Mark Cuban offers funding for businesses
Mark Cuban, billionaire owner of the Dallas Mavericks, has offered to invest in businesses that file business plans on his blog. He calls it the “Mark Cuban stimulus plan — open source funding.” All details of the business, and of Cuban’s investment in whatever businesses he chooses to help finance will be posted on his Blog Maverick.
But his financing isn’t available for just any business. Here are some of Cuban’s rules:
1. It can be an existing business or a start up.
2. It can not be a business that generates any revenue from advertising. Why ? Because I want this to be a business where you sell something and get paid for it. Thats the only way to get and stay profitable in such a short period of time.
3. It MUST BE CASH FLOW BREAK EVEN within 60 days
4. It must be profitable within 90 days.
5. Funding will be on a monthly basis. If you dont make your numbers, the funding stops
6. You must demonstrate as part of your plan that you sell your product or service for more than what it costs you to produce, fully encumbered
7. Everyone must work. The organization is completely flat. There are no employees reporting to managers. There is the founder/owners and everyone else
8. You must post your business plan here, or you can post it on slideshare.com , scribd.com or google docs, all completely public for anyone to see and/or download
9. I make no promises that if your business is profitable, that I will invest more money. Once you get the initial funding you are on your own
10. I will make no promises that I will be available to offer help. If I want to , I will. If not, I wont.
11. If you do get money, it goes into a bank that I specify, and I have the ability to watch the funds flow and the opportunity to require that I cosign any outflows.
12. In your business plan , make sure to specify how much equity I will receive or how I will get a return on my money.
13. No multi-level marketing programs (added 2/10/09 1pm)
Don Mecoy
Business Writer
Buffett says economy can be saved by the ukulele
Warren Buffett tells you everything you want to know about his favorite instrument, the ukulele. He also answers a couple of serious questions about the economy and capitalism. He first appears at about the 1:00 mark. (via boingboing)
Don Mecoy
Business Writer
Where the jobs come sweeping down the plains
Smart Money magazine recently featured five areas with promising job prospects. Oklahoma was one of those areas (along with Texas, Utah, D.C./Northern Virginia and Wyoming).
From the Web site:
Oklahoma’s employment outlook is a far cry from that of the Dust Bowl era. Known for producing and distributing wheat, corn and cotton, the state reaped some nice profits from its agricultural roots last year, says Bland. It was also helped by its exposure to the oil and natural gas industries. Not only that but the state’s capital, Oklahoma City, currently boasts a 4.6% unemployment rate, the lowest of all the larger metropolitan areas. Some of the state’s big employers include Devon Energy, Chesapeake Energy and utility company Oklahoma Gas & Electric, a unit of energy-services provider OGE Energy. The stimulus bill could add an extra jolt to the state’s energy sector, which could help create posts for engineers and technicians positions, says DeVol.
Don Mecoy
Business Writer
No interest rate buy-down this go-round
Could the federal government step in and somehow directly force mortgage interest rates lower? Not in this go-round of legislation, apparently.
Scott Senner, a mortgage consultant with First Commercial Bank in Edmond, with the votes on the Senate version of the stimulus package still echoing through the chamber, got my ear today and asked me to get the word out:
“Both future and current homeowners may be very disappointed to find out that the Senate’s version of the stimulus package does not contain any ‘interest rate buy-down’ provisions. For those people that had been waiting for the government to somehow step in and create lower interest rates for both purchases and refinances, it is game over. While there is still the outside possibility that the House and Senate may add something later, the incredible cost to achieve a rate buydown will probably prevent it.”
Well, with history being made every step of the way right now, I’m not so sure of that. There’s no telling what the House and Senate will do to this gargantuan piece of sausage in committee.
On the other hand, Scott handles mortgages, and I just write about them. Further, I think it’d be silly of anyone to base a decision on whether to buy a house, or refi, on something that’s so iffy.
Scott went on: “On a positive note, interest rates are still very attractive without any government intervention.”
And on that, we totally agree. If you need a house, and can buy a house, now is the time to buy one. If you can come out ahead by refinancing, go for it.
