Bill Ritter for governor in 2010

Right here, right now, I'm endorsing Bill Ritter for re-election as governor.

The Republicans made me do it.

The news today, according to the banner headline across the front page of the Denver Post, is "United GOP targets Ritter."

And right below that headline the Post encapsulates the Colorado Republican Party's 2010 "Contract for Colorado," which leads off with the promise (I would call it a threat) to "Limit taxes and state spending."

As if the perennially Republican-defended Taxpayers Bill of Rights didn't already prohibitively limit Colorado's business growth and progress.

As if the perennial Republican criticism of Amendment 23, the only bulwark against legislative raids on public-school funding for the state, were not promise enough from their party that the children of Colorado can be ignored in order to uphold the wealth of the establishment.

No, none of that has been enough for Republicans in Colorado.

Now, they want to re-impose a "limited-government, no-government" regime on the state, apparently not satisfied with the deep hole the former Owens administration dug for Colorado through its frivolus spending on inefficient computers, its promotion of an Internet network that failed to deliver on its promises, its complete abrogation of public health programs and higher-education funding, and its total disregard for racial discrimination in state contracting.

That was once Colorado's contract with Republicans.

I, for one, would rather see Democrats in charge of making government mistakes.

At least they err on the side of ordinary people.

Government at work for its people

Budget-strapped Colorado government worked behind the scenes to protect the state's drinking water over the past year, demonstrating why Colorado citizens pay taxes and what kind of valuable regulation they get for their money.

On Wednesday, the state's Department of Public Health and Environment reported it has withdrawn disinfection waivers for 72 public drinking water systems around Colorado in the wake of its investigation of the 2008 Salmonella outbreak in Alamosa. That outbreak claimed one life and sickened an estimated 1,300 of Alamosa's 8,900 residents that spring.

Gov. Bill Ritter can claim the subsequent health department action as a victory for his administration.

But if Ritter faces a "limited-government" Republican opponent come the fall 2010 campaign, the incumbent governor may be reluctant to speak up for his regulators because such government services cost money, and "limited-government" candidates never advocate raising the taxes needed to pay for them.

Yet those are the services Colorado taxpayers expect of its government. Just like they expect affordable in-state tuitition for its college students, mosquito-abatement in West Nile virus season, and sufficient state support for primary and secondary public-school education.

The state's voters elected Ritter in 2006 to make sure Colorado's government apparatus would be used for such purposes, and most of what Ritter has been criticized for by Republican opponents during his first term has been aimed at his efforts to fulfill that broad, generalized 2006 election promise.

You can bet whoever may be Ritter's Republican opponent in 2010 will try to label him as an overspender of what money the state was able to collect during the 18-month economic downturn that has caused drastic revenue shortfalls.

But don't forget that the "limited-government" Owens administration was responsible for the state's not jumping on programs that might have prevented or reduced the many deaths and hundreds of serious illnesses suffered in Colorado as the initial epidemic of West Nile virus swept east to west across the nation earlier this decade.

Regulators are employed by a state to protect its citizens from failures of business and industry that can affect large parts of the population. When regulators don't do their jobs, people often get hurt, and taxpayers don't get what they pay for.

Let's hope Colorado's current budget cutting doesn't set us up for more West Nile or Alamosa-style public-health failures. The health department's withdrawal of disinfection waivers, forcing public water systems to purify their drinking water, represents taxpayer money well spent.

Don't let anyone try to convince you otherwise.

Business needs a Broncos win

Colorado's business community needs a Broncos' win against the San Diego Chargers on Sunday.

I have learned since arriving in the state in 1988, the morale of Colorado business takes a cue from the success of the Denver Broncos, and I have come to believe that the success of all the state's professional sports teams seems to set a tone for the success of the entire state.

I know that sounds crazy, but give me a listen.

