Close the Door!

How many times has someone yelled at you to close the door? How many times have you yelled at your kids to close the door?

I recently met a man who has a very helpful occupation. He tests your house to see how well it's keeping in the heat when it's cold outside, or how well it's keeping in the cold when it's hot outside. His name is Lee Cotten and he is the owner of Idaho Thermal Imaging. He has a device that he uses to scan your home for heat-leaks in the winter, or cool air leaks in the summer. On his website you can see pictures of the trouble spots most homes have for heat transfer. You'll be amazed at some of these pictures. 

Better yet, lee has effective solutions for sealing out the cold (or conversely sealing in the cool air in summer). Sure comes in handy in Idaho for thosetimes when the heater (or AC) seems to be kicking on all the time. 

Those of you with older homes that have wood-burning fireplaces typically lose the amount of heat equivalent to leaving a window open 365 days a year. Or almost like leaving the door open year round, imagine the yelling? Lee has a range of services to keep you warm in winter and cool in the summer. Both of those prospects are nice, but what is really great about Lee is that he'll keep your heating dollars from leaking out of your wallet as well. "Stay warm and save money" Sounds pretty cool to me. 

Detecting Quantum Phenomena

How do you detect the effects of quantum mechanics? Start with a metric ton of aluminum and make it very cold...

Just what are the effects of quantum mechanics?, you ask and it's an interesting question. To discuss it we have to rouse Schrodinger's Cat, a thought experiment that has a cat in a sealed box with some uranium. Uranium decays and releases deadly radiation. Once the radiation is detected a vial of poison is smashed inside the box releasing a gas and killing the cat. However, the cat can be said to be alive and dead at the same time until we open the box to see if the uranium has decayed or not. 

It is an experiment designed to show that we cannot know the out come of a random event without making an observation, and therefore the determination  of the outcome is dependent on it being observed. Were you around to hear that tree fall? This is called the Copenhagen Interpretation. Even Einstein had a lot of trouble with this. Either the cat is dead, or the cat is still alive, it can't be both at once right? 

Many in the world believe the way to observe matter existing in two places or states at the same time is to catch it in the act. In order to do this one needs to make matter so cold that the vibration of its sub atomic particles nearly stops, slowing it down so that one can see it in both states at the same time. Some researchers in Podova, Italy (A bit South and West of Venice) have cooled that block of aluminum alloy (weighing a metric ton) to within a few millionths of a degree of absolute zero. They are trying to detect waves of gravity from far off cosmic events, such as the collision of two of black holes. Because the aluminum rings like a bell at the slightest touch, it is thought that the vibration from a quantum event, like the decay of an isotope, could be detected as it evolves from one state to another. If this proves out, it could help us better understand the arena of the very small and it's relationship to the arena of the very large--the one in which we live. 

Here's the article if you want to get into the technicalities of it. Even though you are much warmer, it might make your head ring trying to think about it. 

A Culture of Responsibility

Now that all the hoopla is pretty much over, and it's time to get down to work, President Obama needs to be more specific. I've listened to the man speak, and he is an amazing orator. But I have to take issue with the fact that his speeches, inspiring as they may be, leave me at a loss in his vagueness. 

I've been listening to the rhetoric coming out of the new president. While the mere mention of the word "rhetoric" may lead one to think that I am naysaying the message of our new chief executive, nothing could be further from the truth. 

There is one statement coming from our new leader that I have been hearing repeated in the media over the last couple of days. If someone would explain to me how you can "embrace a new culture of responsibility," that would be great.

 If one were to look at this from an entitlement perspective, he or she might be lead to believe that those who had benefitted most from the blessings of capitalism should take on the responsibility of taking care of those who are not willing to take advantage of the freedom our system allows. The view of the other side of this coin is a very different hope for our society. It is the hope that those who have been taking advantage of a perversion of the purpose of law, will now begin to carry their own water, so to speak. You may wonder what I mean by a perversion of the purpose of the law. 

