, Joy Berry Enterprises Inc., which plans to republish the works of popular children's author Joy Berry across multiple media platforms. In June 2008, he and partner John Bellaud won their first $600,000 from angels to jumpstart the company—and expected smooth sailing from that point on...
to read the full article... click here.
By ROSALIND RESNICK
For an entrepreneurial start-up, landing that first check from an investor is a milestone.
What many start-ups don't realize is that the seed capital they raise – often from friends and family – is just the first step in a fundraising journey that can drag on for months or even years.
My client, John White, is more than two years into the process of securing $14 million in funding for his company, Joy Berry Enterprises Inc., which plans to republish the works of popular children's author Joy Berry across multiple media platforms. In June 2008, he and partner John Bellaud won their first $600,000 from angels to jumpstart the company—and expected smooth sailing from that point on...
to read the full article... click here.
Saturday, July 17, 2010
Check out Loans to Small Businesses Plummet...
Business Sherpa: "Not so good news on the small business loan front."
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Friday, July 16, 2010
Check out Dallara plans $7M facility in Speedway… new jobs!
Dallara plans $7M facility in Speedway for IndyCar
IBJ.com & Associated Press
July 14, 2010
Italian-based racing company Dallara has won the competition to create the new chassis for the IndyCar Series and plans to open operations in Speedway to build it.
The company's first expansion outside Italy could create more than 80 new jobs in Speedway. Dallara will move into a new, state-of-the-art technology center located on Main Street, investing $7 million into the facility.
Cars will feature a rolling chassis with an enhanced safety cell, and manufacturers will be able to dress the cars in multiple ways.
IndyCar made the announcement Wednesday. IndyCar CEO Randy Bernard said the cars will be ready to go in 18 months.
To read the full article… click here.
IBJ.com & Associated Press
July 14, 2010
Italian-based racing company Dallara has won the competition to create the new chassis for the IndyCar Series and plans to open operations in Speedway to build it.
The company's first expansion outside Italy could create more than 80 new jobs in Speedway. Dallara will move into a new, state-of-the-art technology center located on Main Street, investing $7 million into the facility.
Cars will feature a rolling chassis with an enhanced safety cell, and manufacturers will be able to dress the cars in multiple ways.
IndyCar made the announcement Wednesday. IndyCar CEO Randy Bernard said the cars will be ready to go in 18 months.
To read the full article… click here.
Thursday, July 15, 2010
Check out And Now, the Tricky Part: Naming Your Small Business - WSJ.com
Business Sherpa: "Hey guys, check out this interesting article..."
And Now, the Tricky Part: Naming Your Business
By EMILY MALTBY
WSJ.com, Small Business
Jake Schwarz, an attorney, spent months trying to settle on a name for his law firm.
He considered using the founders' names, as many law firms do, but "Iida, Schwarz and Prenton" was awkward to spell and pronounce. He contemplated "Lighthouse Law Group" and "Summit Legal Partners" but thought they sounded like motivational posters. Some of the more promising names he mulled were "Consilium" and "Acuity Law Group," but he realized that half his clients, based in Japan, would struggle with the phonetics.
"Literally, I was banging my head against the wall," Mr. Schwarz recalls.
As many entrepreneurs can attest, deciding on a name for a new business is no easy task. One with pizzazz can set a new company apart; one that misses the mark can make a burgeoning start-up fall flat.
The problem, marketing and branding experts agree, is that there is no magic bullet to picking the best name.
To read the full article... click here.
And Now, the Tricky Part: Naming Your Business
By EMILY MALTBY
WSJ.com, Small Business
Jake Schwarz, an attorney, spent months trying to settle on a name for his law firm.
He considered using the founders' names, as many law firms do, but "Iida, Schwarz and Prenton" was awkward to spell and pronounce. He contemplated "Lighthouse Law Group" and "Summit Legal Partners" but thought they sounded like motivational posters. Some of the more promising names he mulled were "Consilium" and "Acuity Law Group," but he realized that half his clients, based in Japan, would struggle with the phonetics.
"Literally, I was banging my head against the wall," Mr. Schwarz recalls.
As many entrepreneurs can attest, deciding on a name for a new business is no easy task. One with pizzazz can set a new company apart; one that misses the mark can make a burgeoning start-up fall flat.
The problem, marketing and branding experts agree, is that there is no magic bullet to picking the best name.
To read the full article... click here.
Wednesday, July 7, 2010
Check out Thirst rises for liquor licenses in Marion County
Thirst rises for liquor licenses in Marion County
IBJ.com
Finding the golden ticket of a liquor license in Indianapolis can be tricky—and costly. All 321 permits allowed in Marion County under a state quota have been allotted. Unless a restaurant is opening in an “off-quota” district, the owner has to find someone willing to transfer an existing license.
Contact me to find out more about existing bars/restaurants for sale in Indianapolis!
Inbizsales@aol.com
IBJ.com
Finding the golden ticket of a liquor license in Indianapolis can be tricky—and costly. All 321 permits allowed in Marion County under a state quota have been allotted. Unless a restaurant is opening in an “off-quota” district, the owner has to find someone willing to transfer an existing license.
Contact me to find out more about existing bars/restaurants for sale in Indianapolis!
Inbizsales@aol.com
Tuesday, July 6, 2010
Check out... Get ready for the tanning tax
By Natasha Altamirano, Special to CNN
June 30, 2010 2:02 p.m. EDT
Editor's note: Natasha Altamirano is manager of media relations for the Tax Foundation, a nonprofit, nonpartisan research and educational organization that monitors fiscal policy at the federal, state and local levels.
Washington (CNN) -- Put away those plastic mini-goggles and grab your favorite tube of self-tanner. The first new tax to fund health care reform goes into effect Thursday -- a 10 percent excise tax on indoor tanning services.
The tanning industry is just the latest victim of government paternalism, putting it in the same category as cigarettes, alcohol, gambling, sodas, trans fats, junk food and other targets of so-called "sin taxes."
Desperate for revenue and lacking the guts to curtail big special-interest tax breaks such as the employer-provided health insurance exclusion or the mortgage interest deduction, congressional leaders and the president have singled out a politically vulnerable target. Kind of like a pride of lions singling out the weakest wildebeest.
To read full article… click here.
Check out Steven Levitt: The man who made economics freaky
The man who made economics freaky
By David Futrelle, Money Magazine
June 14, 2010
Had Steven Levitt taught your college Econ 101 lecture, you'd surely remember more of it. The University of Chicago professor takes the basic tools of economics -- reams and reams of data, and the understanding that human beings respond to incentives for gain -- and applies them to surprising new subjects.
