BALANCING HEALTHCARE, PUBLIC POLICY AND POLITICS: Which Candidates are the Real Deal -- And Which are Counterfeit?

Balancing Healthcare, Public Policy and Politics with Linda de Seife

Tuesday, May 18th was Super Tuesday 2010, and pundits of all political stripes have analyzed the results of primaries and special elections held that day. Most seem to agree that there is a rebellion growing amongst American voters.

Basically, the poll numbers discussed in previous columns haven’t changed much, and if anything, have trended more negative toward incumbents. So, here I want to discuss one race in particular that Republicans need to learn from for the fall 2010. That race is the special election in PA-12 (Pennsylvania) to replace the late John Murtha.

The situation is that the district has an overwhelming Democratic registration majority. John Murtha represented the district and “brought home the bacon” for decades. The Democratic candidate, Mark Critz, was a Murtha staffer, and is therefore well known in the district. Despite all these factors, right up to election day, most major polls had the race a dead heat. Yet, Critz went on to defeat Republican Tim Burns by an unexpectedly large 8-point margin.

Republicans were understandably disappointed, but they need to learn from this. Critz ran as pro-gun and pro-life, said he would have voted against health care reform, and is opposed to cap-and-tax. These are Republican issue positions, yet Critz was able to co-opt them. Thus the question: Who is the real deal and who just talks the talk? Will Critz go back to Washington as a Member and vote with Nancy Pelosi as his mentor did, or will he truly vote based on what he told his constituents in order to get elected?

The Republicans need to know that this is a tactic that Democrats will use in November, and they need to nip it in the bud. PA-12 showed that simply running against the national Democratic establishment doesn’t work. Candidates need to know their district and know the folks and what they’re thinking. As this column has mentioned several times, all politics is local; that hasn’t changed. The Republican positions are in tune with the majority of Americans’ views, but they need to take it district by district. PA-12 gave Democrats a blueprint for November, which is basically, if you need to run to the right to get elected, do it. At the end of the day, if they do that, they could still end up with the majority. The question then will be, will they still try to govern from the left, or will Nancy Pelosi no longer be able to control her members?

For the Republicans, they need to stop a repeat of PA-12 by challenging Democrats who attempt to outflank them. They need to challenge the voters to choose between “the real deal” and a counterfeit. In 2008, and today, Barack Obama continues to say one thing that people want to hear and to reel them in, and then do another. The American people cannot fall for this again.

So, before you vote in November think: Real deal or counterfeit?

The Center for Health Transformation (www.healthtransformation.net) has a daily “news you can use” post relating to the implementation of the health care reform law. On May 23rd, they published an article from thehill.com (http://thehill.com/blogs/on-the-money/domestic-taxes/99387-study-healthcare-law-encourages-small-businesses-to-stay-small) which reports on a study by the National Center for Policy Analysis (NCPA) showing that tax credits in the new law could negatively impact small business hiring.

The new law provides a 50% tax credit to companies with fewer than ten employees who offer health insurance and whose employees’ average annual wages are $25,000. The tax credit is reduced as more employees are added to the payroll.

Pamela Villarreal, a senior NCPA analyst says, “If a business can make a decision to substitute capital for labor – say, contract the procedure out or automate it – I believe (losing the tax credit) will play an important part in the reluctance to hire. It’s puzzling that we have this perverse incentive not to have business grow by not encouraging them to hire additional workers.”

This column will continue to provide updates on the implementation of the law and their impact. Stay tuned.

Quote of the Month: “Society is infested by persons who, seeing that the sentiments please, counterfeit the expression of them. These we call sentimentalists – talkers who mistake the description for the thing, saying for having.” – Ralph Waldo Emerson


For more information, please visit Linda's TNNWC Bio.

---

The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com
Forward/Share This Article With Colleagues And Social Media:

BALANCING HEALTHCARE, PUBLIC POLICY AND POLITICS: Which Candidates are the Real Deal -- And Which are Counterfeit?

THE NET-TECH REPORT: 10 Ways To Get Clients Now

The Net-Tech Report with Chris Kauza

With everyone focused on trying to take advantage of the down economy to take share & get new clients, here are 10 things you can do right now to move the advantage in your favor, and be more effective at building your client base:

1. Get New Business From Old:
Do you have a good relationship with your existing customers? Are you giving them good service (and do they KNOW it?)? Then you should ask them for help. Most people want to help others, especially if they appreciate the person. For each "cold call" you make, make a "warm call" to a client and "...ask for their help...".

2. Pitch a Stranger:
Sometimes, the best time to try out a new elevator pitch or Unique Selling Position, is with someone you've never met and may not meet again. Think about that person sitting next to you on the plane, asking you all of those questions - why not try your new pitch on them?

3. "Give It To Me Straight":
These days, it seems like time is even more scarce, and that no one has time for the "warm-up" to your presentation. Prepare well-honed phrases and practice them in front of a mirror. People like it if you are able to quickly and effectively get to the point. If you're communicating by email, try to present your information without having them scroll down to read it.