When I was the night city editor of the Denver Post, I would drive to work on Sundays at a time when those lucky enough to attend Broncos games had already found their parking spots at Mile High Stadium, and the rest of the city was already positioned in front of its TV sets.

Central Denver was hushed and quiet in the middle of the day, waiting the kickoff.

After a loss, on Monday's in the middle of the day, the city was almost as quiet and palpably depressed.

Then the Avalanche came to town and promptly won the city's first national professional sports title. The Broncos followed with two consecutive Super Bowl championships (it should have been three, but the Broncs were beaten by Jacksonville in the first year they also should have won the championship, which, with the next two wins, would have made history).

The Rockies made the playoffs early on and two years ago went to the World Series. The Nuggets made the playoffs several times since I have been in Colorado, but never with as strong a team as they have now, one with a realistic opportunity to take an NBA championship.

Yet it's the Broncos that still set the tone, and you could feel that already this year when they surprisingly won six games in a row as Colorado was feeling the first little urges of a national business recovery. Once again, the state was leading the nation and gathering praise for its growing alternative energy industry, school reform and even health-care delivery on the Western Slope.

Then the Broncos lost to Baltimore. Winter had come early. National unemployment hit 10 percent. Stimulus dollars were being reported to have hired way too many people than seemed realistic.

And the Broncos dropped two more, while the Chargers kept winning.

For some reason, the Broncos and other winning sports franchises in Colorado seem to inspire business and political leadership in the state. There's no objective proof for that, but the winning lifts a burden that winter's snow and cold often impose.

Colorado needs the Broncos to beat the Chargers at home to show the state's business and political communities that the team's improvement over the off-season wasn't just a mirage. And that the inklings of economic improvement in Colorado weren't just false positives.

When the state's professional sports teams are winning, Coloradans, their business leaders and their political leaders are energized. And right now, Colorado cannot afford to let its energy and leadership slip.

Business needs a Broncos win on Sunday.

Where's the path to stimulus dollars?

On Monday, I ducked my croquet game to attend a presentation on the Auraria campus about "How Your Business Can Benefit from Federal Stimulus Money." I was hoping to see for myself what advice was being given to small business owners by a state official, Maranda Pleau, who has been touring the state to speak on the topic. (Photo: Mark Martinez; Credit: mscd.edu)

You might remember that on Aug. 14 I posted a blogspot on the distribution of $87 million from a state/federal capital construction program for San Luis Valley schools, and I connected the funding to Pleau's tour, assuming that her presentation would tell small business owners in the Valley how they might get a piece of that action.

I was wrong, and I was told I was wrong by Pleau's communications manager Myung Oak Kim, who read the blog and told me I should attend one of Pleau's presentations to find out what she was saying in them.

So I did. And frankly, I was disappointed.

Pleau, who is formally called the Director of Small Business and Minority Outreach for the Governor's Economic Recovery Team, told an audience of about 60 people, some of whom were minority business owners or women business owners, that her team's tasks so far had been difficult, especially the "very arduous" process of tracking stimulus dollars. That is one of her missions: to tell the people of Colorado how stimulus dollars are being spent.

The problem with her presentation, however, is that mission seems to be her only mission. She does not offer specific advice, other than recommending business owners check out the recovery team's website, www.colorado.gov/recovery, that might land a small business a grant or a contract to keep they're business going.

In fact, one business owner at the Nov. 9 presentation complained that she had run through all the traps on the website, searched out grants and contracts that might get her new business, but that all the material she searched seemed to suffer a basic "disconnect" from the information she really needed. She needed direct paths to bidding for work, and she wasn't finding them.

Mark Martinez, regional president of Solera National Bank, which has capital available to lend to qualified business borrowers, helped sponsor Pleau's presentation but came away from it as disappointed as I was.

"It's total spin," said Martinez. "All I was told was here's all these millions of dollars and here's how they're being allocated, by category, but there's no discussion as far as ... where those dollars are landing and how those dollars are ending up in the pockets, or potentially in the pockets, of small business or business in general."

