There’s Gold In Them Thar Judgments

According to a recent study by the Haub School of Business, nearly 10% of medical dollars are left on the table during the claims process.   A leading insurance trade group found that 15% of all property casualty claims contain missed subrogation valued at $15 billion dollars.   Court records at all levels bear out that more than 80% of all judgments, valued at more than $150 billion dollars per year, go uncollected.   The amount of money being overlooked by businesses and individuals is staggering.   Fortunately, a good portion of this money is actually recoverable with the right tools and expertise.

When I am asked to assist a company what steps can be taken to maximize their bottom line, the first place to look is often their internal processes and procedures.   In particular, what procedures are in place for existing judgments, often overlooked or even cast aside during good times. 

During prosperous times, finding money was as simple as increasing sales.   As the economy deteriorated, the solution was to cut costs.   The challenge today is what to do when the sales dry up and the prolonged bad times result in every cost cutting measure being exhausted.   The solution is to get creative and perhaps nowhere is this more prevalent that pursuing existing judgments. 

If you are a hospital, insurer, manufacturer, municipality, utility or attorney the chances are pretty high that you have unpaid judgments, quite possibly collecting dust.    Now is the time to pull them off the shelves, make sure they are still valid, and begin the quest to put that money in your coffers. 

Judgments can be tricky to collect with debtors who are often hard to find and slippery as eels.   The state and federal mandates and regulations in the collection process can be as tricky as navigating a channel filled with landmines.  But when all is said and done, a competent collector can effectively find money to add to your bottom line.  

There are a number of on line resources to aid the ambitious in tracking down money such People Search, Pipl, Bigfoot, LexisNexis, Free Erisa and Skip Tracer.   There are also business partners who will provide expertise and knowhow that can have a dramatic impact on the bottom line recovery dollars.  

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Sequoia Financial is the preferred vendor of the Los Angeles County Bar, collection agent for more than three dozen cities, world renowned hospitals and multiple Top 10 insurers.   They pursue debt both domestically and internationally, including claims for faulty Chinese drywall. 

American Innovation

Today’s headline in the Washington Times announced that federal employment has hit a new record, with more than 2.15 million fellow Americans on the government payroll.   This, coupled with a record trillion dollar deficit spells trouble on the employment front for the foreseeable future. 

According to the Congressional Budget Office the current deficits will exceed 4% of the GDP for most of this decade, while most economists agree that deficits over 3% are unsustainable.   While the government has taken steps to jumpstart the economy, many experts view their actions as generally ineffective.   Couple this with an increase in federal spending and a decrease in taxes as the result of higher unemployment and discretionary spending by consumers we have created a perfect storm for those seeking to find new jobs.  

While all of this is troubling, I would remind readers that through the prism of history we have faced similar challenges, in particular at the end of World War II, when the deficit was 7.2% of GDP and in 1983 when it was 6%.   To replicate the dramatic growth and prosperity that occurred in subsequent years the government must take certain actions to rein in spending and prevent further monetization of debt that would result in higher inflation and interest rates.  

To effectively do this, the government must take steps to incent the owners of small business to begin hiring again.   A small business is defined as a business that employs 499 or fewer people and reports its business income on a personal tax return.  This includes privately owned businesses, Sub-S corporations, LLC’s and partnerships.   Under the current proposals, people showing income of over $250,000 are going to face higher taxes, which are a disincentive to grow their business. 

Making matters worse is the uncertainty surrounding healthcare and the potential for a cap and trade tax, both of which leave small business sitting idly by with a “wait and see” attitude.   If one, or both, of these come to fruition it is quite likely that unemployment will rise by several percent as businesses shed workforce to avoid new government mandates.   Couple this with the need to shed federal employees from the current unsustainable levels and double digit unemployment could become the norm as has been the case in many western European nations.    

So with all the doom and gloom, where is the silver lining?   If Kicked to the Curb is supposed to provide the solutions, then what are they?   Innovation, creativity and thinking outside the box are the keys to moving beyond the current economic downturn.   As mentioned, in 1946 and 1983 we had deficits far worse than we face today.   In the years that followed the economy boomed.   This was largely due to the government recognizing the imminent dangers and changing course which will occur yet again. 

