I started my own business, rebresearch. It puts food on my table, and provides satisfaction that I’m helping people. It seems to me that other folks, particularly veterans, could benefit from owning their own businesses. Veterans seem to possess more of the skills for successful business startup than found the general population, and I notice that veterans start businesses more than most folk do, too.
Some 50% of returning veterans from WWII started their own businesses, I’ve read, and some were very successful. Walmart, the world’s largest retail company, for example, was founded by WWII Army intelligence officer Sam Walton. Then there’s FedEx, founded by Fred Smith, a Marine Corps Veteran of Vietnam, two tours, where he earned two Purple Hearts, a Bronze Star, and Silver Star.
Both of the above are in supply/ logistics, but veterans also open real estate shops, coffee shops, construction… Their success rate is higher than non-veterans perhaps due to skills they may not appreciate: physical stamina, organization, discipline, and the ability to “get the job done.” Having a successful business requires that you either show up every day at 6:30, or 7:30 — and to have a trusted replacement ready if you can’t. Many folks in the population don’t seem to understand the need to show up. This Is not to say that starting a successful business is easy, even if you show up and know what you’re doing, but reliability and hard work go a long way. Besides, many veterans have specific skills that transfer directly. See below, some business ideas with links to veteran-started companies in each area.
veteran-owned business directory copied from https://www.veteranownedbusiness.com.
One advantage of stating a business over working for others is that you are guaranteed to get hired. And you can hire your wife, etc. Also, there’s a bigger up-side than working for others. There are tax benefits too — your car and computer can be bought with pre-tax dollars assuming you use them in the business. These are not insignificant benefits — usually your tax bracket is higher than your profit margin. You generally have to work more hours per day as an entrepreneur, but if you like the work and have the skills that might not be too bad.
Perhaps you learned cybersecurity
Veterans often have credentials and skills that are rare in the country at large, and this can set you up for a good job. A high security clearance, for example– it’s necessary for many jobs in security –or skills in airplane repair, fire-arms, martial arts, shipping, recruiting, food service, communications, security, commissary… If these areas appeal to you, you can get extra training, either while still in the military or outside, and the gov’t will often pay for it. If you’re already out, think of using your VA benefits to go to school. You’ll want to fill in gaps, too, like in accounting. Good luck.
It’s good to have hero, someone whose approach to life, family and business you admire that you might reasonably be able to follow. As an engineer, inventor, I came to regard Peter Cooper of New York as a hero. He made his own business and was a success, in business and with his family without being crooked. This is something that is not as common as you might think. When I was in 4th grade, we got weekly assignments to read a biography and write about it. I tended to read about scientists and inventors then and after. I quickly discovered that successful inventors tended to die broke, estranged from their family and friends. Edison, Tesla, Salk, Goodyear, and Ford are examples. Tesla didn’t marry. Henry Ford’s children were messed up. Salk had a miserable marriage. Almost everyone working on the Atom Bomb had issues with the government. Most didn’t benefit financially. They died hated by the press as mass-murderers, and pursued by the FBI as potential spies. It was a sad pattern for someone who hoped to be an inventor -engineer.
The one major exception I found was Peter Cooper, an inventor, industrialist, and New York politician who was honest, and who died wealthy and liked with a good family. One result of reading about him was to conclude that some engineering areas are better than others; generally making weapons is not a path to personal success.
Tom Thumb, the blower at right is the secret to its light weight per power.
Peter Cooper was different, both in operation and outcome. Though he made some weapons (gun barrels) and inverted a remote control torpedo, these were not weapons of mass killing. Besides he but thee for “the good side” of the Civil War. And, when Cooper made an invention or a product, he made sure to have the capital available to make a profit on it too. He worked hard to make sure his products were monopolies, using a combination of patents and publicity to secure their position.
Brand management helps.
Cooper was a strong family man who made sure to own his own business, and made sure to control the sources of key materials too. He liked to invest in other businesses, but only as the controlling share-holder, or as a bond holder, believing that minor share-holders tend to be cheated. He was pro monopoly, pro trusts, and a big proponet of detailed contracts, so everyone knew where they stood. A famous invention of Cooper’s was Jello, a flavored, light version of his hide-glue, see the patent here. Besides patenting it, he sold the product with his brand, thus helping to maintain the monopoly.
