Fresh Inc. - The Inc.com Weblog

The opinions of individual Fresh Inc. contributors don't necessarily reflect the editorial position of Inc. magazine as a whole.

June 10, 2004

When New Stadiums Come to Town...

In New York City, where Inc. is located, the city is considering adding two new stadiums: a new Brooklyn home court for the New Jersey Nets and a state-of-the-art sports stadium on the west side of Manhattan that would serve as both home to the New York Jets and the crown jewel of New York's 2012 Olympic bid. Estimated price tag for taxpayers: somewhere between $600 million and $1 billion. Local politicians and businesses love the idea. Residents hate it.

When your hometown decides to spend your money on building you a new sports stadium, is it a boon for your business? Or is that the time to move out?

There are about a dozen cities that are considering funding new sports stadiums to either lure new franchises or pacify existing tenants, a list that includes Miami, Newark, Dallas, D.C. and even New York City.

The days are largely gone where teams finance their own construction, so that means shelling out by taxpayers. Mayors and team owners crow from their soapboxes that investing tax dollars in sports stadiums will give a healthy boost to the local economy – that it will mean oodles of new jobs.

But what kind of jobs? Many economists have gone on record to say that new stadiums actually wreak havoc with existing businesses and replace stable neighborhood employers with seasonal minimum wage service jobs. Seems like a poor return on a billion dollar investment to me.

How do you think a new stadium in your hometown would affect your bottom line?

Posted by Darren Dahl at 03:36 PM | Add Comment

June 09, 2004

Mourning in America: Father of the Era of Inc.

The television folks are taking their typically subtle approach [free registration to Philadelphia Inquirer required] to the passing of Ronald Wilson Reagan, allowing for personal reflection upon what the controversial 40th President meant to the United States. A citizenry steeped in examining the human strengths and weaknesses of the men who lead their nation from the Oval Office needs the complexities that only round-the-clock TV can provide, so in these quiet moments, let us ponder Dutch's legacy and ask if these words ring true today.

"We have every right to dream heroic dreams. Those who say that we are in a time when there are no heroes just don't know where to look...There are entrepreneurs with faith in themselves and faith in an idea who create new jobs, new wealth and opportunity."
--From Ronald Reagan's Inaugural Address, January 20, 1981

Reagan came into office on a wave of optimism and a simple platform -- shrink government, cut taxes and enough with the containment of the Commies already. Although not an intellect, Reagan had grand ideas and an unwavering belief that America was the "shining light on a hill," destined to win the Cold War and spread capitalism around the globe. If Shakespeare is to be believed, and all the world is indeed a stage, the former B-movie actor rose to Olivier-esque heights when he performing for a receptive audience (including an often overlooked character named "Gorby". Reagan appealed to many, alienated his fair share and left many of us somewhere in the middle during his two terms as Gipper-in-Chief.

Reagan came of Presidential age in what I like to call, the "Era of Inc." -- trademark pending -- when mentioning entrepreneurship in an inaugural address wasn't solely to show off a fancy vocabulary. The two healthiest American economies happened during "Era of Inc." under beloved and beloathed two-termers Presidents Reagan and Clinton (and it will be interesting when Fox News doesn't fawn over Clinton to the same degree when he passes on, but hey, they just report, you decide. For now though, it's Dutch's day, we'll save Bubba for another time).

I wonder, though, Did Reagan have anything to do with the "Era of Inc.?" Do Presidents influence and spark entrepreneurship?

Perhaps it's because he got the federal government off the backs of business. Although one of the great fallacies of Reagan's years in office was his penchant for advocating small government while running up the deficit to heights heretofore unseen. Unlike in small businesses, government deficit spending is necessary at times, but that's why it's interesting that he is revered by so many entrepreneurs who would never run up bills that big that eventually come due. Just ask George Bush Sr. Perhaps it is because of the 40th president's held belief in deregulation -- although that isn't a guarantee of an equal entrepreneurial playing field. Sometimes rules and regulations make it easier for the little guy; sometimes they don't. It has more to do with seizing an opportunity within a particular industry, no? And, let's not forget: less governmental oversight attracts another kind of "entrepreneur." For every Apple home computer there's an S&L; crisis.

I think Reagan's greatest entrepreneurial strength was as a salesman, and his product was the good ole' U.S. of A. He was known as the "Great Communicator," but I think that's too benign and squishy. Maybe the "Great Salesman" isn't dignified enough for a POTUS, but the only people hung up on communicating are in couples therapy. Every business owner knows that sales are essential and Reagan sold the idea of his America back to the country. And millions bought into it. It wasn't everybody's America, but until oxygen becomes a commodity, not everyone is going to buy the same things, but if they buy more of what you're selling, then you win a whopping 1,014 electoral votes in two presidential contests.

Gorbachev certainly bought enough of what Dutch was selling, and together, the Iron Curtain was relegated to an I Love the '80's segment. Salesmanship. It's the essence of capitalism -- provided the unlimited military checkbook is factored out, which is to say the soul of Ronald Reagan.

