| HeraldNet - Snohomish County's online news source |
 FRIDAY, DECEMBER 4, 2009 11:38 pm |
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 eBay and Amazon can't pay your bills Is it really possible to make a living selling on Amazon or eBay? When the online retail hubs emerged, we sure thought so. But now they're packed with distributors, and some small business owners are getting lost in the crowd. 
Here's a nail for the coffin. The New York Times quotes Dennis Ceru, an entrepreneurship professor at Babson College, as having this to say about doing business through the sites. “Merely being listed on eBay or Amazon isn't a sustainable business," said Ceru. "There are a lot of people going down this path that are making little or no money.” But there are some tips for those seeking to increase exposure through the sites. Have you had any luck with business using a mass business platform for distribution? Let us know. ... [Read More] E-mail | Print | Comment Congress zeros in on small business Democratic congressional aides told the Wall Street Journal that Democrats are moving forward with a $170 billion package to spur jobs growth and emergency unemployment assistance. And small business plays a big part in that plan, reports say. 
There are a number of plans taking shape in Washington D.C. right now. Two bills are being constructed, with President Barack Obama unveiling his own plan this Tuesday -- stemming from his jobs summit this week. That bill could overlap with Congress's, but the two won't be identical, the Wall Street Journal reports. The House Democrats will likely unveil their big plan Dec. 14. Obama delivered closing remarks at the jobs summit yesterday, saying the credit market is one factor paralyzing the job market. "All the reports that we're getting is that if you are a big corporation right now, the credit markets are working for you. If you are a small business, and in some cases a medium-size business, even if you are profitable, that you're still seeing credit frozen," he said. "And we are going to have to unlock that and that's going to require an interface between what we're doing on the recovery side and what we're doing on financial regulation and our banking policies." Republican leaders have found fault with the president's summit, calling it a distraction. Here's a CBS story that outlines that perspective. "Yesterday, President Obama hosted a 'jobs summit' at the White House in an attempt to convince the media and the American public that his administration is concerned with unemployment," said Republican National Committee chair Michael Steele. "Unfortunately this so-called 'jobs summit' was not about creating jobs. It was about creating a distraction to hide the fact that President Obama has managed to create more bureaucracy in Washington than jobs for American families." ... [Read More] E-mail | Print | Comment
Video: Obama on job creation Here's an Associated Press video of President Obama's remarks at the jobs summit in Washington D.C. today. He told those in attendance that he's open to any ideas on how to help the economy rebound through job creation, and defended his stance on small-business policy. Stay tuned for other updates as the summit progresses. ... [Read More] E-mail | Print | Comment Disaster assistance available for small businesses Low-interest disaster loans are available to small businesses in 18 Washington-state counties, federal Small Business Administration officials said Thursday. Non-farm businesses in Snohomish County are among those eligible to apply for working capital loans to offset economic losses stemming from agricultural disasters. That news could finally mean relief for some businesses that were hit hard earlier this year. 
Herald file photo “SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” said Alfred Judd, director of the SBA's western Disaster Field Operations Center. Small, non-farm businesses, small agricultural cooperatives and most private, non-profit organizations of any size may qualify for loans of up to $2 million, according to an SBA statement. The loans would help businesses meet financial obligations and operating expenses that could have otherwise been met. Read more about the program here. Learn how to apply here. The following Washington counties are eligible: Adams, Benton, Chelan, Douglas, Franklin, Ferry, Grant, King, Kittitas, Lincoln, Okanogan, Skagit, Snohomish, Spokane, Stevens, Whatcom, Whitman and Yakima. ... [Read More] E-mail | Print | Comment Obama jobs summit kicks off 
Creative Commons, Wikimedia The president's jobs summit is starting today in Washington D.C., with CEOs, small-business owners, labor leaders and nonprofit representatives in attendance. "True economic recovery is only going to come from the private sector," Obama said earlier today. Read more here. ... [Read More] E-mail | Print | Comment
Small business lost 68,000 jobs in November The ADP National Employment Report came out today, telling us private-sector employment shrunk by 169,000 jobs last month. That total includes about 68,000 jobs from businesses with fewer than 50 employees. Read the details here.[Read More] E-mail | Print | Comment Coupon clipping is back Good news, scissor fans. Coupon clipping is back in style. That's what my colleague Michelle Dunlop reported in a story posted online today. She writes that the trend is mostly due to retailers responding to consumer demand for better deals. But we're not just talking about the kind of coupons that fall out of your newspaper every Sunday morning -- the ones that are slick and shiny and fit nicely in your wallet. 
You're just as likely to come across a coupon on your iPhone, via Twitter or on a favorite store's Web site. The coupon craze seems to have found a way into shoppers' hearts this year. Michelle writes that a holiday shopping survey conducted by consulting firm Deloitte revealed that 44 percent of respondents plan to use a coupon from an online source. And about 40 percent of shoppers who participated in a National Retail Federation survey earlier this year said coupons would influence where they shop. Read more here. ... [Read More] E-mail | Print | Comment Anxiety - not uncertainty - choking holiday sales Here's the latest from the Associated Press on holiday retail sales: Electronics sellers and online merchants thrived in November, particularly the start of the holiday shopping season, but clothing and luxury merchants struggled, according to estimates released today. Those results, combined with a trimmed sales prediction for retailers' official November results, raise worries that some sectors could face tough going in the critical countdown to Christmas as they grapple with frugal Americans contending with job insecurity and tight credit. 
