President-Elect Obama:
As you take power for what is the most remarkable statement our country has made in ages and having run the best campaign ever, we know you are taking over what will be the worst job in the world.

• We want your optimism to be contagious and your can-do-attitude to inspire us
• We are terrified you will tax us and hold us up as scapegoats, while we are survivors
• We are hopeful you will see us as family leaders not large corporate thieves
• We are one-third democrats, one-third republicans and one-third independents*
• We love your dreaming but worry we are not included in those dreams
• We care little about NAFTA but worry more about being virtual
• We want to give people jobs but aren’t sure we can carry them
• We believe we give service to society by virtue of the value we provide to customers, the people we hire and the young that we train
• Lastly, it’s always been lonesome as a small business owner and we have no expectations that government will help us. We love our country and want to see it, and you, succeed.

While the entire world is holding their breath as to what an Obama victory really means to them, fear, uncertainty and doubt have already gripped most small business owners. From losing or maxing out their credit lines, to fearing that consumer demand will simply dry up, entrepreneurship is in upheaval. On one hand, it is still the American dream for so many; on the other, it is a grim reality for so many who depend on it.

Regardless of their industry, tenure, or age, never before have most business owners been so apprehensive about their futures. Why? Because, all the institutions and resources they count on—particularly banks, big customers, skilled and available workers, and economic stability—are all in disarray. Whether they voted for Obama, believing that a recovering middle class will lift all small business ships, or against him, fearful that the new burden of regulation, health care costs and increased taxes will torpedo their plans, business owners are downright scared. And when entrepreneurs are scared they become inactive or at the very least stop expanding. Why? Because owning a small business is all about:

• Being confident that you know your threats
• Knowing how to avoid and exploit your threats
• Confidently spending the resources to do so

Why are business owners so nervous? Because for the first time in decades, they don’t know what to do. Nothing has prepared them to cope and face what is upon them. Wondering if they will have a working business at all has replace traditional “E Myth” goals of “working on one’s business” as opposed to working “in one’s business.” The new threats are not the same as the old threats and knowing how to even respond, let alone find the courage to invest the needed time, money and energy in the correct responses, is beyond the “pay grade” of most owners.

But before we can address these concerns, how did entrepreneurship get to this point? Since 1980, business ownership has grown from a wry dream for most to a total investment for so many. From under ten million in the 1980s to some 25 million† today, nearly ten percent of Americans depend directly on their own businesses for financial security and another ten to thirty percent are customers, vendors, employees or investors of small business. From being seen as outsiders or rebels, the small business owner has become in many ways the focal point of the American Dream. Large corporations spend billions marketing to them. This last election created “Joe the Plumber” and the small business owner’s laments of paying too much in taxes, having bad health care options and struggling for visibility and respect are daily themes our news media covers ad nauseam.

As importantly, the entrepreneurial movement has produced a new lifestyle and set of values. Magazines, such as Fast Company and INC. along with owners-only support groups such as EO and VISTAGE have sprung up to enhance the entrepreneurial way of business and personal life. Entrepreneurship is so ingrained in our society that it has outgrown the stereotypes of being part of one political party. A 2007 Fortune Zogby Poll of business owners reported that 37% are registered Republicans, 35% are registered Democrats and the remaining are Independents.

While the novelty of entrepreneurship has worn off, today’s business owner remains as much a lone wolf as ever. All of the 20% who survive their first five years† do so by quickly learning to sell, manage cash, find and keep good people and create satisfied customers. But over the last few years, multiple forces in the economy and society in general are converging into a perfect storm and threatening both established business owners as well as the dreams of emerging ones.

So in closing, President-Elect Obama, we as business owners are fearful of what you may do to us and the harm you can bring to our small businesses yet we wait with bated breath to see if you can deliver your promises and help us continue our American dream of successful entrepreneurship because “Yes, we can.”

About Andy Birol: Based on interviewing over 5,000 businesses Andy Birol authored The Five Catalysts of Seven Figure Growth (CareerPress, 2006), has advised over 400 business owners.  By focusing on the role of the owner as the “fuel” that drives a firm, Andy speaks to hundreds of groups of entrepreneurs on six continents, helping thousands to clarify or discover their Best and Highest Use^® (BHU) and achieve sustained and profitable growth.  Andy holds an MBA from Northwestern’s Kellogg School and a BSBA summa cum laude from Boston University’s School of Management.  His website is www.andybirol.com and his blog is www.birolsblog.com.

