Young Entrepreneur Shares Common Sense Commandments for Success in Business on September 27 Economic Perspectives

Omar Soliman, co-author of Effortless Entrepreneur: Work Smart, Play Hard, Make Millions, is the September 27 guest on Economic Perspectives, 5:30 p.m. – 6 p.m. on KAZI 88.7 FM.  Listen live online at kazifm.org.

Soliman started the multimillion-dollar franchise College Hunks Hauling Junk with his partner and co-author Nick Friedman when they were both just twenty two years old.  They followed 10 common-sense commandments to building a straightforward, fun, and successful business that does a simple job well.  Here are the their 10 commandments for success in business:

1. Never sacrifice health, family or friendships for business reasons
2. Mistakes are problems only if you don’t learn from them
3. Ideas mean nothing without actions
4. Start with a vision, create a strategic plan and live by it
5. Create effective systems to keep your business on track and enable individuals to succeed.
6. Work ON the business from the outside, not IN it
7. Develop staff, client, and community loyalty
8. Image is everything
9. Be the best at ONE thing
10. There are always people smarter than you – hire them!

Peter Chapman, author of The Last of the Imperious Rich, Guest on KAZI Book Review September 26

Peter Chapman, author of The Last of the Imperious Rich: Lehman Brothers, 1844 – 2008, is September 26 guest on KAZI Book Review, 12:30 p.m. – 1 p.m. on KAZI 88.7 FM. Listen live online at kazifm.org.

When Lehman Brothers filed for bankruptcy on September 15, 2008; it sent the American financial system into a free fall that that ultimately resulted in an unprecedented intervention by the government…Read more at http://www.kazibookreview.wordpress.com.

Interview Available About African American Income and Poverty

I interviewed Ed Welniak, chief of the Income Statistics Branch for the U.S. Census Bureau, about the findings of the Census Bureau’s Income, Poverty, and Health Insurance Coverage in the United States: 2009 for Economic Perspectives.  We discussed the median household income of African Americans and poverty for African Americans and Hispanics.  To listen to this 3 minute interview click here: Ed Welniak Interview.

Number of Hispanic Businesses Grew 44 Percent Reports Minority Business Development Agency

The U.S. Commerce Department’s Minority Business Development Agency (MBDA) and the U.S. Census Bureau announced that the number of Hispanic-owned firms increased by nearly 44 percent between 2002 and 2007 to 2.3 million, according to data from the U.S. Census Bureau’s 2007 Survey of Business Owners. Employment at these firms also grew by 26 percent from 1.5 million to 1.9 million workers, significantly higher than that of non-minority-owned firms.

“It is encouraging that the Hispanic business community is growing, but we need to create the right conditions for Hispanic-owned businesses to grow more quickly,” MBDA’s National Director David A. Hinson said.  “We encourage Hispanic-owned businesses to explore new markets and take advantage of their existing cultural, family or business ties in foreign countries to export as a means to grow and compete in today’s global economy.”

While minority-owned businesses are experiencing substantial growth, Hispanic businesses still represent only 9 percent of all classifiable businesses but 13 percent of the adult population.  In 2007, average gross receipts for Hispanic-owned firms increased to $152,700 from $141,000 in 2002, but are still well below gross receipts for non-minority-owned firms, which had average gross receipts of $490,000.

“If the number of Hispanic businesses was representative of the adult Hispanic population in America, there would be 3.4 million Hispanic businesses generating $1.4 trillion in gross receipts paying 7.5 million workers,” Hinson said. “There is still progress to be made in the growth of minority businesses that would give them an even greater impact on our economy.”

Of all Hispanic-owned firms with employees, approximately 44,000 have revenues of more than $1 million, accounting for $224 million in gross receipts and the employment of 1.2 million workers.

“These firms have business models that are helping to facilitate growth, and we need to share the best practices of these firms with the rest of the minority business community,” Hinson said.

