A Strategic Business and Marketing Resource

Helping senior executives identify, create and grow revenue opportunities

Amir Homayoun Rafizadeh aka Network Sommelier
Facebook, Interview Studio

Office: 312-725-3635

678 Partners helping with tax deduction and tax deferral for high income earners

2010-09-27T14:57:00.000-05:00

Let's discuss disclosures first (as always these might not be appropriate for everyone):

Last quarter of the year before income taxes have to be paid. Current legal and tax environment very uncertain. Who wants to do tax planning in this uncertain environment? You might be very surprised in the possibilities that are still available. Join me and Jerry Kalish where we discuss the following every Wednesday at 11am central time (Click on titles to register):

You:

Make more than $350k per year?

Are an independent contractor?

Have less than 10 employees?

Receive second income sources such as speaking engagements, book publishing and royalties?

Are over 55 years of age and looking to build a $1M tax deferred money in 5 years?

Want to put away more than $49k every year?

Seeking larger tax deductions?

If you answered yes to at least 1 of the questions you might learn a little more about the possibilities.

October 6th at 11am Central time
Pension Procrastination Planning
Why you should pay attention to what your tax professional uses for deductions.

October 13th at 11am Central time
Asset Protection Part 1
Why ERISA plans still offer the best state and federal level creditor protection for certain professions

October 20th at 11am Central time
Asset Protection Part 2

October 27th at 11am Central time
Asset Protection Part 3

November 3rd at 11am Central time
Tax Deduction and Tax Credit Part 1

November 10th at 11am Central time
Tax Deduction and Tax Credit Part 2

November 17th at 11am Central time
Tax Deduction and Tax Credit Part 3

You miss any of the above?
Drop me an email and I can send you the recording.

The entire schedule:

Helping senior executives identify, create and grow business opportunities

Amir Homayoun Rafizadeh aka Network Sommelier Facebook, LinkedIn, Twitter, Events, Interview Studio, YouTube

Office: 312-725-3635

Next Sponsored Event: Avoiding mistakes that destroy businesses and legacies October 27th workshop announcement by 678 partners

Public companies out of recession but private business owners still in the ditch by 678 Partners Network Sommelier

2010-09-24T16:53:00.000-05:00

There is a lot of chatter on social media and everywhere you look, there is advice to do this and do that. Have a Facebook presence and tweet all day. Given that all of these social media channels are totally new and we are all learning at the same time, I would still put a lot of focus on your strategy. Wrong strategy will have no payoff. Strategy, strategy and more strategy before getting into tactics (whether its social media or something else). If your customer engagement strategy is not effective, it does not matter what you do from a tactical perspective (so stop wasting your money). If you don't get the strategy right, you won't be in business for long, specially if you are in the private business market (public companies have a lot of cash and can afford to test and fail). Can you?

We hosted Rob Slee (Founder of Midas Nation) a few nights ago where a few of professional service firms and private business owners got together to hear an update on both public and private markets. The health of these 2 markets are completely on the opposite ends of each other (you should not be surprised). While there is a lot of noise and discussion as well as finger pointing on the last 8 years of Republicans and the current Democratic administration, business can and must go on. Get the strategy right first. The right strategy will attract the appropriate customer. Get the right person to negotiate the deal. Closing the deal requires a different skill set.

They just declared the official end to the recession but unemployment is still close to 10%. For many small to mid sized business it certainly does not feel like the recession has ended. Previously your local competition mattered. This is no longer the issue. Its global. Deciding on the right strategy to market, executing the right strategic contracts and relationships requires a different level of strategic planning. Welcome to the global marketplace. Can your product and service be sold overseas? Otherwise start thinking of taking market share from your local competition. Possibly merge with them? Buy them out? Sell out?

Do you have "right brain" thinkers in your firm?

In order to survive you need new talent. Train your existing talent for this new market place. Go strategy!

The full deck of the presentation is on Slideshare or drop me an email. Register at Midas nation and listen to the monthly webinars.

Idea Chef (Parissa Behnia) Email

Helping senior executives identify, create and grow business opportunities

Amir Homayoun Rafizadeh aka Network Sommelier
Facebook, LinkedIn, Twitter, Events, Interview Studio, YouTube

Office: 312-725-3635

Next Sponsored Event: Avoiding mistakes that destroy businesses and legacies October 27th workshop announcement by 678 partners

678 Partners Idea Chef Interview with Leyla Arsan from Lotus Marketing Services

2010-09-19T15:20:00.000-05:00

Leyla talks about how you should know your customer when it comes to event marketing. In order to build a good relationship and trust with prospects and clients, Leyla works very hard to really understand her customers. She uses each of the social media channels differently in order to connect and communicate. She is a big fan of Flicker and she believes its really underutilized. Her firm works on pre/post event strategies to change/effect user experience. From taking pictures, to providing cocktails, giveaways and other teasers, she hopes to leave a great impression. Customer engagement is key.

678 Partners Idea Chef Interview with Leyla Arsan from Lotus Marketing Services from Amir Homayoun Rafizadeh on Vimeo.

Enjoy!

Parissa Behnia

678 Partners Web Site

LinkedIn Profile

Twitter

Helping senior executives identify, create and grow business opportunities

Amir Homayoun Rafizadeh aka Network Sommelier

Join our online community on Facebook.

Want to be interviewed? Have a niche solution that can solve a serious business problem? Then email me so we can get a on a call and do an interview like these at our interview studio.

My sales and marketing tweets on Twitter

My LinkedIn network (invitation only)

Office: 312-725-3635

State of the US economy by 678 Partners Network Sommelier and some commentary from Midas Nation Founder Rob Slee

2010-09-14T22:13:00.000-05:00

I am a big fan of Rob Slee. If you have never heard of him, you should check out his Monday morning posts here. Its free to register and the volume of great information is just endless. I am going to include a part of his comments from yesterday. Also you should register for his webinar (info provided below).

_____________________________

In the Whitehouse’s “best case” projection, the US will average $800 billion a year in deficits this decade. A synonym for “best case” is “never going to happen.” Let’s just agree that we’ll average a $1 trillion deficit each year for the next 10 years. The problem with a $1 trillion deficit is that the government’s "discretionary" spending items totals $1.3 trillion a year. Uh-oh…rivets are starting to pop.

Many of these discretionary items are essential (such as defense spending). To eliminate the budget deficit through discretionary spending cuts, we would have to eliminate the following departments in their entirety:

Energy

Homeland Security

Veterans Affairs

State Department

Agriculture

Education

Health and Human Services

Housing and Urban Development

Interior

Justice

Labor

Transportation

Treasury

The Environmental Protection Agency

NASA

And after eliminating all of those programs, we would still have to cut defense spending by two-thirds. Hmmm…sounds like another best case scenario.

So we can’t cut our way out of this. We’ll have to raise revenues, which is another way of saying taxes will need to be increased - dramatically. Look out First Class passengers! According to the Census Bureau, the top 5% of households by income earned 21% of total incomes, or a little over $2 trillion. To close a budget gap of $1 trillion, we would need to increase tax rates on this group by roughly 50 percentage points (on top of the 40% we pay now). I think I can safely speak for the top 5% in that we’re not willing to sail on a 90% tax bracketed ship.

So what’s going to happen aboard the USS Titanic? All I can say is that I’m seeing a lot of lifeboat activity.

