The James Dicks Blog

The past few years have been tough economically for individuals and for business; even people who never talk about the economy are discussing it with their friends and family. Why? Because today’s weak economy is affecting them very negatively and directly, probably for the first times in their lives. Many of us can probably remember our parents or grandparents talking about what they experienced during the Great Depression of the 1930s or perhaps you learned about it in school. But hard economic times have a nasty way of not only taking away our financial well-being but also our sense of self-worth.

I don’t want to place any needless pressure on you, goodness knows you probably have enough to deal with but the economy’s health lies directly in your path. It’s consumer spending that has pushed our economy forward in the past and I don’t see how the dynamics of this economic effect has changed today. Some economists believe that up to 70 percent of our economic strength is based on how much the American consumer spends at the local mall. I know that’s difficult to believe but facts are facts. On top of that, consumer spending has been creeping higher as a segment of the total economy sporadically over the past few decades through the assistance by easy credit. Those days are gone but the need for consumer spending remains. That’s where we are today.

If Americans spend – business grows. It’s that simple. The problem is consumer confidence has been so weak because millions are out of work, prices at the pump and grocery stores are eating away at disposable income, the U.S. continues to struggle with debt, and the banks aren’t lending. I know I’m preaching to the choir but what’s it going to take to start moving forward again? Sadly, there are few options today.

Frankly, about the only thing that has supported our economy recently has been unemployment benefits, which places us in a very miserable state. A recent report from the Congressional Budget Office revealed that every dollar that is spent from unemployment benefits puts $1.90 back into the economy. But now Congress is considering cutting that back, as well, which can only exacerbate the situation. Makes no sense to me.

Cities and states are going through very difficult times in part because the crumbling housing market has wiped out a good portion of the property tax dollars they had counted on for support before the housing market imploded. Today, thousands of houses stand empty and do not generate the necessary dollars these government institutions had come to rely upon over the years. So, even the municipal and state governments are being forced to shrink their employment rolls and services which has added more pain to an already agonizing situation.

Other large industrialized nations don’t depend quite so much on consumer spending but rather on government subsidies to keep running. If things don’t change soon, that just may be what happens in the United States, which will no doubt lead to higher tax rates for all of us. As an entrepreneur, I am certainly not advocating that but when you examine the total economic package we are dealing with today, there may not be another answer.

Most everyone today uses the Internet on a daily basis to the benefit of their personal lives as well as their businesses; but is “Big Brother” watching? If some powerful figures in control of major Internet sites have their way in the future it is certainly a possibility.

The Internet has never been totally anonymous based on the IP address read by the sites you visit. But the ways in which you send emails to friends and associates or conduct business (online banking, bill pay, etc.) allows for some anonymity today to protect personal security and, as some advocate, freedom of speech.

Randi Zuckerburg, marketing director of Facebook (and sister of Facebook’s founder Mark Zuckerburg) recently took part in a panel discussion on this topic and said she believes that Internet users should not be allowed to hide their identities when using the Internet. She told the panel, “I think anonymity on the Internet has to go away. I think people hide behind anonymity and they feel like they can say whatever they want behind closed doors.”

Remember when you signed up for your first email account, you had to come up with a name you would use. Some people actually used their “real” names without thinking twice about it but, I think you’ll admit, most people developed some type of anonymous Internet pseudonyms (something like PapaBear44@InternetSite.com) to hide their personal identities to everyone but friends and families.

The former head of Google, Eric Schmidt, also believes Internet anonymity is a real threat and called it a “dangerous” problem and, in his view, something the government will eventually be forced to regulate. As a matter of fact, Google was criticized recently for a policy that insists that individuals use their “real names” on their new Google+ social media website. There is evidence that a number of Google+ users, who used a traditional anonymous Internet name rather than their “real name,” not only had their Google+ account cancelled, but all associated Google accounts closed for failure to maintain the policy of using actual names. Google apparently is taking this very seriously.

Those who advocate full disclosure on the Internet are insisting that more online abuses and illegal activities are definitely possible because people are currently able to conceal their identities behind these non-descriptive Internet monikers. Proponents of a full disclosure policy on the Internet believe that anonymity allows criminals and sexual predators to more easily stalk their potential victims. By hiding their identities they can easily and “innocently” gain access to chat groups that protect the identities of their members thus making it easier for criminals to target their victims over the Internet.

