Basso On Business Has Moved To Wordpress

Basso on Business has a new and improved format! We also moved to Wordpress. plesae subscribe to us there at http://www.bassoonbusiness.wordpress.com/

The Credit Card Monsters, Are They Really?

I am sure many of you use credit cards in your personal and business life. They have been a necessary evil for many years now and have become a standard as a way of life. Well, that might change if you are one of the millions that are about to, or already have, received a happy gram from your credit card company that your rates have just been raised. Not just raised a little, but to an exorbitantly high level.

Chase, Citi and Bank of America are all jacking rates before new federal legislation hits in February of next year that will limit rate hikes and structure. Some good payers have seen rates balloon to 29% and are furious that their good records account for nothing to the lending institutions.

OK, here is the blunt business analysis. Banks are doing whatever they can to protect themselves, shore up their balance sheets and make extra cash. It does not sound so nefarious if you take an objective look at what they are attempting to do. Would you do the same thing in your business if you could and your existence depended on it? You probably would.

The real issue is how and when they chose to do it. It is pretty darn clear they are doing this at a time where people need credit the most and they are going to catch grief from everyone that has been affected by the rate hikes. So don't get caught with your proverbial pants down; be prepared and read every notice that comes from you credit card company and don't be afraid to call and complain. It may not do any good, but the public pressure could be the catalyst to make them change their tactics.

The economic climate has changed dramatically so we all need to stop dwelling on the past and get on with the way things actually are. Will the old days of free flowing credit be back? Probably not in the same fashion that the were before. It is imperative that business owners and consumers get on board with the new reality and start making decisions within the new framework.

Check out http://www.nydailynews.com/money/2009/03/16/2009-03-16_credit_card_hike_fright_banks_raising_ra.html

Don't Be Too Proud to Ask

I can certainly understand that cash flow in many businesses could be tight right now. Your clients are slow to pay if they pay you at all. In turn, you may pay your vendors slow and it all trickles down the line right to the tip you used to leave for the valet that parked your car. Traditional sources of funding are finding it challenging to lend based on their own significant problems.

There are alternatives. Community banks, especially newer ones, tend to be a bit more open to making a deal happen. This is because they don't have bad debt on their balance sheets and they have fresh cash to lend. In fact, they really need to lend it to move their efforts forward. They also want to gain momentum and market share from the big banks as they languish in all the bad press they have received lately.

Yes, you can go to a company that offers factoring (http://dictionary.bnet.com/definition/accounts+receivable+factoring.html) as a solution, but you may pay a hefty rate because of the nature of the high risk they take. Your business may not be the type that will work with this type of solution, but it is worth a simple phone call if you are in need and think it may work for you. There are reputable ones out there, don't get discouraged.

You can also reach out to colleagues; whether it be a vendor, friend or one of your suppliers. Now it may seem risky to let someone outside your inner circle know you need cash to shore up your business operations, but if you choose wisely when asking you might have the answer lurking right under your nose. Think about it....who knows you better than your clients and vendors that you have been working with successfully for years. They certainly know your trustworthiness better than a traditional lender you may not know very well. They also may have a real vested interest in your success depending on the relationship.

So don't be too proud to ask around and find the right lender for your needs. Let's face it, if you don't really have a plan for the money no amount will save you; you probably will not get the loan from anyone. I am suggesting these techniques for those folks that truly have a plan for the cash and can show how the use of the funds will turn things around. I am betting a good entrepreneur would rather make a loan to an up and running, previously profitable business than an upstart with no track record of positive cash flow.

If you need help with some sources....give me a ring or an email at rbasso@liadvanatge.com.

Good Press, Bad Press and a Little XS

I attended a grand opening of a new club venue located in Plainview, NY called XS. They caught some heat in the press for having advertisements adorned with a well endowed, barely dressed woman. Part of the uproar was that the venue is connected to an OTB outlet operated by NYS. I am guessing the state was happy to have a well respected and well known entrepreneur take over the venue to help drive traffic to the OTB, but not so happy about the risque advertising.