In "Freakonomics" and "SuperFreakonomics," his bestselling books written with journalist Stephen Dubner, he's argued that sumo wrestlers probably cheat, explained why many drug dealers earn less than minimum wage, and shown that the introduction of television correlated with a spike in crime.
In one of his few studies about everyday money matters, he made the case that you probably can't rely on your real estate agent's advice to get the best possible price for your house. By turning economics into a good story, Levitt has become his field's greatest popularizer -- the Carl Sagan of number crunchers.
No wonder he was the hands-down readers' choice for this month's Visionaries interview. We asked Levitt to answer your burning economic questions; Money contributing writer David Futrelle chimed in with a few of his own. Edited excerpts follow.
To read the full article... click here.
By David Futrelle, Money Magazine
June 14, 2010
Had Steven Levitt taught your college Econ 101 lecture, you'd surely remember more of it. The University of Chicago professor takes the basic tools of economics -- reams and reams of data, and the understanding that human beings respond to incentives for gain -- and applies them to surprising new subjects.
In "Freakonomics" and "SuperFreakonomics," his bestselling books written with journalist Stephen Dubner, he's argued that sumo wrestlers probably cheat, explained why many drug dealers earn less than minimum wage, and shown that the introduction of television correlated with a spike in crime.
In one of his few studies about everyday money matters, he made the case that you probably can't rely on your real estate agent's advice to get the best possible price for your house. By turning economics into a good story, Levitt has become his field's greatest popularizer -- the Carl Sagan of number crunchers.
No wonder he was the hands-down readers' choice for this month's Visionaries interview. We asked Levitt to answer your burning economic questions; Money contributing writer David Futrelle chimed in with a few of his own. Edited excerpts follow.
To read the full article... click here.
Friday, June 25, 2010
The SBA Has a Deal for You
It's called a 504 loan. Here's what you need to know about it.
By Marshall Eckblad
Wall Street Journal: Small Business Online
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read more... click here.
By Marshall Eckblad
Wall Street Journal: Small Business Online
June 21, 2010
The government is trying to entice more small businesses to tap one of its loan programs. Before applying for one of these loans, though, there are some fine points borrowers should consider.
The Small Business Administration's 504 loan program lets companies take out fixed-rate financing to buy property, build or expand facilities, or refinance some existing mortgages. The borrower typically needs to put down just 10% of the transaction's total price.
With the weak economy deterring many small businesses from expanding in the past couple of years, demand for these loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals.
To read more... click here.
Monday, June 14, 2010
The Hidden Values in Your Business
Surveys have shown that a majority of business owners have no idea what their business is worth, that they have a majority of their net worth tied up in their business, and that they do not have an exit strategy. A business broker professional is a good person to call on to get an idea of what the business might sell for in the marketplace.
Certainly, the financials carry a lot of weight in figuring what a particular business will bring in the marketplace. However, a professional business broker can also tell you about those hidden values your business most likely possesses. It's these hidden values that often capture the interest of buyers and make a business more valuable than what the numbers suggest. Keep them in mind when placing a price on your business, and make sure that a prospective buyer is made aware of them. They might be called the non-financial value of the business.
To learn more about the specific hidden values read the full article... click here.
Certainly, the financials carry a lot of weight in figuring what a particular business will bring in the marketplace. However, a professional business broker can also tell you about those hidden values your business most likely possesses. It's these hidden values that often capture the interest of buyers and make a business more valuable than what the numbers suggest. Keep them in mind when placing a price on your business, and make sure that a prospective buyer is made aware of them. They might be called the non-financial value of the business.
To learn more about the specific hidden values read the full article... click here.
Friday, June 11, 2010
Sometimes a bailout can actually prevent progress and growth...
I have followed with fascination the debate about whether or not to bailout banks, car companies etc and the long term effects on our economic system.
I was then struck by a recent example of a situation of where there wasn't a bailout for a struggling local business.
A local bar which was in a great location was failing because of poor and inept management--the place was a mess and eventually closed its doors and the owners suffered a significant economic loss. Enter another set of entrepreneurs who picked up the location at a bargain and who went in and did a significant renovation. A new successful and popular establishment emerged--generating lots more revenue and taxes--employing many more people. The question I ask--what would have been gained if the old bar and gotten a "bailout" and had been allowed to stay in business and limp along following its old management ways?
Tell me what you think...
I was then struck by a recent example of a situation of where there wasn't a bailout for a struggling local business.
A local bar which was in a great location was failing because of poor and inept management--the place was a mess and eventually closed its doors and the owners suffered a significant economic loss. Enter another set of entrepreneurs who picked up the location at a bargain and who went in and did a significant renovation. A new successful and popular establishment emerged--generating lots more revenue and taxes--employing many more people. The question I ask--what would have been gained if the old bar and gotten a "bailout" and had been allowed to stay in business and limp along following its old management ways?
Tell me what you think...
Travel Fashion No-Nos
by Sherri Eisenberg S
AOL Travel online
May 25th 2010
Most people would kill for Samantha Brown's job. The Travel Channel host spends 230 days a year covering about 100,000 miles for shows like "Samantha Brown's Great Weekends", now in it's second season. She is also wrapping up "Samantha Brown's Destinations" and "Samantha Brown's Asia". Her last trip? To Indonesia. It took her 36 hours to get home. "The trip began on a horse and cart, then a boat, a car, and 4 plane rides later I was home," she says.
Like any seasoned traveler, Brown has learned a thing or two about cultural differences over the years, especially about what to pack to blend in with the locals. "I know that what works for job interviews also works in travel," says Brown. "First impressions mean a lot and looking good has a lot to do with that." Taking cues from the local style does more than make you more comfortable, she says, it also protects you. "You want to dress as close to as the locals do if only as to not be targeted as a tourist with a nice camera and wallet full of money and credit cards, even if you have neither," says Brown. But what works on one continent doesn't necessarily work on another. Here Brown shares with us her best advice on how to dress for the destination, culled from a decade on the road.
To read the rest of the article... click here.
AOL Travel online
May 25th 2010
Most people would kill for Samantha Brown's job. The Travel Channel host spends 230 days a year covering about 100,000 miles for shows like "Samantha Brown's Great Weekends", now in it's second season. She is also wrapping up "Samantha Brown's Destinations" and "Samantha Brown's Asia". Her last trip? To Indonesia. It took her 36 hours to get home. "The trip began on a horse and cart, then a boat, a car, and 4 plane rides later I was home," she says.
Like any seasoned traveler, Brown has learned a thing or two about cultural differences over the years, especially about what to pack to blend in with the locals. "I know that what works for job interviews also works in travel," says Brown. "First impressions mean a lot and looking good has a lot to do with that." Taking cues from the local style does more than make you more comfortable, she says, it also protects you. "You want to dress as close to as the locals do if only as to not be targeted as a tourist with a nice camera and wallet full of money and credit cards, even if you have neither," says Brown. But what works on one continent doesn't necessarily work on another. Here Brown shares with us her best advice on how to dress for the destination, culled from a decade on the road.
