Small Business News Online € World Wide Web Edition € October 1995 € Page 2

"Thumbs UP" (?) Where to put those thumbs, as proposed by Hawaii's two largest banks, big businesses, unions and the State Administration, in their slick, expensive ($1.3 million-plus) PR campaign to "solve" our economic problems. They want us to "think positive" and change our attitude; concentrate on the many good things about Hawaii; stop going to Vegas and Disneyland; don't buy from catalogs and instead, borrow money to buy big ticket items like houses and cars. (Tell me its not true: that First Hawaiian Bank chose a New York architect, not a local business, to design its new 45-story monument?) Having a hard time meeting your payroll, work comp, liability insurance and taxes? Have an overdue payment to Bankoh or First Hawaiian? Why not just send them a photo of your thumb. See how positive they will be. Now, where's my old Bobby McFarrin t-shirt, "Don't Worry, Be Happy?"

Hawaii's unionized (UPW) prison guards have it made; guards previously convicted of sex offenses, drug-dealing, gun running and other felonies committed inside the prison walls, in addition to their 47-days of sick leave, can't be fired. They laugh in the taxpayers' faces because they get paid even under suspension. Governor leaning toward privatizing.

And UH Leeward Community College tenured professor-of Public Administration- Rosario Prizia, convicted of federal mail fraud, retains his job. His union, UHPA arguing, he is tenured and that is the most important consideration. Certainly much more than ethics.

Don Johnston of Foresight Pacific, Inc. chides me for not mentioning the most serious aspect of government worker layoffs here: less compulsory political sign wavers for the machine du jour! Of course he is correct! But just think, with less sign wavers, there might be fewer accidents, cooler temperatures (less hot air) and more on-the-job work by the remaining public employees.

The Democrats warning about coming "train wreck," their term for a shutdown of the Federal Government if the GOP budget is vetoed by President Clinton. More properly, this would put the Feds on a cash only basis and start the turning point to genuine fiscal responsibility. Our neighbor, New Zealand, went through this exact process several years ago, bit the bullet, and is now prospering. (Local legislators carefully examining the Kiwi experience; SBH has a wonderful video of this socialistic debt to free market prosperity story.

Congressman Neil Abercrombie attacked Republicans for "slashing" funds that reduced research on Hawaii's monk seals. (You can tell our Democratic delegation has very little to do these days; welfare, taxes, Medicare and the deficit notwithstanding) ) A day before his attack, local news reports confirmed that RESEARCH (into sperm production) resulted in the deaths of two monk seals and injury to a third. IF the GOP had truly slashed funds, as Abercrombie alleged, the seals would still be among the living. This kind of sperm research should be restricted to members of Congress (notably the Senate).

You could hear Senators Ted Kennedy and Dan Inouye heaving loud sighs of relief when the Diarymeister, Bob Packwood, resigned. The last thing Ted, Dan and others wanted, was full, open, hearings and disclosures about Senate sexual misconduct.

Ala Moana Center offered the City 1,000 square feet for expanded Satellite City Hall and Retail Store at rent of $1 per year. Many small merchants would like a similar deal. The City may go into more ventures, even though it never produced a business plan or a specific schedule of costs and revenues.

Tahitian Lanai and Sheraton Makaha are closed, House of Adler is bankrupt and family-owned Coronet Stores and Sato Clothiers, both gone. Papillon Helicopters, founded in 1976, and its 100 employees, are toast too. Credit ridiculous Fed regulations.

The Honolulu Advertiser incredibly did another pro-rail editorial last month, crying that other states and the Congress are mistakenly abandoning the costly rail projects in record numbers. Let the Advertiser and HNA build their own transit; Lord knows, they charge enough for ads to pay for it themselves. Meanwhile, Mayor Harris still retains the original Fasi-Harris Fixed Rail Transit Team at the City level; ready to spring into action AFTER next year's Mayoral election should Harris not go into retailing full-time.

Big news from the Honolulu City Council and N.I. counties: Locals can finally carry pepper spray legally for protection. An informal SBH poll, however, finds most will continue to carry and use Kim Chee and Tabasco.

QVC Home Shopping Network will spotlight 20 unique Hawaii-made products as part of its "50 top 50" visit to all Fifty States on December 16. Morer than 350 local companies competed for the once-in-a-lifetime opportunity to showcase their products to millions of people--and to generate tremendous sales. There are two lessons here: (1) Hawaii does have unique products the rest of the world will buy, and (2) no amount of government studies, loans or tax subsidies has the market impact as a private, for-profit such as QVC, which started as a risk-taker's dream.

October is "Trick-or-Treat" month. Haven't we had enough political tricks in Hawai'i? NOW is the time to start getting active for the '96 political revolution in Hawaii if you want to keep your business and to continue to afford to live here.

Guest Member Commentaries

THUMBS UP HAWAII?
By Orson Swindle

Governor Cayetano has just initiated a "Thumbs Up, Hawaii" campaign. He wants us to focus on the positives-not the negatives.

O.K.

Let's support this initiative. Being a POW in Vietnam taught me the value of positive thinking.

However, we do have to face reality. We've got some serious problems in Hawaii. We can solve them. But, positive thinking alone will not do the trick if basic fundamentals are ignored, and we insist on maintaining the status quo.

