Revitalization Task Force Finishes Work -
No Meaningful Solutions Expected

The Governor's vaunted Economic Revitalization Task Force, with its 27 top "movers and shakers," (where have they been in the past??) finished its work just as it started months earlier: behind closed doors, not accessible to the public or media. On October 20, it unveiled its initiatives to lawmakers, the media and public at the Capitol. Several good specific taxation and government recommendations did come from the group --including proposals to cut the personal and corporate income taxes and to alleviate portions of the General Excise Tax pyramiding -- and these will be advanced to the 1998 State Legislature.

That's the problem: Hawaii's Legislature, fueled and funded by unions and other special interests, has refused to take meaningful action or implement tax and spending reductions urged by studies,Tax Review Commissions, advisory groups, and individual and business organization testimony.

Lawmakers, and the Governor, always insisted on "revenue neutral" proposals, meaning, for every $1 in tax or spending cuts, a new $1 must be found to keep the government juggernaut moving and providing the same high cost of welfare and subsidized services.

The Governor was critical of tax and government reduction suggestions made earlier by the Committee he helped appoint, and wanted to know why business didn't come up with "new" ideas instead of telling Government what to do. He doesn't get it: Government is the problem in Hawaii. It must change.

Though not invited on the Task Force, many small business owners (SBH members) provided assistance and testimony to the group's working sub-committees. Now, all will have to press for action, not study, in '98.

'98 Legislative Session Gearing Up

It's quiet at the Capitol now but the 1998 State Legislature convenes in late January. The agenda is already set: the economy, stupid! Several informational briefings and public hearings have already been held during the past few months. After three consecutive sessions that dealt with auto insurance reform, same sex marriage and the "high 3" pension and retirement plan--at the expense of economic issues--next year must address the problems that have handcuffed Hawaii for seven long years. Another impetus will be the recently concluded economic task force and various summits.

The Session will be clouded by the fact that next year is a major election year. Expect maximum political posturing during the 60-day Session that ends in late April. In the House, the 12 member (of 51) Republicans will have new leadership under Rep. Quentin Kawananakoa who has also indicated he will run for Congress, in a primary against fellow Rep. Gene Ward. A GOP faction is bent on getting along better with the solid Democrat majority rather than clearly differentiating their ideological positions.

Former Democratic House Speaker, Daniel Kihano, tried last month by a federal jury on campaign spending, fraud and money laundering violations, implicated current House majority leaders in a promised job-for-resignation scheme but this was denied by Reps. Joe Souki (current Speaker) and Majority Leader Tom Okamura. Several House members, including Souki, may not seek reelection next Fall, or will seek other political offices. The incumbents will be challenged.

Meanwhile, rumors persist around the Capitol. In the 25-member Senate, there still is a serious split among the 23 Democrats. Half of the Senators face an election in '98. Senator James Aki, facing a possible conviction on alleged past gambling violations, growing out of a political dispute with former Governor John Waihee, could lose his seat and the co-chairmanship of the Education Committee. If Aki is forced out, the Governor would likely appoint former lawmaker and executive assistant, Peter Apo to the seat. Senate Vice President Andrew Levin might resign due to family health problems. Lehua Fernandes Salling of Kauai and Malama Solomon of the Big Island, have been targeted by the Majority. Solomon might accept the Chancellorship of the University of Hawaii - Hilo and not run. Labor union loyalist Representative Dwight Takamine would very much like a Senate seat. Co-Majority Leader, Mike McCartney may also forgo a run next November

Senate Minority Leader Whitney Andersen is a strong and unrelenting critic of the monopoly shipping Jones Act and has traveled to Washington, D.C. several times. He has also been adamant about the lack of focus of the Governor's Economic Task Force. Anderson is also expected to run for the Congressional seat in the 2nd District, currently occupied by Patsy Mink. Anderson is not up for reelection to the State Senate until 2000.

The Chamber, NFIB, SBH and others have already prepared for the '98 Session.

