Moments of Clarity

Cardinal Hatching Caught on Video

Having grown up in Southern California, unless we went to the mountains camping, our exposure to "nature" was pretty slim.  Well here in Iowa, we "foreigners" are still pretty amazed at things that may be common to Midwest natives.

I was using the hedge trimmer a few weeks ago and as I buzzed up in a straight line, I exposed a small bird nest with 3 eggs inside.  Thankfully I didn't disturb it.  As I examined the nest it became clear why I'd begun to see a male cardinal posting up on my car and in the trees around my house. Shortly afterwards a little Internet research made me realize that the female had also been nearby for a while.

We started watching the nest as its only about 4 feet off the ground and just outside our garage door.  A couple of days ago, my wife happened to be taking a few pictures...and noticed that one egg had hatched.  Then, as if on cue a few days later, she went to take another picture and actually caught the last of the eggs hatching! Wow.  We're still pretty stunned.  Happy to say so far that all three seem to be doubling in size daily and now have fuzz on them :)

Here's the video in case you can't see it below.

After a 60 degree day...3 inches of snow hurts

It felt like Spring yesterday.  We saw people we haven't seen in months doing "outside things".  There was visible skin from shorted legs and t-shirted arms.  The large piles of snow 4 feet tall at the end of the driveway were almost completely gone.  Grass was visible.

Then...

We had a quick storm come in and rain, then sleet, then lay down 3 inches of snow.  With the blowing winds and plows, it piled up to over a foot at the end of my driveway.  It took about an hour to remove it all by shovel.

Birds are chirping, squirrels are spotted, and trees have buds on them.  Hopefully that was the last of the snow for the season.  It's been a longer than usual winter and I'd like to start cutting the grass 2x per week again please (wait a minute..:)

I will get the streaming web cameras (new ones) up and running again this Spring to share the best time of year with you all.  Hopefully, it's just around the corner!

From Flyover to Tech Hotspot: How Global Warming Has Shifted the Where of Cool

Let's assume for a moment that global warming is happening on some scale, man-made or otherwise. 

**FOR IMMEDIATE FICTITIOUS RELEASE** February 15, 2008

Global warming today has been credited with making the Midwest "cool".    Now that the Western half of the U.S. and the Northeast are plagued with the inability to reliably produce electricity and severe drought...places like Iowa have become highly desirable.  An unnamed Iowa legislator said under the condition of anonymity that, "It's about time that global calamity worked in our favor.  I'm not sure if global warming is real or not...but for now, I'm loving it."

It's been almost a year now since Google (GOOG) announced that it was building a data center in Council Bluffs, Iowa.  Now we  find that Microsoft (MSFT) is getting close to deciding on an Iowa location for a similar data center operation. Local and state governing bodies are scrambling to put together incentive packages that sweeten the deal.  It seems that Iowa has become cool.  Or more accurately, Iowa is hot.

Iowa's Paris Hilton "hot" stems from its abundant water and ability to produce massive amounts of electricity.   "Look, we know that the public thinks that we're bending over for Microsoft, and we are," said a confidential city source.  "But look, we have rain, snow, and land free of aging hippies so we can build more electrical plants.  Those few key elements put us in a great position  to get on the news...and that's what we need to do.  Hi mom."

So it seems that for now, Global Warming has turned Iowa into the technology and biofuel capital of the world.  For these humble Midwesterners, used to news coverage only every 4 years, time are a changin'.  Now everyone seems to want a little piece of their globally warmed pie. 

**

Blogging can help you OWN a search term: Geographic Arbitrage

When you have passion for something, and blog about it, you just may author a definitive post defining that topic. 

Just recently, GOOGLE search results for "Geographic Arbitrage" have yielded me 1st and 6th place results.  The milestone that makes me most proud, is that I've surpassed the links from FORBES magazine, who's publisher...and author Rich Karlgaard, gave me the term in the first place in his book, Life2.0:  Finding the Where of Your Happiness. This book played a major part in my decision to execute geographic arbitrage in 2005.

In the last month, I've been linked to in various articles by some great writers.  This morning, I noticed traffic coming from this piece by uber author and blogger Anya Kamenetz

Her site and book are called Generation Debt

What's even more amazing to me is that I've been linked right next to author Tim Ferriss (The 4-Hour Work Week) one of my favorite works.  Ferriss is a big advocate of Geographic Arbitrage...or Taking a position of monetary power like cashing in a coastal house and moving to a more affordable area, working remotely with your larger coastal income while living somewhere inexpensive, or using currency differences to live like a king in foreign lands, etc.

