Entrepreneurs Mean Business - Erics EMF

It's time to get involved

Eric — Sat, 02 Feb 2008 01:34:14 -0500

Last night while I was sitting in class, a discussion broke out about politics; if anyone knows me or my wife, you will know this is a big thing in our lives. As I overheard the discussion a couple of things became very apparent, number one they did not know all of the candidates. Number two they had no clue what each of the candidates stood for.

I know there are a lot of you out there who do not feel like your vote counts, this could be further from the truth. Is the US voting system perfect? No, but it isn�??t going to change? No unless, ironically, we vote to change it.

I have had the opportunity to live outside the United States, and if you are blessed to live in a democratic society, and have the chance to vote this conversation is just as viable to you as someone in the United States. The political issues do matter, they matter to your finances, they matter to your employment and business, and they matter the neighbor next door and the neighbors all around the world.

I urge all of us to research the issues, and find the candidate that aligns closest to what you believe in. I think people would be very surprised to find out what some of the candidates are saying.

To help all of us understand the issues more, I have compiled a list of websites to help us research the candidates.

http://www.politico.com/

http://www.whoshouldyouvotefor.com/quizzes/independent.htm

Fire Fire The roof is on Fire!

Eric — Thu, 31 Jan 2008 13:17:27 -0500

While I was in grade school I remember about once a month we would have a fire drill. Back then I would remember the fire drill going off and I would stand up and listen to the teacher and walk down the hall and meet at a safe place outside. When I was younger I wasn�??t entirely sure why we did it, but I knew it was important enough to stop doing math and that was good enough for me.
You might be asking yourself what does any of this have to do with business? The answer, Nothing! I was just having a moment, and I wanted to share it with you. Actually, it does have something to do with it. Ask yourself a question why have a fire drill? Being older I think it provides a way for people to stay safe and organized. Could you imagine what would happen in an elementary school if there was not a plan in place beforehand?
Do you see the similarity between a fire drill and business? The truth is you need to have a plan in place just in case. Take a second and imagine that you have developed a new widget but in order for this widget to start selling you need to add extra things to it to help with selling. You decide the easiest and least expensive thing to add is a �??Lifetime Guarantee.�?? What happens if you go out of business does the guarantee still hold? The answer, it could.
Nobody wants to talk about a business failing just like no one wants to talk about a fire in a school, but the truth is that both things could fail, and you need to protect yourself ahead of time.
Here are a couple of things I would suggest you do before you even start a company.
1. Talk to a lawyer �?? I am not a lawyer, but I have talked to a lot of them and they can definitely give you the legal perspective you need to run a business. I would also suggest looking into have a lawyer on retainer. By having a lawyer on retainer he will be a constant companion in your venture.
2. Write out an exit strategy- A lot of business�??s get into trouble once they accomplish everything they set out to accomplish, and they are not sure what to do after that. If you set in place an exit strategy then you have a plan. Does this mean the plan is concrete? No, but it is direction and guidelines.
3. Establish the correct type of business classification. Are you an LLC, INC, or S type? Should you be privately or publicly held? These are questions you will need to know.
4. Where is the funding coming from and what are you doing with it?
5. Who is involved and what is there compensation and expectations? People do not work for free. Money in the present and the future could get very ugly if you do not have documentation and perspectives in place.
There is my list of things what other things can you think of? I would like to hear from you.

New Record! Longest Streak Ever

Eric — Mon, 07 Jan 2008 14:22:52 -0500

Some of you might be wondering if I am going for a record for the longest time between posts. The answer is Yes, Yes I am. I figured let�??s get some of these kind of records tied up early. Let me go ahead and give you an update on what has been going on in my life.

First- I left RESCO for several reasons most importantly we did not have the same goals in the end. One of the main reasons for going to RESCO was to help them develop an online presence. After talking to them and working with them for over a year, I realized it was not going to happen.
Second- In correlation with this I took a new job working for a research & development company focused on driving monitoring. I plan on talking more about this in a later post.
Third �?? Because RESCO provided me a computer, and internet access I lost my ability to post. This was probably one of the hardest things I had to go through.
Fourth- New work schedule new routine. Enough said.
Fifth- Holidays this is really not an excuse, but attached to everything else going on, it didn�??t help. By the way we had a great holiday season; it will be a Christmas my family will always remember.
Sixth- School Finals, again; not really an excuse, it did not help. It is nice to think I can see the end in sight.

