When Disaster Strikes

I recently drove through 80 mile an hour winds with a six year old in the car. We pulled over, and then drove some more as trees started falling around us, lightening stunning our vision. Our car lifted off the ground, set down again. Power lines were loose and flying everywhere.

Luckily, the storm ceased and we were fine. Our neighborhood was without power for three days, others went without longer. I can live without air conditioning, but it was difficult to have no refrigeration and frankly I wish I could have done laundry. As a freelancer, I also have a home office, highlighting for me the importance of good storage and the need to find backup places to go to get work done.


I felt so lucky compared to the home owners of some of the houses we drove by when the storm was over. Trees had snapped houses in two. Huge trees were uprooted everywhere. We saw one hanging upside down from the telephone wires. A friend’s house was condemned after two trees fell on it. She had to move her family, including her four kids to a rental. These disasters are nothing compared to what’s going on in Pakistan and elsewhere, but it’s home. 

Another neighbor complained that with our unusual blizzards last winter, freak tornadoes this summer, “Bring on the zombies! At this point, I’m definitely ready for zombies!” Don’t speak too soon – Halloween is around the corner.

I started thinking about my experience last week, sawing and hauling trees when I read a government report today about federal funds needed after hurricanes Katrina and Rita. Today many small businesses in the Gulf Coast still face recovery challenges from those tragedies – and now they’re reeling from the oil spill.

The Small Business Administration provided about $1.4 billion in loans after those hurricanes, in addition to monies provided by Louisiana and Mississippi. The GAO recently interviewed some of those small business loan recipients and found that some of the business owners had problems applying for SBA loans because the hurricanes destroyed needed financial records. I hope most small firms are getting on board with cloud computing so they’re not storing their best data on site. If you don't know what that is, there's probably someone at your local chamber of commerce who does. At the very least, get a fire and water proof box.

“Other owners face higher expenses, especially the cost of commercial insurance and added debt from these loan programs, which has made recovering difficult,” the GAO found.

Meanwhile, Gulf Coast small businesses received almost $2.9 billion in federal contracts awarded in response to the hurricanes. The GAO also found that two of the agencies awarding the most in federal contracts for hurricane recovery couldn’t demonstrate they were monitoring subcontracting accomplishment data for 13 of 43 construction contracts. Trust me, people want things built well.

The report also found that populations and the number of small businesses in heavily damaged areas increased, but both are still below prehurricane levels.

“The impact of the recent oil spill in the Gulf of Mexico on small businesses is uncertain,” the report cautioned.

New Health Care Bill Befuddles Micro Business Owners

When it comes to the health bill, small business owners are wondering if they should take two aspirin – but who the heck to call in the morning?

Micro-businesses, which have fewer than 10 employees, are confused whether their health plans meet certain requirements outlined in the Affordable Care Act, according to a new study.

The bill offers entrepreneurs the choice to keep the plan they currently provide – if it meets certain requirements – but most entrepreneurs are uncertain how their plan will meet these new rules and if their monthly premiums will be affected, according to a survey by the National Association for the Self-Employed. Some study highlights:

·         65 percent of micro-businesses say they only somewhat or slightly understand the new "grandfathered" plan requirements and how it may impact their ability to keep their plans.

·         Of those aware of the requirements to maintain "grandfathered" status of a health plan, 43 percent believe they can keep their plan. Fifty-seven percent were either unsure or knew that they would not be unable to keep their current plan.

·         92 percent believe the self-employed and small business owners should receive a notice from their insurer or from the federal government about whether their plan qualifies as a “grandfathered” plan

With close to 50 percent of micro-business respondents wishing to keep their current coverage, a clear understanding of the “grandfathered” status regulations will be essential to a small-business owner’s ability to maintain their existing coverage, says NASE.

“The self-employed and micro-businesses are always looking at how to get the best deal and health coverage is no exception,” said Kristie Arslan, executive director of NASE’s legislative offices. “Our concern with the current 'grandfathered' status regulations is that it leaves business owners with little wiggle room to make key adjustments to their existing health plan to maintain its affordability for the business owner and employees. Ultimately, micro-businesses will be forced to drop their plan they were hoping to keep and be pushed into the new insurance market which is likely to offer more robust, but also more expensive health plans.”

NASE’s survey found that approximately 67 percent of respondents have changed insurance carriers since the inception of their business, with 55 percent indicating that the primary driver for the change corresponded with the desire to find a better deal or lower costs. Many who made adjustments to their existing health plan to address costs did so by adjusting their deductibles – a move that, under proposed rules, would force them to lose their “grandfathered” status.

Kauffman Unveils Tool to Help Simplify Business Plan Contests

The Kauffman Foundation is offering a tool designed to help universities and non-profits simplify and power up business plan competitions.

According to the foundation, more than 50 U.S. universities conduct business plan competitions annually, awarding upwards of $10 million in prizes and in-kind services. "While business plan competitions are an important part of entrepreneurial education, the time and complexity required to administer competitions can limit the size of competitions or prevent organizations from holding a competition," the group said in an announcement unveiling its new initiative.

The group says that the tool, iStart, aims to bring standardization and efficiency to these competitions, as well as transparency and access to the business plans themselves; increasing the number of new firms formed. 

  

The iStart platform will help users learn more about the entrepreneurial ecosystem surrounding university entrepreneurship. It also provides users with access to both the plans that are created as a part of these competitions and the information that is created in the normal course of a competition. Universities and platform-users will be able to mine the data collected from business plan competitions across organizations, gain insight and educate entrepreneurs.

Cups Full of Hope

Cups Full of Hope is a little different than your traditional mix-and-mingle. It’s a fundraising event to beat breast cancer.