Regardless of what the TV people say, it's fair to debate President Reagan's successes (invigorating America, booming economy, ending the Cold War, bolstering the beleaguered jelly bean market, moving a more conservative GOP into the mainstream) failures (huge deficits, cutting social services, ignoring AIDS, Iran-Contra, moving a more conservative GOP into the mainstream), and whether he's the "Father of the Era of Inc." -- trademark pending -- even while he lies in state.

Posted by Patrick Sauer at 12:03 PM | 1 Comment

What Would You Do If...

There's a great Luther Vandross song, "Love the one you're with," and often coworkers do. Many companies have policies against office dating, but a lot of them don't (and often even with the policies, sometimes employees date anyway). If you found out that two of your employees were dating, and you didn't have a written policy in place, how would you handle the situation? Would it make a difference to you if one managed the other or if they worked in the same department? If there was a messy breakup, how would you handle that?

Posted by Bobbie Gossage at 11:42 AM | 2 Comments

June 08, 2004

How Rude! Bully Bosses

Each week, Inc. staff writer Nadine Heintz will help you tackle office etiquette problems both big and small.

Dear Nadine,

I used to work for a manager as an architect in a design firm. When the manager perceived that I (or any other female in the office) had done something he viewed was wrong, he would immediately turn red-faced and start screaming. He also called female employees into a conference to discuss our work and usually berated us for our incompetence. Despite our complaints to the owner, nothing was done to stop the manager's abuse. I was too insecure to threaten a law suit. What do you think I should have done to get the manager to stop abusing the women, besides quit? (Eventually most of the women did quit.)

Angry Architect

Dear AA,

Unfortunately, being a jerk isn't against the law. (If it was, half the country would be in jail.) Yelling only becomes illegal when it involves slurs against gender, race, relgion, and the like. In other words, you may not have had grounds for a lawsuit even if you had worked up the gumption to threaten one. That said, abusive managers spell trouble for business: yelling often leads to increased turnover and a higher incidence of stress-related illnesses among employees.

Luckily, there are a few things beaten-down staffers can do. The first step would be to confront the boss directly. Don't stoop to his level and get overly emotional. When he yells at you, calmly ask him to stop and speak to you in a more respectable tone. In your case, you were probably too intimidated to approach the bully. I don't blame you, given his short fuse. Going over his head to the company owner was the next logical step. It's a pity he didn't take your complaints to heart. (My guess is that bully boss is a real workhorse, so the owner's willing to overlook his tyrannical management style as long as sales are solid.) Next time, try submitting written complaints to human resources, and encourage other berated co-workers to do the same. After all, a mounting pile of angry letters is harder to ignore than verbal complaints. The higher-ups might eventually get the hint and fire the jerk, or, at least, give him a good talking to.

In the end, you made a good choice. Sometimes quitting is the only way to free yourself from a bad relationship with your boss. Look at it as a learning experience, and take some prophylactic measures to make sure you don't get involved in another abusive situation. The next time you're job hunting, request to have an interview with the manager who you'll be reporting to. That's the upside to having survived one bully boss: now you know to look for.

Nadine

Have a dilemma for Nadine? Send her an e-mail and check back here Tuesdays for the answer.

Posted by Nadine Heintz at 12:20 PM | 3 Comments

June 07, 2004

Making Money V. Doing Good

Is it okay to be profitable at the expense of being socially responsible? Shoe maker Birkenstock has chosen good over money and Michael Lewis takes the company to task for it in this week's New York Times Magazine.

Social awareness is an issue that weighs on the minds of many corporate executives these days as the pressure for companies to look good in the public eye looms larger than ever. But small businesses, Lewis argues (Free registration to NYTimes.com required) have little reason to think about giving back to the community: they should focus on growth and when they get big, then they can think about giving back.

This issue has no easy answers. But is Birkenstock doing the right thing, while Lewis, the good capitalist that he is, blinded by the gleaming light of cash? Or is it Birkenstock in the wrong, and the one that should get its priorities straight by thinking a bit harder about the bottom line?

Posted by Laura Rich at 03:06 PM | Add Comment

June 04, 2004

Leaving It All Behind

Can you get away from it all? Well, according to a new survey by American Express OPEN Small Business Network, a lot of small business owners would like to think so. I say bon voyage and good luck.

The speed of information and the need to stay in the know makes getting away almost impossible. It's become obligatory to check your email every 8 seconds. Do you realize I checked three different accounts twice each while writing these first two paragraphs? Make that three times each. That doesn't even mention the fact that cellphones, Blackberrys, Wi-Fi, etc. let the office follow you around everywhere.

But what makes it so hard to just let go? Is it a lack of trust in employees to do the job? It's certainly in the entrepreneurial spirit to simply do things yourself.

Vacation time is precious, so why do we ruin it with worry? We've all dreamed of the five weeks of mandatory paid vacation required in many European countries. But, honestly, could you manage that much time away from work?

Fact is, it's essential to take off. Otherwise, productivity suffers. Health suffers. Your employees suffer. But what's the best way to manage the office when you're away and, at the same time, actually get away?

