As the anniversary of 9/11/2001 just passed yesterday, it is time for reflection.  This is the time when we examine what we have learned from that horrible day.  We consider our gains and assess our losses.  We review the steps  we have taken to make this country safer, and we review the things we need to do to prevent another  terror attack.

As with any other things, people have their opinions about the laws we have passed and the measures we have taken.  Some point to the airlines checks, the screening, being compelled to take your shoes off, and declare these measures far too invasive.    Some believe our stringent measures have worked to insure the safety of the United States against another terrorist attack.

Others regard background checks for buying guns as an infringement upon their rights.   Like most major issues, any side can provide valid points from their own perspective.  Unless an opinion is totally off the wall, there is at least some measure of accuracy, a modicum of truth to the assessment.

It is with this in mind and the terrible day ten years ago that I reprise this article I wrote back in June.  It is entitled, Al Qaeda Advises Terrorists to Avoid Background Checks and Buy Arms at Gun Shows.   I think it is worth the read.

Employment credit reports are taking a lot of heat these guys.  Several states have limited their use and now the next battlefield is California.  Certain civil groups claim the use of consumer credit reports for pre-employment screening is discriminatory and unfair, especial in this present economic downturn.    The opposition claims that employer rights are limited and that “increases the potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process.

I know everytime I report anything about this, I get some flack for it.   A lot of people in search of work bleieve they are being mistreated.  Many employers complain that they are then forced to spend too much time dealing with employee creditors.  Anyway, I am not about to comment on this here.  My last blog article pertaining to employment credit reports will be published, tomorrow, September 23rd.

Meanwhile, I want to list the pros and cons as they have been listed on various websites.  So here are some of them…….

The Proposed California  Law, known as AB 482 (mendoza) that would restrict employer use of credit card reports as a background check for pre-employment screening purposes.

California Chamber of Commerce in what it lists as “Job Killer Bills,” had this to say–Expanded Employer Liability – Increases potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check  process.

California National Organization of Women “AB 482 (Mendoza) Ban the use of pre-employment credit checks. Support

Status: to Enrollment.

“AB 482 (Mendoza; D-Norwalk) Expanded Employer Liability. Increases potential liability exposure for hiring decisions by unduly restricting the ability of businesses to use consumer credit reports as part of the background check process. Hearing June 29 in Senate Judiciary Committee.

The League of California Cities Website.  ”AB 482 (Mendoza). Employment. Credit Reports. Prohibits an employer from using credit report information, for employment purposes, unless “substantially job related,” which could result in confusion, disagreement, and litigation over what is a “substantially job related” purpose.”

California Assembly Member and Author of the Proposed Bill, Tony Mendoza’s Website–AB 482 (Credit Check) - The bill would ban employers from using consumer credit reports in the hiring process.

From the Orange County Reigster–Top 20 Bd Bills Gov. Schwarzenegger Should Veto…”AB 482 (Mendoza) – Prohibits employers from considering an applicant’s credit history during the hiring process.  (Interestingly, the U.S. military uses credit checks as one means to determine the trustworthiness of military personnel to hold secrets.)

California Assembly Committe on the Judiciary Report

We all watch the shows where financial experts tell us how to invest our money.   We watch Jim Cramer or Suzie Orman, and we listen to others on the radio, read them online or in the financial papers.   We read their financial newsletters, oh sage-like documents that they are, and sometimes we follow their advice.  Which is how some of us got into this fine mess.

Financial advisers got it wrong.   Your stockbroker, the financial group of one sort or another who for the past dozen years has been flirting with you and, more importantly, your retirement money.  How to retire and live like a king, start that second career, have nine houses around the world.  Whatever.

Turns out the only people with nine houses around the world are the financial experts who took our money or traded in in mortgages, stocks, anything that moved where they could add percentages on paper and walk away with a hefty bonus for doing what they call work.   So now here we are.   This is a new world, albeit a poorer one.

All the more reason to conduct business research, be it for your business or personal endeavors.   We have all heard of Bernard Madoff and his Ponzi scheme.   We will hear of many more Madoff’s in the future.   There will be scam artists of all sorts that will be investigated, indicted and imprisoned.   Because they made off with your money.

