February 9th, 2010, 12:00 pm by Jan Norman, small-business columnist
Small-business owners continue to be decidedly pessimistic despite improvements in the economy, according to the monthly survey released today by the National Federation of Independent Business.
“The biggest problem continues to be a shortage of customers,” says NFIB Chief Economist William Dunkelberg.
It is the 7th straight quarter in which the Index of Small Business Optimism was below 90 (100 is neutral; the lowest reading ever was 80.1 in 1980).
The index is a combination of responses about current and expected earnings and revenues, hiring and capital spending plans and perceptions about the economy.
On average, small-business owners cut half-a-job per company in January, with more than twice as many laying workers off as hiring.
For the most part, small businesses aren’t buying big-ticket items or taking out loans in order to expand.
“A revival of capital spending will require a significantly improved business outlook and some support from reluctant customers,” NFIB reported.
Almost five times as many reported lower profits as reported higher profits in January. And twice as many reported lower sales as reported sales gains.
“Don’t expect much spending or hiring until these trends reverse,” Dunkelberg said.
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Posted in: Economy • Jobs • Reports • Top posts • National Federation of Independent Business | Post a Comment »
February 9th, 2010, 6:00 am by Jan Norman, small-business columnist
If you found your true love at work, you’re not alone. Four out of 10 workers told a recent survey by Harris 
Interactive and Spherion that they had an office romance at some point in their careers.
Here’s a caution just in time for Valentine’s Day.
Love in the workplace may be common, but may also be disastrous for workers as well as their employers, says attorney James J. McDonald, managing partner in the Irvine office of Fisher & Phillips LLP.
Yet McDonald’s advice isn’t for employers to adopt a no-dating policy for all employees.
“You have to be realistic. Sometimes people fall in love,” he says. “When I give talks on this subject, usually there are people in the audience who found their spouse at work.”
It figures. People spend at least half their waking hours at work. Co-workers have common interests (and occasionally common complaints — misery loves company). Read the rest of this entry »
Posted in: Legal • Local companies • Top posts • Workplace • Fisher & Phillips • office romance • Valentine's Day | 4 Comments »
February 8th, 2010, 4:00 pm by Jan Norman, small-business columnist
Allergan, an Irvine health-care company, has bought Serica Technologies Inc. of Medford, Mass.
The dollar value of the deal wasn’t disclosed. Serica shareholders received cash plus equity in a new company, Alacer Biomedical Inc., which holds exclusive rights to Serica’s intellectual property for orthopedic and veterinary uses.
Serica has developed a biodegradable, silk-based material to repair connective tissue. Allergan’s best known product is Botox.
Serica will remain in Massachusetts, where it was founded in 1998 based on technology originating at Tufts University near Boston. Serica had raised less than $24 million from individual investors and venture capitalists Prism VenturWorks, Morningside Technology Ventures and Ivy Capital Partners.
“Our team is excited to join Allergan Medical, and we are further motivated by their strong commitment to continue developing Serica’s technology,” said founder Gregory H. Altman. “Given Allergan’s expertise across multiple health care specialties, they were able to quickly gauge the great potential of our technology platform.”
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Posted in: Local companies • Mergers and Acquisitions • Allergan • Serica Technologies Inc. | Post a Comment »
February 8th, 2010, 11:30 am by Jan Norman, small-business columnist
The technology industry is key to California’s economic and fiscal problems, according to a survey of state voters.
The survey found that 96% of respondents believe technology and innovation are important to California’s economy, and 42% say there are too many government regulations on tech companies vs. 15% who say there are too few regulations.
The survey was conducted by Tulchin Research for a new statewide coalition, CALinnovates.org. Its purpose is to promote innovation, create new jobs and support tech-friendly policies.
“Innovation begins in California. That’s why we’re here,” said Steve Hoffmann, president of NRG West in Carlsbad. “There are thousands of innovators around the state working in both billion-dollar businesses and out of their garages.”
Mike Glickenhaus, CEO of VMIx Media in San Diego, adds, “Venture money is tight and employment costs are high, but we are choosing to do business in California. It’s nice to know that the people of California support our efforts.”
