[Hidden-tech] Business stimulus for HT members ?

[Town Websites]

I think one answer is that technology ought to be able to reduce overhead,
allowing smaller transactions (and entities) to be viable - especially if
there is a high volume of small transactions and traditional methods result
in a relatively high fixed cost per transaction.

 

Whether that can apply on due diligence for a loan of $250, to the point
that loan can be evaluated profitably as compared with a $250K or $2.5 M
loan, I doubt it.  But I think there's plenty of room for enhancing the
relative value of micro business using micro-transaction technology. 

 

I think this applies to making low population density places viable - for
example, where the state wants to consolidate school districts, it is
primarily the state's overhead cost per district that is driving the
presumption that larger districts are more cost effective.  But if instead
the efficiency focus were on making the various bits of the administrative
process less costly to apply to many small entities rather than fewer large
entities, perhaps the administrative costs could be driven down while still
allowing villages (and small cities) to run their own local schools.  The
same logic , perhaps, drives the notion that "small business" has to be
defined as $5 million in order to gain traction with economic development
planners trying to figure out a viable process to apply stimulus.

 

One might just hope for an economy where the macro outlook is growth and
international balance, and the govt leaves micro business more or less
alone, assuming creative people will figure out ways to apply technology to
enhance productivity of very small, very low capital working groups. 

 

Where there is consideration given to micro businesses, perhaps the focus
should be on making sure the frameworks aren't set up to make it harder for
them to exist - for example, there's little justification that health
insurance should cost any more for individuals & families or very small
businesses than for fortune 500 companies, except in the definition of
insurance pools which are established through govt regulation.

 

As well, perhaps, assure that regulations on procurement specs for govt
contracts are not designed to thwart competition from micro businesses.

 

Charlie

 

 

From: Rich [mailto:rich at on-the-net.com] 
Sent: Tuesday, December 15, 2009 9:47 AM
To: Shel Horowitz
Cc: rich at tnrglobal.com; HT-discuss
Subject: Re: [Hidden-tech] Business stimulus for HT members ?

 



On 12/15/2009 6:57 AM, Shel Horowitz wrote: 

  At 11:43 AM -0500 12/14/09, Rich wrote:

With all the discussion of business stimulus I thought I would pass
interesting items on as they pass my desk.
I am specifically interested to know what HT members are interested in.

As with most of you, my business is not the type banks see any value in,
no inventory, just a bunch of (smart) people.
And that is exactly the point, I get asked by economic development planners,

and the only answer I can give so far, is that part of their jobs is to help
us
determine how the state/fed/etc can help small business.

What I have found is that all they do is keep defining small business as
bigger,
so it's easier for them to work the overhead.

BTW, I don't think there is anyone in HT who is what is defined as 'small
business'
we are now defined as micro-business - small is $5-100Mill

So a question to all of you - who is interested in discussing  how to get

all these agencies spending our money to put in back into HT type businesses
?

 

Great post, Rich. But let me play devil's advocate...


Actually I'd rather you (and the rest of HT) be positively creative.  

Also, I am not necessarily saying HT members should get specific ARRA
grants,  although
for those interested in growth, there are plenty of projects that could our
skills in this region -- I might remind all that this area used to have
1,000 of jobs
that are now gone - Greenfield had over 4,500 workers in Greenfield Tap and
Die.  This area has needed the kind of projects that ARRA is sponsoring for
decades.  The fact it took a total failure of direction and leadership in
Washington, Wall Street and Detroit to lead to this is not my concern for
this discussion.




 

Yes, we want to be counted as businesses, and yes, the trend to exclude us
has gotten worse.

 

But as a taxpayer, I want to see stimulus funds going to job creation, and
going to businesses that are hitting a financial wall without help. Many of
us H-T folk have little or no inventory, create few if any jobs, and have
fairly minimal capital needs (upgrade the computer every few years). If we
could tap into the pool of stimulus money for making our homes more
energy-efficient, great. But the business stimulus pool should really go to
those who are creating jobs. That of course could easily be companies well
below 5MM, maybe even as low as 250K--which is still well above my class.

What we have in common is we have created businesses with little of the
overhead that industrial companies need for meaningful economic
contribution.  
The majority of successful HT businesses bring in business from outside the
Pioneer Valley.
There is a lot we have to teach.

To add to this discussion, I have re-posted a number of economic reports
from the older web site, they are at:
http://www.hidden-tech.net/skills-report/reports/128-reports-and-resources.h
tml




I suspect my situation is fairly typical in our circle: I've been in
business 28 years and have only created one part-time job (a steady
independent contractor, to be accurate). I have no debt other than my home
mortgage, have a few thousand dollars worth of inventory (books), and mostly
create what wealth I create on the basis of my brainpower and
writing/marketing skills. 

First off you have created at least 2 jobs, if you count yourself - and
maybe more if you count family members who 'help out' -- In my case, as well
as the 2 dozen or so people I've hired or have been consultants on my
projects, both my son and daughter have been involved in businesses in a
key area of responsibility -- either their own or others.




I submit that people in my situation need reasonably priced creative
marketing, not a bailout.

Now you are getting to the point I am making - we need to point the various
Gov't entities how they can be of help -- and to each other.
Please expand more and maybe one of the other HT members can help.




_________________________________________________
Shel Horowitz
Book shepherd, copywriter/marketing consultant, author, speaker
Affordable, ethical, effective marketing materials and strategies
"I show the world the *value* in your *values*."

Twitter (best way to reach): @shelhorowitz

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mailto:shel at principledprofit.com * 413-586-2388

Award-winning author: Principled Profit: Marketing That Puts People First

 





-- 
Rich Roth
CEO On-the-net
 
Bringing you complex online systems since the net was young
http://www.tnrglobal.com - Blog: http://www.rizbang.com
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