Business Attitude

January 23, 2016

Governor LePage --- Make Maine Cool - - A Windham Eagle Op-Ed

Written for Published in Print Exclusively In the Windham Eagle, Windham Maine - January 22, 2016

Governor LePage was in Windham Tuesday night speaking and almost sounding like he was giving a State of the State address.

Of course I don't agree with everything he says, but then again, it would be a boring world if I did.

We heard a lot of statistics from Governor LePage; statistics that were probably very accurate, but presented in such a way to embellish the benefit or the problem. Don’t get me wrong, I embellish, you embellish, and we all embellish to defend our beliefs. What Governor LePage is, is honest - to a fault - "Tell me what you really think Governor", said by NO ONE. We will have to work on some of those issues where we disagree.

I like Governor LePage because I know He reads his mail - he proved that to me last night.

But let’s expand on what I think will solve all our problems (after all, this is an editorial). Problems that both political parties spout and I am pretty sure both parties will agree. Keep the best and the brightest here in Maine. Do this by "Making Maine Cool".

Someone needs to market to big business and bring them to Maine – That’s a great thing for small business as big business creates a lot of supporting small business. Prime the pump - seed the farm – market Maine – Get to the executives before they make their decisions - That is YOUR JOB Mr. Governor. That means marketing and selling, yes selling, to them all the time. It is in my belief that every CEO in this country will take your call and meet with you - I can’t imagine anyone not taking your call – not taking your meeting.

Our brightest are not flocking to Texas because of the better paying jobs - Just the opposite, jobs are lower paying – It is not about pay - there are just a lot of jobs. California, most notably is losing jobs to Austin - where the slogan is "Keep Austin Weird." Austin is an exciting vibrant city – It’s cool.

I heard someone say Tuesday night that “… greater Portland area Democrats are doing everything they can to turn Maine into San Francisco East …" - wouldn't it be a great thing if people, when referring to the High-Tech Bay Area were talking about CASCO BAY?

Governor LePage, listen to us - Let's Make Maine Cool

Do you want to bring business to Maine? - Make Maine Cool.

Do you want to create jobs in Maine? - Make Maine Cool.

Do you want to lower taxes in Maine? - Make Maine Cool.

Do you want to reduce crime in Maine? - Make Maine Cool.

Do you want to keep our smart people in Maine? - Make Maine Cool.

Do you want to keep our young people in Maine? - Make Maine Cool.

Do you want to make Maine Cool? - Make Maine Fun.

When we are done Making Maine Cool, we can change this saying to Keep Maine Cool. Governor LePage, are you listening?

January 13, 2016

My Three Economic Predictions for Business 2016 - 2020 - My Crystal Ball

Published in Print Exclusively In the Windham Eagle, Windham Maine - January 15, 2016

Prediction One - Business to itself will flourish and grow over the next five years going from good to great. The markets, which have been growing slowly over the last few years, will continue to grow except that they will be accelerating. For the last five years we have been in a "replacement" market. This market has become the norm for our society today. We, in general, have not been buying products because we wanted them, but because we needed them - "our old one broke down". In the next five years, business and market growth will accelerate as there is a pent up demand for the "I Wants" rather than "I Needs". This points to good times.

Prediction Two - Financial instrument marketers will become more aggressive with the offering of more aggressive products. Aggressive investment capital was stifled for several years for two reasons, the media told us of impending doom and the investment / tax rules were in flux - we like to invest where we know the rules. Today, there is still huge pent up capital "waiting on the sidelines", but looking, for a place to flow. In the next 5 years it will flow, possibly like it has never flowed in the past and probably not peaking for 20 years - yes, a twenty year boom. This points to good times.

Prediction Three - Business and life are being redefined by our dreams and desires. In the past, it has always been about security and consistency, which came with stress and vulnerability. We will see more people stepping out (even if they are forced out) taking on the world satisfying their own entrepreneurial desires and wants setting their own destinies. This will create jobs, wealth, and be a major part of our future and the economy. This points to good times.

So where are all these opportunities - examples please?

Convenience Services

Landscaping
Food Prep and Delivery
Child Care

Financial Services

More people today are at least concerned about their future

Specialty Manufacturing.

Anything that can be made and shipped inexpensively and/or regonally There are even boutique steel manufactures

Entrepreneurism will not only be the future, but the thing to be.

"A True Entrepreneur does not think they can, they just don't know why they can't" ~rel

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

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December 12, 2015

Fantasy Sports (FanDuel and Draft Kings) - Political and Vice Driven? - My Opinion (IMO)

FanDuel and Draft Kings have changed the way people watch sports as the concept of 'team" has been redefined. The business model of fantasy sports, which has come to its own in the last few years, is typical of many. It is obvious it sat under our noses for years, it generates rewards for its participants, it is attached to a human vice and it generates profits for it's business owners.

