An interesting conversation on regulations, taxes, entitlements and competitiveness

I had a conversation last week with one of the more liberal members of my family (yes, I am the oddball in family politics). It really made me think and I have been reflecting on it a bunch. Here is how it went…

I was talking about how I had saved one of my client tens of thousands of dollars by helping them find an offshore supplier for their invention which highlighted to my family member how uncompetitive our nation is in many industries. (As a note, I would always prefer to make product in America but American consumers are not willing to pay 5x the cost for products, so the choice is often to source internationally or have the business fail.)

My family member asked me what can be done to make the US more competitive. I highlighted how the recent Health Care Law impacts businesses. The very quick response that I received was “but the health care law does a lot of good things” which apparently made it, in their eyes, an “acceptable” burden to place on businesses.

Here is the part that I have been reflecting upon the most. Since Americans among are the most productive in the world, there are two other factors that differentiate US labor pricing from international labor pricing: supply/demand and overhead costs. From a supply/demand perspective, countries like China and Indian have a competitive advantage but that advantage has been lessening as evidenced by the wage inflation in those countries (China is even considering loosening their one child policy). The nice thing about macro economics in the long run is that supply/demand difference ultimately even out.

So that leaves overhead as a differentiating factor between US and offshore manufacturing, which includes all of the facilities, staff and all of the regulatory, environmental and other costs applied by our government . Now, we all like living in a country with clean air, clean water, etc. and when those laws were passed, the certainly were passed on the basis that they “did a lot of good things”. The challenge that we have is that all of those good things combined cost a lot of money and impact our ability to compete. I am not advocating that we get rid of all of the laws that govern business in our country. However, we should ensure that the laws that are in place have had the intended impact and are worth the burden that they place on competitiveness/job creation and we should certainly scrutinize every new burden that we place on businesses because those burdens will only further reduce our competitiveness and hinder creation of new jobs.

Work It Richmond features Mike Bucci in “You Need To Meet…” section

Read the full article here:

http://workitrichmond.com/people/mike-bucci/

Mike Bucci interviewed and featured in new Richmond Times-Dispatch article “

K & M of VA, Inc. President & Founder, Mike Bucci, was interviewed by the Richmond Times-Dispatch (‘Moneywise’ section, March 25, 2012) for another fine article. This time, it’s about inventor support, something Mike knows a lot about, from both ends of the spectrum.

Here’s a link to the full article: http://www2.timesdispatch.com/business/2012/mar/25/richmond-region-needs-more-support-inventors-ar-1791874/

Great New Opportunity for Inventors to Get Their Products To Market

Please take a look at the attached opportunity to work with QVC to bring your product to market.  http://inventoropinion.blogspot.com/

Every small business owner can relate to this!!!

Every small business owner can relate to this!!!

Home Stock Research eIBD News IBD Editorials Education Community Leaderboard Store Small Business And Regulation V: K & M of VA, Inc. (Interview)

Mike was interviewed Investors.com! Here’s the link to the result:

http://blogs.investors.com/capitalhill/index.php/home/35-politicsinvesting/5423-small-business-and-regulation-v-k-a-m-of-va-inc

 

The Wrong Question to Ask a Patent Attorney

I am fortunate that I get to see and be a part of many inventors’ efforts to bring their ideas to market. Sometimes it can be very disappointing when I come across enthusiastic, budding entrepreneurs who haven’t received good information from those who should be supporting them.

There are many great patent attorneys out there who do their best to help inventors get meaningful protections for their ideas. Unfortunately there are some who believe that their job is to get any type of protection issued by the USPTO (United States Patent and Trademark Office). In some cases, there mere act of having a patent brings satisfaction to the inventor, but if that inventor wants to bring their idea to market, they need more.

Initial discussions between aspiring inventors and patent attorneys often center on the question of “Is this idea patentable?” While that is an important question to answer, it isn’t what the inventor will ultimately need if they plan to bring their idea to market. What they really need to know is, “Can I get meaningful protections that will enable me to defend my idea from competitors?”

For ‘utility patents,’ (see basic definition below) these meaningful protections come from the specific claims that are approved by the USPTO.  These claims are carefully worded by a patent attorney to strike a balance between being as expansive as possible (to give the broadest protections possible) and being specific enough to have a chance of receiving a patent.

