i’m back to doing USA business almost 90% of the time….think i really gotta get back to the usa and straighten some deals and alliances out.

Since Shadstone took over newyorkbarstore…. i have been seeking vigorously how to improve the cash flow, here are some ideas

I NEED HELP WITH #1…………….how to structure a deal like that…

1) PARTNER with a NY retail shop - we get so many people looking for our retail store…..this is my idea
a) CLOSE/ end my 3rd party warehouse contract in upstate NY - and ship all the goods to the retail location in manhattan (or a borough)
b) license the shop the newyorkbarstore brand (trademark) - would they have to put up a sign, or even change the name of their shop
c) at first give them consignment terms on the goods i have in the upstate warehouse but..
…. later turn them into a customer…? or ….this is where i’m not sure.
d) add this shop’s products to the newyorkbarstore.com online retail website.
e) how to approach these shops…. i made this list - http://www.newyorkbarstore.com/nyc_bar_restaurant_directory/

2) move my warehouse to california - for my B2B - and then diversify from just barproducts to all kinds of bar products - sending JIT to the NY store location (#1 above)
a) I already hve some stock in california, in the city of santa ana.
b) cali is closer to china / india so my shipping time is reduced as well as my shipping costs
c) sell B2B from california, and using the NY location as a retail and geographical location.

3) build more online retail shops selling directly from my office in shenzhen.

I should be in NY sooner then later……but first want to get some warm leads and deal structure before going there….with the purpose of going there to sign and executre #1

going through my list of NYC friends and contacts…..gonna be busy making calls and talking shop - seems i’ll be on USA time frame for some weeks to come…

This longggggg China New Year holiday drives me insane - as I’m sure a lot of other business owners (chinese and foreign) - it still amazes me how a country of such size and current global influence can completely shut down - so many of my favorite restaurants are still closed. Things should start opening up again friday and the weekend, and then China will be back to business as usual.

I hope my pictures aren’t getting too boring - more empty office pics below. but this is about all i see each day as I come to work during the holiday…

But in a way, a holiday this long makes everyone reflect on what they are doing with their lives, and what they want to do in the future. So many discussions with people on chats and in dinners these days about how they like or dislike their job, the way their career is going, the business they are in. Its like a fresh start for some, as they don’t return to their old companies after the holiday.

This is scary for business owners, as some factories and offices have some of their top workers not return to the office after the holiday….without even a notice. The worker just decides they need a change in their life, want to stay in their hometown with family, it doesnt even have to be about money! (well, usually it is, heh)

But this holiday has allowed me to focus on USA business. I’m on 3rd shift (almost) waking up around 1 or 2pm in China, and working until about 3 or 4 am. Afternoons are emails, accounting / financing, and planning. Then normally a dinner or drink with s ome friends in shenzhen - then back to the office to crank out some phone calls or USA hour type work.

Wondering if I should stick on this schedule after the holiday or not……..

Seems more and more I do USA business - its just what I am strong at, and I should focus on my strength. Let the staff manage their projects in the morning, I come in after lunch, check on progress, do my emails and planning with them. Grab dinner, then do USA calls.

Man, this is the ultimate t-shirt I found on busted tees.com UKRAINE IS WEAK.  (hint for a late christmas gift to get me!) No, no, I am not picking on the actual country Ukraine, what I am referring to is a Seinfeld TV show where they are playing a game of Risk the entire episode.  Later they are fighting on a subway in NYC and one of the players loses in Ukraine being told “Ukraine is weak” - unfortunately for them, tehre is a real Ukranian on the subway metro line with them…that is big, strong, and angry yelling Ukraine is STRONG!  Below is a picture of the game… RISK - the game of global domination.

I miss those holiday nights playing board games with family and friends.  Normally I was the one pushing my dad, mom, and sister to play monopoly or risk….I loved the competitiveness of it, trying to win and dominate the board as quick as possible.

The best times playing Risk was my Hartford, Connecticut buddiges Briam (magoo), Scott, Steven, Katie, and Andrew…..usually over some whiskey, snacks, and a long evening.  We would be pretty competitive…..all trying to annihilate one another…..

I think these games got me started on my pursuit of international business….and I still almost look at life like a board game of Risk…..countries, armies, attacking ,defending….