So there is my reasoning. All of the events are done except for number six, so I should hopefully be able to get back into the routine and start posting every day. I plan on following the same format I set up in October. So plan on a company highlight tomorrow! And a technology post on Wednesday.

Technorati marketing post

Eric — Sun, 02 Dec 2007 09:41:38 -0500

This is a marketing post. There is no material to read. It is for marketing purposes only.

Technorati Profile

Eric's EMF No love for Microsoft

Eric — Sat, 01 Dec 2007 15:58:35 -0500

I will not deny that I have been pretty tough on Microsoft this week. The reason for it, I can. Nothing puts a bigger target on you as a company then being at the top. So when Microsoft who is at the top of the software chain releases in my opinion sub par software they should be criticized. The problem with the society we live in is everyone is so comfortable with Windows they do not see any reason for changing. The truth of the matter I am starting to believe the opposite thought process.

With a lot of open source, and free software available like Linux, Firefox, Google Documents, and Open Office there is a lot of alternatives you should consider. Another big reason to think about open source software is it turns into a collaboration of the masses to help develop the best utilities.

Let me give you an example. In an earlier post Jake talked about Google Documents, and the ability to change how we save and distribute documents to other people. Jake and I have used the utility on several occasions, and it works really well. Instead of having five different versions of the same document, there is one version that five people share and modify.

With Microsoft focused on fixing so many holes, and so many variables that still have not been discovered, I am going to play the wait and see game a little longer. Sorry Microsoft.

Windows Vista Benchmarks

Eric — Fri, 30 Nov 2007 00:04:24 -0500

You know, back in September I gave Apple such a hard time about the I Phone, I think it was time to go after another tech company. Yesterday I talked about the poor performances from Windows Vista. I thought lets give it one more day.

In the chart above we see the office benchmarks performed on the same system using both operating systems and service pack upgrades. As you can see Vista droped from around 87 seconds to 80 seconds. The problem with these numbers is when you look at the Windows XP numbers you start to see why you would question the results.

Windows Vista = Windows ME? Benchmark Test not so good.

Eric — Wed, 28 Nov 2007 15:33:41 -0500

I am sure Microsoft did not plan on the backlash they received yesterday on the heals of the benchmark test done on Vista�??s first Service Pack. Although it is not scheduled to release until early next year this is the third and probably not last time the service pack release has been delayed.

To add to the Microsoft problems they are in the process of releasing Service Pack Three for Windows XP. The good news for consumers is the benchmark actually made a difference in the performance of Windows XP.

Devil Mountain Software administered the benchmark test so a minimal increase in performance on the Vista machine. Using the same machine using XP Service Pack Three had an increase in performance around 10%. Here is a link to Devil Mountain Software�??s blog where you can find more information on the benchmark tests. I am also going to put some of there graphs below so you can see the comparisons.

With rumors of another new operating system codenamed Vienna being launched as early as 2009 could Vista be another ME? Although Vista is definitely a new operating system and not just an aesthetic upgrade like ME questions do arise in my mind. First off why the quick jump to another new operatings system? Second, why so many flavors? With five different flavors I think Microsoft is trying to find what they can charge for an operating system and assess what they will do for Windows 7. Of course this is all my own speculation, but I remember the big hype for ME, and I remember testing the software for Gateway Computers and thinking there is nothing special about it. Although I think Vista has made some steps in the right direction one serious flaw is in the speed of computing.

Another unfavorable situation for Vista is only 16% of corporate America has made the change. A lot of companies including mine are in a wait and see mode. If the performance increase is only going to be 2% I think I will be waiting a little longer.

I have comprised a list of reasons why I will not upgrade:

1. �??Allow or Deny�?? I know Microsoft�??s heart was in the right place, I just think the execution is off on the whole User Access Command. The problem is the little command box shows up so much people are just going to click allow on everything.