Cooper was generous with donations to the poor, but not to everyone, and not with loans. And he would not sign anyone’s note as a guarantor. Borrowers tended to renege, he found, and they resent you besides. You lose your money, and lost them as a friend. He founded two free colleges, Cooper Union, and the Cooper-Limestone Institute, plus an inventor’s institute. (I got my education, free from Cooper Union.) Cooper ran these institutions in his lifetime, not waiting till he was dead to part with his money. Many do this in the vain hope that others will run the institution as they would.
Peter Cooper always sought a monopoly, or a near monopoly, patenting his own inventions, or buying the rights to others’ patents to help make it so. He believed that monopolies were good, saying they were the only sort of business that made money while allowing him to treat his workers well. If an invention would not result in a monopoly, Peter Cooper gave the rights away.
The list of inventions he didn’t patent include the instruments to test the quality of glue and steel (quality control is important), and a tide-powered ferry in New York. Perhaps his most famous unpainted invention was a lightweight, high power steam locomotive, “The Tom Thumb”, made in 1840. Innovations included beveled wheels to center the carriage on its rails, and a blower on the boiler fire, see photo above. The blower meant he could generate high-power in a small space at light weight. These are significant innovations, but Cooper did not foresee having a monopoly, so he didn’t pursue these ideas. Instead, he focussed on making rails and wire rope; he patented the process to roll steel, and the process for making coke from coal. Also on his glue/jello business. Since he made these items from dead cows and horses, he found he could also sell “foot oil” and steam-pounded leather, “Chamois”. He also pursued a telephone/ telegraph business across the Atlantic, more on that below, but only after getting monopoly rights for 50 years.
Cooper managed to stay friends with those he competed with by paying license fees for any patents he used (he tried to negotiate low rates), or buying or selling the patent rights as seemed appropriate. He also licensed his patents, and rented out buildings he didn’t need. He rented at a rate of 7% of the sale price, a metric I’ve used myself, considering rental to be like buying on loan. There is a theory of stock-buying that matches this.
The story the telegraph cable across the Atlantic is instructive to seeing how the pieces fit together. The first significant underwater cable was not laid by Cooper, by a Canadian inventor, Frederick Gisborne. It was laid in 1852 between Prince Edward Island and New Brunswick. Through personal connections, Gisborne’s company got exclusive rights for 30 years, for this and for a cable that would go to Newfoundland, but he didn’t have the money or baking to make it happen. The first cable failed, and Gisborne ran out of money and support. Only his exclusive rights remained. This is the typical story of an inventor/ engineer/businessman who has to rely on other peoples’ money and patience.
A few months after the failure, a friend of Cooper’s, Cyrus Field, convinced Cooper that good money could be made, and public good could be done, if Cooper could lay such a cable all the way to London. One thing that attracted Cooper to the project was that the cable could be made as an insulated iron-copper rope in Cooper’s own factory. Cooper, Field, and some partners (see painting below) bought Gisborne’s company, along with their exclusive rights, and formed a new company, The New York, Newfoundland & London Telegraph Company, see charter here. The founders are imagined* with a globe and a section of cable sitting on their table. Gisborne, though not shown in the painting, was a charter member, and made chief engineer. Cooper was president. He also traveled on the boat with Gisborne to lay the cable across the St. Lawrence – just to be sure he knew what was going on. This cable provided a trial for The Trans Atlantic cable.
The founding individuals to lay a transatlantic cable. Peter Cooper at left is the chairman, Cyrus Field is standing, Samuel Morse is at the back. Frederic Gisborne, a founder, does not appear in the paining. Typical.
Samuel Morse was hired as an electrician; he is pictured in the painting, but was not a charter member. Part of the problem with Morse was that he owned the patent on Morse-telegraphy, and Cooper didn’t want to pay his “exorbitant” fees. So Cooper and Field bought an alternative telegraph patent from David Hughes, a Kentucky school teacher. This telegraph system used tones instead of clicks and printed whole letters at a time. By hiring Morse, but not his patents, Cooper saved money, while retaining Morse’s friendship and expertise. The alternative could have been a nasty spat. Their telegraph company sub-licensed Hughes’s tone-method a group of western telegraph owners, “The Western Union,” who used it for many years, producing the distinctive Western Union Telegrams. With enough money in hand and credibility from the Canadian trial, the group secured 50 years monopoly rights for a telegraph line across the Atlantic. Laying the cable took many years, with semi-failed attempts in 1857, 1858, and 1865. When the eventual success came in 1866, the 50 years’ monopoly rights they’d secured meant that they made money from the start. They could treat workers fairly. Marconi would discover that Cooper wrote a good contract; his wireless telegraph required a widely different route.