Articles by Birol Growth Consulting are © copyrighted and all rights are reserved. However, articles may be reprinted with prior written consent if attribution is included as follows:

Submitted by Olivia Goodkin, a partner at Rutter Hobbs & Davidoff in Los Angeles. She is a specialist in labor and employment, business litigation and dispute resolution and intellectual property law.

On June 18, 2008, an important case regarding employees’ privacy in the workplace was decided by the Ninth Circuit Court of Appeals. The case, Quon v. Arch Wireless Operating Company, looked at whether the Ontario Police Department had violated an employee’s right to privacy when supervisors viewed the contents of his text messages that were transmitted using Department pagers.

According to the court, the Department’s policies regarding the monitoring of e-mail, computer and text messages were overridden once a supervisor told employees their text messages would be audited if they failed to pay for overages on the text-message plan. Because the employee in the case had paid all overages resulting from his use of pager text messages, the review of the employee’s text messages was deemed illegal.

Inside the Case: Looking at the Ontario Police Department’s Policies

The Ontario Police Department issued a pager with text-messaging capabilities to Sergeant Jeff Quon. He acknowledged the Department’s “Computer Usage, Internet and E-Mail” policy, which explained that the City of Ontario had the right to monitor and log all network activity, including e-mail and Internet use.  The policy also stated that users should have no expectation of privacy in their communications when using these forms of communication.

Later, the Department announced at a staff meeting that the policies also applied to using pagers. Under the City’s contract with Arch Wireless Operating Company (“Arch”), the company providing the paging service, each pager was allotted 25,000 characters. The City was required to pay any overage charges.

The Oral “Amendment” to the Written Computer, Internet and E-Mail Policy

Quon’s supervising officer, Lieutenant Duke, told him it was not his intent to audit employees’ text messages for the purpose of seeing whether or not the texts were personal messages. He said he would only conduct an audit if Quon did not pay for the overages. Quon paid the City for overages each time they occurred.

When several officers went over their 25,000 character limit, Lieutenant Duke was ordered to obtain the transcripts to see if the messages were personal or business-related. Arch provided the transcripts, which included personal messages, including several from Quon to his wife.

Quon and others sued Arch for divulging the transcripts of their text messages, and also sued the Ontario Police Department and some of its supervisors.

The Right to Privacy and Fourth Amendment Issues

The Fourth Amendment to the U.S. Constitution protects the right “of the people” to be secure in their “persons, houses, papers, and effects, against unreasonable searches and seizures.” Quon and others involved sued under this Amendment, alleging that a public entity (the Ontario Police Department) obtained the text messaging transcripts improperly.

The court said that Quon’s expectation of privacy “turns on the Department’s policies regarding privacy in his text messages.”  The court pointed out that if the policies of the Department were reflected only in the written Computer, Internet and E-mail policy, with the oral amendment applying to text messages, then the case would end there. Those polices clearly indicated that Quon should have no expectation of privacy in using those resources.

However, once Lieutenant Duke told Quon and the staff that he wouldn’t audit their text messages as long as they paid for any overages, the policies were in effect amended, and created an expectation of privacy.  Since Quon paid for overages as they occurred, it was reasonable for him to expect his messages to remain private.

Because the Quon case involved a Fourth Amendment claim, which applies when there is a “state” or government action, the court decided there was a violation of the Fourth Amendment because the search was unreasonable.

Why the Quon Case Applies to Your Private Company

An employee’s expectation of privacy can apply to any case involving a California employer – whether public or private. The key issue for California employers is that a verbal statement made by a supervisor can override the written policies of a company. In this case, Lieutenant Duke’s assurance that he would not review text messages, except in the limited situations that did not apply to the Quon case, superseded the written policies that specifically restricted employees’ rights of privacy.

What Should Employers Do Now?

