Startups: Sense and Social Media

If you're a small startup with nothing existing in the way of marketing collateral and we meet, it's quite possibly you'll hear this--much of it you already know:





Sense

First, get a website. Go buy your domain name right now (See? You knew that).

Next, consult with a designer on your website. In fact, consult with at least three. If you're a startup who has engaged a marketing consultant/strategist/"swift kicker" and s/he hasn't offered to do this for you, speak to at least two more marketing...people. It's good practice to get at least three bids on just about anything, so take the time to comparison shop. While it's entirely possible that your consultant is recommending a specific vendor for very good reasons, you are completely entitled to know how and why this conclusion was reached for you...unless you're exactly the same as the last guy. You're not. What were the other, "next best" options and what are the differentiators?

There are lots of free and low-cost services available on the 'net that allow you to build your own site. There are also designers that work with these programs that can apply their expertise and pass along the cost savings associated with the simpler program, which may be all you need. If you go with the free stuff, it's going to look like free stuff. This is to say, your site will look either a) like any number of other sites out there that just used the same template or b) terrible because you are not an expert in website design. Especially if your website is a chief portal and absolutely if it is a point of sale, doing it yourself could prove disastrous. And there's this whole SEO thing...if you don't know, ask an expert (see above).

Social Media

Then get yourself a Page, or Public Profile, or whatever they're calling it this week, on Facebook. Why? My favorite (true) story about talking to a startup prospect who was opening a home security business has me going through the above conversation, nearly verbatim, and then telling him that his business needed a Page and a Group on Facebook. Why both?

The Page

My principal value proposition for putting businesses on Facebook Pages is that, "If you are a business with customers, you're engaged with social media whether you want to be or not." Case in point: A prior post of this blog contradicted a BusinessWeek article. I "tagged" the author--figured I'd be open about it--and she responded, including a link to her Twitter page, which of course I dutifully visited. Well, actually it wasn't "duty," it was that even if we disagree, I obviously could learn from this person. But when I got there, I found a page full of nothing but complaints about two things: 1) the weather and 2) a vendor. There were lots of re-tweets and @thisandthats complaining about this vendor. So I really couldn't "follow" her, because I don't have time for that, but the real point is, her vendor was missing out on the conversation...not present in the first person, only in the third. Thus the clarifying sentence of same value proposition, "If you give your customers a place to talk about you, they might give you the opportunity to participate in the conversation."

Someone who says it differently (better? Quite possibly.) is Reid Carr in a March 19, 2009, iMedia article, Build a Social Media Plan That Never Sleeps. "The more accessible you are to your customers than your competitors," Reid says, "the more likely it is that you're going to be a part of your customers' lives." Here's a link to the very kickin' article: http://www.imediaconnection.com/content/22398.asp

The Page is the place to overtly "be" your business. Your brand, your value proposition, your customer interface. I think a majority of Social Media wonks would agree with this.

The Group

I may well be outside the majority of said wonks about the use of a Facebook Group...and I hope this sparks some discussion. My take on sustainable, value-adding, effective, "netiquette"-friendly use of the Group for business is to raise awareness of the need that your product or service fills. So, the home security company would lead discussions on, for example, tips that make your home more secure, e.g. always close your garage door, put your lamps on timers. Don't push your product here, push the need and demonstrate your expertise.

Back to the Prospect

"I'll never do that Facebook stuff," he said. "I spent the last two months observing behaviors in my old company, looking for people I might eventually want to recruit, and everywhere I looked I saw Facebook on people's terminals instead of their work."

Two things here: First, he's right, if you're taking the Which 70's Child Celebrity Are You? quiz on Facebook in the middle of the workday, you're a prime and deserving candidate for unemployment. Second, he just told me, in his objection, exactly why he needed to be on Facebook...because whether it's right, whether we like it or not, that's where the eyeballs are.

And brother, it doesn't cost a dime.

And There's More

Facebook isn't for absolutely everyone but almost every business should research opportunities for, and think hard about, a social media strategy. Components of this strategy include effective time management, driving traffic among your online vehicles and much more. It's too much for a single blog so a partner and I are putting it in a kickin' book you'll read swiftly and use as a resource forever: Connect and Contribute: Creating a Social Business, coming soon. Real soon.

Now, don't wait for C&C to get your website professionally done or to get yourself on Facebook. Go ahead and test the waters, experiment. Don't do anything you wouldn't do in front of your mother and you'll be fine. Then when you have some experience and familiarity with the battlefield, your strategy mapped out and your tactics in place, you'll be kicking serious swift.

The Future of Facebook

This blog is not sponsored.