I have been to many venues like this and it was no more or less over the top than any club I have had the pleasure of visiting. So, was it good for the venue that there was some controversy about the way they chose to promote it? Of course it was good! They got a quarter page dedicated to them in the regions top publication, Newsday. It's not like it was a controversy over unpaid wages, poor treatment of animals or some other deplorable act....it was a picture that some people did not like.

If this was a contrived plan by their ad folks....kudos to them. It certainly garnered attention. Not every businesses can use this tactic as it would not be appropriate for a law firm to post potentially inappropriate pictures to get people interested in them. This was a night club that is supposed to promote fun and well, XS. It seems to have hit the mark.

Good press for some may be bad press for others. In this case I think it served their opening night crowd of over 1,000 pretty well. Choose your battles wisely and make sure your business is the kind that can stand the heat or even want the heat of major exposure.

Did You Lose Hours At Work: NYS Will Help Out

I was reading the paper this morning and was reminded of a little used program that NYS has to help folks that were forced to work fewer hours due to tough times at their place of work. It is a pretty simple program to apply for, but does have its restrictions and rules. Basically, if you lose 20% of your hours you may be eligible to receive 20% of the Unemployment Benefit that NYS offers.

THE PLAN REQUIREMENTS (taken from NYS Site)

Any New York employer who has five or more full-time employees and who with any predecessor has been liable for unemployment insurance purposes for at least four completed calendar quarters may apply to participate in the Shared Work Program. The employer's plan must meet the following basic requirements:

-The employees’ hours and wages must be reduced at least 20% but not more than 60%.
Only full-time employees who normally work between 35 and 40 hours per week are eligible to participate.
-The employees' fringe benefits cannot be reduced or eliminated.
-The plan cannot exceed 53 weeks.
-The employer cannot hire additional full-time or part-time employees for the work group covered by the plan.
-If the employees are covered by a collective bargaining agreement, the collective bargaining agent must approve the Shared Work plan.
-The plan must be in lieu of a layoff of an equivalent percentage of employees.


This is an alternative to a complete layoff and some employers would rather do this than let an employee go completely and have to re-hire or retrain a new person if that individual is not available when businesses picks up. I have mixed feelings about the program, but think that it certainly will build good will between an employee and employer by making the employee understand that he/she is truly cared for and is offered some consolation for the reduced hours and reduced paycheck. No government plan will take the place of a full time job and this is not to be used in situations that are not warranted. Remember....we really don't ever get something for nothing.....the businesses of NYS pay for this program.

check out the full description of the plan at

http://www.labor.state.ny.us/ui/dande/sharedwork1.shtm

East Coast Orthotics: Basso On Business

This month I visited with Vincent Beninoti of East Coast Orthotic and Prosthetics Corp. We explored how he grew a successful business from a small family business into a mini family empire.

http://liadvantage.com/BassoOnBusiness/tabid/188/Default.aspx

Over The Edge...Is It Really Though?

On October 20th I go over the edge...literally. Tom Suozzi, The Nassau County(NY) Executive, myself and about 50 other professionals are rappelling down the side of the 600 Old country Rd. Building in Garden City, NY. It's all in the name of charity and well, just great fun. This may seem extreme to some, but I don't think enough people go to extremes for the right reasons as much as they should.

I do not suspect most would want to risk life and limb for a cause, but that is not really my point. There are many other ways to help out a good organization, a neighbor or a co-worker that don't involve hurling yourself off a perfectly good building and hoping that the ropes actually hold. More people are in need of all sorts of assistance not only because of the ailing economy, but because of our government is failing to protect its citizens.

Support something. Choose something you love, something some else loves or simply get involved and see if you learn to love it. I know businesses get involved with charitable causes many times because it is simply good corporate citizenship. That's just fine, as long as they get involved and make a difference in the communities they serve. Helping your fellow citizens should never need to be viewed as going over the edge. Its just human.

Check out http://libn.com/blog/2009/10/14/suozzi-leaders-go-over-the-edge-for-charity/