I should also note that Peter Cooper was politically active: he started as a Democrat, helped form the Republican Party, bringing Lincoln to speak in NY for the first time, and ended up founding the Greenback-Labor Party, running for president as a Greenback. He was strongly for tariffs, and strongly against inflation. He said that the dollar should have the same value for all time for the same reason that the foot should have the same length and the pound the same weight. I have written in favor of tariffs off and on. They help keep manufacturing in America, and help insure that those who require French wine or German cars pay the majority of US taxes. They are also a non-violent vehicle for foreign policy.
Operating under these principles, through patents and taxed monopolies, Peter Cooper died wealthy, and liked. Liked by his workers, liked by much of the press, and by his family too, with children who turned out well. The children of rich people often turn out poorly. Carnegie’s children fought each other in court, Ford’s were miserable. Cooper’s children continued in business and politics, successfully and honorably, and in science/ engineering (Peter Coper Hewitt invented the power rectifier, sold to Westinghouse). The success of Peter Cooper’s free college, Cooper Union, influenced many of his friends to open similar institutions. Among his friends who did this were Carnegie, Pratt, Stevens, Rensselaer, and Vanderbilt. He stayed friends with them and with other inventors of the day, despite competing in business and politics. Most rich folks can not do this; they tend to develop big egos, and few principles.
Robert Buxbaum, November 30, 2022. I find the painting interesting. Why was it painted? Why is Gisborne not in it and Morse in the painting — sometimes described as vice President? The charter lists Morse as “electrician”, an employee. Chandler White, holding papers next to Cooper, was Vice President. My guess is that the painting was made to help promote the company and sell stock. They made special cigars with this image too. This essay started as a 5th grade project with my son. See a much earlier version here.
Popular emblem for hard hats in the USA. The original quote is attributed to Sailor Jack, a famous tattoo artist.
The title for this post is a popular emblem on US hard-hats and was the motto of a famous, WWII era tattoo artist. It’s also at the heart of a divide between the skilled trade unions and the labor movement. Skilled laborers expect to be paid more than unskilled, while the labor movement tends to push for uniform pay, with distinctions based only on seniority or courses taken. Managers and customers prefer skilled work to not, and usually don’t mind paying the skilled worker more. It’s understand that, if the skilled workers are not rewarded, they’ll go elsewhere or quit. Management too tends to understand that the skilled laborer is effectively a manager, often more responsible for success than the manager himself/herself. In this environment, a skilled trade union is an advantage as they tend to keep out the incompetent, the addict, and the gold-brick, if only to raise the stature of the rest. They can also help by taking some burden of complaints. In the late 1800s, it was not uncommon for an owner to push for a trade union, like the Knights of Labor, or the AFL, but usually just for skilled trades for the reasons above.
An unskilled labor union, like the CIO is a different animal. The unskilled laborer would like the salary and respect of the skilled laborer without having to develop the hard-to-replace skills. Management objects to this, as do the skilled workers. A major problem with unions, as best I can tell, is a socialist bent that combines the skilled and unskilled worker to the disadvantage of the skilled trades.
Also popular. Few workers harbor a fondness for welfare or socialism. Mostly they want to keep their earnings.
Labor union management generally prefer a high minimum wage — and often favor high taxes too as a way of curing societal ills. This causes friction, both in wage-negotiation and in political party support. Skilled workers tend to want to be paid more than unskilled, and generally want to keep the majority of their earnings. As a result, skilled laborers tend to vote Republican. Unskilled workers tend to vote for Democrats. Generally, there are more unskilled workers than skilled, and the union management tends to favor Democrats. Many union leaders have gone further — to international socialism. They push for high welfare payments with no work requirement, and for aid the foreign socialist poor. The hard-hats themselves tend to be less than pleased with these socialist pushes.
During the hippie-60’s and 70’s the union split turned violent. It was not uncommon for unionized police and construction workers to hurl insults and bricks on the anti-war leftists and non-working students and welfare farmers. Teamster boss Jimmy Hoffa, supported Nixon, Vietnam, and the idea that his truckers should keep their high wages at the expense of unskilled. Rival teamster boss, Frank Fitzsimmons pushed for socialist unity with the non-working of the world, a split that broke the union and cost Hoffa his life in 1975. Eventually the split became moot. The war ended, US factories closed and jobs moved overseas, and even the unskilled labor and poor lost.