To read the rest of the article... click here.
Wednesday, June 2, 2010
US money supply plunges at 1930s pace as Obama eyes fresh stimulus
The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.
By Ambrose Evans-Pritchard
Telegraph.co.uk
The M3 figures - which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance - began shrinking last summer. The pace has since quickened.
The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever.
"It’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said.
The US authorities have an entirely different explanation for the failure of stimulus measures to gain full traction. They are opting instead for yet further doses of Keynesian spending, despite warnings from the IMF that the gross public debt of the US will reach 97pc of GDP next year and 110pc by 2015.
To read the full article... click here.
By Ambrose Evans-Pritchard
Telegraph.co.uk
The M3 figures - which include broad range of bank accounts and are tracked by British and European monetarists for warning signals about the direction of the US economy a year or so in advance - began shrinking last summer. The pace has since quickened.
The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever.
"It’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said.
The US authorities have an entirely different explanation for the failure of stimulus measures to gain full traction. They are opting instead for yet further doses of Keynesian spending, despite warnings from the IMF that the gross public debt of the US will reach 97pc of GDP next year and 110pc by 2015.
To read the full article... click here.
Merchants Push Sales Through Social Media
Early Adopters Add Shopping-Cart Apps to Fan Pages to Sell Items, Services
By: Sarah E. Needleman
The Wall Street Journal: Small Business Online
After learning how to market themselves through tweets and status updates, some small companies are taking the next step: selling directly to consumers via social-networking sites.
Merchants on Facebook and MySpace are adding e-commerce stores to their fan pages, hoping users will scan lists of for-sale items and services—such as floral bouquets, hand-crafted jewelry and spa treatments—and click a button to add them to online shopping carts. (MySpace is owned by News Corp., publisher of The Wall Street Journal.)
The e-commerce trend, also being adopted by large companies such as Hallmark Cards Inc. and Brooks Brothers Inc., so far appears limited to Facebook and MySpace, where applications for selling directly to consumers started cropping up in 2008. Other popular social-networking sites, such as Twitter and LinkedIn, don't offer a direct-sale platform.
Early adopters say they've so far seen only modest results, and generally not until after they've established a loyal-fan following.
To read more… click here.
By: Sarah E. Needleman
The Wall Street Journal: Small Business Online
After learning how to market themselves through tweets and status updates, some small companies are taking the next step: selling directly to consumers via social-networking sites.
Merchants on Facebook and MySpace are adding e-commerce stores to their fan pages, hoping users will scan lists of for-sale items and services—such as floral bouquets, hand-crafted jewelry and spa treatments—and click a button to add them to online shopping carts. (MySpace is owned by News Corp., publisher of The Wall Street Journal.)
The e-commerce trend, also being adopted by large companies such as Hallmark Cards Inc. and Brooks Brothers Inc., so far appears limited to Facebook and MySpace, where applications for selling directly to consumers started cropping up in 2008. Other popular social-networking sites, such as Twitter and LinkedIn, don't offer a direct-sale platform.
Early adopters say they've so far seen only modest results, and generally not until after they've established a loyal-fan following.
To read more… click here.
Tuesday, June 1, 2010
Check Out "Boutique Hotels Go Mainstream"
By: Matthew Link
AOL Travel
It used to be that the words "chain hotel" conjured up images of beige rooms that are exactly the same from city to city. Not anymore. A new crop of boutique hotel groups is turning the chain concept on its head with smaller properties that incorporate local style and flare with the service and stability that you expect from major chains. "Travelers are increasingly looking for one-off, 'bespoke' experiences and the cookie-cutter people-mover product that was entrenched until the 1990s seems to have had its day," says veteran travel journalist Gretchen Kelly.
The boutique chain trend has been steadily growing and it now seems like every large hotel chain is trying to cash in. In fact, 18 chain-owned boutique hotels are slated to open in the U.S. in 2010.
To read more… click here.
AOL Travel
It used to be that the words "chain hotel" conjured up images of beige rooms that are exactly the same from city to city. Not anymore. A new crop of boutique hotel groups is turning the chain concept on its head with smaller properties that incorporate local style and flare with the service and stability that you expect from major chains. "Travelers are increasingly looking for one-off, 'bespoke' experiences and the cookie-cutter people-mover product that was entrenched until the 1990s seems to have had its day," says veteran travel journalist Gretchen Kelly.
The boutique chain trend has been steadily growing and it now seems like every large hotel chain is trying to cash in. In fact, 18 chain-owned boutique hotels are slated to open in the U.S. in 2010.
To read more… click here.
Wednesday, May 26, 2010
Three Best Ways to Court a Community Bank
By EMILY MALTBY
Wall Street Journal, WSJ.com
Discouraged by big-bank practices and bureaucratic procedures, many Main Street firms have "gone local" with their lenders. Community banks are often more willing than their larger counterparts to conduct business on a handshake because they understand the needs of their neighboring establishments and, in many cases, have underwriters in-house to approve loans.
In exchange, however, those lenders expect more from their borrowers. "It's like that old saying, dig a well before you are thirsty," says Brian Carlson, president of Excel National Bank, a standalone lender in Beverly Hills. "It can take some time before [a banker] says, 'I know this guy and I'm confident he'll do what he says he'll do.' Having that relationship is valuable because if you need $300,000 by the end of the week to take advantage of an opportunity, the bank will jump to get it done."
Here are the three best ways to develop a relationship with a community lender:
To read more... click here.
Wall Street Journal, WSJ.com
Discouraged by big-bank practices and bureaucratic procedures, many Main Street firms have "gone local" with their lenders. Community banks are often more willing than their larger counterparts to conduct business on a handshake because they understand the needs of their neighboring establishments and, in many cases, have underwriters in-house to approve loans.
In exchange, however, those lenders expect more from their borrowers. "It's like that old saying, dig a well before you are thirsty," says Brian Carlson, president of Excel National Bank, a standalone lender in Beverly Hills. "It can take some time before [a banker] says, 'I know this guy and I'm confident he'll do what he says he'll do.' Having that relationship is valuable because if you need $300,000 by the end of the week to take advantage of an opportunity, the bank will jump to get it done."
Here are the three best ways to develop a relationship with a community lender:
To read more... click here.
Monday, May 24, 2010
U.S. Banks Post Profits, but Woes Persist
Sherpa--This might be a clue as to why credit is so tight.
By MICHAEL R. CRITTENDEN
Wall Street Journal, WSJ.com
WASHINGTON—A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corp.'s list of "problem" institutions in the first quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets.
Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climbing for the 16th consecutive quarter, FDIC officials said in a briefing on Thursday.
"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair said.
There were 702 on the FDIC's "problem" bank list at the end of 2009 and 252 at the end of 2008.
FDIC officials said they expected the number of failed banks to peak this year after climbing steadily over the past three years. Regulators have shut 72 banks so far this year, more than double the number closed by this time last year. Ms. Bair said regulators were preparing for a steady pace of additional closures through the end of the year. A total of 237 banks have failed since the beginning of 2008.
The failures continue to strain the FDIC's fund to protect consumer deposits, although officials signaled they were confident they had enough cash on hand to deal with the expected spate of failures, without having to assess new fees on the banking industry. The agency's deposit insurance fund stood at negative-$20.7 billion at the end of the first quarter, a slight improvement from the end of 2009.
"We have the necessary industry-funded resources to complete the cleanup," Ms. Bair said, in a reference to the fees that the agency assesses on banks for insuring their deposits.
Banks, squeezed by problem loans and the continued recession, responded by reducing their lending. The industry's total loan balances grew by 3% during the quarter, but the increase was due to accounting changes that required banks to bring securitized assets back onto their balance sheets. Without taking into account these accounting changes, lending would have declined for the seventh straight quarter, as banks cut back across most major lending categories.
To read the full article …click here.
By MICHAEL R. CRITTENDEN
Wall Street Journal, WSJ.com
WASHINGTON—A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corp.'s list of "problem" institutions in the first quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets.
Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climbing for the 16th consecutive quarter, FDIC officials said in a briefing on Thursday.
"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair said.
There were 702 on the FDIC's "problem" bank list at the end of 2009 and 252 at the end of 2008.
FDIC officials said they expected the number of failed banks to peak this year after climbing steadily over the past three years. Regulators have shut 72 banks so far this year, more than double the number closed by this time last year. Ms. Bair said regulators were preparing for a steady pace of additional closures through the end of the year. A total of 237 banks have failed since the beginning of 2008.
The failures continue to strain the FDIC's fund to protect consumer deposits, although officials signaled they were confident they had enough cash on hand to deal with the expected spate of failures, without having to assess new fees on the banking industry. The agency's deposit insurance fund stood at negative-$20.7 billion at the end of the first quarter, a slight improvement from the end of 2009.
"We have the necessary industry-funded resources to complete the cleanup," Ms. Bair said, in a reference to the fees that the agency assesses on banks for insuring their deposits.
Banks, squeezed by problem loans and the continued recession, responded by reducing their lending. The industry's total loan balances grew by 3% during the quarter, but the increase was due to accounting changes that required banks to bring securitized assets back onto their balance sheets. Without taking into account these accounting changes, lending would have declined for the seventh straight quarter, as banks cut back across most major lending categories.
To read the full article …click here.
Buying a Business: 5 Things You Need to Know
Buying a existing business can be easier than starting one from scratch. How to find the right opportunity, raise enough money, and get a good price.
By Darren Dahl
With increasing signs that the economy is improving, and the credit markets beginning to loosen up again, the business-for-sale market is sure to see an uptick. In fact, the number of businesses sold during the first quarter of 2010 rose 6.3 percent over the fourth quarter of last year, according to BizBuySell, an online marketplace for business postings. Sometimes, buying an existing business can be a lot easier than starting one from scratch. What are the best ways to get started? Here are five things you need to know.
To read the full article click here...
Then, let's discuss...
By Darren Dahl
With increasing signs that the economy is improving, and the credit markets beginning to loosen up again, the business-for-sale market is sure to see an uptick. In fact, the number of businesses sold during the first quarter of 2010 rose 6.3 percent over the fourth quarter of last year, according to BizBuySell, an online marketplace for business postings. Sometimes, buying an existing business can be a lot easier than starting one from scratch. What are the best ways to get started? Here are five things you need to know.
- Know what kind of business is right for you.
- Line up your financing ahead of time.
- Assemble a team of professionals.
- Place a value on the business.
- Start looking and spread the word.
To read the full article click here...
Then, let's discuss...
Saturday, May 22, 2010
Sunday, May 16, 2010
INSIDE DISH: Real estate deals central to success for Santorini
By: Mason King
IBJ.com, Inside Dish
Santorini Greek Kitchen, the realized dream of restaurateur Taki Sawi and one of the flagship eateries in the rebounding Fountain Square neighborhood. Growing up in Greece, Sawi developed a love for restaurants and worked his way up from dishwasher to chef. He met his future wife, Jeanette, in 1996 while she was traveling through Greece. One of his first questions to her: "How would you feel about marrying a restaurateur?"
They made their home in Indiana and opened the first version of Santorini Greek Kitchen in 2001 at 1112 Shelby St. in Fountain Square. The small eatery in a leased space was an instant success, but the experience with the $150,000 startup filled Taki with a certain dread. "Never ever put all your eggs in one basket," he says now, recalling putting both his and his mother-in-law's house up as collateral for loans.Sawi was convinced that with only 40-some seats he was leaving money on the table. In 2003, community development corporation Southeast Neighborhood Development secured an $850,000 loan to purchase and renovate a former bar and restaurant space at 1417 E. Prospect St., and signed Sawi to a lease-to-purchase agreement. He since has acquired the much larger space.
The importance of controlling his location is not lost on Taki.
To read more and view a video of Taki explaining how controlling the real estate around him was key to his Santorini's successs ... click here.
IBJ.com, Inside Dish
Santorini Greek Kitchen, the realized dream of restaurateur Taki Sawi and one of the flagship eateries in the rebounding Fountain Square neighborhood. Growing up in Greece, Sawi developed a love for restaurants and worked his way up from dishwasher to chef. He met his future wife, Jeanette, in 1996 while she was traveling through Greece. One of his first questions to her: "How would you feel about marrying a restaurateur?"
They made their home in Indiana and opened the first version of Santorini Greek Kitchen in 2001 at 1112 Shelby St. in Fountain Square. The small eatery in a leased space was an instant success, but the experience with the $150,000 startup filled Taki with a certain dread. "Never ever put all your eggs in one basket," he says now, recalling putting both his and his mother-in-law's house up as collateral for loans.Sawi was convinced that with only 40-some seats he was leaving money on the table. In 2003, community development corporation Southeast Neighborhood Development secured an $850,000 loan to purchase and renovate a former bar and restaurant space at 1417 E. Prospect St., and signed Sawi to a lease-to-purchase agreement. He since has acquired the much larger space.
The importance of controlling his location is not lost on Taki.
To read more and view a video of Taki explaining how controlling the real estate around him was key to his Santorini's successs ... click here.