"You sit through the presentation, and at the end of the day you're sitting there thinking: I didn't learn anything."

Martinez, who has served on the board of trustees of Metro State College, where Pleau gave her talk, said he knows that education stimulus dollars have been used to "backfill" against budget cuts, a strategy school administrators claim is the only way to protect current programs and jobs.

But the banker asks: "Where's the stimulus in that?"

And he's right. He said he has no clients who have reported to him that they have been able to tap into stimulus dollars, and he said SBA loans cited by Pleau in her talk would have been been made to qualifying businesses despite the stimulus effort. Martinez did acknowledge, however, the federal government has made it easier for banks to make some SBA-guaranteed loans.

Small, $35,000 loans being made available through SBA to small businesses as emergency funding are not profitable to banks and are designed to go to businesses who are poor loan prospects, Martinez said. You can read more about the limited success of that SBA emergency loan-program in today's Denver Post, http://www.denverpost.com/.

Banks across the country have been reluctant to loan money through the program. "We're not a charitable organization," Martinez he added. "We're a financial institution."

But to get back to Pleau's small-business coaching, or lack of it, there are some legitimate reasons for state government to not hold hands with businesses seeking federal money to fund new growth. The press and political critics could perceive the help as favored treatment.

But Pleau's "outreach" efforts need to go beyond talking about where the stimulus money is being spent.

Minority-owned businesses have historically been left out of Colorado's procurement process, and true "outreach" will help small businesses directly connect with state agencies and other organizations distributing stimulus dollars through grants and contracts.

There's no sense in talking to small businesses about $87 million to be spent on school construction work in the San Luis Valley unless small businesses, minority-owned businesses, and women-owned businesses can share a piece of the $87 million pie.

The state, so far, has failed to open up a direct path for small business to such work.

Small-business developer: David Laverty

Last week, President Obama reminded banks who receive bailout funds that they should be lending to small businesses, because small businesses are among the taxpayers who helped bail them out.

Small firms, the president said in his weekly radio address, "must be at the forefront of our recovery."

Obama ought to recruit David Laverty to his cause.

Laverty is one of those entrepreneurs who believes the marketplace, no matter how distressed by slowdown or recession, still has room for him, and that his business-development skills can make a successful entrepreneur out of anyone with a good business idea.

Laverty is a business consultant. He advises prospective owners of small businesses on the basics of starting out: how to create a business plan that plots the way to bring a product to market; how to create a marketing plan that will sell the business; and how to design a website to help carry out a marketing plan.

He's learned over the last 24 months -- the months it has taken him to bring his own business to the stage where it can support him -- that a business consultant nowadays must also be ready to do the work required to back up his advice.

And so Laverty winds up writing much of the content for a new business's website, working with website-design specialists to produce a site worthy of his client-business's product or service, and actually writing the business plans and marketing plans the client has signed him up to devise.

That effectively is a redefinition of a business consultant. Often in the past, the consultant merely provided his or her expert advice to a new company, leaving the business owners to put the expert advice into play.

But the last 24 months haven't been easy for Laverty. He has been forced to use the tools he is urging on other small-business operators to create his own firm, which he calls Marketplace (the logo shown above).

Laverty says the economic downturn has had its impact on his own firm.

"Whenever there is kind of a national news story that casts doubt about the overall economy," he said, "I notice a tapering off in business-plan activity."

"I think the entrepreneurial dream is always there," he said. "It's just a lot harder to get money. It's almost impossible to get money through traditional lending unless you can back every red cent of it up with real-estate collateral."

Obama last week not only urged bailed-out banks to increase their lending to small businesses, but he announced a program to allow small, community banks to borrow TARP funds to lend to small-business customers, and he raised borrowing limits for U.S. Small Business Administration loans.

"Now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," Obama said in his Saturday radio/Internet address Oct. 24.

