Big Sky Playground

Six Components of Marketing

noreply@blogger.com (Kelly) — Thu, 05 Nov 2009 19:24:00 +0000

by Ross Rademacher

There are several components of marketing, including but not limited to, advertising, personal sales/fundraising, sales promotions and public relations. Marketing and its tactics are divided into several categories as shown below.

Six Components of Marketing:

1. Growth Plans – Strategies to identify and reach an organization’s goals.
- Marketing Plan
- Market Identification
- Budget Allocations
- Growth Potential
- Market Research
- Funding Sources
2. Corporate Identity – The overall look and image of an organization.
- Branding Techniques -
Point of Difference Story
- Logo
- Mission Statement
- Trademarks
- Customer Service Goals
3. Public Relations – Tools to generate favorable publicity in Media.
- Press Releases
- Crisis Management
- Press Kit Distribution
- Information Dissemination
- Media Representative relations
4. Advertising – Devices used to affect new and existing consumers.
- Television
- Internet
- Radio
- Web Advertising
- Newspaper
- Yellow Pages
- Direct Mail
- Magazines
5. Sales Force/Fundraising – Individuals who bring in revenue from the field to the organization.
- Sales/Fundraising Staff
- Sales System
- Target Market
- Follow-Up Methods
- Prospect Identification
- Presentation Materials
- Sales Philosophies
6. Merchandising – Instruments used that display product or concept’s, benefits and features.
- Trade Show Booths
- Location Signage
- In-Store Displays
- Catalogs
- Product/Concept Signage
- Brochures/Flyers
- Website

All components are employed at different times in the life of a successful organization.

Each component of marketing has significance and benefits in its use. There needs to be a distinction made between what is known as public relations and advertising. Public relations role in marketing is to focus on a variety of internal and external stakeholders, including employees, board members, stockholders, public interest groups, government and society at large.

There are five key goals of Public Relations (Clow, 2007):

Identify internal and external stakeholders.

Assess the organization’s reputation.

Audit the organization’s social responsibility.

Create positive image-building activities.

Prevent or reduce image damage.

In many cases public relations costs nothing or the expense is minimal compared to buying media time or space. To depend on public relations as the only “tool” in your marketing tool box can be a disaster. Public relations gives the organization limited control in its messaging. Additionally, a consistent message cannot be maintained over a long enough time span to influence consumer behavior.

The over-dependence on PR can actually cripple the dissemination of information due to the lack of control of the media. This can be seen by anyone who has given an interview to a reporter. The aired or published story does not always line up with what was originally said to the reporter. It is uncontrollable and can have many variables that could affect the validity and non-biased presentation of the facts. All it takes for a Public Relations campaign to go awry is a young reporter pushing her own agenda or not checking sources and facts. Many times, active public relations occur in response to a specific event. Private industry and the environmental movement have both had to react in the past. PR isn’t always getting the good news out, it is also responding to the bad.

It has often been said, “There’s no such thing as bad publicity!” Tell that to Exxon after the oil spill in Valdez, Alaska. On March 24, 1989, Exxon shipping president Frank Iarossi was quoted: “The clean up is not proceeding well. Believe me, that is an understatement. We have a mess on our hands.” (BBC News Archive, 1989). That statement or situation does not get cleaned up with a nice photo op of birds and seals on a beach.

The Nature Conservancy responded after one of it’s board members was attacked for a questionable land deal that showed a conflict of interest, “…IRS is conducting a major audit of the Arlington-based Nature Conservancy, the worlds largest environmental organization.” (Stephens, 2004) “IRS”, “conducting audit”, “Nature Conservancy” is not a series of words that a Nature Conservancy PR person would want to see in one sentence.

A young reporter, oil spill or land deal gone bad is the flip side of public relations. At this point it crosses into a whole different sphere of “Crisis Management”. (Dezenhall, 2007). It has this dubious name for a reason. Public relations consultants are called in after a negative or crisis situation develops. The information dissemination either went awry or simply had an undesired affect. At this point public relations tactics are no longer cheap, but highly costly. It can take millions of dollars and years to overcome not only negative PR, but badly disseminated PR.

