8.28.08

Rough patch for malls (BizSense)
Out of five Richmond malls, only one has a vacant storefront rate below 7 percent – Short Pump Town Center, at 3.8 percent. The highest empty-store rate belongs to the Shops at Willow Lawn, at 17.4 percent. National stats suggest that malls are in for a rough patch as consumers cut back on driving and discretionary spending. Dillard's is closing it's Chesterfield Towne Center location.

Even drug dealers see costs rising (BizSense)
Drug dealing may be illegal, but it still follows the laws of supply and demand. Because drugs are harder to sell in Richmond, prices have gone up. Or, more specifically, the prices have remained consistent for buyers – but the amount of drugs they get for the price is going down; that is, the size of the “rock” has gotten smaller.

Chesterfield Board of Supervisors OKs Roseland (Times-Dispatch)
The largest development in Chesterfield County history received the blessing of the county's Board of Supervisors last night. The 1,400-acre rezoning application filed in 2006 was approved by a 4-1 vote. Roseland, a 5,540-home project with 1.5 million square feet of commercial and office space, will be built during the next 10-20 years near state Route 288 and Old Hundred Road in northwest Chesterfield.

DEQ clears way for ethanol plant in Hopewell (Times-Dispatch)
The Virginia Department of Environmental Quality today will grant Osage Bio Energy LLC an air permit the company needed to begin construction of an ethanol plant in Hopewell. The Glen Allen-based company plans to build a facility with the capacity to produce up to 68.2 million gallons of ethanol per year. Construction is expected to begin in early October.

Circuit City slips to roughly 20-year low (AP)
Shares of struggling Circuit City Stores Inc. sank to a roughly 20-year low Wednesday. Shares of the electronics retailer fell 5 cents, or 3.2 percent, to $1.52. Earlier in the day, the company's stock traded as low as $1.51. The Richmond, Va.-based retailer hasn't traded at levels that low since the late 1980s.

July occupancy worst in 10 years (Virginia Gazette)
Williamsburg -- According to a new report from Smith Travel Research, hotel occupancy in the greater Williamsburg area was at 69.4% in July, down from 78.8% last year. Year to date hotel occupancy is 45%, lowest since 2000. Lower business this year will mean less marketing dollars, paid for by the $2 per room night tourism tax, for next year.The July numbers are the lowest since 76.1% in 2004.

As people pinch pennies, the Dollar Tree flourishes (Virginian-Pilot)
The retailer, based in Chesapeake, on Wednesday reported a 15 percent boost in earnings in its second quarter, as shoppers frequented the all-for-$1 stores to buy everything from Mother's Day gifts to groceries.

Exec behind male supplement Enzyte gets 25 years for fraud (USA Today)
A business owner convicted of defrauding customers seeking male sexual enhancement products and a variety of herbal supplements was sentenced Wednesday to 25 years in prison.Federal prosecutors accused the company of bilking customers out of more than $400 million with deceptive ads, manipulated credit card transactions and refusal to accept returns or cancel orders.The company's main product, Enzyte, promises sexual enhancement.

Make sleep work for you (Fortune)
Odds are you're not getting the seven to eight hours of nightly shuteye experts agree you need. While some high-achieving entrepreneurs boast of requiring minimal z's, research shows that our sleep needs are surprisingly consistent. If you fail to get at least seven nightly hours, you're probably operating at a cognitive disadvantage.

Thieves turn to online auction sites to move stolen goods (Virginian-Pilot)
Last week, the manager of Dillard's at Greenbrier Mall called the Chesapeake Police Department about an entire rack of Coach handbags that were stolen from the department store. Soon after the theft, an employee noticed some Coach purses that looked familiar on the auction Web site eBay.

New rules to clean up mortgage industry (Hampton Roads' Inside Business)
Free, but need to register: The process for obtaining and keeping a mortgage broker’s and lender’s license in Virginia became more difficult Aug. 10, when new beefed-up rules went into effect, including criminal background checks and more initial and continuing education requirements.

High winter heating bills may burn through wallets (USA Today)
Consumers may be enjoying some relief at the gasoline pump, but another energy shock likely is just around the corner. Winter bills for heating oil, natural gas and electricity are expected to soar to records, putting a renewed crimp on household budgets.

Marketing to Millennials (Business Week)
Teens are historically difficult to reach, but small businesses are finding some success online through Facebook and "preward" gift cards.

When the Boss is an Adrenaline Junkie (Inc.)
Forget drinking scotch and smoking foreign cigars. These Inc. 5000 CEOs savor their success with speed and sweat.

8.25.08

Renderings of new movie theater (BizSense)
Richmond residents have seen the huge banner for Movieland, a new movie theater on North Boulevard from Bow-Tie Partners. Now, they can get their first look at the interior of the 17-screen theater, set to open in early 2009.

Paper-plate plant is ready to serve (Times-Dispatch)
At the Aspen Products Inc. plant on Jefferson Davis Highway, machines are churning out white paper plates by the thousands each day. The company, which opened a factory in Richmond in March, is still ramping up production and expects to move more equipment to the site this year and hire more people.

Wyndham in western Henrico community is a 'small town' -- and growing (Times-Dispatch)
In June, county supervisors approved a 193-home addition to Wyndham on 77.5 acres north of Pouncey Tract Road at the Henrico-Goochland County line. With the addition of three neighborhoods -- Ellington, Ellington Woods and Dominion Park -- it is the largest single expansion to Wyndham since Blacksburg-based developer HHHunt began its construction in 1990.

Marketing Moves to the Blogosphere (Washington Post)
Of the approximately 112.5 million blogs on the Web, almost 5,000 are corporate, according to blog indexer Technorati. Calacanis blogged to start conversations and be a part of a virtual community, but corporate bloggers are in it for other reasons: talking directly to customers or giving a personal touch to a big business.

Rule Will Make It Harder for Women-Owned Businesses to Win Federal Contracts (WSJ)
A Small Business Administration proposed rule, which was first published in the Federal Register last December, would limit the number of federal contracts set aside for women-owned businesses to four industries that are shown to be underrepresented by women.

Young Millionaires (Inc)
With annual sales ranging from $5.4 million to $50 million, these 14 young millionaires have one thing in common: They've turned their passions into profits, and they've done so before the age of 40.

8.22.08

From Work Life: Selling recess to the masses (BizSense)
From afar it looks like gym class. Only the guy rolling the rubber ball towards home plate has a 5 o’clock shadow and beer gut. Blame Sean Smalls. Five years ago, the Mechanicsville native and VMI alum started the River City Sports and Social Club to allow adults in Richmond the chance to revert back to recess games. The local entrepreneur has built a rapidly-growing business by selling whiffleball, dodgeball, kickball and flag football to Richmond’s out-of-college crowd.

The Pipeline: Businesses on the move for 8.22.08 (BizSense)
Rick Whittington Consulting and Top Dead Center together leased 1,200 sf at 1703 West Main Street in Richmond. Butler Animal Health Supply has leased 25,500 sf at 5200 Anthony Road in Sandston, VA. Tabb, Brockenbrough & Ragland has leased 16,000 sf at 4905 Dickens Road in Henrico, U.S.A. Auctions Inc. has leased 40,800 sf at 1102 Dinwiddie Avenue. Click on the link to read more deals.

Fitness-club firm to liquidate (Times-Dispatch)
A holding company that recently closed two Liberty Fitness health clubs in Henrico County has filed for bankruptcy protection. Schneider Holdings LLC, filed for Chapter 7 liquidation Aug. 11. Owner Mark L. Schneider filed for personal bankruptcy July 11. He opened Liberty Fitness clubs as franchise operations on Gaskins Road and Staples Mill Road in December 2006. Revenue was insufficient to stay in business, he said.

Some Fear Commercial Property Loans Will Be Next Stage in Downturn (New York Times)
Loans made for commercial real estate are typically among the safest, because a building can be used as collateral and big property developers generate income from the investment, raising the likelihood they will repay their loans. But cracks began to emerge late last year, when Morgan Stanley reported write-downs of $400 million in commercial mortgage losses.

Social Networking: Common Mistakes Small Businesses Make (WSJ)
mistakes shouldn’t be taken lightly. How your business is perceived in the Web 2.0 world will affect your reputation and your ability to connect with customers, associates and potential customers. (Who wants to hire a company that can’t even manage an engaging, thought-provoking blog?)

Work & Life: Helping Employees With Issues (Smart Money)
Small business owners to say they treat employees like family. So what happens when a member of the family is so befuddled by personal problems that they can barely work?

8.21.08

Owens & Minor looks to Midwest (Times-Dispatch)
Owens & Minor Inc.'s planned acquisition of The Burrows Co. will give the medical-products distributor a stronger foothold in the Midwest, executives said yesterday. Burrows is based in Chicago and has nine distribution centers. The company serves about 950 customers, including urban and rural hospitals.