3rd Annual Re-Discover Hawaii Kai
Celebration November 8

Get ready... and get set... for the 3rd Annual "Re-Discover Hawaii Kai" celebration on Saturday, November 8th, from 9:00 a.m. to 4:00 p.m. jointly hosted by Hawaii Kai's three major shopping centers: the Hawaii Kai Towne Center, Koko Marina Center and the Hawaii Kai Shopping Center.

SBH is a founding corporate sponsor and organizer of the community event. Great fun, delectable food, entertainment galore, historic displays, boat rides, prizes, games, community booths and much more will all be available to the public during this one-of-a-kind, one day celebration. Jonathan Kim, Hawaii Kai Towne Center Property Manager said, "the Re-Discover Hawaii Kai celebration is unique because it is the only promotion in the State of Hawaii where normally competitive shopping centers join together to create an event that the entire island can take part in, enjoy, and be proud of."

This year's 3rd Annual Re-Discover Hawaii Kai celebration will begin with a groundbreaking ceremony for the Hawaii Kai Monument Landmark Sign, "a welcoming gateway to commuters entering Hawaii Kai," which will take place at the mauka corner of Hawaii Kai Drive and the Kalanianaole Highway on Saturday, November 8th at 8:00 a.m. Murray Luther, the driving force behind the Re-Discover Hawaii Kai event, and also a long time Hawaii Kai resident says, "it has taken our Re-Discover Hawaii Kai committee nearly three years to obtain the necessary approvals for the Hawaii Kai Sign, which was removed and never replaced when the Kalanianaole Highway expansion took place. We feel this welcoming signage into the Hawaii Kai community is a gateway to commuters entering the area, and we take great pride in re-establishing this on November 8th. We invite and welcome residents and visitors alike."

SBH Sunrise Debuts With Fun, Food & Facts

About 125 people joined the 7 am October 16 successful debut of "Small Business Hawaii Sunrise," at the Pacific Club. The new event was organized and hosted by former Chamber of Commerce executive, and small business owner, Jim Proctor, and SBH Directors Jean Fukuda and Helen Rapoza. Proctor is now assisting SBH in several special community and networking projects.

Dynamic speakers included, Karen Huffman, owner of the McDonald's franchises in Aina Haina, Koko Marina and Kahala, who shared her secrets for entrepreneurial success and said even when you're number 1 you don't take competitors for granted; David Carey, President and Chief Executive Officer of Outrigger Enterprises, who, in handcuffs, told the audience that business is "handcuffed" and the answer is direct, broad, political involvement, starting with your employees and associates to turn Hawaii's economy around; and Wally Amos, "nephew" for the Uncle Noname Cookie Company, who delivered his "Watermelon Credo" and motivated the audience to never give up, don't be a victim and don't dwell on the negatives in the economyÑdo something about it yourself.

This was an hour and a half of fast-paced, "hot" topics, get-acquainted activities, a delicious buffet breakfast, super networking opportunities, and fabulous door prizes- all for just $10 to SBH members.

Feedback was solicited and favorable with suggestions so that the next event can be even better. UH law professor Randy Roth, who was unable to appear, will headline the next event and update the "Broken Trust" expose of the Bishop Trust.

"Education for Entrepreneurship '97,"
Focus of YES Seminar

SBH's Young Entrepreneurs "YES" in cooperation with the U.S. Small Business Administration and Kapio'lani Community College, presented a full-day seminar for young Ñ and not so young Ñ entrepreneurs on the KCC campus, Saturday, October 25.

More than 100 participants learned how successful business people turn ideas into reality. SBH's Helen Rapoza was primary coordinator of the event and member Ginger Peterson donated her marketing efforts.

Keynote speaker was Kent Unterman, US SBA award winner. Workshops were made by SBH-members and other business leaders.

