Sign up for Feb. 21 Miami Herald Small Business Forum

Prepare your best pitch for the Miami Herald’s Small Business Forum, Feb. 21 at the south campus of our sponsor, Florida International University.

In addition to how-to panels and inspirational stories from successful entrepreneurs, our annual small business forum will include interactive opportunities with experts to learn about financing options and polish your personal and business brands.

During our finance panel, audience volunteers will be invited to explain their financing needs to the group. During our box-lunch session, they will be invited to pitch their business or personal brand to our coaches.

Those who prefer just to listen will be treated to a keynote address by Alberto Perlman, co-founder of the global fitness craze Zumba. Panels include success stories from the local entrepreneurs who founded Sedano’s, Jennifer’s Homemade and ReStockIt.com; finance tips from experts in small business loans, venture capital, angel investments and traditional bank loans; and insiders in the burgeoning South Florida tech start-up scene.

Plus, it’s a real bargain. $25 includes the half-day seminar, continental breakfast and a box lunch.

Register here.

Program

8 a.m.

Registration and continental breakfast, provided by Bill Hansen Catering

8:30 a.m. Welcome

Host: David Suarez, president and CEO, Interactive Training Solutions, LLC

•  Jerry Haar, PhD, associate dean & director, FIU Eugenio Pino and Family Global

Entrepreneurship Center

•  Alice Horn, executive director, Network for Teaching Entrepreneurship (NFTE South Florida)

•  Jane Wooldridge, Business editor, The Miami Herald

Miami Herald Business Plan Challenge Overview:

•  Nancy Dahlberg, Business Plan Challenge coordinator, The Miami Herald

8:45 a.m. Session I – Success Stories

Moderator: Jerry Haar, PhD, associate dean & director, FIU Eugenio Pino and Family Global

Entrepreneurship Center

Speakers:

•  Jennifer Behar, founder, Jennifer’s Homemade

•  Matt Kuttler, co-president of ReStockIt.com

•  Javier Herrán, chief marketing officer, Sedano’s Supermarkets

10 a.m. Session II – All about Tech

Moderator: Jane Wooldridge, Business editor, The Miami Herald

Speakers

•  Susan Amat, founder, Launch Pad Tech

•  Nancy Borkowski, executive director, Health Management Programs, Chapman Graduate School of

Business, Florida International University

•  Mark Slaughter, CEO, Cohealo.com

•  Chris Fleck, vice president of mobility solutions at Citrix and a director of the South Florida Tech Alliance

11:15 a.m. Keynote

Speaker: Alberto Perlman, CEO and co-founder of Zumba® Fitness

Introduction: Jane Wooldridge, business editor, The Miami Herald

11:45 a.m. Session III – Show me the money: Financing your small business

An interactive session featuring audience volunteers who will be invited to make a short investment pitch before a panel, including experts in microlending, SBA loans, traditional bank loans, venture capital and angel investing. Audience volunteers should come prepared with a two-minute presentation that includes details about current backing, how much money they are seeking and a brief synosis of ow that money would be used.

Moderator: Melissa Krinzman, founder and managing director, Venture Architects

Panelists:

•  Marjorie Weber, chairman, SCORE of Miami-Dade

•  Cornell Crews, Jr., program director, Partners for Self Employment

•  Darius G. Nevin, co-founder, G3 Capital Partners, a mid-market and early-stage investment company

•  Boris Hirmas Said, chairman of the board, Tres Mares S.A. (Santiago, Chile) and entrepreneur in

residence at the Eugenio Pino and Family Global Entrepreneurship Center

1 p.m. Lunch session - Polish your Pitch, Brighten Your Personal Brand

An interactive session featuring audience volunteers who will be invited to make short pitches about their businesses and themselves. Audience volunteers should come prepared with a two-minute presentation.

Coaches: Melissa Krinzman of Venture Architects and Michelle Villalobos of Mivista Consulting

advise audience volunteers on how to best pitch themselves and their products.

Box lunch provided by Bill Hansen Catering

All speakers confirmed unless otherwise noted. Agenda is subject to change without notice .

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Miami startup that turns text to video receives $1 million in seed funding

Guide, a new technology startup based in Miami, announced Tuesday it has closed a $1 million round of seed funding from investors including the John S. and James L. Knight Foundation, Sapient Corp., MTV founder Bob Pitman, actor and producer Omar Epps, and early Google employee Steve Schimmel. The Knight Foundation is supporting Guide through its new early-stage venture fund, the Knight Enterprise Fund.

Led by CEO and founder Freddie Laker and COO Leslie Bradshaw, Guide’s team of seven is focused on turning online news, social streams and blogs into video for users who may be cooking, exercising, commuting or getting ready in the morning. The free application offers consumers a selection of about 20 “anchors” — including a dog, a robot and an anime character — that will read the article and present the accompanying photos, pull-out information and video clips in its video presentation. Revenue drivers for Guide could include in-app purchases, advertising-based anchors and customizations from publishers, said Laker, a former vice president at SapientNitro.

Laker and his team plan to launch a public beta next month, which they plan to do with a splash at the huge technology conference South by Southwest (SXSW) in Austin, Texas.

Read more about Guide here on the Starting Gate blog. Follow Nancy Dahlberg on Twitter @ndahlberg

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Miami startup that turns text to video receives $1 million in seed funding

Guide, a new technology startup based in Miami, announced Tuesday it has closed a $1 million round of seed funding from investors including the John S. and James L. Knight Foundation, Sapient Corp., MTV founder Bob Pitman, actor and producer Omar Epps, and early Google employee Steve Schimmel. The Knight Foundation is supporting Guide through its new early-stage venture fund, the Knight Enterprise Fund.

Led by CEO and founder Freddie Laker and COO Leslie Bradshaw, Guide’s team of seven is focused on turning online news, social streams and blogs into video for users who may be cooking, exercising, commuting or getting ready in the morning. The free application offers consumers a selection of about 20 “anchors” — including a dog, a robot and an anime character — that will read the article and present the accompanying photos, pull-out information and video clips in its video presentation. Revenue drivers for Guide could include in-app purchases, advertising-based anchors and customizations from publishers, said Laker, a former vice president at SapientNitro.

