Also in this playlist...
This transcript is automatically generated
-- and then Eddie thank you for joining us good morning I hope your day -- to a good start.
We're getting over the hump two more days -- their weekends it's small business Wednesday let's get started we have.
Pretty pair on -- with us right now Tencent headache the foundation founder and executive director of friends of the farmer.
Farm on its nonprofit you're gonna tell us all about it and we also have doctor Sam Simon the founder of Hudson Valley -- and a farmer your family's been a farmer for several.
Generations yes joining us now so what looks so do you test so what is tell us about friends upon our.
President -- is an idea that started in upstate New York that was a fastball that brought awareness people's food choices and sources mainly its sourcing your feet from the farm and so we -- a fast above and then from that we raise money.
To its support.
Kids ideas of going into farming which is -- new trends and the idea of giving fostering the entrepreneurial spirit back at the farm so we formed a foundation.
That -- youth programs.
And in education so we can bring awareness to the -- men and actually sustain profitability.
Seen a number of farms in the US declined drastically we're gonna called McGrath -- -- you can see honestly how it's been decimated.
Over the past couple of years from 1992 into 2012 look at that decline nine even 50000.
Farms dairy farms nationwide right now.
That was about a 13133000.
Back in 1992.
Doctor -- you've seen -- in Dutchess County where you live.
Her anymore and then in 1970 he said -- -- 330 farms and -- just trying to what's the problem.
The problem is the cost of producing quality milk.
Far exceeds what you were receiving as revenue.
And 2005 I said you know we were receiving awards for quality milk.
-- -- -- -- -- -- So what he did so I thought out of the box and said perhaps circled all the farms which I -- produce great quality -- -- -- our own milk on their own label not commingled with anybody -- milk and see what happens.
I had a taste better and works better in the lot thing.
Works better and as heavy cream and -- cooking.
And see what happens and we do that and has grown from two forms -- nine farms.
Acres of open space being preserved say kept a lot of -- on my lesson return.
And all the profit goes back to these nine farms -- they get paid what it cost to produce the product.
And what's that mean today it cost about 22 dollars under way to produce no 122 cents a pound trying to cents a pound today it's now okay they're receiving from the the co -- the general co -- twenty cents a pound.
And if you realize that back in 09 they were receiving.
Point eleven cents a pound that's why they're just was.
Onslaught of disappearing forms -- -- -- like a big difference he needs to ride him you produce at least.
Million pounds -- a year.
The math is easy you can't sustain.
You know is a staple on a lot of consumers would argue that it costs so much right now and then there's fears out there that and if the farm bill doesn't go through -- we want it to milk prices could -- like six years behind yeah.
They use that as a scare tactic but the government you know but it's not real movement from price -- stay pretty stable.
But it could cost the farmers a lot to seven days a week feed fuel was a big generator require us -- and we have no control that.
I'd make a lot of kids would say army is so old school.
Right I don't want to get into that well I think and you're -- that I'm trying to I think there's been history.
Associating with the farm.
-- would not being profitable but there's a lot of opportunity to bring.
Awareness to our food choices you're saying you know it seems expensive the -- well if you keep with the food you're cheating your health so you really have to go back to.
What motivates you like to be healthy is it good food and nutrition so.
The kids were trying to motivate not only to go in the farming but to sustain that profitability thinking.
With viable livelihoods whatever sector they take time they can be solar engineers they can.
They -- had development programs that that.
Creating new revenue stream for the farm for added value products -- trying to shift thinking bring awareness cloak.
Local eating and how more and that is to sustain a family farm and to.
Impact the nutrition and our house positively.
And that has endorsed your biggest client China our biggest finds of coffee houses out -- really in the city you know you have.
Rates -- -- the -- -- the stumped on coffee roasters and they use a lot of milk because they -- -- six ounces of milk and two ounces of coffee halfback.
So what you're drinking you know what to put in that -- makes a difference.
And there is a growing movement particularly among young people but among all -- -- -- for local.
And and for for better products have -- my associations with brands.
And familiarity we have a chat -- -- -- they had I think would disconnected from where our food comes from -- -- you can't really and we don't have a an awareness of where comes from and it's really important to understand that your food comes from a farm and it should come from the farm and you need to ask that and so.