Last week, I had a conversation about Facebook for business with two Denver area business activists, one of whom was Todd Morrissette, Vice President of Business Development for Corossol Software. Todd's vision of Facebook as a business tool was so compelling and interesting that I asked him to be interviewed for this blog. Todd responded with a complete article so eloquent that I have decided to publish it here in its entirety. I can get kicked pretty swiftly, myself.

Corossol Software specializes in developing software applications for small and medium size businesses. Corossol's latest product is Centreboard, an online document management solution that assists companies with automating their business processes. Its goal is to provide an enterprise software solution without enterprise software costs. For more information, please visit www.corossolsoftware.com or contact Todd at todd.morrissette@corossolsoftware.com.

It is from this perspective that Todd offers his views about Facebook as a business tool. I hope you find it as kickin' as I do:

Facebook in its current form is a social networking tool. It was not developed for business, but for personal use by individuals. However, as we have seen over and over, tools developed for one group is often used by another. Typically, tools for business have been adopted for personal use such as cellular phones and email. Facebook is having the trend move the other way. Businesses are now trying to determine how to best benefit from the Facebook phenomenon. The reason businesses are adopting Facebook is because, unlike its social networking predecessors such as My Space, Facebook is being used by a larger demographic, not just teenagers. Since Facebook is being accepted by such a diverse group, businesses are taking notice and are trying to see how they can most benefit by adopting the application.

Currently, we are seeing businesses start to use Facebook as a marketing tool to communicate their name and brief descriptions about themselves. This is being done by creating “Fan” pages. Once users become “Fans” of the company’s page, the company can then direct market to those individuals by posting information on the page or sending emails to the individuals. In order to take it a step further, companies can create groups for people to join. Groups allow companies to find “like minded” people and then direct market to them. Here is an example of an organization using a group to its advantage:

A company that prepares tax returns for individuals creates a group called “Doing Taxes Stinks”. Several people may join this group for many reasons, such as they agree, they think it’s funny, or perhaps because a friend joined. The group starts to grow and grow using the 6 degrees of separation theory. Soon the group is over 200 strong. Now the tax company has the names of 200 users who think doing taxes is not fun and they can now market directly to these users through the group page.

More importantly is where the future of Facebook will take us. Facebook is already making changes to fit the needs of businesses by trying to outline how a business can create a Fan page or Groups.

I believe Facebook will eventually become a collaboration tool businesses can use to bring people in remote locations together- virtually. Businesses will be able to create “internal groups” where project team members can provide status updates, schedule meetings (events), post messages to the team and post documents to be shared by the team. This will be an application a business can easily introduce to their employees because their employees are already familiar with the tool. Furthermore, their users enjoy going to Facebook and do it frequently. Employees will not be as reluctant to adapt to the change and the application will be accepted more.

Once again we are seeing how the internet is providing a change to how we do business. With the new social networking websites, individuals are able to communicate with one another like never before. Communication is frequently listed as a major issue in companies, by both employees and management. Facebook, as well as other social networking websites, offers another option for people to communicate. Today, Facebook users are able to share their thoughts and communicate easily to masses. Likewise, users are able to filter who they want to hear from. In the near future, the same will be done within organizations who seek creative solutions to their historical issues.

Swift Kickin' Rebuttal: "Debunking Six Social Media Myths"

Prologue

The title and tone change now, because I decide these things. This blog is not sponsored (more's the pity).

Swift Kickin' Intro

This week: A return to Social Media. I'm a little fired up thanks to reading an article, "Debunking Six Social Media Myths" by B.L. Ochman, BusinessWeek, February 19, 2009, http://www.businessweek.com/technology/content/feb2009/tc20090218_335887.htm.

I thought about simply Tweeting this article, just to gain an honest reaction, but upon a second read I've decided I think it may discount small business entirely. I love discounts but hate being discounted. Therefore, I think it deserves a swift kick. Here 'tis.

Ochman's Myth #1: "Social media is cheap, if not free."

Summary: The tools are free but you need $50K to use them effectively.

Rebuttal: See Ochman's Myth #3, below, wherein she states of her own experience, "...with not one dollar spent on advertising, we were able to generate...traffic in our first three days..." Ochman's success speaks to the importance of having a clear strategy in regard to use of and participation in the medium, which is true regardless of milieu.

Most small businesses don't have $50K for any single marketing plan component. Goals, strategies and expectations must take this into account. Accounts and useage of Facebook, Linked In, Blogspot and Twitter cost zero dollars. Double that to add a Facebook Page and a Group to stimulate needs awareness. Total cash flow? Zero.

Ochman's Myth #2: "Anyone can do it."

Summary: Very few "experts" have proven track records, and examples of failures abound.
Rebuttal: The medium is dynamic, changing right now, as you read this. Did you see that? It just changed again. My favorite failure: Do a Google search for "rahodeb," and read the sad story of John Mackey. Burger King's "unfriending" Facebook promotion was a bomb...but they tried. If you're not in business to take risks, get out of business. If you're using social media to manipulate and deceive, get out of business.