2. Disk optimizer. With a constant hard drive monitoring utility running you can definitely tell this process is using a lot of resources.

3. To me the things I use most from a network IT perspective have been moved and made more difficult to find. For example have you tried looking for your Network Connections, or change your TCP/IP configurations?

4. Aero once you play with it, it really isn�??t that cool. At first I thought this was going to be neat, but after I used it a little bit, it really isn�??t anything to jump for joy about.

5. They changed some of the short cut keys. This is a big annoyance to me. I am all about the keyboard. In XP you hit Window, U, U and you where off. Vista, not going to happen!

6. Printer Driver conflicts. I have about 40 PC�??s I am responsible for at work, and all of the computers are hooked up to hosting computers. Some of my Oki, and HP printer drivers would not work on Vista. So instead of making a quick connection I have to download new drivers for Vista Machines so the printers could talk to my Vista Laptops.

One last point I want to make. Because of the demand for XP is so strong Microsoft was forced to extend its XP production until June of next year!

The richest person in the world!

Eric — Tue, 27 Nov 2007 12:49:12 -0500

Pop Quiz: Who is the richest person in the world? Bill Gates! If you were thinking this, then you are wrong. In July of this year Bill Gates passed that crown off to Carlos Slim. Who is Carlos Slim? That is what today�??s post is on.

According to Fortune Carlos Slim was Born in Mexico City to Lebanese immigrants. He was the last of six children. Carlos has three children who are largely involved in the day to day activities of his holdings.

Like Warren Buffett I would classify his company as a holding company. Carlos focuses most of his investments in Telecom, Insurance, and Financial Services. Carlos has major holdings in retail companies like Saks Fifth Ave, CompUSA, and other US retailers. At age 67 Carlos is taking a step back and letting his three sons run portions of his business. His current wealth is over 58 Billion Dollars.

Carlos has always had the entrepreneur spirit. At age 12 he would buy and sell baseball cards. He later turned this hobby into stocks. By the time he turned 30 Carlos already owned a Stock Brokerage firm and a Soft Drink Company.

Like Warren Buffett it is hard to go through a day in Mexico without using something associated to him. Currently he owns the largest Hospital chain in Mexico along with the insurance company associated with it. He is also a major owner in the power provider and other services including telecommunication and transportation.

Carlos admits he follows the same business model as Wal Mart in the United States. It is obviously working with him being at the top of the food chain. With this large mass of wealth he has drawn a lot of criticism on his business and political positions. Carlos has made it impossible for any outside competition to survive in the telecommunication world in Mexico.

In conclusion I want to conclude with a Carlos Slims Ten Grupo Carso Principles

1. Create an organizational structure with simple, minimal hierarchies; provide personal development and in-house training for executives; maintain flexibility and a rapid decision-making capability; leverage the advantages of a small company and use these to grow and excel.]
2. Maintaining austerity in good times strengthens, profits and accelerates the development of the company, and averts the bitterly drastic adjustments in times of crisis.
3. Stay focused on modernization, growth, training, quality, simplification and the continuous improvement of production processes. Increase productivity and competitiveness, reduce costs and expenses by using global benchmarks.
4. Companies should never be limited by the size of the owner or manager. Do not be a big fish in a small pond. Minimize investment in non-productive assets.
5. There is no challenge that we cannot overcome by working together with clear objectives and knowing the tools we have at our disposal.
6. Money that leaves the company evaporates; this is why we reinvest profits.
7. Corporate creativity is not only applicable to business, but also to solving many of society�??s problems. This is what we do through the Group�??s Foundations.
8. Firm and patient optimism always yields its rewards.
9. All times are good time for those who know how to work and have the tools to do so.
10. Our premise is and has always been that we leave with nothing; that we can only do things while we are alive and that businessmen are creators of the wealth they temporarily manage.
Carlos Slim took some of these points from business lessons from his father, Julián Slim Haddad, who brought his son to work at a very young age and noted his unique interest in commerce.

Why do I need an Exit Strategy? I just Started!

