Customer Referrals

Five Steps to More Customer Referrals is the title of an article that is self-explanatory. The article begins by noting something I heartily agree with namely, that the best means of prospecting for future sales is by getting current customers to do it for you. But how does one go about doing this? That's the gist of the brief linked article.

Treating Aging Brains

The business of treating medical conditions exacerbated by old age is with us to stay and due to get a boost as the baby boomer generation becomes senior citizens. New drug may help rescue the aging brain is the title of a news release of Rockefeller University which discusses an experimental drug shown to counter the effects of aging in brains of rats. The drug has acquired the temporary designation of S18986 and it interacts with brain receptors which transmit signals.

S18986 appears to induce increased activity in dopamine producing neurons. Dopamine is present in the brain and is linked to motivation. It enables you to make that commitment needed to study for a test or exercise. Dopamine has enormous implications, not only biochemically but, with regard to personal and social well being too.

Other effects of the drug S18986 include improved memory and slowed aging of the brain.

Switching Wireless Carriers?

Changing Wireless Carriers? You Can Now Keep the Same Number is a Better Business Bureau article providing information about retention of a wireless phone number when the wireless service carrier is changed. A Federal Communications Commission rule makes this possible and is known by the phrase "local number portability." The carrier switch must occur within the same geographical area. Keep these things in mind when switching carriers and retaining numbers:

* Since the numbers must still be active for a switch keep the existing service while switching.

* The new carrier initiates the "porting process" by contacting the existing one.

* Have a wireless bill at hand when giving information so that the porting process goes smoothly. It is that information which will also be in the database of the existing carrier.

* There may be a fee charged to cover porting costs.

* Only the authorized account holder has legal standing to make the switch and that person must take the needed step on the phone or in person.

* Ask how long the porting process takes and whether a phone switch is needed.

Perfecting Design

If your business entails getting the best design you can get Solid Works might help you. Their touted validation tools are intended to do just that by simulating real conditions in 3D. The idea is to get insight into performance so as to be able to optimize it for a reasonable cost.

Construction Links

The National Association of Home Builders has a website that offers useful information to both buyers and those involved in constructing homes. One can subscribe to the NAHB's weekly newsletter which is delivered to your e-mail inbox.

The Associated Builders and Contractors (ABC) is a national association of construction related firms throughout the United States which advocates basing award contracts on merit in spite of labor affiliation.

Finally there is this construction search engine designed to help find leads for construction projects in one's local area.

Export Financing Through EWCP

Export Financing is the title of Chaper 6 of the Small Business Guide to Exporting. A subsection of Export Financing is titled Export Working Capital Program. The Export Working Capital Program may not be widely known but it may mean the difference between success and failure for small businesses that are short on capital needed to finance an export transaction. Quoting from the linked document:

The Export Working Capital Program (EWCP) (www.sba.gov/oit/finance/ewcp.html) was designed to provide short-term working capital to exporters. The program supports export financing to small businesses when that financing is not otherwise available at reasonable terms. The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1.5 million or 90 percent of a loan amount, whichever is less. A loan can support a single transaction or multiple sales on a revolving basis.

The EWCP is a combined effort of the SBA and the Export-Import Bank (Ex-Im Bank). The two agencies have joined their working capital programs to offer a unified approach to the government’s support of export financing. The EWCP uses a six-page application form and streamlined documentation with a turnaround time usually 10 days or less. A letter of pre-qualification is also available from the SBA. SBA, on its own, can guarantee EWCP loan requests up to $1.1 million, or up to $2.0 million under a co-guaranty agreement with the Export-Import Bank. Loan requests greater than $2.0 million should be submitted directly to the Export-Import Bank. When an EWCP loan is combined with an international trade loan, the SBA’s exposure can go up to $1.75 million. In addition to the eligibility standards listed on the website, an applicant must have been in business for a full year (not necessarily in exporting) at the time of application. SBA may waive this requirement if the applicant has sufficient export trade experience. Export management companies or export trading companies may use this program; however, title must be taken in the goods being exported to be eligible.

While most small businesses are eligible for SBA loans, some types of businesses are ineligible and a case-by-case determination must be made by the agency. Eligibility is generally determined by business type, use of proceeds, size of business and availability of funds from other sources.