"Track record" depends on differing goals of differing initiatives. In the most quantitative sense, establishing one remains nebulous vis-a-vis social media (see Ochman's Myth #6, below).

The tools are painfully easy to use. For those with the ability to read plain English, instructional knowledge is a Google search away. Are you more comfortable with a trainer? Here's an upcoming bargain in the Denver area: http://www.denverdataman.com/content/march-social-networking-seminar-series. Still can't do it after all that? Um...maybe you're not "anyone."

Ochman's Myth #3: "You can make a big splash in a short time."

Summary: Unless you already have a large market presence, gaining large awareness using social media is going to take a while, if it ever happens.

Rebuttal: You can engage in line with your brand. My friends at Experience Pros (http://www.experiencepros.com/) have taken to this stuff like fish to water, and the fact that they haven't been targeted for acquisition or elimination by a Madison Avenue agency factors not one iota into their evaluation of social media.

Not all "big splashes" are national. You can raise awareness within a particular demographic or geographic community. Say, for example, the one in which you do business...

Ochman's Myth #4: "You can do it all in-house."

Summary: Few in-house teams have the full gamut of experience to incorporate social media into a full-fledged marketing campaign, and to manage it effectively thereafter.

Rebuttal: If you're a small business, you or your brother-in-law is probably the in-house marketing team, so...OK she's right on "all," but you can get started and experiment. You can build a Facebook Page. You can put a profile on Meetup.com and join groups that can help you network appropriately. You are intelligent and savvy enough to do this. You got a business of the ground, didn't you? This is a walk in the park, comparatively. Small businesses shouldn't
do anything "all in-house" except for those few, core things they do best. Where's a great place to find, communicate with and evaluate potential partners? Social media.

Ochman's Myth #5: "If you do something great, people will find it."

Summary: You need to drive traffic to your social media efforts in order to get people to notice them.

Rebuttal: Is Ochman's underlying assumption that your use of a social network is an end of itself? I don't know. One of the appeals of existing social networks is the ability they provide to promote something wonderful you've done...your shop, product or service, for example. No marketing tactic stands effectively on its own. Here, right out of Facebook for Dummies, are some ways to drive traffic to your social media site...stop if you've read them before,
pertaining to some other medium or marketing tactic or anything else:

• Email people
• Talk to people
• Put a link on your website
• Put a sign in your store
• Use the tools available within the social network where you've built your microsite.

If you're not employing these tactics to raise awareness about everything you do anyway, that breeze you keep feeling is your competition passing you.

Ochman's Myth #6: "You can't measure social media marketing results."

Summary: Mentions, comments and click-throughs provide ready measurement criteria.

Rebuttal: You tell me how mentions and click-throughs equal sales and I'll recant this whole article. Ochman is measuring use, not results. If, in order to justify the hour or less it takes to build a Facebook Page, for example, you need tangible ROI, then social media will fail your test...today. That said, given the low barrier to entry and easily-reached ancillary goals available, it is inadvisable to wait until all the metrics are figured out to get started. Plant your flag, befriend the natives, become knowledgeable of the customs, participate, gain some "street cred"...and when and if your research reveals YOUR particular path to profit using social media, activate that plan on a battlefield with which you are now familiar.

Swift Kickin' Conclusion

You need an hour, some knowledge and a plan. You don't need $50K. If you're in small business and listening to the social media naysayers, you're getting your..."swift"...kicked.

The Stimulus and Small Business

This week we will examine the timely topic of the American Recovery and Reinvestment Act, a.k.a. the federal "stimulus" plan, and its opportunities and impact on small business.

Scam Letter Alert
Not surprisingly, the thieves have emerged to prey on the hopeful but nondiligent. A scam letter on counterfeit SBA letterhead is currently making its way around small businesses. It asks for bank and account information (Source: http://www.bizjournals.com/triad/stories/2009/02/16/daily62.html) so that the agency can determine eligibility for a tax rebate. If you receive this letter, contact the Office of the Inspector General Fraud Line at 800-767-0385 or OIGHotline@sba.gov, then please shred and recycle it immediately. Want to really get put off your dinner? See below at the amount of money this type of anticipated activity justifies.