Founding partner leaves SyCom (Richmond.com)
Paula Gulak, a founding partner of SyCom Technologies, has announced her intention to leave the company this fall to pursue other interests. As the partner in charge of marketing, public relations and business development, Gulak was the public face of SyCom, one of the largested IT service companies based in the Richmond region. She has been extremely active in Richmond’s technology community, having served as president of the Greater Richmond Technology Council as well as the boards of the Center of Innovative Technology, the Virginia Technology Alliance and other organizations.

Suffolk weighs major distribution and warehouse center (Virginian-Pilot)
A Chicago-area developer unveiled plans Wednesday to build a massive warehouse and distribution center in the heart of the city to meet growing port traffic.

Unusual way to look for a job (Roanoke Times)
After several months of posting his resume on job Web sites and searching out leads, Ballin, 24, a July graduate of Radford University, decided to take his career search to the streets. He stands in downtown Roanoke with a white signboard -- "Talented B.A. needs career" -- rested against his waist.

Credit Cards Replace Small Business Loans (Business Week)
Credit-card issuers are aggressively targeting the trillion-dollar market in small business spending as commercial loans become harder to find. indications show that entrepreneurs are increasingly relying on credit cards to finance their businesses, especially early-stage companies. The percentage of firms using credit cards has jumped from 16% in 1993 to 44% today, according to surveys by the National Small Business Association.

8.20.08

Media General July revenue fell 13.8 percent (AP)
Newspaper publisher Media General Inc. on Tuesday said July revenue fell 13.8 percent to $68.3 million because of weak classified advertising. That compares with revenue of $79.2 million in July 2007. Classified revenue fell $5.6 million, or 32.5 percent, on weakness in all markets, especially Tampa, Fla., and Richmond, Va. Media General's publishing division revenue fell 18.9 percent overall and 30.8 percent in Florida.

Circuit City still considering sale (AP)
Circuit City Stores Inc. said Tuesday it's still considering a sale of the company four months after the consumer electronics retailer first announced it was reviewing its options to improve shareholder value.

Appraisal practices criticized (Times-Dispatch)
Appraisers from Virginia, Florida, Texas and Pennsylvania came to Henrico County yesterday to voice concerns about practices they say taint their estimates of property values. A petition echoing their concerns before the Real Estate Appraiser Board, the state regulatory authority, was withdrawn yesterday by the petitioner.

Hotel Roanoke plans big expansion (Roanoke Times)
The Hotel Roanoke & Conference Center, the city's flagship hotel, quietly is making plans to add guest rooms, meeting space and a spa -- all additions that call for a major expansion at this upscale lodging property.

Higher Costs Are Taking a Toll on Business (New York Times)
So-called producer prices — those charged to businesses for wholesale goods — increased by 1.2 percent in July, or roughly twice as fast as most economists had forecast. Core producer prices — which do not include food and energy — rose by 3.5 percent between July of this year and July 2007, the largest annual increase since 1991.

Construction gets hammered again (USA Today)
The construction industry is mired in gloom, and the forecasts for the future don't look much better. New housing starts fell 11% in July from June, to an annualized rate of 965,000 — the lowest level since March 1991, the Commerce Department reported Tuesday. Building permits, an indicator of construction plans, fell to an annualized pace of 937,000, 17.7% below June and 32.4% lower than in July 2007.

Control Your Cash Flow (Entrepreneur)
With a credit crunch and many banks tightening up or eliminating lines of credit, it's important for business owners to maintain a steady cash flow. Here are five ways experts say you can start the process: Diversify your revenue stream, Cut back excess spending and protect your cash flow to meet payments, If you have excess cash, you should be leveraging it ...

8.19.08

Budget fix could bring cuts (Times-Dispatch)
A city administration proposal to settle Richmond's budget dispute could force a 1 percent cut to schools and most city departments. It also could make the City Council choose between a cost-of-living increase for city retirees and further reductions in its own departments, according to written meeting highlights and spreadsheets obtained by the Richmond Times-Dispatch.

Home builders remain gloomy as sentiment index stuck at record low (USA Today)
U.S. home builder sentiment was stuck at a record low in August, as stringent lending and a flood of foreclosed homes dragged on the real estate market, according to data from the National Association of Home Builders released Monday.

Financiers' Pet Peeves -- Common Mistakes That Could Kill Investment Deals (Business Week)
According to a passel of leading venture capitalists, angel investors, and other investing insiders, entrepreneurs often hurt their chances before their pitch has even started. BizSense's take: This is a great, quick read. One pithy quote: "just because you were at a big company doing it doesn’t mean you are a successful entrepreneur."

To Get Customers to Spend More, Drop the Dollar Signs (WSJ)
Researchers at Cornell University found that restaurant owners who drop the dollar sign from their menus got clients to spend more — $5.55 more per meal on average, to be exact. (Or should that be 5.55?) The researchers noted that just seeing the dollar symbol agitated diners so much that they spent less.

8.18.08

Note to self: Jott down this down (BizSense)
Dictation just got – well – cooler than the word dictation. Jott, a free text to voice service is basically a voice-controlled notepad. Talk into your cell phone and it sends the transcript to your email.

New ownership might bank on 20% margins (BizSense)
A savvy entrepreneur might make a bundle by bringing another minor league team to Richmond and running the entertainment business. Profit margins can approach 20%. And according to a great profile in the latest Portfolio Magazine, owning a minor league team is the hot thing for celebs. Might that apply locally??

Shopping center planned for former Wigwam site (Times-Dispatch)
The property on U.S. 1 about 2 miles north of Virginia Center Commons will house a 33,000-square-foot shopping center that will include retail shops and restaurants. Called Wigwam Crossing, the development will be divided into three buildings. It opens next year.

Company makes workstations work (Times-Dispatch)
Smarter Interiors, a full-service business furniture dealership that provides design and installation of new and remanufactured office workstations.

Area must absorb homes of Wachovia Securities staff bound for St. Louis (Times-Dispatch)
Hundreds of extra houses have been put up for sale in an already slow real estate market, adding to inventory levels and pushing prices down. Most are houses that wouldn't have been sold if not for the corporate move.

The Scallop industry found a way to rebound (Daily Progress)
The scallop business is still booming in Virginia. And in 2009, a region a few hours off the coast that has been closed since 2005 will likely reopen as part of rotational scheme designed to protect the fishery.

Where Customers Go to Praise (or Bash) You (Business Week)
If you run a consumer business, chances are pretty good a few of your customers are posting their opinions about it on the dozen or so Web sites that review local businesses across the country.The best way for small companies to track how this world of online critics is driving business is to do it the old-fashioned way: by asking customers how they found the business when they walk in the door.

Is a Marketing Background Useless on the Web? (BNET)
In the world of online “fast media”, having a marketing background only gets in the way of effective advertising. So writes Jeff Stibel, entrepreneur and brain scientist, on Harvard Business Publishing.

8.15.08

Pipeline: Businesses on the move (BizSense)
Starbucks leased 3,170 sf at 5320 Oaklawn Boulevard in Hopewell. The property is located in The Crossings. DelSol Properties, LLC has purchased 6.49 acres at 520 and 600 Dry Bridge Road in Chesterfield. Morris Tile Distributors of Richmond, Inc. has leased 4,000 sf at 3301 Rosedale Avenue in Richmond. Security Services of America, Inc. has leased 2,500 sf at 6010 N. Crestwood Avenue in Richmond. Click on the link to read about more businesses on the move.

Advertisers settle in Shockoe Slip office (Times-Dispatch)
SmithGifford, a Washington-area advertising agency, has opened an office in Shockoe Slip.The firm is sharing space with Spurrier Media Group and Qorvis Communications. The three pitched and work the Virginia Lottery account together.

Volvo to trim production (Roanoke Times)
Sweden-based Volvo Group dropped unwelcome economic news on the New River Valley on Thursday with plans to trim production at its heavy-duty truck plant in Dublin. Executives with the global auto and truck maker said they are moving production of Mack trucks from Dublin to Pennsylvania in a streamlining measure aimed at making the company more profitable.

College kids scrimp this year (USA Today)
Even as parents of kids heading back to grade school say they plan to fork over more than last year, college students and their parents say they'll cut back, reversing an upward trend many retailers had been relying on. The predictions, based on a National Retail Federation survey by BIGresearch, help explain disappointing July sales and early nervousness about the back-to-school season, the second-most-important period to retailers, after the December holiday period. Consumers polled say they plan to spend 7% less this year on back-to-college, or an average of $599 per family. That comes even as spending for grade-school students is expected to rise from about $563 in 2007 to $594.