Posted by Matt Quinn at 03:54 PM | 1 Comment

June 02, 2004

Planning for Life After Entrepreneurship

This month's issue of Money features a look at best places to retire. Before you say you can't imagine quitting, consider that next month's issue of Inc. highlights four of you who have successfully sold your businesses and moved on to a committed leisure lifestyle.

As you contemplate life after entrepreneurship, check out the special features in the package on CNN/Money. One great suggestion: think about buying a home now that you'll move into when you're ready to retire. Why? "There's a concern that the prices of properties most desired by boomers may get of reach," says David Hehman, CEO of EscapeHomes.com, a San Francisco realty firm specializing in second homes.

Another feature will walk you through the process of determining the ideal place to retire on where to locate, with a list of questions to ask yourself, such as the types of neighbors you want; your proximity to travel options; the availability of the kind of work you might want to do; and, of course, medical care and safety.

What is your experience with planning for retirement? Aside from the common practice of saving for such an event, have you begun planning and preparations for the retirement lifestyle you'd like to lead?

Posted by Laura Rich at 03:31 PM | Add Comment

What Would You Do If...

A few years back I spoke with a business owner who had a problem. His star, high-performing employee had a negative attitude that was damaging morale and performance among the rest of the staff. But he didn't want to fire his star employee.
How would you handle it if you were the business owner in this scenario?

Posted by Bobbie Gossage at 09:26 AM | 10 Comments

June 01, 2004

How Rude!

Each week, Inc. staff writer Nadine Heintz will help you tackle office etiquette problems both big and small.

Q. I am the founder and CEO of a small commercial general contracting and land development firm. Because we are a small company, our environment tends to be less structured than most (family like). But it has caused us to lose a few employees who needed that structure. These losses have caused us to rethink our corporate culture and seems to be pushing us toward a highly structured environment. This is not my vision for this company. Why can not employees handle the idea that a relaxed environment requires greater discipline than the alternative of manuals and structured working programs? What can be done to secure this environment for those who thrive in a self-disciplined work environment and thwart off the typical pitfalls that have ranged from habitual tardiness to a sense of entitlement in a few employees?

A. Don't beat yourself up too much. Figuring out how to create an unstructured yet productive office environment is a big challenge for most company founders. I even wrote an article on the topic, called Why Can't We Be Friends? for Inc.'s January, 2004 issue. The good news is that you can introduce more rules and structure into your office without sacrificing your vision for a family-like company. One of the business owners I wrote about in the story had a similar experience to yours: a relaxed environment worked well during his company's start-up phase, but got out of control as the business grew. You might want to take a page from his book: he hired a COO to establish some more structure, while maintaining a friendly vibe. The COO now handles all HR issues like hiring, firing, and employee reviews, freeing up the founder to focus on his company's strategy. While they still have, say, office pizza parties to celebrate milestones, gone are the days when the whole office, including the CEO, had dinner and drinks together a few nights a week.

If you can't afford to hire someone to perform HR functions or delegate those duties to someone else, there are still things you can do on your own. First off, you may want to distance yourself a bit from your employees. Not many employees can handle being pals with the boss, so don't be too quick to make friends with them. The friendship will only work if both of you are able to separate your personal relationship from your professional one, which is something easier said than done. That doesn't mean you can't chat with your staff about their weekend plans or look at their baby pictures. But listening to the nitty-gritty details of say, their marital problems, blurs the line between boss and pal. That, in turn, may foster a sense of entitlement. Also, semi-annual employee reviews might be a good way to remind staffers about getting in on time and what's expected of them. When you're hiring employees, you may want to get a sense of what kind of environment they've worked in before, and whether or not they're self-disciplined. If you hire someone who's not a good fit, it will probably become clear pretty quickly. Give them a chance to adjust, but don't wait so long that they start poisoning the rest of the staff.

Above all, keep in mind that it's not easy to change an office environment, so don't expect a complete turnaround in just one week. Unfortunately, being the boss isn't always fun. But, in the long run, your employees will probably appreciate an environment that's a little more structured, but still family-like. They'll be able to concentrate more on work and less on office drama. And you'll be able to focus on your top priority: the success of the company.

Have a dilemma for Nadine? Send her an e-mail and check back here Tuesdays for the answer.

Posted by Nadine Heintz at 01:31 PM | 2 Comments

Pushing Customer Loyalty

The nation's hotel chains are getting a bit pushy about their customer-loyalty programs these days. In an effort to promote their frequent-guest programs -- and populate their sparse customer databases with critical information -- the chains are making aggressive efforts to get business travelers to sign up. Some hotel chains are even rolling up such necessary business travel perks as free phone calls and Internet access into their loyalty program benefits to force business travelers to cough up the data.

According to chain representatives, their main objective for forcing travelers to sign on is to better serve their customers. But, not so suprisingly, they're also using the detailed data to better target their marketing campaigns to reel in more business travelers.

Posted by Carole Matthews at 09:26 AM | Add Comment