“Last year, it was uncertainty that was driving the cautiousness,” said Mary Delk, director of Deloitte Consulting. This year, it's “anxiety about their (own) personal finances” that's making shoppers more frugal. Fat discounts drove shoppers to stores and online this past weekend, and Delk thinks it's likely they won't come back until the season's final hours when the bargains are even better. The International Council of Shopping Centers trimmed its November sales growth forecast on Tuesday, citing more shoppers who are saying they're putting off holiday shopping compared with a year ago. ... [Read More] E-mail | Print | Comment Washington 5th in small-biz climate rankings Here's something for Washington to celebrate. Some think small businesses have a better chance of surviving here than in 45 other states. These days, that's about as positive as business-climate news gets. The Small Business and Entrepreneurship Council released its annual rankings of states' public policy climates for small business and entrepreneurship this week. The "small business survival index" surveys taxes, regulatory costs, government spending, property rights, health care and energy costs to evaluate which states are entrepreneur friendly. 
Green translates to a good climate for small businesses on this map. (Courtesy of the Small Business and Entrepreneurship Council.) Bottom line? It all comes down to pro-business policy, according to the study's author. “Policy matters. Most politicians talk a good game when it comes to small business, but their actions don't often match their rhetoric," said Raymond Keating, chief economist for the council . "The ‘small business survival index' gets at the public policy costs and trends that affect – directly or indirectly – entrepreneurship and small businesses. These measures should matter to everyone because small businesses, of course, drive innovation, economic growth and job creation. If we want to get our economy back on a solid, robust growth track, then we need pro-entrepreneur policies at the federal, state and local levels.” Find out more about the council's take on policy here. The rankings put South Dakota first, followed by Nevada, Texas, Wyoming and Washington. The listed ended with New York, California, New Jersey and Washington D.C. ... [Read More] E-mail | Print | Comment
What's your plan for holiday bonuses? 
Hey, Everett-area business owners. What's you plan for holiday bonuses this year? Money doesn't grow on Christmas trees, especially not in the midst of recession. But then again, neither does employee morale. I'm interested in hearing about your plans -- or your conundrum if you don't yet have a plan. Contact me here and let me know what you're thinking. ... [Read More] E-mail | Print | Comment Verizon landline sale moving forward The pending sale of Verizon Communications Inc.'s landlines in the Northwest is clearing political hurdles in Washington state, despite concerns that the purchasing company might be taking on more than it can handle. Connecticut-based Frontier Communications bought 4.8 million phone lines from Verizon earlier this year, but the sale won't be final until it's approved by state and federal regulators. 
The deal includes an exchange of about 518,000 landline customers in Snohomish County and other parts of northwest Washington. The deal met with favor from Snohomish County business leaders, who said Frontier seems to understand what local business people need. And so far, the plan also seems to be meeting with favor from the leaders of cities affected by the change. The Everett City Council voted to approve the transfer Thursday — the latest in a string of affirmative votes from cities including Bothell, Edmonds, Mountlake Terrace and Mukilteo. Frontier is trying to grow its rural service area. But it has a lot to prove — mainly that it can handle sudden growth that would triple the company's size. Some don't think the company is up for it. Read more about that in this story. ... [Read More] E-mail | Print | Comment Comcast launches wireless data service Comcast launched a high-speed wireless data service in Seattle today, part of the company's nationwide unveiling of the Comcast High-Speed 2go product. It's a fourth-generation ( 4G) wireless high-speed data service that provides Internet service via wireless data cards. The company plans to sell the service bundled with its Internet, phone and television products. “We think having the nation's first and only 4G service bundled with some of the nation's fastest Internet speeds will be a very compelling package for our Puget Sound area customers,” said Tom Pierce, a spokesman for Comcast's Washington region. For a full statement from Comcast, read past the jump. ... [Read More] E-mail | Print | Comment Lynnwood stores caught in tobacco sting Don't sell cigarettes to minors -- just don't. If your customer looks younger than 45, you'd better ask for identification. That's what five stores in Lynnwood learned the hard way after a police sting that involved three undercover agents between 15 and 17 years old. 
Creative Commons, Wikimedia The sting targeted 51 stores in Lynnwood, according to a release from the Lynnwood Police Department. The five that sold tobacco to the underage agents (who were instructed to show their actual ID cards) translates to a failure rate above 10 percent. "Three of the five stores also asked for and looked at their real ID cards showing the agents to be (underage) and still sold to the agents," according to a police statement. "Two of those three establishments were repeat offenders from a previous liquor sting... in March 2009." The infraction can cost a business up to $1,000, according to the police statement. ... [Read More] E-mail | Print | Comment
State training program turns layoffs into small businesses After a layoff and a fruitless job search, this sight might start looking pretty good. 
That's what the state's Self-Employment Assistance Program is all about. The program takes laid-off workers and turns them into small business owners -- and future employers. It's part of an economic stimulus plan approved by the Legislature in 2007. Eligible applicants can enroll in businesses classes while collecting unemployment. "While participating in the Self-Employment Assistance Program, you can create a job in an occupation that interests you and stimulate the local economy," the official description reads. "Each new business can provide employment for you and for job seekers you hire." Interested? There's a list of questions and answers here, and information about the application process here. ... [Read More] E-mail | Print | Comment Small businesses paying more for online advertising A report from WebVisible shows small business owners are spending more in hopes of being discovered through online search engines. In the third quarter of this year, small and medium-sized businesses were spending 93 percent more on search advertising -- and spending was up 91 percent for the while year. Businesses included in the survey spent an average of $1,658 on search advertising. 