When your patent attorney is writing the initial claims, it is important to ask what is NOT included in the claims.  I have frequently seen claims (even the independent claims) with so many criteria included that, while the claims describe the idea, there are many changes that a competitor can make to provide the same benefits to customers and avoid the protections outlined in the patent.  It is important to understand that these claims can change during prosecution with the USPTO.  While these changes are occurring, continue to work with your patent attorney to clearly understand the implications for your legal protections.

As a general rule of thumb, ‘design patents’ (see basic definition below) offer lesser protections than utility patents since the design patents really just focus on the ornamental features of the idea.  Even with many simple designs, most competitors can relatively easily change features and provide customers with the same benefits thereby avoiding the protections provided.

For many, getting a patent is a very exciting accomplishment.  If you intend to bring your idea to market (or license it), you will want to make sure that you are asking you patent attorney the right question…

HELPFUL NOTES:

Utility Patent – Subdivided into mechanical, electrical and chemical categories, a Utility Patent protects the way an invention is used and works. Utility patents may be granted to anyone who invents a new and useful method, process, machine, device, manufactured item, or chemical compound – or any new and useful improvement to the same.

Design Patent – Protects only the ornamental appearance of an invention, not its utilitarian features.

…

Mike Bucci is President of K&M of VA Inc., a Richmond, Virginia company that exists to turn clever, useful and unique ideas into commercially successful products. He is also the author of the new book: “Start Living the American Dream: An Entrepreneur’s Guide to Turning Your IDEA into your FUTURE”, now available on Amazon.com.

Contact him at mike@kandmofva.com

With over 15 years of experience in corporate America including several fortune 100 companies and top tier management consulting firms, Mike learned many lessons but had always dreamed of pursuing his own business. Despite lacking previous experience in several critical areas, Mike has been able to successfully transform his idea for the Painter’s Pyramid into what some industry experts have called “one of the hottest products in years”. Mike has utilized his experience and refined his approach to launch into new markets and expand with additional products.

Since launching the Painter’s Pyramid, Mike’s business has successfully launched multiple successful products including VersaSpin 360, Slide-N-Pump and Grabbers. All of these products have demonstrated commercial success.

Most recently, Mike has published a book which is a guide for entrepreneurs looking to turn their ideas into commercial products called “Start Living The American Dream: An Entrepreneur’s Guide to Turning Your Idea Into Your Future”. There are multiple additional services offered to help turn inventors into successful entrepreneurs. More information on all these services is available <Here>

Mike’s education includes a Bachelor of Science in Manufacturing Engineering from Worcester Polytechnic Institute and two Masters Degrees from the University of Virginia: Masters in Business Administration and Masters in Management of Information Technology.

Mike is an active advocate for entrepreneurship and small businesses. He currently serves on the U.S. Chamber of Commerce- Council on Small Business and the Virginia Leadership Council for the National Federation of Independent Business.

For Mike, the greatest benefit of becoming an entrepreneur has little to do with the freedom and exhilaration of his career. When asking Mike’s young daughter what she wants to be when she grows up, she doesn’t talk about jobs. She talks about becoming an inventor and being the president of her own company… How great is that for a six year old!!!

***

‘Work It Richmond’ interview with Mike Bucci

An interview of Mike done on October 30, 2011

Link to site article:
http://www.workitrichmond.com/2011/10/conversation-serial-entrepreneur/

Transcript:

Lessons from a serial entrepreneur

(October 30, 2011)

by Adam Foldenauer

Sometimes entrepreneurs can get buried by work. But Mike Bucci, shown here with his painter’s pyramid, has managed to successfully bring four products, all in the hardware and home improvement fields, to market.
Sometimes entrepreneurs can get buried by work. But Mike Bucci, shown here with his painter’s pyramid, has managed to successfully bring four products, all in the hardware and home improvement fields, to market.

The world is full of entrepreneurs and inventors. But for every bright idea that makes it into the commercial market, there are several more that never get off the drawing board or out of the basement workshop. Mike Bucci, President, K&M of Virginia here in Richmond, has managed to get some of his products out of the workshop and on to shelves – lots of shelves. Work It sat down with him to learn more about his business and about his success in getting new products to market.

Work It: Tell us about your business.

Bucci: My business has two areas of focus. There’s the side of the business that’s been in place for four years, which is taking unique product ideas, developing these ideas and bringing them to market. I’ve launched four products.

The other side of my business is helping others commercialize their product ideas and bring them to market. This is more of a services focus. I also speak at colleges and to inventor groups.

What are your products?