______________________________

It seems that the signs of a slowdown are becoming more imminent. The leading ISM number is not looking very promising. As we have talked about this for a very long time, you can do so much cost cutting and at some point the top line revenue growth has to occur. Time to buy your competition, steal market share and win new customers otherwise you wont survive for long staying in your bunkers. Time to get out and get on offense.

The latest NFIB report does not look rosy either.

Midas Nation September webinar will be on Thursday September 16th at 11am Eastern time.

Register here.

I have made reference to this Slideshare presentation many times before(put this out several months ago). Buckle up!

View our Panel of Experts

Helping senior executives identify, create and grow business opportunities

Amir Homayoun Rafizadeh aka Network Sommelier

Join our online community on Facebook.

Want to be interviewed? Have a niche solution that can solve a serious business problem? Then email me so we can get a on a call and do an interview like these at our interview studio.

My sales and marketing tweets on Twitter

My LinkedIn network (invitation only)

Office: 312-725-3635

Avoiding mistakes that destroy businesses and legacies workshop announcement by 678 Partners

2010-09-12T09:17:00.000-05:00

For one day, fifteen of finest private business experts in Chicago have been assembled in one room. The Medinah workshop will be held on October 27th at the Medinah Country Club in Illinois. 678 Partners recognized at least 3 of the speakers that we highly recommend. 1) Bruce Leech the Co-Founder of Evolve, 2) Gene Rosendale, Partner at Alliance for Strategic Advantage, 3) Dr James Weiner, Co-Creator of Inheriting Wisdom. The workshop is put together by Peter Christman, CEO of the Exit Planning institute. By using the discount code MEDINAH2010, you could receive a $200 discount. You could mention 678 Partners as your referral source in the invitation. Check it out yourself!



WHEN
Wednesday, October 27, 2010 8:00 AM - 5:00 PM
Central Time

WHERE

Medinah Country Club
6N001 Medinah Road, Medinah, IL 60157
USA

View Workshop Features & Benefits

View Workshop Schedule

Please respond to this exclusive invitation by clicking one of the buttons below

and use your special discount code MEDINAH2010 to receive a $200 discount

off of the workshop fee for being a friend of 678 Partners.

	Having trouble with the link? Simply copy and paste the entire address listed below into your web browser: http://guest.cvent.com/d/NgVASzXpUU2KV19JntL3ZA/j76m/P1/1Q?

	If you no longer want to receive emails from The Exit Planning Institute please click the link below. Opt-Out

How charities can benefit on private business owner income tax savings

2010-08-11T23:09:00.000-05:00

Before I start talking about this I want to make sure I get the disclosures out of the way. The discussion here might not be relevant and/or suitable for everyone. You have to check with your tax and legal counsel before considering such strategy. For the full presentation please contact me first to have a discussion before providing you with more information (and the complete presentation).

Ok, now that we got the disclosure out of the way, here is a short You tube video describing the high level strategy:

This strategy can only be successful if the right team of advisors from your legal, tax, investment and insurance professionals coordinate on design, execution and implementation. Any shortcomings would reduce the outcome significantly.

So what can a potential strategy achieve if implemented correctly?

Public company executives that have unsold stock, retiree's with large IRA's, and any asset such as real estate and/or other assets that would kick off income tax or capital gains as a result of a sale. It is important to note that this strategy will not work for every single executive or retiree.

A short look at before and after the strategy from the perspective of the Charity:

A quick look at the potential benefits from the heirs perspective.

I have a copy of these slides on my LinkedIn Slideshare or alternatively you can email me here. Just to remind everyone again that this strategy is not suitable for everyone. You should seek legal and tax counsel before implementing this or any other similar strategy.

Amir Homayoun Rafizadeh aka Network Sommelier

A strategic business and marketing resource

Looking for a resource and can't find it? We would be happy to make a strategic introduction if we can. Join our online community on our Facebook page.

Want to be interviewed? Have a niche solution that can solve a serious business problem? Then email me so we can get a on a call to do an interview like these at our interview studio.

My business and marketing tweets on Twitter

My LinkedIn network (invitation only)

Office: 312-725-3635

Multiplying your business x10 in just 3-4 years by Midas Nation's Rob Slee

2010-08-09T14:54:00.000-05:00

Its a great time for business owners to plan for growth.
Rob Slee notes from this week on how to accomplish this. Register for their September webinar below.

How MidasNation Works

I founded MidasNation so that more companies could compete effectively in this new era of business called the Aggregation Age. This Age reflects the reality that firms around the world have evolved and learned to leverage their intellectual capital (know how) in ways that were not possible just ten years ago. Firms are aggregating their industry spaces without actually owning them. Control – not own – your sphere of influence is the mantra of this Age. Knowing how to play by the new rules in this Age can lead to substantial value creation.

Because change is now exponential, those who position themselves in front of the change wave can generate dramatic results in short periods of time. For the prior five thousand years or so before the 1990s, humanity experienced arithmetic change (1 plus 1 plus 1, etc.). Humans were the agent for change then, and we change ever so slowly. Technology is now the agent for change, and the Internet enables geometric change (3 times 6 times 9, etc.). An increasing rate of change means that a very few people can have an overly dramatic impact on their surroundings. I call these people capable of making this dramatic impact Value Architects.

The Aggregation Age follows a simple rule: incrementalism leads to more of the same; departurism can lead to financial independence. This means that we must revolutionize ourselves and our businesses in order to control our destiny.

All great movements are built on a great insight. MidasNation is built on the following: we can modify the behavior of any motivated business owner so they can become a Value Architect, thus enabling them to create substantial business value. We have learned that this behavior modification system is replicable and scalable. Can you see what this means? We can change America for the better. Together, we can change the entire ballgame.

We mentor because that’s the only way to enforce behavior modification. You can’t consult your way there. You can’t talk your way there. You must show the way by drawing on people who have already reconceptualized their own behavior. Enter Midas Mentors.

Mentors have been successful business owners and managers because they understand the role of revolution in a business and market. Midas Mentors believe that if you run with the pack, you’ll get a pack return. And that’s just not good enough. We’re 10x’ers - meaning we intend to increase the value of a business by at least 10 times from where we find it.

So how do we help owners realize a tenfold increase in the value of their businesses in just 3-4 years? We surround business owners (we call Mentorees) with 3-4 Midas Mentors and then employ an aggressive value creation process. We not only change the owner’s (and their key managers) behavior, but we do this without hurting the main business. We’re niche-aholics, and we help the management team identify 2-3 niches that leverage the company’s intellectual capital. For the first year we build-out these niches by utilizing a Midas aggregation business model. It takes about a year for the team to learn to manage in a highly leveraged (intellectual capital, IC, not debt) model, which uses market makers and strategies that deliver 10x results. Once behavior is modified, the management team can’t imagine operating any other way. In other words, they become value architecting niche-aholics.

So how are we paid for helping to generate such a massive change? MidasNation gets a fixed fee (at cost) for creating a Company Wealth Map, which is the next generation strategic plan. The Map shows the niches, business model, strategies and tactics required to meet the value creation goal. It describes the revolution, both on a management behavioral and company change basis. Beyond paying a fixed fee, there is no further commitment by the owner or MidasNation to move to mentoring.