Read more about the report here. Google lost some spending ground -- about 5 percentage points, the report stated. Microsoft's Bing closed in by about 3 percentage points, and brought small businesses the highest click-through rates of any search engine. Google was next in line with click-through rates, and Yahoo came in third. ... [Read More] E-mail | Print | Comment Online retailers serve up deals Here's the AP's latest on what's happening with “Cyber Monday," Black Friday's online counterpart: Retail Web sites kept amping up the deals Monday, the first day after the Thanksgiving holiday, to try to maintain the long weekend's strong online sales. Though the Web is only about 10 percent of the holiday shopping pie, it's seen most of the growth so far this year — an encouraging sign after last year's first online sales decline. Coremetrics, a web analytics company in San Mateo, Calif., said that as of 1 p.m. Monday, sales for the day that the industry still pitches as “Cyber Monday” were up 19.6 percent over a year ago. The bright spot offers hope after traditional retail sales came in just above flat for Black Friday, with shoppers packing stores but sticking to their lists, going for deep discounts and practical items. 
Investors rewarded online-only sellers Monday above their traditional brethren. Amazon.com shares rose $2.81, or 2.1 percent, to $134.55 on a day when stocks of most land-based retailers fell as Wall Street analyzed the sea of data and anecdotal reports from the weekend. Marshall Cohen, chief industry analyst at market research firm NPD Group, said this year saw the “graying of Black Friday,” because deals that typically occurred only on the Friday after Thanksgiving have been spread out over two weeks. “The holiday spread itself out,” he said. “On Thanksgiving Day, there's a new tradition, shopping online before you stuff the turkey, putting the turkey in oven and going out shopping.” -Associated Press ... [Read More] E-mail | Print | Comment Gluten-free shopping in Everett Grocery shopping can be a reading-glasses-required event for people suffering from celiac disease. And if the labels don't read right, it can end in expensive special orders — or a cart full of fruits and vegetables. But Janell Farnsworth thinks she found a way to make the grocery store experience easier for people with gluten intolerance. She opened Janell's Gluten Free Market last week. The market lives in a small but welcoming storefront next to an insurance office on Evergreen Way in Everett. 
Janell Farnsworth (Michael O'Leary / The Herald) We have a story about Janell in today's paper. Celiac disease, caused by a reaction to gluten in wheat and other grains, renders some people such as Janell unable to absorb nutrients in many kinds of food. “I don't bake, I don't cook,” Farnsworth said. “Coming up with a regular recipe was hard enough for me, let alone a gluten-free recipe.” Hence the storefront on Everegreen Way. Pita chips, candy, brownie mix and even bread fill the shelves. And every single package contains a gluten-free product. Janell paid for her new business with money she'd saved from serving in the National Gard. She started drafting a business plan for the market earlier this year. It opened last Tuesday, amidst a flurry of deliveries, phone calls and drop-in browsers. A few days before the store opened, a man came to the door. Farnsworth recalled that he just stopped to chat for a while about his own struggle with celiac disease — and then he said something that struck her as poetic. ... [Read More] E-mail | Print | Comment
Will holiday shopping deliver? I started last night. I got two people checked off my list around 11:30 p.m. All it took was my credit card and an online retailer I won't name on the off-chance my friends aren't lying when they say they read this blog. My point is, the shopping season is upon us. 
They call it Black Friday because it's the day retailers traditionally move from the red into the black -- meaning the day they turn a profit. I call it Black Friday because that's how my soul feels after looking for parking at the mall. There's a lot of pressure on this holiday season. In many ways, the economy is counting on a December boost to help along a somewhat lackluster recovery. Despite the hype, Black Friday hasn't always played a huge role in driving the economy. This year, it might. Ellen Davis, spokeswoman at the National Retail Federation, told the Associated Press that the Saturday before Christmas had traditionally been the biggest sales day. But that day took a back seat in recent years as the tough economy made shoppers focus on pre-dawn early specials. "In a recession, there's a greater response to the big deals," she told an AP reporter. But a strong Black Friday doesn't necessarily mean a strong holiday shopping season. Last year, the weekend after Thanksgiving posted decent sales given the state of the economy -- down about one percent. But consumer spending continued to drop off in December. This year is anyone's guess. But those who get paid to guess are saying the signs aren't looking too positive. ... [Read More] E-mail | Print | Comment How businesses are beating swine flu Businesses are trying to beat swine flu -- the posters hanging around offices advocating for washing your hands and staying home when sick are evidence of that. Handshakes are out. (Might I suggest a friendly elbow bump when meeting someone new?) 
Creative Commons from Wikimedia Commons The Associated Press compiled a list of strategies employers are using to limit the spread of swine flu in their workforce. They don't mention the elbow bump, but there are some other good ideas.
E-mail | Print | Comment Tourism targets Olympic-weary Vancouver residents Thousands of Vancouver-area residents will seek solace away from the Olympic games this February. And the Puget Sound tourism industry wants those Olympics-weary escapees to head south for a few weeks in February. The Snohomish County Tourism Bureau is encouraging local hotels and resorts to offer special Olympics packages for the duration of the Games. The Tulalip Resort Casino has a gold package that includes deluxe accommodations for the entire span of the Games for $2,010. 
