Curt Richards

What I have learned from owning multiple businesses:

1)         Run a lean operation

2)         Everything is negotiable

3)         Simple is best

4)         Treat others fairly

5)         Help others get what they want

6)         Focus on what is important

7)         Be yourself

         Listen to others with experience

9)         Hold onto cash

10)                 Hire good people

11)                 Be customer advocates

12)                 Listen to employees and customers

13)                 Continue to learn

14)                 Praise in public, reprimand in private

15)                 Show how and then get out of the way

16)                 Trust others

17)                 Quick to hire, slow to fire

18)                 Lead by example

19)                 Balance your life and work

20)                 This list continues to be revised and                      improved

I have been hoping that the two of these are somewhat related, and not in the sense that we will continue to “stimulate” the economy but rather that the jobs the stimulus was supposed to generate are sustainable.

I, the skeptic, have difficulty believing it is so. I read recently that Kentucky received over $ $797,289,164 in stimulus money for job creation and for that Kentucky created 10,676 jobs. A simple math approach indicates to me that each job costs approximately $74,680. Ok, so now we have 10,676 jobs worth $74,680 each. So, what happens next year? Who pays the $74,680 to those “new” employees?

I don’t think the whole story is being told when the powers to be, and/or the press publish these numbers. My understanding that a significant portion of the stimulus money was spent on road projects; remember the “shovel ready” statement? So if this $797,289,164, or any part of it, was spent on “shovel ready” projects then these jobs were worth one project; certainly not sustainable. I know the work on our Watterson Expressway (I-264 to you out-of-towners) is completed. So where are those jobs now? I suspect they are one and done.

My experience has been with small and medium businesses for over 30 years. I am convinced that the only people who can create sustainable jobs are the businesses of the world; certainly not government. So, if our government is going to spend our tax dollars for “job creation”, then I vote for giving it to the businesses who know how to create sustainable jobs. Give it to them in the form of low interest loans. Give it to them in the form of tax breaks for R&D and capital equipment. Give it to them for tax breaks on employee benefits. You get the picture. Give it to the people and organizations which have shown us how to create jobs; oops, I mean sustainable jobs.

Source of data: Kentucky Post, Feb. 2, 2010

gender discrimination is still alive and well.

In the fall of 2007 my then 15 year old daughter indicated to me that she wanted to work at the country club where we are members. A year prior she came to me and indicated she wanted to learn to play golf and asked me to teach her. That was the thrill of my life especially since two years prior she said “Dad, I hate to disappoint you but I don’t like golf or business”. You see I am a serial entrepreneur and teach business courses at Bellarmine University. I told her it was ok, and “ I still love you, just not as much”J. Actually I was just kidding on the second part. Anyway, her new interest in golf left her eager to be around golf even when she worked. So she asked the pro if she could apply a for position in the bag room the coming season. A couple of her male classmates were already employed there. After a couple of emails and no replies I asked the pro one day if he intended on replying to her and he said, “ I have never hired a woman and never intend to”. As a businessman who knows the EEOC rules, I almost fell over with that response. I told him his comments and actions were illegal. Further, the pro told me the language of the workers, my daughter’s classmates, was too bad to have a woman back there. It is the pro’s responsibility to create an atmosphere where either gender are comfortable working. I wrote a letter to the board asking them to address this so the club would not be exposed to a discrimination suit later, when it would happen again, no doubt. The board gave it lip service to me but took no definitive action toward educating the employees who hire. Had I been of the litigious nature I believe I would have had a good case against the club. My daughter asked me not to pursue this matter. It is ashamed how this one action has smashed my daughter’s enthusiasm for a game and potential career in which the PGA claims it is eager to support women. Seems some education on that level is in order as well. It is a shame that this type discrimination still exists. When are we going to wake up?

There are millions of Americans who do not have insurance because they cannot afford it but what about the Americans who can afford it but cannot obtain it? am one of those. I am a very active 56 year old male who has been self employed for the better part of the past 35 years. I have employed many others, paid for their and my health insurance through my companies and have paid taxes as an employer and as a wage earner.

After selling my entrepreneurial ventures, I went to work for a higher education learning institution. While I enjoyed these experiences I decided I would start my own consulting business in hopes of continuing the ‘teaching’ of individuals and students who want to start their own businesses.

My dilemma is this: in order to stay active and healthy I decided to have a knee replacement to correct an osteoarthritis condition in my right knee. The operation was successful and soon I was back playing golf, hiking and cycling. Inevitably my left knee also suffered from the same osteoarthritis condition. This time I opted for a partial replacement. Again, a successful operation and I now enjoy walking a round a golf, hiking and cycling.

My heart rate is excellent, my cholesterol is well in the acceptable range and I take NO drugs, prescription or over the counter regularly.