If, assume after the Map is presented, the company ownership and Midas agree to move forward., An agreement is then created that describes the responsibilities of the parties on an ongoing basis. This agreement also fixes a beginning value for the mentored company, and says that MidasNation (or one of its Institutes), will receive some part of the value created over some period of time, typically 3-4 years. This is typically 15% of the new value created over 3-4 years. The agreement states how the business will be valued over time – say 5 times recast EBITDA minus interest-bearing debt. MidasNation will never be a shareholder, nor will the business need to be sold at the end of the agreement. We’ll refinance ourselves out at that time.

Why would a business owner give-up a portion 15% of the new value created in 3-4 years? Because the owner keeps 100% of the existing value of the business at the start of the agreement, and the large majority 85% of the new value created. In effect the owner realizes a substantial increase in value beyond what he/she would have ever achieved under his/her old way of doing business. For example, suppose the starting value of a mentored business is $1 million, and after 3 years the new value is $10 million. Midas would be paid 15% of $9 million (the difference between $10 million ending value and $1 million starting value). What if no new value is created over the 3-4 years? In this unlikely case, Midas would receive nothing.

Look, it all comes down to the following: are you satisfied owning a business that likely won’t create financial independence for you and your family, or do you want more from your business and life?

- Rob

Comment directly to Rob at R.Slee@midasnation.com

Remember to REGISTER at MidasNation.com and visit MidasNotes weekly to read the latest from MidasNation Founder Rob Slee and discover Midas Managers' views on various issues affecting private business.

Midas Nation registration site.
Check out Midas Nation for yourself.

Don't be left out. Time to act now.

Amir Homayoun Rafizadeh aka Network Sommelier

A strategic business and marketing resource

Looking for a resource and can't find it? We would be happy to make a strategic introduction if we can. Join our online community on our Facebook page.

Want to be interviewed? Have a niche solution that can solve a serious business problem? Then email me so we can get a on a call to do an interview like these at our interview studio.

My business and marketing tweets on Twitter

My LinkedIn network (invitation only)

Office: 312-725-3635

Business development is still a top priority for the remainder of 2010 and beyond

2010-08-08T16:25:00.000-05:00

I still see people who aggressively attend networking meetings. Yet no one follows up the next day when they collect multiple business cards. Why bother? Add the time taken to get to the meeting, meet new people (who might have nothing to do with your line of business) and time taken to get back to the office or home. Its a couple of hours from your day. In the business development world, thats a lot of time that could have been used in a more productive way.

I have built a strategic network of connections, clients and other business development professionals utilizing the power of LinkedIn. As you may know for me LinkedIn is not about the first man or woman to 40,000 connections. Its about strategic connections and partners. I attended a few very interesting business development seminars last month downtown (2 for free and one worth $299) and to my surprise I took away a number of great idea’s to enhance my own business development efforts. I am sure you are very successful, and I don't want to assume you need any new business but just wanted to share these events because I found them very valuable. Feel free to share this with any of your colleagues.

Building a referral machine (3:30-5:30) on August 12th (FREE)

Secrets of a rain maker (3:30-5:30) on August 26th (FREE)

Referral Machine Boot Camp (8:30-4pm) on August 27th ($299)

I also posted both of these events on my LinkedIn profile (on the events page) to share them with others in my network.

Thanks

Amir aka Network Sommelier
678 Partners A strategic business and marketing resource

Amir Homayoun Rafizadeh aka Network Sommelier
Need a business and marketing resource and can't find it? Post comments on our Facebook page and we would be happy to make an introduction.
My business and marketing tweets on Twitter

My LinkedIn network (invitation only)

Office: 312-725-3635

June 16-Building long lasting relationships on LinkedIn by 678 Partners & Smartketing

2010-06-29T07:39:00.000-05:00

Idea Chef and I had a great conversation with Jim Matorin about engagement and social networking last week. Part 1 discussed how 2010 is different from the previous few years where social marketing had some time to wind down across twitter, Facebook and LinkedIn. So here is our title:

The usual suspects on the interview turntable. Jim has a terrific background and is very knowledgeable. He is also a great guy. We had multiple touch points(phone and email first), before we met in person. If you are in the food marketing business, well worth knowing him.

The interview is in 2 parts. We did part 1 last week and will be doing part 2 this week. As soon as we have time to upload everything on the usual channels we will let you know. Slideshare, You Tube, Blogger, 678 Partners page as well as our Facebook page will have all the details.

Everyone is trying to re-define engagement. Its still the same engagement as it always has been. Nothing replaces the face to face meeting on "how can I help you?" and "how can you help me?". Building the 2 way relationship has always been a face to face discussion(and will always remain that way). Online connections are great and now we have more channels to share information. At the end of the day the job still has to get done. We have delight and surprise our customers and solve their problems by offering top notch solutions.

My belief has always been that speed networking does not work in the fashion that most people apply it. 40 people all show up and exchange cards. You never hear from anyone unless YOU follow up. I was at one meeting last week. I have 30 cards on my desk. It was as if I was never in that room.

Jim had the best quote. Build meaningful and powerful relationships. It still amazes me in this country that they don't teach networking in business settings.

Some great discussion points on blogging from Jim. Very few blogs these days contain interesting content. It is not only classic marketing but should be built as part of your everyday strategy.

Separate your situational connections from your sustainable ones. Situational connections don't build a strong foundation for you. Will they be there when you need them most? Will they refer business to you? Again why would you want 70,000 connections when you only work with the first 100(possibly a lot fewer than those). If the first person to 100,000 connections wins an IPOD, that's great but focusing on building a quality relationship with 10 people might generate much better returns.

This slide explains itself. Regularly sharing best practice in the form of information exchange is a great way to enhance business relationships.

Jims details so you can get more information. I am also attaching our interview (you need 40 minutes to listen to this). I would suggest your cup of coffee over the weekend when you are reading the weekend papers.

678 Partners Idea Chef and Network Sommelier Interview with Smartketing Jim Matorin on Buzz Marketing, Engagement & LinkedIn Par from Amir Homayoun Rafizadeh on Vimeo.

I also did a short You TUBE with regards to a speed networking meeting I attended(I am still shocked people have not followed up with me). I might have to start approaching some business schools to start teaching this as a full time program.

Share your feedback with me on email or if you like this information, please visit our 678 Partners Facebook page and say you like this. We would certainly appreciate your thoughts and comments.

Amir Homayoun Rafizadeh aka Network Sommelier

A strategic resource to private business owners, non-profit executives and art collectors

Have a niche business? Want to join my LinkedIn strategic resources?

Comment on our Facebook page.

Want to be interviewed? Have something to say? Then email me or check out our interview studio.

Office: 312-725-3635

Hidden tax issues that serious art collectors neglect by 678 Partners Network Sommelier

2010-06-18T08:09:00.000-05:00

The art world impacts everyone and anyone.

Museums collect and display it.

Non profits receive it from donors. Some know what to do and others have no idea on how to deal with it. Whichever camp you fall in, not knowing what to do with donated art can cost you a fortune. Hidden tax issues, complex estate decisions and never talked about asset protection topics are rarely discussed by professional advisors.

So I decided to talk to Randy Fox about this. Between Randy and I, we shared lots of stories from the real world.

Randy and I spent close to 40 minutes talking about this. Here is what we talked about.