The lobby of the Tulalip Resort Hotel. (Herald file photo) “The traffic is going to be rather halting throughout the Vancouver market once the games begin,” said Amy Spain, director of the Snohomish County Tourism Bureau. “Streets will be closed down, other streets will be open only to public transportation.” Travel agents in Vancouver have reported a 30 percent jump in tips booked for February, according to Canadian travel associations. And Craigslist.com is packed with listings from Vancouver-area residents looking to rent out their homes for 17-day duration of the Games. Prices for home rentals climb as high as $20,000 on the site. ... [Read More] E-mail | Print | Comment
American Express launches small business stream on Twitter Is your small business on Twitter? If so, you might want to know that American Express unveiled Pulse today, a community for small businesses on Twitter. Pulse is part of the American Express Open Forum site. It displays public tweets from small business owners in a live stream that can be sorted by industries. 
The forum allows users to prioritize links getting passed around, and features its own self-contained trending topics. Here's the official description from the site's "about" page: "OPEN Forum Pulse is a tool that helps you find and follow small businesses on Twitter by aggregating and organizing their tweets in one place. This custom platform was designed for small business owners to search and learn from insightful, business-related tweets and share ideas with others." ... [Read More] E-mail | Print | Comment Top entrepreneurial motivator: autonomy I'm always interested in hearing what entrepreneurs have to say about their motivation. Sometimes it's the desire to take control of their own lives -- sometimes it comes down to cash. But I've never seen the data laid out quite like this. In a Small Business Association report, Paul Reynolds and Rich Curtin show how men and women classify their motivation for starting businesses. Using an index of emphasis scale of 1-4.5, here's what they said. Read the full report here. ... [Read More] E-mail | Print | Comment Government to mandate paid sick leave? Federal and state lawmakers are hashing out a controversial plan: Mandating that businesses offer employees paid sick leave. It's a timely proposal, given the swine flu scare that's swept the world this year. But some companies say the mandate would do more damage than good. 
The most prominent sick-leave battle is being fought in New Hampshire, where the statehouse is considering a law mandating that even part-time employees get to take paid time off when sick. The idea has some company heads bothered. One Concord business owner told the Associated Press he'll consider paying workers less if the legislation passes. But this debate isn't just playing out at a state level. Congress is mulling over similar stipulations. Rep. George Miller, D-Calif., introduced legislation that would guarantee employees up to five days of paid sick leave if they have a contagious sickness -- such as the swine flu virus. "Sick workers advised to stay home by their employers shouldn't have to choose between their livelihood, and their co-workers' or customers' health," Miller told a reporter with American City Business Journals. "This will not only protect employees, but it will save employers money by ensuring that sick employees don't spread infection to co-workers and customers, and will relieve the financial burden on our health system swamped by those suffering from H1N1." ... [Read More] E-mail | Print | Comment
NPR: Taking care of workers during layoffs NPR has a good story on one North Carolina company that's taking care of workers -- even as they're being laid off. This report details how one company is using "attached unemployment," where the business files weekly unemployment claims for laid-off workers. Read a full story here. "I spend more time with these people than I do with my husband on many given days," Katie Tyler, founder and president of Tyler 2 Construction in Charlotte, told an NPR reporter. "So it's a different relationship. It's a different commitment." ... [Read More] E-mail | Print | Comment Schillios no longer living on her roof After nearly four months — and $100,000 raised for her foundation — Carol Schillios came down from the rooftop of her Edmonds store. I've been following Schillios' attempt to raise money for the Fabric of Life Foundation for nearly four months, and she's taught me a few things -- especially about what it means to be cold. Cold happens when the wind comes whipping off the water and over the rooftops at 2 a.m. Cold happens when your duct-tape-fortified tent leaks and you spend the night dodging icy drips of rain while you sleep. Cold was a big part of Schillios' life for the last few months. 
Carol Schillios packs up her belongings last week. Heidi Hoffman / The Herald The founder of the Edmonds-based Fabric of Life Foundation took up residence on the rooftop of her Main Street store in late July. Her idea was simple: She would move back to her house after 1 million people donated a dollar to the foundation and pledged to do one good deed to help humanity. “I don't think I was fully prepared for what the whole experience was going to be like,” Schillios said last week. “I sometimes like to go into things without a preconceived notion, and then it helps you grow.” ... [Read More] E-mail | Print | Comment
'Dorm room' entrepreneur wins global competition 
Milun Tesovic in a courtesy photo. Milun Tesovic is just 24 years old. He's one of those guys who make you feel like you should be accomplishing more with your life. The British Columbia student at Simon Fraser University trumped 32 competitors at the Global Student Entrepreneur Awards in Kansas City yesterday. Tesovic is the founder of MetroLyrics.com, a popular music site that provides song lyrics. I just visited the site, and was thrilled to learn the lyrics to Lady GaGa's hit "Bad Romance" actually consist of these sounds: "Rah-rah-ah-ah-ah-ah! Roma-roma-mamaa! Ga-ga-ooh-la-la!" (That's the most requested set of lyrics on the site. I can sort of understand why.) Tesovic skyrocketed to entrepreneurial fame because he recognized a need and found a way to fill it, according to a statement from the competition. He discovered song lyrics were some of the most searched items online, but that consumers' needs weren't often met. MetroLyrics.com reaches more than 35 million unique monthly visitors, and is ranked as the fifth largest music site in the world. And it sure doesn't hurt that the site is the