first lessons:

a business mindset

I tried and failed at business ventures three times before. With a couple years of technical training, I tried earning a second income as a small appliance and home electronics repairman. It was cheaper to buy new than repair “old”. The next venture was selling solar-heated hot water systems. People could just as easily put garden hoses on their roof (it was southern Arizona) and save the expense of a metal system up there. And then, last year, I saw how my father-in-law’s young relative was making six figures in a health-focused business. She has Amazon- and Facebook- founders-level intensity which produces her ongoing results (building over the past 8 years). I was not interested, youth-focused, or charismatic enough to do what it takes. My prior ventures were great personally, just not rewarding financially for me.

Photo by Pixabay on Pexels.com

the importance of a “niche”

This year, my wife and I found a “niche” business. A “niche” is a product or service need, that is not widely available, nor really has much awareness outside of the profession. But is necessary nonetheless. With a lot of support, name recognition, and professional experience, my wife one evening reported to me that a business opportunity was offered to her – that she wanted to do. This was due to pending retirement of the principal operators in the niche market. The business requires unimpeachable ethics, scrupulous attention to detail, military-like precision with clients and retaining or bringing on skilled employees (or contractors).

do not quit your “day job”

A mistake of many new entrepreneurs, is to launch a business enterprise with little financial resources. They then have few options when mistakes are made or customers are slow to provide payment. Then there is even more emotional and physical stress learning the “do’s” and the “don’t”s of operating a business. In just the few weeks after initially deciding to engage in this business, the guts required to seriously and diligently apply ourselves to learning,- particularly with family and job requirements always keeping you busy, is challenging.

In the United States, working for yourself, with the intent to make a profit – to separate your enterprise from what the taxman (the IRS) would label a “hobby” – requires record-keeping, talent, and effort. Depending on the venture, every business has local, state and federal tax statutes regarding individual, partnership, and incorporation to stay within the law. Similarly, there are permits, licenses, and fees with all the aforementioned, to conduct business.

With certain businesses, providing products or services, there are many regulations, certifications, and insurance to purchase and renew yearly. While trying to classify whether there were workers considered by statute as employees to consider, we need general business and professional liability insurance. And probably, workmen’s compensation insurance: California is very strict on business operations. If you are still determined, you have done homework on your competition in the niche market, and calculated the profit versus expense projections before the first customer dollar is received – there is one consideration you may miss. You may find that your business needs to be funded almost entirely from your own “primary” income for a time. One of the first “rules” I have learned is to avoid going into debt while learning the “ropes”. Do not quit your day job before it sustains you.

seeking advice from experienced mentors

Photo by Pixabay on Pexels.com

I have only just started to explore the business banking relationships we will need for our venture. We will explore and weigh options on credit, payment processing, and loans. Similarly, I have only attended one seminar run by the small business education group, SCORE, (there are chapters in most communities) taught by people with decades of experience in all aspects of business. But for the entrepreneur, anywhere you find someone to help with the pitfalls to avoid, is great. One can then make all new mistakes to learn and develop as a business person.

your “why” has to be bigger than your fear

Photo by rawpixel.com on Pexels.com

After a career in the military, another in private industry, and still looking for challenge (and change), our own business will prove to be well worth it. After many years of doing without asking why and making someone else’s careers and dreams possible, you also can make your dreams, as well as those of your clients, become reality. But it takes ethics, drive, humility, implementing what others can teach and eagerness to keep pressing on to the goal.

club for erudite Old Salts

A Thursday evening discussion with an acquaintance over cigars, as retired Navy Chiefs, we were amicably discussing the Navy “salty” life, adventure, and places familiar to each of us around the world. With a lifetime of experience including travel to the same parts of former Soviet bloc countries, we then opined on 21st Century socialist nations. While rigid politically, some tacitly approve of workers ‘capitalist’ use of an underground economy to support their families. He illustrated discussing the merits of fine Cuban cigars he obtained. Skilled cigar rollers have access to tobacco, paper and other accessories to make – after the day’s production was completed and inventoried – some personal cigars to provide under-the-table income. He learned of accessing such side channels during global business travel. And tonight, the ‘entrepreneurial’ wheels in my mind started turning. In a Progressive future, there will always be those who obtain – and those who will then purchase – a premier cigar.

