To Connecticut businesses big and small: where are you? A small scant of you I met this morning at Connecticut Business Day (if there was more information on this event, I’d link to it). Others are skimming this post and asking, “what is Connecticut Business Day?” Sounds impressive doesn’t it? It’s really less of an event and more like a half day of discussion and stale danish.

I didn’t know Connecticut Business Day existed until I attended a Simsbury Chamber of Commerce event last week. I also didn’t know what to expect. I attended the open session to hear Governor Rell and legislators speak about the top priorities in Connecticut business. Mission accomplished. I also attended with the intention of raising my hand to ask Gov. Rell if any incentives or programs are being discussed to support the growth and unrelocation of mobile and solo entrepreneurs. Oops.

Well, I missed my chance with the governor but I was able to pose the question to Rep. Kevin Witkos (Avon, CT) and we also had a quick chat about coworking. Kevin will be one of our first group88 speakers and seemed jazzed about the idea. I also had a half-second drive-by chat with the ever-effervescent Rep. Rob Simmons, Connecticut’s Business Advocate. I will be taking Rob up on his offer of 15 minutes of his time (your place or his), and hope to get his thoughts on how we can introduce Connecticut to coworking and other new ways that entrepreneurs are doing business.

Walking out of Connecticut Business Day (which, by the way, is from 7:30-noonish, so not so much of a “day”), I felt both inspired to get more involved with the state (did I just say that outloud?) and edgy about possible outcomes from upcoming sessions: either paralyzation of possible incentives or overreaction of useless mandates. Below are a list of action points discussed and WallFly’s review categorized as “Inspired” or “Tired”:

High-tech Corridor – TIRED: Discussion of this state’s wish to be nano-pioneers and the mayor of high-tech is great but what communities are we building for innovators? We have pockets of innovation via Yale, CCAT, UConn, CCSU and others. Resources, programs and seed/investment dollars are available. What we lack is real-world connections and initiatives that move at the pace of business versus government. Government needs to understand the unique mojo of young entrepreneurs. The new mobile, home-based and start-up workforce requires different environments, culture and interaction. Unfortunately, I feel like that by the time government gets it, the trends will have moved on.

Many times today, I heard “You entrepreneurs need to reach out and get involved. Talk to us. Tell us what you need.” All true, we do need to get more invovled. But, to be candid, the Connecticut government needs to work on its rep for newbies to even consider reaching out. If you are new to entrepreneurship, the word on the street is that state government will slow you down and pain up the process of doing business. Is it true? Honestly, I don’t know. The few folks I’ve met in the state are sharp and very helpful. Is the state my first choice when I need help? No. Last summer I presented the idea of coworking to one state-funded org. Discussions were encouraging and there were many Hollywood “yes’s” about the project. But, eight months later, I’m still waiting to hear if they’re going to move forward.

Transportation – INSPIRED: If you’re not trapped under something heavy during the hours of 7a.m. to 6p.m., driving in this state is an issue for you. Gov. Rell gets this. Her recent proposal to split the DOT may or may not be the best answer but at least the discussion will (fingers crossed) lead to a real reorg. As State Senator John McKinney commented, the best solution for transforming the DOT is up for grabs right now but, one thing is for sure: “the answer is not more roads.”

Energy – TIRED: There are no energy-related bills on the table this year. The state is currently implementing and “administering” the building of transmission lines so any other discussions on energy is apparently not a priority. Connecticut has the highest energy costs in the nation. According to State Senator Donald Williams, we pay $300-500 billion in energy costs due to out-of-state purchases and then paying for it all year long. Rep. Larry Cafero told the story of a business who increased prices 75% to cover the cost of his skyrocketing electric bill. He also discussed a recent article in Expansion Management magazine that ranked Connecticut as 50th in attractive business-friendly political climates. How is it possible that energy and cost-reduction measures are NOT a priority?!

Health Plan – INSPIRED & TIRED: Gov. Rell discussed her Charter Oak Plan (insurance for those of us in the gap – i.e., one of this state’s primary workforces) and her distress on this bill (and others) that will “break the bank.” Her original proposal would cost the state $15 million while the current proposal on the table is peaking at $15 billion. Ouch.

Entity Tax Repeal – INSPIRED: Okay, it’s only $250, but for a tax that did nothing except take money out of our pockets, I think we can all be happy to say goodbye to that one.

Overall, Gov. Rell’s message is to be “cautious and realistic” as we bear through this thing that her advisors are afraid to call a recession. I agree with cutting costs, for sure. But being “cautious” doesn’t exactly fit right. Yesterday was the 75th anniversary of FDR’s famous “the only we have to fear is fear itself” first inaugural speech. For those kids out there who have heard the “fear itself” quip many times, he was not talking about Al Queda. He was talking about beating the Great Depression and building a vibrant economy that required action and didn’t bow to self-fulfilling financial doom prophecy. Today it’s true that our economy is built on stilts right now. However, if we don’t move forward and be aggressive and smart, we are sure to fall on our face.