Government is now attacking the business model for many perceived noble reasons - IMO, the real reason for the uproar is that they (term used very generically) did not think of it first. Let's review some some issues where I will express my opinions.

IMO, the federal government has no business making decisions about fantasy sports - the Republican presidential debates pointed out the hypocrisy (I can't speak much to hypocrisy as I am on too many issues). These "gambling" issues should be handled at the state or even at t0he city level. Technology allows this to happen pretty easily these days. Politicians are talking because its in vogue to talk about (the press is listening) and as a whole are jealous that they did not think of it first (IMO).

It makes sense for Nevada to make it illegal because the state's industry is gambling. I trust that the Nevada legislature and the people of Nevada made that decision for themselves.

Where it does not make sense, again IMO, is a place like New York where the distribution of vice is sold on an exclusive basis by state and local governments allowing 'vicey' forms of gambling to happen (OK, maybe New York is not alone in this). Schenectady is an example of this - I am amazed by how many people talk about the recent 'industrial town casino' decision all over the country - "stupid" seems to be the common phrase in the discussion and it's a bipartisan discussion. I don't fault the democrats of Schenectady - whoever was in office would have taken credit. This decision has already cost local jobs (GE's Alstom Power acquisition - you gotta read between the lines a bit so I will call this 'my opinion'). Oops, this is a different discussion - sorry.

Oh yea, Fan Duel is illegal to play within New York State borders.

In my opinion, the fantasy sports companies should self regulate. This could be done easily by "limiting the gamble" - no games over $10 and limit the total wagering to $50 a week - there are only two big players in the business. This would not be a big issue to the fantasy sports companies as their money is made at the $10 and under games. It would also take away to the perceived competition to state controlled gambling. Regretfully I don't influence the morals, or dictate policy or law, to either of these companies.

Am I a Democrat or Republican? Your opinion will probably be based on whether you agree with me (I am in your political party) or disagree with me (I am one of them). In either case, I have 4 games going tomorrow and am fully in $5.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

November 6, 2015

Firsts - The Obstacles When Starting a Business Venture - It's Just Like the Rest of Life

Published in Print Exclusively In the Windham Eagle, Windham Maine - January 22, 2016

Starting a business and becoming an entrepreneur (for the first time) is not about taking one step at a time, it's about getting beyond the firsts - maybe many first or even a series of first (purposly left singular). The advice here is when you encounter a first, don't consider the task, consider it as a first - you have done 100s of firsts before.

First Anything - Just Do It

Think about what scares us in life - it's not the doing of something over and over, it's about doing those things for the first time. But those firsts are more than scary, they also become our most revered and treasured memories. Think about it - Here are some examples of our firsts.

First Day of School - Elementary, JHS, HS, College
First Date, first Dance, first Girlfriend/Boyfriend, first Kiss, first Time
First Love, first Child

First Job, first Sales Call, first Rejection, first Sale

(Celebration of the first $Dollar$ pinned or framed on the wall)

First Business, first Hire, first Office

What's common here? It's the word first. When we are afraid or scared, it's because it's your first time. It is not about being insurmountable or impossible - it's just that we have never done it ir been there before.

Remember, your first time at anything has an unknown element to it - the unknowns, by their very nature, at a minimum, cause us hesitation - at the most, cause us fear.

Any venture, any opportunity, any challenge, and much of life is about doing, and getting beyond, your firsts.

We celebrate firsts. We reminisce of firsts.

"When was the last time you did something for the first time". ~ John C. Maxwell

"What makes the Biggest Difference in ones chance of success - Doing It" ~rel

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 29, 2015

A Tale of Two Cities - "It was the best of times, it was the worst of times..." Maybe it is Today

Updated Writing: Back in 1982, I was working for NCR in Dayton, Ohio and doing my grad work at the University of Dayton. My instructor was a financial VP at NCR which made the course immediately at tad easier for me. Early in the semester, this instructor took a liking to me. It was probably our third or fourth class when he became somewhat philosophical, and even emotional, about a topic - he discussed the misuse of economic power. He did not discuss this from a technical viewpoint, but from social endgame viewpoint (remember, this was the early 80s - late baby boomers were flourishing - being a Yuppie was the in thing - it was the Reagan years - Round One). After class, he asked me to come to his office. There was something he wanted me to have. He handed me his marked up old copy of A Tale of Two Cities and said, "Bob, make sure you read this". It was about two years later, after reading it – that I put the puzzle pieces together.

A Tale of Two Cities continued popularity is more about history repeating itself (IMO) than any economic theory or situation. Not enough people read, especially our youth, which is why we are destined to repeat our history again and again.