Ebeling Offers Economic Options for Hawaii

More than 150 people attended the Saturday, October 11 speech at the Hyatt Regency Waikiki by Hillsdale College (Michigan) Ludwig Von Mises Professor of Economics, Dr. Richard Ebeling, cosponsored by Small Business Hawaii.

Ebeling discussed "Freedom vs. Regulation: The Free Market as Hawaii's Doorway to the 21st Century," and offered suggestions as to how Hawaii could truly revitalize its economy. A lively question/answer discussion followed.

Ebeling, and his Russian born wife Anna, recently discovered a number of significant von Mises documents in Russia, calling national and international attention to Hillsdale's decades-long support for the important Austrian economist. The monographs, speeches, notes, letters, and other items were stolen from the von Mises by the Nazis in 1938 and eventually found their way to Soviet archives, where the Ebelings found them and brought thousands of copies to Hillsdale College to be translated and made available to other scholars of the Austrian school of economics.

MEMBER NEWS

Four Board Seats Up For
Re-Election. Vote Now.

Four Directorships, of the current 11, are subject to member election in 1997.

Directors whose term expires December 31, 1997 are: Jed Gaines, Joyce Edwards, Helen Rapoza and John Yanagihara. Rapoza was first elected last year; the term of office for a newly-elected Director is one (1) year. A Director then may seek re-election to a regular three (3) year term. All will stand for re-election.

Members were encouraged to seek a Directorship earlier in the year. The Deadline for nominations was August 1. No new nominations were received by that date according to Nominations Chair, Director Bob Sigall.

Voting will take place by mail , FAX, or in person (to the SBH office) on the official provided on page 9 of this month's newsletter. Active members may vote for no more than four (4) of the candidates. Voting deadline is Monday, December 1, 1997.

A directorship is a commitment for active involvement and service to the organization, the membership, and the community. No Director, other than the Executive Director, receives any compensation for this voluntary service.

VOTE X for no more than four (4) of the following candidates and return ballot in person to SBH office, by FAX 396-1726, or by mail, NO LATER THAN DECEMBER 1, 1997. ONE BALLOT PER MEMBER FIRM.

About the candidates:

* GAINES, JED, president of Read Aloud America! and Apartment Appearance, Inc. SBH Vice President.

* EDWARDS, JOYCE, co-owner The Systemcenter, Inc., former Hawaii "Small Business Person of the Year" with husband Bill.

* RAPOZA, HELEN, owner of Helen's Haven and co-Chair, SBH Young Entrepreneurs "YES"

* YANAGIHARA, JOHN, General Agent, The New England, SBH member benefits Chair.

Young Entrepreneurs Subcommittee

"YES" Members Hear How to Make the Most of Your PR Dollars

By Byron Goo, The Tea Chest

Joyce K. Torrey, of Joyce Torrey Public Relations was the featured speaker at the September YES meeting held at Wisteria Restaurant.

Joyce, a former teacher, immediately got our attention by opening with a pop quiz on media coverage in Honolulu. (These teachers never quit!) It quickly became clear how knowing how the media operates can be leveraged to increase publicity for any business.

On the surface, public relations and advertising appear to be the same. Both are trying to change the customer's behavior to achieve a corporate objective. So why bother doing both?

Joyce pointed out that different mediums, ways to reach your audience, reach different people. One medium may be better delivering your message than another medium. For example, a seminar would be better suited for delivering highly technical information versus a 30 spot on the radio. The caveat; beware of dropping all of your marketing budget into one form of marketing. The key is finding the right mix of advertising and public relations to reach the most people.

In some sense, as Joyce explained, advertising is cut and dry. You develop a message. Pay for the medium and the message is delivered.

Public relations is more subtle. And, it's also more than just the "freebie" write-up in the local paper. Some examples of PR include, how a company's customer service department responds to complaints and can it be better? Does a company's return policy align with the goal of providing better service?

A good PR person will dissect the company and find out what aspects are newsworthy. What aspects of this company are worth talking about?

