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Posted by Joshua Bowie II on - Thursday, September 29, 2011 | 1

 by Seth Godin

There are actually two recessions:

The first is the cyclical one, the one that inevitably comes and then inevitably goes. There's plenty of evidence that intervention can shorten it, and also indications that overdoing a response to it is a waste or even harmful.

The other recession, though, the one with the loss of "good factory jobs" and systemic unemployment–I fear that this recession is here forever.

Why do we believe that jobs where we are paid really good money to do work that can be systemized, written in a manual and/or exported are going to come back ever? The internet has squeezed inefficiencies out of many systems, and the ability to move work around, coordinate activity and digitize data all combine to eliminate a wide swath of the jobs the industrial age created.

There's a race to the bottom, one where communities fight to suspend labor and environmental rules in order to become the world's cheapest supplier. The problem with the race to the bottom is that you might win...

Factories were at the center of the industrial age. Buildings where workers came together to efficiently craft cars, pottery, insurance policies and organ transplants–these are job-centric activities, places where local inefficiencies are trumped by the gains from mass production and interchangeable parts. If local labor costs the industrialist more, he has to pay it, because what choice does he have?

No longer. If it can be systemized, it will be. If the pressured middleman can find a cheaper source, she will. If the unaffiliated consumer can save a nickel by clicking over here or over there, then that's what's going to happen.

It was the inefficiency caused by geography that permitted local workers to earn a better wage, and it was the inefficiency of imperfect communication that allowed companies to charge higher prices.

The industrial age, the one that started with the industrial revolution, is fading away. It is no longer the growth engine of the economy and it seems absurd to imagine that great pay for replaceable work is on the horizon.

This represents a significant discontinuity, a life-changing disappointment for hard-working people who are hoping for stability but are unlikely to get it. It's a recession, the recession of a hundred years of the growth of the industrial complex.

I'm not a pessimist, though, because the new revolution, the revolution of connection, creates all sorts of new productivity and new opportunities. Not for repetitive factory work, though, not for the sort of thing ADP measures. Most of the wealth created by this revolution doesn't look like a job, not a full time one anyway.

When everyone has a laptop and connection to the world, then everyone owns a factory. Instead of coming together physically, we have the ability to come together virtually, to earn attention, to connect labor and resources, to deliver value.

Stressful? Of course it is. No one is trained in how to do this, in how to initiate, to visualize, to solve interesting problems and then deliver. Some see the new work as a hodgepodge of little projects, a pale imitation of a 'real' job. Others realize that this is a platform for a kind of art, a far more level playing field in which owning a factory isn't a birthright for a tiny minority but something that hundreds of millions of people have the chance to do.

Gears are going to be shifted regardless. In one direction is lowered expectations and plenty of burger flipping. In the other is a race to the top, in which individuals who are awaiting instructions begin to give them instead.

The future feels a lot more like marketing–t's impromptu, it's based on innovation and inspiration, and it involves connections between and among people–and a lot less like factory work, in which you do what you did yesterday, but faster and cheaper.

This means we may need to change our expectations, change our training and change how we engage with the future. Still, it's better than fighting for a status quo that is no longer. The good news is clear: every forever recession is followed by a lifetime of growth from the next thing...

Job creation is a false idol. The future is about gigs and assets and art and an ever-shifting series of partnerships and projects. It will change the fabric of our society along the way. No one is demanding that we like the change, but the sooner we see it and set out to become an irreplaceable linchpin, the faster the pain will fade, as we get down to the work that needs to be (and now can be) done.

This revolution is at least as big as the last one, and the last one changed everything.
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Posted by Joshua Bowie II on - Tuesday, September 13, 2011 | 3

Business Startup Checklist 101

So you're excited and ready to start your small business as quickly and easily as possible. You're ready to jump right in and start selling and marketing but is your business ready to be introduced?

Often times small business owners overlook important steps when starting their new business in order to skip to marketing and branding their company. Creating a strong foundation for a small business eliminates unwanted problems down the road. One of the common questions small business owners ask us is "aside from marketing and building brand value for small businesses what necessary steps should be taken in order to form a solid company?"

To help answer this question I've provided a helpful list so small businesses can successfully make more business possible.

1. Select a Name and Legal Structure
You basically have 4 choices when selecting a legal structure.
  •     Sole Proprietorship
  •     Partnership
  •     Limited Liability Company
  •     Corporation or S-Corporation

2. Write a Business Plan
If you haven’t already, prepare at least a preliminary business plan.

Here are 3 basic types of business plans:
  •     A Simple Business Plan
  •     A Comprehensive Business Plan
  •     A Professionally Written Business Plan

3. Obtain your Employer Identification Number (EIN)
If you are setup as a Corporation, LLC or Partnership (or a sole proprietorship with employees), apply for a Employer Identification Number (EIN) from the IRS. A EIN will be necessary to open a bank account or process payroll.

4. Open the Company Bank Account
Select a bank and open the company bank account.

TIP: Contact the bank prior to opening the account to see what their specific requirements are to open a business checking account; some banks’ requirements are fairly simple whereas some banks’ requirements are extremely complex.


5. Lease Office, Warehouse or Retail Space (if not home-based)
Depending on your type of business (retail, office or warehouse), arrange for office space to be leased. Contacting a commercial realtor in your area can be helpful. Also, make sure to arrange for utilities and office furniture.

6. Obtain Licenses and Permits

 A. Federal Permits

Depending on the type of business you are in, you may need a Federal license or permit.

Most businesses do NOT require a Federal license or permit. However, if you are engaged in one of the following activities, you should contact the responsible Federal agency to determine the requirements for doing business:
  •     Investment advising ( http://www.sec.gov )
  •     Drug manufacturing ( http://www.fda.gov )
  •     Preparation of meat products ( http://www.fda.gov )
  •     Broadcasting ( http://www.fcc.gov )
  •     Ground transportation ( http://www.dot.gov )
  •     Selling alcohol, tobacco or firearms ( http://www.atf.gov )

B. State Licenses

Some occupations and professions require a State license or permit. Laws vary from State to State, however, if you are engaged in one of the following professions, you should contact the responsible state agency to determine the requirements for your business:
  •     building contractors
  •     banks
  •     insurance carriers
  •     physicians
  •     appraisers
  •     accountants
  •     barbers
  •     real estate agents
  •     auctioneers
  •     private investigators
  •     private security guards
  •     funeral directors
  •     bill collectors
  •     cosmetologists

State Licenses and Permits based on products sold.
Some state licensing requirements are based on the product sold. Contact your state licensing authorities to determine the licensing requirements of your business. For example, most states require special licenses to sell:
  •     liquor
  •     lottery tickets
  •     gasoline
  •     firearms

TIP: Most people engaged in the types of business that require a special State License or Permit are already aware of the requirements (i.e. an accountant is familiar with the licensing requirements for accountants).

C. Sales Tax Permit

If your company sells physical products within the state where it does business, you may have to collect and pay sales tax. This is usually accomplished by obtaining a State Seller’s Permit or Resale Permit.

TIP: many service businesses that do not sell a physical, tangible product are NOT required to collect sales tax, ask the State taxation agency for details/clarification.

D. Business License

Most Cities or Counties require you to obtain a business license, even if you operate a home-based business. This is a license granting the company the authority to do business in that city/county.

7. Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both).

8. Set up an Accounting and Record-Keeping System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years.

9. Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

10. Systematize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business.

11. Develop a Business Identity
Order business cards, letterhead and promotional materials for your business. A professionally created logo can make your business look professional and established.

12. Get the Word Out (Marketing)
Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer.

Tip: Contact us for for consulting and for more information


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