Employers must train supervisors regarding policies and procedures. It is not enough to have written policies that define privacy rights. Review written Internet, computer, e-mail, cell phone and other electronic usage policies to see if they reflect company needs. Then, discuss the policies with all company supervisors to ensure that they understand the repercussions of making exceptions to those policies.

We’ve all heard it - over and over. Recession, job loss, tough times.

Does this remind anybody else of the old story about Chicken Little (”the sky is falling”)?

I am a fierce believer that what we think about comes about. If we don’t want financial struggles, despair and “oh no” experiences, why do we spend so much of our time thinking about them?

How is it that some businesses see growth - even record growth - during these “slow” times?

They get back to basics. What are they?

1. They focus on what they do best, and they make the most of it. When did it become admirable to be “Jack of all Trades and master of none”?  Being a one-stop shop may seem like a convenient way to service your customer, and it certainly can be. It also can confuse potential customers into wondering what it exactly is that you do. The same pattern holds for job seekers during these times - employers hire specialists more often than generalists. Why? Because they know exactly what they are getting rather than investing in a candidate and not being certain of what they will get. Be specific. What do you really do? Are you sure?
2. They foster and nurture their strongest networks and referral sources. We all do business with people we know, like and trust. Connect with individuals who believe in the “Givers Gain” philosophy. Who in your circle are your best referral sources? Who has referred business to you in the past? How can you help them grow their business? Help them, and your “know, like and trust” factor will grow exponentially.
3. They dig in and get to it. It’s so easy to wait for things to come to us. Although I do subscribe to the idea of “astral advertising” (aka The Law of Attraction), the perfect client isn’t going to simply appear at our office door with a bucket of money to toss into your lap. Put the right ideas out there (remember, what we think about comes about…) and get to work. Put yourself in situations where you will meet the people you most want to connect with. Be strategic with your time and efforts. This is not about being desparate and begging for clients. You offer a great product or service to your clients, and you will help them (grow their business, save time, save money, insert other benefit here). Don’t be afraid to beat your own drum - that’s how people will hear you.

Hurricanes, floods, lawsuits, financial meltdowns, earthquakes…I’ve handled them all as a PR professional. And now, as the nation deals with the aftermath of Hurricane Ike and the Wall Street meltdown, we not only need to pray for those affected, but we should also take the time to ensure we’re prepared if something like this happens to us.

Handling a crisis as a public relations professional takes intelligence, grit, experience, and sometimes a general ability to be at the right place at the right time. You want your employees and customers to know that you’re in control of the situation. That means, wherever the conflict, that’s where you’re at…being a physical presence at the scene, ready to handle the media and customers.

When the island of Kauai was hit by a horrific hurricane some time ago, my company had a great number of customers and employees affected. Within 48 hours of the eye hitting landfall, I was on an emergency cargo plane packed with food rations and water — enough to last me for four to seven days. My mission was to ensure our customers knew that if they needed help, our company was ready and prepared.

When I arrived at the island airport, I was concerned because of the long lines of people waiting to get OFF the island. Rental cars were just parked and abandoned on the curb. Nothing looked normal and in fact, the scene looked like it was straight out of a war zone.

The first thing I did was nab a rental car that was sitting at the curb with its keys still in the ignition. From there, I ventured off to find a hotel for which I supposedly had a reservation. I found the hotel in the dark. I went to the lobby to check in. Even though there was no running water or electricity, the hotel actually had a room for me. No matter the conditions, I was there.

You see, to handle an extreme disaster, it’s important to be where the media is. The day after my arrival, I struck up a relationship with the local radio station that was running regular island updates to help keep its listeners updated on the island’s situation. They gave me regular access to airtime so that I could inform my customers about what they should do and what our company was doing to help them. In addition, I tracked down CNN, the Los Angeles Times and a San Francisco radio station, all within 48 hours of my arrival, to show them how our organization was responding to the incident. Despite the conditions and perilous situation, we managed to make our presence known.

The lesson here is not so much on how to deal with the elements…but how important it is to be at the disaster site as soon as it happens. That’s because all of your stakeholders – employees, customers, partners, and vendors — need to be assured that no matter the circumstances, your company is a partner with them…in good times and in bad.

There’s an old saying that if you want people to know that you care, tell them…and if necessary, use words. Being at “ground zero” speaks volumes about your company’s commitment. That kind of message is priceless.