Time to Gain Market Share

noreply@blogger.com (Kelly) — Thu, 29 Oct 2009 17:58:00 +0000

By Ross Rademacher

Well, the Federal Reserve has finally come around to thinking like Montana’s own economists. Just last month the Fed said it appears that the U.S. economy has halted the longest period of decline since the Great Depression, although it cautioned that economic activity is likely to remain weak in the near term.

Larry Swanson of the O’Connor Center for the Rocky Mountain West thinks that many of Montana's current woes are psychological rather than economical. People tend to listen to the gloomy outlook in other parts of the country, but he feels things are much better here than elsewhere. Not that times aren't tough, "It's going to be a difficult year in Montana, no doubt about it," stated Swanson last spring. And in a statement earlier this year Paul Polzin of the University of Montana echoed Governor Schweitzer’s stance when he said, “We've been searching for realistic doomsday scenarios, and we just can't find any.”

Of course the recession has had an effect on local businesses; no one has emerged unscathed. Our clients tell us that sales are generally at 2004-2005 levels. Not great, but not a disaster. Through it all, one fact is abundantly clear. Even if you’ve never had to actively market your business in the past, now you do. And the top reason you have to market? To gain market share.
We know that when the market recovers, which it is sure to do, businesses that have gained market share will thrive and prosper. You will be light years beyond the competition by spending your advertising budget wisely today.

According to Forbes.com just last month, the affluent consumer is tired of economizing and ready to spend again. They’re patting themselves on the back for surviving the worst of the recession and ready to reward themselves. From a marketing standpoint, we see an opportunity to reach out to existing and potential customers that you can’t afford to miss.

Now is the time to gain market share, the only way that this can be done is to market your business. Time to Advertise, Advertise, Advertise….

Fair Time

noreply@blogger.com (Kelly) — Wed, 12 Aug 2009 19:10:00 +0000

The Western Montana Fair in full swing in Missoula this week. The first year I went to this fair I was stunned at how small it seemed. I was also surprised to see that the composition was different from the fairs of my youth in Wyoming. There was much less agriculture represented. I began to wonder: if the fair doesn't represent agriculture and farm products what is its purpose?

In thinking about the fair, I am reminded of the economic role that fairs once played for my European ancestors. Fairs and gatherings like them, were opportunities to socialize and network, buy and sell wares mostly manufactured at home, to breed and improve livestock and crop varieties and to demonstrate the latest technologies in home production. Essentially a moving hub of commerce in an age without department stores or UPS; the pre-technology version of the internet. Each person's booth or display of livestock or cottage-crafted goods and food items is a small web-site to be visited and explored by the community at large.

More recently, fairs served a similar purpose for education, social event and market. I grew up in Riverton, Wyoming in the 1980's and the Fremont County and Wyoming State Fairs were huge. At the time, Fremont County had a total population of about 35,000 but was deeply agricultural mostly beef cattle, sheep, swine and hay production. The County Fair was the central event of the summer with hundreds of entries from 4-H, Future Farmers of America (FFA) and general competitors on display. 4-H and FFA were and still are excellent opportunities for kids to develop skills that can lead to career choices, long-term hobbies or just a chance to explore interests. Much of the latest farm technology was on display and our western heritage was celebrated with steam engines and rodeo events much the same as the Western Montana Fair. For rural kids without a lot of resources top prizes in some events included all-expense paid week long trips to the Wyoming State Fair and the Denver Stock Show. Having your bull win big at one of these events was a great marketing tool for a beef grower.

I was very excited to see that the Western Montana Fair has begun to pull in resources from our sizable organic and local market-farms, value-added food products and the restaurants that embrace them. Tuesday's West Lawn Market held presentations on sustainable farming and being a localvore, year-round gardening and composting. The Cast Iron Chef competition was fun for watchers and cookers. Our local re-building organization, Home Resource sponsored a cubical to teach about the reuse leg of reduce-reuse-recycle.

I think the western Montana fair is beginning to remake itself in a new role as a celebration of western Montana's traditional economic base, our growing diversity and our commitment to sustainability and local production of goods, food and services. Missoula has a vibrant 4H community with project choices that reflect our area and the interests of local youth. Projects can be drawn from any area of interest a youth or an adult leader may have including photography, bicycle and forestry.