If you are a business, the it is really incumbent upon you to do the responsible thing.  The responsible thing is due diligence on your suppliers, your potential clients and any group with whom you are considering a partnership or co-venture.   For these you conduct business credit reports and comprehensive background reports on their key officers.   Background checks are more important than ever, and those who don’t run them are doomed for some ugly news.

So when you watch the TV and watch the financial advisers you once favored or found with at least a modicum of insight, listen to how they try to cover past mistakes.   They will do a complete turnaround on their theories, strategies and, even, principles.   And there are those out in this world of economic meltdowns that will do even worse.  If you give them chance.

Don’t give them the chance.  Check them out before you put up your money.

There has been a marked change in the weather.   At the Weather Channel that is.  NBC Universal had bought the Weather Channel back in September.   Now come the layoffs and the buyouts.  I suppose there is not enough weather to go around.

While in this harsh economy it is necessary to cut costs, cutting staff is not always the best of solutions.  Sometimes it is, mind you, and there are situations where it is strategic to cut back on employees.   but other times employee layoffs are a reflexive action.   They are a planned action, but those making the choices do not always understand  the ramifications.

If you have a business that brands itself as distinctive and special, this is often your edge over your competition.   But when you start cutting staff your customer service will suffer, your internal efficiency.  In fact, whatever distinctive qualities you have as a business may be lost in the shuffle, and you are just another generic company.  Layoffs will often lead toward the generic.

In the case of the Weather Channel, the programming while necessarily repetitive was also quirky and highlighted with special features.   The weather casters at times were odd ducks, kind of lovable outcasts from local television channels.   They didn’t try to overwhelm you with the magnificence of their warm and fuzzy personalities,  call it cornball, the way the locals often do.  There was something offcenter and engaging about the Weather Channel men and women.

If  you tuned in during the middle of the night or real early in the morning, often you would find the casters struggling to stay awake.   they would all but yawn int he camera sometimes.   I found it endearing.  Hey, how many times can you go over the weather in Syracuse and try to make it exciting.   Or Los Angeles, where it seldom changes.   Tough work when you are half-asleep, the coffee is just out of reach, and you are trying to be friendly.

So let’s see what happens?   There is an example here how you can take something that is original and in the religious belief you are being cost effective cut the guts out of it.   too many layoffs will cause such an overload.  He can be original when you are struggling just to keep up with your duties?    I hope the Weather Channel doesn’t rain on its own parade.

But who knows what will happen now?   May be it becomes little more than a bloated  version of the local news and weather.   Just another blah-blah spot on the television.

The economy in bad, people are depressed, and no one is shopping.   Busy is terrible.  There are layoffs galore.  Maybe it is time to start a business.

According to an article on AdAge CNBC Television has placed Donny Deutsch’s nightly business show on indefinite hiatus.  The show related to entrepreneurial success and provided what it called the “tool kit” for success.The network believes in this poor economy there is no place for a television show about entrepreneurs.   As AD Age points out, sardonically and accurately, perhaps the network believes it is time to put on a show about failure.

I believe as well that they are wrong in ending the show.  I think there may be no better time to go into business. It may be risky, and you definitely watch your bucks, but as Inc.com has pointed out in a variety of articles, people who can start up a business and succeed in a lousy economy are the ones who flourish in good times.   Additionally, there are businesses that are made for recessions.  Businesses that can give value, service and be innovative in their delivery.

To start a business, like I wrote, you need to watch your bucks.  You have to keep your overhead down.  So this means hiring the right people who are multi-faceted in their skill sets.   You should be running background checks to be sure your candidates are up to the task.  As for your vendors or clients, you need to conduct corporate research and business credit reports to make sure they are whole enough in this economy so they can pay you.

Check them out and get going.   Especially if you have been laid off and the next job is hard to find.  Start a business.

For several blog pieces now I have taken note of the slaughter in the media industry.   The news industry, especially, has been decimated by layoffs and publication failures.   For every media group, it seems, laying off a thousand employees or more is only a start in the cost cutting.   Marty Pompadur, the exiting Chairman of News Corp Europe recently predicted a steep recession for the media industry.   Long and very deep.

In the face of the downturn I have been suggesting in different blog articles that savvy business hire laid off journalists to handle some of their proposals, marcom materials and to assist with public relations opportunities.   Apparently, Former General Manager of MSNBC Dan Abrams had a similar idea, only he took the concept a major step further and went into business for himself.