Friday, May 14, 2010
Friday, May 7, 2010
Know Where You Want To Go... Alice and the Cat
Alice and the Cat: Quotes: Alice in Wonderland
Alice: Would you tell me, please, which way I ought to go from here?
The Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cat: Then it doesn't much matter which way you go.
Alice: …so long as I get somewhere.
The Cat: Oh, you're sure ...to do that, if only you walk long enough.
Business Sherpa: "Many business purchasers are like Alice when they buy a business as they have no plan or vision for the direction of the business which they have purchased they just want it go somewhere, those who have a plan or vision usually are much more successful, just running the business is not a very good plan, but it will get you "somewhere"--bankruptcy court???"
Alice: Would you tell me, please, which way I ought to go from here?
The Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cat: Then it doesn't much matter which way you go.
Alice: …so long as I get somewhere.
The Cat: Oh, you're sure ...to do that, if only you walk long enough.
Business Sherpa: "Many business purchasers are like Alice when they buy a business as they have no plan or vision for the direction of the business which they have purchased they just want it go somewhere, those who have a plan or vision usually are much more successful, just running the business is not a very good plan, but it will get you "somewhere"--bankruptcy court???"
Saturday, May 1, 2010
End Of an Era... Paul Paquette
One of my favorite bankers is leaving the profession to follow a different career path. Paul Paquette at Wells Fargo has been one of the area's top SBA lenders. Paul has been known for his diligence, hard work and professionalism. I liked working with Paul as he was quick to give a "yes" or "no" on a deal, and if it was a "yes" he worked hard to close the loan. In addition he was always patient with my "lobbying" about the merits of a transaction. Good luck Paul in your new career!!!!
Friday, April 23, 2010
Small Business Owners Still Doubtful about Economic Turnaround
Blog By JULIA L. ROGERS, AOL SMALL BUSINESS
Small businesses aren't quite buying the reality of economic recovery yet, reveals a survey conducted by the National Federation of Independent Business (NFIB) in March. Most have continued to be tight-budgeted, stalling hiring and expansion in the sector.
Entrepreneurs in small companies across industries are still frustrated as they watch larger companies get low-interest credit and enjoy rejuvenated businesses. Unfortunately, their pessimism and failure to take advantage of all benefits offered to them is seriously affecting the strength and speed of the recovery. Because of sour attitudes among those in the small business community, economic experts believe that President Barack Obama has his work cut out for him as he attempts to move forward with fresh policies to help smaller companies add jobs and expand. Reuters reports that issues related to employment and job opportunities are critical in this congressional election year and could make or break results...
To read the full article... click here.
Small businesses aren't quite buying the reality of economic recovery yet, reveals a survey conducted by the National Federation of Independent Business (NFIB) in March. Most have continued to be tight-budgeted, stalling hiring and expansion in the sector.
Entrepreneurs in small companies across industries are still frustrated as they watch larger companies get low-interest credit and enjoy rejuvenated businesses. Unfortunately, their pessimism and failure to take advantage of all benefits offered to them is seriously affecting the strength and speed of the recovery. Because of sour attitudes among those in the small business community, economic experts believe that President Barack Obama has his work cut out for him as he attempts to move forward with fresh policies to help smaller companies add jobs and expand. Reuters reports that issues related to employment and job opportunities are critical in this congressional election year and could make or break results...
To read the full article... click here.
Thursday, April 22, 2010
Turkey's Moment
Its economy is hot again after a painful 2009, and some economists say it's a Germany in the making. The politics, though, are raucous.
Istanbul. Turkey has prospered while tension between Islamists and secularists has increased Kathryn Cook/Agence Vu/Aurora
To read more... click here.
Istanbul. Turkey has prospered while tension between Islamists and secularists has increased Kathryn Cook/Agence Vu/Aurora
To read more... click here.
Wednesday, April 21, 2010
Congrats Taki Sawi of Santorini Greek Kitchen!!!!
2010 Faces of Diversity American Dream Award winner: Taki Sawi
Business Sherpa says...
"One of Indy's best restauranteurs, congratulations Taki!!!!! If you haven't been to his restaurant--check it out for a real treat."
To view video go to... http://www.youtube.com/watch?v=FZjvwbCY2PU&feature=player_embedded
Business Sherpa says...
"One of Indy's best restauranteurs, congratulations Taki!!!!! If you haven't been to his restaurant--check it out for a real treat."
To view video go to... http://www.youtube.com/watch?v=FZjvwbCY2PU&feature=player_embedded
Friday, April 16, 2010
How I Did It: Jerry Murrell, Five Guys Burgers and Fries
Along with his sons, Jerry Murrell of Five Guys Burgers and Fries built a 570-store chain that enjoys a cult following.
Business Sherpa says... "Interesting read for anyone in the food business."
As Told to Liz Welch
Apr 1, 2010
Sell a really good, juicy burger on a fresh bun. Make perfect French fries. Don't cut corners. That's been the business plan since Jerry Murrell and his sons opened their first burger joint in 1986. When they began selling franchises in 2002, the family had just five stores in northern Virginia. Today, there are 570 stores across the U.S. and Canada, with 2009 sales of $483 million. Overseeing the opening of about four new restaurants a week, the Murrells are proof that flipping burgers doesn't have to be a dead-end job.
Read more to find out how they did it… click here.
Business Sherpa says... "Interesting read for anyone in the food business."
As Told to Liz Welch
Apr 1, 2010
Sell a really good, juicy burger on a fresh bun. Make perfect French fries. Don't cut corners. That's been the business plan since Jerry Murrell and his sons opened their first burger joint in 1986. When they began selling franchises in 2002, the family had just five stores in northern Virginia. Today, there are 570 stores across the U.S. and Canada, with 2009 sales of $483 million. Overseeing the opening of about four new restaurants a week, the Murrells are proof that flipping burgers doesn't have to be a dead-end job.
Read more to find out how they did it… click here.
Wednesday, April 7, 2010
How To Get Business SBA Approved - Doing so as a seller can help make your business more attractive to buyers.
By Richard Diomo, Bizquest Business for Sale Blog
Question:How do I get my business SBA approved? It seems like doing so would help to move the sale of my business faster.
Answer:This is a great question and you should be commended for being proactive about the financing portion of selling your business. The process is actually quite simple: if you engage a business broker, this is something they can do on your behalf. If you are selling the business on your own, then you should contact a local Preferred SBA lender. They will provide you with a list of documents required to complete the pre-qualification process. These will generally include:
Question:How do I get my business SBA approved? It seems like doing so would help to move the sale of my business faster.