One of the ways that we partner farm on and it's.
There has an -- -- we are splitting the difference to find that kids note for our school system.
So the kids now are gonna have more nutritious milk in the school system and it started from an article I wrote saying.
You know can can we come to the table and figure out how to feed these kids will come out the harvest club which is a farm to school program at our local school district in -- Then Gardner they they said can we better not so we want to have tonight -- found out if we can.
Find that spread and and give the kids better nutritious enough if anyone else copying you across the nation -- Who I've been approached by several states -- which -- culture in Kansas Montana.
Moment in Kentucky have called me and wanted to know what was the floor plan.
I explained to -- a couple strong horses and and farmers to cooperate and it can happen.
We're talking about dairy farmers now they this a farming problem in -- -- Yes I think people need to pay attention where their food comes from they're not paying attention starting to -- -- we are we are but it's slow slow we live in a pioneer and maybe -- pay attention yes.
You do it because you know what a day off -- cost what's your health cost what's the health care costs.
-- and it you know people are saying that you know.
Health care is mandatory now renting we get a discount for CSA programs that -- part of do we get a discount if we buy local now from my family farms.
Good point none I have some chats from our viewers -- -- -- Nelson then by 73 says it is very according to support local farmers and rain and 8416.
Farmers -- the real heroes and we need to promote that is looking ahead.
What's unique about some other questions very transparent these the -- -- only from these -- family farms they also adhere to very strict quality standard it's tested every day.
And and the taste of those speaks for itself.
Is -- net average.
Salary for a farmer.
We're farming family.
Well I think the average salary is hard for me to predict what.
I think it's.
Close to the poverty line rent.
A couple hours away a life it's not.
It's it's not it's not a high salary it's -- -- it that he.
I like any effect change.
That is they work seven days a week and if you will -- our hardware and the house have to be fed milk twice a day seven days a week.
So on the country before job interview and the -- -- -- going to be working seven days -- -- ahead.
So you know it's a way of life it's -- passion.
It is and they get up at 2:40 in the morning to make your milk so that's also why the grannies sang their heroes they are heroes -- -- -- They're the stars they are the real celebrities and that they get up every day without question and make the food that -- -- -- Slater not trying to trick you.
-- slogans or marketing programs they really are.
This is nine family farms bringing food to -- that.
Did you nutrition the talk amounted -- it's -- you wanna EU want it every day you wanna recovery drink after working out drink up not fessed up and -- a farmer can no longer sustain.
Their business their -- what usually happens we pulled up the numbers before he 62%.
Reduction in the number -- -- They sell off the land of all of the buildings are usually some minimal value -- the land and then they become houses and wants to become houses and never returned to being -- that's what happens for most of -- -- and and Dutchess County there have been lot of farms have been turned into horse farms and but they are not stewards of the land they don't quote pick the crops that are so most of them if -- go out of forming -- becomes either grown up in weeds or becomes housing development.
After San Simon and it tests that Annika thank you so much for coming on at a very even if it it yeah it -- think -- semites for either web sites up on the screen for everybody and we are -- to go to a break now we're back and it.
Welcome back everybody okay we're -- -- number nine of the government partial shutdown we called -- slim down and already it's having an effect on small businesses this is -- small business Wednesday.
Even the president is acknowledging it take -- listen.
The Small Business Administration gives out a billion dollars worth of loans every month to small businesses all across the country.
That's not happening right now.
-- it's not happening right now in our next guest is gonna tell us why and what small business is yes to those of you watching.
What you can do about it David Sussman is CEO bellcore.
World -- joining us hi David.
I learned that having him back great to see -- thanks for coming back what are some of the -- small businesses are are seeing already and I'm envisioning.
Contractors perhaps in the government.
What others are the sorts of small.
Businesses are feeling the heat right now.
Well the SBA according to the Wall Street Journal yesterday are no longer funding loans to small businesses there's going to be a backlog and even if this thing ended today which is unlikely.
There's going to be a backlog for weeks and weeks I need -- It's usually are all of facts huge ripple effects -- -- -- -- -- cut off.