David Hinson

MBDA continues to collaborate with other public and private-sector partners to help minority-owned businesses grow and to create the right conditions to support that growth. Initiatives include

MBDA’s Global Construction Program, which provides opportunities for minority businesses in the construction industry to compete for more than $1 billion in international construction contracts; building relationships with traditional and non-traditional sources of funding, which generated nearly $1 billion in financial packages for clients facilitated through MBDA last year; and increasing the number of Hispanic businesses that export, businesses that are twice as likely to export compared to non-minority-owned firms.

“The businesses that we represent are a vital source of job creation and economic stimulus but their true potential is going unrealized,” said Javier Palomarez, president and CEO of the U.S Hispanic Chamber of Commerce. “That is why the U.S. Hispanic Chamber of Commerce is working with MBDA and other federal agencies to tackle long-standing challenges our firms have with access to contracts and access to capital.  We need to reach business parity to ensure a strong future for the growing, and aging, American population.”

Javier Palomarez

As the nation’s population demographics change, the Hispanic business community also continues to change.  Highlights:

• Between 2002 and 2007, the rapidly growing Hispanic population increased by 18 percent, compared to only 1 percent growth for non-minorities.
• Hispanic-owned firms outpaced the growth of non-minority-owned firms by 44 percent from 1.6 million Hispanic businesses to 2.3 million during this period.
• Employment at Hispanic firms also surpassed employment at non-minority-owned firms, growing by 26 percent from 1.5 million workers to 1.9 million workers, compared to 0.03 percent growth for non-minority-owned firms.
• Average gross receipts generated by Hispanic firms increased by 8 percent from $141,000 per firm in 2002 to $153,000 per firm in 2007.  In comparison, all minority firms and non-minority-owned firms had gross receipts in 2007 of nearly $179,000 and $490,000, respectively.
• In 2007, the adult Hispanic population represented 13 percent of the U.S. population, but Hispanics held only 9 percent of all classifiable businesses, 3 percent of gross receipts and 3 percent employment of all classifiable businesses.
• If the number of Hispanic firms reflected the 2007 adult Hispanic population share, there would be more than 3.4 million Hispanic-owned firms, an additional 1.2 million beyond the current level.
• If gross receipts and paid employment also reflected the 2007 adult Hispanic population share, Hispanic firms would generate approximately $1.4 trillion in gross receipts, $1.1 trillion more than their actual receipts, and employ 7.5 million workers, about four times their actual employment.

The Survey of Business Owners defines Hispanic-owned businesses as firms in which Hispanics own 51 percent or more of the equity, interest or stock of the business.

About the Minority Business Development Agency (MBDA)

MBDA, www.mbda.gov, an agency within the U.S. Department of Commerce, celebrates 40 years of promoting business growth for minority businesses.  In doing so, minority-owned firms are better equipped to create jobs, impact local economies and compete successfully in domestic and global marketplaces.  With a nationwide network of more than 45 business centers and strategic partners, MBDA assists minority entrepreneurs and business owners with consulting services, contract and financing opportunities, bonding and certification services, building business-to-business alliances and executive training.

Jeffrey Cruikshank, author of The Man Who Sold America, on KAZI Book Review

Jeffrey Cruikshank, author of The Man Who Sold America: The Amazing (but True!) Story of Albert D. Lasker and the Creation of the Advertising Century, will be the guest on the 2nd half of KAZI Book Review today, 12:45 p.m. – 1 p.m. Listen online at kazifm.org.

Poverty/Income Statistics, Marketing Book, and Urban League Focus of September 20 Economic Perspectives

Jeffrey Richard, president of the Austin Area Urban League, Ed Welniak, chief of the Income Statistics Branch of the U.S. Census Bureau, and Brian Halligan, co-author of Marketing Lesson from the Grateful Dead will be the guests on the September 20 edition of Economic Perspectives, 5:30 p.m. – 6 p.m. on KAZI 88.7 FM.  Listen live online at kazifm.org.