Takeaway
Let this be an example to all business bloggers out there just getting started.  Are you ready to offer the world the defining post or two on a topic that you're passionate about?  Writing with regularity and passion may grant you "Pole Position"...and along with it, many more unique visitors, potential new customers, and implied authority that propel your business to its next level.

730 days in Iowa...Geographic Arbitrage Success

We've just eclipsed the 2 year mark here in this beautiful state.  During that time, I've been blessed with wonderful opportunities and met a fantastic group of people that have helped me shape the next chapter of my life. 

Executing my geographic arbitrage (moving from the high priced CA coast to the Midwest) has afforded me the option to explore what really matters, define what it takes to build a new infrastructure (both personally and professionally), and to dive into my "personal brand" and make some clear distinctions about it.

I cannot think of a better place than Des Moines, Iowa to live out the desire to have few hassles, no or low commute miles/minutes, no traffic, and just about everything a family could want to live and thrive. 

Thanks Iowa for a great first 2 years.

Energy Rage

I was recently in a group in which a majority lambasted Ethanol because:

1. It ruins the water supply
2. It's subsidized and that's not fair
3. It will ruin the land for the future
4. It pollutes

Interesting points.  However, the same arguments were used to vilify oil and gas companies (still going on of course).  Has the govt not subsidized oil production / refinery manufacturing through the years?  Haven't our own tax dollars been redistributed to a bazillion cockamamie things other than gaining a foothold on energy independence?  Yes.  There is economic realignment happening and yes...there will be some fallout.  Most radical change does this.  Are wind and solar the answer?  Will they happen over time? Yes.  Can they run our cars now? No.  Done.  Chavez bad. Ethanol good.

Next issue:  Nuclear Power. Here's a CNET piece on the looming comeback of Nuclear Energy.
How many people have been helped by Nuclear energy vs. those who've perished?  How many people wouldn't have died and had a more fruitful life and opportunity from this method of power generation?  There's new focus on what to do and how to effectively reuse the by-products of production (nuclear waste). The benefits outweigh the dangers.  Yes I'm OK with one in my back yard.  YIMBY.

Can you feel it?

The grass is lush...buoyed by warm days...and cooler moist nights to reduce stress.  A few leaves are falling here or there.  The air is rich with the smell of cut grass. People are talking quite a bit about "the heat we had this summer".  Windows are open again.  The lawn has been aerated and over seeded this year.  Plants seemed to have absolutely exploded with growth in the last 30 days.

You see..Fall is approaching in the Midwest, and folks around here are starting to think of cool nights, fires, football, and Thanksgiving plans.  Fall is a magical time around these parts.  Food seems to taste better and families seem to be "settled" earlier each night allowing for less hectic nights together playing games and practicing their weekly bible verse for pre-school. 

The summer is a magical time of long nights and hectic schedules...but fall is something you only read about...unless you live it...here in the beautiful state of Iowa.

   

Verizon Expands EVDO (fast) Wireless Data Network Across Iowa

Here's the article.  I use it.  It's fast and good.  Verizon has had EVDO up and running here in the Des Moines metro for gosh...maybe a year now??? But now it's going to be available more widely.

A Journey Back to the Heartland

I was contacted yesterday by someone from the Orange County Register News Paper, my paper of choice when living on the Left Coast.  Apparently I have a blog reader out there that found me and thought I'd be interested in this feature by Tom Berg called, "A Ride Back In Time to the Corn Fields".

The tale begins with Paul O'Brian, a Seal Beach, CA resident and successful designer trying to ready a 1935 Ford pickup for its trip back to Grand Mound, Iowa.  O'Brian's trek to the heartland is just something he had to do to reconnect with his father's legacy of values and work ethic.  Life sure wasn't easy back then, but the elder O'Brian set Paul on the right track with a steady dose of agrarian practicality and appreciation for what's important in life.

If you have family roots in agriculture, you'll surely appreciate this story.  If you don't, it will make you wish you did. 

Enjoy.  Thanks for finding an expat OC'er living the dream in Iowa.

Please welcome a new blogger to the family

After a lengthy diatribe over a cup of Sumatra...my friend and Des Moines area real estate investment guru Nigel Chapman has launched a Des Moines area real estate centric blog.  In this market, we really need this kind of information and commentary.
Please check it out here.