Yea..sick….nerdy…crazy…I know - but hey, this is my blog and I’m gonna tell it how it is.

If you’ve been following my blog, you will see posts about my difficult experiences dealing with Bank of America as I’ve been overseas in China and Asia.  Two of specific note include:

More Bank of America Fights - International  Travel Issues

Thank You For Calling Bank of America

*Image, credit,  found from PPC for Hire blog

Now, originally when I posted about my issues, I didn’t expect to get such a strong effect in google.  but I am ranking for many terms, such as Bank of America international travel, bank america international travel, bank of america online banking issues, and international phone number, the list goes on and on as I check my server log and traffic stats.

Here’s a specific example, out of 37 million pages, this blog is #4 for Bank of America international travel.

And the blog post that is there in Google is talking about ………..PROBLEMS I AM HAVING WITH BANK OF AMERICA………

Now, why doesn’t an internet marketing person at Bank of America contact me???  Its been there for a year at least now…Reputation management must be address by these large companies.

What is reputation management?  Basically its MONITORING YOUR BRAND.  With the internet being so open, and so many people going to Google, Facebook, Twitter, and other web destinations - bloggers and people are there. Talking, discussing their customer experiences with businesses.

A good company MONITORS this.  They RESPOND to what people are complaining about,  or at the very least , address it and say its something that has to be this way for a certain reason - legal, policy, blah blah.

But, imagine for a minute - that on my blog, I receive a comment from a Bank of America marketing representatitive.   They would address the issue I have been having, explain why it is the way it is, maybe even FIX IT.  Or note it for their management meetings.

That is what is support to happen.  And the companies that are most active on SOCIAL MEDIA and responding to the blog posts, twitter messages, and facebook chats - as well as  ton of other websites - they will gain valuable connection to their customers and differentiate themselves from their competition.

I know….. BANKS, INSURANCE COMPANIES, they don’t care about their customer, the customer has to put their money somewhere, has to get insurance.  But I hope one day there is a disruptive new bank or insurance company that is more “online aware” and I see many internet people, bloggers, and younger generations will sign up

Lets see - maybe this latest post will get some attention at Bank of America.  I want to test them, I have no problem putting a note at the end of those earlier blog entries saying I am impressed Bank of America contacted me about my issue and at least explained why its the way it is (government, security, legal, policy, etc)  That would make my day.

This is another emotional transaction in my life….but in the process of transferring the assets and liabilities of the parent companies of newyorkbarstore.com and newyorkbarstore.co.uk to shadstone hong kong company….

This parallel phenomena was the first company I incorporated… back in 2004 as a general partnership in new york city with my hometown friend and roommate Andrew Moran - which then turned into parallel phenomena, inc of New Jersey in 2005.
Did it fail in USA? Yes. Why? Of course there can be many finger pointing,, but the major issue was cash flow. Our company credit card program from GE was “bought out” by american express, and they determined this card program was not profitable, so gave all card customers 30 days (maybe 60) to pay it off in full.  No equity partners were willing/able to finance a new one. A huge negative cash flow event, forcing us to be called on 10,000 usd of debt while also still needing to make normal business purchases of that same $10k, making an overall negative cashflow of -20k….rough for a small business with 1 fulltime usa partner. That combined with high warehousing costs, usa quarterly payroll tax, professional accounting tax, and other legacy technology costs….negative cash flow over many months.  Cutting back on virtual assistants, other support teams and not able to pay for outsourcing. Then combine that with inventory suppliers cutting terms, warehousing / fulfillment companies cutting net 30….the stress is unbearable.
Sad part is, I reckon and hear this is a common story with usa small businesses……but usa government, dont u realize you are biting the hands that feed you.

• Small business brings innovation
• Small business brings job
• Small business brings healthy competition.