Jeffrey Richard

• Welniak will provide a summary of the findings of the Census Bureau’s Income, Poverty, and Health Insurance Coverage in the United States: 2009, with a special focus on changes in the median income and poverty for African Americans.
• Jeffrey Richard will discuss the Austin Urban League’s programs that address poverty and jobs.  He will also provide information on the Urban League’s Equal Opportunity Day Celebration coming on September 24.
• Halligan, who is CEO of internet marketing company Hubspot will discuss how his new book can help small businesses improve their marketing strategy.  Read Tim Chamberlain’s review of Marketing Lessons of the Grateful Dead by clicking here.

Book Review: Marketing Lessons from the Grateful Dead by David Meerman Scott and Brian Halligan

By Tim Chamberlain

This book’s subtitle is “What every business can learn from the most iconic band in history,” and anyone from a marketing executive to a starting entrepreneur will find something to help change the way they think about marketing their business.

Scott and Halligan note in the introduction that “the Grateful Dead is one huge case study in contrarian marketing.” Contrary is a good way to describe the strategies of the Grateful Dead, as nearly everything they did went against standard operating procedure, both in terms of the music industry and in terms of established business practice in general.

For those unfamiliar with the band, the Grateful Dead formed in 1965 in San Francisco, and continues to play in various lineups today. Their musical style was complimented by their long, improvisational concerts, which were a long way from the rehearsed sets that most bands still use today. The band also has a long history of connecting directly with their fans, and the fans responded with fervent dedication to the band and its music. The most fervent of these fans followed the band from town to town across the country and became known as “Deadheads.” This book takes a look at the savvy, but authentic ways the band connected with their fans, and how these strategies can work today.

The Grateful Dead were pioneering social media before such a term was invented. The band reached out to its core audience (Deadheads, in this case) and truly made them part of the experience, which only increased their following. Even without the technologies we have today, the band was able to connect with their fans (and the fans with each other), and build a huge brand in the process. They did things that no other band did, such as concentrating on touring instead of album sales, encouraging fans to record shows and trade tapes, and partnering with parking lot entrepreneurs instead of running them off. Though it may seem unlikely at first glance, Scott and Halligan demonstrate how the strategies of the world’s most successful jam band can differentiate anyone’s product from its competition.

The authors make their aim clear when they write that “Marketing Lessons from the Grateful Dead will show you how to think and market like the band, which is to think and market differently from your competition.” Each of the chapters examines an aspect of exactly how they marketed differently, and how these strategies can work in today’s businesses. Scott and Halligan acknowledge the chapters as free-standing units to be read in any order, a nod to the band’s freewheeling style. Each has a focus on a particular element of the Grateful Dead’s marketing strategy and how these translate to the modern business world. Included at the end of each chapter is a helpful “Rock On” section that gives tips and ideas on how to put these lessons into action.

Scott and Halligan, both already established in the marketing world, hit it off right away when they discovered a shared love for the Grateful Dead during their first meeting. Halligan is the CEO and co-founder (with Dharmesh Shah) of HubSpot, a marketing company focused on inbound marketing tools, such as targeting search engine results pages and measuring the effectiveness of those tools. Scott is an online marketing strategist and professional speaker that has written five marketing books to date, most notably The New Rules of Marketing and PR which he has also turned into a one-day seminar.

Income, Poverty and Health Insurance Coverage in the United States: 2009

The U.S. Census Bureau announced that real median household income in the United States in 2009 was $49,777, not statistically different from the 2008 median.

The nation’s official poverty rate in 2009 was 14.3 percent, up from 13.2 percent in 2008 — the second statistically significant annual increase in the poverty rate since 2004. There were 43.6 million people in poverty in 2009, up from 39.8 million in 2008 — the third consecutive annual increase.

Meanwhile, the number of people without health insurance coverage rose from 46.3 million in 2008 to 50.7 million in 2009, while the percentage increased from 15.4 percent to 16.7 percent over the same period.

These findings are contained in the report Income, Poverty, and Health Insurance Coverage in the United States: 2009. The following results for the nation were compiled from information collected in the 2010 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC):

Income

Race and Hispanic Origin (Race data refer to people reporting a single race only. Hispanics can be of any race.)