Home Equity Frenzy Was a Bank Ad Come True (New York Times)
The portion of people who have home equity lines more than 30 days past due stands 55 percent above its average since the American Bankers Association began tracking it around 1990; delinquencies on home equity loans are 45 percent higher. Hundreds of thousands are delinquent, owing banks more than $10 billion on these loans, often on top of their first mortgages. None of this would have been possible without a conscious effort by lenders, who have spent billions of dollars in advertising to change the language of home loans and with it Americans’ attitudes toward debt.

8.14.08

Is the Chamber worth joining (BizSense)
Business professionals – and many small business owners in particular – have mixed reactions to the Greater Richmond Chamber of Commerce’s utility. They say that they often join because it’s customary for businesses to do so, and often continue their membership out of similar persuasions. Some said they see little rewards, and others go so far as to say the Chamber is unhelpful and not worth the membership fee at all – especially in leaner times. Plus, tips on how to get the most out of a membership.

$10 gas card for playing golf (BizSense)
From the Gas-O-Scream blog: Gas-related promotions are spreading like errant balls on a driving range. On August 4, golf course owner Tradition Golf Properties started running a promotion at Stonehouse in New Kent. Play golf, get a $10 gas card to Wawa.

Foreclosures keep rising in VA (Times-Dispatch)
Virginia is among 10 states with the highest foreclosure rates, according to data released yesterday. There were 5,745 foreclosure filings in Virginia in July, according to RealtyTrac Inc., an online seller of foreclosed properties. That works out to one for every 562 households. It is 193 percent higher than the rate a year ago. It also is 9 percent higher than in June, when 5,255 homes received foreclosure notices and the state ranked 11th in the U.S.

Scrap wood as an energy source (Roanoke Times)
With energy prices rising, backers of so-called woody bioenergy are proposing an energy-hungry nation take a fresh look at harvesting tree trimmings, construction scrap and other wood classified as waste that's often sent to landfills.

Slump Squeezes Enrollment at Private Schools (Washington Post)
Private schools across the Washington region have begun to feel the effects of the nation's economic slumber, as some families seek more financial aid to help with staggering tuition bills and others simply opt out of paying for an education.

Retail Sales Feed a Mood of Decline (New York Times)
With the stimulus payments at an end, Americans now have fewer buffers between their pocketbooks and higher energy costs, falling home values and the tight credit market. Companies and investors are bracing for spending to fall even further this year.Retail sales declined 0.1 percent in July, led by a sharp drop in automobile sales, the Commerce Department said. Sales were also weak at restaurants, sporting goods shops and health care stores.

How to Sell Against the Tide (Business Week)
Counterprogramming is an age-old strategy used by radio stations, television networks, and movie studios to attract audiences for whom their competitors' offerings may not be so appealing. It's the reason why the DIY Network (SNI) aired a knitting program and Animal Planet ran its Puppy Bowl opposite the Super Bowl last February. Similar counterprogramming efforts are playing against NBC's (GE) Olympics broadcast from Beijing. Not surprisingly, the counterprogramming principle works in other aspects of business, too.

Stretch Your Dollar With Horizontal Marketing (Entrepreneur)
Partnering with a company that shares your target market saves you time and money. No matter what type of business you have, there are creative ways to increase your clientele through horizontal marketing. From product giveaways to coupons and discounts, you'll be able to stretch your marketing dollars further by forming a friendly alliance with other businesses in your area.

8.13.08

Don't forget to tip your reporters (BizSense)
Salon.com is allowing members of its community to tip writers using a PayPal-like program. In media the product is generally free to the individual user. The business makes money by selling that user’s attention to advertisers. But clearly that model is crashing and burning. We're testing all sorts of new ideas, but we hadn't thought about this one. WIll it work?

The boss is watching you on a trip, too (BizSense)
Last week we told you that the boss spies on you in the office. He knows if you’ve been naughty or nice on business trips, too. For years business travelers have found ways around the corporate policies that govern how much (or how little) they can spend on hotels, flights, rental cars and other travel fare. Employees book trips that fall under company policy and then make changes mid-trip, upgrading to better rooms, better cars and better flights. On average travelers spend about 25% more than what they book according to TRX Inc., a travel-software company. Upgraders beware: As reported in the Wall Street Journal companies are working with your employers to catch you in the act.

John Hoke named T-D business editor (Times-Dispatch)
Hoke, 55, joined The Times-Dispatch in 1982 and has worked as a reporter and editor for the paper. He replaces former Business Editor Pam Feibish, who retired last month.

Boxwood Partners buys coffee seller (Times-Dispatch)
Boxwood Capital Partners LLC said yesterday that it has bought Coffee Wholesale USA Inc., a Texas-based online seller of coffee and coffee equipment, teas, instant mixes and sports drinks.

Military intelligence facility could bring 1,500 jobs to Albemarle (Daily Progress)
The $61 million project will bring hundreds of mostly white-collar intelligence-related jobs to the area. Overall, some 1,500 direct and indirect jobs are expected to be added locally as a result of the project, according to Department of Defense estimates.

Who Owns Your Loan? (Business Week)
As of Mar. 31, 2008, problem business loans—those more than 30 days past due—totaled $22.6 billion. That's up 45% over the same period last year, according to the Federal Deposit Insurance Corp. Banks wanting to sell off these loans are finding ready buyers in hedge funds, private equity firms, and finance companies. That means an increasing number of entrepreneurs are getting a nasty surprise: Their bank loan has been sold to a third party they've never heard of.

Help Wanted: Senior-Level Job, Junior Title, Pay (WSJ)
Some job hunters have been encountering a new kind of downsizing: companies that aren't eliminating positions entirely, but are combining a mid-level position with a more junior one -- then advertising it as a junior slot and offering a lower salary.

8.12.08

Blackfinn restaurant at Waterside in Norfolk closed (Inside Business)
Blackfinn Restaurant and Saloon at Norfolk’s Waterside Marketplace closed over the weekend with no plans to reopen.

Bankrupt developers at lake strike deal with bank (Roanoke Times)
Developers who defaulted on a $20 million loan used to build a luxury condominium tower at Smith Mountain Lake have struck a deal to trade the property with their bank for a release from debt, a lawyer in the case said.

Sesame Street finds a new home (Daily Press)
Busch Gardens Europe says it will open a new theme area for children in spring 2009.

The Business of Politics (WSJ)
Entrepreneurs might be better off not making their political preferences known to customers. But some want to anyway. BizSense has begun an informal study to see what Richmond's business owners and professionals think about sharing political views.

Beyond Flextime (Inc.)
Companies have been touting flexible work arrangements for years. At most businesses, however, freedom has a limit: It's allowed only a couple of days a week or only for certain employees. Enter a system known as a results-only work environment, or ROWE. Cali Ressler and Jody Thompson, the two women who developed ROWE, say the system doesn't work unless it works for everyone -- even the assistants, secretaries, and receptionists who have traditionally been at the mercy of a boss.

8.11.08

Powhatan company crafts box to hold basketball stars' mementos (Times-Dispatch)
The keepsake boxes bearing the basketball team's jerseys and sneakers -- and soon, hopefully medals -- were made by Moslow Wood Products, or Powhatan. The sneakers are stored in the bottom of the suede-lined maple box, while the jersey is in a compartment above.Moslow Wood Products has a 75,000-square-foot manufacturing facility in Powhatan that employs 50 people.

Navy vet opens bookstore (Times-Dispatch)
Kristy Bell opened Minerva Books in Petersburg. She left the Navy about five years before retirement because she was burned out. Bell stocks the store with about 10,000 new and used books, and 1,500 titles in the children's section. A café near the front of the store, with couches and chairs, provides a meeting spot for book and writing clubs.

Happy landing for Roanoke's Butler Parachute Systems (Roanoke Times)
Perseverance, both by Butler and his employees, has saved Butler Parachute Systems of Roanoke from what could have been a lethal fall.

Golf Course Communities' Double Bogey (Washington Post)
Projects have been put on hold or canceled because potential buyers are no longer willing to pay extra, can't qualify for a mortgage or can't sell their homes to trade up. Courses that were too far along to stop are struggling to find customers. BizSense's take: The same trend happened in Central Virginia, in particular in New Kent County.

Office Building Deals Drop Off (Washington Post)
In the District, $1.4 billion worth of office space traded hands in the first six months of the year, a 61 percent drop from the $3.6 billion sold by mid-2007.

Heating oil prices turn firewood into hot commodity (USA Today)
The cost of seasoned firewood in Maine has jumped about 50% from a year ago, but it remains a relative bargain compared with heating oil, which is nearly $2 a gallon more than it was last year. Many customers are doubling their usual orders, and some firewood dealers are turning away customers. "We've really never seen anything like this before," said Lloyd Irland, who teaches forestry economics at Yale University.