Opportunities
The Stimulus--as I will begrudgingly refer to this bill--provides $730 Million for the Small Business Administration for the purpose of providing "new loans to assist small businesses with meeting debt payments," offering, "higher loan guarantees" and lower fees (http://www.ketv.com/money/18755827/detail.html). Here is a breakdown of the SBA's allotment, courtesy of Infozine:

• $375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans
• $255 million for a new loan program to help small businesses meet existing debt payments
• $30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
• $20 million for technology systems to streamline SBA’s lending and oversight processes
• $15 million for expanding SBA’s Surety Bond Guarantee program$25 million for staffing up to meet demands for new programs
• $10 million for the Office of Inspector General

(Source: http://www.infozine.com/news/stories/op/storiesView/sid/34149/)

Much of the additional spending is for infrastructure and government facility modernization. Small businesses who deal directly with, or support firms who sell to, the federal government have optimistic outlooks. Similarly, there will be opportunities at the state level,especially for businesses who qualify as a Minority Owned Business, Woman Owned Business or Disadvantaged Business. If you have previously dismissed or are at present conflicted about the considerable time, effort and hundreds of dollars required to become a certified MBE, WBE or DBE, there may be no better time or motivator than this Act, right now.

For Colorado small businesses, here is a document that explains certifications and the process:
http://www.dot.state.co.us/EEO/CERTIFICATION/linkedFiles/CDOT_CertificationRoadMap.pdf.

Complaints

The New York Times (http://www.nytimes.com/2009/02/20/business/smallbusiness/20sbiz.html?ref=business) reports,"a little detective work is needed to reap the full benefits of the law." And to understand whether or not you benefit. Businesses can deduct $250,000 for capital expenditures, for example, but only if they are profitable. Similarly, the bill allows a 50 percent bonus deduction on capital investments made in 2008 or 2009 that normally would be deducted over many years, but if you're not making money, you're probably not purchasing.

The bill provides for companies to use losses from 2008 to offset profits in any full year that two to six years ago and obtain an immediate refund. This is only for 2008 and for companies with annual revenues of $15 million or less...so, in other words, carrybacks are okay...just like they were before this bill.

Opinion

I recently presented at a University of Denver symposium (http://www.estlow.org/) at which Global Voices co-founder Ethan Zuckerman accepted an Anvil of Freedom award. Mr. Zuckerman spoke of the importance of remaining active and diligent in pursuit of facts. When a student asked "Why should we care?" Mr. Zuckerman responded, "Because awful things happen in the shadows."

According to SpeedReadingBlogger (http://www.speedreadingblogger.com/tag/stimulus-bill/), the average person reads 200 words per minute. There are 207,421 words in the stimulus bill. That's 17 hours and 17 minutes; longer if you need to go to the bathroom or blink.

No one in Congress read the whole bill. Why it couldn't be chunked out like all other political agendas? Is this administration using "the politics of fear," which candidate Obama quite rightly condemned, as leverage to promote an ideological agenda? Is it irresponsible to vote "yes" on a bill you haven't read, and does the unprecedented magnitude of expense this bill proportionately increase the darkness of the deed?

Conclusion

Please find and take advantage of the opportunities in the stimulus package. And please hold accountable yourself, your partners and your government. Know that this bill is full of shadows.

Resources for The American Recovery and Reinvestment Act:

http://www.recovery.gov/

http://readthestimulus.org/

Full Text of the Bill http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf

Obama's Plan: Where's Your Opportunity, Part IV

"Universal Retirement Savings"

Continuing in our analysis and treatment of The Plan by Rahm Emanuel and Bruce Reed:

Prologue
This installment is privileged with the expertise of Jordan Curry, Financial Representative for Northwestern Mutual. The author of this blog wishes the reader to know that the blog is not sponsored by Northwestern Mutual or any other entity.

Background on Subject Matter Expert
Mr. Curry, an alumnus of Arizona State University's Carey School of Business, serves as Chair for the Board of Directors for a Denver-based travel company and actively supports multiple nonprofits, including Save Our Youth, the Pat Tillman Leadership Through Action Program and the Business School Council. He is a member of Denver Young Professionals and the Financial Planner Alliance. Mr. Curry can be reached via email Jordan.Curry@nmfn.com, or his website http://jordancurry.nmfn.com/.

Summary
With "Universal Retirement Savings," The Plan seeks to address the convergence of increasing "demands on...nest eggs" and our aging population; the decline in available pension plans and low percentage of retirement savings; and the wealth gap, by reforming the "complicated" tax code and "alphabet soup" of retirement savings plans and raising the minimum wage.

This installment acknowledges and summarizes the entirety of the initiative as stated in The Plan, but analysis focuses primarily on a single aspect having the greatest potential impact to small business: The 401 (k) requirement. In previous installments, this blog has sought to identify opportunity areas for small businesses in order to empower its readers with advantageous positions on the change curve. While it is the sincere hope of the author that reaction and discussion uncover ideas of that nature, this installment would be incomplete without addressing economic realities past and present and the considerable risks that also accompany this proposal.