Tax disincentive

There are two certainties in life: Death and taxes. And a third, “if it sounds too good to be true, it isn’t true”. But there is also another truth. Politicians, bureaucrats and their backers (the news media, bankers, billionaire investors, or celebrities), all stir up chaos for their opponents, whip up groups of like-minded people by pretending to care for them, and make all sorts of speeches promising better times ahead.


The only difference between death and taxes is that death doesn’t get worse every time Congress meets.

Will Rogers, via Brainyquote.com

While people my age have heard all this nonsense before and are less inclined to go along, the palaver is not meant for my age group. Psychological journals, in various published studies, revel in the obvious. Young adults between 18 – 27, are more idealistic, much less structured in goals, exhibit more fluid work ethic, and are more motivated by income “fairness” and other talking points they read on social media. By the time men and women reach their Thirties, with stable jobs, goals, and families, these issues, rhetoric, and ‘social-justice’ activism become much less an influence. But the common talking points in social media and in politics today is how unfairly wealth is distributed. As a child, I was raised that hard work, skilled effort, ethics and morals would, over time elevate my station and economic success. There was plenty of room for anyone to become wealthy and provide for their families without blaming and taking from others. What changed?

Paying their “fair” share?

In 2019, I fear that people who have contributed to the economic well-being of the country for the least amount of time or produced the least amount of economic goods and services are being made fools of, by the wealthiest, least added-value members of society: politicians and bureaucrats funded by taxpayers. It is not that young people are in any way less important or less credible in their contributions and feelings, but forty percent of the Congress is far wealthier than those they represent. While every taxpayer in the United States can voluntarily contribute more to fund the Government, donate to charities for causes they feel strongly, and volunteer to aid those they feel are under-served, are there any who voluntarily give more than they are legally required? But most demand that Government support causes and constituents that are better served through local donations. And despite all the rhetoric we hear, does any public servant reside in public housing, use public transportation, or donate salaries and perks to the underprivileged?

Many, like one of my old college buddies, are worked up frequently about the lack of fairness and greed exhibited by members of a certain American political party, though there is plenty of blame to go around. Tonight, I am more worked up by my miscalculation on our annual income tax returns for Federal and State. We owe a large amount of income taxes due to the change in the approved deductions and income limits for other deductions. This is due to the “Trump Tax Cut” enacted in 2018. Researching the new tax policy, there are two ends of the economic spectrum that are benefiting, though the wealthiest Americans are benefiting far more.

Who benefits from the new tax plan?

With change in the standard deduction, doubling it to $24000 for those who file a joint return, many do not have to file complex returns. While there is some who think that increasing the “standard deduction” will reduce the incentive to make charitable contributions by lower middle-income workers, the tax policy really changes the taxes owed by the higher wage households- reducing the graduated scale of highest earning workers from 39 to 37 percent. And if those individuals are business owners, the rate may drop to 20 percent.


The people are hungry: It is because those in authority eat up too much in taxes.


Lao Tzu

For those caught in the “middle”, such as older taxpayers whose grown children are no longer family deductions, their seniority at work may elevate their incomes to higher tax brackets, and all the expenses of living and home ownership, there are disincentives to continuing to be an employee. But retirement also may come at a cost. Withdrawals from qualified retirement plans prior to age 59.5 incur income taxes and penalties. Some states like California tax retirement pensions, and with public service pensions largely unfunded, these states increase taxes to provide benefits and sacrifice the maintenance of infrastructure – roads, schools, and vital services.

Entrepreneurs and tax sense

Like many, I chose security of being an employee over most of my working life. But being a “worker” and not a “business owner” in 2019 has its tax disadvantages. Fair, ethical, and legal provisions used in the last twenty years have been significantly changed. While younger workers at lower wages and with young families may find some benefit from new tax provisions, others in the “Middle Class” are not as fortunate. Older, still working, married adults with now-adult children, who may still be providing for certain of their needs – no longer can claim them as deductions for tax purposes. Those fortunate to own homes in high property tax states, are limited in the amount they can claim federally- basically paying taxes a second time on the same income. Others, such as small business owners have complex tax rules to follow. The “Trump Tax Cut” seems to be flawed.

Some regulations should have come with bold print. With retirement savings such as employer 401K plans, IRAs and healthcare savings accounts available, these come with certain stipulations. Pre-tax income placed in flexible health spending accounts must be used within the calendar year or are lost; certain employer health plans can place pre-tax earnings in an account which can grow year after year, even into retirement, but must be used for medical expenses – or are taxed heavily. And for higher wage earners, traditional Individual Retirement Accounts, money invested for the purpose of reducing income taxes does not provide the immediate benefit sought.