Like most converts...Nigel just needed to see what business blogging was really all about before committing.  I recited many "Mike Sansone'isms" and referred him to some key posts to brush up on tactics. 

A quick learner, Nigel has deployed his blog, used widgets, and has started contributing to the community by sharing his brain.

If you need real estate assistance as a buyer, seller, or investor, I highly recommend Nigel.  Please check out his blog and get to know him.  He's committed to the next summit in Sept.

Camera #2 is now: "The Iowa Gold Finch Feeder Camera"

Click on the link to my streaming web cams.  One of them is now trained on a finch feeder in the backyard.  We're getting lots of traffic on these now with beautiful birds.

Enjoy.

Top 10 Things I Heard From Barack Obama at the Iowa State Fair Today

The top 10 things I overheard when I passed by Barack Obama at the Iowa State Fair today.

10.  "My God I'm thin"
9. "I just ate whaaaaaatttttt?"
8.  "Hey...You know I'm gonna raise your taxes right?.......Awwwweeee I'm just messin' with ya."
7.  "Did HOGZILLA swallow a couple of Wilson footballs or what?"
6. (To the secret service agents with him).."pssst..do you know if they have any salads here?"
5. (To his handler/campaign manager) "Sooooo like...did Hillary eat pork chop on a stick cuz I don't want to appear less manly than that woman?"
4. "It's sooooooo awesome...check it out.....an Iowa Hawkeye temporary tattoo!"
3. "Explain to me again why there's a cow and a Harry Potter made out of butter again."
2. (To secret service)..."Guys...GUYS...take it easy on the corn dogs it's not like I have Hillary's war chest."

...and the number one thing I overheard Barack Obama say at the Iowa State Fair today from the home office in Des Moines Iowa...

1. "I vow to banish all trans fats from the Iowa State Fair...but there will be a deep fried Twinkie Exemption even if I have to do it by secret executive order and torture people to make it happen!"

(cue the music)

bonus overheard nugget" "Chief Justice Roberts? Sheesh..yeah I could take him"

Central Iowa Golf Is Hurting: Here's Why & What To Do

Background
There was a sports front page article in the Des Moines Register yesterday highlighting the current tenuous state of Central Iowa golf courses.  Courses are experiencing flat or declining revenues, declining attendance, and price pressure. The piece provides a few reasons for the tough times.

1. Fixed costs have increased including wages and petroleum based fertilizers, etc.
2. High property taxes hurt courses because they're taxed as commercial property vs. recreational.
3. Municipal courses (owned by cities, i.e. subsidized by having less tax burden) green fees are low and getting lower to keep the crowds coming.  Private courses don't have the luxury of operating this way.  Sound familiar?
4. The high cost of gas to get to the course in the first place.
5. The war in Iraq.
6. More parents are "Dedicating themselves to their kids," by spending a day at the soccer or softball field.
7. Legalized gambling.
8. Too much supply.  Too many courses.  Aggressive overbuilding of "hole inventory".  Courses and developers have been using the 1990's website rule for business decision making, "Build it and they will come". 

Analysis
I believe that numbers 1-7 are somewhat true but not enough to make the measurable impact the industry is feeling. 

Number 8 is a BIG factor. The bottom line is that there are virtually limitless choices for golfers at all typical golf price points within typical driving distance around the metro.  In fact, the number of available holes for golfers within a 20-mile radius of Des Moines grew by 30% in the last decade.

The factor that is not mentioned, discussed, nor implied is the purple elephant in the room.  It's the largest single factor that impedes growth and repeat business. 

Golf courses make almost no effort whatsoever to market themselves, create brand identity, or create an experience for golfers that is ANY different than other courses in their competitive landscape.  Golf courses leave the entire branding function to the courses beauty and layout itself.

I have only golfed at about 10 courses since I've moved to Iowa.   One has asked for my email address.  None have created any experience or purveyed a brand.  If I asked you to name a brand of coffee that has created an experience and maintained a premium price for something that costs almost nothing to make...you could name at least one immediately. I should be able to do the same for Iowa golf courses...without having to resort to the $300+ per round facilities.

Recommendations
Golf courses need to get past the helpless, brand-less, malaise they're in now.  They need an injection of creative marketing (beyond the logo golf ball) and branding so their courses are synonymous with the kind of experience that creates raving evangelists that want to grow your business for you.  This is especially true when there is NO stand out, no leader, and a "that's just the way it is" attitude out there.   