I remember a few months back screaming at bank of america about easing my monthly credit pressure….what did they do??? Note it on my account and when they saw an incoming balance transfer, block the transfer and shut down my credit facility….I called enraged, and they said some bullshit about it being bank of america’s new policy and they sent me some “fine print” letter in the mail stating this policy change! Screw you bank of america, aren’t you now owned by the usa government now? You are getting a nice free tax payer bailout to keep your damn doors open….but your small business customers, you will shut us down and throw some bullshit “small print” letter in the mail to justify destroying my 500k/year USA small business - that was paying us taxes to loan you the same money u used to pay your customer service reps to shut the door on me.
This is why i see USA going down the drain.
Save big banks, but screw the small guys
America was built on innovators, on entrepreneurs, on small businesses like me to drive jobs and tax income…
But now sadly, my USA business had to be bought out by my asia operation…If you can’t beat them, join them - as many Chinese and Asian companies are buying their distributors out in USA and Europe.
So after i build my business in asia and china, i will come back and buy usa assets for pennies on the dollar.
Sad, but that is the way the world works, and how life goes.  Hope I can turn around new york bar store and make it bigger then ever….but things are definitely going to change.

“Too many people spend money they haven’t earned for things they dont like to impress people they dont like” - Will Smith

This is a great quote…i mean, funny because its so damn true!! But sad at the same time.

And its even sadder because i would have to say americans are feeling the after effects of living the lifestyle summarized in this quote…

Let me analyze each section of it…

Spending money they havent earned….. - wayyy too true, how many credit cards do people have, carrying balances greater then their income can generate…..but the “system” (banks pushing credit cards on us since entering universities) tells us buy now, pay later…..I remember my freshman year in university, all over the campus, and surrounding the campus there were people stands of people pushing me to sign up for a CREDIT CARD.  But i was a freshman, I didn’t have an income, well maybe I did some work study…they gave me a free t-shirt I remember, so my friends and I signed on the dotted line…..sad that is how the generation grew up.  Spend now….pay later….

….For things they dont need…. -do you really need that 2 story house in the suburbs?  And once you get the nice house, you have to fill it with brand new, designer furniture, right?  Maybe take out a 2nd mortgage on the house to pay for it.  An investment, right?  And you need a nice, new fancy car to drive to work, since the suburbs are so far from your office, and there isn’t any public transportation to get there……

….to impress people they dont like…. -and with that nice house and fancy car, you can show off to your co-workers.  And they will say to  your face how great it is, but then later talk badly about how you show off your money.  Or maybe even you do it to show off to your competition in other companies.  To impress a guy or a girl to like you.

Its all a scary, but real thing.  I hate picking on US of A, but it seems more in that culture than in others I have seen.  Maybe its because Americans have this great opportunity to have nice things, money.  But then, like so many different proverbs and sayings - money isn’t everything.  And does money make us happy and fulfilled…

One would question that….

I have been spending a lot of time with my friend Jon Conte, whom I met in ITALY back in 2003 when we were part of a scholarship program for Italian Americans to learn about their heritage in Italy…..we were both living in New York at the time, so after our return from italy, we would spend times partying in new york city, as well as some other fun road trips. pretty funny that years later, we are in regular contact, and both in china pursuing our dreams, looking for something bigger than where we started.

Photo above: me, Jon Conte, and David Ho

Sitting next to him now, and we are both laughing about that. He and I both say we are in China for such different career purposes, but the same idea that USA is in a bad spot now and the future of opportunity is here in China!

Below is his MBA personal statement, he is studying at Fordham University in New York City and in an exchange program with Beijing University. He allowed me to put his statement of use to receive funding, so if you would like to read this before I start asking him questions (below this text). Right now I am helping him get his own blog setup on jonathanconte.com - check that after the next couple days to see what he is up to.

I have always been a high achiever and I believe that my academic and work records speak to that effect.  As a youth, I attended Regis High School in New York City, an all-scholarship boys Catholic High School, where I had my first experience in the true qualities of Jesuit education and learned the Jesuit credo to be a “man for others.”  I am versed in the classics, having studied both Latin and Italian while at Regis, and it was in these classes where I originally noticed my love for language and the opportunities linguistics opened to experience and interact with foreign cultures.  Regis High School pitted me in my first international setting, as I commingled with young men my age from around New York City, most from backgrounds far different than my own Italian heritage.  In many respects, it was my experiences at Regis that crafted my intellectual development, as I escaped the homogeneity that characterizes most students’ high school experiences.  I have never been afraid of others’ cultures and I embrace the diversity that characterizes our human experience.