exclusive lyrics partner for AOL Music, Billboard and MTV. ... [Read More] E-mail | Print | Comment Edmonds-based Forward Mobility wins $50,000 grant Edmonds-based Forward Mobility is starting production on its latest mobility device after winning a national entrepreneurship competition last week. The freedom leg, a prosthetic-style device that allows someone with a leg injury to walk without using their arms, should be on the market soon, said Forward Mobility President Joel Smith. Smith and his wife, Patty Steele-Smith, started Forward Mobility a year ago. The three-person company won $50,000 in development grants last week from Alibaba.com, an online business-to-business sales platform. View an ABC segment on the competition here. Th win means Forward Mobility is moving to production with the freedom leg, its third product released this year. “I'm hoping we'll receive the first products, with a little luck, within the next 60 days,” Smith said. You can see a demonstration of the freedom leg here, from earlier in the competition. Publicity surrounding the competition brought a storm of interest in Smith's mobility inventions. In the last month, Forward Mobility received a deluge of requests from companies in 20 countries about distributing the freedom leg after production. The freedom leg is the result of several earlier prototypes, which Smith started working on when his wife suffered a knee injury earlier this year. “You have to have unbelievable persistence,” he said. “What you have to understand is, whether it's a product or a service, the first time you do it, it's not going to be good enough. You have to do it over and over.” Read an earlier story I wrote about Forward Mobility here. ... [Read More] E-mail | Print | Comment
Frontier Bank opens SBA loan center 
Frontier executives ring the NASDAQ opening bell in 2008. (NASDAQ courtesy photo.) Frontier Bank is now home to a Small Business Administration loan department, located at the bank's administrative headquarters in Everett. The department will make 7(a) loans to eligible business and professional firms throughout Frontier Bank's 50-branch network, according to a statement from the bank. "7(a) loans are the most basic and most commonly used type of SBA-guaranteed loans," according to the statement. "They are also the most flexible, since financing can be obtained for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions)." The department is the latest step in Frontier's mission to move away from real estate loans, which sent the bank's stock plummeting in the last year. After censure from the federal government, Frontier executives announced that they would take steps to diversify the bank's loan portfolio -- partly through investment in small companies. ... [Read More] E-mail | Print | Comment
Coffee stand owner: 'Silly girls ... bikinis are for the beach.' Don't go to Dolce Vita in Bothell expecting to see baristas in bikinis. That coffee stand is taking a stand as "family friendly," according to an article in the Bothell Reporter. And given all the buzz about so-called bikini baristas lately, that's a stance worth taking, owner Amber Streitler told the Reporter. The sign outside her espresso stand labels it “family friendly.” It goes on to say: “Silly girls ... bikinis are for the beach." Streitler isn't so keen on stands that use sex to sell. “What don't I like about it? Where do I start?” she told the Reporter. “You take away the coffee stand and it's kind of like a (prostitute) standing on the side of the road.” Read more here. Coffee huts featuring bikini-clad baristas is a hot-button topic-- remember this place? 
Grab-n-Go Espresso, Mark Mulligan / The Herald Baristas at Grab-n-Go Espresso in Everett were charged in September with multiple counts of prostitution after a two-month undercover investigation by police. Another Grab-n-Go stand shut down earlier this month after inspectors found seven health code violations. ... [Read More] E-mail | Print | Comment Some small firms cutting health insurance 
High health insurance costs have some small businesses cutting coverage altogether, the Associated Press reports. Here's the AP story, along with facts about the state of health insurance at the nation's small firms: Faced with high health insurance costs, a North Carolina brokerage passed the buck on to its employees, a Texas public relations firm switched from group insurance to stipends, and a Missouri travel agency let its workers walk away instead paying for insurance. Across the country, businesses already strapped by the economy to turn a profit are sacrificing or scaling back employee health insurance plans because of their escalating costs. The crunch has particularly socked smaller employers, who have become a centerpiece in the debate over how to overhaul the nation's health care system. In recent weeks, small business owners have pleaded their case to the White House and Congress. Top Democrats in both the House and Senate have announced probes into how health insurers price their policies for small businesses. And lawmakers have proposed a variety of insurance rating changes, mandates and tax breaks to try to control costs. That comes against a backdrop of some stark statistics:
This report was compiled by the Associated Press. For more, read the full story here. ... [Read More] E-mail | Print | Comment
Goldman Sachs, Buffett establish $500 million small biz fund The dance card for small business is getting full. It seems like everyone wants to get their turn -- especially if they have Congress breathing down their necks. Goldman Sachs is the latest to offer help to struggling small firms, announcing a partnership with shareholder Warren Buffett to aid 10,000 U.S. small businesses. The $500 million could go a ways toward convincing Congress that Goldman Sachs isn't as greedy as its billions in post-bailout bonuses might indicate. Read more from Bloomberg.com. ... [Read More] E-mail | Print | Comment After four months, Edmonds shop owner vacating her roof 