How to Create a Successful Web Site For Nothing (WSJ)
Have you got eight hours and $10? Then you can build a Web site for your business. Thanks to competition among Web-hosting providers, and the falling costs of Web storage, it's never been easier to get a Web site up and running -- from buying the domain name to building a site to setting up a payment system to tracking traffic.

Starting Up: Teaming Up With Other Businesses (Smart Money)
Working strategically with other businesses makes good sense. You'll be able to promote your company's products or services to a wider, targeted audience for less than you might pay if you were going it alone. Such a proposition may be particularly rewarding for cash-strapped start-up entrepreneurs.

8.08.08

The Boss Sees and Hears All (BizSense)
Corporate surveillance technology is getting stealthier, more advanced and more widespread. Sixty-six percent of employers monitor their workers' computers on a daily basis. The reason: more employees are using office computers to shop, pay bills and surf the internet; some are viewing porn (City of Richmond employees, for example) or watching videos online.

Pipeline: Commercial Real Estate Roundup for 8.08.08 (BizSense)
McKenney Land Co. has purchased a 14,660 sf former Oldsmobile shop at at 6700 Janway Road in Henrico for $1.2 million. The Salvation Army has purchased 15,600 sf at 11000 Midlothian Turnpike in Chesterfield. Jacobs Engineering Group, Inc. has leased 3,992 sf at 2108 W. Laburnum Avenue in Richmond. Schwarzschild Jewelers has leased 3,292 sf at 3144 West Cary Street in Richmond. Click on the link for more deals.

Scooting up the sales (BizSense)
From the Gas-O-Scream Blog: Scoot Richmond, a scooter/moped dealer on Richmond’s Southside, sold 64 scooters in June. That’s 28% higher than May, and off the charts compared to the previous year. There are also some rumors circulating that developers on the Southside are considering adding mopeds as an apartment amenity, and allowing any resident to borrow them.

SATIRE: Out-of-towner passes by Sine 12 times in search of Shinay (Tobacco Avenue)
Confused by the pronunciation of Irish restaurant Sine, out-of-towner Hayden Goode passed by the downtown Richmond hangout spot a dozen times in search of a non-existent bar called Shinay, sources said.

$532 million loss for Media General Inc. (Times-Dispatch)
Including the charges, the company reported a second-quarter loss of $532 million, or $24.11 per share, compared with a profit of $5.1 million, or 22 cents per share, in the same period of 2007.

Signs Point to a Slower Sales Season for Retailers (New York Times)
Sales figures released Thursday revealed a country that is rapidly ratcheting back its spending habits even as it piles up credit card debt and abandons midtier shopping mall mainstays that were booming just a year ago.

How to Pull Off 'CEO Casual'(WSJ)
business casual is notoriously tricky, and for chief executives it has additional risks. Suits and ties convey a sense of command by hiding the body's flaws and augmenting its strengths, as well as providing psychic distance that a CEO can use to advantage. Shedding these signs of authority risks the vulnerability of exposing physical characteristics, such as a man's chest hair. A dressed-down chief executive can be shown up by a formally dressed underling. So how can a CEO signal command without pinstripes and worsted wools? BizSense's take: Is this any different in Richmond?

8.07.08

There’s hope for Hull Street yet (BizSense)
The latest installment of "Better Know a District": What was once the main street of Chesterfield County, Hull Street is now the most run-down commercial strip in Richmond. More than half of the buildings between the James River and Midlothian Turnpike are either vacant, for rent, under construction, or owned by non-operating businesses. But high gas prices, along with City programs, could accelerate a rejuvenation.

Ellwood Thompson's gives a quarter to shoppers who don't drive cars (BizSense)
Ellwood Thompson’s, the Carytown market known for organics, is giving 25 cents to anyone who walks, bikes, scoots, or rides the bus to the store. The amount is deducted from the total cost of groceries purchased.

New Xenith Bank to serve mid-market businesses, executives (Times-Dispatch)
Virginia banking veterans from Wachovia Corp., SunTrust Banks Inc. and the defunct Signet Banking Corp. are launching Xenith Bank. The bank, in organization, will be based in Richmond. It is expected to open late this year or in the first quarter of 2009.

Henrico-based eServices sold to Fla. firm (Times-Dispatch)
Energy-management company eServices Inc. has been bought by AP Capital Partners, a private-equity firm in Orlando, Fla. Terms of the deal were not disclosed. Formed in March 2005 by three veterans of Dominion Resources Inc.'s gas-trading business, eServices has grown to nine employees and may soon open a Pittsburgh office.

Chesapeake stock flirting with delisting (Times-Dispatch)
Richmond-based Chesapeake Corp. said yesterday it is developing a plan to prevent its stock from being delisted from the New York Stock Exchange. The specialty packaging company said it was notified this week that it was not in compliance with the stock exchange's continued listing standards because during a 30 trading-day period, its total market capitalization -- the number of shares multiplied by the market price per share -- was less than $75 million, and its most recently reported stockholders' equity was less than $75 million.

Number of new-auto dealers falling across Virginia, nation (Roanoke Times)
The loss of several area automobile dealerships -- including the recent closure announcement by Vinton Motor Co. -- is in keeping with a statewide and national trend. Virginia is home to about 2 percent fewer franchised new-car dealerships than a year ago, according to the Virginia Automobile Dealers Association.

Out of a restaurant's bankruptcy, came an unexpected gift (Virginian-Pilot)
he S&A Restaurant group, the company that owns Steak & Ale and Bennigan's, filed for Chapter 7 bankruptcy last week - one day after Steak & Ale on Coliseum Drive received a truckload of food. The events led to a decision to donate its usable food to Foodbank of the Virginia Peninsula. On Tuesday morning, Foodbank employees loaded an estimated 50,000 pounds of food onto a refrigerated truck.

Crozet firm to roll out Segways (Cville Daily Progress)
Don Rich figures his decision to open a local Segway dealership puts him ahead of the curve of a movement toward communities in which residents don’t depend on cars to get around. The Crozet resident said efforts to encourage the kinds of developments in Charlottesville and Albemarle County designed so people can live, shop and work in the same communities helped convince him that consumers here will buy enough of the two-wheel electric vehicles to support a standalone Segway business.

Realtors live close to the edge (USA Today)
Tens of thousands of Realtors have been forced to quit the industry in the past couple of years. Some are enduring their own agonizing foreclosures. Agents who had staked their fortunes on galloping home sales now struggle to afford health care, utilities and other basics.

Is Low-Cost Health Insurance Worth It? (Business Week)
Premiums look low, but you give up a lot of expensive medical coverage—that is, you transfer the risk from the insurer to yourself

Business Credit Cards Simplify Record Keeping (Entrepreneur)
When used effectively, however, a business credit card can simplify your financial record keeping--and maybe even earn you a little something "extra" for your diligence, too.

8.06.08

Ode to a Mutual Fund Mentor (BizSense)
George Scott III, with Closed-End Fund Advisors, writes that the investing guru John Marks Templeton was a wonderful mentor who both inspired and illuminated his career. Templeton was a billionaire investor who died in July at age 95. He was perhaps best known as a mutual fund pioneer who dedicated much of his fortune to religion and science.

Setting the business news agenda (BizSense)
If imitation is the best form of flattery, then Richmond’s media establishment has a growing crush on us. On July 22 we ran a story entitled, “Handmade Soaps to Clean Up Main Street” On July 26, The Richmond Times-Dispatch ran "Couple Cleans Up With Soap Hobby Run Amok". Both stories focused on a couple who moved from Arizona to Richmond to run their handmade soap store. It wasn't the first time. and Richmond.com and local TV stations have all gotten in on our stories.

Retailers get advice for tough times (Times-Dispatch)
Yesterday at an all-day Retail Marketing Expo, business owners listened to marketing experts and a business consultant discuss ways to connect.For the most part, retailers were urged not to overreact during tough times by cutting advertising budgets. Consultant George Whalin told retailers that, while it was common to look at advertising and marketing as an expense, business owners need to look at it as an investment.

Gas Prices Apply Brakes To Suburban Migration (Washington Post)
Cheap oil, which helped push the American Dream away from the city center, isn't so cheap anymore. As more and more families reconsider their dreams, land-use experts are beginning to ask whether $4-a-gallon gas is enough to change the way Americans have thought for half a century about where they live. BizSense's take: Several local devlepers have said these same factors could boost demand for homes, shops and offices within Richmond City limits. Perhaps retailers and restaurants should try some new approaches to help consumers reduce their gas bill -- and thus increase the amount they have to spend. Maybe some incentive packages or discounts if residents drive mopeds or walk to their stores.