Laker and his team plan to launch a public beta next month, which they plan to do with a splash at the huge technology conference South by Southwest (SXSW) in Austin, Texas.

Read more about Guide here on the Starting Gate blog. Follow Nancy Dahlberg on Twitter @ndahlberg

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FMLA still helping families cope with illness

When I gave birth to my daughter, I returned home with a squirmy little bundle and immediately felt overwhelmed. Though I was exhausted from changing diapers and waking for feedings, I was thankful that my job was secure.

In our struggle to balance our family lives and our work lives, one law has made a giant difference for me and 35 million other American workers — the Family Medical Leave Act.

This week, the FMLA celebrates its 20th year in existence. It’s been a godsend for those of us who want time to bond with our newborn, care for an aging parent or deal with a health emergency without the fear of losing our jobs.

But two decades after President Bill Clinton signed the FMLA into law, advocates say they still have unfinished business.

“It was meant to be a first step toward a family-friendly American workplace. But it is 20 years and we haven’t gotten to the second step,” says Judith Lichtman, senior advisor to the National Partnership for Women & Families and an original advocate for passage of FMLA.

In many ways, the FMLA has been even more helpful to working families than expected. The law initially was conceived to allow working mothers like me to take time off for childbirth and post-maternity.

But over 20 years, it has been used 100 million times by all types of workers — about 40 percent of them men.

The FMLA has provided time off for women who needed medical care during difficult pregnancies, fathers who took time to care for children fighting cancer, adult sons and daughters caring for frail parents and workers taking time to recover from their own serious illnesses.

The federal law says we can take up to 12 weeks of unpaid leave if we work at a company with more than 50 employees, with a caveat that we must be employed there for a year. The big benefit is that our jobs are protected during that leave.

During the recession, the job security and the continuation of health insurance that FMLA guarantees proved particularly important.

Debbie Winkles, senior VP/director of human resources at Great Florida Bank in Miami Lakes, used FMLA three years ago when she needed to care for her husband who was battling cancer. Today, Winkles has male and female bank employees who are using FMLA to care for their newborns or to cope with illness.

Her company has created an easy spreadsheet system to track its employees’ FMLA leave. “With today’s health issues, so many people diagnosed with cancer are having chemotherapy, and employees need medical leave for themselves or a family member.”

In Wisconsin, Jill Delie is using FMLA to manage a chronic disease by taking a few days off each month for doctors appointments. In Maine, Vivian Mikhail used FMLA to care for her daughter, Nadia, when the little girl was diagnosed with an autoimmune condition that left her completely deaf.

Just this week, a longtime friend of mine told me how fortunate she feels to be able to take FMLA to spend time with her mother who has incurable lung cancer. “I don’t want to lose my job, but I can’t imagine not being there for her when she needs me,” my friend sighed.

Yet for all the benefit, FMLA doesn’t guarantee wages while workers are on leave, a component advocates had planned as a second step. According to a Department of Labor study, 78 percent of workers who needed FMLA leave did not use it because they could not afford to take unpaid leave. Proposed federal legislation would expand eligibility and introduce a paid family-leave insurance program. Funded through a small payroll tax, the program would provide two-thirds of an employee’s wages for up to 12 weeks of leave.

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Register for our free Business Plan Bootcamp

Whether you are planning to enter the Miami Herald Business Plan Challenge or want to refine a short business plan you already have, our free Business Plan Bootcamp later this month can help.

Melissa Krinzman, a veteran Business Plan Challenge judge and managing director of Venture Architects, will be leading a panel of experts who will give you advice on crafting a short business plan aimed at grabbing the attention of investors — or judges. If you are entering the Challenge, we encourage you to bring your entry with you because the panel will critique critical sections of the short plan.

Panelists include:

•  Richard Ginsburg, co-founder of G3 Capital Partners, a mid-market and early stage investment company.

•  Steven McKean, founder and CEO of Acceller, a Miami-based tech company, and a Challenge judge.

•  Mike Tomas, CEO of Miami-based Bioheart, president of ASTRI Group and a Challenge judge.

Time, date, place: 6:30 p.m. Feb. 26, Miami Dade College, Wolfson Campus Auditorium (Room 1261, Building 1, 2nd floor).

To register: It’s free, but please register here.

You do not have to enter the Challenge to attend our free boot camp, but we hope you will. The Challenge deadline is March 11.

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Digital Debrief: David Klock getting down to Business

David R. Klock took the helm of Florida International University’s College of Business as dean, on Oct. 1, after serving in a similar role at the University of Alabama-Birmingham’s School of Business.

A milkman’s son who earned a doctorate in finance, Klock’s career has spanned leadership positions in both academia and business.

Soon after he arrived at FIU, Klock began holding open forums for students, where he has laid out his priorities, including hiring more faculty members.

Eager to learn more about Klock, we sent him these questions, and he emailed his responses:

Q.You have an interesting background for an academician, in that you were chief executive and chairman of CompBenefits Corp. Please tell me about that entrepreneurial experience.

In 1980, while at the University of Central Florida, a former student asked my wife Phyllis and me to get involved in CompBenefits, a dental benefits company. It was barely a year old, with no full-time employees. We started as unpaid consultants. Our friends at the university thought we were crazy, but we saw potential.

By 1986, the company had grown substantially. My involvement as a consultant steadily increased, and in 1991, I resigned my position at UCF and went to work full-time as president of CompBenefits.

Just after I arrived in Atlanta, the chairman of the company told me he was selling the company. I said, “I just gave up my tenured position, and now you’re selling?” His response: “Oh, don’t worry, you and Phyllis will buy it. It’s $25 to $30 million, and you’ll find the money.” I thought he was joking, but sure enough, we did. When the deal was done, Phyllis and I were the only original shareholders left.