Answer:This is a great question and you should be commended for being proactive about the financing portion of selling your business. The process is actually quite simple: if you engage a business broker, this is something they can do on your behalf. If you are selling the business on your own, then you should contact a local Preferred SBA lender. They will provide you with a list of documents required to complete the pre-qualification process. These will generally include:
- The most recent three year's of company tax returns
- Accompanying P & L statements and Balance Sheets
- Your W2
- Recent interim statements
- Asset list
From this they will determine if, under the right deal terms, the buyer will qualify for the SBA program. Plus, there will be some additional conditions relative to the buyer qualifications. They will be able to determine how much they are prepared to lend, what amount the buyer will need as a down payment, what amount (if any) they may ask you, the seller, to finance, and the fees involved to complete a transaction.
Keep in mind that this step is only a pre-qualification and, like all lenders, they will have plenty of disclaimers. However, once you obtain a pre-qualification status, it will provide you with a huge advantage when advertising your business. Make certain that you do not make any claims to prospects about the financing. This is only an initial pre-qualification.
Tuesday, April 6, 2010
The 7 Most Surprising Wine Regions
From China to Croatia and Beyond
By: Carly Wray, Snooth.com
Business sherpa says... "Some real surprises here."
You know that Croatia has a heartbreakingly gorgeous coastline, and that Idaho has famous potatoes -- but did you know that they both produce notable wine? It's not just novelty: More and more regions around the world are beginning to create legitimately intriguing, attention-worthy wines.
Some are just now climbing out of the jug wine ghetto, while others have been steadily building a tradition of fine winemaking for centuries. From Macedonia to the frozen vineyards of Ontario, Canada, here are the seven unsung or up-and-coming wine regions to check out next.
1. Croatia
2. Idaho
3. China
4. India
5. Brazil
6. Macedonia
7. Canada
To read more… click here.
By: Carly Wray, Snooth.com
Business sherpa says... "Some real surprises here."
You know that Croatia has a heartbreakingly gorgeous coastline, and that Idaho has famous potatoes -- but did you know that they both produce notable wine? It's not just novelty: More and more regions around the world are beginning to create legitimately intriguing, attention-worthy wines.
Some are just now climbing out of the jug wine ghetto, while others have been steadily building a tradition of fine winemaking for centuries. From Macedonia to the frozen vineyards of Ontario, Canada, here are the seven unsung or up-and-coming wine regions to check out next.
1. Croatia
2. Idaho
3. China
4. India
5. Brazil
6. Macedonia
7. Canada
To read more… click here.
Thursday, April 1, 2010
Starting a Business with Limited Time and Money
By STEVE STRAUSS, AOL SMALL BUSINESS
Q: I would like to start my own business, but my problem is that I don't have a lot of money. I also have a job which I cannot quit. How do I start a business that way?
A: It is actually good that you have a job, since that makes starting a business on a shoestring much more viable: You keep the job while starting the new venture and work on it in the evenings and weekends. It will help pay the bills as you get started.While it would be nice to have a surplus of money to start your business, it is equally true that most small businesses are begun with less than optimal funding ... maybe not shoestring funding, but it can be done.
The most important thing is to pick the sort of business that can be launched inexpensively. Here are your best bets:
1. an online business
2. a service Business
3. a home-based business
4. a part-time business
to read more… click here.
Q: I would like to start my own business, but my problem is that I don't have a lot of money. I also have a job which I cannot quit. How do I start a business that way?
A: It is actually good that you have a job, since that makes starting a business on a shoestring much more viable: You keep the job while starting the new venture and work on it in the evenings and weekends. It will help pay the bills as you get started.While it would be nice to have a surplus of money to start your business, it is equally true that most small businesses are begun with less than optimal funding ... maybe not shoestring funding, but it can be done.
The most important thing is to pick the sort of business that can be launched inexpensively. Here are your best bets:
1. an online business
2. a service Business
3. a home-based business
4. a part-time business
to read more… click here.
Monday, March 29, 2010
The 50 Riskiest Online Cities
Business Sherpa says… “Not happy we made this list--Indianapolis #25.”
By Jeremy A. Kaplan
FOXNews.com
By comparing cyberattacks, malware infections, and spam zombies with the prevalence of hotspots, online purchases and so on, Symantec has ascertained the 50 riskiest online cities.
To Read More About the 50 riskiest cities … click here.
By Jeremy A. Kaplan
FOXNews.com
By comparing cyberattacks, malware infections, and spam zombies with the prevalence of hotspots, online purchases and so on, Symantec has ascertained the 50 riskiest online cities.
To Read More About the 50 riskiest cities … click here.
Sunday, March 28, 2010
Life Plan Before Business Plan
This blog post kicks off a three part series on Start-up Success for Small Business Trends. Great advice for anyone looking for success in their entrepreneurial path.
By Melinda Emerson, Smallbiztrends.com
Many people dream about owning a small business. You may be one of those people who have had a “notion” for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream into reality is an evolutionary process. It involves not only having a solid business idea but also knowing the “business of running a business.” You will need to get your arms around stuff like accounting, marketing, and operations, but before you dive into crunching numbers for your business plan, consider this:
It is my strong belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan. Why, you ask?
Because entrepreneurs who don’t get clear about what they want from life run the risk of starting a business that might not be a good business for them.
To read more ... click here.
By Melinda Emerson, Smallbiztrends.com
Many people dream about owning a small business. You may be one of those people who have had a “notion” for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream into reality is an evolutionary process. It involves not only having a solid business idea but also knowing the “business of running a business.” You will need to get your arms around stuff like accounting, marketing, and operations, but before you dive into crunching numbers for your business plan, consider this:
It is my strong belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan. Why, you ask?
Because entrepreneurs who don’t get clear about what they want from life run the risk of starting a business that might not be a good business for them.
To read more ... click here.
New Indiana alcohol law raises businesses' spirits
By Julie Crothers, IndyStar.com
Law will be good for sales, they say, though ID rule may be a hassle.
Indiana's bars, restaurants, liquor stores and microbreweries hope to boost their business, thanks to a series of new alcohol provisions recently signed into law by Gov. Mitch Daniels.
Effective March 12, the new statute extends Sunday drinking hours to 3 a.m. and repeals the prohibition of Election Day alcohol sales. Beginning July 1, Sunday carryout sales at microbreweries will be allowed.
Senate Enrolled Act 75 also aims to curtail underage access to alcohol by requiring any establishments that have carryout sales to card all customers who appear younger than 50.
Overall, owners of bars, restaurants and microbreweries say, the law -- which passed the legislature overwhelmingly -- should bring a slight uptick in business because they will have more hours, on Election Day and Sunday, to sell their products.
Business Sherpa says... "Good changes with the exception of requiring everyone under 50 to show ID--not sure of the "benefit" of such a provision"
To read more... click here.
