Excellence and Diligence

“Helen Chang, wow, we did it! From book jail to book hell to book heaven, all in a few months. Thank you for all your hard work, countless hours, and all-nighters with this project. Your work ethic is unbelievable. You are a woman of excellence and
diligence. This project would not exist without you. I enjoyed working with you, and I love your heart for people.”

- Dani Johnson, First Steps to Wealth, Acknowledgments chapter

Attention to Detail and Patience

“When it comes to the success of this book, I must thank my writer, Helen Chang. Helen, you kept me on track and focused during the craziest times of my life. Your attention to detail and patience, while translating my voice onto the pages of this book, is nothing less than outstanding.”

- Armando Montelongo, Flip and Grow Rich, Acknowledgments chapter

Pleasure to Work With

“Helen was a pleasure to work with, both on a personal and professional level. She took my books to another plane, helping me provide my readers and students the highest quality of education out there.I look forward to working with Helen again.

Top qualities: Great Results, Personable, High Integrity

- Michael Sarracini

See original story on SDNN

Tuesday, April 21, 2009

San Diego businesses have a new way to save money, through zero-interest loans for clean and green upgrades. The San Diego Clean Enterprise Program is offering interest-free loans up to $100,000 for small businesses to make energy- efficient improvements.

San Diego Mayor Jerry Sanders announced the program today in Old Town, as joint effort by the City of San Diego, San Diego Gas & Electric (SDG&E) and CleanTech San Diego.

“It’s a great savings for small businesses, but it’s also a great savings for the environment,” said Mayor Sanders. “By spending less money on energy to run your lights or your air-conditioning, businesses can invest more in building their businesses, employing needed workers.”

SDG&E is funding the program, which has $3 million available for the remainder of 2009, said Mitch Mitchell, a regional vice president, SDG&E. Its yearly budget for the initiative is $10 million. While the program was already in existence, supported by the Public Utilities Commission, the new partnership allows SDG&E to reach a wider group.

For businesses applying for the program, SDG&E experts go out to the business location to inspect energy use and make recommendations for upgrades, which are funded through the loans.

“It’s a great opportunity to look at your equipment and make key decisions,” said Mitchell.

The initiative will also boost job opportunities for workers in clean tech industries, said Jim Waring, chairman, CleanTech San Diego, a non-profit group. He noted that businesses that deliver energy-efficient motors, heaters and other equipment would benefit.

“Our real goal is to grow a cluster of businesses in San Diego around clean technology,” he said.

At the morning event, Norm Niles, a manager at Old town Trolley, shared how his company used the program to save on energy costs.

After changing their lights and doing other upgrades, the company cut costs by a third.

The program’s managers will partner with several business groups to spread the word, including: restaurant associations, various chambers of commerce, the South County Economic Development Council, Biocom, CommNexus and Connect. The city government will also promote the program through its various departments, such as those issuing permits.

Some 140 measures qualify for funding, including lighting services, food services and air quality. These can help companies become “green and mean,” said Sanders.

The program can also help business in tough times, said Waring.
“Businesses struggle day to day just to stay alive,” he said. “Here’s something that’s very easy. They don’t have to write a check.”
________________________________________________________________________________

About the loans

Interest rate: 0 percent

Maximum amount: $100,000

Length of loan: Up to 10 years

Who qualifies: Small businesses under 50 employees

Contact:
SDG&E
CleanTech San Diego

Follow Helen on Twitter @HelenChang.

See original story on SDNN

We are entering a period of enormous transition — financially, politically, spiritually. Everyday, we see evidence that old-school business and government are collapsing. And we see signs of a new era.

According to many experts, this new era begins in the year 2012. It is a year that astronomers and mystics have spoken of for decades. It is also a time that financial experts say we will begin a new economic cycle.

“New Economy of Consciousness”

Patricia Aburdeen, author of Megatrends 2010 calls this the “New Economy of Consciousness.” According to her, this new era is based on the values of responsibility, transparency, sustainability and spirituality.

It is a fundamental shift in values, as we move from the industrial age to the information age, from command-and-control economies to networked economies, from leadership of the ego to leadership of service, and from reliance on the intellect to reliance on intuition.