Tax cuts to small business owners will result in increased hiring, resulting in more tax revenue and less outlays for unemployment, Medicaid and food stamps.   Fixing what is actually broken in the healthcare system, such as tort reform and purchasing healthcare across state lines, will serve to lower costs for both employers and employees.    Recognizing that now is not the time to pass additional taxes, such as cap and trade, will further incent business to regain faith in the leadership in Washington, enabling the economy to get back on track.  

That said, some very valid points have been made about the necessity for sustainability and cleaner fuel sources, which are all readily available and should be brought to market by innovations in the private sector.   There are discussions about privatizing the space program, a potential boon for my fellow Floridians.   The opportunities to find success abound; it is up to you to seek them out.

As discussed in Kicked to the Curb, now is the time for greatness that will come about as individuals who have business savvy take to the streets create new ways to move our nation forward.  Just as we have done for over 200 years, self reliance and rugged individualism will allow us to take that next step forward to regain our stature in the world, provided we aren’t hamstrung by the political class in Washington.    

Chris Tidball is the author of Kicked to the Curb : 20 Essential Rules for Coming Out On Top When Your World Has Been Turned Upside Down.   He can be reached at chris@christidball.com.

How to Effectively Hunt White Elephants

As anyone in sales can attest, closing the deal without the decision maker is all but impossible.   Like virtually anything in life, it’s not what you know but rather who you know.   There is no substitute for picking up a phone and calling the CEO of the company you are trying to sell and having them not only pick up the phone, but agree to meet you for lunch to discuss the benefits of your products.   This can happen, but only when you understand what it takes to make this type of connection.  

While I am a fan of virtually every type of social networking, it will only get you so far.   Great sites such as Spoke, LinkedIn or Plaxo have a plethora of contacts but as you dig deeper these contacts often don’t include the highest levels of organizations.  Certainly tools such as Sales Genie or Manta can be helpful in identifying your target but are far from a guarantee that you’ll get in their door.  The key to meeting the “top dogs” is getting to the functions that they attend.  

To gain an understanding of this dynamic consider that the goal of the CEO is to move their company to the next level.  This is quite a different dynamic than is often found at lower organizational levels where protecting turf is often the mantra.   If you are selling a great product that can cut costs and increase efficiencies you will meet roadblocks at certain levels of many organizations.   Sure, you may get lip service and a promise to elevate the material to the next level but the reality is that the person on the other side of the desk has a family to feed as well and in reality views your great product as a threat to their existence.  

In order to garner the audience needed to make the sale, it is imperative to not only get to a decision maker, but to someone at a high enough level that the turf they are protecting doesn’t include headcount.   In my experience this is the CEO or CFO with very few exceptions.   These are the folks that want to make thing happen and want results now.  When one considers that a recent Forbes article showed a continuing decline in CEO tenure as boards become impatient for results, the desire for instant gratification is evident. 

So how does one  get to the “top dog”, especially in large organizations where hunting white elephants can be quite cumbersome?   Networking and contacts are the simplest ways to maneuver this difficult channel.   Professional associations and trade shows are two of the simplest ways to get yourself in front of your desired audience.   By focusing on the demographics of members and attendees of both you can gain a quick understanding of who may be beneficial to your position. 

These events provide a unique forum for interaction in that the decision makers are there voluntarily.  They are taking the initiative to network and will often engage in dialogue.   Unlike their workplace, they are less guarded and aren’t surrounded by gatekeepers.   They have placed themselves in an environment where they are approachable, and quite often amenable to new and innovative ideas.  

Certainly there is a cost associated with both associations and trade shows, but the cost is easily underwritten by new sales.   Additionally, the costs are something that not all businesses are willing to incur, especially during these economic times.   Leveraging these contacts in forums with little competition creates a great opportunity to maximize their profitability while giving you a jump start against to gain marketshare from those who are sitting on the sidelines waiting for the economy to turn.  