Some firms still believe the only time PR is necessary is when there is bad publicity about the company. Waiting to hire a PR firm only when there's a mess to clean-up can be too late.

Traits to look for when selecting a PR firm and the person working on your account are the strong ability to communicate your message, ability to motivate people and be solution- oriented.

Joyce reinforced the idea of creating a mix of advertising and PR rather than relying solely on one or the other. As the client, know what your message is and the action you want from your target audience.

It is critical to work with your PR person to understand the challenges that impact getting your marketing message across to the audience. Understanding the challenges will allow you to choose the best mix of advertising and PR strategies to deliver your message and improve your results.

Some examples of the challenges discussed are name recognition, competition, public trust of the firm for products like investments, highly technical information, highly specialized vocabulary and product differentiation.

Joyce closed the discussion with some pearls of wisdom. Establish a marketing budget from the start. Don't put all you money into the product and leave nothing to support sales.

Be involved with the process. Don't just give your advertising or PR firms the money and walk away. Communicate regularly with your Ad and PR people. The more they understand about your business the better a job they can do.

Class dismissed. For more information about Joyce, call her directly at 737-7915.

This month's "YES" meeting will be Thursday, November 20, 11 am at the Wisteria. Guest speaker will be Beth Terry, Pacific Rim Marketing who will offer you tips on "Managing Change." For reservations call SBH at 396-1724. Open to the public--regardless of age. Join us!

"YES" Goes to Aloha Key & Awards

By Helen Rapoza, Helen's Haven, Co-Chair, SBH YES

Periodically the "YES" group does on site visits to various businesses. We learn about the business, but more importantly we learn about being in business. The owners of these businesses graciously take time away from their busy schedules to help educate and motivate the "YES" members.

Recently, some of the "YES" members visited Aloha Key & Awards owned by Arlene and Dick Krupa. They have owned several other businesses over the years and purchased Aloha Key & Awards 15 years ago. At the time Aloha Key was in the key business. Since then they have expanded to include business needs; such as rubber stamps, custom name badges, signs, safes, and awards. They are also featuring and expanding their personalized gift division, which presently includes koa gifts and glassware. Arlene believes that an engraved gift is more than just a gift, it is a gift of love.

The Krupas believe that the guy who doesn't change will fall by the wayside. Arlene told the "YES" group that she looks for new ideas constantly. She looks at everything that crosses her desk and thinks of how she can adapt that idea to their business. Especially in a slow economy you must make a commitment to your business and be creative. One of the things the Krupas did was purchase equipment from competitors that were leaving the industry. This way they could offer more services and products with a minimal investment. They made these investments because they always listen to their customers and expand accordingly.

At Aloha Key & Awards the little customers are treated the same as the big one. To have a lot of small customers is better than having one large customer. Dick told a story about a man who had a business that had only one big customer. When that business lost that customer the business went under. Arlene said, "We spend all our energies going after the little guys and the big guys come." The small things are going to increase your customer base. Another way to increase your customer base, as Arlene believes, is to join various business organizations and be a guest speaker whenever you can. However, it is easier to develop existing customers and have them use more of your products than to find new customers. Dick said that one of Arlene's many strengths is her willingness to follow through with every customer. If a company is undecided about using Aloha Key & Awards for their engraving, key, safe, or award needs she calls monthly to inquire about a decision, answer any questions, or just to say hello. You must keep in contact with all your clients to develop them and keep them.

Arlene and Dick told the "YES" members that you have to know everything about your business and don't expect someone else to run it for you. Know what you are doing and stay focused. As independent business people we work long hours with sometimes little pay. The Krupas said that the only thing you get from being an independent business person is freedom. You can work 12 hours daily, or you can choose to take a day off. You have the freedom to make your own schedule. What they also said, which made a lot of sense to this "YES" member, is to take 10% of what your business does and spend it. Reward yourself for your hard work. Take your 10% and go on a vacation. Have Fun!