Our constitution says we are born with unalienable rights. Life, liberty and the pursuit of happiness. These are natural rights. It tells us to defend our lives and our property. In other words we have a right to the things we produce to make our lives better. If you go into your garage, or storage closet, and look at all the stuff in there, you will come to understand that you produced all those things. You may not have physically produced it all, but in essence you did, because you traded your productive abilities and time for the productive abilities and time of others; unless you stole it all, in which case, you should turn yourself in to the police because you have violated someone's right to the pursuit of their happiness. It is the purpose of the law to protect the rights of individuals, not groups or classes of people, individuals. 

So what happens when those who make the laws say that someone you don't know, who doesn't have your productive ability, has a right to your production. The lawmaker has just sanctioned slavery and theft, and you are the slave and the victim. Sounds pretty harsh, right? But what is slavery? Slavery is forcing an individual, against their will, be it at the end of a whip, the point of a gun or the threat of imprisonment, to produce something for the benefit of another. I'm hoping this isn't the culture of responsibility President Barak Obama is talking about.

The press seems intent on comparing our new President to another President who eliminated slavery. If it becomes a productive person's "responsibility" to pay for a non-productive person against his or her will, isn't that the same thing as putting a chain around that person's neck, and reversing a 148 year trend toward true equality? 

When we embrace this new culture of responsibility, lets reject wealth redistribution and take on the responsibility of securing the blessings of a free society. Please Mr. President, make sure that you clear this up--and soon. If you don't, those who produce won't do it for very long. 

Repo Business

I spent a great couple of hours the other day with the owner of J2 Recovery Services. He helps banks get cars and other things back from people who aren't making their payments. Its a pretty interesting business. Of the functions he performs for these lending institutions, skip tracing seems to be the most interesting. A skip trace is performed when creditors can't find the person who owes the money or the collateral. Bail bondsmen, and repomen have to get very creative to legally find out where a person has gone. Apparently the more creative the better as far as the banks and finance companies are concerned (At least that's what I've found after asking lenders what they are looking for in a recovery agent). Sometimes it takes sifting through a ton of data to find that one little tidbit of information that will give away someone's location. It reminds me of the movie "Midnight Run" with Robert DeNiro and Charles Grodin. In the movie Grodin is an accountant who works for the Chicago mob. DeNiro plays the lovable and honest bounty hunter sent to track down Grodin when he skips his bail. In order to find the accountant, DeNiro's character gets the number the accountant used for his one phone call after arrest. DeNiro calls that number to get some other piece of information about the accountant. The woman he talks to then calls Grodin, and DeNiro traces the call and gets Grodin's location. Ingenious! But this is what recovery agents and bounty hunters do and J2 does this better than any. He finds stuff that nobody else can find; even cars that have been on the list for months.

I have always had this mental image of what a repo man is supposed to look like. I guess it comes from that cult classic, "Repoman", with Emilio Esteves. You know, kind of seedy, not someone you would trust to watch your house for the weekend while you went on vacation, lots of tattoos. But J2 is different in this regard. The owner is a regular, clean-cut guy, no tattoos, wife and kids, average joe, who is trying to break out of the stereotype. And doing it quite successfully. He's got some great goals and there is no doubt that he'll reach them.

Once we get his website up, I'll be sure and link to it. You bankers and finance companies out there would be wise to switch. J2 is a real go getter, in the true sense of the term!

One Meeting Mentor

I once had lunch with a professor from my MBA program. He has an extremely distinguished business career. He has worked for some very large and well known companies, and still does. He's well qualified from an academic credentials standpoint as well. There are few people I could find to get the kind of advice he gave me. 