To preserve context, the summary provided by the authors is restated
here in its entirety:

From now on, every job ought to come with a 401(k). An aging society cannot afford to keep saving less and risking more. We need new means to create wealth, based on the needs and responsibilties of twenty-first-century employees and employers. Employers should be required to offer 401(K)'s, and workers will be enrolled unless they choose otherwise. If they switch jobs, they can take these accounts with them. When their paycheck goes up, so will their savings. Instead of a workforce in which only half the workers have retirement savings plans, every American will have one.

"More Ownership and More Security"
One stark change since the book's publication in 2006 is a position reversal on the consequences of debt. The Plan criticizes President George W. Bush for, "dig[ging] the country still deeper into debt--an unlikely way to strengthen the nation's long-term finances," and for having "a political vision, not a practical one." In 2009, the "stimulus" plan for which President Obama has been pressing is funded by unfathomable debt and is peppered with political objectives.*

Another is public perception of the 401(k) as a dependable source of retirement income. According to a February 12, 2009, US News and World Report article (http://www.usnews.com/articles/business/retirement/2009/02/12/how-did-your-401k-really-stack-up-in-2008.html), in 2008, the average American employee lost 14 percent of her retirement savings--a $19,000 drop in average account balance.

"Americans aren't savers," says Curry. "The savings rate has historically been negative. That's a large part of the current credit crisis, and it's a result of fiscal mismanagement. Most people look at their paycheck and see a chunk of it sent to Uncle Sam for Social Security, but the reality is that personal savings is a very large part of life after retirement."

The Plan agrees: "71 million Americans work for an employer that doesn't offer a retirement plan, and another 17 million who could take part in an employer plan don't. More than half of all households have no retirement savings beyond social security." First, why don't those 17 million engage?

According to The Plan, its because "the burden of navigating and managing" plans and the sheer number of them is too bewildering. Curry disagrees, offering that having a menu of options
for savings and investment is a result of market demand for specialized services. "Problems arise," Curry offers, "when individuals aren't educated or diligent in learning about, or
managing, their retirement funds," which he admits is the realm of the professional financial advisor. "As you age, your investment portfolio should rebalance. Much of our problem right now is that this hasn't happened; people have portfolios that are in the wrong risk area."
Curry calls attention to The Plan's educational designs (previously discussed in this blog), offering that finance as a pre-college core curriculum item would provide substantial opportunity for long-term economic stability for individuals, business and the nation as a whole.

"A 401(k) with Every Job"
The Plan's proposal is to:

[R]equire all employers to offer workers a pension or 401(k), and expect all workers to contribute unless they make an affirmative step to opt out...[E]very employee would automatically be enrolled in the employer's 401(k), with the choice to opt out at any time. If employees switch jobs, they could take their account with them to a new employer. Employers could enroll each worker in their own plan, or in a state-sponsored retirement plan similar to the Thrift Savings Plan [Author's note: The TSP is currently available only to military and federal government personnel (www.tsp.gov).]

The current Obama position, available on the White House website (http://www.whitehouse.gov/agenda/seniors_and_social_security/)
states:

The Obama-Biden retirement security plan will automatically enroll workers in a
workplace pension plan. Under their plan, employers who do not currently offer a
retirement plan will be required to enroll their employees in a direct-deposit IRA account that is compatible with existing direct-deposit payroll systems. Employees may opt-out if they choose. Experts estimate that this program will increase the savings participation rate for low and middle-income workers from its current 15 percent level to around 80 percent.

The Obama administration also plans to "ensure that all employees who have company pensions receive detailed annual disclosures about their pension fund's investments" by requiring "full disclosure of company pension investments." The Plan calls for similar transparency, and even assigns agency responsibility for enforcement. Neither Obama's position statement nor The Plan make provisions for the size of a company relative to these requirements, nor do they provide for the specifics for creating a state-sponsored savings plan accessible by the private sector.

Opportunity and Risk Areas
The populist motives are clear, but questions and concerns abound for small businesses:

• Will the requirement to provide a retirement plan raise barriers to entry for my competitors?
• Will this requirement require me to employ fewer people? Or decrease
  wages? Will it limit my ability to expand?
• Will transparency in reporting requirements increase my payroll and overhead costs, and by how much?
• Into what actual quantitative and qualitative changes to business operations do these changes translate?
• In the market for talent, this change presents opportunity. Where? How can we seize this change for competitive advantage?

Conclusion
Curry's final observation on the topic is reflective of the fact that such a large majority of Americans are employed by small- to medium-sized businesses. He states, "These owners create the wealth in our society. Raising the minimum wage doesn't promote economic growth,
but economy is just one element of society." Similarly, the challenges posed for small businesses by this administration's agenda will probably provoke a reaction of discomfort and resistance.