Skilled workers are, essentially managers, and like to be treated that way.
The Americans with Disability Act is another part of the union split. The act was designed to protect the sick, pregnant and older worker, but has come to protect the lazy, nasty, and slipshod, as well as the drug addict and thief. Any worker who’s censored for these unfortunate behaviors can claim a disability. If the claim is upheld the law requires that the company provide for them. The legal status of the union demands that the union support the worker in his or her claim of disability. In this, the union becomes obligated to the worker, and not to the employer, customer, or craft — something else that skilled workers tend to object to. Skilled workers do not like having their neighbors show them high-priced, badly made products from their assembly line. Citing the ADA doesn’t help, nor does it help to know that their union dues support Democrats, welfare, and legislation that takes money from the pocket of any one who takes pride in good work. We’ll have to hope this split in the union pans out better than in 1860.
Robert Buxbaum, June 5, 2016. I’m running for water commissioner. I’d like to see my skilled sewer workers rewarded for their work and skill. Currently experienced workers get only $18/hour and that’s too little for their expertise. If they took off, they’d be irreplaceable, and the city would likely fall to typhus or the plague.
In a previous post, I made the case that one should avoid accepting loyalty requests as these are generally requests for your self-destruction. Someone who asks for loyalty is not saying he’ll provide you with good pay, a comfortable environment, empowerment, and good security. Rather that he wants your service despite little or not pay, discomfort, enslavement, and likely death or disgrace. There are some, few exceptions, but loyal service of this type rarely serves the servant.
Your chance of surviving as a minion is low; your chance as master is lower.
I’d now like to claim that having loyal followers hurts the leader, too, costing him good service, and separating him from health, friends, and family. Most leaders are better off as half of a duopoly, without minions, and only loose control of their workers. The first reason for this is to note that minions don’t do good work relative to free men. They die for no good reason (e.g. you forgot to feed them), or they stop work and wonder what you’d like next, or they get drunk and gripe, or they beat each other up over fervor or small territorial issues. They very rarely innovate or work together, and for any complex project like taking over the world (or the tristate area) needs workers who do. Good work requires pride in achievement, and a loyal slave has none.
Having loyal followers precludes one from having a close relationship with the followers (you can’t appear weak), and also with friends (your minions must have one leader, not two). The leader gets used to being surrounded by sycophants, and begins to doubt those who behave otherwise. The boss will begin to distrust friends and allies, those he needs to stay in power, as these are the very people who could most easily assist others to take leadership from him. Over time, the king, boss, monopolist and dictator share less and less. As a result they end up secret and bitter, with many fears and none he can call close. And what pleasure is there in power, if one can’t share the rewards with friends and family, or share the burden with others.
Only support someone who could rule reasonably honestly and well. Chaos is worse than a dictator. Kanin from the New Yorker.
A great number of kings have killed themselves in one way or another, very often because of overly large ambitions (see cartoon). King Saul, in the Bible is perhaps the first, Hitler is perhaps the most famous, and Colonel Qadhafi of Libya is perhaps the most recent. More often, maximum leaders are murdered, typically by friends and family. Famous examples include Julius Caesar, Augustus Caesar, and Nero; Charles I, Louis XVI, Richard III, and Tzar Alexander. Both the king of rock (Elvis) and the king of pop (Michael Jackson) killed themselves with drugs. Yet others died in needless wars or were exiled. Napoleon was defeated, exiled, returned, re-exiled and then murdered by an associate. It’s not that safe to be the infallible king. Perhaps the wisest move is that of Pope Benedict, who last year left Rome for a life of monk-like solitude. Machiavelli points out, in “The Prince”, that only two Roman Emperors died of natural causes, one because he became emperor at a very old age, and the other was Marcus Aurelius, an advanced ruler who empowered his subjects.
Political bosses and monopolist businessmen, though lower in power, don’t fare much better in life. Boss Tweed died in jail, as did Capone, Boss Pendergast. Even if they avoid jail, the fact that no one likes you takes a toll. No one liked Vanderbilt or Rockefeller, Carnegie, Morgan, or Fisk. While they lived, they could expect nothing more than senate investigations and ugly lampoons in the free press, plus an unfavorable memory after death. William Hearst and Howard Hughes died as virtual hermits, best remembered as the inspiration for “Citizen Kane” and “The Navigator.” Peter Cooper and Steve Jobs are different, industrialists liked in life and in death; and Bill Gates may join them too. Their secret was to empower others.