Chris Tidball is the Vice President of Business Development for Sequoia Financial Services and the author of Kicked to the Curb: 20 Rules for Coming Out On Top When Your Life Has Been Turned Upside Down.  He spent 20 years navigating the maze of management and executive opportunities at multiple Fortune 100 companies and can often be found speaking, presenting and selling at tradeshows for the insurance and healthcare industries.  To learn more about maximizing your bottom line with no new costs contact chris.tidball@sequoiafinancial.com.  

Eureka! Millions of Dollars Found in Accurate Claim Settlements

As a participant in a number of voice of the customer studies, deductible reimbursement comes up as a frequent topic of dissatisfaction among insured’s. This is particularly evident in claim scenarios involving turns, lane changes and parking lot accidents where intuitively it would seem that comparative fault would often apply.

Now Is The Time For Businesses To Seize The Moment

If the past year could be defined as an employment malaise, it would seem that 2010 is shaping up to be a defining year for the future of employment in our nation.   Over the past twelve months, America saw roughly three million jobs vanish, as the result of massive downsizing and outsourcing to cheaper markets overseas.   Now employers seem to be sitting idly by, awaiting the other foot to drop…yet they haven’t a clue what that other foot will be. 

As I discuss in Kicked to the Curb, now is the time to seize the moment which is what savvy businesses will do.  They realize that top flight talent can be acquired for pennies on the dollar, businesses can be purchased on the cheap and creative thought and ingenuity can open up entire new markets.   These types of cutting edge companies will define the workplace for the next generation.  

But there will be those who will let the uncertainty associated with everything from healthcare reform to the general direction of our nation keep them watching warily from the sidelines.  As things get worse before they get better, these types of “old school” companies will continue to reduce their size and lose their positions in the marketplace, hedging their bet that those taking risks will lose.  

This will not happen for the simple reason that the companies sitting idly by are the very companies that have had a blood letting of talent from their organizations in the name of “corporate right sizing”.   While this may appease shareholder fears, it actually has an adverse impact on the long term viability of these types of organizations.   In the most serious situations, such as the GM’s of the world, the government has gotten involved meaning that these types of companies will be hamstrung by vast amounts of bureaucracy and regulation that many prevent them from ever being successful again.  

So what does all this mean for the coming years?   My money is on innovation and the entrepreneurial spirit.   Many small companies will benefit at the expense of larger, out of touch companies.   Organizations that can turn on a dime will be able to endure and adapt unlike the Titanic’s of the business world who, of late, can seem to steer clear of economic icebergs.  

For the ten percent of Americans who are out of work or are underemployed, this is where to put your chips.   While on the surface, working for a small company or even starting one, the facts would seem to tell a different story. 

In a recent Business Week study, big companies were more likely than small companies to cut employment.   Using several examples from Kicked to the Curb, the very reason jobs are less secure in big companies are the economies of scale that simply mean no job is safe.   In smaller scale operations it may take employers months to hire, train and deploy someone of a needed competency. 

The other key component is sales expectations, which have been down across all size businesses.   Understanding that there are only two ways for a business to survive, by cutting costs or increasing sales, puts larger companies at a severe disadvantage for the simple reason that they are not nimble and tend to be reactive as a result of their bureaucratic scale.  

So what’s the outlook for 2010?   The economy will begin to rebound slowly and likely towards the end of the year.   Employers will watch warily for signs of increased government mandates, such as healthcare, which if passed could drive unemployment several points higher.   They will also watch the elections in November which will play a role in decisions made for 2011 and beyond.  

My suggestion to any business leader is to not sit idly by.   It’s a buyer’s market for employee talent and market share.   Buying opportunities for struggling businesses abound.   Those who capitalize on identifying opportunities and increasing their bottom lines in 2010 will likely reap huge rewards in the future.  

Chris Tidball is the author of Kicked to the Curb: 20 Rules For Coming Out On Top When Your World Has Been Turned Upside Down and can be reached at chris@christidball.com. 

Effectively Playing the Blame Game to Maximize Comparative Negligence Results

Why are claims organizations hamstrung by this concept? Why do they leave millions of dollars on the table annually? Nobody really knows the answer but the one consistency that I hear is that they need improvement.