4. Talk About Your Failures:
...seriously! Everyone's made a mistake, now and then. It helps make you more approachable and can even build your credibility from a "been-there-done-that" perspective. It will help the person or prospect you are speaking to more easily relate to you.

5. Offer a "Loss-Leader":
Sometimes the best way to introduce a potential prospect to your company's product or services is by offering a loss-leader. This is a low-cost / low-risk entry point to your company's products or services, where you may be delivering it to them at a price point that is below your cost (hence the term "loss leader"). This is most often seen with B2B clients, but can also be effective in certain B2C relationships as well.

6. Get Sold Yourself:
Pick the most successful competitors in your area and let them sell you. Play customer and be aware of how you feel during each step. Assess what works and what doesn't. Auto-makers buy each others cars and break them down to nuts and bolts. You can do the same thing in your space.

7. Pitch an Enemy:
This might require a little more fortitude on your part, but can be very rewarding. Find the most disagreeable person you can find and give them your presentation. Let them be as nasty as they please, then analyze later if anything they said had any merit. Be totally unemotional, and don't defend anything. You may be surprised at what you learn...

8. Start an E-mail Newsletter:
This goes a long way to developing what I refer to as the "Know / Like / Trust Factor". Giving prospects useful information every week helps them get to know, start to like you and thus begin to Trust you. People buy from other people they know like and trust. Make them happy to see your name in the "from" field on the email. If they only hear from you when you want something, they'll ignore you.

9. Offer Testimonials:
Satisfied clients or customers can say things about you that you can't. It's more authentic and believable when someone else praises you than when you do it yourself. The best testimonials are video testimonials, as it gives the viewer a chance to literally "hear it straight from the person themselves", and video testimonials have more perceived credibility.

10. Ask Questions:
It sounds simple enough, but I can't emphasize enough how important and how under-used this is in business. Be Curious. When people can verbalize their needs it makes them happy, helps them "like you" and lets them know that you will listen to them. It also lets you know what is important to them, so you can properly position how yours is the best company to help them.

Need more ideas? Review past issues of The National Networker - there are LOTS of great ideas here for you!


For more information, please visit Chris's TNNWC Bio.

---

The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com
Forward/Share This Article With Colleagues And Social Media:

THE NET-TECH REPORT: 10 Ways To Get Clients Now

VENTURE FINANCE – REALITY VS. RUMOR: For Entrepreneurs Only

Venture Financing - Reality versus Rumors with Dick Brown

I’m very pleased that we receive mail from our TNNW readers. Many of these are people seeking funding and they ask incisive questions. I generally respond to them within a day or two. For this month’s column, I selected those topics that I feel might be of the greatest interest to most of our entrepreneurs and combined them for privacy of the writers.

If you have questions, comments or suggestions, send them along. (Click on the link at the end of this article, or contact me at American World (dick@amerwld.com). You’ll get an answer.

1. Angels and Valuations

"We're meeting with an Angel Group later this week. Things have gone very well so far and I think they may decide to invest. I know the total size of all their checks is often tied to a 'valuation.' What is this and how do I get one?' PS: We’re a start-up."

You’ll be pleased to know that with a little effort, you can fight the angels to a draw on this issue.

Most financial people agree that a true valuation can only be established for a publicly-traded company that is also profitable. The openly-traded stock price represents the “worth” that independents are willing to pay. From this base, accountants can count assets and liabilities and establish a widely-acceptable valuation.

Since your company is new you have no sales and no profits so there is no outsider’s evaluation to work with. Your angels are shrewd enough to just pick the amount of money you want and adjust for the percent of the company you’re willing to sell. They say to you, “Entrepreneur, you want $150,000 for 25% of your stock, so you must think the company’s worth $600,000. Well, we just don’t believe this and we think the valuation is closer to $300,000 and we want 50% of the company for $150,000."

What they’re using has absolutely no basis in fact and is just numbers they’re pulling off the wall. Your comeback is to peg your valuation to a “real number,” or, at least one that’s in the pro forma of your Business Plan (BP.)

You say, pointing to the projections in the BP, "As early as Year 2, we project sales of at least $6,000,000 and with a minimum profit of 10%. Using the industry standard of 10 times profits, these numbers alone in only year 2 justifies my valuation – not to mention that our sales are projected to be $27, 000,000 in year 5 with a conservative profit of $3.915,000. (14.5%)"

The truth is that both sides are “blowin’ smoke,” but with printed numbers on a printed page in a great Business Plan, you should win (or at least break even) and/or gain the final advantage.

2. A Great Question

One of the entrepreneurs that asked the question about the angel meetings was also honest enough to add:

“I’m trying as hard as I’m able to get this venture off the ground so we can all be successful. I’m very aware that most of the 'money people' I approach are older, more experienced and wiser than me. I get intimidated. What do I do?"

Find an equally experienced “gunfighter” and recruit him to your side. Maybe you bring him on as a director, coach or mentor. Fully brief him on what you want to accomplish and bring him to every such investor meeting. If he’s any good, just the fact that he’s sitting on your side of the table gives you some edge and maybe counter-balances the situation.