From there, the company took off. After several acquisitions, we went public in 1995. In 1998, with the company still thriving, the stock valuation hit a snag. Our original investment bankers came back to us and suggested we take the company private, which we did in 1999. We operated the company for six more years, growing with acquisitions, including Oral Health Services out of Miami and Vision Care Plan in Tampa, a new line of business for us. After five years as a private company, it was time to sell, and Humana emerged as the buyer in 2005. When the deal closed in 2006, we were providing benefits to just under 5 million members in 23 states, with over $350 million in revenue.

Q. You also have experience in the corporate world, serving as a director. Please tell me about that.

In addition to serving on the board of CompBenefits when I was chairman and CEO, I have served on several corporate boards. The first was Province Healthcare, a chain of rural hospitals based in Nashville. While I was dean of the business school at Cal Poly in Pomona, I was invited to be on the board of directors and chair the Special Litigation Committee of Cheesecake Factory. I’m now on the board of Mayer Electric, a $600+ million private company in electrical equipment distribution, based in Birmingham.

Q. Now that you are here, what are your academic goals at FIU’s College of Business?

Before I arrived at FIU, the college went through an intensive strategic planning process, and made a decision to focus on three thematic areas: healthcare, entrepreneurship and international business. Our primary mission is developing, nurturing and supporting world-class faculty dedicated to leading the institution in those themes.

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Hollywood cardiologist’s ties with St. Jude sales rep raises red flags

Mark Sabbota, a Hollywood cardiologist, regularly implants $5,000 pacemakers in patients at Memorial hospitals in South Broward — generating, last year alone, more than a half-million dollars in sales for a manufacturer called St. Jude Medical.

Sabbota, public records show, also happens to be partners with a St. Jude sales rep in two corporations that run frozen yogurt shops.

What’s yogurt got to do with healthcare?

Perhaps nothing. Perhaps a lot. The question is connected to an on-going lobbying battle in Washington over a pending disclosure policy intended to more clearly reveal financial ties between physicians and the healthcare industry — often-murky relationships that have produced a long history of whistle-blower lawsuits, federal investigations and fines.

Sabbota, in a brief interview, adamantly denied any conflict of interest. “There has been no wrongdoing at all,” he said.

Memorial spokeswoman Kerting Baldwin also said the hospital saw no problem with the yogurt arrangement. As a “community” doctor, not a staff employee, Baldwin said Sabbota can select from a list of pacemakers approved by the hospital but has no say over what companies made the list.

“As for why he prefers to use St. Jude, I won’t speak for him,’’ she said. “You’d have to ask him that.”

But several medical ethics experts said such relationships fall in a gray area. They raise what Kenneth Goodman, bioethics director at the University of Miami, called “red flags” about whether the doctor’s motivation in choosing a device “is something other than the best interests of the patient.”

“Maybe it’s just a good business arrangement that has nothing to do with the devices he chooses,” said Charles D. Rosen, a California physician who is co-founder of the Association for Medical Ethics. “But the issue is public disclosure and transparency. You as a patient should have the right to know about a doctor’s financial relationships with companies.”

Concerns about the relationship between doctors and healthcare companies have been simmering for years. Americans are so suspicious of doctors’ connections that, in a 2008 Pew Charitable Trusts survey, 86 percent of patients said doctors should not be allowed to get free dinners from drug makers and 70 percent said doctors shouldn’t even be allowed to get free notepads and pens.

The 2010 Affordable Care Act includes a provision intended to address some aspects of these often-cozy relationships. Starting Jan. 1, healthcare companies were supposed to publicly post how much they were paying doctors. But that provision has been held up in the White House by intense lobbying.

“I don’t know why the hold-up, except the intense opposition of the industry,” Rosen said. His group, including members of the Harvard Medical School and Cleveland Clinic, wrote a letter to the Obama administration last month protesting the delay.

The group complains that the healthcare industry is trying to soften the rules so that foreign subsidiaries and doctors engaged in clinical trials wouldn’t have to reveal payments. But even if the disclosure rules are implemented, a side deal like Sabbota’s yogurt company would not have to be revealed under the new law, Rosen said.

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Healthcare experts see bumpy road ahead: “Shift happens”

The healthcare industry in South Florida, like the rest of the country, faces huge challenges in the year ahead as major federal reforms kick in, experts told about 700 people at a University of Miami conference on Friday.

“We are at a critical time in health policy,” said Mark McClellan, former head of the Centers for Medicare and Medicaid Services. “There are going to be some bumps along the way,” especially starting in 11 months, when the biggest changes in the Affordable Care Act kick in.

“Bumps may be understating what we may go through,” said Patrick Geraghty, chief executive of Florida Blue, the state’s largest health insurer.

They spoke at the conference on the Business of Healthcare Post-Election. The speakers accepted the federal reforms — often referred to as Obamacare — as not only inevitable but necessary. As Tom Daschele, a former Democratic U.S. senator from South Dakota, put it, “having 50 million uninsured is just unacceptable.”

But the reform act, signed into law in 2010, contains more than 2,000 pages, plus thousands of pages more of enabling regulations — details that will have major, and perhaps unexpected, impacts on the healthcare industry, which now makes up almost 20 percent of the nation’s economy.

In October, insurance exchanges will open for enrollment — groups that will allow individuals and small businesses to purchase policies with no exclusions for pre-existing conditions. Starting next January, virtually everyone will be required to have insurance, Medicaid will expand in many states, and businesses with more than 50 full-time equivalent employees will be required to provide insurance or pay fines.

“Jan. 1 is a very significant date,” said Steven Ullmann, director of health policy at the UM business school. He called reforms “a process” that will change over time.

“The one thing we know is that healthcare reform will be reformed,” said Chris Jennings, a Washington health policy advisor for the Clinton administration and three senators.

Karen Ignagni, president of America’s Health Insurance Plans, the insurers’ trade group, said she had strong ideas about tweaks that could minimize disruption. One arcane, but crucial provision of the law requires that an older person’s policy can be no more than three times as expensive as a young person’s.