The proceeds of an EWCP loan must be used to finance the working capital needs associated with single or multiple export transactions. Proceeds may not be used to finance professional export marketing advice or services, foreign business travel, participating in trade shows, or to support staff overseas, except to the extent it relates directly to the transaction being financed. In addition, proceeds may not be used to make payments to owners, to pay delinquent withholding taxes, or to pay existing debt.

If the loan is for a single transaction, the maturity should correspond to the length of the transaction cycle with a maximum maturity of 18 months. If the loan is for a revolving line of credit, the maturity is typically 12 months, with annual re-issuances allowed.

Five unique requirements of the EWCP loan include the following:

1. Because of the transactional nature of the financing, more information that normal is needed on the buyer, the production cycle, the ability of the exporter to perform, and the method of payment used for the transaction.
2. SBA does not prescribe the lender’s fees or the interest rate that may be charged under this program; both are negotiable between the lender and borrower.
3. SBA guarantees up to 90% (rather than the more normal 75-85%) of an EWCP loan on amounts up to $1.67 million ($2.0 million under the joint SBA/Eximbank guaranty program).
4. Collateral is normally limited to the transactional collateral; export inventory, work-in-process, resulting foreign receivables, and assignments of proceeds for contracts, letters of credit and credit insurance policies. Personal guarantees are required of all owners holding 20% or more of a company for any SBA loan.
5. Because most loans have a term of 12 months or less, the SBA guarantee fee is only ¼ of 1% of the guaranteed amount on such short-term loans.

SBA considers several factors in reviewing an EWCP application. These questions include the following:

1. Is there a transaction and is it viable?
2. How reliable is the repayment source?
3. Can the exporter perform under the terms of the deal?

The EWCP offers several advantages for both the exporter and the lender, including a simplified application form and a quicker turnaround time on SBA’s review and commitment. Under the program, small businesses also can apply directly to the SBA for a preliminary commitment for a guaranty. With SBA’s preliminary commitment in hand, an exporter can look for a lender willing to extend the credit. The lender must apply to SBA for the final commitment.

This link provides further information.

Another Means of Generating Hydrogen

The article Hydrogen Fuel from Formic Acid informs us of a new way of generating hydrogen gas. The source is formic acid and the related research was conducted at the Leibniz Institute of Catalysis in Rostock, Germany. Formic acid has a number of uses. For example, it has been used to treat tracheal and varroa mites in honey bee hives.

Hydrogen, obtained from formic acid, could be used as a source of power for cell phones and laptops although useage in connection with vehicles does not appear to be likely soon. Formic acid is broken down into hydrogen and carbon dioxide at a low temperature range of 26-40 degrees centigrade. Amines are mixed with formic acid and a ruthenium-based catalyst used to treat the mixture. The amine/formic acid mixture is safe.

An advantage of formic acid is the ability to use it directly in a fuel cell. It's drawback is that other sources of hydrogen, like methane and methanol, yield more hydrogen so they can result in greater energy yield per unit measure.

An Immigrant Visa Based on Employment

U.S. employers are able to petition for immigrant visas on behalf of prospective employees based on an offer of employment which meets certain requirements. The petition form is known as Form I-140 and is filed with the U.S. Citizenship and Immigration Services (USCIS).

Information on the form itself is instructive. The form mentions six different types of qualifying positions. Quoting from the form:

1. An outstanding professor or researcher, with at least three years of experience in teaching or research in the academic area, who is recognized internationally as outstanding:

A. In a tenured or tenure-track position at a university or institution of higher education to teach in the academic area; or

B. In a comparable position at a university or institution of higher education to conduct research in the area; or

C. In a comparable position to conduct research for a private employer that employs at least three persons in full-time research activities and which achieve documented accomplishments in an academic field.

2. An alien who, in the three years preceding the filing of this petition, has been employed for at least one year by a firm or corporation or other legal entity and who seeks to enter the United States to continue to render services to the same employer, or to a subsidiary or affiliate, in a capacity that is managerial or executive.

3. A member of the professions holding an advanced degree or an alien with exceptional ability in the sciences, arts, or business who will substantially benefit the national economy, cultural or educational interests, or welfare of the United States.

4. A skilled worker (requiring at least two years of specialized training or experience in the skill) to perform labor for which qualified workers are not available in the United States.

5. A member of the professions with a baccalaureate degree.

6. An unskilled worker (requiring less than two years of specialized training or experience) to perform labor for which qualified workers are not available in the United States.