I hope to meet with more legislators to discuss the new business environment. If there is any mandate out there to discuss, it should be the requirement of new businesses to meet with government in some fashion. Talk all you want about inactivity or overactivity in state government, until we all make our Who voices heard to the Hortons at the Legislative Office Building on Capitol Ave., can we really complain about it?

Predicting what 2008 will bring is tricky business. It’s an election year, housing is moving on from sellers-market denial, credit card debt continues to eat away at our economic stability, the U.S. dollar has seen better days, old media continues to fight the once-good fight while new media prepares for all-out infiltration and conglomerate air time is continually consumed by the Writer’s Guild strike and Britney Smears instead of our troops.

Armageddon? Not yet. As far as I can tell, turmoil breeds panic for the timid and intrigue for everyone else. The business climate, depending on the business, is at once volatile and filled with opportunity. I see the upcoming two years as less of an end to a decade than a precursor to the incredible shifts that will take place beginning in 2010. Virtual living and working will cause person-to-person business to make room for better online practices and philosophies. To be truly successful in the Web 2.whatever, businesses must synergize online and offline activities. Your business’ relationships, revenue and mojo depend on it. Enough about the decade, let’s just focus on 2008 for now.

Below are WallFly’s top three predictions for the upcoming year. I have to admit they are a mix of prediction and hope. Maybe I should have called them “Business-Fulfilling Prophecies” instead?

Recession Schmession

Smart companies will improve relationships, not business plans.

I’m not suggesting you avoid streamlining. We’re all making measured decisions with our cash flow. Just last week I considered not sending out a business mailer for the holiday season. Instead I opted to spend less money at Panera and wait until the new year to hit Staples.

Move your numbers around all you want but if you’re not taking time out to do the following, you are losing ground with clients: a) connecting with your clients on a regular basis (phone, mail, email or events) to increase opportunity for more interaction b) learning when, why and how your current clients interact with you, and applying that knowledge to improving your value and c) feeding your positioning with a menu of competitive activity, impending growth and your customer’s changing climate.

We all know that getting a client takes double the effort versus convincing a happy client to stay, so why do companies continue to neglect clients in the off-season of interaction? Think about your best personal relationships and what makes them tick. Making someone happy in a relationship 90% of the time requires improving their life every day (i.e., taking out the garbage) versus buying an expensive gift one day out of the year (i.e., buying an iPhone). Next time you consider dumping all of your marketing dollars into a big trade show, think about the low-budget things you can do to reach out to clients throughout the year: start a monthly newsletter, make quality control phone calls, talk about how other clients benefit from you, make in-person annual visits or even send out a short quarterly email that shares info on upcoming developments.

Ecomm Grows Up

Utility will emerge from 80 gazillion social media apps.

I’ve seen some pretty useless Facebook applications - from starting a virtual snowball fight to getting hugged by a zombie. How do these strides in web development improve your business? They won’t. But they will change the way users interact with the web and that’s what you need notice. Once users start expecting things from the online world, they want it from everyone - a streamlined user experience, content that takes into account context and a site that understands the concept of easy.

The massive amount of activity taking place among developers for Facebook and now Google’s universal app platform will both increase the size of our kids’ behinds as they play less soccer (or play more virtual soccer) and generate technologies that users will want to see everywhere. If you have a website, start paying attention to the activities happening online. You don’t have to apply them all but you have to understand how it will affect your clients. I’ve advised some clients to skip blogging because it didn’t make sense for them. It’s not about jumping on the latest, new technology - it’s about understanding how all new technology is driving the way we do business.

Marketing Gets Stuck

New media will drive marketing. The stories that stick, win.

I was wondering when some smart marketing guy would take Chris Anderson’s Long Tail and extend it by applying it to branding. The smart marketing guy is Mohammed Iqbal and the essay is The Elongating Tail of Brand Communication, as found on ChangeThis.

One-hit wonders are not only increasingly rare in this climate of targeted success, aiming for them is the same as denying the tastes of various music fans. We are a culture of choice and highly personal demand. One size does not fit all and this philosophy applies to both your products or service and your brand position.

I recently discovered this in my research for finding a market for a Connecticut coworking space, Group88, that I will help manage in 2008. Some of the area professionals liked the idea of getting out of their home-based office to meet with other folks while others had no need for networking at all (I think there’s always a need for networking but I’m partial to the practice). You can’t be all things to all people so don’t even try. You can, however, choose the primary values of your positioning that appeals to your variety of customers. Using new media channels to test an idea and then kill it or expand it will yield higher results than picking one thing and crossing your fingers that it will stick. Don’t egg your basket - add crates and buckets and other things to put all your eggs into.