As we enter this new era, we each have a choice as to how to live. Your current financial portfolio may be in shambles, but you will have new ways to build wealth in years to come.

Mystics

The ancient Mayans, Hopi Native Americans, Christians and astrologers all speak of 2012 as a year of great transformation.

The Mayan calendar was based on precise mathematical and astronomical formulas. Their “Long Count” calendar tracks the cycles of time, with each cycle lasting 5,126 years. According to their calendar, the current cycle ends on December 12, 2012.

The Hopi Native Americans predicted a time when humanity would have to choose between living in harmony with the earth, which will bring peace to the planet, or pursuing technological conquest, which would end in complete destruction of the planet.

Christians also speak of the end of times. Those who follow the Bible Code, where the Bible is deciphered for predictions, also believe the time of great destruction and reckoning will take place in 2012.

Astrologers speak of a shift – from the Age of Pisces to the Age of Aquarius. The shift occurs every 2,000 years, and in this cycle, Aquarius moves into full ascension on the December 21, 2011. Pisces was a time of the individual, but Aquarius is a time of the group.

Financial systems

In the financial markets, 2012 is also emerging as a turning point. As we all know, the current banking system and credit markets are already collapsing. Many economists, real estate experts and financial visionaries said the markets will not recover until the real estate market recovers.

Historically, the housing markets have always led the rest of the economy in and out of recession. According to the data, a new wave of exotic mortgages adjusted in January this year. Many of these houses will only start to show up as foreclosures in 2010 and 2011. Therefore, many experts predict the economy will not start to move out of recession until 2012.

Harry Dent, an economist and author of “The Great Depression Ahead,” foresaw the market boom in the ’90s and the bust in the early 2000s. He believes there will be another rally in summer 2009, followed by a long period of Depression. Who knows if what he says is true or not. But like many wealth experts, he advises people to liquidate as much as possible – even now, because they say, the markets will deteriorate even further.

Robert Campbell, author of Timing the Real Estate Market also said to hold cash. This is because there will be huge buying opportunities at the bottom of the market in late 2011 and early 2012. Many wealth experts say that this will be when the greatest transfer of wealth in human history will take place.

Robert Kiyosaki, author of “Rich Dad, Poor Dad,” predicts the U.S. economy will be drained of cash reserves as Baby Boomers retire from 2007 to 2012.

The collapse of the old financial systems are forcing us to create new ones. We are seeing new trends starting to emerge. Wall Street’s mantra “Greed is Good” is transforming into “Green is Good.”

New trends

The New Economy of Consciousness is emerging in the business trends of:

• Corporate responsibility
• Transparent accounting
• Flat organizations
• Sustainable industries
• And community-based businesses

In this era, the industries that are rising include:

• socially responsible investing
• green technology
• renewable energy
• Internet businesses,
• organic food, and
• holistic lifestyles, to name a few.

Businesses based on these values will become dominant in the New Economy of Consciousness. One example is Patagonia, a clothing company that contributes a portion of its profits to environmental causes. In December 2008 and January 2009, when other retailers were closing their stores, Patagonia’s sales actually soared.

What to invest in

So what do you do in the meantime? Here are four things you can do, based on what the experts said:

• Turn to cash
• Harness the Internet
• Invest in your health
• Prepare your mind.

Since the banking systems are falling apart, turning to the most basic of currencies makes sense. Experts such as Dent say hold cash.

For those who don’t have cash, alternative trading systems, such as barter, peer-to-peer lending and microlending,will also become prevalent.

In the Aquarian age, the group is more important than the individual. The Internet and social networking is the perfect vehicle for this. So make sure you and your business have an effective Web site. Sell your products and services online. Get on social networking sites, such as LinkedIn, Facebook and Twitter.

During this time, one of the best things you can invest in is your health, said Campbell. Social security will be gone, as medical and health care costs skyrocket. Make sure you take care of your body, he said.

Finally, prepare your mind. Because of all the changes, you need to have flexibility in thinking. You also want to stay grounded.

Many people will go through enormous emotional and psychic pain during this time, as they cling to old beliefs and structures. You want to stay calm. Meditation, prayer and spending time in nature are ways to do this. When making business decisions, rely on your intuition more than on information.