Why is it that in the state of Kentucky as a self-employed individual who can afford to pay for his own insurance, my knee replacements preclude me from obtaining health insurance in the traditional manner? This is the question I cannot answer. Currently there are three major insurance companies that insure individuals in Kentucky; Anthem Blue Cross Blue Shield, Humana and United Health Insurance. Prior to my Cobra expiration of January 7, 2008, I contacted all three companies in an attempt to obtain an individual insurance policy and was rejected by all three. The reason given by all three was the fact that due to osteoarthritis I had replaced both knees. The fact that I was healthy and active apparently did not bear on their decisions. When I asked about insuring me with exclusion for my knees I was told that the State of Kentucky currently has legislation in place that precludes long term body part exclusion.

I am aware of the program offered by the state of Kentucky known as Kentucky Access. This program offers insurance to the uninsured. It is very expensive; most likely because the individuals who qualify are “high risk” individuals with conditions such as HIV, MS, transplants, cancer and the like. I believe this is wrong and suggest that the insurance companies only want to insure the healthy unless they are dealing with a company policy where they are not allowed to exclude individuals. If you look at their pools of individual policies I suspect you will find very few sick persons in the pool. Why do knee replacements that allow an individual to remain an active healthy individual disqualify for traditional coverage and put an otherwise health individual in the same category as life threatening or debilitating diseases?

If I go to work for someone I can get insurance coverage whether I am seriously ill or not. If I move to most other states, I can get insurance coverage through an employer or as an individual. As a former business owner I understand risk and profits. However, it seems a travesty that unhealthy persons can obtain insurance through their workplace while I cannot obtain insurance when other than the knee replacements I would be considered in the top percentage of healthy persons.

P.S. Following the expiration of my Cobra coverage (ended 1/7/08)  through the educational institution I worked for previously, I found an Anthem agent who could write  two consecutive 6 month partial coverage plans with exclusions from Anthem. This coverage could only continue for the two six-month consecutive periods. On 12/4/08 I was rejected for continuous coverage under a normal individual policy past 12/31/08. I am currently applying for Kentucky Access coverage.  

An excerpt from the following article: http://www.heritage.org/Research/HealthCare/BG1119.cfm

The Kentucky Health Care Reform Act, known originally as House Bill 250, originated during the 1994 general session of the Kentucky state legislature.

Unintended Consequences: Higher Insurance Rates, Lower Coverage

Not only has the original goal of “universal coverage” not been met, but neither have the more modest objectives of increased availability and affordability for individuals and families. In fact, the problems worsened. Although it is true that those who were very sick were eligible to purchase health care insurance for the first time, the cost of health insurance for individuals and families skyrocketed, forcing many small businesses and healthy individuals out of the market altogether. The result: By January 1996, at the opening of the General Assembly, fewer Kentuckians were covered than before the ambitious reforms were passed.

Even though critics of the Kentucky plan have been concerned about its effect on the state’s ability to attract and retain physicians, there is little debate about the effect of the law’s regulatory regime on the state’s ability to retain insurance providers: Midway through the 1996 General Assembly, the last of over 40 commercial fee-for-service providers pulled out of Kentucky. Only a state-run program is left: Kentucky Kare. With insurance rates at record highs and personal choice of plans at an all-time low, pressure has been growing in the General Assembly to repeal or substantially revise the plan, and there is considerable pressure on the Governor to call a special session on health care reform in 1997.⁶

Will the business model shift to a smaller scale version; similar to what we saw in the “good ole days”? I don’t make many predictions because I don’t like being wrong and more importantly, it is a very frustrating process. However, I am about to make a prediction as it relates to business models of the near future.

With few exceptions, I believe we will see a return of the smaller, more nimble business we knew of “the good ole days”. Big is not always better as we have seen in the new economy. Downturns, like the one we are currently experiencing, have no doubt affected both small and large (big-box) establishments. Yet what I am seeing in my circles is smaller businesses being able to adjust their cost structures, theirs sales approach and their operations to weather this recession. As a former multiple small business owner who has experienced the recessions of the 70’s, the 80’s, the 90’s and the current one, I have seen how companies, especially small, flexible and creative ones have survived these tough times. The big lesson is that most of the owners ran their businesses effectively and efficiently all of the time; not just when times were tough.

Be a survivor and possibly even thrive during these economic times. Start now and build your small business around a model that is flexible and creative. Look to your suppliers, your customers and your employees for ideas on how to be a better company for all stakeholders and put your company in position when the economy heals itself; and it will. There is my second prediction.

To the small business owner:

I will pass along some sage advice from my former accountant. This advice has served me well over my career and while I too am affected by this recession, even more than the other recessions I have experienced, I am thankful to have heeded his advice. That advice was “Don’t change your lifestyle too drastically while business is good or you may find it difficult to adjust that lifestyle when business is not as good; every business has ups and downs [even without a recession].” Thanks Ken Kapp for such great advice.