Characteristics:
• Has started his own companies (>1);
• Had at least one winner and one loser;
• Knows the “venture money” game;
• Isn’t afraid of anybody;
• And, is at least 50 years old.
• Be sure to set a fair compensation.

Don’t know anybody? Next best candidate: All angel groups have “sponsors” whose ads are in every angel publication. Pick one of these and recruit a “Partner,” not a junior attorney.

3. Business Plans

"I’m the manager of a software group for a hi-tech company in Silicon Valley. Several months ago, I had an idea for a software add-on with an incredible potential market. I have a demo-version that I have shown to very close friends and all were blown away and said the same thing: 'This will end up being on every computer there is.' I’ve done a rough budget and figure it’ll take about $425,000 to achieve this. I thought about writing a Business Plan but all my Silicon Valley friends say these are passé and not even serious investors read them any more. What’s your view?"

Great timing… I have a friend who hates business plans also. He thinks planning is overrated and just a crutch. Let me tell you about his latest venture. He lives in Pawleys Island, South Carolina, not too far away from me. This September will be the 25th running of the Hurricane Hugo Rally from here to Market Street in San Francisco. Being a special year, the sponsors have arranged for the police to forgive any traffic tickets between here and there for five days. For safety reasons, travel is forbidden on any freeways or Interstates. The winners will have the shortest times in four different categories.

He's a great driver and has his eye on a rebuilt Cobra he can get for only $125,000. GPS systems are forbidden, but he's allowed on-board maps. However, he has such skill and a wonderful sense of direction that he doesn't ever need maps and doesn't plan to bring any. Also, the Cobra doesn’t have any spare parts available, but part of the real adventure here is that he needs to bring everything with him, onboard, including fuel, and then his “system” is sealed. He doesn't have much extra space.

That reminds me, I wonder if he's checked to see where he can store enough fuel.

Yes, four people died last year. The police said they were totally unprepared for such an event.

Since you two already seem “sympatico,” he said that he's going to offer you a 50% share for $75,000, and you’ll also drive the route with him. The first prize in his class is $200,000 that he’ll split with you. Please let me know this week as he has others that are interested.

Want to go along as an “investor”?

Now who would you want to invest in: my friend the race car driver with no planning, or any other driver who has planned for every contingency?

4. A VC Meeting

"I have an appointment for a meeting with a local VC next week. This will be the first time I have ever done anything like this and all I know is what I’ve seen on Shark Tank. Can you give me some tips on what to expect and how to behave?"

Congratulations! You can assume they have some level of interest since VCs are very busy and waste as little time as possible. The first meeting is usually to feel out you and your people to determine if you are serious, rational and competent. Questions are usually “casual-personal,” trying to judge you. (Important: VCs are members of “The Club,” and if any of your people (or their relatives) are tied-in or related to power-structure holders, make sure the VCs know this.)

Most VCs have fancy offices. They have expensive tastes and they also like to impress visitors – not just entrepreneurs, but also those Limited Partners that invest in them. Fortuitously, the décor is totally unlike Shark Tank in every way. The two times I’ve managed to sit through part of this program, I could never stop thinking that this is farther from the “real-world” than any “documentary” style show I’ve ever seen. The basic set design reminds me of old Tyrone Power or Charlton Heston flicks where they appeared shackled at Inquisition before black-robed judges. The slightest deviation from normal meant burning at the stake.

And, unlike the TV show, VCs won’t invite their competitors nor are there any bidding sequences such as those for vintage Porsches.

Dress code varies widely. The best strategy is to ask. They will have three or four of their staff members also attend. It’s not unusual for one of these to be the designated VC-bastard/contrarian who’ll challenge you and your staff to see how you handle it and how easily he can make you “lose your cool” (if this happens it’s usually fatal).

You should have at least three people. A nice combination of talents is CEO/Financial, Technical/Manufacturing and Marketing/Sales. Practice two or three times before the meeting until you all say the same thing most of the time. Establish a “secret signal” to be used by the CEO which means “stop, smile, sit down and shut up.”

A “Deal Killer” Caution: squabbling in front of the VCs loses. You bring presentation materials and decide beforehand which of your group will present what part. Give copies to everyone.

My new book has an extended section on behavior at such meetings, including typical questions potential investors tend to ask. (See my web site: www.amerwld.com.)

This is a preliminary meeting. Make it through and you’ll be asked back for more details. Bomb and it’s the end of the line. The general rule is “don’t do anything stupid.”

FinalGood News: Dick’s company, American World, has just published his new book: How To Raise Money, Insider Edition. Dick feels he put in “everything you’ll ever need to know to raise money” and it’s available at www.amerwld.com.

If you have questions, comments or suggestions, send them along. (Click on the link at the end of this article, “Comment/Rate/Share” … or contact Dick at American World, dick@amerwld.com.) You’ll get an answer.


For more information, please visit Dick's TNNWC Bio.

---

The National Networker Companies™ and TNNWC Group, LLC

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com
Forward/Share This Article With Colleagues And Social Media:

VENTURE FINANCE – REALITY VS. RUMOR: For Entrepreneurs Only