He’s being eaten alive by his power, money, and respect, as are all those he might love.
Woe to the wife, child or friend of the dictator. The wife and children of a king or king-pin rarely enjoy much of the power. The king-pin doesn’t trust them (often with good reason), and neither do the people. Stalin killed his wife and children as did Nero, Frederick the Great, Herod, Hitler, and quite a few others. It was said that is was preferable to be an animal in the courtyard of these greats than a son at their table. And even if the king or king-pin doesn’t kill his wife child or son, the people often do e.g. Marie Antoinette was killed shortly after Louis XVI and the Tzarina of Russia alongside Alexander III. Similarly, the wife of Hitler, the Mistress of Mussolini, and the wife of Nicolae Ceausescu all died at their husband’s side, sharing the punishment for their husband’s ambition.
The kings of Sparta fared relatively well, as did their wives, despite the militarism of Sparta. Their trick was that Sparta was a du-archy, a country with two kings. Sparta was strong and stable, and their kings (mostly) died at home. In business too, it seems the selfish leader should step back and become almost invisible. It helps him, and helps the people too. If the leader can’t share power this way, he or she should at least give people a simple choice between two things he controls and accepts (chocolate and vanilla; Democrat and Republican). Workers with a choice, even a small one, learn to act somewhat independently, and customers (or citizens) don’t complain as much either if they have some control over their fate. All will come to like the leader more, and the leader will like himself more. People stopped resenting Microsoft when there was a viable alternative, Apple, and Microsoft engineers benefitted by having a competitor to their products. I suspect that Bill Gates realized this would happen when he helped fund Apple’s return to the market. Unfortunately, most monopolists, bosses, and king-pins are too stupid, or too afraid to do this. In the end, it’s the trapped employee or follower who shoots the leader from behind.
The ideal situation is a delicate balance between control and freedom. A great leader will empower those around him and support the opposition. That was the unrealized sense of Mao Tse Tung’s hundred flowers movement (let 100 flowers bloom; left 100 schools of thought contend). It’s political tensegrity. Most leaders can not let go to do this (Mao could not). Still, there IS a sanity clause, Virginia. And a leader should know that there is no benefit to the king who gains the whole world and loses his friends, family and sleep.
Robert Buxbaum. Remember, remember the 5th of November; those oppressed, and those imagining themselves oppressed rise and plot.
Loyalty to a person or institution is generally presented as a good thing — a sign of good character. Disloyalty, by contrast, is considered one of the basest of character traits — the sign of a dastard, a poltroon. But I’d like to make the case that the loyalty that leaders demand (the most common loyalty situation) isn’t real loyalty, but stupidity or worse, toadyship disguised as loyalty. I’d further like to suggest that this attachment hurts the leaders as much as the followers in most situations — well, nearly as much. That is, a sane leader is better off where there is a viable alternative to his product, leadership, or service — a loyal opposition party, as it were.
If you give loyalty above your self interest, don’t expect it in return. If you don’t value yourself, no one else will.
But first, what is Loyalty? If I believe a teacher because he makes sense, or serve a boss because he pays me well, this is not loyalty, but common self-interest. Similarly, if I eat at a restaurant or buy a product regularly, it isn’t loyalty if the quality is particularly good and the prices particularly reasonable. Loyalty is when you eat at a place despite the quality being bad, or the prices high; or follow a leader who pays poorly and provides only danger and hardship. Or who’s crooked and damaging to your sense of self.
If you give a company or person loyal service, they are likely to take it and you for granted; Matt Johnson, 2010.
In general, there are only two reasons why any person would follow a leader like this. One is an attachment to the leader’s vision of the horrible future if you do not. Tales of grisly torture from a distant enemy are good to keep the underlings in their place. An even better reason is attachment to a brilliant future if you do suffer in the present. Tales of the glorious messianic future where you and those you love benefit from the current struggle and sacrifice. It doesn’t have to be a godly messiah; communism presents a messianic vision without a god, but it’s glorious, and the sun always shines. Generally speaking leaders who ask for loyalty ask from both perspectives: a horrible enemy at the gates, and a glorious future if you follow.