Upon graduation from Regis in 2000, I began my undergraduate studies at Fordham University.  I was enthralled with the qualities of a liberal arts education enjoying my subjects equally but particularly enjoying philosophy, economics, language, and history.  Following the completion of my first semester at Fordham, I was asked to participate in Fordham University’s select Honor’s Program.  I readily accepted the opportunity, and was pleased to undertake my classes in a more close-knit and structured environment outside of the University’s general core track.  My time at Fordham saw my initial foray into the international sector as I obtained my degree in International Political Economy, partaking in this multidisciplinary field and studying key subjects such as International Politics, Economics, Italian language, and Anthropology.

Nevertheless, excluding my course study, my attempts and opportunities at exploring my passion for the International Development field were very limited.  In many respects, my efforts at this time were not to the best of my abilities, particularly for someone seeking opportunities in a field which requires significant independent study and outside internship experience.  There are several reasons for the lack of development of my passions at this juncture of my life, but none more prevalent than my need to work during my undergraduate career in order to support my education.  I was a commuting student as an undergraduate and although I received a modest scholarship, it was necessary for me to maintain employment throughout the year to meet my expenses.  My first working experience in college was working for my local City-Councilwoman in the Bronx as a legislative assistant.  I participated in this role starting in sophomore year and continuing through my first year after Undergraduate graduation.  If I was to characterize my favorite aspect of my work at the New York City Council, it was definitely the opportunities I had to help others.  I am particularly proud of some of the programs I was able to arrange such as flu shots for senior citizens and free dental screenings for children.  At the same time, I found the day to day interactions and inter-workings of New York City politics devoid of the cross-cultural opportunities that so endear me to the international setting.

The Councilwoman I worked for was on a term limited appointment and following the expiration of her term at the end of 2005, I was at a cross-roads.  Believing that security and stability were necessary aspects for my career I began my MBA in Finance at Fordham University and also started on a career in banking in mid-2006.  After three years in the banking industry, both at The Bank of New York Mellon and Merrill Lynch, I learned several important characteristics about myself.  For one, I was very good at the work, but truly this never endeared me to my day to day tasks.  I am a high-achiever from a hard-working middle class background.  When put to task, I do not know any other way to respond than to do my best.  My grandfather was a working class immigrant, who left his home in Italy at the age of seven-teen to make his way in America.  The dirt that stained his hands from a hard day’s labor is still present in my mind’s eye.  I will always work hard.  Secondly, I learned that I do not like, nor am I am I man who values the trappings that are associated with an investment banking career.  I have no great love of monetary gain, which whether good or bad, is most definitely a key motivator behind a banking career.

The financial crisis was also a crisis of conscience in my life.  I watched many people around me, good people, lose their jobs and feel lost as they faced a juncture in their careers.  Their careers had been dominated and characterized by what the firm expected them to be, what the firm expected them to know.  Now the financial crisis put them in a position where their skill sets were less their own and solely dominated by what they had been bred to be.  They now stood lost with nothing to show for their efforts except a mortgage payment and car loan.  I did not lose my job during the financial crisis, but rather I found the courage to believe that my career can only be dominated by work that I am passionate for.  I do not value money, but rather I value knowledge, wisdom, and experience.  My career should not be developed by an organization, but rather should be developed according to what I love and who I am innately at my core.

So here I stand before you, having left my job at Merrill Lynch in July, refocusing my degree aspirations to the study of Management and Leadership. I have begun my foray into the International Development field some 5 years after earning my undergraduate degree.  My life has come full-circle, but I have been tempered and emboldened by my life-experience.  My values are unshakeable and that is truly the wealth that I have received these past 5 years.

My career aspirations are clear.  I have been studying abroad in Beijing, China this fall semester and this experience has led me to form a passion for the people of China and a burning desire to master Mandarin.  My time at the UN Democracy Fund this spring will open significant doors for my career.  I believe it will be the perfect bridge for my political and financial backgrounds, but most of all ensure that my daily efforts are devoted to bring about change for the betterment of others’ lives.