Privacy is an issue that we tend to guard with all of our might. So many personal records today (banking, medical, personnel) are transmitted over the Internet and, I believe, should be guarded and genuinely protected. Law enforcement and government agencies also must maintain a semblance of privacy to keep information away from the “bad guys” and secure local, state and national security.

Keep this in mind. If Internet anonymity is critical to you, there are ways to protect yourself. You might want to consider disabling the “cookies” settings on your computer. Cookies are text that is sent to the browser about the Internet sites you visit. This information is stored by the server and sent back to the site each time you enter the site. Cookies also contain important information like passwords and login information that are considered a privacy risk by most Internet users. There are a number of web browsers that will automatically delete all cookies when you close your browser. Might be a good idea to find one.

I am certain that Internet anonymity will be a topic of discussion for many years based on the massive growth of social and business Internet sites like Facebook, Google+, and LinkedIn, which are specifically designed for the exchange of information; sometimes very personal information. Consider this, if you were walking through a “dangerous” part of town you would probably remain very aware of your surroundings. The same applies to the Internet; just be careful of the information you provide on the Internet to maintain as much personal security and privacy as possible.

But it’s more than that; although the idea of Internet anonymity may protect us from possible personal hazards, this idea will also diminish our personal freedoms guaranteed by our country’s most cherished documents (the Declaration of Independence and the Constitution) which have formed the values of the country we live in today. We are a country that prides itself on hundreds of years of freedom, among them freedom of speech. It’s a very hot topic to keep your eye on in the months and years ahead.

Tough times are here and tougher times may be coming. If you find yourself without a job during the current economic downturn, you must become as confident as you feel comfortable with (and maybe more than that) if you are ever going to gain the attention of a possible future employer.

Look, just going to job fairs and sending your resume out over Internet probably isn’t going to be enough. You may have already discovered that hasn’t worked for you. So, what’s next?

I have spent many years developing a brand for myself and that has helped me develop my business and myself. There are a variety of ways to do this – some easy and some very difficult and expensive. You should start by creating a personal “commercial” that describes you and your skill sets. By commercial, I mean write a rundown of who you are, what you do, and how you can help any potential employer. It’s that easy but be brief and only state facts and specifics.

For instance, if you are a career sales professional be very specific about past employment and how you helped previous companies attain success. Tell them about how you increased sales 52 percent in your first year on the job. Mention how many individuals you supervised and how you were a mentor to the sales staff, which helped them develop their skills, thus adding to the company’s bottom line three years in a row. That’s about 30 seconds. And if you present yourself confidently, they’ll have no choice but listen to you.

Now that you’ve developed a personal brand, start building up your networking opportunities. Think about all the people you already know, do some homework, and find networking opportunities through business organizations or in your city’s chamber of commerce. You may even want to expand your job search to areas outside your town or your state. I know that leaving your current location may be a hardship, but it’s also important to find your next professional position. These are different times and you may have to do different things to find what you’re looking for. I always tell people that if you always do what you’ve always done, you’ll always get what you always got. Believe me, it’s true. I’ve done it more times than I can count.

Don’t be shy about asking business associates and friends for personal recommendations for your online social networking sites or letters that you can use for reference purposes. The more people that know you and your current situation, the faster your current situation will change. Don’t be afraid to be bold. Ask…all they can say is no but most people will be glad to help you.

Back up your personal branding with an accurate resume and cover letter. The importance of your personal documents cannot be understated. Many companies today will not accept “walk-ins” and solely use your resume to make their hiring decisions; that includes private industry and government agencies.

I understand that you are going through an extremely difficult time right now. Emotions are running high and it’s probably difficult to maintain a positive attitude from day-to-day. But it has never been more important to do so. Do your homework everyday and remember that your job right now is finding a job. Get up every morning and get busy locating your next position. It will come but in the end, it’s all up to you. Remember, be aggressive and be positive. Today is the day to start making yourself the top candidate. Once you do that, the next job is sure to come.

So many people today are in foreclosure around the country; the banks and the courts are really getting backed up. If you are in this situation, you might want to approach your mortgage company and see if you qualify for a Deed in Lieu (DIL) of Foreclosure to avoid the foreclosure process.

Basically, a DIL allows the homeowner to voluntarily transfer the ownership of their property to the mortgage holder in exchange for a release from the mortgage loan and payments. This is becoming a popular tactic by the banks because there are just so many foreclosures across the nation. Plus, if the mortgage holder can avoid foreclosure hearings, they save tons of money in the legal process. So, the DIL has become an alternative to foreclosure and seems to be a win-win situation for all parties.