Yeah it really is and many businesses need working capital they need money to expand their business by product.
And they're just not getting it and the SBA's -- it's probably gonna slow them down for months not weeks.
A lot of businesses.
-- war really close to making ends meet at the end of the month.
They rely on capitol short term capital solutions.
To keep running not to mention being able to expand and hire more workers.
What what's your temperature on that and and the effect of the shut down on that.
Things haven't changed since last time I joined you on this broadcast.
Banks are still not landing at the level that needs to be.
For small businesses.
They're sitting on a ton of cash right now and they're watching their money earned.
Pretty good returns because of the quantitative easing that -- fortune 100 in the financial institutions have enjoyed through.
Through the stimulus from the Fed which looks like it's gonna continue now with the appointment of Janet Yellen.
But what we are finding is that it is the small business it is the business owner that runs a business may be up to a hundred employees.
Which represented massive majority of small of the business out there that are not getting the loans from the big banks right so they have to go to alternative sources and that's what we are finding we're very busy with right now.
And you came equipped with tips for small businesses out there had to raise and conserve cash the first one we have here is what.
You're calling asset based lending Kenny can you office or some of the pros and cons of that.
Well unfortunately when cash slows down a lot of companies they just hold onto their cash they -- -- reserve their capital and payments slow down to their creditors and vendors.
And so when.
If you are a business that is waiting for money to be paid to you you need that money it's the lifeblood of your business.
You're not getting it from your client you may be -- to actually use asset based lending has an option.
Where you can use factoring.
Which a lot of your viewers I'm sure heard of -- you can actually financed the receivables to your business and it's almost like a bridge loan situation where you -- getting 123 months ahead.
In in payments and there are factoring companies that are out there that provide that as an alternative and what an -- if I purchase orders.
Got -- -- on commercial real estate is definitely a good way to go today a lot of -- obviously with the interest rates as low as they are.
Many terms are coming due right now that were taken out 200520062007.
On -- seven and ten year terms.
And on what we're seeing is that many of those commercial real estate properties may be under water we just I'm working on a case right now out of Maryland.
And we found that they got a a piece of property in 2006.
It was appraised.
For approximately two million dollars we just looked it up yesterday and it's been appraised at one point three.
The loan is one point five.
So what do you do you gonna have to refinance that loan may be restructure the loan with the bank.
Talked with the bank about extending out the loan or reducing the interest rates.
And if you can refinance.
That comes conserve capital for -- -- for for for your business which is obviously.
Much needed to Diana.
Good tip and then we have here on the another way to bypass some of these banks and lending institutions is to perhaps consider selling a small state or big stake in your company to -- to -- -- Yeah -- I mean you know we're all familiar with a shark tank analogy today -- you have to ask yourself.
Is this is a good match for somebody that's gonna come in and take 3040% of my company.
Management issues come into play the politics.
And and and whether or not you feel good I mean that has to be what I like to call these -- census.
Do you feel good -- -- -- about working with a capital management firm that's gonna -- replace your board.
Maybe replace your brother in law who you've had as you see up over the past twenty years and they may not feel that he's the best persons or to -- -- that the company.
And so there's going to be issues with that but the positives on that is that they may be able to bring in.
A source of cash which is much needed.
They may be able to provide opportunities by opening doors to.
Clients and vendors and other sources of of professional services that may not have otherwise been available.
And then there's some other options perhaps more risky option and I haven't heard of these.
Mezzanine financing as well as hard money loans.
Yeah out to be the we we'd like to go to those when really there is not any other option.
Unfortunately we're using more of these today than than than we ever thought we would because most businesses don't have a lot of options.
Think of mezzanine financing is a second mortgage on your home most conventional loans today woke up to 65%.
Loan to value otherwise known as LTV.
Well what happens if you need 80%.
What happens if you need 90%.
So that remaining 25 to 35%.
That you need will go to secondary -- loved it may be a higher interest loan maybe a shorter term.
It may be more expensive.
But there are companies that provide that they are called mezzanine.
Hard money is very similar to that it may be in the form of a bridge loan maybe I need it for a year or eighteen months or two years.
It will be a higher interest rate now one of the good things that we're seeing today.