So now that you got a better idea of where he is coming from….I am going to start interviewing him with some questions and get his own ideas.

in his own words:

i was originally a finance major, and was to follow the lines of a banker, continued in finance in Merryl Lynch - or another bank as a trader. but soon i realized i didnt have a passion for the work, for finance in general. so i feel my original path was misguided because i am more macroeconomic as i am more interested in politics. i switched to management because i didnt just want to be another guy who got an MBA for a better job. i value knowledge, wisdom, and experience. i wasn’t getting those, and i felt my MBA wasn’t allowing me to get it. my school is an b-mba, and wouldn’t help me get that much higher salary. a lot of the classes are like my undergrad. so i didn’t see the value from the traditional school outline - so i made my own based on the social - political side, instead of on the finance and math side. That is how I ended up in China, reading up on the political issues, this is the next battleground of the next century, or at least half century. USA has a lot of work to keep relations with China.

what about the students in your class

here in China, its 70% chinese. i am noticing that the chinese are going to mba for the same mistaken reasons americans go for an mba - just for social standards, to make more money in their jobs - but not for true embetterment. they are more focused on monetary gains then on knowledge. they see the mba as an opportunity to make more money, which i feel is the wrong reason to get an education. the only extra benefit in china as an mba is still more noticable than in usa. in usa, everyone these days seems to get an undergrad, and it doesnt seem to differentiate your self from one another. “once you start giving everyone a gold metal, its not a gold metal anymore.” everyone has an undergrad in the usa, and its almost getting that way with an mba.

there aren’t enough risk takers in mba programs anymore. they are just after money. my view in life now is money will follow what i do. i am not sure how much that will be, but the money i make will suffice for what it is a truly enjoy doing.

anything else you want to add.

it upsets to hear me that fordham university is offering a 2nd degree for chinese students who want to get their fordham degree. its a 5 week program in the summer for $10,000usd. these chinese students save for so long, and is this investment worth it. 5 weeks in usa for that much money. seems fishy to me.

=========================

Well, I have talked about MBA in the past and I hope my chat and discussion with Jon give you another angle.

you can see some of my previous posts for your reference

surrounded by hard working people - does it require an mba

maybe i should have gone to mba school…

survived cyber monday, who needs an mba

greasing the wheels, making business move forward. How many times do people dispute and squabble over rather small issues. Usually my style is let the other guy win the specific battle, but i will work to win the overall war!
Maybe some specific stories will help explain. Driving across usa with my bud scott katin back in 2003 summer - we took his standard shift pickup truck and it was just the two of us. Now….i do have a drivers license, i have purposely lived in metro cities that don’t require me to drive! Too much hassle…..but in this trip, i had to take the wheel and freshen up on my stick shift skills!
In maybe western Pennsylvania i took the wheel, pretty flat area, not many cars. Coming to Indiana, still flat, but more cars. I have a big tractor trailer truck pull up on me, with a small slope hill. I shift and move, but stall and bump / tap into his truck. 2 or 3 times of the same, i move forward finally. I ask Scott, do i pull over????? “nah, just tapped him”….
Down the road, i see in my rear view that tractor trailer, quickly passing other cars, coming after me! So….i pull over. This guy was pissed! Big beard, beer belly, smelling like gasoline, he starts yelling “what the hell you Connecticut boys doing crashing into me, not even stopping to clear it up with me”.

Scott starts returning the yelling, and the trucker says hes got state police on the way to clear it up….
Now, i was silent most of the time, apologizing, but when i heard he called the cops, i asked how much he wanted ($) to make this go away.
I opened my wallet, cant remember the exact amount, but it was around 50usd. I gave it to him, he smiled, said let this be a lesson to ya, called off the cops, and drove away.
Scott was a bit upset with me, saying there wasn’t any damage, and the guy is a jerk, etc.
I just say, why get cops there, questions, and a waste of time? Ill pay some money to skip that bullshit scene.
This is a more clear example of what i mean by paying people off. But some many times in life and in business i feel like i am faced with this choice, of just paying the “disputed charge” and moving forward instead of heaps of time discussing it.

“Intelligence without ambition is a bird without wings.” Salvador Dali

I have always been a supporter of being street smart, or “hustle”, versus a person who knows what the book says. In life, I feel, so many times our specific situations are not found in books, and that is what makes life dynamic.

I am not an expert, in no way, to being a street smart person. I just know, that I have to do things that maybe not many people have done. Or, at least, not in the same specific situation that I am in - which is definitely more common. For example, my passport, and my visa. It depends on what job you have, your business, where you are from. And the rules change! You cannot be a booksmart person that isn’t going to go out and ask around, talk to people in similar situations. You have to make it work. Just push it through.