The provision will mean huge increases in the policies of younger persons, to pay for the much higher costs of their elders. Insurers are asking for that policy to be postponed for two years, retaining the present maximum spread of about five to one, so that younger people could sign up for insurance without huge sticker shock.

For example, if a 25-year-old now pays $100 and a 60-year-old pays $500, the new rule would hike the younger person’s premium to $150 and cut the older person’s premium to $550 — a 50 percent increase for one and a 10 percent decrease for the other.

The thinking of lawmakers was that by lowering ratio, the costs of healthcare would be spread out and shared more equally by the population.

Anne Phelps, a healthcare principal with Ernst & Young, said she favored another change in the law, which now requires that next year a company with the equivalent of 50 employees to provide insurance for anyone working more than 30 hours a week or pay a fine. She thought the threshold should be raised to 32 or 34 hours.

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Mompreneur jumps into the ‘Shark Tank’

It all started with a 4 a.m. email nearly a year ago: “Do you think a baby bib could change the world? I do...”

Then Susie Taylor included a link to her website, bibbitec.com, and off it went to Shark Tank, the popular ABC television show where entrepreneurs pitch their companies to investors on the show — and by extension, 7 million viewers.

Four months later, as the “mompreneur” was leaving her Biscayne Park home to pick up her kids from school, she got a call from the show asking her to pitch on the spot. Driving with her phone on her shoulder, she told the Bibbitec story.

Shark Tank bit. After a few more back and forths, her segment was filmed last summer.

Friday night, Taylor is scheduled to be on the show pitching Bibbitec’s main product, “The Ultimate Bib,” a patented generously sized, stain-resistant and fast-drying child’s bib made in the USA — Hialeah, to be exact. Bibbitec’s $30 bib can be a burp cloth, changing pad, breast feeding shield, full body bib, place mat, art smock and more, Taylor says.

We won’t be getting any details on what happens Friday night when she and her husband, Stephen Taylor, get into the tank with Daymond John, Mark Cuban and the other celebrity sharks; Taylor has been contractually sworn to secrecy. But whatever the outcome, she believes it will be worth it for the marketing pop.

Taylor was inspired to create her bib after a long and very messy plane ride with two young sons and started her company in 2008. She and her team — her husband is CFO, her sister, Heather McCabe, handles sales and marketing, her uncle, Richard Page, is in charge of production, and her aunt, Marcia Kreitman, advises on design — have expanded the line to include The Ultimate Smock for older children and the Ultimate Mini for babies. Coming soon: a smock for adults.

Taylor already got a taste of what a national TV show appearance can do for sales. In September, Bibbitec’s sales jumped 40 percent after she was on an ABC World News "Made in America" segment. “Within 30 seconds, we started getting sales from all over the country and they didn’t even mention our name on the air,” Taylor says. She said that confirmed her belief that a Shark Tank appearance would be worth it.

Plus, Taylor has been hooked on Shark Tank since the first time she watched it in 2008 as she was developing her product. Trained in theater, she admits she didn’t know much about business and learned from the show. She would practice how she would answer the questions.

“I’m all about empowering women who are sitting on the couch watching, because that’s what I was four years ago,” says Taylor. “All I wanted to do was to be on Shark Tank because I believed if I got on Shark Tank the world will see what I am trying to do and that’s all I need. I know it’s a great product.”

Will that theater training come in handy Friday night? Stay tuned. Shark Tank airs at 9 p.m. on ABC and Taylor hopes viewers will join in on Twitter using the hashtag #sharkbib.

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In later life, many Americans turn to ‘encore careers’

Don Causey was beginning to plan his retirement, selling off his profitable sporting newsletters when his life took a horrific turn. While on a safari on a long anticipated trip to Africa, a tree tumbled onto him, breaking his back. The process of getting a medical transport to take him from a remote village back to Miami proved arduous and costly.

Today Causey’s back is healed and at 70 he finds himself in a post retirement career — consulting for a company that sells travel memberships that include medical evacuation benefits. It’s a profitable part-time gig that Causey believes is an important service to travelers. Plus, he says, “It keeps my mind alive and keeps me connected with a community I care about, just in a different way.”

Like Causey, most Americans are crafting their own version of meaningful work in their later stages of life. It’s a direction that brings balance and an ability to be impactful in a whole new way.

“More and more people — sometimes by necessity, sometimes by choice — are forgoing traditional retirement and investing a new state of life and work,” says Marci Alboher, with and author of The Encore Career Handbook.

Alboher is part of a movement that has named this later-in-life stage “encore careers,” paid or volunteer work that has a social impact. An encore career can last from a few years to 20 or more. While 9 million Baby Boomers already have entered their encore phase, another 31 million will soon make the leap in that direction, according to Encore.org, a nonprofit organization that promotes second acts for the greater good.

The concept of an encore career is being buoyed by a convergence of trends: financial realities, layoffs, long life spans and the desire for a more purposeful existence during the aging process. “It’s a way to leave a mark that makes things better for future generations,” explains Alboher. “But usually it’s not quick or easy. It’s a slow metamorphosis involving baby steps, detours, persistence, creativity and a do-it-yourself spirit.”

An encore career job might be a nurse or health aide. It could be a teacher, tutor or fundraiser, founder of a nonprofit, or even an entrepreneur that solves a social problem. For many, it has become the answer to “now what?” and “what will be my legacy?”

Knowing what’s ahead, some people plan their encore career for years, beginning as early as their 50s. They use travel time to build alliances or weekends to take a community college course.

Though he’s far from retirement age, my 50-year-old husband surely will need an encore career. Even now, he can’t sit still on days off from work, filling his days with house projects and coming up with new ones once the current list is exhausted. Yet he regularly talks about how he looks forward to retirement — a disaster-in-the-making for a man without a mission.

The reignite-rather-than-retire movement has been recent, but it may already have played a role in curbing the high rate of suicide for older males. David Cohen, author of Out of the Blue, and a professor of psychology at University of Texas had previously discovered a high rate of suicide for males in the 65-to-74 year old age group, observing that this set was susceptible because of its preoccupation with lost status and higher risk of apathy and isolation. That high rate has lowered in recent years.