Small banks go after big competitors (Hampton Roads Inside Business)
The woes of the American economy have hit big banks particularly hard and at least two local community banks are using newspaper ads to both reassure customers, and while they would never admit it in so many words, they are using the ads to take a few shots at the big boys while they are down.

Google’s New Tool Is Meant for Marketers (NY Times)
GOOGLE is giving everyone a chance to peek deeper into its database of search requests and discover the things that preoccupy individuals and, in aggregate, entire cities, states or nations, at any one time.

After a Franchisor Files for Bankruptcy (Business Week)
Bennigan's franchisees are still operating, but the uncertainties they face are heightened by cost pressures and the drop in diners' disposable income.

8.05.08

UVA grads make more than VT grads; both earn more than VCU grads (BizSense)
Where you go to college can have a huge effect on how much you make over your career, even more than your major. The differences get magnified later in life. A yearlong study conducted by the compensation company PayScale Inc. found that – surprise, surprise – Ivy League grads make more than non-Ivy League grads, even within the same major. Six Virginia schools took part in the study.

A sign of the tee times: Henrico Open is no more
Organizers of the Henrico Open, a professional golf tournament for players one cut below the PGA Tour, spent a year of looking for sponsors and turned up zilch.The absence of a tourney isn’t great news for the area’s hotel industry, which is suffering a nation-wide slowdown. The Nationwide Tour does not typically draw a huge fan base from out-of-town, but players, caddies and entourages always needed a place to stay. The golf industry, meanwhile, is suffering through a national slow-down. After decades of growth, the number of rounds has been stagnant for the last several years. And the Richmond-Williamsburg area is considered to have been over-developed with new courses. The number of players who sign up for local tournaments -- charity and corporate -- is on the decline.

Internships.com thinks there’s more room in the job-posting industry (BizSense)
C. Mason Gates still talks like the bright-eyed kid that graduated from Radford University with a degree in marketing in 1989. Today, Gates is the president and founder of Internships.com, a Richmond-based startup that matches college students with internships. The website is a collection of resources, contacts and ideas for students, employers and educators. This is not his first startup.

Richmond woman tries to hire hit-man (Daily Press)
The executive director of a Richmond nonprofit that advocates for the rights of parents involved in custody battles is being held without bail for allegedly hiring an undercover cop to kill her ex-boyfriend and his wife. Caren T. Brown, the executive director of Children Without a Voice, was arrested by state police Friday in James City County after she allegedly gave an undercover state police officer a $2,000 down payment to kill the couple, according to a criminal complaint on file with the Williamsburg-James City County General District Court.

Circuit City lifts temporary ban on 'MAD' magazine's spoof of retailer (AP)
ignoring Alfred E. Neuman's mantra of "What, me worry?," Circuit City Stores (CC) temporarily banished the irreverent MAD Magazine from its store's shelves for poking fun at the consumer electronics retailer. The company said Monday "some overly sensitive souls at our corporate headquarters" had the August issue removed from the 40 Circuit City stores that sell magazines after seeing the four-page spoof of "Sucker City."

Shoppers saved about $4 million over tax-free weekend (Times-Dispatch)
The state waived the 5 percent sales tax on back-to-school supplies costing up to $25 each and on clothing and shoes selling for up to $100 apiece. At Children's Wear Digest, sales were up more than 12 percent from last year's tax holiday weekend, said Mary Martha Pender, district manager for company's three Richmond-area stores. The locally based company, also known as CWD, operates an Internet, mail-order and retail business.

Lost account leads to loss of jobs at advertising firm (Virginian-Pilot)
The Virginia Beach advertising and public relations firm Seventh Point said Monday that it closed three of its four field offices and let go nine employees after losing an advertising account with franchisees of the Popeyes Chicken and Biscuits chain.

Expansion capital outlook remains positive (Entrepreneur)
ven the outlook on venture capital is mixed, according to the April report: VC investing dipped slightly in the first quarter of this year to $7.1 billion--down 5 percent compared with the first quarter of 2007. Still, the quarter was the fifth largest for VC investments since 2001

Wait to Work for Family (WSJ)
Young adults lucky enough to have a family business waiting for them may feel tempted -- or pressured -- to join it right out of college. But that's often not the best move, family-business experts say.

8.04.08

Planting the seeds for a business (Times-Dispatch)
Wayne Castleberry, 60, is tending a successful horticulture business and plans to put Richmond on the map in the floral industry. His inventions include a biodegradable growing medium, a hydrating system for cut flowers as well as holders and boxes to ship and deliver flowers.

Housing Lenders Fear Bigger Wave of Loan Defaults (NY Times)
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.

Weak economy also hits wealthy (USA Today)
It may have taken longer and it may not be as acute, but there are early hints that the economic slump is crimping the lifestyles of the wealthy. They are investing more conservatively, spending less on luxury goods and are being more thrifty with their credit cards. Many are asking their personal shoppers and private-jet travel providers to seek the best deals rather than over-the-top extravagances.

America's Smartest Banker (Slate)
The nation's financial industry is cratering, so how come Hudson City Bank is thriving?

A Small Business Loan from a Hedge Fund? (Business Week)
It's hard to get traditional loans these days. But as banks tighten their purse strings, hedge funds are offering asset-based loans to small companies

Get Your Money's Worth (Entrepreneur)
We show you 10 ways to save during startup--and which investments are worth the splurge.

8.01.08

Just don't call it a golf cart (BizSense)
Virginia Golf Cars, a Harrisonburg-based seller of golf carts with a large showroom in Richmond’s Southside, has started selling a street-legal vehicle. Golf carts are typically not allowed on public roads. Their normal habitat is more often gated communities, RV parks and for business use, apartment complexes and college campuses.

Virginia Best State for Business (BizSense)
For the third straight year, Virginia has been named the Best State for Business by Forbes.
Virginia ranked 7th in labor supply, 6th in quality of life, and 6th in economic climate. It was also ranked 1st for regulatory environment, thanks in part to the second-best incentive programs in the country.

Pipeline: businesses on the move 8.01.08 (BizSense)
Sunrise Construction has leased 317,400 sf at 5700 Audubon Drive in Henrico County. Seibert Properties has purchased approximately 5,300 sf at 1030 Old Bon Air Road in Chesterfield. Superior Equipment Sales has leased 30,018 sf at 3301 Rosedale Avenue in Richmond. Institutional Life Services has leased 8,132 sf in Westerre III at 3900 Westerre Parkway in Richmond. Anytime Fitness has leased 4,200 sf in the Bermuda Shopping Center at 12308 Bermuda Crossroads Lane in Chester. Click on the link to see more deals, and to see the entire list of tenants at White Oak Village.

Glutted market, wary buyers hit region's homebuilders hard (Virginian-Pilot)
The effects of slack demand and tighter credit have shown up in the subdued pace of building. During the January-through-March quarter, builders took out $190 million of single-family building permits in Hampton Roads - a 27 percent decline from the first quarter of 2007

More Arrows Seen Pointing to a Recession (NY Times)
Economists construed the tepid growth in the second quarter, combined with a surge in claims for unemployment benefits, as a clear indication that the economy remains mired in the weeds of a downturn. Many said the data increased the likelihood that a recession began late last year.

The Business of Politics (Entrepreneur)
A surge of young voters is fueling a niche market that targets their growing passion.

Get users (and Google) to trust your Web site (Fortune Small Business)
If you aren't seeing the traffic numbers you desire, start by examining how credible your site looks.

7.31.08

Sell some peanuts and cracker jacks (BizSense)
At a typical Braves game, Aramark and Flamingo Joe’s sell 650 snow cones ($3 a pop), 500 cotton candy sticks ($3.50), and 200 funnel cakes ($4). I’m tagging along with a vendor at a Braves game to master the art of selling.

The van is cool again; or at least cheaper than commuting solo (BizSense)
The number of vanpools cruising from Richmond to Hampton Roads or D.C. could jump 20% this year alone. And for in-town commuters, sharing a van could cut the cost of getting to work by almost 70% in the most extreme cases.

Richmond doc wants to create a database for surgeries (BizSense)
Dr. William Jiranek has for years tried unsuccessfully to set up a state-wide database that tracks patients who receive joint replacements. Jiranek, who works in the Department of Orthopedic Surgery at the VCU Medical Center, said that so far only six of an estimated 200 doctors doing joint replacement in Virginia are participating.

June unemployment rate climbs in Virginia (Times-Dispatch)
Between May and June, the state unemployment rate rose to 4.2 percent from 3.8 percent, data released yesterday by the Virginia Employment Commission showed. During the same period a year ago, the jobless rate was 3.1 percent.