There may be a rational basis to fear a grisly enemy, or to suffer and follow in hopes of a glorious future, but if you find you are being asked to follow a single individual or a group that’s controlled by one individual, it’s worthwhile worrying that the leader may not be loyalty to you. Ask yourself: does the leader share real power and information? Does the leader make you feel worthless for the heck of it? If you have a leader like that, it might be worth considering: if the messianic vision ever does materialize (unlikely) the leader may forget to reward your part. History has quite a few examples of this.
Loyalty to country requires one try to improve the leadership. Leadership rarely agrees.
Where real loyalty shows up as a sign of a fine personality, is in marriage where both parties share power, money, and information. Or in loyalty to a country where you (or your child) has a real, rational chance of being leader. If you really trust the significant other (a good marriage) or where there is reason to think one’s home and family will benefit from one’s personal sacrifice, one might rationally give up ones comfort and life following to protect one’s significant others. Even so, the real loyalty is not to the leader, but rather to an organization that one believes will protect one’s children and community. A leads who asks you to kill innocents (Al Qaeda, Stalin, HItler, Jonestown), or who amuses himself by your suffering, e.g. (Stalin) probably has lost the connection between your loyalty and the goal. (Cue the song– we don’t get fooled again).
An honest military leader will have a soldier council or protective group above him to keep him (and others) from over-reaching. There will also be a time limit on the loyalty commitment and an explicit understanding that service does not include suicide, genocide, immolation, or personal embarrassment for the amusement of others. There is an also understanding that the follower’s life and well-being will not be sacrificed in vain, and that no one will be expected to accept suicide rather than capture. On the other hand, a soldier who runs away from all danger and thus endangers his fellows or mission should expect punishment or courts-marshal.
Church groups don’t often look favorably on oversight
Many groups don’t tolerate oversight of this type, and these groups should be viewed with suspicion. Church groups for example, are often led by those would like you to believe that suspicion of them is suspicion of God, it isn’t — it’s suspicion of a person. An honest leader gives the option of going to the police or the union representative, or the newspaper if necessary. Without redress, the worker/soldier/churchman may come to suffer needlessly or come to commit atrocities because of the power of the organization or the personal charisma of the leader. Any organization with a messianic vision of the future is dangerous; all the more so if there is no half-way point, no real sharing of power in the way to get there, and no real oversight for the grand-high pooh-bah (or whatever the grand leader’s title). Let the follower beware.
A Parable: The Donkey and the Brigands, by I don’t know who (I can’t find a source, but know this isn’t my own creation).
There once was a farmer who had a donkey — a talking donkey, as is the way with these parables. At one point, as they were traveling through the woods, they heard the approach of brigands (thieves). “Move quickly,” the farmer said to the donkey, otherwise we’ll be captured.” “Will the brigands treat me any worse than you do?” asked the donkey. “No,” said the farmer, about the same.” “Will they feed me any less than you do, or beat me any more?” “No,” said the farmer, about the same, I’d guess.” Will they load me any heavier, or make me go on longer journeys?” No, said the farmer, about the same, I’d guess.” “When I’m too old to work, will they keep me in my old age, or will they kill me, as you likely will for animal feed and for my bones and skin?” “Probably they’ll do as I would,” said the farmer. “In that case,” said the donkey, “I’ll go at my pace and what will be with the capture will be.” The moral: loyal service has to be a two-way street.
In part 2 of this essay, I’ll explain why even the leader doesn’t benefit from your complete loyalty.
Robert Buxbaum, October 20, 2014. I run my own business, and sometimes think about it, and life.
As the owner of a technology company, REB Research, hydrogen generators and hydrogen purifiers, I spend a fair amount of time trying to sell my stuff, and wondering how other companies connect to potential customers and sell to them. Sales is perhaps the most important area of business success, the one that makes or breaks most businesses — but it was sadly ignored in my extensive college education. Business books are hardly better: they ignore the salesmen (and women); you’re left to imagine sales and profit came of themselves by the insight of the great leader. The great, successful internet companies are applauded for giving away services, and the failed interned companies are barely mentioned. And hardly any book mentions smaller manufacturing businesses, like mine.
So here are some sales thoughts: things I tried, things that worked, and didn’t. I started my company, REB Research, about 20 years ago as a professor at Michigan State University. I figured I knew more about hydrogen purifiers than most of my colleagues, and imagined this knowledge would bring me money (big mistake: I needed customers and profitable sales). My strategy was to publish papers on hydrogen and get some patents as a way to build credibility (worked reasonably well: I write well, do research well, and I’m reasonably inventive). Patents might have been a better strategy if I had not then allowed my patents to be re-written by lawyers. I built the company. while still a professor (a good idea, I think).