Missoula has a beautiful fair grounds. I hope that this event can adapt to the growing Green, Local and Sustainable movements in our economy in a way that embraces the future and celebrates the past.

Informational Interviews.

noreply@blogger.com (Kelly) — Mon, 22 Jun 2009 15:38:00 +0000

by Barb Kennedy, PHR

During these tough economic times I see more people who are looking to change career fields and aren’t sure where to begin, how to format their resumes or how to sell their transferrable skills. One of the things I usually recommend to these folks is to conduct some informational interviews with people in their chosen fields. For the employer it’s a great way to promote the business. During this slow time it’s to your benefit to invest your time in recruiting for the future and laying some groundwork for finding great employees when business takes off again!

The savvy interviewer will not only be asking about the business where the interview is being conducted but will also be asking how the entire industry is doing and what the employment outlook is in the field. They’ll be expecting leads to other similar businesses or industry contacts so it’s also a way to show how businesses partner and collaborate. Of course they’ll want to know about salary ranges, travel, hours of work, flexibility and all the obvious pros and cons of the business.

They may also be asking for advice on what particular skills and abilities contribute to success in this field, suggested reading, and what professional organizations are related to the industry. The savvy business person will have most of this information at his/her fingertips. These interviews can be a wealth of valuable information for job seekers. It’s a proactive way to find out where some of the less visible jobs may be and to discover businesses that typically maintain a low profile.

In his article, “4 Mindsets of a Successful Leader,” Keith Ferrazzi lists generosity as the first mindset. He goes on to say, “This is the commitment to mutual support that begins with the willingness to show up and creatively share our deepest insights and ideas with the world. It’s the promise to help others succeed by whatever means you can muster.” The relationships formed in these interviews may go on to spark innovation and create global team cohesion leading to more success for everyone.

Thrive or Survive

noreply@blogger.com (Kelly) — Mon, 08 Jun 2009 16:52:00 +0000

What does it mean to thrive in the downturn? As a recent University graduate with a Liberal Arts bachelor’s degree (economics) with some quantitative touches (math and statistics minor) this question is foremost in my mind. I’ll be looking for a way to earn income by the first of July and I fear the prospects aren’t very good. I have strong ties to Missoula and am not willing to relocate. In this highly educated city finding work was challenging before the recession. According to the 2000 census 32.8% of Missoula county residents had earned Bachelor’s degrees or better. I personally know many people with master’s and doctoral degrees who were working in construction because the wages were pretty good and they could continue living the outdoor lifestyle many of us in Western Montana value. I suspect that some of these people have fallen back on their education with the slump in the housing industry.
Even with a 3% unemployment rate in 2007, high paying jobs with benefits were scarce. In Missoula county, 61% of jobs, based on the Wage and Benefit metric , a measure of job quality conducted in 2007, rated three stars. These ratings are based on qualitative measures of jobs such as full-time, health benefits, wages compared to median wages for the region and more.

The Montana Department of Labor and Industry estimates April’s unemployment rate in Missoula at 5.8%, (April is the most recent month available on their website). While this is still much lower than the national unemployment rate, 8.9%, it is twice the rate of two years ago.

I’m looking at job listings and there’s not very much out there for me to apply to. In my economics graduation ceremony our department head, Doug Dalenberg pointed out that it may take months for us to find jobs and that we all need to be patient and persevere.
Many of us are considering weathering the economic storm for the next few years in graduate school. Among my class mates, lots of us were looking at going directly into graduate programs. But, by the basic laws of supply and demand, graduate admissions and financial support are more competitive.
The good news is there are many resources out there to help us all out. Job Services provide help for both prospective employees and employers. The University of Montana’s Career Services continues to be available to recent graduates. They offer help with resume prep and list jobs.
All in all, the theme of today’s economy is uncertainty. Niches exist and some businesses are thriving in the downturn. The real final exam for today’s grads is whether we can discover one of these niches for ourselves.

Reflections on Green Recovery

noreply@blogger.com (Kelly) — Wed, 27 May 2009 15:24:00 +0000

Reflection on Green:
by Marcy Allen

Bitterroot Economic Development District (BREDD) recently hosted a half day workshop in Missoula called Green Recovery: creating jobs and partnerships around Montana’s clean energy future. The workshop’s goal was to inform regional businesses about opportunities to grow the green economy through American Recovery and Reinvestment Act programs. The first half of the workshop was informational and the second half focused on developing ideas around some of the funding opportunities.