Below Originally Published September 2012

Original Writing modified and expanded: I very rarely express a political opinions, but I believe our politicians are tying our hands behind our backs and then holding us responsible for scratching our bellies and fining us if we don't... I fear that in our lifetimes we will experience not only what we saw in Greece, but as an extreme, what we saw in Egypt (Note: Originally written in September 2012). It will not be the fault of one group, class, corporation, or party, but what we, as a people, ignorantly chose and even voted for. Thus it’s what we wanted.

Someone will, in their documentation of history, say: "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way - in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." ¹

From Wikipedia

In spite of what we learn, how smart we are, and the wisdom we have - history continues to repeat itself - Read about, (or even READ) A Tale of Two Cities.

¹ Wikisource: A Tale of Two Cities/Book the First/Chapter I

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 20, 2015

How to Calculate your "Cost of Customer Acquisition" - The Most Common Question

Since writing a few articles about "Cost of Customer Acquisition" I have been asked several questions about it; the most common being, "How do I calculate my own Cost of Customer Acquisition?" Lets try to answer this.

First, there are both many different scenarios and many ways to calculate Cost of Customer Acquisition.

The simplest of the scenarios is the Commissioned Salesperson. Take all the out-of-pocket (OOP) costs you have in a year (or any other time period) and add it to the amount you want to make - your desired income. Then divide it by your new customers (or projected new customers); the result being your cost of customer acquisition.

Example: I want to make $95K/yr and I have $5K in miscellaneous OOP expenses totaling $100K in expenses (your income is an expense to the business even if it is just you). Take that total and divide it by your new customers - let's say 100 new customers - cost of customer acquisition - $1000. Two factors I did not consider here are 'cost of customer maintenance' and 'diminishing returns' as both come more into play when you transition from sales person to small business.

A second example would be of a small business large enough to have a few sales people. In this scenario, the owner will want to consider more of the costs as their will actually be more costs. Consider everything, from the cost or marketing, advertising, signage on the office, promotional pieces and lets not forget the base salaries, commissions and the costs of having salespeople employed as well. All these things, and potentially more, can be included in the cost side of Cost of Customer Acquisition. In reality, it's all up to the 'measurer' and his or her metrics and/or analytic desires. I have never seen two companies measure it the same way, but I have also never seen a company inconsistent in the way it measured this metric - this is good.

So no matter what size company - know this metric, and measure it in any way you want.

The objective in using this metric is to, over time, reduce the Cost of Customer Acquisition. This is accomplished, by either reducing costs or increasing the number of customers - if you know what I write about, you know where I lean. Marketing efforts, sales pushes and product mix changes will also affect this metric.

A few final notes:

Diminishing returns are important to at least think about, especially if this number is going into a business plan.
High margin / big ticket items have different metrics as does service businesses that may get clients who come back forever,
Cost of Customer Acquisition is much different than Cost of Lead Acquisition / Generation.

I believe it is one of the best metrics for any growing business.

Cost of Customer Acquisition

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)

September 4, 2015

McPrint vs Local - Its no different than Big Box vs Local (Oldie but Goodie - Reposted)

This article was written back in January 2013. I chuckle every time I read this.
This is why you need to find and use your local printers and designers - The are the experts in your home town.

Buy Local and Preserve the Expertise

So this morning I went on continuing my research on "Local" and, in particular, "NetBetter" printing. I walked into Staples just to get up-to-date info on the McPrint business (Understanding the Changing Print Market). I have difficulty sounding anything but sarcastic in this article, but it's the epitome of Big Box and McPrint. Here is how my conversation went this morning (with some injected commentary).

Me: "Hi, I'd like to get some pricing on some business cards".
Staples: "Sure, we have several different types. You can order them online.
Me: "Wow".
Staples: "If you need them now, order the "Instant" cards, we do them here".
Me: "What size are these, I don't like the undersized business cards like from Vista".
Staples: "Our cards are all standard 2" x 3"."
Me: "You mean 2" x 3.5"." (thinking she just mis-spoke).
Staples: "No, our cards are standard size, 2" x 3" (at this point she looks at me and sighs (like saying, 'you see which side of the counter I am on')).
Me: "No, standard business cards are 2" x 3.5"."
Staples: "No they are not". (the 'your stupid' look continues).
Me: "Go grab one, let's measure it - I just want to make sure they are not undersized like Vista cards".
Staples: As she walks away with a frustrated look, grabs a card and measures - "Oops, we are both wrong, they are 2" x 3.25"." She tosses the card on the counter next to a sample I brought in.
Me: "That's 2" x 3.5"."
Staples: With frustration she remeasures and then humbly states: "Oh yea, these ones are 3.5" wide".
Me: "OK - I'll check the pricing online".
Staples: "Order the 'Instant ones' if you want them produced here".
Me: "Bye"

My morning - I must remind myself that this is McDonald's and not Morton's: "NetBetter" all !.

Bob Leonard
561-371-4113 (Call My Cell)
512-593-8830 (in Austin)