Whether or not you believe in the magnitude of 2012, we can all agree there are enormous changes ahead. This means great crisis or opportunity.

The good news is that we each get to choose.

Follow Helen on Twitter @HelenChang.

See original story on SDNN

Friday, September 25, 2009

It’s official. You were poorer last year than the previous year. But you’re still richer than just about everyone else in the nation.

“You” being an average San Diegan, earning what is known in economic terms as “per capita personal income.”

The poorer state of your wallet is because of the general economic slowdown, said Kelly Cunningham, economist at the National University System Institute for Policy Research, who just released a study on the topic.

“When you look at earnings, we saw a real decline,” said Cunningham by phone. “If you take the per capita measurement, it showed on average, San Diegans’ income retracted.”

Specifically, you made $45,488 in 2008 – or 0.04 percent less than what you made of $46,142 in 2007, after adjusted for inflation.

That may not seem like much difference, but it paints a larger picture of major change in the region.
“In normal times, you’re going to grow — with greater population growth and more jobs and more people earning money,” he said. “So it is significant that not only did we not grow (in 2008), but we actually had a decline. That is a major change in normal activity.”

If you worked in the military, manufacturing and high tech sectors, you probably saw more money come in last year. If you were in the retail, finance or real estate industries, you most likely made less.

Government and military jobs provided the lion’s share of income, or about 24 percent of total income in the county in 2008. Of this, military payrolls made up nearly 40 percent, a major increase in recent years due to the Iran and Afghanistan wars.

“That’s been San Diego’s strength historically,” said Cunningham. “It’s one of the sectors helping San Diego at this time.”

You also probably made more money if you were part of the “knowledge economy,” including high tech, scientific, and professional services. These specialized jobs comprise engineering, computers, biotech, telecom and other technical services.

This sector saw a 48 percent income increase in 2008 over 2007, and now comprise 13 percent of the region’s jobs. While segments of this sector has struggled in 2009, it will continue to power the economy. “Those are higher paying jobs,” said Cunningham.

Manufacturing jobs are also paying more. Although the actual number of jobs has declined as companies leave San Diego, those who stay are paying more. “It is more evidence that our region’s manufacturing base continues to become more skill- and technology-focused, and less labor intensive,” said Cunningham.

If you work in information, health care, education, food or transportation industries, you probably also made more in 2008 than 2007. But this year, you are feeling the pinch.

You were also hurting last year if you worked in the retail, finance or real estate industries. These sectors declined by more than 10 percent in the last two years.

Despite these declines, you’re still doing better than the rest of the nation. In 2008 after adjustment for inflation, the average Californian made $42,696 — or 6.5 percent less than you — while the average American made $39,751 – nearly 15 percent less than you, according to Cunningham’s data.

Follow Helen on Twitter @HelenChang.

See original story on SDNN

Tuesday, October 13th, 2009

When you’re running a business, capital is your lifeblood.

You may have hundreds of thousands in accounts receivable – money that people owe you for work you have done – but if they don’t pay and you don’t have cash, you’re stuck.

Investors help provide that lifeblood. In San Diego, venture capitalists, angel investors and private investors have supplied entrepreneurs with the cash they need to operate or grow to the next stage.

In a tight economy, investors are scrutinizing deals more closely. You need to have a very tight presentation to win them over.

But here’s the secret – investors have to invest. They cannot let money just sit around. They are looking for good deals.

In my experience with businesses — either writing about them or running my own — I have found 12 key things investors are looking for. These will vary according to industry and business, but the basics are the same.

If you are looking to raise capital, this checklist may help. If you are not, this checklist can still help sharpen your business, since you are the investor.

These are the 12 key things investors are looking for:

1. The problem – What is the problem that your company solves? What are the challenges, needs, pain or pleasure that your company solves or provides?

2. The product - What is your product? How does it work? How is it new, different, better or more cost effective than other products on the market?

3. Target market - Who does your product help? Who is your customer by: age, gender, income bracket, educational level, social background, activities, habits and even aspirations. Why would they want to buy your product?

4. Market trends – What’s going on in the larger market that supports your product? Societal opinion, cultural trends and global events all play into the popularity of your product. Gas-guzzling cars are out; hybrids are in. Artificial food is out; organic food is in.

