Knowing when to say when (closing up shop)

Karen E. Klein has a great article at www.businessweek.com where she answers a reader’s question about when to close down the family business.

I find the conversation intriguing because I just got down working on a similar chapter in my book “Playing To Win”.  My focus though was on refining your business model.

A common excuse that people make when their business is losing money is the the economy sucks, but I point the example of Southwest Airlines in a fairly saturated airline industry.  They continue to make money while not charging for bags, and not charging change fees on flights.  Other major airlines continue to lose money consistently and the only thing saving them from losing even more money are the outrageous baggage fees and insane ticket change fees.

Most airlines don’t have a model that will allow them to be profitable, yet they refuse to change.  Southwest is designed to succeed.  They are playing to win.  There is no luck associated with doing what they’ve done for 30+ years.

Do I need to talk about the major banks and their losing business model built around overdraft fees?

Karen E. Klein article from www.businessweek.com

Republicans Vote To Kill HAMP Program

As reported by Yahoo! News through Reuters and reporter Corbett B. Daly, House Republicans have voted to kill the Home Affordable Modification Program (HAMP).

In theory the program was designed to help homeowners struggling with their mortgages to get modification programs through banks and lenders to stay in their home.  In essence, this was a response to the common question from homeowners after  TARP – “where is our bailout?”

In practice though the program has been very rigid, and in my law practice I have seen that banks have been reluctant to act within the spirit of the law and in most cases have been rejecting seemingly qualified consumers and foreclosing on homeowners who are in the process of obtaining modifications under the program.

President Obama has already indicated that he would veto any bill that would seek to over turn the HAMP program.

The question that comes to mind is this, is this a bad program and one that needs to be killed or is this a program that can be tweaked?

Take the poll and tell us what you think.

Read the Yahoo! Article here…

Learn about our foreclosure defense practice here…

Playing To Win – April 6, 2011 as part of Money Week

I am excited to be part of Money Week Houston 2011 and to be rolling out our “Playing To Win” program.  This has been years in the making and the result of lots of research, application, and input from colleagues, and clients.

From our work with turnarounds, successful start-ups, to other work with businesses that have died on the vine, we have been able to extract a few key approaches that work and some that do not work.  We have also identified the Seven Deadly Business Sins and how to avoid them.

In just 90 minutes, our interactive seminar will help budding entrepreneurs and seasoned business owners to focus on the most important issues in their business and leave the seminar ready to take immediate action.

Houston Community College System has been gracious enough to host two 90-minute sessions on Wednesday April 6, 2011 at 10:30 a.m. and 6:30 p.m.

The cost of this event is generously underwritten by Money Week Houston and Houston Community College.  To register and reserve your spot please contact my office by phone or email or visit the Money Week website at www.moneyweekhouston.org.

The goal of Money Week is to help individuals Get Money Smart by providing free financial education by providing free financial events.  Money Week is coalition of approximately 200 partner organizations with a common goal to educate consumers about getting smart about savings and money management.

Money Week 2011 will kick off at Toyota Center with an All-Star Financial Event sponsored by Walmart and Woodforest National Bank at 4 p.m. on Friday April 1, 2011.  Tickets are only $10.00 online.

For more information please visit www.banks-attorneys.com or call my office at (832) 582-8289.