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Miami Herald Business Plan Challenge opens for entries

Entrepreneurs, please don’t let the name of our contest scare you.

As we launch our 15th annual Miami Herald Business Plan Challenge today, we are putting out our annual call for entries. But we aren’t looking for long, laboriously detailed business plans. Quite the contrary.

More and more, today’s investors in very early stage companies want to see a succinct presentation of your concept and how you plan to turn it into a success. We do, too.

If you have a business idea or an operating startup that is less than two years old, you can enter the Challenge, our annual celebration of South Florida entrepreneurship. Sponsored by the Pino Global Entrepreneurship Center at Florida International University, our contest has three tracks — a Community Track, open to all South Floridians; an FIU Track, open to students and alumni of that university; and a High School Track, co-sponsored by the Network for Teaching Entrepreneurship.

Your entry may be up to three pages and you may attach one additional page for a photo, rendering, diagram or spreadsheet if you wish. Think of it as a meaty executive summary. Experts in all aspects of entrepreneurship — serial entrepreneurs, executives, investors, advisors and finance specialists (see judge bios on MiamiHerald.com/challenge) — will judge your short plan. In doing so, they will be looking at your product or service’s value to the customer, market opportunity, business model, management team and your marketing and financial strategies. See the rules on page 22, which also include tips on preparing your entry.

Your entry is due by 11:59 p.m. March 11. Entries should be sent to challenge@miamiherald.com, fiuchallenge@miamiherald.com or highschoolchallenge@miamiherald.com.

Don’t worry, we’re here to help!

“Frame your business from your customer’s perspective and not yours. Rather than diving into a detailed explanation of your product or service, a more compelling way to tell your business story is to clearly share the problem that you are solving for your customers and how your business is different, better, faster, cooler, cheaper, smarter,” says Melissa Krinzman, managing director of Venture Architects and a veteran Challenge judge.

On Feb 26 at 6:30 p.m. at Miami Dade College, we’ll host a free Business Plan Bootcamp, where you can bring your working plan with you for advice from experts, including Krinzman. Find the sign-up link on MiamiHerald.com/challenge.

And each week in Business Monday and on MiamiHerald.com/challenge, we’ll be bringing you advice and answering your questions. You can post your questions on the Q&A on MiamiHerald.com/challenge or email your questions to me at ndahlberg@miamiherald.com. Follow @ndahlberg on Twitter.

The top six finalists in the Community and FIU Tracks will present their 90-second elevator pitches for our popular video contest. Last year our People’s Pick contest drew more than 18,000 votes.

On May 6, in a special section of Business Monday, we will profile the winners — the judges’ top three selections in each track plus the People’s Pick winners. Along the way, we will unveil semifinalists and finalists to keep the suspense building.

Today, though, we are looking back on the entrepreneurial journeys of our 2012 winners. Funding was a nearly universal challenge, and many faced setbacks in developing their platforms. Throughout the entry period, we’ll also look back on other winners from the past 14 years.

Show us what you’ve got. Let’s make this the best Challenge yet.

Read More..

Miami Herald Business Plan Challenge opens for entries

Entrepreneurs, please don’t let the name of our contest scare you.

As we launch our 15th annual Miami Herald Business Plan Challenge today, we are putting out our annual call for entries. But we aren’t looking for long, laboriously detailed business plans. Quite the contrary.

More and more, today’s investors in very early stage companies want to see a succinct presentation of your concept and how you plan to turn it into a success. We do, too.

If you have a business idea or an operating startup that is less than two years old, you can enter the Challenge, our annual celebration of South Florida entrepreneurship. Sponsored by the Pino Global Entrepreneurship Center at Florida International University, our contest has three tracks — a Community Track, open to all South Floridians; an FIU Track, open to students and alumni of that university; and a High School Track, co-sponsored by the Network for Teaching Entrepreneurship.

Your entry may be up to three pages and you may attach one additional page for a photo, rendering, diagram or spreadsheet if you wish. Think of it as a meaty executive summary. Experts in all aspects of entrepreneurship — serial entrepreneurs, executives, investors, advisors and finance specialists (see judge bios on MiamiHerald.com/challenge) — will judge your short plan. In doing so, they will be looking at your product or service’s value to the customer, market opportunity, business model, management team and your marketing and financial strategies. See the rules on page 22, which also include tips on preparing your entry.

Your entry is due by 11:59 p.m. March 11. Entries should be sent to challenge@miamiherald.com, fiuchallenge@miamiherald.com or highschoolchallenge@miamiherald.com.

Don’t worry, we’re here to help!

“Frame your business from your customer’s perspective and not yours. Rather than diving into a detailed explanation of your product or service, a more compelling way to tell your business story is to clearly share the problem that you are solving for your customers and how your business is different, better, faster, cooler, cheaper, smarter,” says Melissa Krinzman, managing director of Venture Architects and a veteran Challenge judge.

On Feb 26 at 6:30 p.m. at Miami Dade College, we’ll host a free Business Plan Bootcamp, where you can bring your working plan with you for advice from experts, including Krinzman. Find the sign-up link on MiamiHerald.com/challenge.

And each week in Business Monday and on MiamiHerald.com/challenge, we’ll be bringing you advice and answering your questions. You can post your questions on the Q&A on MiamiHerald.com/challenge or email your questions to me at ndahlberg@miamiherald.com. Follow @ndahlberg on Twitter.

The top six finalists in the Community and FIU Tracks will present their 90-second elevator pitches for our popular video contest. Last year our People’s Pick contest drew more than 18,000 votes.

On May 6, in a special section of Business Monday, we will profile the winners — the judges’ top three selections in each track plus the People’s Pick winners. Along the way, we will unveil semifinalists and finalists to keep the suspense building.

Today, though, we are looking back on the entrepreneurial journeys of our 2012 winners. Funding was a nearly universal challenge, and many faced setbacks in developing their platforms. Throughout the entry period, we’ll also look back on other winners from the past 14 years.