Now that I am not in the midst of it I have had time to reflect:

1) My favorite feature of the workshop was the diversity of knowledge and skills represented. It reflected the skills needed to run a successful business. There were people with financial skills, some with field experience, some experienced with planning and those with sales and marketing abilities. I think this diversity promoted good networking and conversations.
2) The presenters and panelists did an incredible job. This workshop was put together in a short period of time and the participants did a good job sharing their knowledge to date.
3) I would like to be able to package and distribute the connections that were formed during the breaks and at the social networking event. How do we encourage this type of information sharing in our very busy lives?
4) I am especially excited about the Energy Efficiency and Conservation Block Grant program. Missoula City and County have allocated $680,000 and $160,000 respectively for this program. Smaller communities in the region can apply for these grants through the state DEQ.

Here are some interesting tidbits:

• An increase in Tax Credits for the installation of 75% efficient biomass-burning stove http://www.hpba.org/index.php?id=34

• Appliance rebates may be in the works for Energy Star appliances. Check in with the DEQ

• A list of energy audits training and certifications:

o National Center for Appropriate Technology: www.ncat.org
o Saturn Resources: http://srmi.biz/
o UM's College of Technology (COT): http://ace.cte.umt.edu/about/default.html

Due Diligence Means Asking the Tough Questions

noreply@blogger.com (Kelly) — Thu, 30 Apr 2009 22:17:00 +0000

By Tracy McIntyre

Taking time for Due Diligence!

Spring has finally found its way to Western Montana. With the grass turning green, calves and foals frolicking in pastures, and small towns a buzzed with activity after a long winter, Spring is a great time to invest in the future of Western Montana. It is also the time when due diligence is most needed. From business ventures to capital campaigns for community facilities to donating to a local charity, it is essential that individuals take the time to plan for their future, plan for their business, and determine the best use of their charitable donations.

In many small Montana towns, a handshake is all we need for a deal to go through. Because of our small town community spirit we are also the target for individuals who may take advantage of that hospitality. It is important for people to ask hard questions before they invest in a business venture or donate to a charitable activity.

I strongly encourage asking what your funds will be used for. Here is a little heads up… if someone is unwilling to discuss how funds raised will be used it might be a red flag on that organization or business venture. Fund raisers should have a plan in place before heading out and asking for investors/benefactors. It is perfectly legitimate for you to make sure that what you are giving to or investing in will have a positive result for you and your community.

Volunteering and/or Serving on a Committee:
As a volunteer on a committee or organization, it is your duty to make sure that you are representing your entity and project in a positive manner. You can ask others who have joined to give you background information on themselves. You can even ask for a resume and check references if there is any doubt of the volunteer's ability or sincerity… ask questions, check references and make sure that the person is who s/he says they are. This is especially important if you have people volunteering to be the forefront of your organization's fundraising efforts.
A common mistake for organizations is the belief that any and all volunteers are good. Though I fully encourage volunteerism, the worst thing for your organization is having a volunteer falsely represent you or represent your entity in a manner that harms your organization. As leaders you need to have the ability to not accept and even "fire" volunteers who are harmful. You don’t want to ruin your organizations efforts and reputation just because one person misrepresents themselves.

TIPS for organizations:

Build in 5 minutes at the beginning of each meeting for an icebreaking activity. Taking a few minutes to learn about the individuals in your group is worthwhile. Icebreaking activities at the beginning of each meeting, especially the first ones can build confidence and trust within the group. Marie Wallace wrote "Guide on the Side-Ice Breakers and Other Related Activities". Her article has information about forming a group, breaking the ice and building trust. http://www.llrx.com/columns/guide67.htm

If your organization wants further assurance about its members you can implement a membership application requesting for references and/or background information. Then, if the need arises you can check those references.

Making a Donation:

If you have been asked to donate to a charity and/or a fundraising event, it is within your rights to ask how funds are going to be used. We are all aware that money is tight. Asking those hard questions will help you determine the best value for your charitable donation. It is extremely important that when making a charitable donation you are doing so with confidence. If you are approached to give money it is your responsibility to ask for a project budget, a short term plan, how the entity will continue in the future (if applicable), and for information on the individuals involved in the project.