The wealthiest Americans are fairing a lot better in 2019 than before. While true that the top 20 percent of all wage earners contribute the largest share of the revenue to fund the Government (50 percent of working Americans pay little income tax, while three percent contribute most of all), the overall taxes for those wealthiest Americans – many of whom are business owners – dropped significantly. I’m beginning to think that wealthy politicians are being disingenuous. They are not feeling nor acting in private like the outraged they claim to represent.

If people want to participate more fully in the “American Dream”, operating a successful business seems to be the vehicle to do so in 2019 and into the future. Except perhaps in California, or should the country decide to follow the anti-capitalist and anti-constitutional policies that have been voiced since the President’s election. A look at statistics indicates that the country is not in jeopardy of an economic crisis as some suggest. In the United States in 2017, the median family income was $61,000; in California, $81, 000, according to the US Census Bureau. While there are many who are at the extremes in California and elsewhere, there are many who have gained wealth and property through operating successful businesses.

Paying closer attention to income tax, balance sheets, and government policies that affect income is necessary. But that comes with age and the acquisition of property. All the rest is just politics.

Don’t participate in bullshit – be pure in your heart — joypassiondesire

Whenever you hear someone complain – don’t join them in their negative rampage. Complaining doesn’t make anything better – you are better off being quiet than joining them in their complaining. Even if it is socially accepted and expected of you to join in when someone complains, it is never of value. You always have […]

Don’t participate in bullshit – be pure in your heart — joypassiondesire

Sandcastles

a tale of three citizens

“A house divided against itself cannot stand.” I believe this government cannot endure, permanently half slave and half free. I do not expect the Union to be dissolved — I do not expect the house to fall — but I do expect it will cease to be divided. It will become all one thing or all the other.” Abraham Lincoln

https://www.goodreads.com

Allen

As you sip a latte at Starbucks, feeling outraged by a President who apparently does not share your social conscience, you wonder how the country has become so brazenly racist and homophobic. While you have not seen any negative impact to your paycheck nor fewer clients to your business, the economy is horribly worse because others are earning significantly more. You did not vote in the Presidential election, though you like what you hear about the new Congress: a Muslim woman and a Green social media-savvy gadfly. When not supporting gender-equality pastry shops, you purchase organic, locally-grown produce at Trader Joe’s. You buy Emerging Markets coffee beans online from a group that supports Guatemalan children. And you truly believe your Tesla, Prius, or Audi lessens your carbon footprint.

Yrena

As an immigrant who saved up the required fees, filed for the visas and immigration forms, and emigrated to her new country according to the laws and practices of each nation, you are diligently working to learn the language, customs and history of your new home. You know your ethnic community in the area you have settled have members – family and extended family perhaps- who live in violation of the law. Some overstayed their student visas, and other came across hiding in a van or in leaky boats that beached one moonless night. You are working two jobs to pay for your daughter to attend community college. She will become the first college-educated member of your family. Your son is learning to be a mechanic after school. When the television, newspapers and the Internet declare that you support wholeheartedly the new ‘migrants’ and see them being pandered to by politicians and journalists, you are conflicted, upset, or angry. And your family are not “hyphen” Americans. You are American.

Cole

As an Iraq War veteran, you do not understand people who hate you sharing your opinions, and do not financially support veteran suicide-prevention projects but pay to hear activists demean America at college campuses. You are irritated by people who do not remember what happened on 9/11 or tell you how the current Administration is working with the Russians. Like your father before you, you are teaching your son or daughter firearm safety and how to hunt for deer, elk, or boar. You may not be religious, yet you assert your rights as parents to approve what they are taught as curriculum. You know when you are being played by b.s. artists in government, the media and education – that was one of the skills learned from military service and especially from time in a war zone. You don’t trust politicians or bureaucrats. Not from any party.

Politics and personal loyalties based on ideology fluctuate over time. Human nature is flawed and subject to the same weaknesses. Politicians acquire power from citizens, and get more corrupt as the citizens get more aloof. Without unity, a house divided cannot stand. And observing all the past civilizations collapsed in the dust of history, the lack of unity of a people accelerate the incoming tide.

domestic tranquility

The basic needs of any person are food, shelter, and clothing.  In modern society, people have expectations that needs include healthcare, education and sanitation.  But people also have emotional needs: safety, security, comfort, and significance.   In the Twenty First Century,  many people are willing to sacrifice personal freedom for the sake of “needs” provided by Government.  Of course,  people who demand a king  and assume “their side” will benefit,  have historically been oppressed.