Professional golf tour won't stop in Richmond anymore (Times-Dispatch)
The absence of a presenting sponsor that could help foot the bill is the culprit for the demise of the Nationwide Tour's Henrico County Open. The tour first stopped in Richmond in 1993. Through the auspices of the Economic Development Authority, Henrico County took on the role of title sponsor in 2003. David Maraghy, the tournament's executive director, was shopping for a title sponsor then.

Businesses Find Cheap Capital in SBA Mortgages (Smart Money)
s banks tighten their lending practices and commercial office space becomes cheaper in some markets, a growing number of business owners are turning to 504 loans. These loans can be used to purchase business real estate or fixed assets (such as heavy equipment or machinery). And, because 504s are backed by the government, they're typically easier and cheaper to secure than conventional commercial mortgages.

Survey: Most new jobs come from small businesses (Fortune Small Business)
Small businesses drove much of the employment growth in July, according to a report released Wednesday by payroll manager Automatic Data Processing (ADP, Fortune 500). Firms with fewer than 50 workers added 50,000 new non-farm jobs to the private sector this month, which offset the 41,000 jobs dropped at medium and large companies.

7.30.08

The Steak and Ale restaurant closes...other fast casuals struggle (BizSense)
The Steak and Ale restaurant on West Broad Street near Glenside Drive, which closed on July 7, will not reopen. On Monday the company filed for Chapter 7 bankruptcy protection. A note taped to the door tells customers to “Visit our Hampton location.”

Fashionably bald at S&K (Times-Dispatch)
S&K's chief executive officer and six other managers submitted to a ceremonial head shaving yesterday, as the staff at the company's Henrico County headquarters watched and cheered. he mass fleecing fulfilled the managers' pledge to sacrifice their hair if the company met sales targets last weekend. Its stores exceeded the goal by 65 percent, selling more than $3.4 million of goods.

Restaurant Chains Close as Diners Reduce Spending (New York Times)
Several national restaurant chains were shuttered on Tuesday, possibly offering an early taste of what’s in store this year for businesses that depend on free-spending consumers whose budgets are now being squeezed.

Insight Exchange: Making Your Company Newsworthy (WSJ)
When evaluating who to cover, our reporting team examines the same criteria. We also ask: What lessons can this entrepreneur teach that other business owners might learn from? There’s limited space and time, so some of it’s just luck and timing. But profiles that resonate most with our readers are usually candid with numbers, failures (not just successes) and with the good, bad and ugly about their operations. One phrase I don’t like to hear: “We don’t disclose that because we’re a private company.”

HR software saves time and cash (Fortune)
Employee-evaluation software can help you reward stars and lose deadbeats.

What to wear to work (BNET)
Formal dress codes are history, but workplace fashion still matters more than you think. Here’s how to find the right fit, no matter what you do or where you work.

Are Revolving Doors More Energy Efficient? (Slate)
How big a difference can using a revolving door make? In 2006, a team of graduate students at MIT conducted an analysis of door use in one building on campus, E25, where they found just 23 percent of visitors used the revolving doors. According to their calculations, the swinging door allowed as much as eight times more air to pass through the building than the revolving door.

7.29.08

Business loans harder to get (BizSense)
Bankers are taking longer to issue business loans and asking for more collateral when they issue them, according to bankers around Richmond. Even companies with solid credit and long-established relationships are having more trouble getting financing, which is an essential ingredient for growth. The number of business loan requests, meanwhile, is also falling.

CFO and CAO leave S&K (BizSense)
Long-time S&K Menswear CFO Bob Knowles has left the company. Controller and Senior Vice President & Chief Accounting Officer Janet L. Jorgensen has also left the company. S&K announced last week that it was cutting 50 local jobs.

45,000 sign up for Ukrop’s gas promotion (BizSense)
Richmonders have knocked $256,000 off their gas bill by swiping their Ukrop’s member cards at Uppy’s gas stations. Las month Ukrops and Uppy’s launched a joint promotion last month called fuelperks!, where customers can take 10 cents off each gallon of gas for every $50 they spend at the grocery store. A Ukrop’s spokeswoman said that around 44,000 people have participated. The average savings per visit has been $5.84.

Downturn hits Jamestown (Times-Dispatch)
Last year's investment in the area fails to drive tourism as gas prices, economy reroute visitors.

Nygaard reflects on jewelry chain closure (Inside Business)
In 2006 David Nygaard Fine Jewelers was named the Small Business Success Story of the Year by Virginia Business Magazine. A year before that Inside Business named his company one of the Best Places to Work in Hampton Roads. Today, less than two years later, the jewelry retailer is out of business, facing bankruptcy and a line of angry creditors, Nygaard closed all seven of the company’s stores earlier this month after losing his line of credit with Wachovia. The bank seized the company’s inventory and may foreclose on Nygaard’s home, which he shares with his wife and six young children. Nygaard explained in a recent interview how the business went from a success story to a hard lesson in such a short time.

Pre-arranged telecom deals getting bundles of complaints (Virginian-Pilot)
More and more developers of apartment, condominium and other residential projects have embraced pre-arranged telecom deals, often receiving financial compensation for granting a telecom company access to sell services. Residents and regulators, though, have begun to raise questions about such "bulk-billing arrangements" and their potential detriment to competition and consumer choice.

Shortening the workweek to 4 days (Roanoke Times)
One Roanoke company is allowing its employees to work four longer days a week to save fuel costs.

U.S. drivers log 9.6B fewer miles in May (USA Today)
Americans drove 9.6 billion fewer miles in May than in May 2007, a 3.7% decline that is the largest drop in miles traveled for any May, the federal government reported Monday.

Small-biz owners down on economy, working longer hours (Fortune)
Forty-four percent of small-business owners surveyed said they're spending more time working for their business than they did six months ago, with 41% attributing the extra workload to a slowing economy. But 10% of respondents said they're spending less time on business, because the downturn leaves them with less work to do.

7.28.08

Richmond foreclosures jump 805 percent (Times-Dispatch)
The Richmond area had a total of 1,104 foreclosure filings, up from about 140 from April through June last year. By comparison, one in every 171 U.S. households received a foreclosure notice. Nationwide, foreclosures rose 121 percent in the second quarter from a year ago.

S&K cuts 50 HQ jobs (Times-Dispatch)
Menswear retailer S&K Famous Brands said yesterday that it has laid off 50 employees from its Henrico County corporate headquarters and hired a consulting firm to help the company remake its image and turn a profit.

SUV sales out of gas (Times-Dispatch)
Deni Dennis, general manager of Richmond Ford on Broad Street, said customers now tend to be those who need to buy a car, not customers looking for a new model. Many want to trade in SUVs and trucks to get cars that are smaller and more economical.

Worried Banks Sharply Reduce Business Loans (NY Times)
Two vital forms of credit used by companies — commercial and industrial loans from banks, and short-term “commercial paper” not backed by collateral — collectively dropped almost 3 percent over the last year, to $3.27 trillion from $3.36 trillion, according to Federal Reserve data. That is the largest annual decline since the credit tightening that began with the last recession, in 2001. Look for a story about the local banking climate tomorrow.

Buy, Sell, or Hold? (Inc.)
commercial property prices are softening, too, which is good news for entrepreneurs looking to buy real estate or sign a new lease.

7.25.08

How about a little something for the effort? (BizSense)
Workers who rely on tips are starting to see the tip jar as half empty. In a BizSense survey, 70% of workers in a tip-dependent industries said that their compensation has gotten noticeably worse this summer compared to previous months.

Commercial Real Estate Roundup for 7.25.08 (BizSense)
RPM Graphics leased 6,700 sf on Air Park Road in Ashland. Audubon Investments has purchased 9.4 acres on Oakley’s Lane at Audubon Drive in Henrico, and French Acquisition Company, LLC purchased 42,000 sf at 2910 West Clay Street in Richmond. Click on the link to see more deals.

SATIRE: Audit: City employees need to browse for porn on better sites (Tobacco Avenue)
A new city audit out today says government employees who browsed online pornography during work hours on sites such as PornoTube.com and others could have wasted less time by simply choosing better free adult-entertainment sites or buying a subscription to one.

Pay-Day lending lobbyists' spending sets record (Times-Dispatch)
The payday-lending effort -- lenders spent an estimated $3.8 million on lobbying the legislature -- helped RT-D FIRST push lobbyists' spending for the past year to more than $20 million.

Richmond housing sector hurting; some of state may be better (Times-Dispatch)
Sales of new and previously owned homes in the Richmond area in the second quarter dropped 23 percent from the same period a year ago. The average price here fell 2 percent to $283,546 from the same period a year ago,

Bounce Back (Entrepreneur)
We asked these entrepreneurs who made it through two recessions--and not only survived, but thrived--for their tips on coping with slow times.