It is this blog's hope that its readers will emerge as educated opinion leaders, with solutions at the ready.


*According to the Wall Street Journal, $500 Billion of the $6.2 Trillion Weatherization Assistance Program is for beaureaucratic "expenses;" there's $6 Trillion to help General Services Administration buildings go green; and there's even money for yacht repair (http://online.wsj.com/article/SB123379617394050229.html). The Christian Science Monitor says $300 Million has been set aside for what might be golf carts (http://features.csmonitor.com/economyrebuild/2009/02/14/my-five-favorite-things-in-the-stimulus-bill/). In fairness and if you haven't heard, they did take out the condoms (http://www.politico.com/news/stories/0109/18066.html).

Obama's Plan: Where's Your Opportunity? Part III

Continuing in our analysis and treatment of The Plan by Rahm Emanuel and Bruce Reed:

Prologue
This installment is privileged with the expertise of Rhonda Sinnema and Jennifer Marshall of College Assistance Plus (http://www.caplusdenver.com/). The author of this blog wishes the reader to know that the blog is not sponsored, by CA Plus or any other entity.

Background on Subject Matter Experts Experts
CA Plus gives students and their families guidance and direction in choosing a college, comparing financial aid packages, and accepting offers to attend. They work with families and prospective collegians to develop strategies to maximize financial aid. CA Plus clients leave schools of their choice with degrees…not debt. Mrs. Sinnema is the Owner of CA Plus Denver; Miss Marshall serves the firm as Director of Education.

Summary
With “Universal College Access,” The Plan seeks to make college available to those who want to go but can’t (“The main reason young people don’t go to college—or don’t finish—is cost.”); the “achievement gap,” i.e. holding colleges accountable for student dropout rates; to “provide lifelong training” for “any worker at any age…at an accredited institution;” and “to strengthen and reform our system of public education in elementary and secondary school,” the latter of which is identified as, “the weakest link in our educational system.”

This installment will acknowledge and summarize the entirety of the initiative as stated in The Plan, but analysis will focus only on the collegiate aspect. To preserve context, the summary provided by the authors is restated here, in its entirety:

We must make a college degree as universal as a high school diploma. More than ever, America’s success depends on what we can learn. We have an education system built in the last century, with a school year left over from the century before that. In this new era, college will be the greatest engine of opportunity for our society and our economy. Just as Abraham Lincoln gave land grants to endow our great public universities, we will give the states tuition grants to make college free for those willing to work, serve, and excel.

“Closing the College Gap”
Here we find a jarring reminder of what has changed since The Plan was published in 2006 as the authors show disdain for the practice of “subsidizing banks;” perhaps ironically preceding the prediction, “In the years to come, with the strength of our economy on the line, going to college will itself be a form of national service.”

The authors propose, first:
[To] simplify the tax code by replacing the five major existing education tax incentives—the Hope Scholarship, the Lifetime Learning Credit, the deduction for higher-education expenses, the exclusion of employer-provided education benefits, and the exclusion for qualified tuition reductions—with a single $3,000-a-year refundable credit for four years of college and two years of graduate school.

Second, The Plan states we should, “pass a truth-in-tuition law that requires colleges to set multiyear tuition and fee levels so that those in each incoming freshman class know in advance exactly what their degree will cost them.”

Finally and “most important,” the authors propose to, “provide Tuition Grants to states,” so they can, “offer free or low-cost tuition to students who work their way through school, excel in class, or commit to careers in critical professions.”

Other Components
To “hold colleges accountable for producing more graduates,” i.e. increasing graduation rates, The Plan prescribes the US adopt “the accountability system in Britain, which holds back a portion of colleges’ public funding until students actually graduate.” In this way The Plan addresses what it calls, “The Other Dropout Problem.”

The Plan also proposes changes to non-collegiate education and non-traditional collegiate education. Sinnema and Marshall agree with The Plan’s assertions that these areas, particularly pre-college education, are in need of immediate improvement. This component will be addressed in a separate and subsequent blog installment.

Relevancy
CA Plus advises that the only significant change to this Plan item in regard to the shift in our economy is that college affordability is even more prevalent an issue. People who saved in a 529 plan or intended to borrow against their house to pay for college now find their house devalued, their ability to borrow diminished and their retirement accounts in decline.

The brunt, say Sinnema and Marshall, is borne by the middle class. Perkins and Stafford Loans along with Pell Grants, the most common forms of financial aid, are awarded based on financial need, typically low end of middle income. Private loans are more difficult to acquire as well: According to http://www.finaid.org/, the number of private lenders facilitating college loans was 60 just last year; now it is 39.