February 2009

By the fact that you are reading this article tells me you want to know “what were they thinking”. But first the disclaimer: I am not an economist and I have no statistics to support my thoughts but like everyone else I have an opinion on the economic situation we are currently embracing. Well maybe embracing might not be the right word but I know a lot of my friends who are hanging on by the skin of their 201-k plans (fka 401-k plans); so one might say they are “embracing” them.

So what were they thinking?

Since the Great Depression this country has faced multiple economic challenges; the Oil Embargo of the 70s, the recession of the 80s (the double dip recession), the recession of the 90s (single dip for you ice cream lovers) and the 9/11 slash dot-com bubble bust. Yes, we are destined, or at least determined to have occasional economic downturns and according to most experts (who are these experts we keep referring to, anyway) say that we have to have these corrections. OK, so we have to have them, but why do we have to have them during the winter?

Most of this country lives in an area where winter weather is depressing. Snow, cloudy days, cold winds, winter clothing, yuk. Why else have so many purchased second homes in places like Florida and Arizona. Interestingly these are two of the most affected locales for home price drops during this recession. I know there are winter activities and in fact I participate in one myself; it is known as watching golf on television. But let’s face it winter time is the pits for the majority of us sun lovers. It is a proven fact that there are more suicides, illnesses and deaths for older persons from these illnesses in January and February. And if you haven’t heard there is a disorder known as SAD (Seasonal Affect Disorder). This disorder can be downright depressing; no joke intended. With all of these other “winter” challenges how do they expect us to have a positive attitude about the economy and go out and spend during January and February. Heck we don’t even want to go outside much less to a mall. I will admit to at least one mall trip this winter and it was actually more pleasing than expected and much better than the previous trip I took to a mall, three or four years ago. I am just kidding! The reason for the better than expected experience is there were significant discounts (unlike the annual white sales) and the service was great – actually beyond great. You really need to read my other article entitled “Good news in a bad economy” which speaks more to the concept of customer service.

So back to“What were they thinking”? I will cut to the chase for the sake of keeping this short. If there is something we can all get into, rally around, feel good about ourselves, be positive, believe in change, or have the audacity to hope for, how about making a law against having recessions in the winter. Let’s keep them during the summer when the majority of us won’t care as much about it and we won’t focus on the bad news in the paper or on television because we will be out spending time and money in the sun. We will be golfing, boating, driving around the mall parking lot looking for a good parking spot and more importantly spending money. We will be tanned and happy, sipping on a cold tea or a colder beer. Our attitudes will be better, work is ok and life in general is just plain good. Thanks for reading this far. Now let’s get on with spring and summer and fix this economy with our “better attitudes” and the motivation we all know we have. A recession is no match for our spirit and drive, as long as we hold them during the summer. I already feel better as the temperature is forecast to get in the 60’s this weekend.

Customer service is at an all time high – or at least it should be.

Recently I decided to switch banks. You ask why? Well I had been with the same bank for over a decade; company credit lines, personal credit lines, charge cards, home mortgages, and yes, my investments. The problem is that during the 12 months that we now know as “the recession” from Oct. 08 to Nov 08

(I know, it is still going), I did not receive the first phone call from my account executive or my bank broker to comfort me in the downturn. I hired what I believed was a manager of my investments and what I found out was that my account was not being managed. I did not expect my contacts at the bank to be any better predictors of the stock market than anyone else. However, what I did expect was a phone call to let me know that they knew I was concerned and that they were advising their clients to sit tight, or whatever they were advising. Since I did not receive that call I assume now that they were advising sitting tight.

The lesson here, not just for financial institutions is to stay in touch with your clients. Not just when things are good, as they have done for the past decade, but especially when things are not so good. We can use the excuse that we were busy trying to shore up our own business but that is a lame excuse. We need to be there for our customers. Call them and let them know they are on your mind even if they haven’t purchased anything from you in some time. Ask them if there is anything you can do to help them in these tough times. Sometimes a sympathetic ear is all we need.

I have noticed that when I go out to a restaurant, and most retail shops, although some still don’t get it, that I am overwhelmed with the greetings and level of service. Now that is the type of service I expected all along. Why did we have to experience a recession, and why do we have to fear for our jobs, or businesses before we get excited about the customer that just walked in our door? I know many of you have had the same experiences as have I, but the past 5 years or so must have been the lowest levels of customer appreciation I have experienced. I had become disillusioned as a customer. Even when I would walk in a Wal-mart once I got past the less than enthusiastic greeter I couldn’t track down a helpful employee with an elephant gun. Where did the Sam Walton credo go? Sam wanted all employees who passed within 10 feet of a customer to greet them. It was called the “10 foot rule”. For years those same Wal-mart employees seemed to disappear into their blue vests as soon as you spotted one.

So why this message when it appears that the employees of those retail stores and restaurants are still left are starting to “get it”? The message is “act like we are in survival mode all of the time and treat each customer as if they may be your last hope of survival”. Kill them with kindness but please make it authentic. We, the customers, are pretty good at spotting a fake “hello, may I help you”?