Make Social Networking Work for Your Business (WSJ)
Small businesses are banding together to create online communities to raise their profile and share information. Troy BumperOne example is Barista Exchange, a network uniting the specialty-coffee industry with 3,000 members. (What is the best coffee-bar music, by the way?) Here Barista Exchange members discuss how the site has affected their business.

7.24.08

Shockoe Bottom-ing out? (BizSense)
In 2004 Richmond’s historic Shockoe Bottom was devastated by Hurricane Gaston. Four years later, the area is showing a few signs of recovery, but the vacancy rate hovers above 20%. Turnover in restaurants and bars is high.

Booted from Craigslist: Oldest profession needs to find new ways to market (BizSense)
Richmond’s call girls and their customers are no longer using Craigslist as a virtual bulletin board to arrange business.The site used to get dozens of postings a day from local women and a few men. In typical internet fashion, patrons would also warn other customers about the quality of the merchandise. Now there is nary a post per day to be found.

Geeks on Call partners with Sam's Club sites (Virginian-Pilot)
Geeks On Call America Inc., the on-site technology support provider, said Wednesday it has entered a pilot partnership with Sam's Club to offer discounted service to the retailer's members in Maryland and Virginia.

Selling the Family Jewels (Slate)
Desperate American banks are selling everything that isn't nailed down (except the private jets).

Tapping the Creativity of Downtime (WSJ)
For employees, the cross-pollination between their work and their personal lives can be an opportunity to turn a hobby into a line on their resume -- and an ego boost.

Top 5 Innovations for Business Owners (Entrepreneur)
Since we haven't found a way to invent 25 hours in a day, these smart gadgets are the next best thing.

7.23.08

Most promising startups in Richmond? (BizSense)
The fourth annual Greater Companies to Watch series is now accepting nominations on its freshly-launched website. The winners will be announced October 29 at a celebration at Toad’s Place and will then be featured in a widely read brochure.

Gas station asks customers to pay with cash (BizSense)
A gas station in Williamsburg is trying to get consumers to stop paying with plastic by offering them a cheaper price if they use cash.

Victims tell how they got ripped off by mechanic (Daily Press)
Charles E. Perry Jr. charged Margaret Nettles nearly $2,500 for repairs to her vehicle that he never made. She drove in with a 2001 Ford Explorer with a slipping transmission, and drove off with a slipping transmission. And exhaust problems. And a broken front-wheel drive. So when Perry was sentenced this month to 10 years in jail, Nettles couldn't have been happier. Justice was served.After an FBI investigation, Perry was charged in March with ripping off customers and suppliers and for stealing and misusing identity information belonging to customers of his "tune and lube" auto repair businesses, including the All Tune and Lube that Nettles visited on West Mercury Boulevard.

Amerigroup will settle fraud suit for $225 million (Virginia-Pilot)
As part of an agreement struck with federal and state agencies, the Virginia Beach-based health insurer said it also will pay $9 million in legal fees, but it will not admit any wrongdoing.The suit's plaintiffs - a former Amerigroup employee, the state of Illinois and the federal government - said in federal court in Chicago that Amerigroup and its Chicago-area health care plan defrauded state and federal agencies by discouraging pregnant women and individuals with special needs from enrolling.

What Business Owners Worry Most About Now (WSJ)
The National Federation of Independent Business, a small-business advocacy group, recently released a report on today’s most critical issues among businesses, based on survey results from 3,530 members. Respondents rated 75 business problems on a 1 to 7 scale, with 1 being “critical problem” and 7 being “not a problem.”

The secrets of HSN's top marketers (Inc)
Yes, infomercials can be cheesy, seemingly the lowest common denominator of salesmanship. But they are also a bona fide American art form. When you study the masters, there's much you can learn.

7.22.08

Tell them you Mean Business! (BizSense)
You’ve seen the commercial. Actor Robert Vaughn comes on the screen, urging consumers to tell those insurance adjusters that “You mean business,” and to call the law offices of Marks & Harrison…“ The ubiquitous commercial is one of several generic ads used by attorneys all over the nation. Marks & Harrison said it's led to a considerable boost in business.

Handmade Soaps to Clean up Main Street (BizSense)
Michael and Sharon Walsh started making soap 18 years ago after receiving a how-to book as a gag gift. Five weeks ago they opened a soap shop across from the Richmond Public Library downtown. The soap sells for $4.50 a bar and is made in the back of the shop. Flavors include Hemp, Mint and one called Sore Muscles.

MeadWestvaco in deal for packager (Times-Dispatch)
Henrico County-based MeadWestvaco Corp. has teamed with an Indian company to buy a pharmaceutical packaging business. Terms of the deal, which closed Friday, were not disclosed.

Can passenger rail return to Roanoke? (Roanoke Times)
State transportation officials are drafting the latest proposal to restart passenger rail service in and out of Roanoke, which ended almost 30 years ago. Although it looks to one lawmaker as cost prohibitive just now, restarting is likely to get strong public backing at an open meeting Thursday called by the state Department of Rail and Public Transportation to discuss a wish list of improvements in statewide rail transit.

Vying with Starbucks: A Love-Hate Thing (Business Week)
As Starbucks' expansion loses steam, independent coffee shops reveal the subtle ways they compete with the coffee powerhouse.

Advertising in Digital Media (Entrepreneur)
Now potential customers can be reached 24 hours a day on many different devices all connected at once, and any customer can find your services through your digital portfolio, ringtone or podcast, or an online video tutorial. Beyond the internet, these media find their way to any medium that will support them.

Cost Cutters: Trimming Payroll, Without Layoffs (WSJ)
While layoffs may be necessary at some small businesses, employers should avoid sharpening the ax. Here's why: Not only do employees contribute to the company's productivity and bottom line, they're often well-schooled (at a great cost) on your specific business methods. Conduct layoffs now, and you'll spend even more to train a whole new batch once the economy picks back up. Instead, consider these other payroll-trimming strategies...

7.21.08

Starbucks closing 5 VA stores...none in Richmond (BizSense)
Starbucks announced the locations of the first round of store closings, and none are in Richmond. Five are in Virginia. The Seattle-based company will close 600 stores nationwide.

Tobacco commission's spending has mixed results (Times-Dispatch)
Virginia has spent an average of $65 million a year in settlement money to improve life in the state's tobacco-growing regions. Yet the state-appointed commission that doles out the money has not adopted methods of measuring its overall return on investment, an outside group that reviewed the spending noted in a recent report that suggests it do so.

Who’s in play to buy Busch parks? (Virginia Gazette)
The likelihood is growing that Anheuser-Busch InBev will sell off Busch Entertainment as a non-core asset needed to help pay back a $7 billion bridge loan due in a year. But who will buy it? The answer, as with Anheuser-Busch itself, may lie across the Atlantic Ocean.

Business hopes ‘Flirtresses’ steal the show at parties (Charlottesville Daily Progress)
Flirt, located near the University of Virginia, has established a cadre of beautiful young women who can be hired to attend parties and special events. So far, the “Flirtresses” have been tapped for a lingerie party, a casino night charitable event and a shindig hosted by one of Charlottesville’s weekly newspapers. “We’re not just pretty,” said Allison Hurt, Flirt’s owner. “We’re fun too.”

Gloomy Days Ahead for Retailers (Business Week)
Sales at nearly all retailers—save for those selling low-cost food—were dismal. And that's proving to be a source of deep worry for a broad array of retailers of everything from electronics and autos to home furnishings.

Credit seen drying up for U.S. small business (USA Today)
As losses mount at American banks and the pain of the credit crisis spreads from housing and finance to the broader economy, many small companies complain it is increasingly difficult to obtain loans. Tighter credit could not only help to push the United States into recession, but prolong the downturn as ideas for new businesses get stymied once entrepreneurs sit down with local bank managers, small business representatives warn.

When times are tough, look to nonbank lenders for venture debt (Entrepreneur)
Faced with more market uncertainty and less capital, entrepreneurs are turning to nontraditional lenders for venture debt. As its name implies, venture debt is a hybrid between a term loan and venture capital. Like a traditional loan, the debt is meant to be repaid, generally over a period of several years. Like venture capital, however, it is often provided to high-growth companies without any real collateral.

7.18.08

Pipeline: Businesses on the Move (BizSense)
CSC has leased 38,815 sf in the 1500 block of East Parham Road. CSC provides IT services to commercial and government customers. Thomspon Davis Asset Management has purchased the Barrett House at 15 South 5th Street in Richmond. Richmond-based Thompson Davis Asset Management also has an office at 919 East Main Street.

State regulators seek Wachovia Securities records (AP)
Securities regulators investigating Wachovia Securities' auction rate securities sales practices went to the company's St. Louis headquarters Thursday and requested documents and records. BizSense Background: In April, we broke the story about local investors and businesses that are unable to retrieve their money from these sort of funds.