Show us what you’ve got. Let’s make this the best Challenge yet.

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Crisis has Americans raiding their 401(k)s

WASHINGTON --
As the father of two college-age kids, Rob Harris knew that finding money to pay soaring tuition costs wasn’t going to be easy. Reluctant to saddle himself or his children with loans, the 55-year-old product development manager from Kansas City, Mo., tapped another source: his retirement savings.

Harris plans to pay himself back, but his decision to prioritize his kids’ education is at least partly responsible — along with rising healthcare costs and a sluggish stock market — for pushing his target retirement age from 59 to 62.

“Everyone says you shouldn’t do it, but there were several years the market was a big loss. You’ve got money there, you’ve got a real need, why not use it?” he said.

Harris is among a growing number of Americans who are dipping into their 401(k)s and other defined contribution plans to pay for more immediate needs such as tuition, overdue bills, credit cards and mortgages.

One in four American households withdraw a total of more than $70 billion from 401(k)s or similar retirement savings plans for non-retirement spending needs every year, according to a report published this month by the financial advisory firm HelloWallet.

With traditional pensions fading into memory, and Congress considering cuts to Social Security and Medicare, many Americans working in the private sector expect their 401(k) nest eggs to guarantee financial security in their older years. But in the aftermath of the Great Recession, increased “leakage” from 401(k)s in the form of cash-outs, hardship withdrawals and loans is worrying policymakers and retirement savings experts, who also bemoan the plans’ high fees and stubbornly low participation rates. Some are looking for ways to reform 401(k)s, or even offer innovative alternatives.

One such plan has been proposed by Teresa Ghilarducci, an economics professor at The New School in New York City and an ardent critic of 401(k)s.

“A good pension plan helps people accumulate money, helps them invest money appropriately, and helps people pay out your pension for life, and the 401(k) fails at all three of those dimensions,” Ghilarducci said.

Her plan would require that employers deduct 2.5 percent of their employees’ pay, a contribution that businesses could match if they choose. Employee contributions would be mandatory. The money would be set aside in a fund that pays a guaranteed, modest rate of return to supplement Social Security. The return could be guaranteed by a paid fund or an insurance company, and it would be paid out after a worker retired in the form of an annuity for the rest of that person’s life.

Last year, Sen. Tom Harkin, D-Iowa, floated the idea of privately run pension plans he calls USA Retirement Funds. Workers without a pension or a 401(k) would be able to make automatic contributions toward retirement through pre-tax payroll deductions. Businesses would be required to contribute as well but would receive tax credits to offset the cost. Workers would receive regular payments from the funds throughout retirement, like a pension. The proposal hasn’t made much headway.

Whatever politicians ultimately come up with, 401(k)s aren’t going anywhere anytime soon, said David John, a senior research fellow in retirement security and financial institutions at the conservative Heritage Foundation.

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Economist: Euro crisis could erupt again this year

DAVOS, Switzerland --
Is the euro crisis over? A leading U.S. economist says not by a long shot.

Even as the head of the European Central Bank talked Friday of “positive contagion” in the markets and predicted an economic recovery for the recession-hit eurozone later this year, economist Barry Eichengreen warned that the debt crisis that has shaken Europe to its core could easily erupt again this year unless European leaders move faster to solve their problems.

While European governments and markets have been breathing easier in recent months after years of turmoil, it’s no time for complacency, said Eichengreen, a professor at the University of California - Berkeley who has chronicled the Great Depression and explored the consequences of a breakup of the euro currency.

“Nothing has been resolved in the eurozone, where markets have swung from undue pessimism to undue optimism,” Eichengreen told The Associated Press in an interview at the World Economic Forum in Davos, Switzerland, an annual gathering of corporate and government leaders. “They said all the right things last year … and they’ve been backtracking ever since.”

He urged eurozone leaders follow up on its proposals to steady its banking system and keep failed banks from adding to government debt through expensive bailouts.

European leaders in Davos this week are seeking to reassure investors and corporate leaders that the continent is on the mend after its punishing debt crises.

European Central Bank chief Mario Draghi on Friday forecast a recovery in the eurozone economy in the second half of the year, and spoke of “a new restored sense of relative tranquility” and “positive contagion on the financial markets.”

But he acknowledged “we don’t see this being transmitted into the real economy yet.”

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Lennar design accommodates multigenerational families

In some cases, it may be Grandma moving in with the family. Other times, it may be a recent college graduate returning to the nest.

For all sorts of reasons — financial, medical, personal — a rising number of Americans are moving into extended family households.

Spotting a niche in the growing trend, Lennar Corp. has launched a new concept tailor-made for multigenerational family living.

It’s basically a house within a house: a smaller living unit next to the main home designed to provide independence but also access to the rest of the family household.

“People are really loving the whole concept,” said Carlos Gonzalez, president of the southeast Florida division of Lennar, a Miami-based home-building giant. “We adapted to the market from a design standpoint.”

In Miami-Dade County, Lennar is selling various versions of multigenerational homes in three new developments in Doral, Kendall and Homestead.

Louis Moreno of Kendall and his wife, Danilza Velez, signed a contract for a large NextGen home in The Vineyards development in Homestead last October — even before the models had been built.

“We loved it,” said Moreno, a 45-year-old engineer.

Moreno said his mother-in-law will be able to use the new suite when she visits, as will his family members who frequently come to town from Puerto Rico. “This will provide them with more comfortable space and more privacy,” he said. He also plans to use it as a game room and entertainment area.

The two-story Zinfandel home Moreno picked has three bedrooms and 2 1/2 bathrooms in the main home with a family room and two-car garage. In addition, it has an ample 789-square-foot suite with two bedrooms, a bathroom and a kitchenette. The suite has its own garage, a separate front entrance and an internal door connecting to the main home.

The Zinfandel, which has 2,249 square feet of air-conditioned space in the main house, starts at $283,990 in the Homestead community at 128 SE 28th Ter., but a similar home in Kendall would run about $100,000 more, primarily because of higher land costs, Fernandez said. (In Doral, there is a NextGen home priced at $677,990.)