Any entity that is trying to make the community better should have this documentation and be willing to share it with their funders. If they don't have the requested information available they should be willing to follow up with the information requested. If an organization (or an individual) is unwilling or acts offended by the request… step away; there are a number of entities that are more than willing to provide you with the information you need to make the most of your generosity.

TIPS for Donors:

Requested information may include;

Project goals and implementation plans (case statement)

Who benefits from the project and how

Outline of how funding is spent

How much money is needed

What happens if only partial funding is raisedo IRS Tax number of organization

Good standing certification from the Secretary of State

Responsible Parties or Board of Directors list

Contact information

Before pledging or making a donation:

Research the entity asking for funding- check local newspapers

Google the organization and/or individuals involved to see if there are any red flags

Ask friends, colleagues, and family about the organization and individuals

Further information for developing a fundraising plan can be found at Free Management Library. http://managementhelp.org/np_progs/fnd_mod/fnd_raise.htm

Making a Business Investment:

Due diligence is essential for individuals who are investing money into a business venture. Even community based ventures, like cooperatives, need to have a strong plan that shows their capacity and outlines their steps to success. Investors should ask for cash flows and projections, budget materials, business and marketing plans and resumes of the principle people.
Again, if anyone becomes offended or protests you asking for planning documents…move on to a different venture.

TIPS for Business Investors

Request Information:

Business Plan and/or Feasibility Study

Marketing Plan

Financial Statements

If already in business: current year and previous 3 years Profit and Loss statements, 3 year projections and cash flow

If startup: 3 year cash flow and projections, start up budget and 3 year operating budget.

Resumes of key players with references

Do your own research:

Google other companies with similar services and product- is the market strong? Is there local competition? Is there new technology emerging in the field? What materials are needed and are they available?

What are the businesses strengths and weaknesses? Do they have the capacity to return your investment? Is investing in the business venture worth the risk?

Negotiate how and when you will receive a return on your investment. Have it laid out in a clear memorandum of understanding before making the investment.

For more information on planning a business: http://www.sba.gov/smallbusinessplanner/index.html

A handshake is still an extremely valued gesture of confidence and is part of why I live in Western Montana. By applying some due diligence before the handshake is made, we can ensure that the type of business lifestyle we live here for, can remain in Western Montana for our future.

Sharing Ideas: Why Reinvent the Wheel?

noreply@blogger.com (Kelly) — Tue, 21 Apr 2009 18:47:00 +0000

By Kim Morisaki

“I know business owners that will look at successful techniques used by other businesses, but are unwilling to adopt the same practices because they want to figure it out themselves.”
-Manufacturing Roundtable Member

When I heard this comment, I thought to myself “Well, that’s just crazy. Why would anyone want to re-invent the wheel when good ideas are out there for adoption and adaption?” But then the words of an Asian friend of mine came back to me. He was truly puzzled by the American love of “doing it yourself”. Our pride in “pulling ourselves up by our bootstraps” and being “self-made men” was beyond his concept of common sense. Why would you want to “do it yourself”, that’s why you had friends, family and colleagues. After eleven years in Japan, I have to agree with him that independence for its own sake is over-rated.

In part, economic development at its best struggles to overcome that “do it by yourself” mindset. Whether it is setting up Roundtables for members to exchange ideas, assisting businesses to identify and implement best practices, or putting new business owners in contact with the local and state resources that they need to build a foundation; everything we do revolves around networking and sharing good ideas and information. We do it for the sake of creating more jobs and a more diverse economy to benefit everyone.

It is good for those of us encouraging this exchange of ideas amongst business people to remember that we too could benefit from adopting and adapting the best practices of our peers and working together for regional promotion. After all there is nothing new under the sun, except for maybe Twitter, and we all have so much to learn and teach which is why I’m looking forward to being an active member of the Montana in Business Blog.

Did you know that there is a Generation G?

noreply@blogger.com (Marcy) — Tue, 17 Mar 2009 17:59:00 +0000

by Marcy Allen
I strongly believe that compassion, generosity, caring, social giving, sustainability can have a place in market based society and can even boost productivity Which is why this concept of Generation G spoke to me.