If you get a chance this weekend grab a cup of coffee and listen to this 40 minute interview. Here it is:

678 Partners Network Sommelier art discussion with Randy Fox from Amir Homayoun Rafizadeh on Vimeo.

As always you can also find these interviews on our 678 partners interview studio web page.

Next few weeks we will be pick up a discussion on car collectors.

Want to get in touch with Randy? Please feel free to contact him with any questions that you might have. Here are his details:

What amazes me, is the fact that people spend a lifetime collecting art. That passion gets completely destroyed in a matter of hours or days. It does not seem to be an American only issue. It happens around the globe. Don't fall in that trap.

Stay tuned for our car collector discussion coming out soon.

We got a lot of interviews lined up. Have a great week. Don't forget if you like this topic feel free to check our Facebook page and drop a comment.

Amir Homayoun Rafizadeh aka Network Sommelier

A strategic resource to private business owners, non-profit executives and art collectors

Have a niche business? Want to join my LinkedIn strategic resources?

Comment on our Facebook page.

Want to be interviewed? Have something to say? Then email me or check out our interview studio.

Office: 312-725-3635

Get ready for a shaky 3rd and 4th quarter in US economy by 678 Partners Network Sommelier

2010-06-14T16:19:00.000-05:00

Government spending has come to an end.
90% of new job hires are going to census(not long term jobs).
Europe going through a lot of problems.
US GDP is weak and threatened by 1% reduction with every $1trillion of new national debt.

Let's take a quick look at the last 7 recessions and expansions.

The most recent GDP recovery is fundamentally different from previous ones.

Large institutions hedge their bets based on taxes, interest rates and global economic outlook. Why is it that most investors can not invest like institutions?

If you are 5-10 years away from retirement, start saving now as fortune 500 pension plans are underfunded. Social security future funding (2010/2020 projections) is pretty unclear, so every person is now responsible for their own retirement.

If you think the last decade was bad, take a look at the return assumptions of some of the biggest companies in the US. This next decade will undoubtedly have slow growth. This would definitely require a different mind set as far as planning is concerned.

The latest state of consumer balance sheet (assets to liabilities) needs a major makeover. Every consumer has to watch their own balance sheet let alone, business's, cities, counties, states and the entire country. We have to clean balance sheets from the bottom up. Its going to be an ugly and long process.

Post recession of 2008, we are slowly beginning to see an increase in personal savings(something that we should have done 20 years ago).

Household debt (in all shapes and forms) is heading lower (in the right direction) as consumers are trying to keep cash and pay down debt. Budgeting becomes an absolute must!

No comment on lending standards. The chart should speak for itself. Small and mid sized community banks continue to fail under a slow and long process adopted by the FDIC.

This latest trend is not talked about in the media. Hoping for improvement in Q3 and Q4. If this does not improve it will have a ripple effect in the US economy. More bankruptcies, more foreclosures, less consumer spending leading to a smaller GDP. Everyone is impacted by this measure. We need jobs and growth to boost GDP.

We have to stop printing money and address how we can reduce spending and bringing growth back. It starts by helping small business and encouraging entrepreneurship.

Between Japan and China, they own half of our debt(not a pretty picture).

Another signal to watch closely as investors seek safety and run towards yield(massive amounts of money going to bond mutual funds). Some investors are still paying the price for 2000 let alone 2008. Whats interesting is the investor behavior once you get hurt in one asset class. Every recession blamed one asset class. Started with bonds, then in 2000 it was equities and everyone went into real estate looking for cover. You remember what happened in 2008. Doing everything in one asset class is generally not a sound strategy.

What does all of this mean to you?

If you are a private business owner you should be building niches.

Separate yourself from competition. Everyone talks about public companies. Well 50% of US GDP comes from private business. When you get a chance take a listen to my 45 minute interview with Rob Slee the countries top expert in private business within our interview studio below.

Latest Status of the US Private Business Market Interview with Rob Slee by 678 Partners Network Sommelier from Amir Homayoun Rafizadeh on Vimeo.

As always, if you have questions please feel free to drop me an email here. Would be more than happy to answer any of your questions.

The entire presentation can be viewed here on my LinkedIn Slideshare.

Amir Homayoun Rafizadeh aka Network Sommelier

A strategic resource to private business owners, non-profit executives and art collectors

Have a niche business? Want to join my LinkedIn strategic resources?

Comment on our Facebook page.

Want to be interviewed? Have something to say? Then email me or check out our interview studio.

Office: 312-798-6727

678 Partners Network Sommelier interview with Rob Slee the countries lead private business expert

2010-06-08T07:32:00.000-05:00

Yesterday I had a chance to catch up with Rob Slee one of the countries lead authorities on private business.

Its June 2010 and mid way through the year. Great time to take a pulse of the private business market. So Rob and I had a 45 minute discussion about the status of the US private business market.

His Private Capital Markets book is taught all over the world when the discussion involves private finance.

He has also published "Midas Managers" and Midas Marketing" 2 books that involve case study after case study on how the global competition has changed the landscape of private business. US private business owners can only compete by becoming value architects and create multiple niches. Value creation does not come naturally to private business owners.

So here is what we talked about:

And here is the audio link to the 45 minute interview. The next 2-3 years will be a survival test for these small to mid sized business's and how they compete on a global scale. Compete or face extinction. With 50% of US GDP relying on the sales of these private business owners, we need to pay them more attention.

The Midas Nation site has many free resources including all of Robs previous webinars and recordings. Membership is free and you can sign up anytime to view previous recordings. Make sure you tune in for their next webinar in September.

And here is Robs details if you need to contact him. Email is the best method of contacting Rob.

Our contact details are included here if you need any help with accessing this recording or talking about any of the strategies that can help you move forward in this tough economic climate. Every successful business started with a strategy, implemented its strategy with clever marketing and grew its sales. In each of these stages there are different issues. Dealing with these issues requires a different perspective based on the nature of the issue. 678 Partners is here to help you create, preserve and transfer the created wealth through innovative business and marketing strategies. Let us know how we can be of help. You can also email me (the Network Sommelier) with any questions, comments or feedback here or the Idea Chef here.

Lastly, here is a short video I did yesterday about the interview.

Have a great week and look for other interviews coming out in the next few weeks on having too much real estate, qualified plans, advanced retirement planning, mistakes in art collecting and buzz marketing and much more!

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA

Network Sommelier

Connect to me on LinkedIn http://www.linkedin.com/in/wadvisor

Join us on our Facebook page: http://www.facebook.com678Partners

Office: 312-798-6727

Non-Profits should focus on donor experience to attract more funding by Network Sommelier

2010-05-24T08:09:00.000-05:00

The recession of 2008 took a heavy toll on US non profits. You hear lack of funding everywhere and also future funding cuts from several sources. As individuals suffer from an economic perspective, institutions and large public corporations sit on ample amounts of cash(check this slideshare presentation here). You also hear a lot of money being spent on events and gala's. Annual budgets of $150k and more is being spent on a dinner event where they would raise $300k or $500k. Many donors would support their favorite causes if only they were approached and asked the right way. Non-profits are always asking for more(the ask is always there) but it drives donors away(it was not very apparent during my last conversation with a planning officer).