Note the varied qualifications. Encompassed are skilled and unskilled workers, professionals, professors and researchers. Also of interest to international companies is the opportunity to transfer employees working outside the United States to a position within the United States if, during the three year period prior to filing, the employee worked for at least one year with the organization and will enter the United States to render those same services. Such services are executive or managerial in nature.

Newer and Better Batteries

There may be a technological breakthrough soon that will enable the use of renewable energy to fuel the demands of power grids throughout the world. As the linked article notes the problem with renewable energy sources, like sunlight and wind, is a lack of continuous energy flow. Sunlight is not available 24 hours a day and it is not always windy. Storage of energy has been problematic because the batteries needed have been too expensive and their useable lifetime too short.

An Australian organization known as the Commonwealth Scientific and Industrial Research Organization (CSIRO) may be getting us closer to overcoming the obstacles facing renewable energy with what is dubbed as a hybrid battery. So called Smart Storage battery technology may be the sought after solution. The hybrid battery would combine a standard lead-acid battery with an asymmetric supercapacitor electrode which could rapidly absorb and release charges. This in turn would allow for a steady release of power as needed by power supply systems. Performance increase is estimated to be 50 per cent greater with respect to the charge and discharge of power. There is also a predicted three fold increase in lifetime for the new batteries as compared to the older lead-acid versions. Another positive effect would be environmentally favorable recycling advantages expected from the new technology.

For more information about battery innovations see the linked article in Technology Review which features a report titled Special Reports Better Batteries. There are multiple links to different types of batteries in different developmental stages.

The High Cost of Health Care

A great concern to many Americans and businesses is the high cost of health insurance. Some sort of federally sponsored universal health insurance program is all but certain within a short time after the presidential election. For millions of Americans the cost of health insurance is prohibitive and that lays the groundwork for government intervention.

FACTS ON POLICY: National Health-care Expenditures, an article appearing at the Hoover Institution's website, has some revealing information. The amount of money spent on health care increased by more than eight-fold from 1980 to 2005. In 1980 spending on health care within the United States was roughly comparable to that of other industrialized nations. By 2005 we were spending about twice the percentage of gross domestic product on health care compared to other nations.

There are underlying causes pushing up health care costs which are not apparent to many and unfortunately are not discussed by politicians primarily interested in getting elected. A separate post will focus on what the particulars are. For now it is enough to note that government insurance policies do not attack the root of the cost problem. They merely shift the burden of payment and if anything contribute to the soaring costs. Government adminstrative overhead hovers around forty percent of budget as opposed to less than half that for private charities. Profit oriented businesses also tend to be much more efficient.

The free lunch approach to government is experiencing a revival. It is politically expedient to offer now and provide for financing later. Expect the bill for federally funded health care to be a whopper. Health reform is clearly needed and demanded by voters. But reforms should address causes for the health crisis.

What is the Harmonized Tariff System?

The Harmonized Tariff System is a coding system used by both exporters and importers to assign a number to a particular product. The assigned numbers help classify products so that applicable tariffs can be assessed. In addition exporters of products from the United States need the appropriate Schedule B number as well as the Harmonized System number for necessary paperwork including shipping documents like the Shipper’s Export Declaration and Certificates of Origin.

The Schedule B search engine can be accessed here.

Green Certifications

Green Certification and Ecolabeling, a webpage of Business.gov, has information helpful to companies wanting to expand their customer base by appealing to consumers whose ecological concerns influence their purchasing choices. At the linked page you will find links to third party organizations offering certifications enabling companies to "green label" their products.

Some certifications are international and some listed are from U.S. organizations. American certifications encompass a variety of products which include both argicultural and maufactured products. The United States government offers certifications for energy efficient products and for organically grown produce.

The Adverse Impact of Poor Writing on Business

An online course by T. M. Georges titled How Much Does Foggy Writing Really Cost? discusses problems resulting from ineffective written communication. Costs associated with poor writing include time wasted by both writers and readers. Employees lacking an ability to express themselves are likely to spend more time composing reports, memos and other forms of written communication. Their writing is harder to read and more likely to be a source of confusion and mistakes. Resulting secondary problems are as many and varied as business itself.

Bottom lines are more dependent than ever on information. Decisions you make are limited by available information. What do you need to know to best allocate resources, or determine optimal marketing strategies? What trends are important and are you getting all you need to know about changes affecting your business?

Writing is both a skill and an aptitude. Capabilities can be enhanced but improvement comes with time and effort. Fortunately increasing information comes with increasing access to those best able to write about it. Making writing less problematic for business is our business goal.