Opportunity Areas
Anyone able to open cash flow opportunities for middle class families will have fast friends. There is a broad chasm of difference between, “How can I help you?” and, “What can I sell you?” Practitioners of the latter have contributed greatly to our current mess, and should not be welcomed in your network. Allow the market to marginalize the dinosaurs seeking transactional relationships learning the wrong lessons from, or ignoring, Enron and Madoff. Transformational, relationship-enriching, “win/win” opportunities can and will be created with increasing frequency. The sun is setting on the day of the one-sided deal.

The Plan does not address how these changes will be implemented. Opportunities exist within implementation, and may avail to entrepreneurial entities proactively seeking implementation avenues.

Regardless, an increased number of college students increases demand for textbooks, and the design, printing, and delivery thereof. Staff—academic, administrative and support--and facilities will need to be expanded. As a number of students and programs will be nontraditional, the number of internet-based programs will increase. The content and structure of curricula will need to be adapted to fit the medium, and a range of technologies will need to be integrated to collegiate systems and maintained. The initiative(s) may also, Sinnema and Marshall argue, increase the perceived selection available, thereby raising demand for options and research.

Of course, these are what occur to a few minds. Input is welcome. Please check in frequently to leave and read comments, and next week for further analysis of The Plan.

Obama's Plan: Where's Your Opportunity? Part II

Continuing in our analysis of The Plan, by R. Emanuel and B. Reed:

What’s the connection?
This installment does not attempt to debate the merits of, or offer an opinion on, The Plan. Rather, it accepts as reality the intentions and ability of those in power to execute it. An ongoing discussion on feasibility, motivation, or any other aspect of The Plan is most welcome, but beyond the scope of primary blog content. The goal of these installments is to illuminate direction and identify opportunities for small businesses in the changes prescribed by the new leadership in Washington, D.C.

The author of this blog encourages the reader to remain aware of current events but to remember that rarely and only in extreme circumstances do singular events alter the long term policy intentions of a Presidential administration. Events such as the recent bombing of sites inside Pakistan and/or the change in policy regarding stem cell research, especially when undertaken in such a nascent Presidency, should be understood to be positioning for the long haul. In short, the actions that dominate daily media reports are means, not ends. The Plan is about ends; this blog will suggest means by which they may be accomplished and opportunity areas created therein.

Background
The "bedrock principle" behind The Plan is, “You do your part, and your government, your company, and your country will do theirs (page 52).” By gaining followers to this principle, the authors hope to achieve a "new social contract for economic growth (p 46)" in America.

The first of The Plan’s tenets is “Universal Citizen Service.” To preserve context, the summary provided by the authors is restated here, in its entirety:

If you forget everything else you read in these pages, please remember this: The Plan starts with you. If your leaders aren’t challenging you to do your part, they aren’t doing theirs. We need a real Patriot Act that brings out the patriot in all of us by establishing, for the first time, an ethic of universal citizen service. All Americans between the ages of eighteen and twenty-five should be asked to serve their country by going through three months of basic civil defense training and community service. This is not a draft—nor is it military. Young people will be trained not as soldiers, but simply as citizens who understand their responsibilities in the event of a natural disaster, an epidemic, or a terrorist attack. Universal citizen service will bring Americans of every background together to make America safer and more united in common national purpose (p. 54).

Emanuel and Reed present two options for implementation, both centered on Americans aged 18 to 25. The first involves the creation of a new program:

[T]he nation will enlist them for three months of civilian service. They’ll be asked to report for basic civil defense training in their state or community, where they will learn what to do in the event of biochemical, nuclear or conventional attack; how to assist others in an evacuation; how to respond when a levee breaks or we’re hit by a natural disaster. These young people will be available to address their communities’ most pressing needs (p 62).

The second option, “for those willing to make a longer commitment,” comes with a prescriped expansion of Americorps (p 62) http://www.americorps.org/.


Opportunities
Even as the US government increases its own responsibility and involvement with the economy and its players, there are limits to what it can accomplish. Successful marketers pose questions such as, “What needs are unmet/underserved?” Another way of looking at this might be to say, “What might be in it for me in supporting this effort?” The answer lies in fulfilling the needs of the client—in this case, your community; your government. They know where they want to go; how can we help them get there?

Needs that private enterprise may offer in the execution include:

• Transportation – of youth to and from training centers
• Lodging – of participants and facilitators
• Facilities – principle and support facilities, i.e. medical, storage
• Infrastructure – Where will the training take place? Some communities will require more change and preparation than others.
• Diversion – entertainment for participants and facilitators
• Training – supplying the subject matter experts, trainers, simulators, materials, etc.

Opportunities may also avail in the follow-through. What, the astute observer asks, happens once the training is finished and these young people return to their communities with this knowledge? How can the community take full advantage?