Eric — Mon, 26 Nov 2007 10:52:24 -0500

Last week I talked a little about Estate Taxes when I posted
about Warren Buffett. If you are not familiar with how Estate Taxes work it is
basically a tax imposed by the government on people who are inheriting assets.

A situation can arise when a publicly traded company owner
has a lot of stock in a company dies, and the kids inherit the stock. The
problem is the stock is considered an asset and therefore has to be taxed. Now
I think a lot of planning should be done before you ever get to the point of
death, but there is a lot of �??What if�?? questions that do come up. One scenario
is �??What if�?? the principle owner dies prematurely to an accident? Well, the
answer is hopefully he had enough life insurance!

The truth to the matter is you need to start planning your
exit strategy from the beginning. If you plan on your company being around for
your children, then you need to prepare a plan for them on how they will take
it over. If your plan is just to get to a certain dollar point and then sell
it, then you need to plan it.

One of the reasons I am bringing this up is when I am doing
screening for Grow Utah Ventures. One of the questions that will be asked is �??What
is your exit strategy?�?? Surprisingly, not a lot of people have an answer. Your
exit strategy is the ultimate goal. If your answer is I want to start the
company make a Million and sell, that is great! We have something to work with.
If your plan is I want to be in the business for the rest of my life, then I
need to know what you are going to do with the company when you die.

Here are a couple of things you might consider when you plan
to exit stage left:

Set up a
family trust. If you have a large family this can always make sticky
situations. If the business, or the shares of the business go into a family
trust you can help eliminate family issues effecting the day to day business
operations.

Define exactly
who will take over the company and transition and train this individual before
anything happens. This could be as easy as having a meeting and defining the
roles and responsibilities of each family member in the business.

Have a
will. It is amazing how many people do not have a will. It should be something
you talk about.

Have enough
life insurance to help with the transition. Because, startups a very expensive
and there is not a lot of cash flow you might run into a situation where
financially the well could be very dry. Most entrepreneurs tap there financial
assets out when they first start up and if you die, you could cause some
serious issues to your new startup.

Start the
transition early. If you are getting close to retiring sit down and talk to the
people who are going to take over and set up a plan on how things will
transition. There is nothing more disruptive then a quick change in leadership.

I would recommend when you are starting out a company ask
yourself one question. How long am I going to do this for? Second, what am I
going to do with the company when I am done?

Eric's EMF A Time to Give Thanks

Eric — Fri, 23 Nov 2007 13:45:50 -0500

I know this is very predictable, but I think it is always
important to reflect where you are, and where you are going. Ten Years ago I
was living in the small country of Guyana, and I had the great opportunity
of being thrust into poverty. I have to say it was a very humbling experience
to have to take showers outside with a bucket at the standpipe behind my house.
We also had a huge 500 gallon tank that would only be filled up about once a
month. Of course the water was not potable so that meant we had to boil the water to drink. Our house was
nothing more then a wood shack on stilts. I slept in a mosquito net and if I
was lucky I would come home from a long days work and there might be electricity.

After several months of these living conditions I reminded
how comfortable my life really is. Am I wealthy, not by US standards, but by
world standards most of us in the United States are sitting near the
top of the ladder. Every once in a while I am reminded about the experiences I
had while living in the Caribbean. Sometimes
we are all guilty of spending too much time chasing the almighty dollar. While
there is nothing wrong with this we still need to remember some people in the
world are just trying to survive.

During this holiday seasons lets remember those in need.
Earlier this year I talked about an organization called Kiva.org. Entrepreneurs
all over the world are in need of our help. You would be surprised how little
is needed to help.

As a side note I have been talking to my friends about the Demarara Bridge
just outside of Georgetown,
Guyana. I
finally found some pictures of it. This is by far the scariest bridge I have
ever been on. First off the Demarara river is over a mile wide. Second this
river is a fast moving river during low tide. Because Guyana sits six
feet below sea level you really see the difference between High Tide and Low
Tide. The Demarara Harbor bridge is nothing more then a pontoon bridge made of Styrofoam
or something like that, and it really sways when you drive across.