Other findings:
- 80% say California is on the wrong track
- 79% are proud of the state’s history as an innovation leader (it was 89% in the Silicon Valley)
- 66% say policymakers should focus on ways to boost the state’s tech sector to help the economy
- 65% say California is the nation’s leader in technology and innovation
- 52% say policymakers don’t put a high enough priority on technology and innovation
CALinnovates advisory board member Barbara O’Connor of Sacramento State University says, “The survey confirms what we suspected: Californians don’t think their elected officials are paying enough attention to the tech sector.”
Other business stories…
Posted in: Economy • Technology • Top posts • CALinnovates • Tulchin Research | 4 Comments »
February 8th, 2010, 6:00 am by Jan Norman, small-business columnist
As of Jan. 1, small-business owners with pension plans or 401(k)s must file electronically the annual report to the Department of Labor or face a $15,000 penalty, says Brett Goldstein, president of The Pension Department in 
Plainview, NY.
The law is designed to save the government money by reducing manual operations, Goldstein says, but may be a burden for some small-business owners.
Because some owners may not access to the Internet or understand how to use it, many groups have asked to Dept. of Labor to allow actuaries or tax preparers to file the required form (Form 5500) electronically on their client’s behalf, Goldstein says. The department’s response was that the ID and password given to employer so that they can electronically file Form 5500 must be protected and not shared.
The Dept. of Labor should make exceptions, he says.
“It’s one thing to allow companies to electronically file, but to mandate that everyone must file electronically without any exceptions is unconstitutional,” he says. “To assume that every business in America has access to the Internet and knows how to use it or wants to, is ridiculous. I have several clients that refuse to use the Internet or e-mail.”
Click here for more information.
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Posted in: Government rules • Legal • Reports • Top posts • 401(k) • Department of Labor The Pension Department • pensions | 9 Comments »
February 7th, 2010, 12:00 pm by Jan Norman, small-business columnist
UK’s Telegraph reports the latest casualty of the long, bad economy: More British workers have to buy their own cups of tea at work.
At my work, the price of a cup of coffee has gone from 10 cents to $1.75 over the years, and with all the layoffs, the coffee club that collected $4 a month for all the coffee you could drink disappeared. But free? Never.
What about your workplace?
Has your employer stopped providing free stuff?
If some goodies have gone by the wayside, tell us what in the comments below.
As for the British, a quarter of workers said their employer had taken steps to cut the cost of refreshments over the past year, according to a survey by uSwitchforbusiness.com, an online price comparison service.
32% say free tea and coffee boost workplace morale, and one in 10 says the cutback has affected staff attitudes.
A third said their employer is generous to staff, and 43% said staff perks are poor.
“Cutting out the free cuppas may add to the bottom line, but there may be a far greater price to be paid in staff morale,” says Jake Ridge of uSwitchforBusiness.com.
Other business stories…
Posted in: Economy • Jobs • Poll • Top posts • Workplace • work benefits | 8 Comments »
February 7th, 2010, 5:30 am by Jan Norman, small-business columnist
Coto de Caza resident Kevin Melgren loves to play lacrosse. His dad Rick says fine but buy your own equipment.
“I don’t want him to grow up spoiled.” Rick says. 
Most kids faced with such a challenge would baby sit or mow lawns.
Kevin (right) startedan online apparel line, West Coast Style LAX, to sell T-shirts, visors, hoodies and stickers. (LAX means lacrosse, not the airport). T-shirts sell for $16.95. Visors are $14.95. Hats are $19.95.
Kevin got his entrepreneurial streak from Dad, who owned a screenprinting business and motorcycle accessories manufacturing firm for 26 years before retiring.
“Yeah, the old man helps but Kevin came up with the name and idea, and he uses his own money,” Rick says. “He takes the shirts to games and tournaments, sets up his booth and sells them.”
Kevin has been a model in ads for Sports Chalet and commercials for Walmart. He used some of those earnings to set up West Coast Style LAX and its e-commerce web site.
Lacrosse, started by American Indians, is widely played in the East Coast, but Orange County has lacrosse leagues for youth to adults. Kevin, who started playing the sport three years ago, figured why not develop an apparel line to “give off a West Coast vibe.”