Homeowners who might be interested in this process versus foreclosure, must qualify prior to approval. You can qualify if you:

Are ineligible to refinance or modify your current mortgage,
Are currently behind in your mortgage payments,
Owe more than the home is actually worth,
Haven’t been able to sell your home,
Are going through a hardship (like the loss of job, divorce, or medical emergency)
Can no longer afford to live in your home and are prepared to leave, since the process must be completed within 90 days of initiation).

This is, by no means, the comprehensive listing of qualifying factors for a DIL, so you’ll need to talk to your mortgage holder to see if you qualify. A DIL is less harsh than a foreclosure on your credit report too. It all depends on your mortgage holder. There have been times where a mortgage holder has reported a borrower’s mortgage paid in full following the DIL process. That’s a question you would need to ask your mortgage holder prior to processing the DIL. Regardless, the DIL is less harmful, in many ways, than a foreclosure and you can expect, at least, a “grey” mark on your credit report versus the “black” mark a foreclosure is sure to cause.

And here’s something I bet you would have never thought of; a DIL, in some cases, qualifies you to receive a relocation allowance from the mortgage holder after the process is competed. It just happened to someone I know. There are some mortgage companies that are assisting homeowners after a DIL by providing them with $3,000 for relocation expenses. The homeowner can use this money to pay for moving expenses, make a deposit on a home or apartment rental, or just put it in the bank for that proverbial rainy day. All you have to do to find out if your mortgage company offers such a benefit is to ask them.

This is a program that is definitely an attractive alternative to foreclosure and troubled homeowners should immediately approach their mortgage holders to see if they qualify for this program. The one thing that hurts the homeowner is waiting too long. If you are days away from an auction where it would be easier for the bank to dispose of the liability in that manner, you’re probably out of luck. So before you get to that point, be proactive and approach your mortgage holder to find out whether or not you qualify for a deed in lieu of foreclosure. It just might be a better option for you.

In today’s volatile business and economic environment, there are tens of thousands of people who have decided (for a variety of reasons) to leave the corporate world and enter a more entrepreneurial situation. There is no one sure method of guaranteeing a profitable business, but if you lack the passion and the ability to put together a structured business plan, your odds of creating an enterprise that even has a slight chance of survival is extremely slim.

There are many key forces that can help you design and build a business that is not only profitable but will also offer your specific customer base something it can use or want. Consider your personal interests before deciding on the eventual product. For me, it was trading and teaching people the intricacies of trading various financial markets, specifically the Foreign Exchange. It was something that interested me considerably and it allowed me to develop a business that people from around the world could use to increase their quality of life by becoming successful traders.

Planning will encompass a lot of things. Creating a business plan that maps out your company’s structure, financial assets and liabilities, the values and standards that your company will embrace, as well as your vision for the future. This is by no means a comprehensive list of what to include in a business plan. Study the methods of putting a successful plan together; perhaps find others who have already done so and personalize their methods by creating an exclusive corporate direction that would work best for you and your company. Business owners who can plan for short- and long-term events and goals are also more likely to succeed. Consider how you can make a distinction between your products and services from those being offered by your competitors. An effective entrepreneur must be proactive, inquisitive, and totally dedicated to the job at hand; traits that will offer a better shot for future success.

Having said that, remember it’s your personal interests and passions that will guide you when deciding what your entrepreneurial venture will look like. Maybe you’re an expert at bookkeeping or perhaps you love to cook. As long as you are passionate about your product or service, you will have a much better chance of success than you would if you were lukewarm about your business. You have probably heard it said that if you enjoy what you do, you will never work another day in your life. If you enjoy something, you’re more likely to stick to it and put in the hours necessary to make a real attempt to build a new and successful venture. Make no mistake about it, you will have your problems and you will experience ups and downs along the way but never give up. There is nothing more rewarding than doing something you enjoy, while helping others through your unique product or service.

Let me finish as I began – planning and passion are the keys to making sure you get your entrepreneurial efforts off to a positive start. Without those two traits you may as well not even begin. So, look deeply into your personal desires, goals, and abilities and start moving forward with your plan. Small business runs the economic engine of this country; your planning and passion has never been needed more than it is today. I wish you all the best at your future success.