1. Engage in meaningful email marketing.  Segment your audience and target them with offers that make sense.
2. Host customer appreciation days at the club house.
3. Leverage "course greeter liaisons" a la Walmart to welcome players and build the experience. 
4. Invite families to play together and space tee times to allow for slower play. Think Disney.
5. Blog.  I would absolutely subscribe to a blog written by a golf course that gave me offers, course condition updates, and opinions.  Extend the conversation beyond the 19th hole. 
6. Leverage SMS marketing (text message).  Would I choose a course that used my exact marketing preferences and sent me offers at key times just for me?  Yes.  I know many others that agree with me.
7. Develop unique factors that separate you from the competition.  I'm still looking for "self serve honor system for non-alcoholic beverages" at key points around the course.  I'm also looking for the "buy drinks from the cart on a tab that I can settle after the round".  This speeds up play and frees people up to spend more.  I promise it works.  Just about every course out there believes that price is the key in the buying decision.  Honestly, I've never asked once how much the round would cost in advance of stepping up to pay in Iowa.  Generally, we know that it's going to be between $30-$50 to ride for 18 during prime time.  A few bucks does not the decision make.

There are plenty more options for courses to engage in that would separate themselves from the crowd. But like many businesses, golf courses don't hire marketing/branding employees or leverage agencies or consultancies...rather they put these responsibilities on the course manager or owner.  While this man or woman may be excellent at running a golf course, they probably don't have the time or inclination to move beyond "coupons in the paper".

Courses must shift their mindsets and become competitive and agile.  They must develop a road map to uniquely separate themselves from the over supply in the market.  Remember, there are plenty of places to get coffee...but only a few that create an experience.  It's up to you.

Are you ready for help golf course owner/manager?



   

Kotkin on the Burbs...Data Shows Continued Strength

The first paragraph of Joel Kotkin's piece appearing in Money Magazine's "Best Places To Live" edition paints an incredibly accurate picture of the erudite downtownistas:

An increasingly trendy theory holds that the ticket to attracting and retaining the educated and upwardly mobile is a big dose of urban cool: Think open-air cafés where well-heeled retired boomers and twentysomething professionals gather after the theater to sip Pinot Grigio while looking out at a skyline defined by the latest creation of a world-renowned starchitect.

Excellent description.  In the case of the Des Moines metro, I'd slide in a reference to, "...and eating some kind of exclusive private label pork product." 

With the umpteen "Flats, Brownstones, and Loft" projects underway in downtown Des Moines, one would think that a massive trend is underway to move into the heart of the city where apparently no one actually makes coffee at home or buys wine by the bottle at Costco (Costco is located in the suburb of West Des Moines and is the only Costco in the state of Iowa).  However as Kotkin and the Praxis Strategy Group research points out, the data simply does not support the validity of this trend.

Suburbs and areas outside of the "Hip urban core" as Kotkin describes it, consistently demonstrate higher growth numbers and are delivering on the promise of a homey feeling more so than their "industrial downtown domiciles".  Kotkin cites a Temple University study that indicates, "Nearby suburbanites were considerably more likely than city dwellers to see their neighborhood as "home."

I don't believe that the downtown loft craze is a bad one.  Des Moines struggles with its identity.  It wants to be hip and cool so that its recent college grads from many fine Iowa institutions stay here instead of bailing out for the coasts, Chicago, Minneapolis, etc.  This urbanite form of living may help bridge that gap for the 22-28 post college demographic.  However, when those men and women begin to settle down and have a few babies, they'll begin to sprint for the suburbs where we watch our children ride bikes and electronic John Deere tractors while mom and dad chat with neighbors and sip inexpensive Shiraz.  The data as well as my gut both bear this out.  The Des Moines register often profiles people that have made the downtown leap...and they're always either retired (or close to it) or attractive twenty-somethings.  When I read about a family of 5 doing this, I'll modify this post.