Some multigenerational models have suites as small as 489 square feet, but all have a separate entrance, a bedroom, a bathroom and some sort of kitchen space.

The idea takes various shapes. One option at the Kendall Square development at 16950 SW 90th St. is a Granny unit above a detached garage.

“Independence is the key word,” said Frank Fernandez, director of sales and marketing for the southeast Florida division.

Depending on local zoning rules, some homes can have full kitchens, others are restricted to kitchenettes with a microwave but no stove. Similarly, some municipalities permit the space to be used as a rental, others prohibit it.

The choice is proving popular. Fernandez said in The Vineyards development in Homestead, 10 of the 14 homes sold to date are NextGen. At Kendall Square, 35 of 107 sales are multigenerational, and at the Isles at Grand Bay development at 11301 NW 74th Street in Doral, five of 48 houses are.

Adapting homes for special needs, such as wheelchairs and safety railings, is done at cost, Fernandez said: “That is company policy.”

As one of the nation’s largest home builders, Lennar has been rebounding strongly from the housing crash. Last week, the builder, whose shares trade on the New York Stock Exchange, posted better than expected earnings for the fourth quarter and fiscal year ended Nov. 30, 2012.

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Miami Dolphins slam Norman Braman, Marlins Park deal

The Miami Dolphins ramped up their public campaign for a tax-funded stadium renovation this week, buying full-page ads against their top critic and trying to distance the plan from the unpopular Marlins deal.

The team bought an ad in Tuesday’s Miami Herald and El Nuevo Herald knocking auto magnate Norman Braman’s criticism of the Sun Life Stadium deal, which would have Florida and Miami-Dade split the costs with owner Stephen Ross for a $400 million renovation. The Dolphins would pay at least $201 million, with taxpayers using state funds and a higher Miami-Dade hotel tax to pay $199 million.

In a fact sheet sent to media Tuesday morning, the Dolphins listed ways their deal differs from the 2009 Marlins deal. First: Ross, a billionaire real estate developer, would use private dollars to fund at least 51 percent of the Sun Life effort, compared to less than 25 percent from Marlins owner Jeff Loria. Second, Sun Life helps the economy more than the Marlins park does.

“Just because the Marlins did a bad deal doesn’t mean we should oppose a good deal where at least a majority of the cost is paid from private sources and more than 4,000 local jobs are created during construction alone,” the fact sheet states. And while the Dolphins’ Miami Gardens stadium has hosted two Super Bowls since 2007 and is in the running for the 2016 game, “Marlins Stadium does not generate the ability to attract world-class sports events -- other than a World Series from time to time depending on the success of the team.”

NFL teams play eight home games a year if they don’t make the playoffs, while baseball teams have 81.

Miami and Miami-Dade built the Marlins a $640 million stadium at the site of the Dolphins’ old home at the Orange Bowl in Little Havana. The Marlins contributed about $120 million and agreed to pay between $2.5 million and $4.9 million a year for 35 years to pay back $35 million of debt the county borrowed for the stadium. As a publicly owned stadium, the Marlins ballpark pays no property taxes. Most of the public money came from Miami-Dade hotel taxes, along with $50 million of debt tied to the county’s general fund.

Sun Life is privately owned and pays $3 million a year in property taxes to Miami-Dade. It currently receives $2 million a year from Florida’ s stadium program, a subsidy tied to converting the football venue to baseball in the 1990s when the Marlins played there. The Dolphins also paid for a second full-page ad with quotes from leading hoteliers in Miami-Dade endorsing the stadium plan. Among them: Donald Trump, whose company recently purchased the Doral golf resort. “Steve Ross’ commitment to modernize Sun Life Stadium -- while covering most of the construction costs -- is the right thing for Miami-Dade,’’ the ad quotes Trump as saying.

Also on Tuesday, Ross and team CEO Mike Dee sent a letter to Miami-Dade Mayor Carlos Gimenez and county commissioners requesting negotiations over the stadium deal. The letter said the deal Ross unveiled last week is a “baseline for debate” and asked for talks. The letter also urged the commission to adopt a resolution proposed by Commissioner Barbara Jordan endorsing the state bill that would allow taxes for Sun Life. The resolution is on the agenda for Wednesday’s commission meeting.

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Miami Dolphins slam Norman Braman, Marlins Park deal

The Miami Dolphins ramped up their public campaign for a tax-funded stadium renovation this week, buying full-page ads against their top critic and trying to distance the plan from the unpopular Marlins deal.

The team bought an ad in Tuesday’s Miami Herald and El Nuevo Herald knocking auto magnate Norman Braman’s criticism of the Sun Life Stadium deal, which would have Florida and Miami-Dade split the costs with owner Stephen Ross for a $400 million renovation. The Dolphins would pay at least $201 million, with taxpayers using state funds and a higher Miami-Dade hotel tax to pay $199 million.

In a fact sheet sent to media Tuesday morning, the Dolphins listed ways their deal differs from the 2009 Marlins deal. First: Ross, a billionaire real estate developer, would use private dollars to fund at least 51 percent of the Sun Life effort, compared to less than 25 percent from Marlins owner Jeff Loria. Second, Sun Life helps the economy more than the Marlins park does.

“Just because the Marlins did a bad deal doesn’t mean we should oppose a good deal where at least a majority of the cost is paid from private sources and more than 4,000 local jobs are created during construction alone,” the fact sheet states. And while the Dolphins’ Miami Gardens stadium has hosted two Super Bowls since 2007 and is in the running for the 2016 game, “Marlins Stadium does not generate the ability to attract world-class sports events -- other than a World Series from time to time depending on the success of the team.”

NFL teams play eight home games a year if they don’t make the playoffs, while baseball teams have 81.

Miami and Miami-Dade built the Marlins a $640 million stadium at the site of the Dolphins’ old home at the Orange Bowl in Little Havana. The Marlins contributed about $120 million and agreed to pay between $2.5 million and $4.9 million a year for 35 years to pay back $35 million of debt the county borrowed for the stadium. As a publicly owned stadium, the Marlins ballpark pays no property taxes. Most of the public money came from Miami-Dade hotel taxes, along with $50 million of debt tied to the county’s general fund.