And this is for your clients to understand that run small businesses do not be scared of the term hard money I would have never recommended -- a few years ago.
That hard money lenders today.
Are more conventional than have ever been where we're doing hard money loans for some of our clients through some of our lenders and we have categorized lender database that we is.
And we're seeing loans in the 678%.
Range which is in many cases comparable to what you're -- with most banks today.
Those are great -- stated Sussman thank you so much the CEO about the worldwide have extra in the danger for all that you website and I'm very much rain.
We're gonna head to a break now would that -- that.
Do you have a FaceBook account a Twitter account linked to an account.
Yelp account if you can have one of those -- -- -- account online account.
There's so many am confused social media is here is real it's confusing but it's very.
Important to so many businesses particularly small businesses welcoming Thomas when that Kia.
On that once again the founder and president of X-Factor selling systems and -- about -- the -- -- detention.
Com and you dealt with battered music and the passing you know how important social media is to running a business we'll start with you Thomas on.
What tips to incorporate social.
Into your business model but doing in a way that actually works and it doesn't just suffocate people.
Absolutely so basically with -- -- social media and Internet content is king.
So if you whether you're a plumber.
Thank you how to videos and how to pick up you know weeks -- so forth or your pizzeria -- wanna put you know food and it's a grand thank you pretty much just showed your business sugar brand.
And then use that -- social medium it's pretty easy to -- OK but what do you say people who.
Have -- if you can you really -- have all of those different accounts for one business -- -- -- -- personal accounts as well.
Depending on what's in your business -- and yeah so for example studies have shown if you're female.
70% of women -- respond to the photos and -- may rehab a dress shop and and until the women.
You may have cancer -- account and maybe not a Twitter account.
You gotta find out what medium is consistent with your brand and assistant with your clients -- don't need everything that's.
-- any -- -- encouraged customers to take the time to post reviews.
Yet all of these different sites uncertain science.
-- user critical.
Because as much as 70% of people say a decision making process based off of a social media reference social -- -- it.
Is the new word of mouth.
It's not only thing it's everything in word -- -- Marketing campaign Donna you have.
Down it and I think you would agree about that social media news we're now it is fortunately -- -- that is a wealth of information for the consumer however for the visit sorry can be extremely detrimental.
Because you can have.
The neighbor -- -- -- competitor that wants to sabotage you like -- employee.
And then a post falsely theaters on time.
Happens all the time and and like I said.
It is disheartening to that is on Hank had an extremely -- so when that happens and it does happen what should you do if you -- -- business.
Facing is that he'll review or whatever it is working with his reputation management company is a -- is key but you also want to make sure that you're working with the right way and -- of them.
Well I'm working with time taxed at a -- there.
I wouldn't wanna disclose the other companies.
However they can -- you for a lot of money.
And and they asked a thousand of them -- diet thing ask you.
They tell you they make promises that they even as we move this bad Levy is.
They still stayed prominent on the Internet.
Nothing -- to interrupt you of that -- is sometimes warranted.
And no no one is perfect not every business you're absolutely right what.
We always said our clients is when you get bad review a bit reviews we look for consistency.
And -- to look at the business side and say hey listen.
They -- five times that you have -- service in the front.
After -- you have to adopt that as part of your feedback and incorporate that your strategy we who has a reputation management firms make sure we protect your.
Reputation against stuff that are false name and less of that are true we recommend you respond appropriately.
Help satisfy that.
That client a lot of people get courage -- their fingertips like I just got my hair done I'm.
Don't love it and I think things in -- hairdresser but then rip her apart and her company apart on a review site I'm sure that happens all the time.
It -- -- this time however if you have a new company and your only open for a couple of days and you know made a great situation you don't even have clients I music going -- -- to be jealous competitor that's up the road right.
Then -- that something to be concerned about.
Larry you know you don't -- -- its clients to.
Explain -- your service and how happy they are however it is all these -- things right.
Taipei city guiding gauger customers -- personable and open and understand that social media is here to stay -- it is a new word of mouth.
I think he's a much Thomason at the end Donna -- stand out for coming on the show Tuesday -- -- and commenting here power play is next timeline Cincinnati we'll see you back here tomorrow.
Filter by section