Pay Me Now or Pay Me Later – The Dilemma for Maximizing Debt Collection

Who isn’t looking to make a quick buck in today’s tough economic times?   Whether it is the homeowner struggling to make the mortgage payment or the business looking to find new sources of revenue, the answer is everyone is looking for money. 

 Where there is money to be found there are debt collection agencies.   Herein lies the problem, as not all collection agencies are created equal.   In recent months there are have been a slew of issues arising out of agencies who operate outside of the scope of the law. 

 In multiple states, the Attorneys General have come down hard on collection agencies operating outside of the scope of the little understood FDCPA.  The Fair Debt Collection Practices Act (FDCPA), a federal law that applies to third-party debt collectors, prohibits certain behaviors by collection agents. 

In addition to the federal act, there are numerous state acts in addition to unfair business and practice regulations that govern when and how money can be pursued and collected.   Making matters worse is that some types of collections, such as insurance subrogation, are not included in the federal act BUT are governed in certain states.  

 Having spent a number of years in the management and executive ranks of multiple financial institutions I can attest to the lack of understanding of this type of governance.   Often it is assumed that business partners will operate within the parameters of the law which is why it comes as such a shock when a state oversight board or attorney comes knocking on the door. 

 As I discuss in an upcoming article in an industry trade publication, businesses that want to succeed in maximizing profitability have to stay above the fray being caused by the behaviors of some rogue agencies.  While there are many outstanding collection agencies who comply with the FDCPA, others have notoriously taken shortcuts in the name of cutting costs which is precisely how they are able to offer their business partners deep discounts on rates. 

 The adage pay me now or pay me later would seem to apply in these types of situations where the cheap rates are often the carrot used to get in the door.  But remember, if something is too good to be true, it probably is.  

Like many industries, collection is a trade and requires and element of skill to be successful.   Certainly there are those who will pay minimum wage or utilize unskilled labor overseas in an attempt to cut costs.  The question is just how effective will they be? 

 A simple analysis can be made using a large utility company who currently utilizes the services of three vendors.  The blended collection rate on these past due utility rates is 8%.   At first blush it would appear that the three agencies are doing a competent job of achieving their goals until the data is further examined.   Of the three agencies, the two with the “discount” rates are collecting at a rate of 4%, while the one agency being paid for quality results is at 18%.    Clearly a case of getting what you pay for. 

In today’s world of litigation and consumer advocacy companies can never be too careful about who they select as a business partner.   The cost of litigation, in particular class action lawsuits, will far outweigh any savings provided by vendors willing to cut corner or provide inferior collection processes.  

 To learn more about maximizing your bottom line, contact Chris Tidball at chris@christidball.com.

Is Anyone Immune To Job Losses?

As the unemployment rate continues in the double digits it seems that no sector of the economy is being spared.   Making matters worse is the uncertainty for prospective employers who face increasing mandates from the inevitable healthcare reform and the probable cap and trade tax.

From Wall Street to Main Street, employees with tenure are being let go in alarming numbers.   Often, this is some of the most seasoned talent, posing an even greater challenge to companies struggling to break even. 

For many impacted by an adverse turn in their career it is difficult to deal with the fact that your job is gone or that you may be next on the chopping block.   The worst thing to do is wallow in self pity, as this wasn’t personal but rather a business transaction with an adverse impact on your lifestyle.  

While not trying to minimize the impact that any job loss, or even potential job loss will have on individuals, it is critical to formulate a plan to minimize this impact.  

Networking will be the single biggest factor in regaining control of your life.   Even in good times, many professional positions are never advertised.   With employers cutting back, looking through the classifieds may be one of the worst ways to find a new job.  

Since the beginning of the recession nearly 9 million jobs have vanished and with employers realizing that they can do more with less it is highly unlikely that these jobs will ever return.   In addition, many companies are simply closing down, leaving ever more people out of work.   The kicker is that increasing mandates by the government for employers to provide healthcare will mean less traditional employment, with many opting to circumvent regulations with the use of independent contractors. 

The reality is that there are jobs available for talented individuals.  It may not be next door or even in the next state, but it is there.   In addition, with companies cutting back there are tremendous opportunities to provide them with services that will allow for the outsourcing of such functions as Human Resources,  Account Receivables or Debt Collection.  