5. Competition – Who are your competitors? What companies are selling similar things as you? How much do they charge and why? Who are they going after? What geographic region are they in? What are their strengths and weaknesses?

6. Unique selling proposition – How are you different? How do you stand out from your competitors? What makes you unique in the marketplace? This is not about the size of your company; it’s about difference. When MySpace dominated the social networking scene, Twitter was a tiny upstart. But Twitter was different because it gave people real-time information.

7. Marketing – How will you tell the world about your product? What is your strategy for getting the word out there? How will you reach your target audience? This may include: marketing, advertising, publicity, social media, sponsorships, partnerships, events or any number of methods.

8. Risks - What are the danger points and pitfalls in your business? What are the barriers to entry? What makes it easy or hard for competitors to spring up and take over your business? How do you plan to overcome those challenges?

9. Management team – Who is running the ship? Investors want to know who is leading the company. Wow them with your management team’s experience, background, knowledge and accomplishments as related to the company. A stellar board of advisors can also impress investors.

10. The deal – What are you asking from investors? What do you want from the deal? For example, $100,000 in exchange for 25 percent of the company. Or $20 million in exchange for 400,000 series B shares and a board seat.

11. Return on investment – How much are your investors going to make? In what time period? For example, based on your projections, the investors will make $40,000 on a $100,000 investment in three years. That’s a 40 percent return.

12. Exit strategy – No one wants to love you forever. Investors are about making money. They do that by putting money in, getting out more than they put in, and doing the same with the next company. Exit strategies include: buyout from a larger company (the most popular strategy these days); initial public offering to the markets (not very popular now); employee buyout (not very likely). Investors want the greatest amount of return in the least amount of time, relative to the industry.

What’s the most important thing on this list? The management team. Investors know that sharp leadership is key to a successful business.

Investors are looking for leaders who have not only passion and experience, but also honesty and integrity. Can they trust their money with you? Can they count on you to do the right thing when business challenges hit? If yes, then that’s half the battle.

Follow Helen on Twitter @helenchang.

See original story on SDNN

Friday, August 21, 2009

Imagine having tons of money to lend out, but few to lend it to.

That’s the situation Ruben Garcia, the Small Business Administration’ district director of San Diego, is in.

He likens himself to a furniture or car sales person, looking to “sell” small business loans to California’s entrepreneurs.

“This is better than Jerome’s (furniture), better than a car sale,” quipped Garcia, talking about the low-cost loans available through SBA in the 2009 budget. “What a great deal.”

Garcia was speaking on a panel organized by the California Hispanic Chamber of Commerce, which is holding its annual convention in San Diego. The meeting concludes Saturday.

Organizers said some 500 participants registered for the four-day conference held at the U.S. Grant Hotel, which included appearances by Gov. Arnold Schwarzenegger, Sen. Dianne Feinstein, and state controller John Chiang.

Garcia spoke as part of the Friday panel “California’s economic recovery and business opportunities.” The panel was targeted at small business owners, who comprise a majority of the state’s businesses. Many have been hurt badly by the recession.

Garcia gave a breakdown of federal stimulus money the SBA has received for fiscal 2009, starting June 15, under the American Recovery and Capital program.

The $730 million in stimulus funds the SBA received nationally includes:

— $375 million for temporary fee reductions on SBA loans. This includes origination and processing fees. In San Diego, about two dozen businesses have applied for these fee reductions, said Garcia. For some loans, this means savings of $40,000. A company can use this savings to invest in growing their business, he said.

— $255 million for a new loan program to help small businesses pay for existing debt. This means the government pays for business-related loans up to six months past due and 12 months going forward.

The existing loans need to be for business-related expenses, but can pay for credit cards, unsecured loans, mortgages and other secured loans. “You can kick back and relax while the government pays your bills for 18 months,” joked Garcia. “Well, you’re going to be working hard on your business.”

In San Diego, several hundred businesses have applied so far, said Garcia. But since the approval process takes 30 days, only a few had been approved to date, with more yet to come.

The government guarantees these loans 100 percent, so there is no risk to banks doing the lending.