According to the Wall Street Journal, Abrams has founded Abrams Research, a media strategy firm.  The new firm is designed to assist senior executives in dealing with the public relations challenges they confront on a regular basis.    The public relations issues can range from blogger adversity to mergers and acquistions.

Abrams has assembled a network of media personalities who will work with clients.   The firm will be charging an hourly fee.   In all, it is not only a terrific idea it is one whose time has come.   Certain public relations firms may be equipped to handle this kind of subject matter.   But a good many are not.   Additionally, this kind of work requires hand holding and lobbying, interfacing with the media on levels the average public relations executive would find inaccessible.

Given the roster from which Abrams can draw, I am sure the preemployment screening aspects will prove a snap.   As more and more media people are laid off, he will have a rich pool to choose from.  So will you, if you belive you can retain media savvy folk for in-house assignments.   Even for contractual work, or part time.

It’s a smart move.   Check them out before you hire.

There is nothing like an economic downturn to think about doing a business makeover.   You might want to consider the business model itself, your branding, logos, colors, symbols, and especially your marketing and merchandising efforts.

Pepsico is doing a total business makeover.  To the tune of $1.2 Billion over the next three years.  A recent article in Advertising Age reports that Pepsico will be closing six plants and laying off thousand of employees.   The business will revamp the branding on its carbonated soft drinks and will review the branding on its Gatorade products as well.

Why?  Business is lousy.  Sales have fallen off.   With respect to soft drinks, in tough economic times people will drink tap water and eschew the dubious virtues of carbonated soft drinks.   Pepsico will change its logos so that the core Pepsi Cola will show a series of smalls on the white part of the label, a grin will be used for Diet Pepsi, and Pepsi Max will display a laugh.  I say forget the smiles, laughs and grins.   Perhaps it would be better to reexamine the possibility of switching out the icky corn syrup sweetener and replacing it with sugar, just like in the good old days.   That would go a long way, I believe, in gaining new appeal.   But, hey, for $1.2 Billion they are entitled to make their own mistakes.

So with Pepsico doing this huge makeover, is it time for you to look at your own business?   In this great economic bakeoff it’s time to see which aspects of your programs work for you and which do not.   Look for ways to cut costs by making your business more efficient.  Look to hire employees who can bring you up to the cutting edge of business technology.   Be sure to have a preemployment screening program in place to make sure they are who they say they are.   Conduct business research and business intelligence so when you conduct business development you are not fishing for loser clients who can’t pay their bills.

If you have cash, then use it as a resource to cut better deals with your vendors and suppliers.  There are so many late pays right now you can cut yourself better rates and service by virtue of your ability to pay, and to pay quickly.   Look over your branding, your logos.  Make sure you business model is fresh and not outmoded, reminiscent of these sorry times.  Change what you need to change.   As for the forthcoming Pepsi-type smiley faces, I’ll leave that up to you.

U.S. Treasurer announced the the United States government will buy equity in U.S. Banks.   The government hopes that will hope stem the economic downfall.   We shall see.

A few days ago, I wrote about the very controversial billionaire, George Soros, being the one who first proposed this very plan.  It was pooh poohed at first, termed socialistic and from a bad source at that.   Then the United Kingdom moved on this plan, and now the the United States had seized the notion.

Hopefully, this will reverse the economic downturn.   Money will be made available for small businesses, and the larger corporations may move forward, no matter how tentatively.  Hopefully.   Whether this happens, remains to be seen.

But the smart money will take bold steps in this economic environment.   While others stagger or freeze in their tracks, the more intrepid will seize opportunities.   They will expand their businesses and profit from their competitors’ indecisiveness.   They will hire the employees who can not only help them sustain their businesses, but take them to higher levels.

While others listen to the talking heads talk about what you know already, and while the rest are pointing fingers and searching for new ways to place the blame, there will be those who use this time to move forward.   If you are on of those, conduct business research on all your potential clients.  You want to be sure they are not coming to you out of desperation, because they have burned their bridges elsewhere.   We had one client who just discovered that was indeed the case with one of his customers.   But, unfortunately, he found out after the fact.

Be smart.  Do your research before you extend credit, ship goods, or make available your services.   And be sure to be careful who you choose to hire.   You want a job candidate that can help you move forward and not some other company’s dead wood.  Or worse, corrupt wood.  So be sure to conduct preemployment screening searches on whomever it is you are hiring.   It can save you a bundle in the long run.

