The James Dicks Blog

Today’s world is extremely challenging. We are fighting wars on multiple fronts and the need for more troops is becoming an ever-growing reality. National Guard and Reserve forces are being used more and more to not only fill in the gaps, but also, in many cases, to become the primary source of personnel in the field. This leaves American business with less manpower to get the job done in an extremely weak economy. Both sides have important issues to confront and many times its difficult to deal with them equitably.

There’s an organization that I’d like to introduce you to whose mission it is to support American business’ challenge of coping with the current mission of our National Guard and Reserve forces. It’s called the Employer Support for the Guard and Reserve (ESGR) and as their mission statement says, they are charged with developing and promoting “employer support for Guard and Reserve service by advocating relevant initiatives, recognizing outstanding support, increasing awareness of applicable laws, and resolving conflict between employers and service members.” In other words, ESGR helps American business to understand how to best support these gallant military members while on active duty while making sure they understand the laws protecting their jobs once they return.

ESGR is a Department of Defense organization and is a staff group within the Office of the Assistant Secretary of Defense for Reserve Affairs, which is in itself a part of the Office of the Secretary of Defense. In our current economic and wartime environment, the Department of Defense recognizes that civilian employers play a critical role in the defense of the nation by complying with existing employment laws protecting the rights of workers who serve in the Reserve component.

ESGR does this through the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which is a federal law that is intended to ensure that persons who serve in the Guard or Reserve are not deprived in their civilian careers because of their service and are quickly reemployed in their civilian jobs upon their return from duty without discrimination. If there is a problem or dispute, ESGR is there to help at the business or service member’s request. ESGR has trained ombudsmen who can help negotiate a solution between the parties concerned.

Many business have voluntarily signed ESGR Statements of Support to help ESGR in promoting understanding of the Guard and Reserve members who work for these companies, to develop human resources policies that support employer participation in Guard and Reserve programs, and to voluntarily comply with USERRA which enforces the rights of those called to active duty in time of war or emergency.

It’s tough for everyone – the military service member, the family that is left behind when their loved ones are deployed but it’s also tough for a business that must keep producing with less manpower. ESGR is there to help.
ESGR was established in 1972 and today, operates through a network of thousands of volunteers throughout the United States and Guam, Puerto Rico and the Virgin Islands. If your business would like more information about ESGR, call 800-336-4590 or email USERRA@osd.mil.

Seems like this time last year all we heard about from our neighbors and the evening news was the problems associated with the U.S. housing market and how would we ever be able to cope. Well, the mortgage/housing talk seems to have died down but the situation still exists and the question of how we might cope with this problem is still very real.

Sure, foreclosures seemed to have relaxed a bit but there’s probably a very good reason for that – stalling tactics by homeowners. When the economy crumbed, people started losing their jobs, and the payments stopped on homes around the nation and the population had to think fast. Many decided the best way to temporarily weather the mortgage storm was to stall as long as possible. So, although they were unaccustomed to doing so, many Americans “lawyered up” and put their faith in legal stalling tactics. Up to now it’s worked like a charm. It’s helped people remain in their homes while they desperately search for employment to support their families. It’s also helped the government economic figures. But don’t let the fewer number of foreclosures around the nation fool you. They are not gone; they’ve just been postponed for a few months.

Unemployment continues to rise or remain at constant levels in many states and that just isn’t helping those in need of finding ways to start paying for their homes again. In Nevada, for instance, unemployment hit 14 percent. Those figures have put Nevada 4.3 percentage points above the national unemployment rate of 9.7 percent, and 0.4 point above Michigan’s 13.6 percent rate. By the way, Nevada also leads the country in foreclosures, bankruptcy filings and credit card delinquency. This is just one state’s economic situation; you can find basically the same kind of miserable numbers in Michigan, California and Florida.

There are tons of people out there grabbing up foreclosure deals like mad but the sales are rather slow for a number of reasons. Few people have the money, the credit rating or the desire to be purchasing their next dream home. Banks aren’t lending either and that’s a problem. There is an excess of worry and concern about where families will be in 6 months or a year. Empty homes are fostering vandalism and neighborhoods that were thriving a couple years ago are now quickly falling into ruin and even the homes that are occupied are losing value almost daily.

The government recently reported that new home sales in the United States plunged 33 percent in April to a seasonally adjusted annual rate of 300,000 units. And it was also released that more than half of all homeowners with modified mortgages fell at least two months behind in their payments just a year after the adjustment was made.