Kaine orders state to cut spending (Times-Dispatch)
Kaine ordered the heads of state agencies to freeze hiring of employees and consultants, and he suspended nonessential travel, training and equipment purchases.

New Chamber Pres. says agenda similar to the one in Tampa (Times-Dispatch)
Kim Scheeler attended his first chamber board meeting yesterday to introduce himself to business leaders. He also praised the work already done by the group's staff and volunteers, and his predecessor, James W. Dunn, who retired June 30 after nearly 18 years with the local business organization.

Luna's new paint may help airline safety (Roanoke Times)
Roanoke-based Luna Innovations, which develops and manufactures products for the health care, telecommunications, energy and defense markets, has developed a paint for aircraft that will change color to indicate damage to underlying composite material.

Green buildings are going up, but so are the prices (Virginia-Pilot)
Touting benefits such as cheaper utility bills and more productive workers, developers are spending as much as $100,000 on top of construction costs to get a certification from the U.S. Green Building Council.

Cooling Off on Dubious Eco-Friendly Claims (New York Times)
With everyone from oil companies to dishwasher makers to banks trotting out their environmental credentials, complaints about greenwashing, or misleading consumers about a product’s environmental benefits, have risen.

Cost Cutters: Trimming Payroll, Without Layoffs (Smart Money)
While layoffs may be necessary at some small businesses, employers should avoid sharpening the ax. Here's why: Not only do employees contribute to the company's productivity and bottom line, they're often well-schooled (at a great cost) on your specific business methods. Conduct layoffs now, and you'll spend even more to train a whole new batch once the economy picks back up.

7.17.08

VCU study: Mergers and Acquisitions Disrupt Management (BizSense)
When companies merge, key top executives are often pushed out, according to a recently published study by a Virginia Commonwealth University business professor. Mergers can also lead to a host of other problems for the combined company, including disgruntled workers and disoriented customer

Scooter Invasion (BizSense)
From the Gas-O-Scream blog: Scoot Richmond, a scooter/moped store in the Manchester section of South Richmond, sold more scooters in May than in the entire previous year. Owner Chelsea May told BizSense she sold 50. Figures aren’t available yet for June, but she said it’s looking like it might top May’s record.

Kaine: Telework OK for more (Times-Dispatch)
Kaine said yesterday that he is expanding the state's existing telework policy to include the roughly 120 employees who work directly for the Governor's Office and Cabinet.

Pottery withdraws acreage from sale (Times-Dispatch)
Williamsburg Pottery has decided not to sell 1,200 acres in James City and York counties. In May, the company set up an online auction to sell the property. Bidding first was set to end July 1, but was extended to July 15 because of what the company called heavy interest.

Academic Freedom vs. $ from Philip Morris (Richmond.com)
Virginia Commonwealth University made a mistake when it agreed to secrecy provisions in its research contracts with Philip Morris USA, Frank Macrina, VCU's vice president of research, acknowledged earlier today at a public hearing.

These days the fishing is good, only if you can afford it (Virginia-Pilot)
With diesel prices running at record levels, increasing numbers of commercial fishers are curtailing trips, staying in port or leaving the industry altogether.

State's banks on solid ground, official says (Roanoke Times)
A top banking regulator said Virginia's state-chartered banks differ dramatically from the California bank and mortgage lender that this week faced a mass customer revolt after it was taken over by regulators.

RV dealers not giving up (Roanoke Times)
With summer here and gasoline prices rising with the temperature, recreational vehicle dealers and buyers are finding ways to adapt.

While the U.S. Spends Heavily on Health Care, a Study Faults the Quality (New York Times)
A study to be released Thursday highlights the stark contrast between what the United States spends on its health system and the quality of care it delivers, especially when compared with many other industrialized nations.

What Capital Crunch? (Business Week)
There's no capital crunch in Silicon Valley. Despite turmoil in the stock market, jitters about mortgage financiers Fannie Mae (FNM) and Freddie Mac (FRE), and the worst market for initial public offerings in decades, big investors continue to pour money into venture capital funds.

Surviving a Seasonal Business (Entrepreneur)
Running a seasonal business requires year-round work and tough self-discipline. Behind every successful seasonal business is an entrepreneur who's willing to work twice as hard and twice as smart as the conventional business owner.

7.16.08

Coming spring 09: Boulevard Movie Theater (BizSense)
A new movie theater on North Boulevard in Richmond will be showing flicks in early 2009, according to a mondo banner that went up this week. Bow Tie Partners, the NY-based developer, is calling the project Boulevard Square. The theater is slated to be called Movieland. It will be the only theater in the City of Richmond to play first-run pictures. Bow Tie also has new renderings up on their website. (Notice the small cars.)

Will car-sharing work in Richmond? (BizSense)
The first story in our new Gas-O-Scream Blog: Boston-based Zipcar rents cars to members for very short amounts of time (as little as an hour) in more than 50 cities across the United States. But If you’re looking to take a Zipcar on a test drive for yourself, the closest locations to Richmond are in Washington, D.C. and Chapel Hill, N.C. The company said is does not plan to add a location in Richmond even though the demographics seem suitable.

15-story office tower proposed downtown (Times-Dispatch)
Armada Hoffler, a Virginia Beach-based development company, is proposing the $60 million project for a small surface parking lot at 10th and Canal streets. The new tower would stand between One James Center and Riverfront Plaza, and a portion of the building would rise over the Expressway Parking Deck.

Roads an issue inside Kingsmill (Virginia Gazette)
Kingsmill Resort in Williamsburg may be sold by Anheuser-Busch, or possibly lose the gates in order to transfer responsibility for the roads inside the gated community to the county.

ITT secures $24 million order from U.S. Army (Roanoke Times)
The $24.4 million order is for ITT Night Vision’s “enhanced night vision goggle,” which combines image intensification and infrared technologies into one device. According to the Army and ITT, the ENVG is the first helmet-mounted night vision monocular to combine the two.
In April, the Army equipped its first unit with the sophisticated goggle.ITT Night Vision employs 1,400 people at its Roanoke County facility.

Economic pain: 'Payback' for debt-fueled growth? (USA Today)
year ago, the financial virus seemed confined to subprime mortgages, defaults on loans given to those with less-than-perfect credit. Now, much of the banking system appears rickety, and the U.S. economy has slowed to a crawl. But thanks to robust demand from still-growing countries such as China, the prices of commodities from oil to food have soared — hitting Americans from the gas pump to the grocery checkout.

Collecting Money in a Bad Economy (Business Week)
Yes, it's harder now, particularly for small companies with limited resources. Click to see a practical guide to collections.

7.15.08

A Tale of Two Broad Streets (BizSense)
The stretch of Broad between Shafer Street and 4th Street (near the Convention Center) has a vacancy rate above 30%, according to a BizSense tally. There are 108 occupied storefronts / offices. Twenty-one are vacant with “For Rent” signs, and 26 have the remains of a business of some sort, but show no signs of life. Eight are under repair. VCU-owned buildings, such as dorms and offices were not included in the calculation.

JetBlue to start flying from RIC to Orlando (BizSense)
JetBlue announced on Monday that it will fly direct from Richmond to Orlando starting in September.
The daily flight will leave RIC at 11:55 a.m. and arrive in Florida two hours later. The return flight will leave Orlando at 9:30 a.m. Several other airlines already fly direct to Orlando.

Companies try to cut gas consumption (Times-Dispatch)
UPS Freight drivers are encouraged to drive slower these days, admission prices at Kings Dominion increased recently and requests for energy-saving revolving doors locally are on the rise. Rising fuel and energy costs are causing some companies to raise fees and change the way business is done.

InBev's Busch buyout has community on edge (Daily Press)
In addition to a $2.25 million sponsorship for Jamestown 2007, Anheuser-Busch contributed its experts to help Williamsburg-area tourism leaders train hospitality workers on how to properly take care of visitors for the event. That is exactly the kind of contribution that community leaders worry could be lost as Anheuser-Busch gets new Belgian owners who are known as fierce cost-cutters.

Confidence Ebbs for Bank Sector and Stocks Fall (NY Times)
Even as the Bush administration moved to rescue the nation’s two largest mortgage finance companies, confidence in the banking sector spiraled downward Monday.

The Bailout Will be a Bargain (Slate)
The cost of rescuing Fannie Mae and Freddie Mac will be way less than the amount they have saved American taxpayers.

7.14.08

Lumber Layoffs (BizSense)
Roper Brothers Lumber has laid off dozens of workers due to a slowdown in the housing sector.

Traffic at RIC takes off, fares are down because of AirTran, JetBlue (Times-Dispatch)
A last-minute trip to New York could cost a business traveler $800, and going to Atlanta cost more than $1,200. "We were generally in the top three highest-priced markets," said Bell, the airport's marketing and air service development di