When the American nation’s founders established the basic framework in the Constitution,  they knew their history: those subjugated by a king had little control in how they lived (general welfare); little experience of equity or fairness between the governing and the governed (justice); and few limits on role of Government in people’s lives ( safeguard of domestic tranquility and common defense).  Because they understood that people given a taste of power and access to others’ money, always want more,  they were deliberate in creating a balancing act.

In the third decade of the third century since the Constitution was established, the nation is losing the respect for the differences that made it unique in world history.   Unity as an American, with a common language, culture, and history is all but extinct.  Respect for civil authority, freedom to worship as one pleases, and hold differing opinions, is rarely exhibited today.   Contempt for opponents, and ever-increasing Government control is common.  Worse still, officials who have publicly-stated intent to abrogate the fundamental balance provided by an Executive, Legislative and Judicial separation of powers, and personal liberties guaranteed in our Constitution –  have been appointed (not elected),  elected and re-elected.  As Benjamin Franklin once said, the USA is a constitutional republic, which he understood, to keep in check,  its citizens would have to be informed and involved in its affairs whether local or international.   In contrast to other forms of government,  the citizens can (when exercised) direct our representatives to compromise and cooperate to get things done.   

One can only mentor, teach and ultimately, hope,  people who now believe that anyone who arrives – by whatever means –  in the territory should be a citizen, that “socialism”  despite many aspects that indicate fallibility, is superior to capitalism, and in distribution of other’s wealth, will pause to reflect.  No social construct is perfect.   And those who achieve power, wealth and influence, in the post-Constitution world, may not tolerate any disruption to “domestic tranquility”.

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.

Preamble, United States Constitution ( reprinted in https://www.law.cornell.edu/constitution/preamble

Ask the Chief

“veteran” is gender-neutral

Some of my closest shipmates, friends, and mentors are female Sailors, officer and enlisted. Many, like me, are no longer on Drilling Reserve nor on Active Duty. Some have retired after long and distinguished military careers. Some have continued to support fellow veterans with active engagement with organizations such as Honor Flight. Some I served with are successful attorneys, realtors, and teachers. Some are corporate executives, software engineers, and human resource managers. Relatives who formerly served in the Marine Corps and others beginning careers serving in submarines.

Many of my peers in the years since the Gulf War served in war zones. Thirty-seven thousand female military served in the Gulf War, where many served in roles that exposed them to Scud attack and IEDs. Five female soldiers were killed in enemy action and two were taken prisoner. Since then, nearly a thousand female military members have been injured (843) or killed by hostile action from the USS COLE bombing in Yemen, to wars in Afghanistan and Iraq. [At the time of this writing, a female Chief Cryptologist, a linguist, was killed along with two other military members and one DOD civilian in a terrorist bombing in a Syrian town.] Women actually have been in combat, have come under fire, been injured and have been killed serving in the US military since the Revolutionary War. History documents that women disguised themselves as men in order to serve since the Revolution, in the Civil War, and until physical exams were instituted in the early 1900s. Nurses were recruited before the First World War.

Beginning in 1979, women graduated from the military academies. In 1994, female midshipmen augmented the male crew of a Spruance-class destroyer, the USS PETERSON, several summers while I was aboard. Since 9/11 I have known females serving year tours in Afghanistan and Iraq, providing intelligence, communications, logistics, and medical support. However, beginning in 1993, women began serving as combat pilots and flying sorties over Iraq. In 2013, Defense Secretary Panetta lifted the ban on women serving in combat roles. The impact of female veterans serving in increasing numbers and in more front-line occupations will increase the need for physical and mental health services, more VA female providers as well as gender-specific services. One statistic indicated that the number of female service members has quadrupled in the forty years since 1973. By the end of the first decade of the new Millennium, female veterans grew to 10 percent of the veteran population.