His specialty is strategic planning. As a matter of fact, I found my niche in his class:  I enjoy finding solutions - solutions that deal with achieving goals. Yes, I'm fine at coming up with solutions to solve tactical, day to day problems, and usually, I'm spot on, but looking way in to the future is another matter. I can see the end result pellucidly, however, figuring out all the steps it takes to get there is another matter. Making those long range plans is always difficult because things can turn on a dime...  If one aspect of the external world changes or wasn't considered, the plan often becomes unworkable. Most of the circumstances we face are inevitable. Is there going to be a major earthquake on the west coast someday. Inevitable, right? We don't know when, but we can be pretty sure it's going to happen. We may not be able to predict when challenges in our own lives will arise, but we can be sure they will. Finding the inevitabilities is difficult, but it can be done. 

This was the insight I received from my mentor, and I don't mind sharing it with you. I have some amazing strengths, he said, that I could come up with really good solutions much faster than most people. It was a wonderful compliment and affirmation, of what I thought to be true. However, there are two sides to this coin. I do have the ability to make snap judgements,  and most of the time they are good, but what do I miss by going so fast. Maybe my snap judgements are correct, but looking at the alternatives allows for contingency planning. 

Contingency planning is a big game of "what if." I was listening to the book on CD, "Blink, the Power of Thinking without Thinking", and it said that people who mentally play the 'what if" game are less likely to to become locked with panic and be unable to act in a stressful situation. Inaction when action is needed the most can be deadly.  The ability to plan something far into the future is incomplete without looking at, (a) the alternative courses of action to get to the desired end, and (b) as many of the obstacles, changes, or circumstances that can arise to throw the plan off course. Some people say that a large percentage of success is just showing up. I'm pretty sure one can increase that percentage significantly by showing up prepared and looking for the unintended consequences of an action or plan. 

My take away from my one meeting mentor... My greatest strengths can be, or lead to, my greatest weaknesses - snap action.  Look at ALL the alternatives, and play the what if game. 

We all have our uncommon strengths. This is why I like the phrase, "Everyone is a Hero!" (my own little branding effort). However, man can be so strong in one area of his life that the dominance in his thinking blinds him to other areas that are equally important. According to the theory of brain plasticity, strongly ingrained behaviors take up more of our neurological real estate, so it follows that we must consciously remove our own blinders.

On this subject, you might enjoy the book "What it Takes to be Number One" by Vince Lombardi Jr. (Vince Lombardi's son). In it you may conclude that one of the greatest football coaches of all time had some amazingly glaring weaknesses. Don't we all...

Optimized Marketing

Have you ever looked up at a billboard while driving and wondered why that particular advertiser decided decided on that particular billboard? Probably not. And have you ever wondered how that person knew that was a good way to spend their marketing dollars? Again, probably not. 

Someone put up a counter and counted the cars that pass by on a daily or weekly basis, figured out the average number of people in each of those cars, used some kind of factor to judge if those people saw it, and came up with a number. That number is the number of impressions that a billboard in that particular location gets. Take that number and divide it by the cost of the ad and the rent on the billboard, the cost of putting it up there and you get cost per impression. It works out to pennies or less. But here's the kicker. How do you know how many people walk in your door, or call you about your services because of that billboard? Kind of hard to tell. 

But, what if you could spend your marketing dollars on advertising that was inexpensive, targeted the people who wanted to know about your offering, and you could measure how well it worked. Welcome to the internet. 

Almost everything you do on the internet is measurable. Where someone surfs, how they got there, where they went after they left, how long they were on a page, where their IP address is geographically, and more can be determined by using a tool like Google Analytics. Probably most of you know by now that these tools exist, but there may be a few late adopters who have no knowledge of the kinds of back room workings of the internet business scene.

For instance, you can tell exactly how many people came to your site, and how many clicked through to contact you or buy a product. This is called conversion rate. If you find that one internet campaign is brining in an acceptable number of conversions, don't change a thing. It works. You're good or lucky or both, so don't change a thing. However, if your conversion rate is low you may have to try several iterations of ads or keywords, or a non-internet supplement to your campaign, like a mailer or a radio ad. It's still measurable, because the activity you see on your website will reflect to a degree the effectiveness of your other marketing efforts, thereby making those efforts measurable as well. 