Carol Schillios in her rooftop camp in July. (Dan Bates/The Herald) Carol Schillios is finally coming down from the roof of her Edmonds storefront. She's braved heat, rain, wind and hail since she set up camp on the flat rooftop about four months ago. The goal at the time was to raise $1 million to continue the work of her non-profit, the Fabric of Life Foundation. So far, Schillios has raised $91,170. And she's adjusted the goal to $100, 000 according to her donation site. I first wrote about Carol in July, when she announced she was taking to the roof for God-only-knows how long. When I spoke to her in her rooftop living quarters that hot afternoon, she told me: "This is about inspiring people, no matter where in the world, that anything is possible. That one person can make a difference.” There's a long list of people who seem to agree. The Edmonds Fire Department will be on hand to help Carol down from the roof this Saturday. The celebration is planned for 2 p.m. outside the Fabric of Life store at 523 Main Street. ... [Read More] E-mail | Print | Comment Unemployment: Up, up and away? Well, they were right. It looks like unemployment rates really will get worse before they get better. Unemployment in Snohomish County climbed to a sobering 10.2 percent in October, nearly a percentage point above the Washington state average. The statewide seasonally adjusted unemployment rate increased to 9.3 percent in October, up from a revised rate of 9.1 percent the month before, according to data from the state Employment Security Department. Read the full report here. The state lost an estimated 5,100 non-agricultural jobs in October. Year over year, Washington had 120,000 fewer jobs last month than in October 2008 -- a 4.1 percent decrease. Nationally, employment declined by 4 percent over the past year. Snohomish County's rate, not yet seasonally adjusted, comes closer to doubling the 5.9 unemployment rate the county saw in October of 2008. Statewide, nearly 311,000 people were looking for work in October, according to data released Tuesday. Nearly 229,000 people received unemployment benefits from the state that month. The presidents of the regional federal banks in San Francisco and Atlanta warned last week that jobs won't likely rebound for several years, and that small businesses probably won't play the stimulus role they have in the past. Slight net job gains are expected to occur in 2010. ... [Read More] E-mail | Print | Comment
Northwest business pushes 'Frogboxes' 
Local Frogbox entrepreneur Jeff Hill. (Courtesy photo) I promised myself I wasn't going to make any puns about "thinking outside the box" in this post. We'll see how far I make it. (After all, I love a good box-related pun.) Here goes nothing: Meet Jeff Hill. He's your local Frogbox entrepreneur. The Snohomish resident works in the moving industry, distributing earth-friendly, reusable plastic bins. He also owns a local 1-800-GOT-JUNK franchise. This is usually the place I'd insert a pun about thinking outside the box. Suffice it to say, the concept for Frogbox is one that appeals to earth-conscious consumers -- and it can make for an easier move, said Frogbox founder Doug Burgoyne. The official description from Burgoyne: "Frogbox rents reusable plastic boxes to people and businesses that are moving, so they don't have to use cardboard. We deliver our boxes to people's homes and then pick them up in our biodiesel trucks once they've moved into their new place." The company is headquartered in Vancouver B.C. There's a reason for the name; the company gives 1 percent of its revenue to frog habitat restoration projects in the Northwest. Burgoyne said the company's Web site is powered with solar power -- you can visit it here. ... [Read More] E-mail | Print | Comment Businesses downsize office space to save money 
Stacks of packing boxes are becoming a more common sight around offices -- and not necessarily because the economy is putting companies out of business. Many small businesses are finding that in order to ride out the downtown, they need to consolidate office space. The Associated Press released a story yesterday that looks at the trend, which is spurred mostly by cost-cutting concerns and an increase in telecommuting. Basically, companies just don't need as much space as they once did. So, why pay for it? The AP puts it this way: Owners say they're saving money on real estate, office furniture and other expenses by letting employees work from home or by using independent contractors who don't work on-site. And those who have cut staffers obviously don't need to provide space for them. Real estate professionals told the AP they're seeing more businesses looking to downsize, re-thinking how much square footage they actually need if employees aren't in the office full-time. "Business owners are getting a bit more savvy about how to get better use of their real estate dollars," said Diane Henry, senior managing broker with Red Real Estate in Manhattan. She said owners are realizing, "I'm paying for way too much space, and I need to pare it down to what we actually need." Has your company cut down on office space? Let us know, and you might be featured in a story. ... [Read More] E-mail | Print | Comment SBA expands training to Native Americans near Seattle A federal small-business training program is expanding to Native American communities across the country, including those in the Seattle area. The federal Small Business Administration announced today that it's expand the Emerging 200 (e200), an executive-level training program for small business owners. The expansion will take place next year. The announcement comes just days after President Obama promised Tribal Leaders he would work to bring economic prosperity to Native American Communities. Some reservations across the country have unemployment rates as high as 80 percent. The e200 program is open to businesses with potential for growth in under-served markets, according to a statement from the SBA. The program provides training, networking opportunities and other resources to help grow businesses and create jobs. “Over the last few years e200 has been a catalyst for expanding opportunities for many promising small businesses in under-served communities – in particular those who have been most impacted by these tough economic times,” SBA Administrator Karen Mills said. According to SBA data, more than half the businesses that already participated in the nine-month e200 training saw an increase in revenue, and almost two-thirds have created new jobs. And entrepreneurs who completed e200 secured more than $9 million in new financing. Besides the Seattle area, the program will also expand to include Native American communities near Portland, Denver, Albuquerque, Tucson, Phoenix, New Orleans and other locations. ... [Read More] E-mail | Print | Comment
Report shows optimism up, jobs down The National Federation of Independent Business released its quarterly report yesterday, showing small-business owners are more optimistic about the economy, but still not hiring. For starters, here are the basics laid out in the report, which you can read here. 