Recently a cool website, Trendwatching.com, that tracts trends (free) and issues a trends report (cost money) had an article on the G generation. Like generation X but with a G. G does not stand for gregarious as we all know most of this generation would rather IM, text, or Twitter than talk. G stands for Generous. This article talks about the idea that generosity is a societal and business driver today. The article also states that ‘..consumers are disgusted with greed and its current dire consequences for the economy..” Will this become known as the age of social entrepreneurship? According to Wikipedia ;

A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.

So that peaked my curiosity and I decided to use my facebook status to find out if any of my friends worked for companies that used form of social entrepreneurship. I found that one of my friends works for a company that encourages their employees to volunteer 32 hours per year and they pays them for it! So if all the employees at their office were to volunteer that amount of time that would create almost 2000 hours of volunteer time in the community. Impressive!

Another says that her company allows her to pick projects in her region as long as she makes her numbers. I think this attitude can be seen at places like Google, who allow their employees to work on projects of their choice 20% of their time. I think this creates networks, community, and encourages creativity. It also increases productivity and creates happy workers. Happy workers = Productive workers.

Social Entrepreneurship focuses on social change, but I also think it can be a model that drives profits in business. Many companies today have something that gives back, here are some companies I found that use social entrepreneurship to drive profits and sell products. Target is a great example of Social Entrepreneurship, 5% of their sales go back into the community. They claim that is 3 million dollars a week. Some other creative companies I have found are TOMs shoes, for every shoe you buy they give a pair to people in need. Patagonia is a great early adopter of this social entrepreneurship giving a portion of their proceeds to the environment, and using their catalogs to educate and inform. Locally you can check out the Bicycle Benefits program, a program to promote the use of bicycles.

The article clearly points out it isn’t just about doing something nice, its about identifying a problem and providing a solution. It funny this is the same thing that Venture Capitalist seeks from entrepreneurs. So if you are thinking about adding a social aspect to your business, identify a problem and develop a program that solves that problem. Don’t just do something nice because you think it shows well for your business.

Most recently at a Missoula City Club meeting I heard the CEO of Northwestern Energy say he had been meeting with social responsible investors! People are speaking with their money and the trend is growing. If you want to follow some of the G Generations up and coming social entrepreneurs visit the Ashoka website, its fellowships are the ones to watch.
Do you remember the huge growth of comfort food after 9/11, well social entrepreneurship is the comfort food of the recession.

A New Twist to Employer Sponsored Training

noreply@blogger.com (Kelly) — Mon, 29 Dec 2008 17:45:00 +0000

By Jodie Rasmussen

Several employees from a medium sized local business called recently to sign up for continuing education classes. Some of the classes were ones that businesses typically send their employees to like Excel and welding, but when they started signing up for pottery, meditation and container gardening I was surprised when the business owner came on the phone and paid for all the classes. I wanted to make sure that the owner knew what classes he was paying for, so I repeated them, he laughed and said those were great classes. Intrigued, we chatted some more and he shared his philosophy on why he paid for the classes. He said "I often request that employees take a work related class if they need help in a certain area, but it's okay if they want to take a class for fun because what's important is their willingness to learn." He said his best employees are lifelong learners, they were the ones who embraced change, who had a bigger picture view and were the best problem solvers. Ironically, even the classes that weren't work related had a way of creeping back in to benefit his business. Employees who took art classes understood color theory and set up more eye catching displays, exercise classes made his employees more healthy and miss less work.

Missoula is blessed with many talented instructors that want to give back to the community and since The Lifelong Learning Center is part of Missoula County Public Schools, the classes are very affordable. In these troubling economic times we are seeing an increase in Employer Sponsored Training… it is heartening to see employers investing in their workforce.

The New Trickle Down Economy?

noreply@blogger.com (Kelly) — Wed, 26 Nov 2008 19:30:00 +0000

By Kelly Yarns

Despite hearing daily reports about credit crisis and tough times for business, it hasn't seemed very real to me. I'm a student, I don't have a retirement account and I only work part time. Being on the bottom of the financial food change I have largely missed the anxiety and fear experienced by many....until it starts to hit those close to me.

