American Innovation

If you watched Jeopardy, you saw IBM's computer, Watson, beat two of the very best champions in competition on TV. Watson is now being looked at by the healthcare industry to help suggest treatment options and diagnoses to doctors. Northrop Grumman has developed a drone that is run by computer, (no pilot). It can land and take off on a carrier at sea. It is nearly invisible to enemy radar. At M.I.T., they have developed the Leveraged Freedom Chair to be used in developing countries where a normal wheel chair is impracticable.  Built with bicycle parts, it has a leverage system designed to muscle over hard terrain...cost: about $100.00.  The Sapien Heart Valve, made by Edwards Lifesicences, does for aortic valves what the stent did for clogged arteries. Approved by the FDA on Nov. 2, this is the first replacement heart valve delivered via catheter through either a leg artery or minor chest surgery, rather then open heart surgery.


All this comes from great ideas of large or small businesses which started with an entrepreneur with a vision.


What are you doing in 2012?


Your Business Guru,


John
Source:  WJS

The new entrepreneur

With high unemployment and few jobs to be had ,the new entrepreneur is showing up .A new study reveals that 25 million Americans age 44 to 70 hope to start a new business or nonprofit in the next 5 years or so. Some people have decided, instead of looking for a new job, and selling their services for less money, they are going to try to do their own thing. This is what built America!  What kind of business do you go into? I think you should go with your strengths and what you love to do. Something your good at. Where to start. Get your self in good shape,running a new business is hard work. Make sure you are financially sound, no credit card debt,outstanding loans, etc. This helps keep your overhead down for when you start up your new business.Find out if there are any programs out there that can help you, maybe get a grant for hiring people, from your local government, check universities, economic development  agencies. Take all the help you can get. Look for funding in all different places. But, must of all NETWORK, NETWORK, NETWORK ! The more people you talk to  the more contacts you make. Now, you are building your business!
Good Luck


Your Business Guru
John

Merry Christmas

I have had a hard time believing 2011 is just about over, I am looking forward to 2012. But, I was thinking of this past year, and what all has happened in the world and how lucky we all are to live in America. Christmas is a good time to remember family and friends and be thankful for what we have.I don't know if you  have given any thought to way this country thrives on all different peoples, religions, and nationalities  while the rest of the world is killing them selves.We are very different, us Americans,but why? Mainly our system of government, where the people are in control, not the government! Free speech, freedom to worship OUR god,rule of law.That's why everyone wants to come here. We Americans complain a lot, ( we have that right!). but we would never change the way we live. God has truly blessed this country.
Next year we are going to push our businesses to another level, we have the freedom to do that and more. But  for now,may I wish you all a Merry Christmas and happy holidays.


Your Business guru


John

Small Business to Public Company

I've noticed that we are starting to see some I.P.O.'s happening: Zynga, Groupon, etc. What's an IPO? Initial Public Offering, when a company goes public for the first time. So you started your company a few years ago and it is doing well, and you want to grow larger. You have been looking for financing from banks and lenders and you cannot get enough money. This is when you start thinking about going public. Start talking to investment banking firms and along with your CPA.  They will come up with the true evaluation of your company. Once that is determined, you decide how many shares you want to put out on the market. Most companies only release a small percentage of available stock to remain in control. You want to keep more than 50%.  Remember, you are selling your company to stock holders and getting money for shares in you company. This is a way to get the funds you need without borrowing, but, you are giving  up some of your company. If you have a really good company, this is the way to cash out for all your hard work. Be sure before you do it!  I have seen company owners buy back all  the stock because they don't like the overview of stockholders or the SEC, and public companies have  a lot more regulations!


What do you think?
Your Business Guru,


John

Government VS Small Business

Did you see the debates on Thursday night? What did you think? Some people say you shouldn't mix politics with business. I say they are tied in to each other, or why would all the large companies lobby congress? The next question is, how does a small company lobby for what they want? They join associations that relate to their business, or the chamber of commerce.  I had a small  mortgage banking company, so I joined the Mortgage Bankers Association.  That enabled me to have a large force pushing for what I need for my business. That brings me to the question of who to vote for? Do I vote because I am a Democrat or a Republican, or because the candidate is pretty or speaks well? Do you vote because you like what they say, or they are pro business? How ever you vote,  keep in mind, if you are in business, what happens in D.C. will effect you in some way.  Remember, your vote has consequences. In earlier blogs we discussed regulations on business, think about that when you vote. I, for one, am looking for the MOST pro business candidate. I am selfish, shoot me!
Let me know what you think

Your Business Guru,

John

Agricultural lending

I don't  know if you noticed, agricultural lending is hot! Farming is finally working for the small farmer. They are getting good prices for there products. In other areas commercial lending is still hard to get for small businesses.We had discussed in the past about community banks not lending. So, as a small business what do you do if you need funds to carry you forward until the recession ends? Banks want to see profits and strong financials for the past three years plus a YTD. Maybe we should all go into the farming business. I don't see much changing till the election in 2012. until then we just have to persevere. There are commercial lenders  out there who do lend to small companies, there rates may be higher, but you can get the money you need. If you are not sure what to do, send me an email at jg@beltwaydevelopment.com.  I will respond quickly.  Maybe I can help.  I haven't written in a week, mainly because I have been working on getting this blogging stuff to work. I think I have it working now! So, lets talk about business and MONEY!