Planned giving officers are always soliciting for more funds whether in the forms of current or future giving. I heard a story recently of a non profit receiving a painting in a black trash bag (which they later found out its worth $500k). Who would give a painting worth that much in a trash bag(and more importantly why)? That suggests a couple of things:

1) Donor felt he or she was being solicited and wanted to get rid of the solicitor.

2) Surely they have a huge art collection to be able to give away a $500k painting. Can you imagine with the right structure/education/approach how much more they could give?

Very few charities across the country actually show the donors what their money is doing and how its furthering their cause(they might be doing it with large donors but not sure how they do it with smaller donors). If they just stopped soliciting and listened to their end clients(donors/customers) and educated them on how the donated $'s is helping feed the homeless, hungry etc, they might get somewhere. Lets look at a case study to see how this might be possible.

Three concerns of a private business owner are as follows(there are many but I am listing 3 from the previous case we dealt with):

1) Maintaining current lifestyle and cash flow post retirement. With inflation discussions down the road and slow global growth retirement lifestyle becomes a critical element for someone who has worked 30 years or more.

2) Providing for the financial security of the surviving spouse usually ranks high. Women tend to outlive men. Planning at an early stage when there are multiple options is usually preferred. Planning at a later stage is much more limited based on fewer options.

3) Having liquid assets to purchase business's or assets when necessary. Most private business owners have regular cash flow difficulty when it comes to making these kinds of decisions. Most of the net worth is tied in the business and is il-liquid. Imagine the downturn in 2008. This kind of strategy makes you recession proof.

Setting up a family charity where children (and or grandchildren) can be involved in the legacy of the original owners can be one potential solution. The picture below displays a snapshot in 2011. Whether we are in a recession or not does not matter, as over time assets will still grow at a conservative level.

The family charity in 2040. Yes of course its a form of future giving and you might have to wait for the giving to occur, but its better than nothing. But lets examine one more item.

A win win situation occurs when both the family and the charity win. During 2011 (there are some big assumptions of course) the charity will receive $257k a year for 25 years. Now thats not a small chunk of change! Its the same amount raised during their annual dinner gala!

To make sure the heirs are not left out at the end of the TCLAT term, the heirs also receive payments. 25 years later the heirs receive $5.5M. Again talking about win win.

Here we take a look at the overall net worth and the entire moving parts on one page.

If we were to summarize the benefits during 2010, 2011 and 2040 it would look something like the following.

In conclusion the ask should be more about the education. How the non profit is spending the donor money and changing the donor experience. Thats how you get more funding and not by asking for more. Lets us know your comments and feedback and as always if you have any questions please feel free to send me an email.

The PowerPoint presentation is here on my Slideshare. I also recorded a You Tube here.

As always let us know how our resources can be of help.

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA

Network Sommelier

Office: 312-798-6727

A quick look at Cyclical Indicators by Network Sommelier

2010-05-21T09:09:00.000-05:00

Here are a few charts worth taking a look at:

Capital goods are moving in the right direction. Despite the pick up in capital goods orders, the steep decline during 2008 was rapid and extremely quick. If you look back at 2000 it took almost 2 years to witness the kind of decline we saw back in 2008.

How about private inventories? A very big drop.

Keep a close eye on the NFIB monthly reports (a great resource for small business) as they have a good pulse on small US business and their private inventories. Public companies have a huge advantage since they can sell abroad. Majority of US private business's do not sell abroad(which is a shame as they possess so much intellectual capital). Until US consumer start purchasing again, business's might struggle for some time.

We have to watch the long term average for home buying. With baby boomer's entering retirement, they might downsize homes (from bigger to smaller units) but not necessarily buy multiple homes. We still have a major foreclosure issue across the country and these all have to be fleshed out of the system. They might take a long time(lets hope not a decade).

Light vehicle sales have taken a large dip with GM restructuring. Ford seems to be the only one taking some market share from the Japanese Toyota and Honda. Toyota had some serious recalls but the whole point here is that, we cant buy so many cars as we have in the past. Credit is tight, lending is very tough and incomes have been flat. Another story to watch carefully and closely.

This last recession changed all of our spending patterns. We will take a close look at this every quarter. Just ask someone from the depression era to tell you what they went through.

What business resources/contacts are you looking for? Please email me and let us know.
Till next blog where we will look at advanced planning to exit a family business (for privately held business owners) have a great and productive day.

As always here is the link to the slideshare and You-TUBE video here.

Network Sommelier

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA

Bank failures continue amongst a V shaped recovery by Network Sommelier

2010-05-16T20:39:00.000-05:00

Yet another sign that this economy is not recovering at all (another reminder that I am all about growth and prosperity). With many under performing loans that have yet to surface, we will face more banking job losses until all of these loans have been addressed(and this will likely take many years).

Since the last failed bank blog I put out, 8 more banks were acquired by the FDIC in the last 2 weeks. The most recent one is a fairly large IL bank named Mid West Bank and Trust which was acquired by First Merit. According to First Merit press release here, Mid West Bank and Trust had $3.2 Billion in assets and $2.2 Billion of those were based on a loss sharing agreement with the FDIC(thats not a small number).

Another takeover involved City National Bank who assumed responsibility of 1st Pacific Bank of California operations under this press release here. Total cost to you and me (as in Tax payer money) is hard to estimate. 1st Pacific Capital and Bank had $320M in assets where $270 Million will be with a loss sharing agreement with the FDIC(ouch).

Whether you like it or not we have a many more banks to go through this process.

Unfortunately we will experience very slow growth and a lot more bank failures/bankruptcies to come. Once they are all fleshed out of the system (which again will take many years) we might have a clean slate to start with again.

I also posted a 1 minute You-TUBE video summarizing my thoughts here.

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA

Network Sommelier

Office: 312-798-6727

Too early to celebrate the jobless recovery by Network Sommelier

2010-05-12T23:31:00.000-05:00

I am all about jobs and growth but public companies hiring a few people(from the thousands they fired 2 years ago) is not heading in the right direction. Creating jobs is an absolute priority!

While everyone is tweeting about the jobless rate announced last Friday by Bloomberg, there is no reason to start partying. Lets look at a few missing items.

Selective quotes from the Bloomberg article in bold and my comments in purple as always.

“The private sector is improving and job growth is picking up,” Julia Coronado, a senior U.S. economist at BNP Paribas in New York, said before the report. “The job growth will be enough to keep us on a pretty decent growth track.” Which private sector is she talking about? The job growth number is well below the actual jobs needed to maintain a healthy recovery. By March of 2009 BNP Paribas had shed 7% of their global work force (1,120 job losses and 16,000 financial markets jobs) according to estimates from hereisthecity.com web site here. What does decent growth mean? Sounds pretty vague.

Underemployment Rate

The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- increased to 17.1 percent from 16.9 percent. The report also showed an increase in long-term unemployed Americans. The number of people unemployed for 27 weeks or more rose as a percentage of all jobless, to a record 45.9 percent. It is also not healthy to be unemployed for this long of a period. Again too early to tell if this trend is going to continue(cause if it does it will have negative consequences for the entire US economy).

The number of temporary workers increased 26,200 in April. Payrolls at temporary-help agencies often turn up before total employment because companies prefer to see a steady increase in demand before taking on permanent staff. Yes very true indeed, too early and we have to wait for several more quarters before we can accurately say "these numbers have turned in the right direction".