We have a friend who has been doing well as a building contractor for both big developers and small remodelers. On the edges of the housing contraction he finds he can't stay in business. The large developers he's already completed work for aren't paying and the lumber suppliers aren't extending any more credit. His business is at a standstill even though he has enough small contracts lined up to survive. If you can't buy supplies because your completed jobs can't (or won't?) pay, and your credit is maxed out, you can't stay afloat. I wonder how other small business owners are weathering this storm?

This is exactly what has taken down some of the big guys. Lehman Brother's failed in part because their daily operations where financed by JPMorgan. When JPMorgan denied Lehman Brothers access to its accounts on September 12, Lehman's lost its access to cash. Is this today's version of trickle down economics?

One local small-business owner told me that credit cards are a key source of short-term credit for small businesses. Unfortunately these credit lines are not secure. Banks often change the credit limits without warning. Imagine your chagrin to find yourself with a closed sale, going to your supplier to buy materials, plopping down you credit card only to have it rejected. What are you supposed to tell your clients?

Small business owners are talking about what it will take to survive these times. Small business owner Devin Moore wrote "The ability of a small business to react quickly and fill a localized need is perhaps their greatest strength." This optomistic view expresses the challenge ahead for us all. To find and fill a niche. My favorite tip is to diversify your business services to include counter-cycle elements. These are business activities that thrive during contractionary economic cycles. Job skills training and anything that increases operational efficiency are some examples.

The big picture economic crisis seems abstract and a little surreal from where I sit. My life hasn't really changed very much. Talking to people in the thick of it helps bring me into the real world where most of you live. It also makes me think a little harder about graduate school. This may be a good time to stay out of the job market for just a little bit longer.

Change is Green

noreply@blogger.com (Marcy) — Thu, 06 Nov 2008 05:42:00 +0000

By Marcy Allen

In the wake of a monumental election in the United States, the word ‘Change’ keeps ringing in my ear. No matter who you voted for I think we can all agree that with our current economic condition we are in need of some change. Change is always something we can count on. It is not always something that we revel in or even feel comfortable with. I often have to remind my self that with change comes opportunities.

My point being that with the current economic downturn, rising fuel prices, and upcoming 'Change' we have opportunities. I believe that one of those opportunities is the Green Building Industry. The green building industry is HUGE! It is projected that the green building industry will reach 60 billion dollars 2010, and approximately 10% of commercial construction starts are expected to be green by 2010. In our region we currently have two LEED certified commercial projects underway totaling 40 million dollars. The green building industry offers a wide range of job opportunities for our region from blue collar and professional positions. Green can come in the form of HVAC installer, builders, engineers, computer scientist, architects, and loggers. This is the reason that I like green industry, you can be a PhD in computer science and be developing energy informatics application or you could be a skilled carpenter offering your customer green building. It offers Rural Urban business opportunities, Good Wood is a great example of this, logged throughout the region, milled in Superior, and sold in Missoula.
'Change' will come in the form of green house gas reduction and green job policies and regulations. We can be prepared and grow our local economies from this “Change” and my suggestion is through green industry. My next post I will discuss how at a recent presentation my notion that with change and distress can come opportunities where reinforced. Sustainable Venturing coming soon.

Small-diameter Wood: Supply and Demand

noreply@blogger.com (Kelly) — Sun, 02 Nov 2008 16:57:00 +0000

By Kelly Yarns

When searching for my economics undergrad thesis topic I wanted to find something relevant to our local economy. I think the trend in forest management toward providing certain desirable forest conditions and away from providing timber is changing the wood products industries in Western Montana. Much of the wood thinned off western forests is small-diameter under-utilized trees. In our region, there is substantial effort to create and encourage value adding businesses to utilize this supply of small trees.

I’m going to try to create a supply and demand model for small-diameter timber in Western Montana but I need certain types of data that occurs over the course of at least five years. I need information on the prices value-adding business pay for small-diameter timber, an estimate of the quantities they used and data on other factors that influence supply and demand. I’m thinking that wildfire occurrence, fuel costs and housing industry trends impact how much of this stuff gets used. If anyone out there has any suggestions on where to find data or other what some other important factors that influence supply and demand for small-diameter timber might be, I could use your input.

I hope that my analysis of this market can help target economic development efforts to encourage innovative efforts to use small-diameter wood to create jobs, local products and sustainable economic growth.