I have never been tempted to drag myself out of a post-Thanksgiving coma to mingle with the early morning freaks on Black Friday. But darn that Kohl’s if they didn’t have the best deal on digital photo frames. So, there I was, pulling into Kohl’s at 4:15 a.m., and under my droopy eyelids I suddenly notice not 1, 2 or 3 but like 8-10 women strolling out of the store with purchases in hand. The store had only been open for 15 minutes! These gals must have been camped out since 2 a.m. and, obviously, knew exactly what they wanted - my digital photo frame. Dang it!

I parked the car, in the second back lot since the first was a complete nightmare, and strolled into the store. After finding the empty shelf that was home to my digital photo frame and catching a glimpse of the frenzy throughout the store, I split. I then strolled over to Best Buy, which was opening at 5 a.m., and got in the line about 300 people deep. A guy in front of me told another guy that he’d need a ticket or he’d be forced to wait outside and, by the way, they weren’t giving out tickets anymore. Back to the car I went. I’ll spare you the details of the rest of my day, which I now call Black-Eye Friday, for the elbow-throwing crazies who will do anything to grab the biggest deal first.

Have we totally lost our minds? Retailers are pointing to high fuel prices (which are definitely a factor but not always a deal breaker) and the mortgage crunch for pre-blame commentary on how they will have a tough holiday season. Dozens of surveys and reports such as this one by U.S. News predict consumers will tighten their belts and spend less than we have in the past 5 years. Fooey! It’s not the holidays we should be worried about. Consumers won’t spend less between now and December 25. They’ll just jack up their plastic and then, starting January 1, try to figure out how to pay for it. And that’s when we’ll all be in trouble.

I don’t think we’ll have an all-out recession (plus, who am I to predict such things?), but I do think that businesses will be tightening up in every area: resources, marketing, advertising, overhead, employee benefits and anything that isn’t instantly reflective of the bottom line. You will see tons more businesses investing marketing dollars in online within the next two years. This isn’t difficult to predict based on the recent growth in trends and the Googlization of advertising, but I believe more businesses will be open to online for basic cost-saving factors. As long as they can be sure of the return and, with online, tracking the return is as easy as a few clicks and a scan of the data.

You can take all the surveys you want that will predict a slow in spending, and they might be true, but I’m less concerned with the economical effects of not buying Johnny an iPhone in Christmas 2007 versus the after-effects of a nervous economy that breeds less investing and ostrich-like spending in 2008 and beyond.

The latest thing in networking and working, if you haven’t heard, is Jelly. Started by Amit Gupta of ChangeThis and BarCamp fame, Jelly-type gatherings bring solo entreprenuers and freelancers together to work out of somone’s home once a week or whenever. The result is a mutt environment of social hanging out, idea storming and actual working - all sans office politics.

Jelly is the hippie, laidback sister-in-law to the evergrowing Coworking trend where independents pay to come and go at jointly-funded office space. A local example of this is Betahouse in Boston. From what I’ve heard, the slots are for established techies versus just-starting-outs. A colleague of mine is dying to get in to Betahouse because of the networking potential. I’m sure Betahouse serves its renters well but the whole concept of how this developed intrigues me. I am always fascinated by how trends take shape and sometimes morph into the very thing they were getting away from. In this case, one of the goals of creating non-traditional work spaces through Coworking was to stave off office politics and create an open environment. Betahouse only has so many desks (12, I believe). It makes sense that they would limit those slots to folks that would most benefit from working in close quarters, but by channeling the networking, has an environment of exclusivity been created, similar to those found in traditional office politics? This isn’t a rhetorical question, I’m really asking. If anyone in Betahouse or any other Coworking space stumbles on this post, I’d like your thoughts.

Note that I have no idea if someone would be turned away from Betahouse if they didn’t fit the typical characteristics of that crowd - and, if they did, so be it. They have every right to do whatever they want with their rental space. I just find the evolution of certain types of social networking intriguing. No matter how organic an idea begins, it’s bound to get formalized. Rules follow, opinions clash and pretty soon bloggers like me start jumping all over it.

Pals of mine recently started a Jelly in Connecticut, Jam At Work, and so far I’ve only attended one afternoon. I liked it - I actually did get some work done and had a few laughs in the process. I’m sure I’ll return in the future. I doubt, however, that I will rent a coworking space anytime soon but I won’t discount it down the road.

I could start a jam or jelly or preserves of my own. Of course, this would require me to keep my dining room table free of papers, coffee mugs and random items that seem to crawl up out of nowhere. On second thought, I’ll preserve my workspace and keep the jelly in the fridge.