In a nutshell, optimism is higher than it has been in the last 13 months, according to the business owners surveyed. But that optimism isn't playing out in the way you might think. Small business sales are still low, prices are still dropping and jobs are still being cut, according to the report. Here's the historical outlook: 
The NFIB, which has long been critical of efforts to bolster small-business lending, released this commentary on what the report turned up: "The (Obama) administration has recently jumped on the 'small business bandwagon,' although little important action has been taken. It sounds like the Administration thinks the reason small firms are not hiring is that they are not able get credit. Although credit is harder to get, “financing” is cited as the “most important problem” by only four percent of NFIB's hundreds of thousands of member firms. Although a nice gesture, enhancing SBA lending programs will not help much – too many owners have no reason to borrow." The commentary continued: "Record low percentages cite the current period as a good time to expand, more owners plan to reduce inventories than to add to them, and record low percentages plan any capital expenditures. In short, the demand for credit is in short supply and failing to understand the more major problems facing small business leads to bad policy." ... [Read More] E-mail | Print | Comment Forward Mobility moves on in $100,000 contest 
Joel and Patty Smith own Forward Mobility. (Herald photo) Forward Mobility, the Edmonds-based start up I wrote about last week, is moving on in their quest for $100,000 in grant money from a contest hosted by Inc.com. But that's mostly because of a Web site error. Inc posted a message online saying all 13 semi-finalists will move on to the final competition in San Francisco next week due to an online voting error. "Due to issues in the online voting portion of the Newpreneur competition, we decided the fairest course of action, as the rules allow, is to invite all 13 Finalists to compete in the finale event," the message read. The competition is sponsored by Alibaba.com. The final event is on Nov. 18. But while winning the first prize of $50,000 isn't actually any closer for Forward Mobility, the company reports publicity related to the competition is already paying off. Companies in Israel, Jordan, Australia, Spain, Great Britain, Ireland, New Zealand and other countries have contacted Forward Mobility about distributing its medical mobility devices. ... [Read More] E-mail | Print | Comment
Lockhart: Recovery isn't likely to come from small businesses The nation's recovery from recession will be slow and marked with high unemployment rates, Federal Reserve officials said Tuesday. The presidents of the regional federal banks in San Francisco and Atlanta warned that jobs won't likely rebound for several years, and said small businesses probably won't play the stimulus role they have in the past. Dennis Lockhart, president of the Federal Reserve Bank in Atlanta, said a “very slow net job gains” may occur “sometime next year," according to the Associated Press. The AP reports: Small businesses — which held up reasonably well in the 2001 recession — have been clobbered by the downturn, accounting for about 45 percent of net job losses through the end of 2008. During the last two economic recoveries, small businesses contributed about one-third of net job growth. Lockhart said he doubted that would be the case this time. Many small businesses rely on community banks for credit, such as Everett's Frontier and Cascade banks. But those types of banks are drowning in commercial real estate loans -- an area largely in default -- meaning credit is hard to come by. Lockhart said he is “particularly concerned” about that linkage, according to the AP. ... [Read More] E-mail | Print | Comment Holidays look brighter for shipping industry 
commons.wikimedia.org Maybe it will be a happy holiday season for the shipping industry after all. Forrester Research is projecting an 8 percent increase in online holiday sales compared with 2008, sending expectations for online spending to $44.7 billion. A recent study also found that 42 percent of consumers will be motivated by shipping offers to buy more online this year than in the past. That one indicator of economic recovery has shipping companies like Memphis-based FedEx doing a happy holiday jig. FedEx plans on moving more than 50 million packages the week of December 14, historically the company's busiest week of the year. On December 14 alone, FedEx projects it will move more than 13 million shipments, according to a statement from the company. That's up from 12 million packages on last year's busiest day. On an average day, roughly 7.5 million packages move through FedEx systems. The company didn't release holiday projections last year, as the nation plunged into recession. This year, FedEx's Ground unit will add 14,000 additional part time and temporary workers during November and December, reports the Associated Press. And UPS spokesman Norman Black told the Associated Press that the company expects to hire about 50,000 seasonal workers in the U.S. this year. It hired 60,000 seasonal workers in 2007, and didn't release statistics in 2008. ... [Read More] E-mail | Print | Comment Cantwell, Murray host federal funding symposium in Everett Eager to get some federal grant money? You might want to mark your calendar. On Monday, Nov.16, the offices of Senators Maria Cantwell and Patty Murray will hold a "Federal Funding Symposium" to discuss federal grants and the appropriations process. They'll offer tips on submitting a grant application, finding the right funding source for a project and how to best work with Washington's elected officials. Non-profit organizations, small business owners, municipalities, tribes, and higher education officials are encouraged to attend, according to a release from the senators. WHEN: Monday, November 16, 2009 TIME: 2:00 p.m. WHERE: Port of Everett's Yacht Club, 404 14th Street, Everett WA FOR MORE INFORMATION: Email workshop@murray.senate.gov or call (888) 648-7328. ... [Read More] E-mail | Print | Comment SBA expands "bootcamp" training for service-disabled veterans The federal Small Business Administration is entering into a three-year agreement to expand entrepreneurship training for service-disabled veterans of the wars in Iraq and Afghanistan. The agreement with the SBA's Office of Veterans Business Development will support the expansion of the year-long Entrepreneurship Bootcamp for Veterans with Disabilities, according to a statement from the agency. The goal of expanding the management training and mentorship program is maximizing small business programs for veterans, service-disabled veterans, reserve-component members, and their dependents or survivors. The SBA also launched a contracting tutorial on www.sba.gov this week, part of ongoing efforts to expand services to veterans and service-disabled veterans. Veterans and military spouses who own small businesses can use the free online course to learn how to identify and take advantage of federal contracting opportunities, according to an SBA statement. “At this important time, with veterans returning from foreign soil in increasing numbers, we at the SBA are working to ensure they have the resources to successfully start and run their small businesses. As a result of the leadership skills they develop during their service, veterans over-index in entrepreneurial activities,” SBA Administrator Karen G. Mills said. She added: “Our commitment is to honor that service by helping our nation's veterans – especially those who return home with disabilities – fulfill the American Dream. Initiatives like the Entrepreneurship Bootcamp and our online training courses give veteran business owners the tools they need to grow, be competitive, and create jobs.” ... [Read More] E-mail | Print | Comment