All of my products are in hardware and home improvement, things like woodworking or arts and crafts. Three of the products are ones I came up with. The most successful, maybe due to time in market, is the first product, Painter’s Pyramid. It’s in 10,000 retail locations, including Lowe’s and Home Depot, and 20-plus countries. The fourth is a patent that I licensed from the inventor, Slide-n-Pump. It’s a combination siphon and hand pump. It pulls water out and sends it wherever you want it to go.

The success rate for new products is low. How do you explain your quick success with your first product?

I hear that people say in entrepreneurship, “The key to success is failure first.” I’ve chosen to go with, “The key to success is succeeding.” But to be clear, I didn’t go forward with the first product until I had some very positive market reads. I very much hedged my bets. I kept my job at an area corporation and worked nights and weekends on the Painter’s Pyramid. That’s what I tell people. Don’t quit your day job just yet. You want to keep that day job going at least until you have some positive market reads on your product.

The market read you ultimately need is that the product resonates with customers, meaning they are willing to open their wallets, at a price that has sufficient margins to be successful.

Why add consulting services in addition to product development and management?

I was repeatedly approached by people who had these product ideas. A lot of the ideas were good, and a lot of the people were very capable. The biggest stumbling block people often had was not knowing what to do. Over time in launching multiple products, I’ve learned it’s a very consistent process you go through. Once you point people in the direction, they get it; they just didn’t know where to start beforehand.

What’s your growth strategy?

Two things I’ve learned in my journey. One, you need to continue creating options for yourself. Plant seeds. I’m not smart enough to know what’s going to work. With services, I’m standing up a whole option for me to move in that direction. The second thing is to be flexible. I’m not sure which part of my business is going to grow faster. I think I can grow both but I’m not sure if one or both will succeed.

What’s the most vital skill to have as an entrepreneur?

My core skill set is the ability to wear a lot of different hats on different days. Also, being very disciplined on cash management and managing financials. A third is the ability to know when to make a decision and the ability to know when you need to work some more before making that decision.

What surprised you about being a small business owner?

I literally spend 70 percent of my time doing sales and marketing and customer relationship management for my business. That was a surprise to me. My first priority every day is taking care of my customers.

Bucci has also written a book called “Start Living the American Dream.”

…

60 Seconds with Mike Bucci – Richmond Times-Dispatch (Virginia, USA)

The printed piece as it appeared in the Richmond Times-Dispatch on Monday, October 24, 2011:

The companion video from the Richmond Times-Dispatch website:

http://vp.mgnetwork.net/viewer.swf?u=e26d1c0e4e2b102faba2001ec92a4a0d&z=RTD&embed_player=1\

If Washington wants jobs, work with small businesses (Op-Ed Piece published in Richmond Times-Dispatch)

[Full text of article, published August 28, 2011:]

If Washington wants jobs, work with small businesses

by Mike Bucci

I run what many consider to be the ultimate small business — a company that takes great new product ideas and brings those products to market on an international scale. Like all small business owners, I have been paying a lot of attention lately to our nation’s economic problems and the desire by our most prominent politicians to create jobs.

Unemployment is currently about 6 percent in Virginia, but it is higher nationwide — nearly 1 in 10 working people are out of a job, with many more who are underemployed or have simply given up.

For all the back and forth that we’ve seen in Congress this year over how to get the economy moving, our elected officials should start by focusing on one fact: Small businesses are the job creators for our nation.

Here’s what Washington needs to understand: Businesses and business people are the source of all of our nation’s prosperity and the source of income for most Americans.

The vast majority of small business owners are honest people who believe that they can build a better future for themselves and those around them. They believe that their willingness to accept risk, their ingenuity and their efforts should drive their success. It’s called the American Dream.

* * * * *

What’s currently coming out of Washington is more regulation that drives more costs and more uncertainty for businesses like mine.

These regulations often claim lofty goals or aspirations but are ungrounded in their structure and fundamentally flawed in their implementation — the costs to businesses are ignored, and the “unintended consequences” are sometimes worse than the problems the regulations were intended to address.

In addition, the cost of adhering to these regulations is disproportionate, with small businesses paying 30 percent to 40 percent more than their big-business counterparts. This directly impacts many businesses such as mine by decreasing our ability to compete and grow our businesses through investment and increased hiring.

There are several major impacts that are already being felt by many businesses. This is occurring with the implications of Dodd-Frank and the increased scrutiny that federal regulators have applied to banks.