Law will be good for sales, they say, though ID rule may be a hassle.
Indiana's bars, restaurants, liquor stores and microbreweries hope to boost their business, thanks to a series of new alcohol provisions recently signed into law by Gov. Mitch Daniels.
Effective March 12, the new statute extends Sunday drinking hours to 3 a.m. and repeals the prohibition of Election Day alcohol sales. Beginning July 1, Sunday carryout sales at microbreweries will be allowed.
Senate Enrolled Act 75 also aims to curtail underage access to alcohol by requiring any establishments that have carryout sales to card all customers who appear younger than 50.
Overall, owners of bars, restaurants and microbreweries say, the law -- which passed the legislature overwhelmingly -- should bring a slight uptick in business because they will have more hours, on Election Day and Sunday, to sell their products.
Business Sherpa says... "Good changes with the exception of requiring everyone under 50 to show ID--not sure of the "benefit" of such a provision"
To read more... click here.
Tuesday, March 23, 2010
Friday, March 19, 2010
'Jugaad' Economy - Entrepreneurship in India
Ryan Streeter, Legatum Institute Senior Fellow
17 March 2010, Legatum Perspectives
Entrepreneurship in Asia may be the least understood of today’s most exciting economic phenomena. Even in developed western economies, researchers and analysts are only now beginning to understand the economic contribution of the enterprising class of innovators, business owners, and risk-takers we call “entrepreneurs.” Entrepreneurship in Asia is even less well understood, despite its popularity.
India is increasingly important as a laboratory of bottom-up, gritty, individualistic entrepreneurship, different than, say, the Chinese model. Harvard University’s Tarun Khanna, an expert on Chinese and Indian entrepreneurship, has in his work contrasted China’s government-driven, top-down style of enterprise with India’s “interesting, vibrant way of doing things...in the private sector...far away from government intervention.” Understanding how enterprising individuals in India think and act is important to understanding the larger Indian economy and its future.
to read more... click here.
17 March 2010, Legatum Perspectives
Entrepreneurship in Asia may be the least understood of today’s most exciting economic phenomena. Even in developed western economies, researchers and analysts are only now beginning to understand the economic contribution of the enterprising class of innovators, business owners, and risk-takers we call “entrepreneurs.” Entrepreneurship in Asia is even less well understood, despite its popularity.
India is increasingly important as a laboratory of bottom-up, gritty, individualistic entrepreneurship, different than, say, the Chinese model. Harvard University’s Tarun Khanna, an expert on Chinese and Indian entrepreneurship, has in his work contrasted China’s government-driven, top-down style of enterprise with India’s “interesting, vibrant way of doing things...in the private sector...far away from government intervention.” Understanding how enterprising individuals in India think and act is important to understanding the larger Indian economy and its future.
to read more... click here.
Thursday, March 18, 2010
Asperger’s Can Aid The Workplace
By Gwen Parkes
Jobs.AOL.com
From author/speaker/animal scientist Dr. Temple Grandin to blogger/speaker/career expert Penelope Trunk, it's become clear that people with Asperger's Syndrome, or Aspies, as some like to be known, have a role to play in the workplace. It's often a critical one and they can execute it successfully, albeit awkwardly and with struggles the rest of us can't quite imagine.
People on the autism spectrum are pattern thinkers, visual thinkers and verbal thinkers. According to Grandin, they provide a counter-balance in a world where "we are getting too abstract and away from the hands-on."
to read more... click here.
Jobs.AOL.com
From author/speaker/animal scientist Dr. Temple Grandin to blogger/speaker/career expert Penelope Trunk, it's become clear that people with Asperger's Syndrome, or Aspies, as some like to be known, have a role to play in the workplace. It's often a critical one and they can execute it successfully, albeit awkwardly and with struggles the rest of us can't quite imagine.
People on the autism spectrum are pattern thinkers, visual thinkers and verbal thinkers. According to Grandin, they provide a counter-balance in a world where "we are getting too abstract and away from the hands-on."
to read more... click here.
Wednesday, March 17, 2010
VCs Push StartUp Visa Act
A group of investors is in Washington to push for passage of a bill that they say would make it easier for foreign entrepreneurs to stay—and create jobs—in the U.S.
By Douglas MacMillan
BusinessWeek.com
During recent travels abroad, Shervin Pishevar says he witnessed flourishing tech communities in places like Russia, Argentina, and Jordan. "There's a tremendous amount of talent out there," says Pishevar, an Iranian-born entrepreneur and angel investor now based in Silicon Valley. He wants to ensure global talent can take root in his adopted country, too.
So on Mar. 3, Pishevar joined a group of more than a dozen other investors and tech luminaries on a three-day trip to Capitol Hill. Talking point No. 1: the StartUp Visa Act of 2010, a bill introduced by Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind.) in late February that would create a new type of visa for foreign entrepreneurs looking to start businesses in the U.S.
Pishevar and other proponents say the legislation would help the country compete for talent and create new companies that would employ American workers at a time when joblessness is rampant. "This bill is a small down payment on a cure to global competitiveness," Senator Kerry says in an e-mail to Bloomberg BusinessWeek.
to read more... click here.
By Douglas MacMillan
BusinessWeek.com
During recent travels abroad, Shervin Pishevar says he witnessed flourishing tech communities in places like Russia, Argentina, and Jordan. "There's a tremendous amount of talent out there," says Pishevar, an Iranian-born entrepreneur and angel investor now based in Silicon Valley. He wants to ensure global talent can take root in his adopted country, too.
So on Mar. 3, Pishevar joined a group of more than a dozen other investors and tech luminaries on a three-day trip to Capitol Hill. Talking point No. 1: the StartUp Visa Act of 2010, a bill introduced by Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind.) in late February that would create a new type of visa for foreign entrepreneurs looking to start businesses in the U.S.
Pishevar and other proponents say the legislation would help the country compete for talent and create new companies that would employ American workers at a time when joblessness is rampant. "This bill is a small down payment on a cure to global competitiveness," Senator Kerry says in an e-mail to Bloomberg BusinessWeek.
to read more... click here.
Monday, March 8, 2010
Yelp: Advertise or Else?
Note from Larry B: "Don't get "Yelped" It should become routine business practice for business owners to review the "reviews" posted online on all sites and respond accordingly."
Yelp: Advertise or Else?
The site faces a lawsuit—and a barrage of criticism—for mingling ads and reviews
By Peter Burrows and Joseph Galante
Bloomberg Business Week, March 3, 2010
Getting Yelped. That's the term angry business owners have started using when they feel unfairly criticized on the popular review site. Now Yelp is being forced to deal with its own unanticipated criticism. In a federal lawsuit filed in California on behalf of Long Beach's Cats & Dogs Animal Hospital, attorney Jared Beck claims that Yelp routinely highlights negative customer reviews unless business owners agree to advertise with the company. Beck, a Harvard-trained trial lawyer in Miami, says dozens of businesses have contacted him with similar allegations, and he plans to file an amended complaint with more companies in the coming weeks. "This is not an isolated incident," says Beck. "This seems to be a companywide practice."
