We're number one! Hawaii is number one!

Unfortunately, we have no right to be proud of what Hawaii ranks first in. Hawaii leads the nation in bankruptcies. Hawaii is first in the United States for full time government employees per capita. Hawaii is number one in state and local tax burden on people below the poverty line, and fourth in the nation in state and local tax burden on people above the poverty line.

Hawaii ranks 49th out of 50 states for employment growth. And, we are last, dead last, in the country in state economic growth.

These statistics are terrifying but true. The great State of Hawaii is in serious danger.

All of us are feeling the pain of losing friends, family and loved ones to greener pastures. I'm not talking about greener landscapes. I mean greener in terms of economic opportunities. People are flocking to the Mainland from Hawaii. Companies here are laying off, shutting down and "right sizing." Friends and family are out of work or struggling hard to survive. Most people work more than one job just to get by. We love Hawaii, so we stay, struggle and pay the "Price of Paradise."

It's time for change! Many of our legislators have spent precious time playing with issues that do not address Hawaii's basic and essential needs. When they see the economy in a downward spiral, their answer is to raise taxes! Last year, politicians were lying to us. The proposed increase in General Excise Tax (GET) from 4% to 5% was only a 1% increase they said. From 4% to 5% is a 20% increase in tax!!! And this "solution" during a time when we are seeing solid businesses close their doors here forever.

You may be asking yourself what you can do to change the state of things in Hawaii. First and foremost, VOTE! If you are not already registered, get registered today. You can find an application form in your 1996-1997 GTE Hawaiian Tel Yellow Pages (The last white page before the yellow).

If you are wondering whether one person can truly make a difference, the answer is yes. Mother Teresa is only one person yet she provides miracles to the sick and needy that she ministers. Thomas Edison was one person and his inventions have deeply affected our lives. One person can and does make a difference. It matters that you vote, and that you vote wisely. Be informed about the candidates and about the issues. Don't let the same people continue to make the same mistakes that have cost this island and all of us dearly.

The right and responsibilities of voting do not end with casting your ballot. If you were a business owner, you would not likely hire someone, hand them a job description and say "I'll be back in two years to check on you." Yet that is exactly what most of us do when it comes to our legislators. We cast a vote and hope for the best. Politicians are people too. They are not mind readers. They need our input to do the job we want and need them to do. Call, fax or write to your legislators and tell them what needs to be done. We must support good candidates and encourage their continued work for us. We must also remove those individuals that have done us harm. We can fire our legislators. Choosing the lesser of two evils is not a solution. The lesser of two evils is still evil. We must encourage those with the courage and conviction to run for office and make the changes that are necessary now for Hawaii's survival and future prosperity.

Get Involved. Join the Small Business Hawaii Legislative Action Committee. Vote for people that will make a difference. The time is NOW!

I joined Small Business Hawaii 1 1/2 years ago. I was new in business and learned quickly about state regulations and taxes. I believe that one person can make a difference, however there is strength in numbers. I joined to support small business and help support others making a difference. Becoming a member was my way of attempting to change the business climate in Hawaii.

However, since this is my first business I thought I had nothing to contribute to SBH, other than my dues. I attended no functions because I was an inexperienced kid starting out. What could I contribute to others with business experience? I was intimidated by the idea of people discussing their successful businesses and ideas. I thought I was the only one without the answers. In fact, I didn't even know the questions!

I thank SBH for initiating the Young Entrepreneurs program. For myself, YES has increased my confidence and self-esteem just by knowing that I am not alone in the business world. I learn something from every meeting I attend. This is much more then a networking group. It is young people exchanging ideas and learning from guest speakers.

YES made me realize that everyone has good ideas. Don't be afraid to share them. I thank the board of directors for YES and encourage members between the ages of 18-35 to attend the meetings.

As SBH continues to initiate and continue programs to support entrepreneurs, I encourage everyone to become involved. Join the Legislative Action Committee or fax network, go to a Share N' Tell, ask where help is needed. Get involved! I am proud to say I will be a facilitator at the next Share N' Tell, and I hope to see a sell out crowd!

Have you ever had a customer or client fail to pay you after you have already provided them with your product or service? Unless your business is strictly cash-and-carry, I am sure you have had this experience. Have you ever had checks returned? Slow paying accounts? Maybe you have had clients simply disappear along with the money they owe you?

Marketing, customer service, and truckloads of new clients are great, but if you do not have a system in place to control your accounts receivable, your business is in serious trouble. Let me give you some pointers that have helped businesses in different industries prevent and/or reduce their write-off's.

1) Look through your aging sheet of A/R ledger. Is anything really old? Write it off or have a third party help you get your money. Don't let it just sit there on your books.

2) Retail stores should always show the fee you charge for returned checks. A common amount to charge is $20, which will at least cover the bank's fee that they charge you.

3) If your clients are businesses, get credit reports and references before extending credit. If the business is new, CASH is a good thing to collect up front. I would recommend not accepting checks until the client has established a history with you.

4) Depending on your industry, you may want to consider billing twice a month instead of just once. Your cash flow will improve, and you will have fewer slow paying accounts.

5) Have the DATE DUE printed on your statements or bills. If you do not set a date to be paid by, the client will brush it off until next month...and the next...and so on.

6) Unless the amount owed is very small, I encourage you as a business owner not to just write it off. This is strictly my personal opinion, but if you make it a common practice to let people not pay their bills, you are teaching them that it is acceptable to do so.

Prevention is the best way to cut down on this "cost of doing business," but realize that there is a point where it would be beneficial to bring in a third party. Pre-collection agencies, attorneys, and small claims court are the usual ways that people handle their problems when they do not get paid. Depending on your industry, you will find that different methods have very different success rates, and very different costs. Look into different methods of managing your accounts receivable, and decide which would work the best for your business.