In recent months, the possibility of foreclosures continued to fester and that might be a good indication why the media hasn’t reported on it as effectively as they once did. Maybe they’re bored with this persistent problem. Glancing over the headlines on a major news reporting source this morning shows stories about a Sarah Palin public appearance, the problems with the new iPhone, a union that is apparently angry at the governor of Arizona, and the one year anniversary of the deaths of Michael Jackson and Farrah Fawcett. Not one story about the current problems with the banking industry and the housing sector.

So, it’s on to the daily accounts of the Gulf of Mexico BP oil spill (at least for now), but be advised that the housing predicament still exists and is about to grab the American economy by the throat (again). And I’m just referring to the residential side of the Real Estate market; I haven’t even addressed the commercial side yet.

So, where did the mortgage problem go? It didn’t go anywhere, my friend. As a matter of fact just look next door or across the street and I’m sure you’ll find it. Wonder if your representative in Washington sees the same thing in their neighborhood? Maybe it’s time to write them and find out.

You’ve heard the old saying, “it’s not what you make; it’s what you keep.” That has never been truer than in today’s very weak economic situation. Everyone has had to change their lifestyle – no matter how much money they are making. I know ”millionaires” who have to change their personal financial habits. It’s tough al over and families have redirected their priorities because of the money question.

So, what’s the answer? One phrase, “spend less – save more.” It’s time to design a very positive approach to actually changing your habits and develop individual goals. This kind of action will better secure your success in obtaining meaningful returns through an actual meaningful reorganization of your financial life. A recent government report showed that Americans cut their spending and saved more for a sixth straight month as more and more people were either worried about finding a job or keeping a job.

Goal setting is another top priority. Determine specific and attainable goals, short and long term, and make sure you write them down. Physically writing them down gives them power. The act of writing and visualizing your goals makes it much more likely that you will actually achieve them.

You must also understand your current financial situation to know where to make your changes. Add up your assets and your liabilities. Find out how much you owe on your home, your cars and your credit cards and conclude how best to shape and maybe cut those liabilities down a bit during the year ahead. It’s always a good idea to get rid of debt, especially high interest debt. You might also consider establishing new insurance needs. Examine the validity of your current life, disability, home, health or auto policies and decide whether changes are required. If you’re like the rest of us, you probably haven’t looked at your policies in quite some time.

Again, the best way to establish a solid financial plan is to save, save, save. The general rule is to put away 5 percent to 10 percent of your take-home pay, if you can. Remember to pay yourself first and don’t wait for what’s left over after you pay your bills. If that’s your strategy, you’ll find it difficult to save anything. You should also be sure to set aside your savings in an interest-bearing account, such as a money market account, or in a tax-deferred account like an individual retirement plan (IRA). If your company offers a 401(k) plan, start contributing as soon as you possibly can, especially if the company matches your contributions. Once you’ve finished the basics, then you can start examining your portfolio and other investment opportunities.

Something else to pay close attention to, especially during this time of the year, is your tax strategy. When you receive your annual W-2s, make sure your monthly tax payments are being deducted at the proper level. The trick is to come as close to breaking even as possible on your federal tax returns. You should keep and invest your money throughout the year rather than allow the government to use your hard-earned cash.

Remember, it doesn’t matter how old or young you are, or how much money you’re making; now is the time to start improving your financial situation. There are a lot of important events in our lives that rely on our financial health – education, weddings, vacations, security, and retirement just to name a few. These times are tough, there’s no doubt about it, but we all must start to rebuild what we have lost and set goals to get back to where we want to be. It’s important and the sooner you start the sooner things will start to improve for you and your family.

The ability to conduct business efficiently in your specific area of expertise is certain to be one of the most critical aspects of your daily routine. In these difficult economic times, the unconditional professional skills of making things happen in your business will set you apart from the rest of the competition. Most times it’s your staff that puts you over the top; they are the ones that make things operate effortlessly and profitably.

When you think about it, you’ve spent quite a lot of time and money training your staff to accomplish the tasks that have, up to this point, helped to craft a successful business. But today’s environment is forcing business to stockpile cash and other assets, and the fastest and most efficient method of increasing your internal cash flow is by cutting the payroll; or is it? You won’t get an argument that it might be the fastest method but it may not be the most cost effective approach in the long run. While things may be volatile today, bad situations always have a way of improving.

Your staff is not only a trusted group internally but your employees have, no doubt, created positive and productive relationships with your customer base as well. They know your product better than anyone and they also know your customer. That is a very important combination because positive customer relations are more likely to translate into future sales.

While many businesses believe that the customer base is the most important asset of any business they couldn’t be more wrong. Without a highly skilled group of employees there would be no customer base. Each individual has their strong points; most probably have more than one to offer. Develop an understanding of everyone’s string points and assign the right person for the right job. Your staff comes in everyday and deals positively with your customers; they keep the books on track, handle the new orders or answer the phones. They do hundreds of other things that can’t even be quantified; they do their jobs so well that you never seem to have a problem. Things run like clockwork because your staff holds it all together.