— $30 million for microloans. These are loans of less than $50,000 each used to grow a business. Many microloan applicants do not qualify for loans with traditional banks and institutions. In San Diego, these low-interest microloans are administered by ACCION San Diego and the Certified Development Companies.

While many businesses have been hurting in the current economic climate, the SBA is able to help business owners. “We actually have dollars from the federal government,” Garcia said.

Not everyone in the room was convinced. During the question and answer session, one business owner said that he had applied four times but had yet to receive an SBA loan.

Another noted that the number of banks signing up for the program was limited. Out of 89 lending institutions in San Diego, only four are participating in the American Recovery and Capital program, due to concerns that the businesses they lend to might fail.

Garcia said the banks were being overly cautious, since the government is guaranteeing the loans 100 percent. “If it fails, we’ll eat it,” said Garcia. “It’s a no-brainer.”

Cynthia Bryant, director of the California Task Force which manages the state’s Recovery Act funds, said that businesses applying for other stimulus funds do need to be certified and go through an approval process. “It is a bureaucracy,” she said.

But part of the reason is that the Obama administration demands greater transparency and accountability. Congress also wants to track the funds and their impact on jobs and economic activity, Bryant said.

The greatest obstacle for the programs, said Garcia, was simply getting the word out to business owners. That’s why he joked about feeling like a car salesman, promoting the loan programs.

But his message was serious: “There’s an opportunity to get assistance if you’re having financial difficulty,” he said.

Follow Helen on Twitter @HelenChang.

By Helen Kaiao Chang

See original story on PlentyMag.com

From April/May 2008, Issue 21

The country might be going through a recession, but the clean technology industry seems unlikely to feel it in the same way. Venture capital investments in clean companies boomed by nearly 40 percent in 2007 over the previous year, reaching nearly $4 billion. Where is all that green for green going? Energy-related companies—including fuel cells and power transmission—took up the lion’s share of dollars. Water-related companies had the greatest growth rate—up a startling 397 percent—because of new arrivals in this sector. Meanwhile, energy infrastructure dropped 46 percent in 2007, not because of a loss of investor interest, but due to a $130 million round of funding secured by electric grid solutions company Current that spiked the numbers in 2006.

If US gas prices keep rising and global economies continue to expand, clean energy companies are likely to attract more venture money in 2008. A look at how the money broke down in 2007 helps predict some of the investment trends to watch this year.

Follow Helen on Twitter @HelenChang.

See original story on MSNBC.com

September 24, 2008

After the Federal Treasury announced its $85 billion bail-out of American International Group last week, many consumers wondered if their insurance policies were safe.

AIG requested the massive loan because of a cashflow crunch, due to bad investments in mortgage derivative products, which could bankrupt its insurance assets. The U.S. Treasury granted the loan, because a collapse of the nation’s largest insurance company would affect too many American policyholders and threaten financial markets worldwide, said Treasury Secretary Henry Paulson.

But is your insurance policy safe? The short answer is, experts said, yes.

“There’s no reason to panic or pull your policy out of AIG, because the (insurance) companies are secure,” said Melissa Gannon, vice president of insurance and bank ratings at thestreet.com, an investment information site.

Other insurance companies also seem to be safe. “You can’t leap to the conclusion that because AIG is having this problem, it will go into other insurance companies,” said Gannon.

Here are seven ways you can check.

Find out who owns your insurance. Even if you think you do not have AIG policies, your insurance company may be an AIG subsidiary. For example, AIG owns SunAmerica (retirement annuities), 21st Century (auto insurance), and American General Life and Accident. You can check your insurance company’s Web site, do an online search, or ask your agent.

Even if you own AIG insurance, experts said you do not need to panic.

“The issues that compromised the financial integrity of AIG were at the holding company level, not the underlying insurance subsidiaries, (which) were heavily capitalized,” said Tom Sullivan, Connecticut insurance commissioner and executive committee member of the National Association of Insurance Commissioners. Even if AIG were to file bankruptcy, said Sullivan, the underlying cash reserves would be enough to fulfill all insurance claims.

Strict state regulations requiring insurance companies to set aside reserve funds for insurance claims provide a strong cushion for policyholders, said Sullivan.