I was chatting to my buddy Scott Katin, and he is always a philosophical guy that puts things in perspective. He makes it seem I am always fighting, but if I keep swinging punches but don’t put my head up to look where I’m punching and what I’m hitting, what is the purpose. Sure, we all need to look where we are fighting, and which direction we are pushing. But that is just my personality and I cannot fight the fact that I want to fight all the time. With me, or against me.

I did fairly well in my book studies. I do, though, remember resisting learning classes or subjects I did not feel I needed. Chemistry was always one of them, I was told I had to memorize the periodic table of elements in high school, i raised my hand and simply said “why”? Teacher didn’t like that much….and from the first day onwards it was a battle. But she took me after class and asked me why I am being difficult, I said its because I do not want to use my time and energy learning something I do not plan to use in the future.

She asked me, what do you want to do when you grow up. I said “business”, and she said I will use Chemistry in business, I can’t remember the example. But my response was that no, I would not use chemistry in business. It went like that all semester, and I applied myself just enough to get a passing grade. I offset that grade with other classes that I was interested in and my overall GPA that semester was still decent.

So, I ask you, does a GPA or a grade in a class affect real life business and situations? Maybe I was a bit of a punk kid in that class, but I told my teacher, focus on the other students who want to learn chemistry, don’t focus on me.

Push forward, learn where necessary, and adapt to the environment.

Being in China, I didn’t expect to be exposed to so many europeans….but from my experiences I have gotten involved with more Europeans than Americans here. Of course I am learning more and more how do to business in China as a foreigner…..but at the same time, I am getting exposure to doing business with Europeans.

My involvement with DBR Shenzhen / Finland didn’t work out…and I think that is for a few reasons. But one I will chat about today is the differences I noticed between Europeans and Americans. I would talk about apples, and I would get responses about oranges…..

Difference 1: Language - I am going to admit it, again, I am a spoiled american! I grew up speaking 1 language, doing business in 1 language, and mostly dealing with people who grew up in similar households and cultures as I did. Of course I grew up in a middle income suburb in Hartford, Connecticut - mostly exposed to Spanish (Puerto Rican), Italian, and Polish heritages….and maybe some of the parents / families couldn’t speak english and at my friend’s houses we’d hear the mom or dad talk in Italian or Spanish to our friends…..but I would say minor exposure to those who didn’t grow up speaking English language.

Now, dealing with Europeans, they are used to dealing in multiple currencies and multiple languages. And they LOVE to discuss the differences in the cultures between their countries in the EU. I feel left out, as I am an “ignorant” or “sheltered” American guy, and am not familiar with the politics or cultural differences of Germany versus Holland, for example. So many times, I am in bars with Europeans, and they would talk about these differences, and these experiences with different cultures…and I am left there listening, as I cannot really add anything to the conversations….

But not only is this difference with the culture and the knowledge of the cultural differences in the EU, but its also that most do not grow up with English, or not using it commonly. So when I deal with a European business associate, they struggle to express themselves in the English language.

Difference 2: Design / Detail - One thing taht is always annoying to me, is when in a project, the design is in the driver’s seat. To me, functionality is the primary focus - GET THE DAMN THING TO WORK…..then worry about how beautiful it is. I think this is why I enjoy doing business in china….as here in China they are also “get it done, worry about details later” attitude. I have the perspective that American’s have the “cowboy” attitude….and Chinese are similar there. But in Europe….they are more concerned with the design layout and the perfectionism of the product. This is a common dispute I have, with anyone, but I notice that in Europe, design is so important so I am often bumping heads in this department.

Difference 3: Work Ethic - I know I may get some heat from friends on this one…but I think most Europeans want to enjoy life, and are more casual about getting the project done as urgently as I may feel. Here though, Northern Europeans (Finland, Sweden) seem to have a stronger work ethic than the Southern Europeans (Italy, Spain), but even still, I sometimes would generalize that in Europe, its not normal to work overtime and weekends.

Of course there are books probably written about this subject, but I wanted to write down some of the differences I have highlighted in my dealings with Europeans, as an American.