Don’t get me wrong, there are times when things haven’t run as smoothly as I’d like but that’s why management exists. Sometimes management has a “bad hire” and that can cause quite a few problems; especially to a small business. Those issues must be dealt with quickly but you should know who your “core” employees are; you know who can be counted on to come in at night or on a weekend, if needed, without complaint. You know who is always there to help bolster his or her fellow employees when they have a tough day. You know who the sales person is that never makes excuses but keeps the bottom line solvent. You can’t lose these people; they have a vast amount of corporate memory and that helps to run your business. But more importantly they have a work ethic that is difficult to find these days. You know who is loyal to the company and you also know who is only there to collect a pay check. There is a big difference.

As I said earlier, the economic slump we currently find ourselves in will pass; they always do. When it does, you will want to be in a position to hit the ground running. So, if at all possible, try saving the cash flow by cutting programs before you are forced to cut people. A well-qualified and loyal group of employees is the most valuable asset of any business. It’s the people who control a business – not the other way around. If you have a well-trained and professional staff you must try to hold on to them through the use of any retention programs you have at your disposal. During the challenging times, a feeling of sincere camaraderie will help your business escape the next tight spot the company encounters. Your people are your most important asset.

Business Articles

As a business owner, I can tell you from firsthand experience that this year’s recession has created some very challenging experiences. In order to sustain what you have, business today must be extremely creative. This productive imagination will feel, at times, like it’s the only thing standing between you and complete corporate annihilation. But that’s ok; I’m sure many of you know exactly what I’m talking about. And this isn’t just a phenomenon that small business is experiencing; many of the world’s largest companies are feeling the same squeeze on a daily basis.

As exciting as this very historical economic year has been, in order to get through it successfully, you can’t wait for something to happen. You must do something productive but since none of us have ever experienced anything that compares with the past 18 months, there is nothing for us to imitate to get back on the right side of economic well-being. Because of this fact, I consider all of us pioneers. We are all blazing a trail through this economic downturn with the ultimate goal of survival. So, I thought I’d share a few thoughts with the rest of you in the global business community to see if my observations can help you blaze your own trail to prosperity.

Because of the double digit unemployment rate, consumer spending has continued to drop sharply. We have seen a customer base shrivel up due to the high unemployment rate and the fear of letting go of the cash they currently have in their bank accounts. Without assurance that the current recession is behind them, any potential customer is unlikely to make a purchase except what they consider to be vital to their survival. So, it is imperative for you to find new solutions for your customer to overcome the current problems they are facing. The economy has changed and so have the needs and the habits of the consumer. Develop new, innovative methods of selling your product. That might be nothing more than to have your sales staff make extra contact with potential buyers by making more cold calls. Do your research.

The fact still remains; cash is king and your need for capital has never been more important. During the best of times, when things are easier, we sometimes forget that our businesses must earn a return on capital that exceeds our capital’s cost. Today, banks are reticent to loan any cash and assets have lost much of their value. That’s why it’s ultimately important during the “good times” to stash as much capital as possible….it is like the proverbial saving for a rainy day. In the meantime, develop a plan of raising as much capital as possible, while determining the best places to use these expenditures to enhance your growth potential. There probably will be corporate cutbacks, layoffs, salary cuts, and a drastic decrease in inventory. Make a clear cut determination of how you will locate and use your capital to the benefit of the company.

I always say that a company is nothing more than a group of talented people who are all working for the same ultimate goal. The key words here are “talented people” and in today’s business community, there are so many highly-qualified people who find themselves without employment while others have become very disenchanted with their current situation(s). It’s in times like these when you can put together a “dream team” so when economy does start to turn, you’re ready.

And even though things aren’t perfect today, you need to keep investing in the very core of how your company operates. Once this recession is over (and many say it’s already starting to make that turn) your company must already be prepared to jump into the fray to continue growing the business. So even during the tough times, you cannot stop funding the critical priorities that made your company move forward and excel in the past; areas like customer service, training or business development need to continue expanding. It’s amazing how many companies just stop funding these critical areas and allow everything to come to a screeching halt while waiting for better times. There has never been a better time than now to insure that your company has the best possible footing to survive the next wave of economic movement, whether positive or negative.

I know that every business has its own story and some are doing better than others in today’s economic environment. But there are situations that must be sustained in order to keep a business from sinking into the quagmire of today’s miserable economy. My primary advice comes from the beginning of this piece; in order to survive develop a highly creative nature that will allow you and your team to consider every possible scenario. Do this and your survival rate will greatly increase.