When I realized I needed sales, I decided to use trade fairs, conferences, and ads as the big companies did. Most of my budget went for ads in The Thomas Register of American Manufacturing, a fantastically large compendium of who did or sold what (it worked OK, but was since rendered obsolete by the internet). I bought $1500 worth of ads, and got 2 small lines plus a 1/8 page. That’s where I got my sales until the internet cam along. In retrospect, I suspect I should have bought more ads.
William Hamilton cartoon from the new-yorker.
My other big expense was trade fairs. Many big companies sold at trade fairs, events that are widely attended in my field. Sorry to say, I never found customers at these fairs, even when the fairs were dedicated to hydrogen, everyone who’d come by was was selling, and no one was buying, as best I could tell.Somehow, my bigger competitors (also at the fairs) seemed to get interest but I’m not sure if they got sales there. They seem to find sales somewhere, though. Is it me? Am I at the wrong fairs, or are fairs just a scam where no one wins but the organizers? I don’t know. Last month, I spent $2000 for a booth in Ann Arbor, MI, including $350 for inclusion into the promoter’s book and $400 for hand-out literature. As with previous events, few people came by and none showed anything like interest, I got no e-mail addresses and no sales. Some hungry students wandered the stalls for food and freebees, but there was not one person with money in his/her pocket and a relevant project to spend it on. I doubt anyone read the literature they took.
To date, virtually all of my sales have come from the internet. I got on the internet early, and that has helped my placement in Google. I’ve never bought a google ad, but this may change. Instead I was lucky. About 20 years ago, 1994?, I attended a conference at Tufts on membrane reactors, and stayed at a bed-and-breakfast. After the conference let out, the owner of the BnB suggested I visit something that was new at Harvard; a cyber cafe, the second one in the US. They had Macintosh computers and internet explorer a year before the company went public. I was hooked, went home, learned html, and wrote a web-site. I bought my domain name shortly thereafter.
The problem, I don’t know the next big thing. Twitter? Facebook? LinkedIn? I’m on 2 of these 3, and have gotten so sales from social media. I started a blog (you’re reading it), but I still wonder, why are the bigger companies selling more? The main difference I see is they attend a lot more product fairs than I do, have slicker web-sties (not very good ones, I think), and they do print advertising. Perhaps they match their fairs to their products better, or have a broader range of products. People need to see my products somewhere, but where? My latest idea: this week I bought HydrogenPurifier.com. Send me advice, or wish me luck.
Robert E. Buxbaum, flailing entrepreneur, September 10, 2014. Here’s a feedback form, the first time I’m adding one.
Some moths ago, I argued that getting rid of its extra-high minimum wage was perhaps the single best thing that Detroit could do to improve its bankrupt finances and to provide jobs for its youth. I argued that this living wage of $11 or $14/hr, depending on whether healthcare was provided, was too much for the city to pay for it’s minimal skill workers. I also argued that a lower minimum wage would help the city finances, and would allow the unskilled of Detroit to find jobs: it would provide the first rung of a ladder. Well, sort-of good news: Detroit’s living wage has been declared unenforceable by the Michigan Supreme court.
Unenforceable does not mean that wages will lower immediately: anyone working for the city will keep their high salary job, so the finances of the city will remain strained. Also, private companies can not lower anyone’s contracted wages. The only difference is that workers on non-city jobs who agree to be paid $7.50 to $14/hr, can no longer sue to recover additional dollars to meet Detroit’s “living wage.” Bit by bit I expect that more low-skilled workers will be hired, and that their wages will stabilize downward to a free-market value.
The next big things that are needed are reduced crime and increased population who are employed in businesses other than selling drugs or themselves. One way to reduce crime, I think is to have less-stiff minimum penalties for non-violent crimes like drug possession and driving with a suspended license. Currently the penalty for possession runs to 15-20 years. No one who spends that much time in prison will fit back into society. Let’s do them and ourselves a favor by reducing minimum sentences so that the normal sentence is only 1-5 years (ideally with < 1 oz marijuana possession punished by a fine).