Small businesses have often been cited as the nation's primary driver of job creation following an economic downturn. Downturns are also famous in Colorado for driving employees of down-sized companies into business for themselves.

Laverty hosts seminars for current and prospective business owners, gathering a mix of consultants together to share startup expertise with small audiences, almost creating one-on-one counseling. He earned his stripes for conducting such group sessions as a volunteer with the South Metro Denver Chamber of Commerce and as an employee of American Business Advisors, an established south Denver business consultancy.

Since then, he has taken on dozens of clients, many of whom are just starting out. Jess Tarin, for example, along with his partner Steve Niemczura, next week will officially launch BidPuppy.com, a website that matches service providers -- from home-repair contractors to lawyers -- with consumers who post projects for the vendors to make bids on.

Tarin said Laverty's help and advice was essential to the project. "He did good work for us," he said. The website firm is already registering vendors. Tarin said BidPuppy will go live signing up consumers' jobs on Wednesday.

For the first year Laverty worked on his own, he generated only about $30,000 in revenue and had to supplement his cost of living with other means, help from friends and family. In 2009, however, he is turning over about $70,000, which represents for him "a huge breakthrough. It means I'm viable," he said, "and paying my bills and paying my mortgage."

That's the way most entrepreneurs start out. With a dream and prayer. And often times, too, with a new product they can make or sell, or a service they are good at performing. But starting a business is much more complicated.

"The diversity of skills [required] to run your own business is huge," Laverty said. The entrepreneur's core strength is the making of their product or provision of their service, he says. "It's not a wise use of their time" to spend weeks and weeks on the minutia of business development. That's where the business consultant comes in.

Because of the Internet, Laverty works with both local and out-of-state clients. He recently wrote business plans for two separate customers in Kansas City, visiting each customer face-to-face over the past few weeks. He's also helping a Denver-area woman launch a dog-rehabilitation shelter, and he has written a business plan for presentation to an investor by another client who seeks funding to launch a smokeless, "nicotine-delivery" product.

And business has picked up with this fall, Laverty said. He still uses Craig's List and other free listing services to promote his firm, and recently took out an ad in Yellow Book -- marketing techniques he also advises clients to use.

That's what Marketplace is all about. Making a market and reaching a market for new businesses.

In his Saturday address, the president also repeated the assertion that small business has created nearly two-thirds of new jobs over the past 15 years. David Laverty's Marketplace is just trying to do its part.

Marketplace
1601 S. Carr St.
Lakewood, CO 80232
David Laverty, owner
david@marketplace1.net
303-237-8838

To be ethical, think about it

About 200 people from a mix of 29 Denver-area companies and government agencies heard a talk on business ethics this morning from Marianne Jennings, a professor at Arizona State University.

No, the managers from the 29 organizations sent to listen to the lecture weren't being put in time-out by their employers. But as Jennings listed the drivers of a series of ethics lapses that have occurred across the nation in business over the past decade and more, the audience was peculiarly quiet.

As if the subject of broken consciences was somehow familiar.

Jennings cited a survey done periodically by KPMG, the audit firm, that found 74 percent of respondents in 2008 reporting they feel pressure at work "to do whatever it takes" to get their job done. Ethics or no.

Another survey found only 9 percent of employees reporting they enjoyed an "ethical culture at work"; and 99 percent of respondents in another survey judged their own ethics to be higher or equal to their peers in the workplace.

At the outset, Jennings showed a list of 50 companies that made national headlines for ethics scandals stretching backward over the past 15 years: Adelphia, Boeing, Merrill Lynch, Enron, Qwest, Bank of America, "KPMG (twice)."

Margie Mauldin, whose Executive Forum hosted Jennings' appearance, said she put "ethics" on her nine-month agenda for the Forum's leadership series because of the financial industry crisis of the past 18 months and the Great Recession that it caused.