It's great that you can get so many impressions per dollar spent. What's better is knowing the return on those dollars. Sales per dollar spent is a much better metric. If you spent the money on a website, and you don't know what you are getting out of it, then you are throwing your money away.  If you want to know more go here. This stuff is so much fun!

I'm not playing.

What a fun week I've had. I've met more cool people this last week than I care to count, but I will if you call up an ask me. The beauty of all these connections is that in every case these folks are entrepreneurial, young, smart, and tough. The media would like me to think that there is a tough economy out there, but let me tell you it's no tougher than in 1978, 1988, 1997, 2001. Watching these kids and the lines forming at the Costco checkout, makes me wonder what they are up to with this "bad economy" claptrap. If there is a recession, I'm not playing. Looks to me like the ones who are broke are the ones who took the bad loans, the lenders of the bad loans and the federal government, who happen to be the lenders who started this whole mess, by making loans for so called "affordable housing". Some of the private lenders gave out money to compete with Freddie and Fannie. Not very affordable now is it? The faster the Fed goes broke the better, but they won't. They'll just print more money or take it from those who produce something. Either way, its opposite of the role the government should be playing, because it rewards not producing. "Oh you made a pile of money on your new and fantastic invention that saved people time and money? Yeah, we'll just be taking a third of that, and for your trouble we'll give it to people who aren't as smart as you, because that's more fair. Oh and by the way, you greedy bastard, it's your duty anyway."

Here's something else that doesn't make any sense. If everyone is having to tighten their belts, why is the Federal Government not tightening it's belt? "Go further in to debt, and it will stimulate the economy!" Haven't we already tried this? Hasn't worked yet, what makes you think it's going to work this time? Keep asking those foreign investors to buy t-bills, "Tomorrow's slums at today's prices". You want to stimulate the economy? Here's how.

1. Cut the capital gains tax to 0%- you'll see money come flowing in to the U.S. like crazy.
   
2. Eliminate inheritance tax - more money for your kids to invest when you kick the bucket.
3. Pay off the national debt. This government is so over leveraged it's sick. If I were the UAE or China, I'd be dumping my Dollars and cutting my losses.
4. Switch to a Flat or Consumption tax. Everybody pays, not just the wealthy. If you are wealthy or want to be, how long would you put up with having your money stolen before you decided to close shop and move to Costa Rica or New Zealand?

The only thing the Government can produce is a safe environment in which to conduct business. Looks to me that environment is going to get a whole lot more dangerous. As my economics professor says, "Everything is economics". We've been paying people not to produce for far to long. It obviously doesn't work.

You know that guy Robin Hood? Well, he didn't steal from the rich, he stole from the government what the government had stolen from the producers. If he had stolen from the rich he would have just screwed over the people he was trying to help because the rich would have to hire armed guards making their goods more expensive. Either that or the rich would have to take the long way around Sherwood Forest making their goods more expensive. Either that or the rich would just stop selling their things in that market. Anyway you slice it, the poor get screwed when you steal from the rich.

Ever wonder why some countries are poor and others have lots of money? It's because individuals with money weigh risk. A country without property rights and a high chance of having your property taken with no recourse is a bad investment. Where would you put your money?

Want to know more? Read a book called Atlas Shrugged by Ayn Rand.

On Fatherhood

I don't care what anybody says; bringing children in to the world it the one thing in life that makes it all worth while. Being a man, I realize that my gender has it a bit easier in this regard. Setting that part of the process aside, being someone's dad is the best job on the planet. As with any position in life it has it ups and downs, but the ups far outweigh the downs. 

The responsibilities of fatherhood are huge. One of the most important things a father provides is safety. I'm not just talking about an environment free from physical harm, but one where a child is free to be safe within themselves. As a father, I must constantly be aware of the immense power I hold. Our children look up to us, and one slip of the tongue or action can do almost irreparable harm to a child's self view.