In 1992, President Clinton's advisor, James Carville, proclaimed -"It's the economy stupid." And it still is-especially in Hawaii. Unfortunately, Hawaii's sagging economy is captive to a belief that all good things come from the government-especially, from big government.

Relying on government has given us high taxes and costs of living, a declining economy, the highest bankruptcy rates in the country, and a terrible business environment. Our education system is pitiful. Our young people are leaving because there are no opportunities. Older people are leaving due to the cost of living. Good grief! When are we going to change this?

Hawaii's future rests not so much in positive attitudes, but in the realization that the private sector creates wealth and jobs. Kill the private sector and you kill the society.

Hawaii's love affair with government jobs and government controls coupled with the bad business environment stifle economic growth. Investment, creativity and risk taking create real jobs-not government and unions.

Perpetuating the status quo is not the answer. We've tried that. It hasn't worked.

Yes, we need a positive attitude. But a new approach to economic growth must evolve. We must significantly downsize government and let business flourish.

Call the Governor and your elected officials and tell them to get on with it!



HAVE I GOT A COMMERCIAL SPACE FOR YOU!

By Susan Kinsler, Aloha Indoor Tanning

You're driving down the street and see a "For Lease" sign in a window. You call the number listed and ask about the space. You're told that the agent you need to speak with is not available. No, nobody else can help you. No, nobody else will answer any questions. You must speak only with the person who has the listing. Yes, the owner of the company makes money on each transaction but you certainly don't expect the owner to answer questions about listings-do you? A day or two goes by and you call again. You leave another message. You put a lot of time and energy into this and you don't even know if the space is suitable-all you've seen is a sign. The space is vacant. The R.E. firm has been hired by the owner to lease it out. Does the firm care about the owner-sitting with the vacant space? They assign the listing to one agent and nobody else is allowed to touch it. The owner's interests are never thought of.

Finally you hear from the listing agent. Yes, there's lots of parking. Yes, to most of your preliminary questions. OK, so now you want to see it. No you may not see it on a weekend. You say you'd like to see if after hours or weekends. What part of "no weekends" don't you understand? You must be blonde. You'll see it when it's convenient for the agent or you won't see it at all. So, you hire someone to sit in your store and you run over to see the space. The agent is late. Then he/she must fumble with approximately 20 different keys (this is mandatory). If you're lucky they'll find the right one. If not, you'll see it some other time. Once the door is open you get to stumble into the darkened space because the agent can't find the light switch or the electricity's been shut off. You try not to breathe because the air is incredibly foul-after all the a/c hasn't been used in a very long time. Does the a/c work? Who knows? The agent will have to call the property manager to find out. You get out of the space because you can't stand it another minute. Once outside you're given a "Fact Sheet." Who said realtors don't have a sense of humor. It's a treasure hunt finding facts on a "fact sheet." The agent crossed out most of them or offers you a pen so you can do it.

If you can envision your business in this space and if you believe what the agent said you then spend the next few weeks sending your building contractor, electrical and a/c contractor over to see if it's doable. If it is, you're ready to make an offer. You and the agent spend hours wording it just right before the agent submits it . . .only the agent's going on vacation so you don't mind waiting an extra week or two do you???? Why not submit the offer and then go on vacation while the owner's contemplating it? The agent wants to be around to answer any questions and to just help out.

Weeks go by and then you receive the counter offer. Oops! They must have the wrong form. The space you wanted had parking, toilets, no percentage lease, etc. How could this have happened? The agent explains that the owners must have changed their minds because they'd never misrepresent such basic facts as these-not on purpose anyway. Must be some sort of over-sight or misunderstanding. Either way, they suggest you look for another space because this one doesn't seem to have what you require. Oh, they're really sorry.

Has anything like this ever happened to you? Who did you get mad at? I'm personally mad at you-my fellow small business owners. When you were ripped off, lied to and deceived did you do anything about it? Did you report it to a governing body? Did you report it to the Regulated Industries Complaint Office (RICO)? Did you do anything to prevent these unethical professionals from doing to another small business owner what they did to you? Probably not. If you had there wouldn't be as many out there ripping off the rest of us and you again too! Somebody has to draw the line. Somebody has to day, "ENOUGH" I'm willing to do my share. I'm about to fill out a RICO form and have discussed the above scenario with Philip Doi who's an expert on consumer fraud and, make no mistake, the situation described is "consumer fraud."

As long as we small business owners let the big guys get away with this sort of treatment they'll continue to get away with this sort of treatment. If you have any comment about or complaint against a commercial real estate agent please let me know (942-2626). Don't you think a guide on who the good guys and bad guys are will be helpful? It's time to get involved.


Comments about anything you read in Small Business News can be addressed to:

Small Business Hawaii
Hawaii Kai Corporate Plaza
6600 Kalanianaole Hwy., Suite 212
Honolulu, Hawaii 96825
Telephone: 396-1724 / Fax: 396-1726

SBH also accepts articles relating to small business issues about its members and Hawaii. Submit your articles to SBH by the 10th of the month for publication into the next month's issue.

E-Mail: macpro@lava.net / E-mail forwarded to SBH via local fax.

Editor & Publisher: Sam Slom
Web page produced by Melvin Ah Ching Productions. Copyright 1995.
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