Many Non-profit organizations enact in an egregious manner. It perplexes me that non-profit organizations believe that there is a significant difference in performance, reporting and business methodology. This myth is not only untrue and must cease. Fact, Non-profit organizations require bureaucracy, goals and accountability. More importantly non-profits must always be marketing.

While reading a national periodical I read that a fairly prominent non-profit was preparing to cut as much as one-third of its headquarters staff, up to 1,000 employees, and pare regional management due to fundraising issues. Is this a lack of money, or simply a lack of selling and a lack of accountability? I am often intrigued when management cuts staff to raise profits and even more concerned when issues arise because organizations fail to remain committed to its only rational goals- retain and gain clients.

Organizations and their managers emulate children; they will find an excuse for anything. The real issue is accountability. Some non-profits fail miserably at marketing and sales. Recent research for this article indicates that many non-profits focus attention on operations rather than an outward focus.

Currently, examples of fund raising efforts involve galas and unfortunately notoriety following a disaster. Most organizations are staffed with volunteers uneducated in closing sponsors and requesting money. The means to an end for many organizations is to implement a professional selling force that is 1) hungry in the hunt and enjoys searching for dollars in precarious places, 2) enjoys networking to uncover possible donations and 3) will not hesitate to ask for the business.

Secondly, many firms believe that internal training augments large spending. Not true. From over 25 years with clients around the globe I typically get calls from organizations to conduct training for two vital reasons, 1) there is a bias within the organization that disavows market trends. 2) Organizations fail to provide proper motivational and productivity tools that create a competitive sales force. Managers are not well versed in compensation, goal matrices etc. Sales people are driven by proper goals and compensation. 3) There is a systematic approach to selling and many internal trainers use books and tapes rather than practical experience. Sales take longer to close and professionals as well as executives get frustrated with lagging revenue. 4) Internal training is myopic. In recent research 76% of firms that internally train do so once per year, then speculate why production and profits fail. 5) People go into sales because they hunger for money and the thrill of the hunt, non-profits tend to instruct service and fail to create the panacea. 6) Internal training fails in how to close business.

Finally, there is a horrendous disconnection between, clients, staff and at times boards of directors concerning marketing intentions. On a recent journey to train a non-profit there existed a variety of interpretations with the firm’s marketing message. Staff and executives could not agree on the external message to clients. Worse yet many staff were unclear why the organization existed. It is imperative for organization to develop a solid value proposition. A pithy statement focusing on output and client values transcends purpose for staff and focus for clients and donors. An example statement- “Transforming lives on the road to independence”. With all working in concert the organization operates with a joint purpose. All staff are then involved in the selling process. The outward focused message creates interest and conversation while illustrating how sponsorship is utilized.

Clearly not all non-profits are dysfunctional and many do not have these issues. Yet many do and fail to realize that success hinges upon the ability to raise funds- continually. Rather than use perfunctory fundraising methods, organizations should use methods employed by for profit institutions. With changes in market conditions and the economy specifically, donations become slimmer and competition increases. Currently, 850,455 public charities and 104,276 private foundations are registered with the IRS. (Source: The Urban Institute, National Center for Charitable Statistics, Business Master File 01/06) In addition, 463,714 other types of nonprofit organizations, such as chambers of commerce, fraternal organizations and civic leagues, are registered with the IRS. (Source: The Urban Institute, National Center for Charitable Statistics, Business Master File 01/06) This creates a highly competitive enviornment with many organizations vying for similar dollars. Even for non-profits the world flatten with globalization and competition requiring a thirst for differentiation.

©2008

As the seasons change and kids go back to school, entrepreneurs begin thinking about their business again. Wrapping up one year, leading into the next, business owners start thinking of budgets, new contracts and do many other things.