Government payrolls increased by 59,000 in April. State and local governments reduced employment by 6,000 during the month, and the federal government added 65,000. Jobs for Census and the federal government is heading in the wrong direction. Census hiring (April to June) does not help the long term picture for unemployment. The large numbers they hired for all Census projects will be completed and finished by June. That means they will re-enter the workforce again seeking new jobs. How is this healthy?

Here is a link to the short video I did summarizing this blog.

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA
Network Sommelier
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Leading Economics Bloggers See Improvement, According to Kauffman Foundation Survey - (NOT SO FAST) plus commentary from Network Sommelier

2010-05-06T13:27:00.000-05:00

Don't be distracted by the headline until you read the details.

Here is a blog I put out a few days ago about the so called V shaped recovery. Things seem to be fine on the surface but some very troubling aspects are happening below the surface. The highlight of the post from the Kaufman study are below:

Kauffman comments worth a discussion are in bold and mine in purple.

Research highlights include:

The bloggers expect the greatest growth over the next three years to be in interest rates, with the U.S. budget deficit expected to grow at about the same rate as global output, U.S. inflation and U.S. employment. Three-year projections also include expected increases in poverty and inequality levels in the United States and potentially a slight decline in U.S. competitiveness. This can not be good news. We need to improve employment and tackle the massive debt.

Respondents rate overall business conditions as "mostly fair, partly bad," but a majority believe conditions for small business in particular are "bad" or "very bad." At least 55% of US GDP comes from private business and also the small to mid sized business's. Again, this can not help us create jobs in the long run.

63 percent of the surveyed bloggers say the federal government is too involved in economic matters. Half favor more financial regulation, compared to 10 percent who favor increased business regulation, and 94 percent oppose higher taxes or investment. The absolute essential items that can help fuel growth and productivity are created by lowering tax's. We know we can't compete with the likes of China and India on manufacturing but we have great access to intellectual capital.

A strong majority of bloggers – 80 percent – want Congress to "create a visa for entrepreneurial immigrants." Kauffman got this right a while back. We need to bring talent, brains and money into this country(consistent with our history), not oppose it nor should we block it. We are heading in the absolute wrong direction.

The link to the original article is here.

A strategic resource to private business owners, non-profit executives and art collectorsAmir Homayoun Rafizadeh, MBA

Network Sommelier

Office: 312-798-6727

Need to create a new letter in the alphabet for this V shaped recovery by Network Sommelier

2010-05-02T21:58:00.000-05:00

According to most US economists our V shaped recovery is real and happening. What puzzles me most is the fact that more and more small and mid sized banks are closing down. I am trying to think back to my economics class during business school. Small and mid sized banks don't collapse during the start of a V shaped recovery phase. These banks should have collapsed in 2008 or even 2009 when recession was at full speed. What on earth is going on? Is that famous double dip round the corner in 2012 or possibly 2013? Let's hope not.

I made an attempt to write this blog on April 23rd when I first noticed this and I didn't get a chance to finish since I was busy with ART Chicago(by the way if you are here in Chicago, you should definitely check it out, here is the first video I did yesterday and another video I did today). Well guess what? Since 2008, 249 US banks have collapsed or been shut down by the FDIC(you are thinking so what?). The leading states, are GA at 39, IL at 35, FL at 28 and CA at 27. What becomes interesting though is the closures during the first 4 months in 2010. Across all of US, the FDIC has dealt with the following banks closures: 15 in January, 7 in February, 19 in March and 23 in April(I don't know about you, but I am noticing an up trend). With the way things are shaping up, we can make last year look like a joke. Let's stay positive and hope that is not the case.

A famous financial guru (i will keep the name anonymous) once said "Go the opposite direction when all economists are predicting a V shaped recovery". Does that mean head for the bunkers and hide? No it does not. That seems to be pretty much the theme these days. Have a game plan and work on a growth strategy.

When a small bank fails there are many bad consequences. Jobs might be lost, bigger bank gets bigger, and the ripple effect can be felt right through the economy. How are the large corporates dealing with this? Well let's take a look.

I will be looking at 4 interesting reasons why this time we are facing a different kind of recession. This presentation is titled "Deploying Corporate Cash".

"Drag on Earnings": With corporate cash return being close to 1%(or even less) and the cost of capital being around 10%, large companies are forced to use this cash in some strategic way to get better rates of return. But how long before this starts to happen?

"Corporate Cash as a % of Current Assets": Large corporations are sitting on record cash levels. When and more importantly, "how" are they going to start deploying this cash? Purchase machinery? Make strategic acquisitions? This cash has got to go somewhere.

"M&A Activity": Slow pick up in M&A activity but we need to watch this space closely. We need to maintain this increase in activity for some time.

"S&P Dividends per Share": Everyone is talking about a rising dividend per share on the S&P earnings. Has anyone thought to exclude the large financials from these numbers? They made great profits from bond trading and not by making loans(which is what they are supposed to be doing).

So where do we go from here? In a few days from now I will discussing Cyclical indicators. We need to start addressing deficit reduction and job creation now!

You can find the entire presentation on my LinkedIn slideshare here.

Send me your comments or feedback here.

"A strategic resource to private business owners, non-profit executives and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier

Office: 312-798-6727

How Will You Get Out of Your Hole? Written by Rob Slee and some commentary by Network Sommelier

2010-04-30T11:30:00.000-05:00

On April 27th, I had the countries private business guru Rob Slee for a whole day(check out the YouTube video recorded here). Six lucky business owners got to pick his brain for an hour on marketing, strategy and finance. We are going to do this again in May(Shoot me an email if interested). Each owner received a 75 page sample wealth map that highlights critical success factors, and any key performance indicators measuring success (on a monthly, quarterly and yearly basis) for value creation and serious business growth. Don't let local and international competition smoke you.

What did these owners have in common?

Currently own a Chicago based business.
Generating more than $500,000 in annual sales.
Wanted to grow their business at least by 5 or 10 times current sales/profits.
Being open to new ideas and willing to be coached and mentored.
Tired of status quo with their business being stagnant and dealing with declining sales and looking for a new growth opportunity.

If you have read this far, you should take a few seconds to read the following Midas note that was posted by Rob a few days ago:

_______________________________________________

A prior MidasNote discussed how positive deviance can be harnessed to help generate tremendous results. That Note further says that Midas Mentors – the human pools of intellectual capital and success that separate MidasNation from all other value creation initiatives – are positive deviants who can help managers dramatically increase the value of their firms. Some people think that Midas Mentors are glorified consultants. But these people are wrong (and possibly idiots as well).

Midas Mentors are not management consultants. Consultants exist to solve problems; Midas Mentors exist to create wealth. The following table shows some key differences between the two callings:

	Midas Mentor	Consultant
Business Experience	Broad	Narrow
Expertise	Strategic	Tactical
Ultimate Goal	Create Wealth	Solve a Problem
Fee Structure	Typically tied to a percentage of wealth created	Typically by the hour, not based on success

Perhaps this story will help illustrate the difference between the roles various advisors play. A business owner is walking down the street when all of a sudden, the sidewalk gives way. The owner finds himself in a hole that is 50 feet deep with no way out. As luck would have it, the owner’s CPA happens to walk by. The owner screams at the CPA to get him out. The CPA gets busy on the task at hand, and after about an hour, floats down a piece of paper to the owner. On it is a detailed explanation of the accident. Although an excellent history of the event, it does nothing to solve the problem.