So if I was a betting man, I'd go long on the positive mojo provided by the glut of urban development in Des Moines.  The recent Fast Company article that touted Des Moines as a "City on the Verge" of becoming a tech boomtown, also indicates that the metro may be on the verge of retaining the younger set as employees of hip tech companies.  (My comments on that article will appear in the magazine next month I believe)

But what happens if the tech companies plant their offices in the burbs because of tax breaks and other back office niceties? (Very likely and far more practical) Will the youth choose a 15-20 minute commute (about the longest commute possibly in God's gift to mankind, Des Moines) from their downtown  "above the coffee shop" loft?  Or will they buy a nice 3 bed room home with a mortgage payment that's less than rent...and use their savings for a Costco membership?  Come on in folks...the burbs and the inexpensive wine are just fine! 

The Buzz In Iowa

Here are a few great items I came across that I think you'll find interesting.

1.  Urbandale, the city next door to me, was named th 39th "Best Place to Live" by Money Magazine. 

2.  The Mid-American Wine Competition just wrapped up, and plenty of Iowa wines took home honors.  There are many parallels between my CA and IA lives...and I never imagined that plentiful viticulture would be one of them.

3.  A Rhode Island company is considering Newton, IA (35 minutes east of my home and the great home of the Iowa Speedway), for a Wind Turbine plant that could employ over 700 people!  Good luck Newton, after Maytag bailed it's looking a bit bleak over there (except for race weekends).  Here are some quick and very cool facts as reported by the DSM Register.

Iowa is the third-largest producer of wind power in the United States, behind Texas and California, and the 10th-windiest state in the nation, according to the American Wind Energy Association.

In the wind industry, the upper Midwest is often called "the Saudi Arabia of wind," comparing the Midwest's wind energy potential to the Arab country's richness in oil, Loyd said.

4.  An article titled, "The High Cost of Wooing Google" showed up in Business Week too.  I've written about this a few times and will continue.  The bottom line is that the company that doesn't want to do evil is leveraging the heck out of desperate "less urban" areas for a pittance of tax revenues.  I believe these towns are doing what they can to survive and certainly crave the allure of the GOOG.  Then again, GOOG is doing what it's supposed to also...spending as little as possible to maximize profit.   

Iowa is truly an amazing place.  I would have NEVER imagined the breadth of activities or how cool agri-business really is.  We're fueling the food engine of the world here in the Midwest...and now we're fueling your Escalade too. 

Struggling! (Marketplace at Jordan Creek per the Front Page of the Business Section Today

I've done my quick case study on the Marketplace at Jordan Creek (MAJC).  I've also highlighted another friends experience where "neutral service is negative".  Now today the front page of the Business section in the Des Moines Register has the following headline:

"Specialty Grocery Struggles in W.D.M."

(W.D.M. is West Des Moines non-Iowans).

The article paints a pretty bleak picture of the market's prospects and does well to prop up its competition.  (Which by the way has gotten pretty good marks from my ad hoc surveys of customer service experiences).

I still believe that the bottom line is this:
In retail, especially high priced retail (aka Starbucks)...experience is everything.  Create the environment that brings folks back over and over again, because single visits do not a successful market make.  It's repeat high average ticket sales that win the game my friends.

I'm still offering to recruit a cadre of black aproned customer service agents to make this a place that people rave about.  Shall I shine the signal light in the sky?  Is the MAJC listening to the blogosphere? 

A Promise Called Iowa (on IPTV)

All I can say is wow.  I put the kids to bed last night and decided to watch TV for an hour and accidentally came across, "A Promise Called Iowa".  (The link gets to you to the home page for the program and includes video clips, etc..).

I sat there mesmerized by Iowa's ex-governor Robert Ray as he help unfold the story of Iowa's lead role in stepping up to take refugees in the post-Vietnam war era.  Of most interest was the acceptance of an entire community of refugees at one time, the Tai Dam, that took a special exemption from President Ford. 

Maybe every Iowan walking around already knows tales of this era...but as a transplant I was completely ignorant. 

I'd highly recommend that you seek out and watch this program.  If I read things properly on the website, I believe it's on again June 21st, at 7PM.  It's an invigorating and humbling experience. 

I am a proud Iowan.

Giving Away the Collective Iowa "Farm" for the Google Server Farm

There's a googolplex of reasons why the state of Iowa is gushing over a new Googleplex being built within its borders. There are about 100 articles/posts hitting the wires every hour about it.  Here's a post at InfoWorld on it.

But has anyone done the math on this project with the tax credits, sales tax exemptions, and alleged jobs this facility will produce?  Does Google (NASDAQ:GOOG) have so much "star power" that legislators are willing to sell their souls to the "do no evil" Googolopoly?  I wonder if some GAAP accounting applied properly would yield that the cost to operate and build this facility is net zero for the next 20 years...just in time for an exit? 