• Among race groups, Asian households had the highest median income in 2009. Real median income declined between 2008 and 2009 for non-Hispanic white and black households, while the changes for Asian and Hispanic-origin households were not statistically different.

Regions

• In 2009, households in the West and Northeast had the highest median household incomes. (The apparent difference between the two regions was not statistically significant.) Real median income declined between 2008 and 2009 in the Midwest and West; the changes for the Northeast and South were not statistically significant.

Nativity

• In 2009, households maintained by naturalized citizens had the highest median income. Native-born households and those maintained by noncitizens experienced income declines from 2008 to 2009, in real terms. The changes in the median income of all foreign-born households and households maintained by a naturalized citizen were not statistically significant. (See Table A [PDF].)

Earnings

• In 2009, the earnings of women who worked full time, year-round were 77 percent of that for corresponding men, not statistically different from the 2008 ratio.
• The real median earnings of men who worked full time, year-round rose by 2.0 percent between 2008 and 2009, from $46,191 to $47,127. For women, the corresponding increase was 1.9 percent, from $35,609 to $36,278. (The difference between the 2.0 and 1.9 percent increases was not statistically significant.)

Income Inequality

• The change in income inequality between 2008 and 2009 was not statistically significant, as measured by shares of aggregate household income by quintiles and the Gini index. The Gini index was 0.468 in 2009. (The Gini index is a measure of household income inequality; 0 represents perfect income equality and 1 perfect inequality.)

Poverty

• The poverty rate in 2009 was the highest since 1994, but was 8.1 percentage points lower than the poverty rate in 1959, the first year for which poverty estimates are available. The number of people in poverty in 2009 is the largest number in the 51 years for which poverty estimates are available.
• In 2009, the family poverty rate and the number of families in poverty were 11.1 percent and 8.8 million, respectively, up from 10.3 percent and 8.1 million in 2008.
• The poverty rate and the number in poverty increased across all types of families: married-couple families (5.8 percent and 3.4 million in 2009 from 5.5 percent and 3.3 million in 2008); female-householder-with-no-husband-present families (29.9 percent and 4.4 million in 2009 from 28.7 percent and 4.2 million in 2008) and for male-householder-no-wife-present families (16.9 percent and 942,000 in 2009 from 13.8 percent and 723,000 in 2008).

Money Saving Health Insurance Tip for Small Businesses in Texas

Federal health reform legislation gives a tax credit to small employers who provide health insurance to their employees.  If you have fewer than 25 full-time equivalent employees with average annual salaries below $50,000, your business could be eligible for a credit beginning this tax year.  To learn more about the tax credit and other ways health insurance reform affects you and your business, visit www.tdi.state.tx.us.

How Behavioral Economics Can Improve Your Business Focus of September 13 Economic Perpsectives

Marina Krakovsky will discuss how to better understand human behavior to improve the performance of your business on the first segment of the September 13 edition of Economic Perspectives, 5:30 p.m. – 5:50 p.m. on KAZI 88.7.  Krakovsky is the co-author with Kay-Yut Chen of Secrets of the Moneylabs: How Behavioral Economics Can Improve Your Business.  Listen live online at kazifm.org.

The book  is based on the work of economist Kay-Yut Chen at Hewlett Packard’s Moneylab, where he studies human behavior in simulated marketplaces.  His groundbreaking research has saved the company millions of dollars by showing how changing the right conditions can make people behave very differently.

Secrets of the Moneylab offers practical lessons being put to use right now at HP and other leading companies. It explains, for instance, how to:

• Use incentives to influence employees, suppliers, and buyers
• Determine whom to trust, and how much
• Reduce the negative effects of irrational behavior by noticing patterns that don’t seem logical—but are utterly predictable
• Overcome the human tendency to game the system
• Profit from motives beyond money

Chen and science writer Krakovsky reveal in plain English how to translate the counterintuitive findings of behavioral economics into concrete action steps for businesses of any size.