Next, the owner’s consultant shows up. “Get me out of here,” the owner yells. Pleasant and helpful as always, the consultant gets to work. After two more hours, another piece of paper floats down, this one with a detailed drawing of a ladder, but no tools or materials with which to build it.

Finally, a Midas Mentor wanders by. “Are you OK?” he yells down. The owner is just starting to recount the farcical events of the past few hours when the Midas Mentor interrupts him to tell him to move to one side of the hole. Then he jumps into the hole with him. Beside himself, the owner shrieks that now they are both stuck in this awful predicament. Hearing this, the Midas Mentor puts his hand on the owner’s shoulder to reassure him. “It will be OK,” he says. “I’ve been here before.”

So who’s helping you get out of your hole?

I’m convinced that at least 95% of managers of private companies must greatly modify their behavior to become Value Architects. To leverage intellectual capital by at least 10:1, a manager needs to drastically change his/her company’s business model, strategies and tactics – and this reconceptualization begins with changing personal behavior. It goes well beyond just getting fingerprints off the business.

Once you have obtained Value Architect status, here’s how you will be spending a typical week: at most one day in the office (refereeing the “Johnny hates Sally” stuff); two days outside the office plotting growth strategies for current niches; and the remainder of your time outside the office discovering/launching new niches.

So who’s going to help you learn to become a Value Architect?

________________________________

As you can see, what worked during the last 3 decades might not work in todays global economy. New ways of strategic thinking and different behaviors are required. If you currently are not selling your company products and services abroad, how do you plan to compete in this global economy? If you don't adapt or re-think your strategy anytime soon, your business will head towards extinction. You have been warned plenty of times before. Staying in bunkers and waiting for the storm to pass might not be a wise strategy.

Watch out for my next weeks posts talking about the dark clouds. They have arrived. Buckle up as some tough times are ahead.

"A strategic resource to private business owners, non-profit executives and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier

Office: 312-798-6727

Whether its transferring ownership, business succession or small business growth, you need a strategy by wadvisor

2010-04-22T13:55:00.000-05:00

Whether you are an entrepreneur, work with other entrepreneur's, run an entrepreneurship center, or any other combination for that matter, you typically don't get many chances to validate some of your small business growth plans. How about testing a strategy on paper before committing hundreds if not thousands of $'s behind the project? What if the project is going to be a waste of your hard worked $'s? Don't you want to know this before you invest this kind of money?

Small business often dream about the opportunity to ask some of these questions without the fear of being sold some sort of product. If you are in a family business, run a small business, or even run several small businesses, thinking of family business succession or business succession planning is not something you wake up with every morning. If you do, then its time to talk seriously. If you don't know where to start, here is your once in a life time opportunity.

On Tuesday the 27th, I have the countries top private business guru offering 3 "1 hour slot's" for you to question some of your investment and growth strategies with someone who has done this many times over(and successfully). If you are Chicago based, and want to ask any question to do with business exit, business growth, expanding your private business, moving towards a niche part of your market or completely exiting your business this could be for you. 5 other lucky business owners, are taking advantage of this opportunity already. If anything you can win a book(or the equivalent audio tape) signed by the author that might change the way you think about your business.

The available time slots are as follows:

2-3pm
5-6pm
6:30-7:30pm

Location? Downtown Chicago
Requirement? You owning an existing private business generating at least $500k in annual sales
Fee? None(usually consultants charge a couple of thousand $'s to give you their time)
The slots are first come first serve.

If you decide to write back, I would like to know:
1) What you would ask and why?
2) Why is it important to you now?
3) When was the last time you thought about this?

Here is the You tube and a copy of the slides for you to take a look at.

Watch out for more updates on LinkedIn, Twitter and Facebook.

"A strategic resource to private business owners, non-profits and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier

Co-Founder of National Business Owner Advisory Council and 678 Partners LLC

Managing Director of Client Education - Kruse Asset Management
Subscribe to my BLOG

Office: 312-798-6727

Small Business Optimism Declines in March according to the NFIB Survey

2010-04-16T11:21:00.000-05:00

From my post yesterday you can see further disturbing economic trends. Today the NFIB posted the following report which goes to confirm a weak environment for small business. Job creation, job creation and more job creation should be top priority for the administration.

Here is their summary report:

WASHINGTON, April 13, 2010 – The National Federation of Independent Business Index of Small Business Optimism lost 1.2 points in March, falling to 86.8. The persistence of index readings below 90 is unprecedented in survey history.

“The March reading is very low and headed in the wrong direction,” said Bill Dunkelberg, NFIB chief economist. “Something isn’t sitting well with small business owners. Poor sales and uncertainty continue to overwhelm any other good news about the economy.”

The index has posted 18 consecutive monthly readings below 90. In March, nine of the 10 Index components fell or were unchanged from February’s not-so-great readings.

Employment

After a devastating period of employment reductions, employment change per firm hit the “zero line” in March. Since July 2008, employment per firm fell steadily each quarter, logging the largest reductions in survey history (35 years). The February reduction of just 0.1 per firm indicated a substantial slowdown in the bleeding, and the March reading of 0.0 confirms that workforce reductions have ended.

“This sets the stage for job creation – if owners become optimistic enough to think new hires can generate enough additional business to pay their way,” said Dunkelberg.

While actual job reductions may have halted, plans to create new jobs remain weak. Over the next three months, 7 percent plan to reduce employment (down one point), and 15 percent plan to create new jobs (up two points), yielding a seasonally adjusted net negative 2 percent of owners planning to create new jobs, weaker than February and still more firms planning to cut jobs than planning to add. Only nine percent (seasonally adjusted) reported unfilled job openings, down two points and historically low, showing little hope for a lower unemployment rate.

Capital Spending

The frequency of reported capital outlays over the past six months fell two points to 45 percent of all firms, one point above the 35-year record low reached most recently in December 2009. Of those making expenditures, 30 percent reported spending on new equipment (down one point from February), 16 percent acquired vehicles (down three points), and 8 percent improved or expanded facilities (down two points). Four percent acquired new buildings or land for expansion (unchanged), and 9 percent spent money for new fixtures and furniture (up one point). Plans to make capital expenditures over the next few months fell one point to 19 percent, three points above the 35-year record low.

Two percent characterized the current period as a good time to expand facilities, down two points from February. A net negative 8 percent expect business conditions to improve over the next six months, up a point from February, but 9 points below January and a very pessimistic reading.

“With all the good news about the economy and GDP growth, it is not immediately obvious why owners remain so pessimistic and unwilling to commit to new spending,” said Dunkelberg.

Sales and Inventories

The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months improved 1 point to a net negative 25 percent. Widespread price cutting continued to contribute to reports of lower nominal sales. The net percent of owners expecting real sales gains lost three points, falling to a net negative 3 percent of all owners, seasonally adjusted.

Small business owners continued to liquidate inventories and weak sales trends gave little reason to order new stock. A net negative 18 percent of all owners reported gains in inventories (more firms cut stocks than added to them, seasonally adjusted), 10 points better than December’s record reading but unchanged from February.