I'm going to head out to Council Bluffs and do some investigative reporting a la Stone Phillips to get real resident reactions, etc. 

Are you nervous about Google and their continuing global domination...or are you concerned with them terraforming (or Googleforming) another colony here in the heartland?  Or are you just happy to have your city in the paper in a positive way?  More reports from the field to come.

Iowa Has Been Googled

I've been reading teasers about this for months, but it was announced today that Google (NASDAQ: GOOG) is going to build a server farm in Council Bluffs, Iowa...just across the Missouri River from Omaha. Now there's something more cool than "The starting city of last year's RAGBRAI" to talk about)  (Forbes Article Here). This is a massive boon to Council Bluffs I'm sure and pretty cool for the state in general.

The bottom line is that GOOG is concerned about power and the consistent delivery thereof.  MidAmerican Energy Co.     (other-otc:       MDPWL.PK  (Thank you Mr. Buffett) just spent $1.2 billion upgrading their systems, etc. 

Bring on the anti-GOOG crowd now to discuss conspiracy, corporate welfare, and invasion of privacy, etc.

When Birds Attack

I've been laughing recently when I see some kind of black "migratory birds" attacking people as they walk by a nest on city streets highlighted on TV.

Until yesterday....

On my way back from Adel via bike on the Raccoon River Trail, out of nowhere, one of these black birds started chirping at me as I rode along at about 15MPH.  Funny thing was, the chirping became screaming and it was getting closer.  I looked back and immediately had the adrenaline surge and the "flight instinct" when this savage beast was inches from my head.  I waved my arm (one still on the handlebars) and started screaming profanities.

I'm guessing I accelerated to 25mph at full clip before my Hitchcock moment past...but for a moment...I felt quite a bit of peril.

It must have looked interesting to passers by to see me seizuring with absolutely nothing around me but open space and blue skies. 

Spring's Jungle Canopy

Our back yard with its 10 mature trees is finally in full jungle bloom.  All of the rain we've had (a lot) has soaked everything.  Now it's heating up and the greenery is literally exploding.  I thought I'd gotten off this year regarding allergies...but they were simply delayed. 

This year like last, we're having trouble getting into the house by 9PM and the taste of Mexican beers with lime are not helping my daily caloric intake.

I'm looking forward to the 15 step commute from the patio to the office in a while and wish all of my ex-commuting buddies well.

All hail the Midwest.

Spring Has Sprung

Ahhh Spring in Iowa.  It's about good wine, a fat Amana Porterhouse grilled to perfection, followed up with an excellent cigar.  Spring has an intoxicating affect on people I'm noticing...myself included.  Our kids are burning off months of energy stores and we're finding it difficult to even bring ourselves inside the house before 8PM.  (It wasn't that long ago that 5PM felt like "wind down time").  We're eating outside every day, having Bohemia Mexican beer with lime constantly, and opening more fruity white wines.   I've begun cooking the entire meal on the bbq including foil wrapped veggies and potatoes done on a cast iron skillet right on the grill.  (We actually never stop grilling through the winter but the spring volume increases dramatically.)

This Spring buzz is even more noticeable this year since winter gave us a parting shot that lasted until just a week or so ago.  By this time last year, the trees were full of leaves and I was cutting grass with regularity.  We're just now seeing buds open up to leaves on the trees.  The last deep freeze apparently didn't kill everything...it just delayed things a bit.

This weekend is the first race of the 2007 season at Iowa Speedway and it's supposed to be in the 80's!  I"m chomping at the bit to hit my Newton Club seats and relax to the smell of hot dogs, cold beer,  and race gas exhaust. 

Vrooom vrooom

Everything's Turning Green In Iowa

On Sunday, Iowa's own Zach Johnson won The Masters.  The entire state is buzzed with excitement and the newspaper plastered the news on the front page: IOWAN WINS MASTERS! 

If any of you have seen Zach Johnson give his interviews or discuss his history, his humble, God fearing, Midwestern roots come shining through.  Even in his moment of glory...the first words he shared with the TV announcers paid homage to his family and to his savior on Easter Sunday. 

Zach Johnson exemplifies traditional Midwest values.  He didn't attend the University of Iowa, become a golf star, and make his way easily onto the tour.  Johnson played for Drake, a small liberal arts college in downtown Des Moines. 