Another horror is the penalty for driving with a suspended license. It’s $3000 for a start (a reasonable amount, I think), but then the state adds a $4000 per year penalty for the next 3 years: a total of $15,000. That’s too much for a minimum-wage earner to pay, but the minimum wage earner needs a car to get to work. So he/she can’t work, or he/she drives without a license or insurance. Is this what we want? Lets give a second chance and lower the penalty to produce more working, law-abiding citizens. There is nothing wrong with Detroit that could not be fixed by 200,000 more, law-abiding, employed Detroiters.
R.E. Buxbaum owns REB Research, a maker of hydrogen purifiers and hydrogen generators. We used to be located in Detroit, but are now in Oakland county, 1/2 mile north of the Detroit border.
Boeing’s Dreamliner is currently grounded due to two of their Li-Ion batteries having burst into flames, one in flight, and another on the ground. Two accidents of the same type in a small fleet is no little matter as an airplane fire can be deadly on the ground or at 50,000 feet.
The fires are particularly bad on the Dreamliner because these lithium batteries control virtually everything that goes on aboard the plane. Even without a fire, when they go out so does virtually every control and sensor. So why did they burn and what has Boeing done to take care of it? The simple reason for the fires is that management chose to use Li-Cobalt oxide batteries, the same Li-battery design that every laptop computer maker had already rejected ten years earlier when laptops using them started busting into flames. This is the battery design that caused Dell and HP to recall every computer with it. Boeing decided that they should use a massive version to control everything on their flagship airplane because it has the highest energy density see graphic below. They figured that operational management would insure safety even without the need to install any cooling or sufficient shielding.
All lithium batteries have a negative electrode (anode) that is mostly lithium. The usual chemistry is lithium metal in a graphite matrix. Lithium metal is light and readily gives off electrons; the graphite makes is somewhat less reactive. The positive electrode (cathode) is typically an oxide of some sort, and here there are options. Most current cell-phone and laptop batteries use some version of manganese nickel oxide as the anode. Lithium atoms in the anode give off electrons, become lithium ions and then travel across to the oxide making a mixed ion oxide that absorbs the electron. The process provides about 4 volts of energy differential per electron transferred. With cobalt oxide, the cathode reaction is more or less CoO2 + Li+ + e– —> LiCoO2. Sorry to say this chemistry is very unstable; the oxide itself is unstable, more unstable than MnNi or iron oxide, especially when it is fully charged, and especially when it is warm (40 degrees or warmer) 2CoO2 –> Co2O3 +1/2O2. Boeing’s safety idea was to control the charge rate in a way that overheating was not supposed to occur.
Despite the controls, it didn’t work for the two Boeing batteries that burst into flames. Perhaps it would have helped to add cooling to reduce the temperature — that’s what’s done in lap-tops and plug-in automobiles — but even with cooling the batteries might have self-destructed due to local heating effects. These batteries were massive, and there is plenty of room for one spot to get hotter than the rest; this seems to have happened in both fires, either as a cause or result. Once the cobalt oxide gets hot and oxygen is released a lithium-oxygen fire can spread to the whole battery, even if the majority is held at a low temperature. If local heating were the cause, no amount of external cooling would have helped.
Something that would have helped was a polymer interlayer separator to keep the unstable cobalt oxide from fueling the fire; there was none. Another option is to use a more-stable cathode like iron phosphate or lithium manganese nickel. As shown in the graphic above, these stable oxides do not have the high power density of Li-cobalt oxide. When the unstable cobalt oxide decomposed there was oxygen, lithium, and heat in one space and none of the fire extinguishers on the planes could put out the fires.
The solution that Boeing has proposed and that Washington is reviewing is to leave the batteries unchanged, but to shield them in a massive titanium shield with the vapors formed on burning vented outside the airplane. The claim is that this shield will protect the passengers from the fire, if not from the loss of electricity. This does not appear to be the best solution. Airbus had planned to use the same batteries on their newest planes, but has now gone retro and plans to use Ni-Cad batteries. I don’t think that’s the best solution either. Better options, I think, are nickel metal hydride or the very stable Lithium Iron Phosphate batteries that Segway uses. Better yet would be to use fuel cells, an option that appears to be better than even the best batteries. Fuel cells are what the navy uses on submarines and what NASA uses in space. They are both more energy dense and safer than batteries. As a disclaimer, REB Research makes hydrogen generators and purifiers that are used with fuel-cell power.
More on the chemistry of Boeing’s batteries and their problems can be found on Wikipedia. You can also read an interview with the head of Tesla motors regarding his suggestions and offer of help.