How do you plan your business? What do you focus your attention on?  Here are three areas to examine:

1. Finances - Who manages the financial part of your business?  You may have a full time bookkeeper or accountant on staff, or handle your own finances through a user-friendly software program with help from outside expert.  Do you have all the information you need? Do you know the largest expense incurred by your business (other than payroll and rent)? How is your business benefiting from that product or service, and how can you better manage that expense? Pennies make dollars - where can you cut the fat and maintain (or increase) the quality of the product or service you receive?
2. Human Resources - How is your company staffed? How do you track the human capital in your business? For most businesses, payroll is the highest expense. Are your team members being as efficiently as possible?  How can their time be used better - either via more efficient systems or through using their talents better by putting them in new roles?
3. Clients - How do you handle your clients? Are they receiving all the services they need to ensure they are getting a good value from your business? Are you giving efforts to services that aren’t benefiting their business or are simply time wasters they don’t care about? Talk to your clients about how you can better serve them - you may be surprised at what they tell you.

In this troubled economy every dollar is precious.  Your business needs to control costs wherever possible.  Outsourcing certain aspects of your business to third parties, can be a powerful cost cutting move that also frees you up for more important tasks such as finding new clients and product development.

The following are seven things your business can outsource TODAY that will start saving you money and help your business operate more smoothly.

1. Accounting and bookkeeping.  Managing your business’ books is a time consuming affair.  Worse yet, every day is another opportunity to make a mistake that can cost you and your business a fortune.  Outsourcing your day-to-day financials, including managing the checking account, paying vendors and other tasks, to a certified public account can be the best decision you ever make.

2. Taxes. Like accounting, doing your own business taxes presents a two-tiered problem:  it is going to take you a lot of valuable time to get it done, and when you do, it probably won’t get done correctly.  Hire an accountant to handle all your quarterly and annual business taxes.

3. Assistants. Virtual assistants have become all the rage in the business world because they really exceed expectations.  Even the most skeptical people are sold on outsourcing their assistant position after seeing all the little jobs they can do in a day!

4. Website management.  To be successful online, it is absolutely crucial to maintain a vital presence on the web.  However, that means updating your site regularly and always staying on the lookout for technical issues – two things few of us have enough time for in our busy day.  Outsourcing web management can help increase traffic and conversions online for your business.

5. Marketing.  Why try to develop a crucial marketing campaign on your own, when you can hire a team of marketing experts who will do the job faster, more creatively and for less money?  Offline or online, marketing companies take the time to get to know your brand intimately, as well as your target demographic and the most effective ways to reach them.

6. Customer support. Having a live person to deal with customer questions and concerns is an important part of building your business’ credibility.  Customer support phone banks are currently being outsourced to almost anywhere in the country or the world – where call professionals can be trained to represent your business with authority.

7. Data entry. Back when outsourcing was called “temp work”, data entry was one of the most common business practices handled by a third party.  For any task where a significant amount of computer time must be logged, outsourcing is a cost-effective solution.  Data entry outsourcing is especially effective on projects that only come around once or twice a year – and therefore do not require an employee on staff for the entire year.

Finding a good vendor is like adding a reliable team member to your growing company.  When choosing where to outsource these elements of your business, remember to look for established businesses with outstanding references and competitive pricing. The possibilities for your business are endless, so maximize your resources and time and watch your company grow!

In the first blog installment of this series, we discussed strategic alliances, why small technology companies should seriously consider entering into a strategic alliance with other companies, and provided factors that a business owner of a small technology company should consider in determining which proprietary technology should be made available for licensing under the strategic alliance. Once you, as the business owner, have identified proprietary technology for licensing, what additional steps should you consider in identifying a strategic alliance partner to develop, market and distribute products based on your technology?

In this second blog, we discuss how you can find strategic alliance partners and why these partners should be further qualified.

Tip – Identify and qualify your potential licensees.

Do you know of any companies that are selling products relevant to your technology? If so, they may be a prospective partner, particularly if your technology can be used to improve or complement the prospective licensee’s existing products, and your partner has the means to commercially exploit the technology. However, if you don’t know of any companies offering such products, how do you find prospective partners? Good sources for potential licensees include listings in trade magazines, directories, patent and literature searches. Visiting trade shows or conferences and word-by-mouth publicity is another good way to identify and meet potential licensees. Alternatively, you can also publicize the availability of a license through trade journals and the United States Patent and Trademark Office (USPTO) Official Gazette if the technology is patented, and have potential licensees come to you.