(I really wanted to buy that plot of land to plant my crops but someone got to it first.  I'll go ahead and make the best of this plot just outside of town and with a little extra work, we'll be just fine.)

Zach was only the 2nd or 3rd best on the Drake golf team from everyone's recollection...however anyone interviewed today adds the footnote that Zach, "Made up for whatever skills or polish he lacked with hard work and determination.

(My tractor is a bit rusted and I'm not the best farmer in the state, but I'll work from dawn 'til dusk to ensure our success)

Zach climbed his way through the minor league tour, got his shot, has stuck to his guns, and has now reaped golf's most glorious prize.  When he reached the pinnacle, he gave thanks to those who'd gotten him there and humbly accepted the green jacket.

I'm proud to be an Iowan.

Forbes 4th

Des Moines has been named the 4th most desirable place to work and do business in the U.S. by Forbes. We surged 7 spots from last year I guess.  What changed I wonder?  I bet upward income growth and increased cultural opportunities did it.

The magazine looked at business and living costs, job and income growth, worker education and quality of life issues, such as crime and cultural opportunities.

It's number one in my book.  Thanks Des Moines and to all you've given my family.

March is Fickle in Iowa

I woke this morning, the first annual BlogBQ day, to find that snow had fallen...and is continuing to fall lightly.  It's only 32 degrees so it won't be around long.  March seems to be a very mixed bag in Iowa.  As I recall last year, it was 78 on a Tuesday, lightly snowed on a Wednesday, then Thursday was back into the high 70's.

We're on for today and can't wait to enjoy some fellowship with friends and the blogging community. 

What do Algae & Venture Capital Have In Common

They're both very GREEN.  This simple graphic shows the total VC investments in US based companies in 2006 alone.  The NYTIMES article is here.

Shall we keep discussing the price of corn or develop fundable technologies and ideas and capture some of the billions?

Biofuel Funding Continues to Impress...IF...You Don't Pay Attention to the News

I have about 10 blog/news searches automated in my blog reader covering renewable fuels (especially ethanol).  Daily, I'm deluged with articles from around the U.S. concerning the future of the food supply, the lack of available land, the high price of corn, kids starving in Mexico, and the scientific reasons why ethanol and bio diesel are totally inefficient. 

Yet, the industry keeps forging ahead and innovating buoyed by $1.28 billion (with a b) in venture capital investment in 2006 alone.  Cellulosic technology, (making ethanol from anything organic vs. just corn by using enzymes to break down the really tough stuff) is getting funded with BIG dollars now and it's happening right here in Iowa.

In fact the Department of Energy just dump a few hundred million around the US into the technology.  It's also obvious now that some of our friends in other states have figured out that cellulosic ethanol production is good business too.

This is a BIG ISSUE that has BIG IMPLICATIONS for a BIG SEGMENT of the population that costs BIG DOLLAR$ and involves BIG BUSINESS and BIG GOVERNMENT.  However, this big issue's  power is that it transcends the news!  Can you feel that?  No matter what the cadre of news pundits keep spewing,  the cash keeps arriving  as if a John Deere wheel loader kept filling a CAT dump truck scheduling drop offs by the hour.  "$34 million today, where do you want it?" says the operator.  "Just dump it on top of the pile of pundits that got it wrong."

Ethanol and renewable fuels in general have become a reality and it's up to Iowa to maintain leadership in the segment.  Pay no mind to the nay saying punditry (they probably live in LA or NY anyway).  If we do not seize this opportunity, it shall be recorded in history as a FOLD by the state at the world poker table that was holding FOUR ACES.

 

Theory of Geographic Relativity

Every county in Iowa has been declared a federal disaster area.  The weather hasn't treated us too poorly since we only had a 3 hour power outage on Sunday evening.  But this entire situation reminds me what it was like in Southern California when LA would have a earthquake or fire and I'd get the calls, "Are you OK?" Of course I am, that's 50 miles away and if I didn't read about it on line, I'd have not known it was happening.

Same goes for what's happening in Iowa right now.  Apparently there are 4 foot snow drifts in Western Iowa and the there are some folks stranded on I-80 and the National Guard has been dispatched to retrieve them...all while I sit and watch the very wet but light snow fall and melt on the street outside my office window. 

It's all relative.  Godspeed to the folks who are suffering and in need of assistance.  For now, Central Iowa is doing OK.

