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Venture Capital Has Low Quarter

Over the last week or so many indicators have come out which purport to show either good or bad news, depending upon the prognosticator. I would assume that the mixed bag of indicators means the economy is improving in many ways, but remaining bad, or worsening, in others. The latest indicator to come out is Venture Capital investment over the last quarter:

Except for the first three months of last year, however, this year’s first-quarter tally was the lowest for any quarter since the second quarter of 2003, when $4.57 billion was invested. The median amount invested in a round last quarter, $4.5 million, was the lowest since the fourth quarter of 1997, when the median amount was $3.9 million. The 2009 first-quarter median was $5 million.

This is a pretty low haul for Venture Capital investment, but it does not mean the economy is not also on the upswing. It is simply one of many indicators–the full scope of which seem to indicate that the economy is improving, but slowly.

Hidden Costs of Labor

One of the most important things for bosses to recognize when hiring new employees is to consider the costs, both the obvious costs and the hidden ones. This means that although you might hire someone at $10 an hour, you should consider the hidden costs of that hire first. This article details how the hidden costs of labor can be much more serious than most employers think.

For Jim Garland, who owns a corporate aircraft cleaning and support services company, a $14 per hour worker has a true cost of $19.63 per hour, or about 40% more than base pay. This so-called “loaded rate” includes fixed expenses — federal and state taxes, health insurance, workman’s compensation, uniforms, and paid time off — along with soft costs like the time spent training a new hire.

An increase of 40% of the base pay is a huge hidden cost, and one that could sink a business if the people in charge weren’t aware of the costs.

Dow Rises, So Do Coke, Boeing, and Disney

Weekly job numbers and rising retail sales helped to boost the Dow Jones Industrial Average today. Of course, the majority of the lifting was done by Boeing, Coca-Cola, and Disney.

The Dow Jones Industrial Average added 47.38 points, or 0.46%, to 10444.14, its first close in positive territory for the year to date since January. It is up 0.15% in 2010.

Walt Disney was the Dow’s best performer, up 93 cents, or 2.9%, to $32.57 after Bank of America Merrill Lynch raised its investment rating on the stock to “buy” from “neutral,” calling it “one of the most compelling equities in media and entertainment” heading into fiscal 2011.

Coca-Cola climbed 54 cents, or 1%, to 54.47 after UBS raised its investment rating to “buy” from “neutral,” saying it sees a buying opportunity and considers its bottler acquisition “the right move” in the long term.

These aren’t earth shattering numbers, but Coca-Cola posted a solid performance, as did Walt Disney and Boeing. It bodes well for the economy that these companies are finding ways to make profits even in the depth of a recession.

How Starbucks Got Its Groove Back

Starbucks was a company that exploded onto the scene all of a sudden. It expanded so rapidly that every comedian began making jokes about seeing Starbucks located right across the street from another Starbucks. The company suffered a couple of years ago because of this over-expansion. However, it seems to be making a steady comeback. The company made a 4% improvement over the last quarter.

On Wednesday, Starbucks reported that sales at stores open at least a year grew 4 percent, the first increase since December 2008.

Net income at the company, which is based in Seattle, was $241.5 million, or 32 cents a share, up fourfold from $64.3 million in the same period last year. Revenue climbed 4 percent, to $2.7 billion.

Analysts expected the company to earn 28 cents a share on revenue of $2.65 billion.

“In two years time, we have transformed the corporation and, I think most importantly, the customer experience,” Mr. Schultz said in an interview. “The luster is back on the brand.”

I have seen anecdotal evidence of this. While people were claiming that Starbucks’ coffee tasted awful only a couple of years ago, they now have their stellar reputation back.

Virtually everyone has seen the late-night infomercials advertising for Snuggies

Virtually everyone has seen the late-night infomercials advertising for
Snuggies–the blanket that you can keep your arms in while you read, or
eat, whatever. It is essentially an overglorified blanket with
sleeves. So, that product is ridiculously enough.

But it gets worse. I have stumbled across a website
advertising Snuggies for Dogs. That’s right, a blanket…with sleeves…for
a dog. Let me remind you, dear reader, that dogs already have a blanket with sleeves–called fur!!!

I know a good businessman when I see one–and Michael Jackson is, or was, one.

I know a good businessman when I see one–and Michael Jackson is, or was,
one. Days after his death, his tickets are now selling at even higher prices than they were previously. In death he accomplished a higher profit than he could in life.

There are plenty of tickets though, used or unused, from Jackson’s previous concerts throughout the years.

Many are from his family’s famous 1984 Victory Tour.

“Buy it Now” prices range from a few hundred dollars to well over $1,000.

There is even a ticket on sale from a concert in Puerto Rico for $25,000!

The new CEO of Palm is an ex-Apple hardware engineer who is credited with creating both the iPod and Palm Pre. Seems like a good plan

The new CEO of Palm is an ex-Apple hardware engineer who is credited with
creating both the iPod and Palm Pre. Seems like a good plan Palm! On
the back of Apple’s great successes in iPod, they are essentially
taking Apple’s sloppy seconds.

Rubinstein, 52, once one of Steve Jobs’ closest advisors, left Apple (AAPL)
in 2006 with stock holdings reportedly worth $26 million. He is said to
have clashed with Jobs over the wisdom of building the iPhone.

He was recruited as executive chairman
to help turn around Palm, once the leader in hand-held personal digital
assistants, after the private equity firm Elevation Partners made a
significant investment in the company.

The Pre, which Rubinstein
introduced in January to great fanfare, is considered the strongest
competitor to the iPhone to date. It was released last week, two days
before Apple unveiled the iPhone 3G S.

Not a bad move by Palm, either.
The man knows how Steve Jobs thinks, obviously has a proclivity towards
creating profitable communications devises, etc.

Many people are out there claiming that customer confidence in the market is increasing

Many people are out there claiming that customer confidence in the market is
increasing–but the statistics don’t seem to jive with that theory. A recent report came out that showed that sales numbers were even lower in May than we expected them to be.

According a Goldman Sachs/ICSC tally, overall same-store sales fell 4.6 percent, worse than the 3 percent drop predicted.

The lower-than-expected results did not include Wal-Mart stores,
which in recent months has boosted total results but has stopped
reporting monthly figures.

Last month’s same-store sales had edged up with Wal-Mart, but
excluding the world’s largest retailer, May was the 10th straight month
of same-store sales declines.

So we’re supposed to believe that customer confidence is UP when May
was the 10th month in a row for sales to decrease? The jobless rate did
fall this week–but at best this is a sign that the recession is not
deepening, not that it is improving in any way.

Georgia Congressman Hank Johnson is one of the few politicians out there actually making moves to help the small businessman and the economy

Georgia Congressman Hank Johnson is one of the few politicians out there actually making moves
to help the small businessman and the economy. The act would free up
billions of dollars in small business contracts back into the hands of
small businessmen.

Bill H.R. 2568 is titled, “the Fairness and Transparency
in Contracting Act of 2009.” The new bill is the only legislation ever
introduced in Congress to halt the diversion of over $100 billion a
year in federal small business contracts to Fortune 500 firms and
thousands of other large businesses.

Congressman Johnson worked with the staff at the American Small
Business League (ASBL) for several months to get the bill into its
final form before he introduced it into the House of Representatives on
May 21. (http://www.house.gov/apps/list/press/ga04_johnson/05_26_09_small_biz.shtml)

While I won’t comment on the political viability or appropriateness
of this bill (i.e., I will neither support nor oppose it here), it is
comforting to know someone is doing something that is both innovative
and constructive, as opposed to taking potshots at the opposing party.