Rest assured, there is a silver lining to the economic downturn in that is forcing Americans to become self reliant and to use ingenuity to come up with solutions to their problems.   In a culture that has become increasingly dependent on government, this is a very positive sign that the best days for America are yet to come, as this type of rugged individualism is precisely what is needed to compensate for the nanny state entitlement mentality.  

For those who have become a statistic, it is critical to network, network and do more networking.  Free resources such as Linked In, Facebook and Plaxo provide for great networking opportunities.   LinkedIn has actually become one of my top sales tools for generating new leads!  Join trade associations appropriate to your background.   Yes, they cost money but they provide invaluable opportunities to meet decision makers and get beyond the HR filtering process.   

The key is to keep a positive attitude and understand that amidst all of the doom and gloom in the media, there are many opportunities available.  Whether it’s a new job or your own business, the right plan is sure to put you on the road to success.

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Chris Tidball is a former Fortune 500 executive and author of Kicked to the Curb : 20 Rules For Coming Out On Top When Your World Has Been Turned Upside Down.   Learn more at www.christidball.com or contact him directly via email at chris@christidball.com.

The Hangover

While “The Hangover” may have been funny, the real hangover from the Great Recession of 2010 is taking its toll. Sequoia Financial, a leader in debt collection and subrogation has the remedy to make 2010 a very prosperous year.

Resolutions to Improve Your Bottom Line in 2010 With NO NEW MONEY NEEDED!

As 2010 approaches, it is time to sit down and make resolutions for the New Year.  Most certainly there will be the typical; losing weight, finding a mate, being a better person which will last for the average three weeks.   But what about making resolutions that you can stick to because they will have a big financial impact on your bottom line?  

Better yet, what about picking resolutions that are guaranteed to make you money without costing you any new money?   While this may sound too good to be true, the reality is that these simple resolutions are guaranteed to have a BIG impact on your bottom line. 

As the year comes to a close, both businesses and individuals will be busy closing out their books only to find that they are owed money.  According to government records, there is $35 BILLION in unclaimed funds owed to individuals.   You can search for your own personal goldmine at www.unclaimed.org.   Even more telling is the estimated $200 billion is owed to businesses and if unpaid judgments are factored in this figure rises to nearly $300 billion!

The reality is that along with unpaid bills, an astounding 80% of all judgments go unpaid, as well.  As an attorney friend put it; getting judgments is easy but collection is the true test of ability.  Don’t let that money lay around; make a resolution to work with an expert to track it down with NO NEW MONEY required on your part.

Another popular resolution this holiday season will be to find a job or make a career change.   If the news is any indication, good jobs will be very difficult to find.   While we are in an economic downturn, don’t let this get you down.  There are jobs that can be quite lucrative, they just aren’t being advertised with any great frequency.

In checking with contacts in various industries, it seems that the larger the company the fewer the jobs.  While on the surface this may seem counter intuitive, it actually does make a lot of sense when you consider that larger companies have greater economies of scale allowing them to work with existing resources.   Smaller companies, who are capitalized properly, are actually recognizing now as a great time to make strides towards gaining a competitive edge in the marketplace.   Often time’s smaller companies aren’t hamstrung by the same government regulations and mandates making additions to staff easier.   The downside is that these companies often lack the resources necessary to openly market available positions.  

By reaching out into the community or seeking resources designed to help you find new jobs you can get yourself on track for a very prosperous 2010.  

As we begin to close out 2009, keep an eye on the Finding Millions blog, or better yet become a subscriber and have free updates delivered right to your inbox.  There are many resolutions that we will be discussing including energy savings, staffing improvements, workflow enhancements and looking outside of the box for more ways to improve your bottom line with no new money required!

Chris Tidball is the author of Kicked to the Curb, a book that combines the spiritual journey of The Secret and The Power of Positive Thinking with the insight gained during his twenty years as an executive for multiple Fortune 100 companies.  Using his concepts, the author assists many individuals and businesses in finding new revenue streams in today’s difficult economic times.  For more information please visit www.christidball.com or email the author at chris@christidball.com.