But the bureaucracy is slow to react. As recently as 2016, veterans seeking care at VA facilities reported being mistaken for caregivers, spouses, or questioned their veteran status. Additionally, in contrast with employer-provided health plans, the VFW survey reports respondents found the VA required co-pays for preventative-care prescriptions including contraceptives.

veterans helping veterans

In a recent program, “Returning the Favor”, Mike Rowe whom many may recognize from “Dirty Jobs” fame, featured a male Iraq War veteran who runs a gym in Austin Texas, and through Make a Vet Sweat helps fellow veterans overcome Post-Traumatic Stress Disorder through exercise. It was in the course of the show, one of the female veterans served discussed her career-ending injury resulting in her own PTSD. Since the Gulf War time, I have known that female servicemembers have been in combat, risking death and injury, from hostile fire, IEDs, and terrorist attacks just as their male servicemembers have. The availability of creative therapies for working through mental health issues helps each sufferer, whether it is animals, exercise, or outreach. And may help many veterans avoid prescription drug addictions.

veteran suicide has no gender

According to statistics compiled by the Veterans Administration, of veterans who attempt suicide, the numbers of female veterans were increasing from 14 per 100,000 in 2001 to 17 per 100,000 population by 2014. This may be due the increasing number of female service members since 2001. Studies report that suicide rate decreased between 2001 and 2014 for female veterans receiving mental health services. While in the overall population, male suicide is three times greater than female, men more often use firearms while females tend to poison or overdose. In a VA fact sheet published in August 2017, female veterans who reported military sexual trauma or harassment were more likely to commit suicide than other female veterans. And overall, female veterans are more likely to commit suicide than civilian women.

marriage and divorce

Compared to civilian women, female veterans were more likely to be married while in the service, and at younger ages than their counterparts. Thirty percent of female military members were likely to be married between ages of 17 and 24, while eight percent of civilian women were. And the same veteran age group was more likely to be divorced compared to civilian women. In 2015, a study found that female veterans of all ages were more likely to be divorced than civilians, but civilians were more likely to have been divorced more than once.

healthcare and homelessness

The VFW has considerable resources and political clout engaged in support of female veterans. They commissioned a survey, from December 2015 to January 2016, with 2000 validated Active Duty, Reservist, retiree and vet respondents, on issues and challenges for women veterans. The survey found that the Veterans Administration needs to hire female healthcare providers to treat female veterans unique concerns. Lacking the personnel, the majority of the female veterans reported they were not given an option to request the gender of their VA healthcare provider.

The survey also sought information on female veteran homelessness. Four percent (72) of the respondents reported being homeless, and of these, 46 percent reported living in another person’s home (‘couch surfing’). Seventy percent of the homeless veterans had children; a third of them reported having children impacted their ability to receive care at a VA facility.

education and employment

Since the end of the Second World War, female veterans, who made up less than 9 percent of all veterans, like their civilian counterparts, who had worked in the defense industries during the war, were less likely than male veterans to use the GI Bill, or did not pursue college education due to social pressure (women in the home instead of the workplace). Studies in 2015 on the educational level and employment of female veterans indicates that they obtain a Bachelors or higher degree later in life than civilian women, are more likely to work in management, professional and technical occupations (49 versus 41 percent), and more work for local, state or federal agencies than their civilian counterparts. Twenty-nine percent of veterans work in sales or office occupations compared to thirty percent of non-veteran women. [statistics from: report, National Center for Veteran Analysis and Statistics, February, 2017, see va.gov/vetdata]

veteran groups

To inform veterans of their benefits, aid them with specific needs affecting them, provide networking for employment and business opportunities, and lobby on their behalf with lawmakers, service-providers, and the public, there are several organizations. One of the largest organizations specifically focused on women veterans is the Women’s Veteran Alliance. This national organization holds regional employment workshops, networking ‘mix and mingles’, conferences, and opportunities for businesses looking to hire veterans. See their link for female veteran “allies” (referrals and local organizations) More information is available on their Facebook page.

Since 1970, the National Veterans Foundation, its founder “Shad” Meshad, a Vietnam veteran, has been meeting the needs of veterans with mental health counseling, with three hundred offices across the country. Staffed by veterans of all periods – Vietnam, Cold War, Iraq and Afghanistan, they provide counseling and referral. All of these are located away from VA hospitals. (The reputation of VA hospitals in the last couple decades particularly among Vietnam veterans has suffered negative exposure, “new management” and political promises to fix internal problems). NVF’s counseling programs particularly with Post Traumatic Stress, according to their information webpage, were called upon after the attack on the World Trade Center in New York after September 11, 2001.

States each have their own Department of Veteran Affairs. In California, CALVET has a resource page for female veterans, from housing assistance, advocacy to employment and health. CALVET also provides resources for groups and agencies to provide support to the veteran.

The Veterans Administration has a directory of female-veteran service organizations here

FB make a vet sweat