Richard Mize
Real Estate Editor
Demographics and investing
I wrote a story about author and economist Harry Dent’s upcoming appearance in Oklahoma City that appeared in Sunday’s editions of The Oklahoman. A few readers scolded me for failing to point out some of Dent’s misguided forecasts. For instance, he once predicted the Dow Jones Industrial Average would reach 40,000. As I told these readers who complained about the story, I think consumers take any investment advice with a grain of salt. I found Dent’s approach to be unique, and in stark contrast to much of the conventional wisdom currently being offered.
This video is with Edmond money manager Nick Massey, who uses Dent’s demographic research in developing his economic outlook. Massey, vice president of Householder Finance, is sponsoring Dent’s appearance at 7 p.m. Feb. 17 at the Cox Business Center. The event is free and open to the public, but reservations are required. Call (800) 337-6108 to register. I’d be interested in hearing from folks who attend Dent’s presentation.
Don Mecoy
Business Writer
Pickens tip of the day
Widget link above taken from pickensplan.com
—
Since the day it was launched, the Pickens Plan Web site has done a good job of organizing and supporting backers of Boone Pickens’ initiative to boost wind power and natural gas energy. One of the regular features that I have found interesting is the “Fact of the Day.”
A few examples:
– 70% of the oil we import is used for transportation.
– In 1970, we imported 24% of our oil. Today it’s nearly 70% and growing.
– The top five states, in terms of wind power generating capacity, are Texas, Iowa, California, Minnesota and Washington.
– The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over 7 million cars off the road.
Don Mecoy
Business Writer
Congressman: Fed staved off economic collapse
Here’s a remarkable recollection of a near economic collapse that occurred in mid-September. Speaking is Rep. Paul E. Kanjorski of Pennsylvania, chairman of the Financial Services Subcommittee on Capital Markets.
Kanjorski notes that $550 billion was withdrawn from money market accounts in “an hour or two.” Federal officials reacted quickly, he said. The following section occurs at about the 2:20 mark of this C-SPAN video.
The Treasury opened up its window to help. It pumped $105 billion dollars into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there. that’s what actually happened. If they had not done that their estimation was that by 2 o’clock that afternoon, five-and-a-half trillion dollars would have been drawn out of the money-market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.
It would have been the end of our economic system and our political system as we know it.
Don Mecoy
Business Writer
Job losses in current recession dwarf earlier recessions
Here’s a scary chart from The Gavel blog by U.S. House Speaker Nancy Pelosi. The green line represents job losses in the current recession. The red and blue lines show job losses in recessions in 2001 and 1990, respectively.
This chart compares the job loss so far in this recession to job losses in the 1990-1991 recession and the 2001 recession – showing how dramatic and unprecedented the job loss over the last 13 months has been. Over the last 13 months, our economy has lost a total of 3.6 million jobs – and continuing job losses in the next few months are predicted.
By comparison, we lost a total of 1.6 million jobs in the 1990-1991 recession, before the economy began turning around and jobs began increasing; and we lost a total of 2.7 million jobs in the 2001 recession, before the economy began turning around and jobs began increasing.
Don Mecoy
Business Writer
“I’m not a mathematician”
Obviously.
Hear a Verizon customer attempt to explain to customer representatives the difference between 0.002 dollars and 0.002 cents.
Don Mecoy
Business Writer
Devon Energy: No layoffs ever
We recently ran a story about several Oklahoma businesses that made Fortune’s list of the “Best 100 Companies to Work For.” As part of Fortune.com’s online coverage, the writer takes note of several large companies that have managed in good times and bad to avoid ever laying off an employee.
Devon Energy, which placed 13th overall in the list of top 100 companies, was featured:
The company has been able to avoid layoffs by making sure it keeps costs low during economic downturns and booms alike. Before the current crisis, Devon chopped its operating budget to match its cash flow from oil and gas production.
Devon also takes a prudent approach to hiring, maintaining an efficient workforce of highly trained employees. Voluntary turnover is a steady 4% a year. And instead of the traditional annual salary review, the company’s compensation process is flexible: In slow years, employees sometimes forego raises, and in good times, they may be rewarded with midyear pay increases.
That has got to make Devon employees feel pretty good, particularly when the company’s earnings reports turn sour.
Don Mecoy
Business Writer