Check the financial health of your insurance company. You can check the balance sheet of insurance companies, to assess its financial strength. The NAIC Web site posts information — including assets and liabilities — of insurance companies.

You can also find out your insurance company’s ratings. Although there is no national rating system, various market research companies rate insurers, based on their financial health. For example, thestreet.com offers ratings, ranging from A to F.

You can also find out an insurance company’s balance sheet by looking at its quarterly reports, which are often posted on a company’s Web site, said Nell Newton, healthcare and insurance industry editor at market research firm Hoover’s. Annual and quarterly reports will show you a company’s investment activities.

Large insurance companies which have diversified into international markets and non-insurance products are most at risk, said Newton. Publicly-held companies under pressure to earn shareholder returns are also financially riskier, said Newton.

In contrast, regional and mutual insurance companies — owned by private investors and policy-holders, respectively — are more financially conservative, said Newton. “They didn’t go off trying to … turn themselves into something other than bread-and-butter insurance companies.”

Check the insurance guarantee limits of your state. In the unlikely event that an insurance company goes bust and cannot fulfill claims, each state has a Guaranty Fund to back policies. “It’s a social safety net, much like FDIC (Federal Deposit Insurance Corporation) insures deposits for banks,” said NAIC’s Sullivan.

Each state’s Guaranty Fund has a different limit, with a nationwide average of about $350,000 per claim. In Connecticut, for example, if a fire burned down your house and car, you could claim up to $500,000 for each — or $1 million total. NAIC.org provides a link to each state’s insurance department, where you can check the guarantee limit.

Policyholders may one day have more guarantees, as lawmakers consider regulation at the federal level, said NAIC’s Sullivan, who believes state regulators are already working effectively.

Meanwhile, some academics are proposing industry-led regulatory agencies, which would have the financial motivation to back policyholders. “Having a guaranty fund owned by the industry, managed by the industry, financed by the industry, paying the company policyholders — we think is the right solution,” said Guillaume Plantin assistant professor of finance at London Business School, and co-author “When Insurers Go Bust: An Economic Analysis of the Role and Design of Prudential Regulation.”

“If they don’t take the right conservative action, the future losses of the company will be theirs,” said Plantin. “So they have the right monetary incentives to take care of the situation.”

Meanwhile, keep paying your insurance premiums, said experts. Even if your insurance company fails in a worst-case scenario, you need to be current on policies to claim against guaranty funds.

Find out the surrender value of your policies. If you decide to dump your insurance company, find out how much it will cost you. Many life and annuity insurance policies offer a reduced “cash” or “surrender value” for early termination.

You can read the fine print of your policies or call your insurance company to find out. Alternatively, find out how much a new policy will cost. It may actually be more.

“It’s best for people take a measured approach, educate themselves, make sure they understand their position, and then make a decision based on that,” said thestreet.com’s Gannon.

Consider using different companies. Experts say it may be safer to have different companies covering different policies, depending on the insurance company’s specialty.

“If a consumer just wanted to be really careful, find a company that specializes (in a certain type of insurance), and just stick with that,” said Hoover’s Newton.

Talk to your insurance agent. Your agent or broker may not know all the financial positions of its insurance companies or even want to discuss it. Three large insurance groups and companies — the National Association of Life Brokerage Agents, Travellers Insurance and The Hartford — all declined comment for this story.

But your agent should be able to answer some of the above questions, and make recommendations. If not, you might want to reconsider your agent.

Sit tight. If you have AIG insurance, the company may be sold soon, since that was one of the Treasury’s bailout conditions. “The lazy person’s way is to just sit tight and see who buys (AIG) up,” said Hoover’s Newton.

If you do not own AIG, you can also sit tight. “It’s a big rocky road, but… things will calm down,” said Newton.

Then wait and watch AIG’s surgery. If all goes well, taxpayers may actually benefit from the AIG bailout when the loan is due in two years. In 1979, when the government guaranteed loans to Chrysler Motors of $1.2 billion, it earned taxpayers $300 million in profit when Chrysler repaid the loan four years later.

“AIG has a trillion dollars on their balance sheet,” said NAIC’s Sullivan. “The federal government will more than likely make money on this deal.”

Follow Helen on Twitter @HelenChang.