As we always say around here–Check them out before you hire.

When

Okay, so the country rages about bailouts and severance packages, causing at least some politicians to exhibit a rare display of conscience.   People resent bailing out the privileged and those who squandered their money.  Nevertheless, the bailout package passed both houses, mostly out of an act of desperation than a deliberate strategy.

You would think when you receive this kind of rescue from Uncle Sam, the taxpayers of this country, that you would at least be a little bit cool.  You would think you would keep a low profile.   And above all, you would think you would start tightening the belt, watching the bucks and looking to be more cost effective.

Naw.  According to an article in the Los Angeles Times, AIG, which just received $85 billion in bailout money, took its executives on a luxury retreat to one of Southern California’s most expensive resorts.  The cost for this little junket was about $440 Thousand.   For the morbidly curious, that sum broke down to $200 thousand in rooms, $150 thousand in meals, $23 thousand in spa charges, and, of course $7 thousand for golf.   After all, what can company executives do after they just drove one of the leading American corporate icons into the ground but golf?

People are outraged, as well they should be.   After the great capitalists of the world came hat and hand to Uncle Sam, you would think they would show just a little discretion.  Apparently, it hasn’t sunk in yet that the salad days are over, especially at the expense of the American public, the person who has to work for a living for a lot less than several million a year in bonuses.

So has your company gotten the message?  Are you still operating as if the salad days have not yet faded out of view?   Do you squander money and offer bonuses not to the workers who can keep your business afloat but to the executives who are running into the ground?

Have you reevaluated your expenditures and reviewed what works and what doesn’t?  Hopefully, you have figured out how to cut your costs and increase efficiency.   As your competitors fall by the wayside in this tough economy, are you looking for ways to pick up their clients and increase your own business?

To do so you need to conduct corporate research and business credit reports to be sure the clients you do pick up can still afford to pay you.   As we have seen, bad credit clients can lead to disaster.  Yours.   And for the employees you do recruit right now, you should be running background checks to make sure they will not bring you embarrassment, or cause you the expense of litigation.  You have to be sure your new job candidates can actually do what they say they can do.   Good hires can be very beneficial.   Bad hires, at a time like this, especially, can cause serious pain.

There are valuable lessons to be gained by history.  History, among other things, offers templates for survival.   Taking a glance back and thinking in modern mindsets, we can not only survive but prevail in these times.  It takes more work.   Most of you have been working hard enough, and now you may be working harder yet.   Be grateful.  The other side of it is that you may not be working at all.

I believe it was the ever controversial global financier George Soros who offered what was to me the sanest remedy for the financial crisis.   Rather than have the government buy a lot of bad paper, worthless loans, etc., he proposed something quite simple.

Soros proposed that since a cash infusion was the most vital aspect of recovery and would help reduce the tight credit, the Fed should invest money directly with the banks and then take an equity position in each of the banks that borrowed this much needed cash.  There was a lot of moaning on Wall Street about his proposal, probably because a lot of those who caused this debacle in the first place would stand less of a chance of profiting from the government bailout.   Some even declared Soros’ plan was…gasp…Socialism.  If that is the case, and you can certainly argue it is, then how do the same people regard government ownership of the collapsing brokerage houses, mortgages and institutions like AIG?

Anyway, days pass and the market keeps on dropping like an anvil in an air shaft, and now the Fed announces it will be lending money directly to businesses outside the financial sector   This was reported by Yahoo and the other news agencies.   In fact, the Fed will be picking up the commercial paper various business accrue to pay salaries and buy supplies.

Look, we all know with things as bad as they are it is incumbent upon the government and everybody else to do whatever they have to do to pull the economy out of nose dive.   But like most of those reading this, increasingly I get a feeling that there is growing desperation.   To mimic the famed screenwriter, William Goldman, “nobody knows nothing,” and it is really starting to show.

Perhaps Sorors’ idea is not such a bad one, after all.   Bypass all the bad debt and give the banks money to work with.  Banks can then extend credit to businesses  and perhaps get the economy flowing again.  Maybe it will work.  Maybe it won’t.   But as we did during the Great Depression, try anything, and if it works keep doing it.   We are a pragmatic nation, after all.