Sun Life is privately owned and pays $3 million a year in property taxes to Miami-Dade. It currently receives $2 million a year from Florida’ s stadium program, a subsidy tied to converting the football venue to baseball in the 1990s when the Marlins played there. The Dolphins also paid for a second full-page ad with quotes from leading hoteliers in Miami-Dade endorsing the stadium plan. Among them: Donald Trump, whose company recently purchased the Doral golf resort. “Steve Ross’ commitment to modernize Sun Life Stadium -- while covering most of the construction costs -- is the right thing for Miami-Dade,’’ the ad quotes Trump as saying.

Also on Tuesday, Ross and team CEO Mike Dee sent a letter to Miami-Dade Mayor Carlos Gimenez and county commissioners requesting negotiations over the stadium deal. The letter said the deal Ross unveiled last week is a “baseline for debate” and asked for talks. The letter also urged the commission to adopt a resolution proposed by Commissioner Barbara Jordan endorsing the state bill that would allow taxes for Sun Life. The resolution is on the agenda for Wednesday’s commission meeting.

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Series for Miami’s emerging art collectors begins Thursday

For art enthusiasts interested in bring their interest home, Miami’s Bakehouse Art Complex is hosting a lecture series for emerging collectors. The first panel, slated for Thursday at 6 p.m., features arists and curators who will talk about fine tuning your taste and learning to make informed decisions. The second session, Feb. 7, is oriented to the mechanics of purchasing. The third, on Feb. 21, explores how to manage your collection.

Moderating all three panels will be Denise Gerson, independent curator who served as associate director for the Lowe Museum of Art for 24 years. Cost is $25 per session or $60 for the series. Seating is limited; reservations are recommended.

Information at 305-576-2828; www.bacfl.org.

Jane Wooldridge

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Three generations — and counting

In 2009, when Larry Zinn took over as sales manager for the Infiniti dealership that his father owned, he had a great idea: retrain the sales staff in a team approach and offer customers complimentary add-on services for the first year.

Some salesmen who were used to selling the same way for decades up and quit. But that didn’t deter Larry from insisting a new sales culture and value proposition for new car buyers was necessary. “I was persistent with everything I’ve believed we needed to do going forward. People were going to embrace change or move on,” says Larry, 28.

The resistance quieted, however, after Larry recruited young salespeople and had them trained in the new advantage program. The new approach helped push sales volume up 72 percent. "We had a lot of success with it,” he says.

Larry Zinn’s experience is not unusual for family-owned businesses that survive into a third generation and employ new tactics to keep from becoming obsolete.

Nationally, family-run businesses account for nearly 35 percent of the largest companies including Ford, Koch Industries, Hilton, Wal-Mart, Loews and Ikea. In South Florida, family-run businesses are particularly prevalent and account for a majority of the largest Hispanic companies, including Goya, Bacardi, El Dorado and Sedano’s Supermarkets.

But while more than 30 percent of all U.S. family-owned businesses survive into the second generation, only about 12 percent are passed onto the third generation, according to Family Firm Institute, a Boston-based association for family enterprise professionals. Those that do survive have a few intriguing commonalities: an ability to stay relevant, think bigger and take a long term view.

“They try to figure out where they want to be in 10 years and take steps to make that target,” says Wayne Rivers, president of The Family Business Institute in Raleigh, N.C.

Most third-generation family businesses, particularly those in South Florida, were started by a scrappy entrepreneur who saw business ownership as a way to provide for the family. Those businesses include grocery chains such as Sedano’s, restaurant operators such as Las Vegas Cuban Cuisine and airport concessionaires such as NewsLink.

Typically, in those businesses, the founder brought his kids with him to work, put them in the kitchen, the stock room, the sales floor, and taught them on-the-spot business lessons. Those kids eventually came to work full time and helped the company evolve beyond a seat-of-the-pants start-up into a more sophisticated business with processes and systems.

Now comes the third generation, who are more likely to have received formal business education before they return to the company. Often, they are able to leverage that training and move the company forward dramatically. But the succession also comes with challenges. They must keep the respect of longtime employees and show the same dogged commitment to seeing their company succeed, even after having already grown up enjoying the fruits of its success.

In successful third-generation businesses, the senior generation often stays on to ensure that commitment, adopting a role as mentor or advisor while creating an environment where younger family members can take on real responsibility, says Rivers, who consults for family businesses. “They get out of the way, let the next generation make their own mistakes, and gracefully exit when it’s appropriate.”

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Investors await word from Apple

No company today elicits such devotion and dedication among its customers and shareholders like Apple. The fervor felt by Apple fans for its products, its leaders and its business underscore the company’s technological eco-centric strategy. While that loyalty has made for rich rewards over the long term, it will mean very little to a myopic stock market when Apple reports its latest financial results Wednesday.

When a company so dominates a business like Apple does, it is subject to plenty of rumors, especially when that company, like Apple, is disciplined to not respond to speculation. There have been a series of anonymous and Wall Street analyst worries floated in the past quarter centered on the iPhone 5. First were concerns Apple couldn’t get enough supplies to build the phones fast enough. Then there were hints Apple cut its supply orders, suggesting slower sales.

Apple optimists have been quick to defend the company even as its stock has fallen from $700 to around $500 per share since September. The stock drop has come even as Apple probably sold a record number of iPhones and iPads during the holiday quarter.

No doubt Apple will trumpet its financial prowess on Wednesday. And it should. After all it generates more than $500 million dollars a day. But the short-sighted stock market has been conditioned to expect big numbers. Therein is the challenge for Apple: incubating such devotion without inflating expectations.

Tom Hudson is anchor and managing editor of Nightly Business Report, produced by NBR Worldwide and distributed nationally by American Public Television. In South Florida, the show is broadcast at 7 p.m. weekdays on Channel 2. Follow him on Twitter, @HudsonNBR.

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