H1N1 exposes weak leave policies 
From the Washington Post: WASHINGTON — Across the country, the arrival of the flu season has prompted companies of all sizes to weigh how to accommodate sick workers while keeping the business running. President Obama has declared the swine flu situation a national emergency, and federal agencies recommend that businesses remain flexible and let sick workers stay home. Congress has also weighed in with a proposal that would mandate employers to offer paid sick leave. Under a bill introduced last week by members of the House Education and Labor Committee, employers with 15 or more workers would be required to provide five paid sick days per year for workers sent home with contagious conditions such as the swine flu. “Sick workers advised to stay home by their employers shouldn't have to choose between their livelihood and their coworkers' or customer's health,” Rep. George Miller, D-Calif., chairman of the education and labor panel, said in a statement. The National Small Business Association, which has not taken a position on the legislation, has in the past criticized similar proposals as harmful for business owners. “The more restrictive the government is in how businesses can develop their benefits programs, the less flexible business owners can be,” said Molly Brogan, a spokeswoman for the small-business group. “If it's paid sick leave, you're paying somebody who's not going to be there and you have to pay somebody to replace them. That has the potential to affect the bottom line for a lot of small businesses.” ... [Read More] E-mail | Print | Comment Chase to increase small-business lending next year 
New York-based JPMorgan Chase announced plans today to expand lending to small businesses by up to $4 billion in 2010. According to American City Business Journals, the bank will hire more bankers to handle the extra work. That will bring the bank's total small-business lending up to $10 billion. According to a statement from Chase, most new lending activity will occur with business that make $10 million or less in annual sales. “We will provide more credit – and more one-on-one advice – to small businesses at this crucial time because they are so important to the U.S. economy,” said Charlie Scharf, head of retail financial services, in a news release. And that's just a start. Chase also plans to introduce a new line of credit cards geared toward businesses, and host online training and town halls on credit issues for small business. This comes at a time when banks are facing criticism for how they've used federal bailout money. Read more about that here. Chase bought Seattle-based Washington Mutual from the FDIC in September of last year. ... [Read More] E-mail | Print | Comment Fashion designer opens Marysville clothing shop 
Patricia and Eric Schoonmaker opened Trusty Threads, a used-clothing store in Marysville. (Dan Bates/The Herald) Patricia Schoonmaker worried about how she'd stay in the clothing industry when she lost her job as a Seattle fashion designer in August. “There are not a lot of design jobs right now,” she said. But Schoonmaker also knew there aren't many specialty clothing shops in north Snohomish County, where she lives with her husband, Eric. Just like that — as simple as making lemons into lemonade — she's a business owner. Schoonmaker opened Trusty Threads, a vintage clothing store in Marysville, two weeks ago. The storefront on Fourth Street is a lone bright spot on an otherwise quiet block. Neighbors hope that the little shop is an omen, signaling that businesses are going to start moving in — not out — in the next few months. We have more on Schoonmaker's business in this story. She's not the only recession-inspired entrepreneur to start a business after losing a job. Read this story if you're interested in hearing about others. Want to hear the story as Schoonmaker tells it? Watch the video below. ... [Read More] E-mail | Print | Comment Free small business counseling in Lynnwood Looking for advice for your small business? It doesn't get much easier than this. SCORE, a counseling organization partnered with the federal government, is holding office hours at the Lynnwood Library Nov. 17 from noon until 4 p.m. Small business owners and entrepreneurs can drop by to speak with SCORE advisers who are handing out general business advice about starting and running a small business. Seattle SCORE Chapter 55 is hosting the event, along with the library. For a session with a counselor, sign up at the Lynnwood Library information desk. For more on SCORE, click here. ... [Read More] E-mail | Print | Comment
Can your business profit from the 2010 Olympics? The 2010 Olympics in Vancouver will mean more traffic through Snohomish County, and local business owners are trying to figure out how that could translate into sales. That's a tough question, and the Marysville/Tulalip Chamber of Commerce is giving free service training to business owners who are trying to attract Olympic tourists. From a release sent out this afternoon: "The Greater Marysville Tulalip Chamber of Commerce is proud to offer a unique opportunity for area businesses to prepare for the upcoming 2010 Olympic tourists and beyond. To promote world-class customer service skills and further the economic success of our communities, fully paid scholarships are now available for business owners or a key employee to attend SuperHost training at Everett Community College. The Chamber's ability to offer 100 scholarships is made possible through its' recent Hotel / Motel grant award from the City of Marysville, which will help ensure that tourists receive a superb customer service experience as they travel through our communities. In order to provide this training to as many businesses as possible, only one scholarship per organization will be available on a first come, first serve basis, so don't delay in reserving your spot. The training will prepare your business for Olympic 2010 travelers and successful participants will receive Olympic pins and certification signaling your organization's training and expertise. A prediction model anticipates an increase of 7,577 people traveling I-5 on a daily basis. Our goal is to provide world-wide standards of customer service excellence to our area merchants designed not only to serve these unique guests but to do it in a manner that elicits their return both as travelers and as potential business relocations." “This is a unique and outstanding opportunity to capture initial tourism revenue and showcase the Marysville / Tulalip area as a destination in itself, and increase customer service skills throughout our community for years to come.” said Chamber President Caldie Rogers. Read more about applying after the jump. ... [Read More] E-mail | Print | Comment |
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