Take an everyday, 36C bra and transform it into a work of art. Register your bra on the Success in the City site and mail your masterpiece, along with a short story about what inspired you, by Aug. 27 .

Success in the City, a local networking group for women, offers:

FIVE REASONS TO ATTEND CUPS FULL OF HOPE

5. Hang out with the girls

4. Let your creativity run wild

3. Help local women who are living with breast cancer

2. Exclaim "BRAllelujah!" if you win the $500 top prize

1. Make new connections that could lead to more business

ATTEND

On Sept. 15, join the fun as SITC holds a silent auction for the best bras-of-art. Proceeds will benefit the Tigerlily Foundation, a local non-profit that helps support women in the area living with breast cancer.

WIN

Grand Prize $500: a luxury gift basket provided by The Full Cup

Second Prize $300: stunning jewelry ensemble provided by the Carlin Group

Third Prize $200: gift certificates provided by various sponsors

People's Choice: $150 cash provided by Helios HR

Best Inspirational Story $100: Purse from Biejo Bags provided by Access National Bank

Public-Private Partnership Unveils Nation's First Program to Aid Minority Construction Industry

The Minority Business Development Agency, the International Trade Association and other groups announced an initiative  Tuesday designed to globalize the U.S. minority-owned construction industry by providing education, tutoring, mentoring and procurement opportunities.

Firms that complete the program will have the opportunity to compete for a minimum of $1 billion in contracts from Tutor Perini, a corporation that is also participating in this new program. 

“This program could not be more relevant in today’s economy, where global competition is tougher than ever before,” said U.S. Commerce Deputy Secretary Dennis Hightower.

The Global Construction Program will prepare 150 high capacity, minority-owned and operated general contractors, subcontractors and suppliers to compete for construction opportunities worldwide. Participating firms will receive training, education and mentoring, as well as a new, broader source of contracting opportunities. Tutor Perini is one of the nation’s largest global construction conglomerates.

“The Global Construction Program is designed to provide minority-owned firms with access to relationships, technical training, and skills to compete in the construction industry worldwide,” MBDA National Director David Hinson said. “This is the first time in history that minority businesses will have access to global construction opportunities...This program is the first of a series of programs designed to increase employment and capacity in the minority business sector.”

Included in the program are comprehensive quantitative and qualitative needs assessment, classroom training and distance learning including webinars and online self-study through the University of Southern California, field and on-the-job training provided through Tutor Perini, and training on federal certifications that will allow participants to work on U.S. government-supported construction projects internationally.

“This partnership between USC, private business and the federal government will create thousands of new jobs within minority-owned construction companies by providing instruction, access and opportunity,” said Tom Sayles, USC’s vice president of government and community relations. “This program will create a path to compete for an estimated $1 billion in contracts all over the world in the next four years.”

In addition, Next Level Diversity, LLC will provide the administration of this program, Ralph G. Moore & Associates will conduct the needs assessments and the International Trade Administration will provide training on its global services and the global construction industry.

The program is specifically tailored for minority general contractors, subcontractors and suppliers. Federal sector global contracts traditionally have an entry point eluding even the best minority-owned firms, according to coordinators of this new program. The cost of the program is $10,000 for general contractors and $7,500 for subcontractors and suppliers. The first class is scheduled to begin Oct. 3.

  

To apply, minority-owned firms should send an e-mail to Prequalification@periniwest.com with Global Construction program in the subject line.

Kaplan, Kauffman Partner on Grad Certificates for Entrepreneurs

Kaplan University has partnered with Kauffman FastTrac, a provider of learning curricula for entrepreneurs, to offer two new online graduate certificates designed to prepare students for careers as business people.

“This partnership provides a unique opportunity to combine the innovation of Kaplan University’s online platform with the stellar curriculum that the Kauffman Foundation has developed over the years,” said Kaplan President Wade Dyke. “These certificate programs are a great complement to the university’s online business curriculum. Promoting entrepreneurship through education is central to both of our missions.”

According to the Kauffman Index of Entrepreneurial Activity, a leading indicator of new business creation in the United States, the number of new businesses created during the current recession increased. In 2009, business startups reached their highest level in 14 years – even exceeding the number of startups during the peak 1999-2000 technology boom.

The Graduate Certificate in Entrepreneurship for New Ventures uses the FastTrac NewVenture framework to help students learn the process of starting and building a successful business. The certificate provides instruction in key business areas, including creating business plans, developing financial and operation plans, and creating feasibility studies.

The Graduate Certificate in Entrepreneurship for Growth Ventures uses the FastTrac GrowthVenture framework to help students learn how to manage an expanding business and to strategically align all aspects of the business for growth. The certificate provides instruction in business areas, including creating marketing plans, identifying leadership strategies, creating growth business plans and conducting internal assessments.

”Nearly all net job growth in our country comes from companies less than five years old. So, today more than ever, we need more people starting companies, and we need current business owners to be more successful in growing their firms,” said Carl Schramm, president and CEO of the Kauffman Foundation, which created the FastTrac program.

Women's Small Biz Contracting Program Readies for Launch

The women’s small business contracting program should be ready to launch by the end of this year, Small Business Administration chief Karen Mills told the House Small Business Committee last week.

The SBA in March released a proposed rule identifying 83 industries in which women-owned small businesses were underrepresented when it came to winning government contracts.

That finding placated a group of upset lawmakers, women’s advocacy groups and others who were livid when the Bush administration in 2008 released a plan identifying only four such industries.

Last year the SBA decided to draft a new rule and more than 1,000 businesses, trade groups and others offered comments on it through the May deadline.

In 2000, President Clinton signed the Equity in Contracting for Women Act, allowing the government to set aside contracts for women-owned small firms in industries where females were historically underrepresented.