My bank, one of the largest in the nation, introduced a series of “new processes” for small businesses in response to regulatory concerns. Despite my impeccable credit history, my bank made it abundantly clear that its goal was to avoid this regulatory scrutiny and that saying “no” to loans was never the wrong answer. While I was fortunate to secure funding elsewhere, I know that many are not getting the much-needed capital to start or grow their business.

* * * * *

I’m a small business owner who works long days (and often long nights) running and building my business. I understand there are more than 4,200 new regulations in the pipeline today, with nearly a thousand of those impacting small businesses.

Like most small business owners, I don’t employ full-time lawyers and accountants. So for me, the scariest thing is that I don’t know what I don’t know. The concern I share with many business owners is that something I’m not even tracking will significantly and meaningfully impact my business.

A huge proportion of those regulations are coming from the U.S. Environmental Protection Agency. These regulations would impact everything from farms and construction to carbon dioxide emissions from schools and hospitals.

These may be driven by lofty ideals. Who can argue with cleaner air? But a proposal to dramatically tighten ozone thresholds (that were tightened just three years ago) could throw 90 percent of the nation into noncompliance and jeopardize 7.3 million jobs.

The implementation of these and other new regulations will hamper or eliminate business’s ability to create jobs in the United States, leaving businesses with the option of creating jobs in other countries or not competing at all. This tells me that Washington has something else in mind entirely — not job creation, and certainly not job creation by small businesses.

I’m not against regulations and agree that many are justified. However, the current situation in Washington puts the agencies proposing burdensome rules in charge of assessing the costs and benefits of those very regulations. Those assessments often omit or understate the full impacts of new regulations.

A responsible approach would require independent assessments of the full impacts of new regulations. Since small businesses are the backbone of our economy, any assessment should include direct and indirect impacts on small businesses.

* * * * *

If Washington is truly interested in creating jobs and stimulating our economy, it would make much more sense for it to stop hindering small businesses by forcing them to wade through a code of federal regulations that currently comes in at 150,000 pages — and is growing every day.

Perhaps Washington should go so far as understanding and repealing existing regulations that are outdated or didn’t have the intended outcomes and are hampering businesses today. This approach would help business and likely streamline government agencies.

I’m waiting and hoping to see that kind of signal from Washington, so I can continue to thrive and create jobs here in Virginia.

***

Mike Bucci is president of K&M of VA Inc., a Richmond, Virginia company that exists to turn clever, useful and unique ideas into commercially successful products. He is also the author of the new book: “Start Living the American Dream: An Entrepreneur’s Guide to Turning Your IDEA into your FUTURE”, now available on Amazon.com.

Contact him at mike@kandmofva.com

With over 15 years of experience in corporate America including several fortune 100 companies and top tier management consulting firms, Mike learned many lessons but had always dreamed of pursuing his own business.  Despite lacking previous experience in several critical areas, Mike has been able to successfully transform his idea for the Painter’s Pyramid into what some industry experts have called “one of the hottest products in years”.  Mike has utilized his experience and refined his approach to launch into new markets and expand with additional products.  

Since launching the Painter’s Pyramid, Mike’s business has successfully launched multiple successful products including VersaSpin 360, Slide-N-Pump and Grabbers.  All of these products have demonstrated commercial success.

Most recently, Mike has published a book which is a guide for entrepreneurs looking to turn their ideas into commercial products called “Start Living The American Dream: An Entrepreneur’s Guide to Turning Your Idea Into Your Future”.  There are multiple additional services offered to help turn inventors into successful entrepreneurs.  More information on all these services is available <Here>

Mike’s education includes a Bachelor of Science in Manufacturing Engineering from Worcester Polytechnic Institute and two Masters Degrees from the University of Virginia:  Masters in Business Administration and Masters in Management of Information Technology. 

Mike is an active advocate for entrepreneurship and small businesses.  He currently serves on the U.S. Chamber of Commerce- Council on Small Business and the Virginia Leadership Council for the National Federation of Independent Business.

For Mike, the greatest benefit of becoming an entrepreneur has little to do with the freedom and exhilaration of his career.  When asking Mike’s young daughter what she wants to be when she grows up, she doesn’t talk about jobs.  She talks about becoming an inventor and being the president of her own company…  How great is that for a six year old!!!

***

Link to above article as it appeared on the Richmond Times-Dispatch website: http://www2.timesdispatch.com/news/commentary/2011/aug/28/tdcomm04-if-washington-wants-jobs-work-with-small–ar-1267064/