For all firms, a net negative 1 percent (unchanged) reported stocks too low, so it appears that stocks are considered to be roughly in balance relative to expected real sales volumes. Plans to add to inventories were unchanged at a negative 7 percent of all firms (seasonally adjusted) – still more owners planning to reduce stocks than planning new orders. Only a pick-up in sales will turn this around. Seasonally unadjusted, 13 percent plan to add to stocks while 15 percent will reduce them.

Inflation

The weak economy continued to put downward pressure on prices. Eleven percent of the owners reported raising average selling prices, but 29 percent reported average price reductions. On the cost side, 5 percent of owners cited inflation as their number one problem (e.g., costs coming in the back door of the business), so materials costs are not pressuring owners too badly.

“The Fed is right, the likelihood of inflation breaking out in the near term is low,” said Dunkelberg.

Earnings

In March, earnings trends declined with a net negative 43 percent of owners reporting positive profit trends. The persistence of this imbalance is bad news for the small business community. Profits are important for the support of capital spending. Not seasonally adjusted, 9 percent reported profits higher (down 3 points), but 58 percent reported profits falling (up three points).

“Don’t expect much spending or hiring until these trends reverse,” Dunkelberg said.

Credit

Regular NFIB borrowers (35 percent accessing capital markets at least once a quarter) continued to report difficulties in arranging credit. A net 15 percent reported loans harder to get than in their last attempt, up three points from February. However, 89 percent of the owners reported all their credit needs met or they did not want to borrow.

Historically weak plans to make capital expenditures, to add to inventory and expand operations also make it clear that many borrowers are simply on the sidelines, waiting for a good reason to make capital outlays and order inventory that requires businesses to take out the usual loans used to support these activities.

“What small businesses need most are increased sales, giving them a reason to hire and make capital expenditures and borrow to support those activities,” said Dunkelberg.

Contact: Melissa Sharp 202-314-2068 at the NFIB for any further information.

The link to the original article is here.

"A strategic resource to private business owners, non-profits and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier

Co-Founder of National Business Owner Advisory Council and 678 Partners LLC

Managing Director of Client Education - Kruse Asset Management
Subscribe to my BLOG

Office: 312-798-6727

Consumers continue the de-leveraging cycle by wadvisor

2010-04-14T09:51:00.000-05:00

More economic news just got released from the latest consumer spending patterns. The latest numbers confirm what some forward economic thinkers have been saying(actually very few are talking about this as we speak). The American consumer is cutting down on debt and also putting on hold any future spending.

A very interesting picture is emerging. The spenders of the 90's and 200 decade might no longer be buying many cars, flat panel TV's or renovating their houses. Every dollar being spent is analyzed carefully and more and more people are finally doing serious budgeting(every city, state, hospital, non-profit, business and household should have been doing this 30 years ago so about time!)

Again to emphasize, its very early stages within this economic recovery. As highlighted in a previous post here and here, we have no idea where we are heading. The engine of US job growth needs to start yesterday (not tomorrow) otherwise we are in some serious trouble. Commercial real estate foreclosures have already started and with $1.4 Trillion (NO its NOT a typo, its Trillion with "T") of debt being re-financed in the next 3-5 years, you should plan, budget and strategize on every single spending item. Look at the numbers for yourself:

5.6% seasonally adjusted annual rate of decline in consumer credit outstanding in February
$2.4 trillion: consumer credit outstanding in Febraury, a decline of $11.5 billion from previous month
$9.4 Billion: Decline in revolving debt, such as credit cards, In February, the most in 3 months
$2.1 Billion: fall in non revolving debt, such as car loans.

Put these 4 items against the banks wanting to lend more, car dealers selling cars and lots of discount offers being thrown at consumers.

Don't you think its interesting?

Stay tuned for more.

For those really analytical people here is the link for the Federal Reserve Consumer credit report.

The simplified report could be found for Barron's readers here.

"A strategic resource to private business owners, non-profits and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier also known as wadvisor

Co-Founder of National Business Owner Advisory Council and 678 Partners LLC

Managing Director of Client Education - Kruse Asset Management
Subscribe to my BLOG

Office: 312-798-6727

Revenue Generation April Newsletter out from NBOAC and 678 Partners

2010-04-09T10:26:00.000-05:00

The National Business Owner Advisory Council (NBOAC) is pleased to announce the "niche business provider" interview series. We will be interviewing some of the best minds from social media leaders, to sharing best practice in the private business owner space and addressing educational items to help you grow revenue, and manage your bottom line.

If you would like to nominate anyone, or know an exceptional author, writer and someone who has created business success, we would love to hear from you. Please send me an email.

Make sure to check out the educational webinars this month.

Here is the link to the April newsletter.

"A strategic resource to private business owners, non-profits and ART collectors"
Amir Homayoun Rafizadeh, MBA

Network Sommelier

Co-Founder of National Business Owner Advisory Council and 678 Partners LLC

Managing Director of Client Education - Kruse Asset Management
Subscribe to my BLOG

Office: 312-798-6727

When a referral makes you look good

2010-03-31T12:19:00.000-05:00

Lots of people worry about making referrals. Whether its to their existing network or any new opportunities. The main concern seems to come from the fact that the referral might make you look bad or somehow embarrass you. Most other professionals never think about the concept that if you do a great job, you would make them look good. That's why its critical to understand your strategic partners and what they do.

YOUR PRIVATE INVITATION

In the most recent March National Federation of Independent Business economic survey, a challenging environment faces small to mid sized business's. The mortgage market update from 2 days ago is not looking promising either. Despite the backdrop we continue to build, protect and transfer more wealth with families, non-profits and private business owners.

In a large case recently, the advantages of the proposed plans vs existing ones ranged from $6M in today's dollars and over the life of the plan to about $37M.

Now, that's what I can value creation. Its important to note that this is not a promise and it won't happen in every single case. The winners? The business, the family and a few non-profits. Can you imagine how many people you can hire and how many non-profits you can help?

THIS MONTH'S CASE STUDY:

April

Jared and Melissa Weaver

This month’s case study has a special relation to the March case study (Jason Weaver). Jared is actually the son of Jason Weaver and 50/50 partner in Weaver Printing. After the father’s planning was put in place the son followed up with estate planning of his own. Jared and Melissa are 43 and 45 respectively, with 3 young children.

Jared’s net worth is $6 million with about $2 million of that in the family business where he’s a 50/50 partner with his father. Jared and Melissa have lifestyle needs of $150,000 a year, and most of their surplus gets reinvested into two new companies that Jared is starting up with other partners. While Jared expects to continue the course he and his father are on with the family business, he also has these other businesses he hopes to expand. With this in mind, Jared’s main concerns revolve around asset protection, control and access to all of the income flowing out of the family business, Weaver Printing.

SIGN ME UP

I would like to personally invite you to this InKnowVision's Monthly E-Cast,

Wednesday, April 21, 2010 12:00 PM - 1:00 PM EDT.

CLICK TO REGISTER

By joining this webinar you might learn how:

To achieve your financial independence quickly
Your loved ones and heirs can have more control of the family business
Your collectibles and precious assets don't have to be sold in a down market
You can be more involved with your local non profit causes

"Helping America one business, one non-profit and one family at a time"
Amir Homayoun Rafizadeh, MBA

Co-Founder of National Business Owner Advisory Council
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