West Coast Style LAX gives a percentage of profits go to support lacrosse leagues and collects used lacrosse equipment to donate to inner city leagues to build awareness for the sport.
Dad, who of course is completely unbiased, says, “I think West Coast Style could be the Quiksilver of lacrosse.”
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Posted in: Entrepreneurship • Local companies • Top posts • lacrosse • West Coast Style Lax | 14 Comments »
February 6th, 2010, 12:00 pm by Jan Norman, small-business columnist
The Super Bowl is the most popular topic for unofficial office pools, according to a survey by the Society for Human 
Resource Management
Tell us about your workplace then read about others:
Does your work have office pools?
I added the word “unofficial” because as we all know such pools are illegal gambling in most places. HR Advisor explains it here. Still, as HR notes, some workplaces see such friendly wagers as morale boosters.
HR Advisor cautions, “If you have a gambling policy on your books, don’t ignore it. If you don’t enforce it, employees may then argue that your company is selective in which policies it enforces. And that spells legal problems down the road in trying to enforce any policy.”
Well, there’s the law and then there’s real life. Read the rest of this entry »
Posted in: Poll • Top posts • Workplace • illegal gambling • office pools • Super Bowl | 2 Comments »
February 6th, 2010, 5:45 am by Jan Norman, small-business columnist
Cari Carter dumped the contents of her purse onto her car floor every time she took a corner a little fast or hit the brakes
Car*go Handbag Hook
suddenly.
She experimented with bungee cords and utility hooks. Ugly. She put a bow and a clasp on a fancy robe hook. Better.
In fact, her friends wanted one too. “That’s when I realized I might have something in this creation,” Cari says. In October 2008 she launched Car*go Handbag Hooks to hold a lady’s purse with style and no spill.
They sell for $29.95 on the Car*go Handbag Hook web site. And recently Park Place Lexus, MV Audi in Mission Viejo and Confetti in Ladera Ranch started selling them too.
So far, Car*go is a good second business to her Area Interior Planning design service.
“I have been blessed with a wonderful career over the last 15 years,” Cari says. “Up until the unfortunate demise of our nation’s economy, design had been my sole focus. But with the decline in business, the need for a secondary income became necessary.
“The birth of Car*go Handbag Hooks gave me the opportunity I was in search of and has been such a fun and exciting diversion from my regular profession.”
Here are two more looks:
Cari is now working on additional designs and styles for women and a new Car*go for Men, with more masculine hooks for briefcases and laptop computer bags. The original hook is made of steel and alloy to hold up to 15 pounds.
Other entrepreneur stories…
Posted in: Local companies • Top posts • Women entrepreneurs • Cargo Handbag Hooks | 16 Comments »
February 5th, 2010, 3:50 pm by Jan Norman, small-business columnist
Small businesses are in the worst financial shape in almost seven years, according to the January survey by Wells Fargo Bank and Gallup.
Asked about six key measures — cash flow, revenues, capital spending, hiring, credit availability and financial 
situation — the “present situation” score dropped 5 points to -29, the lowest present situation score in the 27 quarters Gallup has done the Index.
Overall optimism was down one point from the previous survey in October at -16.
A score of zero indicates that small-business owners, as a group, are neutral, neither optimistic nor pessimistic, about their companies’ situations.
The Index is the sum of “present situation” and “future expectations” of small business owners. “Future expectations” increased four points to 13.
Of the six key measures, the following measures served as main drivers of the Index score during this survey:
- 42% rated their cash flow as somewhat poor or very poor for the past 12 months, compared to 36% in October
- 48% expect revenue increases over the next 12 months, compared to 42% in October
- 24% expect spending to increase in the next 12 months, compared to 19% in October
The overall Small Business Index is computed from a formula that scores and sums the answers to 12 questions. The overall Index can range from -400 (the most negative score possible) to +400 (the most positive). The margin of error is 4 percentage points.
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Posted in: Economy • Meltdown • Reports • Top posts • Gallup • Wells Fargo Bank | 2 Comments »