Your Business guru
John

small business vs. socialism

I heard the president's speech in Kansas yesterday. It reminded me that in the past we had discussed  that the country started with 90% self employed and 10% employees.  Now it's the opposite...why?  I think one of the reasons is too much government.  As the government gets involved in our everyday lives and sets new regulations to work by, we tend to stop thinking for ourselves and just do what we are told. If the government takes care of you, you don't have to take as many risks to get ahead. Little by little, they are changing the way our country has operated for the last two hundred years. If this keeps up, we will look like Europe. Their system is crashing because the government controls everything. Big government feeds on itself, the more it takes, the more it needs to survive.  You saw what happened to the USSR.  You are seeing what is happening to Europe today. Take a look at what has changed with us in the past three years, huge increase in regulations (in every sector), huge debt, low employment, and no help to the small business. All the help goes to the friends of the administration. We are seeing what happens when the government goes into the venture capital business,"Solandra", 500M in losses, and there are more. I think it is time we all got involved in the running of our government. Vote out the socialists and lets get back to making money again! It's that, or the United States of Greece!
Let me know your thoughts.


Your business guru,
John

What is an Entrepreneur ?

In case you haven't noticed, for the past three years, business STINKS!  A lot of layoffs. Unemployment is high(9%).  And yet, a lot of people are looking to go into their own business.  Might as well give it a try, there aren't any jobs. So you want to be an entrepreneur? OK, here's what you will need:  A vision of the future, what's out there for me? A positive attitude , total confidence you will succeed, and, have no fear!
(When this country was started, 90% of the populace were business owners. Today, 10% are business owners. Why? A lot of risk, a lot of hard work, and most people are happy with a job.  They don't want to risk losing what they have). That's what makes being an entrepreneur very special. You need your independence! You would rather give orders then take orders. You know you will pay a price, but the thought of building your own business and the success that could follow, is too much to resist. It's in your gut, you MUST drive forward.  You MUST win!
Is this you? Are you crazy enough to try it on your own? Got the guts? If so, I want to hear from you. Let's talk about your business.
This blog is new.  I haven't tried this before. Here I go again, another new business. What is the first thing i must do to get this blog off the ground? The answer is in the past blogs I wrote. Show me what you have learned. 
Some feed back?


Your business guru,
John




  

Financing your business

On my past blogs, we discussed restaurants,manufacturing, retail, etc. Maybe, today,we should look at financing these businesses. I have seen a lot of start ups using credit cards. That could be 15% to 20% money. Very expensive indeed! To know what you will need, you must create a business plan. This is a break down of what your business is, where it will be located, what it will cost to start, and/or keep it running. You will need a break down on cost and a use of funds (what you need the money for). All this is called an Executive Summary. Any bank  or commercial lender will ask you for this. One of the most important parts of this summary is how you are going to service the debt (pay off the loan) and are you experienced in the business you want to start. This is your" business plan", do this first! Now that you have gotten this done, what's next? Where to go for money. At one time your local community bank was the place to go but not today.  They are under government scrutiny, only the very best qualified borrower can get money. This means great credit(750+ scores), a large bank account (5 to 6 figures), plus a lot of assets. Getting money has become very tough. A better place to go is a commercial lender or broker who specializes in this type of lending. There are government programs to help. SBA,( small business administration) insures loans made by these commercial lenders. 504, 7A, etc. are some programs. These programs have better terms and are easier for you to live with. I have worked with them for 30 yrs. I can help get you set up. I hope this helps.


give me some feed back
Your Business Guru
John
.

Monday after Thanksgiving, wow! glad it's over. All that food! which brought me to today's subject,The Restaurant  business.Your a great cook,you always wanted to be in the business. What do you do? Where to start?Things you should know. 95% of all start up restaurants FAIL!  why? mainly because of lack of money, poor site selection,wrong menu for the area,and spend to much on the interior and not have enough money left to advertise and market to the public,the MOST important thing to do.Remember," it all starts with the sale."I don't care how good you cook, if no one comes in , you lose.What's important? site selection,size of restaurant, size of menu, cost break down on food costs, insurance, interior furnishings. How fancy do you want to go? What hours do you want to be open? Do you look at a franchise or go it alone. A good franchise will help you succeed better than alone. Which franchise?  Boy, the questions never end. I spent 15 years building and renovating  restaurants, my partner has been in the restaurant operation side of the business for 30 years.There is not much we don't know. need help? send me a note.
your business guru
John

business knowledge

Our last blog was on regulations in business, in the ,"what to do when looking to start a business”. Today , we are going to talk about ,knowing business. I owned a cabinet shop in the early 80's, had 40 employees, some left to start their own companies, they failed, came back. Why? Knowing your trade is just part of running a business.( and by the way, i cannot build a cabinet!)You can build cabinets, but can you figure out how to sell them for a profit? Do you know how to figure out the overhead of your company? Do you know how to buy raw materials at a good price, and establish credit with the wholesaler? Do know how to negotiate a rent lease on your factory. Building the cabinets in just a small part of owning a cabinet company. This works for any type of business.Manufacturing,retail, service,etc.

Ask yourself these questions before you spend any money. Not sure what to do? email me. I will help with general questions, need more, We can work out a consultant agreement, this will be the best money you ever spent!

see you next time

Your Business Guru

John

starting a business? what about the regulations?

This is my first blog,a little about me. I have been in business for 40 years. I started in construction in N.Y.. I made it for 17 years,(tough business in N.Y.) went to Florida, started a manufacturing business, sold it after 9 years. Bought a 16,000 sq.ft. warehouse/office building, have good rental income. went in to the mortgage business in 1999, had a radio show for 6 years, got a lot of loans. got out in 2010.
I have seen people go into a business without checking out all the short falls, they LOOSE!
THAT'S WHY I AM HERE!
ask your questions and maybe i can help.I will give you free general advise. when i have to do all the details, their is a fee.
Every business has different regulations,check this first. did you know in Florida a interior designer needs a license? If you go into the food business, there are Fed. regs, state reds. local city regs., etc.. all cost money, from YOU.
We will have different subjects each week, stay tuned. leave a comment.
John