Before you contact the prospective partner to discuss your technology further, you should qualify the potential licensee by ascertaining several factors such as financial strength, technical and market expertise, sales/distribution network, commitment to relevant product line, etc. Much of this information is available online for free or through commercial databases offered by LexisNexis, Hoovers, and Dun & Bradstreet. The investigation can be done in a brief fashion initially before the licensee expresses an interest in the technology. You can follow up more fully once the prospective licensee shows some interest.

Qualifying the prospective strategic alliance partners before you begin serious discussions is important, as it may help a small business owner to avoid headaches later on by not entering into an alliance relationship with the wrong partner. Before considering serious discussions with a potential partner, it is helpful to have a non-disclosure agreement in place. We will discuss such agreements in the next blog.

Welcome to the second in a three-part series on how to develop your brand.

In the first posting we talked about how important (and smart) it is to capture the investment of time and money you have put in your company by developing a brand that will build equity for you and your business.  We learned about the importance of developing your brand from within and reviewed some exercises to help you define your true differentiators by looking at the inside first.

Now, we look to the outside world to learn how the competition can influence our brand.  When researching the competition look at their business and how they speak to the world. This will help you gain deeper insights into how to make your brand stronger. To analyze the competition follow these four easy steps:

1. First, choose 3-5 direct competitors.  If you don’t have that many in your market then look to another city or country and find a competitor there – even if you never plan on expanding to that area.
2. Scour your competitor’s website and learn about their products, services and what they are emphasizing.  Note the type of photography they use (people, nature, etc.) and their colors (primary, bright, conservative, funky and so on). If your competitor is a publicly traded company search engines like Google Finance can give you great insight into how your competitor’s company is structured.
3. Note factual details: price, selection, distribution, service delivery and so on.  In the case of a services-based business look at methodology, customer base, geographic reach.
4. Then, start to note the language they use - “fastest”, “best quality”, “luxury”, “softest”, “tastiest” – whatever it is. You will find that all your competitors speak the same way. Note these similar phrases and descriptive words.

If you feel you don’t have any competition then think about a time when you will be very successful and list the companies you know will want to become your competition.  Repeat the fours steps for them.

In summary this research is:

• A definition of your brand that was articulated by your culture and who you truly are (Step 1),
• A picture of your competition – what types of images and colors they are using, overall do they look clean and sophisticated or crowded and confusing,
• A summary of what they offer and how they offer it, and
• A list of the standard phrases and wording used by your competition.

Use this wealth of knowledge to see how your organization IS different from the rest.  If done right, when you layout all this information before you the answer should jump right out at you.

If your competition is talking about luxury, quality and craftsmanship then you should use other words like elite or best-in-class, care, attention-to-detail, and skill.  Be certain to stick to a vocabulary that feels like the right fit for your organization.

It is shocking sometimes how little knowledge some companies have about their competition.  A deeper review of your competition and who you are will build a strong and differentiated brand.  If done with care and focus, how you present yourself to the outside world (your brand) will be both different than the rest (the competition) and a true reflection of what you are on the inside.  When you have this outside-inside match you build trust with your customer and that breeds success!

Did you know that 80% of all sales happen on or after the 5th contact? Yet most small business owners only do one or two follow-ups with their prospects and clients. That means you are missing out on a lot of business and leaving money on the table.

Although we worry about contacting people too much, studies show that most people need several contacts (that are useful and relevant to them) before they’ll say yes to being your client.

People need to learn to trust and like you before they’ll enter into a relationship with you and that takes consistent connection. Follow up with people to let them know that you are sincere in wanting to form and nurture an ongoing relationship, that you understand their concerns and problems and that you’re in for the “long haul”.

Also, people buy when they are ready, not when you’re ready to make a sale! It’s important to constantly keep in front of people so that when they’re ready to buy you’ll be there. In other words, you have to follow up with them regularly.

People usually need to be exposed to a marketing message several times before making a decision to purchase.

Another reason to stay top of mind in your prospect’s and client’s mind is that they may not be ready to purchase but they may know someone else who is. By staying in front of them with consistent follow up, they’ll have the information, confidence and trust to refer you to their friends, family, associates and others.

Start implementing some follow-up marketing strategies today to make ongoing, consistent contact with prospective and current customers - so that you can stop leaving money on the table!