Ongoing reinforcement and ROI for the community can be realized, and private enterprise can find opportunity, through (for example):

• Community meetings on the training - facilitating and moderating discussions on the changing physical and psychological impact the initiative has on the community.
• Executing and managing changes to physical and procedural infrastructure that will inevitably result from the training. This will include residential, commercial and municipal areas.
• Rewarding these youth for their contribution, and validating their sacrifice.

How can we help to ensure these programs maintain an acceptable level of effectiveness? That conditions remain optimal for learning, retention and re-conveyance? How will a program like this alter this generation, and future generations, in terms of their worldview and stewardship? What will be their outlook and long-term goal for our nation?

What will the answers to these questions reveal for the next level of opportunities? And the next…?

WIFM
Anyone who has been given pause noticing our young people isolate themselves behind their iPod earphones will surely be able to appreciate the initiative to re-engage our youth. “Many aspects of our lives,” The Plan offers, “are simply not the common experiences they once were…Opportunity and responsibility go hand in hand (pp 66-67).”

Perhaps this is the time for which many entrepreneurs have been preparing; a chance to profit fairly while strengthening your community.

Next:
Next week’s installment will focus on “Universal College Access,” and will feature expert input from Jennifer Marshall, Director of Education for College Assistance Plus Denver http://www.collegeassistanceplus.com/.

Obama's Plan: Where's Your Opportunity? Part I

On this day, January 20, 2008, Barack Obama is inaugurated as President of the United States.

In 2006, Rahm Emanual http://www.huffingtonpost.com/2008/10/27/obamas-chief-of-staff-rah_n_138240.html, then a US Congressman from Illinois, penned The Plan: Big Ideas for America (The subtitle has since been altered, and is now “Big Ideas for Change in America.”) www.readtheplan.com with fellow Clinton White House veteran and liberal journalist Bruce Reed http://www.ndol.org/ndol_ci.cfm?kaid=86&subid=191&contentid=3420. The book purports “a new social contract for the twenty-first century (Page xviii)” by way of eight high level directions they prescribe.

Emanuel and Reed split loyalties in the 2008 US Presidential election. Reed worked with Senator Hillary Clinton, penning the debate zinger, “change you can Xerox (
http://www.politico.com/news/stories/1108/15314.html).” Emanuel threw his support to fellow Illinoisan Barack Obama and was selected to be the new President’s Chief of Staff immediately upon the conclusion of the campaign. With the appointment of Senator Clinton to lead the State Department and multiple additional Clinton White House veterans to other posts, the split between the authors seems to have been temporary; the shared ideology intact.

As Obama’s actions reinforce his belief in the tenets put forth by Emanuel and Reed, as similarities exist between The Plan and Obama‘s Blueprint for Change booklet, and as he enters office on the wings of a broad mandate, small business owners and entrepreneurs have an opportunity to choose where they operate on the change curve. In a broad sense and at a high level, over the next several weeks this blog will dedicate itself to identifying the opportunities and challenges for these people and their businesses.

Objectivity will be a goal. Experts will be consulted and interviewed. Each topic will be addressed, as will changes that have occurred since publication--most significantly and consistently, the growing financial crisis that, three years ago, only a few had the courage to acknowledge and still fewer to confront.

The prongs of The Plan are:

1. Universal Citizen Service - “All Americans between the ages of eighteen and twenty-five should be asked to serve their country by going through three months of basic civil defense training and community service (P. 54).”
2. Universal College Access - “[W]e will give the states tuition grants to make college free for those willing to work, serve and excel (P. 55).”
3. Universal Retirement Savings - “From now on, every job ought to come with a 401(k) (P. 55).”
4. Universal Children’s Health Care - “[C]ut the cost of health care so that every business can afford it and every child in America can at least get it (P. 55).”
5. Ending “Corporate Welfare” - The authors' central strategy to fund the aforementioned goals (P. 56).
6. Tax Reform - Simplify the tax code (P. 138), establish a corporate flat tax of 35 percent (P. 138) and increase the overall tax burden on the wealthy while decreasing it on families earning less than $100,000.00 per year (P. 145).
7. Winning the War on Terror - “[A]dding to the special forces…expanding the US Army by 100,000 more troops…a new GI Bill (P. 56),” and other reforms.
8. A New Energy Policy - “[A] sweeping campaign to develop new energy technologies (P. 56)” centered around decreasing dependence on foreign oil by emphasizing hybrid vehicles (P. 167).

Next week’s post will analyze the Universal Citizen Service notion, and suggest its potential impact on small businesses. Eventually, we will explore The Obama/Biden Blueprint for Change, and compare and contrast it with The Plan and current events.

Again, the goal of these explorations will be to identify and illuminate the opportunities for small businesses; to provide an opportunity to ride on the crest of the wave of change.