To read more... click here.
Yelp: Advertise or Else?
The site faces a lawsuit—and a barrage of criticism—for mingling ads and reviews
By Peter Burrows and Joseph Galante
Bloomberg Business Week, March 3, 2010
Getting Yelped. That's the term angry business owners have started using when they feel unfairly criticized on the popular review site. Now Yelp is being forced to deal with its own unanticipated criticism. In a federal lawsuit filed in California on behalf of Long Beach's Cats & Dogs Animal Hospital, attorney Jared Beck claims that Yelp routinely highlights negative customer reviews unless business owners agree to advertise with the company. Beck, a Harvard-trained trial lawyer in Miami, says dozens of businesses have contacted him with similar allegations, and he plans to file an amended complaint with more companies in the coming weeks. "This is not an isolated incident," says Beck. "This seems to be a companywide practice."
To read more... click here.
Friday, March 5, 2010
Friday, February 26, 2010
Obama's stimulus aims to boost access to small-biz loans
By Peter Schnitzler, Indianapolis Business Journal
To read the full article online click here.
No incentive can make a bad deal bankable. But President Obama’s stimulus measures are spurring some promising small businesses to begin borrowing again, despite the recession. National politics will help determine whether the budding trend accelerates or stalls.“The president has announced a very exciting series of initiatives. That’s the good news,” said attorney Frank Swain, a partner in Baker and Daniels LLP’s Washington, D.C., office. “The asterisk to bear in mind is, nearly everything the president has proposed will require legislation.”
To read the full article online click here.
No incentive can make a bad deal bankable. But President Obama’s stimulus measures are spurring some promising small businesses to begin borrowing again, despite the recession. National politics will help determine whether the budding trend accelerates or stalls.“The president has announced a very exciting series of initiatives. That’s the good news,” said attorney Frank Swain, a partner in Baker and Daniels LLP’s Washington, D.C., office. “The asterisk to bear in mind is, nearly everything the president has proposed will require legislation.”
Obama has a variety of incentives on the table designed to encourage entrepreneurship. For starters, he wants to move $30 billion from the Troubled Asset Relief Program, or TARP, over to community banks that will put it to work in small businesses.
The president also aims to give the Small Business Administration authority to refinance commercial real estate loans for owner-occupied property. Obama has proposed raising the caps on a variety of SBA loans, and he wants Congress to approve a $5,000 tax credit for every net new employee a small business hires.
But at the moment, it’s unclear whether Obama will even be able to preserve the small-business banking measures he’s already added to the books. Thanks to the American Recovery and Reinvestment Act, the SBA is attempting to rekindle borrowing activity by increasing its loan guarantees up to 90 percent and waiving fees.
The SBA’s current loan incentives are scheduled to expire at the end of the month without congressional renewal. Some local entrepreneurs are taking advantage of federal stimulus incentives while they last.
Alivio Medical Center, at 21st Street and Shadeland Avenue, is exactly the type of small business President Obama is attempting to assist. Founded in 2002, it has four full-time physicians, three specialists and a staff of 30. It serves 25,000 patients, primarily Hispanic people for whom Spanish is their first language.
The business has expanded so quickly that it’s twice outgrown facilities. Last fall, Alivio borrowed $705,000 in SBA-backed money from Fifth Third Bank to buy its current building, a former pain clinic.
Dr. Alfredo Lopez-Yunez, 42, a Colombian native who’s Alivio’s owner and director, said he probably could have secured a loan without the SBA’s assistance. But because of its involvement, Alivio used funds that would have gone for fees to instead open a dental clinic and an ophthalmology clinic.
“I wouldn’t say it was a no-brainer, but it was close to that, it was so good,” he said.
McCordsville-based Grassroots LLC is another beneficiary of the SBA’s current incentives. Owner Todd Stadler distributes a variety of musical instruments from a tiny 3,000-square-foot warehouse, “but we use every bit of that room,” he said. He launched the business in October with the help of an $80,000 loan from Star Financial Bank, backed by the SBA. His motive was a common one for entrepreneurs: Stadler, 33, simply wanted to work for himself.
Grassroots has four full-time employees and two part-timers. In just a few months, it has attracted 250 customers and aspires to 2010 sales of $1 million, with a profit margin of 25 percent or better.
“I’ve worked hard for others. I knew I’d succeed if I did that for myself,” he said. “My mind-set was, I’ll do whatever I have to to make this work.”
The SBA’s changes were rooted in necessity. In 2008, wary entrepreneurs battened down their hatches. The international credit crunch trickled down locally into a 35-percent slide in both the quantity and size of SBA-backed bank loans.
The result was a partial, concentrated revival. The SBA’s Indiana District Office reports that its gross dollar totals for loans made during the last 12 months reached 86 percent of their pre-recession level. But the SBA underwrote only about half as many loans as before the downturn.
Mark Schroeder, CEO of Jasper-based German American Bancorp Inc., wants to see the SBA’s current loan incentives extended.
Just before Christmas, Schroeder was one of 12 community bankers from around the country invited to meet personally with Obama. He told the president that German American was fortunate to be well-capitalized and willing to lend. But because of the recession, he told Obama, businesses simply aren’t borrowing. For the last two years, most have concentrated on reducing their inventories and tightening their receivables, not taking on debt for expansion.
As businesses shrink, Schroeder noted, they have less collateral to offer as loan security. That increases their default risk. Until recently, the problem has been hidden by the lack of loan demand. But it will become pronounced as they begin growing, and seek new credit for working capital.
Schroeder believes the SBA’s increased guarantees ought to be extended through 2011, and perhaps beyond.
“That was my point to the president,” he said. “If you pull that SBA credit-enhancement support off the table too soon, just when this economy is ready to come back up and back out, that’s when you’re going to see the credit crunch.”
Obama’s new entrepreneurship proposals also include eliminating capital-gains taxes on investments in small businesses and accelerating tax-depreciation schedules for their equipment purchases.
Swain, the Washington, D.C., attorney, said local entrepreneurs should keep their lenders’ phone numbers handy to track the changing landscape for small-business incentives.“
Chances are that many, if not all, the changes will be made pretty quickly,” said Swain, who served as the SBA’s chief counsel for advocacy before joining Baker and Daniels. “If somebody desperately needs help today, they have to deal with current program rules. But in a month, the rules could be changed.”
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