Mauldin has been a friend for years, and her picture appears at the left in my list of followers. She invited me to sit in on the high-dollar leadership-training session on ethics because she knows I have always been interested in the subject.

Pressure at work, Jennings indicated, is the #1 driver of "ethical and legal debacles." Pressure to perform, pressure to conform, pressure to keep quiet when speaking up will cut across the company grain. The pressure starts in high school and grows through college and graduate school until it reaches the workplace, Jennings said.

She offered several strategies to relieve pressure and encourage an ethical performance:

• Think long term within the company, rather than only about short-term results.
• Develop a company creed, and practice it, especially within executive ranks.
• Solve ethical dilemmas by devising alternative solutions; talk about the alternatives among colleagues.

"We are all going to hit walls in our jobs and in our careers," Jennings told the group. "There's no perfect organization because human beings run them."

Jennings also advised asking questions. And yet, following her presentation, less than a dozen members of the audience had any questions to ask. "You're all ethical-ed up?" she asked rhetorically?

But even I stayed silent. The question hanging in the air between members of the silent audience was still: Why? Why did two decades of business misbehavior only get worse as time went on? Why were every five years of scandal followed by another five years of new scandal?

Jennings said most people realize when they are stepping outside the bounds of their own professional or personal ethics, but many will do what they do anyway. They rationalize their action with some self-styled "noble" purpose: You do it for your kids; to survive; just this once; or because the end is justifiable.

Wrong! she said. Look for an alternative that preserves your standards. "It's possible to be ethical in business and be very successful," she said. All you have to do is think about it.

Going to the brink and back, and not learning the lesson

Tuesday morning I posted to my Facebook friends a link to an excerpt from Andrew Ross Sorkin's new book "Too Big to Fail: How Wall Street and Washington Fought to Save the Financial System -- and Themselves." I hadn't yet read the piece, but judging from an interview Sorkin gave to Charlie Rose on Monday night about his book, I had thought the excerpt might shed some light on the recent attacks of Big Business on the Obama administration.

(Photo credit: foxbookshop.indiebound.com)

Rose mentioned the assault himself. Big-bank lobbyists are teaming up to oppose new regulations for the financial industry that Obama has proposed to reduce the chances our nation might once again step to the brink of a Great Depression 2.0, as it did a year ago.

Also, last week, the health-insurance industry finally let drop it's opposition to any health-care reform by lying about the prospect for higher health-insurance premiums if currently proposed reforms go through. To my mind, the industry's contention only strengthens the argument that a public option must be included in any health-reform package. The insurance companies, after all, would be the people raising the rates!

A public option, offering lower rates, would compete against those very companies, and keep them from raising the rates if they wanted to keep their current customers.

Then on Tuesday, too, The Wasington Post, reported the White House was trying to sidestep opposition from the U.S. Chamber of Commerce, big businesses' highest paid lobbyist. The U.S. Chamber is bucking up against the administration on several fronts: health care, global warming and financial regulation.

To get around them, administration officials are visiting with individual CEOs over their company's positions on such issues; and several big firms, Apple Inc. in particular, have dropped out of the chamber because of its harsh opposition to administrative iniatives.

Did anyone really believe big business would turn the other cheek in these battles with a centrist/liberal administration that still holds majority support among voters?

"People" are beneficiaries of all the Obama initiatives, and that's what big business and some small businesses are opposed to.

You cannot save the middle class and the poor in this country, without taking something from the establishment and the rich. It's time the rich gave back what they, in cahoots with a free-market government, have slowly, inexorably taken away.

Sorkin's excerpt doesn't give much of a clue to any of this, but he indicated to Rose that the word "Themselves," in his subtitle suggests one of the most disturbing things he found in writing the tome. Wall Street is a club of rich people who also serve in government, and their actions in both arenas are taken with their own self-interest top of mind -- or at least as top-of-mind as the greater good of all Americans, which undeniably also remains one of their motives.