I do my fair share of yelling, and being mad when my kids do things that they shouldn't, like fighting with each other, or calling each other stupid. For the most part I try to explain to them first that there are better ways of resolving the problem, like asking themselves how they are reacting to the situation, which is pretty much the only thing we have control over anyway.  If that doesn't work then out comes the mean Dad. I don't like being the mean dad, but in my book that kind of behavior is unacceptable. At the same time I have to be careful not to make them think that I don't love them or that they have some flaw that makes them unlovable. I don't particularly like this part of the job, I mean who likes to yell at their kids? This is one of the down sides, but to me it's necessary to forging adults from children. Making good adults who will be good parents is the goal.

Last night my wife and son went out to see "Walking with Dinosaurs". I was reading and my daughter came in and asked if she could read to me. She's reading Lemony Snicket, and if you know that series of unfortunate events, then you know that there are some pretty big words in there. She's in 3rd grade, and her command of the language is incredible.  After years of reading "Cat in the Hat" and "Curious George" to the point of memorization, it was so nice to have my nine year old read to me. I felt so proud of her, and still do. Massive up-side. 

The challenges of fatherhood are many, but I wouldn't trade it for all the world because the rewards are priceless.

Everyone is a Hero.

If you could be a hero to everyone you come in contact with during your daily life, what would that look like? I suppose, using the Socratic method, you would have to have a definition of hero. Perhaps you could use the dictionary, or some combination of the book definition and a historical or mythological figure by which to judge what is and isn't heroic. But regardless of some external definition of the word, a hero is what we believe a hero to be. 

We all choose our own heros. George Washington, Thomas Jefferson, Harriet Tubman, Sister Theresa, Ayn Rand, Martin Luther King, all have heroic qualities few would dispute. They are the greats of history, literature, human rights, and charity. But there are many other unsung heros that go about their day giving of themselves. Most don't realize they're doing it.

To consider the people we hold in high esteem for their accomplishments begs the question of, who holds us in high esteem. I watch my kids, and I can tell you that even though she would never admit it my daughter's hero is her older brother. How about those teachers that inspired you. I'm 42, and just finished a masters program, and there were professors who I consider my heros. They helped and inspired me to be better. They gave their gifts. 

I met a woman yesterday that had some extraordinary circumstances, yet she started her own business. Her business, Busi-ants, is a fantastic idea. She frees people of some of the drudgery of doing business, like billing, or balancing the checkbook, so that owners can concentrate on more profitable endeavors. Her story is courageous. Heroic? Yes. Her situation is not unique. Everyday ordinary people do ordinary things that make everyones' lives better. Isn't that what heroism is all about? Making people's lives better?

Now, we may make the distinction between getting paid value for value or giving our gifts freely without expectation. But when we give our gifts freely, do we really get nothing in return? Does the feeling one gets from helping out not constitute some form of payment? I believe people should be paid for their gifts if they create value for me. It's one of the beautiful things about capitalism. We have a medium of exchange that allows us to trade our physical and intellectual gifts with each other. But there is something else besides money, and that's the satisfaction of knowing you helped. Either way, payment is payment. 

"Everyone is a Hero" is a phrase I came up with on the spur of the moment. Even though I wasn't thinking about it at the time, I have come to realize that it is a statement of thanks. I am so fortunate to have so many great people around me. From my parents to that teacher in third grade who inspired me to be an artist, to the waitress at Venice Coffee House, and almost everyone in between I give thanks. How long would this post be if I listed them all? Nevertheless, heros, every single one.

As for the person who asked me about the origin of the phrase I had printed on my contact card, this is what I'm talking about. Simply by asking the question, you helped me be a better person, because when I put that phrase on the card, I hadn't given it much thought.  Did you think you weren't a hero before you asked?  I say that if these four words, "Everyone is a Hero,"can change how we think of ourselves and what we do everyday, the world will be a better place.