If Charles Ingalls Had Venture Funding (or How America's Heartland Is HOT)

Joel Kotkin, internationally recognized author on global economic, political, and social trends, has written yet another fantastic piece called Little Start-up on the Prairie.  Maybe it's that we in the Midwest are just jazzed when someone notices us or that our geometric shape stood out when flying over it, but the bottom line is that our humble agrarian rooted section of the country houses much of the greatest economic growth potential for the future.  Kotkin's tale begins in Aurora, Nebraska, a town of 4500.  Kotkin states quite simply that,

"Aurora and other places in the American Heartland will provide a critical outlet for the restless energies and entrepreneurial passions of its people. In some senses, such a trend represents a reprise of the region’s role in the evolution of the country and the shaping of its national identity."

In fact, since folks are realizing that on-shoring and in-sourcing are not only economically feasible, but highly desirable, the problems shift from lack of affordable housing...to a lack of any available housing at any price and a dearth of workers. 

Kotkin goes on to mention Iowa and specifically Des Moines many times in the piece highlighting that,

"In virtually every measurement, students in key rural states—particularly the Dakotas, Iowa, Nebraska and Kansas—tend to perform better than those in more urbanized ones, as measured by graduation rates, college attendance and enrollment in high-level science and education programs."

The key take aways for me are:

1. Be bullish on the Midwest (and specifically Des Moines) economies. 
2. Iowa has a massive amount of talent and future skilled workers from a robust and respected University system so we must cultivate that talent.
3. We must impart upon these young minds that the best for them does not lie 6 hours away to the north and east.  Rather, it lies here.   There are great reasons to visit other places but even more reasons to build a life here.
4. The opportunity to be a bigger fish in a smaller pond can accelerate your path to success.  I've lived that coming from Riverside, CA where I was but a simple GPS coordinate on a suburb that extended 250 miles in any direction. 
5. The talent pool here is immense.  It seems every day that I meet someone new that teaches me something. 
6. The people here are different.  There's something deeply rooted in much of the Midwestern population, but it's subtle.  It's a pleasant, hard working, almost zen-like kindness that's exuded since years have not been spent strengthening a "coastal exoskeleton."
7. Buy as many houses and high rise condos as you can.  We will be successful in our quest to convince the next generation (is it Z now?) that staying can be profitable and cool, and someone will need to rent to these people as they flow through the more natural progression of home ownership. The life path of a twenty-something is so very skewed in the large metros where someone graduates college and is faced with the prospect of a $600k starter home 1.5 hours from their job.  We can help break the cycle of thinking that this is acceptable by providing a wonderfully fulfilling alternative.
8. The ethos does exist that, "If I can't make it on the coasts, I'm a loser compared to my peers that can".  This type of thinking is outdated.  In fact, if making it means spending 5x on housing and generating debt, then yes, you're a loser.  I'll take the label and remain more economically viable.
9. Renewable energy is perhaps the most clear example of the power of the Midwest economy.  Daily, I read economists and social commentators (I almost used "Socialists") that bemoan the continuing process of discovery and innovation in this area.  "We're starving kids in Mexico" and "we'll never have enough land or corn" are the battle cries.  Thankfully, few have listened and the process of harnessing the true power of the earth goes on.  If we put the brakes on or take one step back in this area, we'll simply hand over the power to those who never stopped believing.  Recently, Iowa State lost a $500 million funding opportunity in renewable energy to UC Berkeley and U of I (Champaign-Urbana).  Maybe we need a journeyman-actor-Governor to lead our charge?  Who would you pick?  I'd pick Brandon Routh since Tom Arnold would have a tough time using complete sentences.

Of course when I executed my geographic arbitrage from CA to IA, I really didn't appreciate what I was doing.   I knew that I loved what I'd seen and I was drunk with joy over housing prices.  It turns out that I'm smack dab in the middle of Ethanol Alley and the heart...of the heartland Renaissance.  Michael Landon would be proud.

Farms vs. NYC Lofts...and the winner is?

Farmland.  Congratulations Iowa, farmland pricing is going up faster than condos in Manhattan.  Just close your eyes and accept that without thinking too much and then read the Bloomberg article.  It's fascinating and cool.

RAGBRAI Confirmed!

  My buddy Luke Manohan just called me and said "I'm in for RAGBRAI".  Actually, he's in for the last few days since he'll just be getting done with a ride ACROSS THE UNITED STATES and can't get here in time to do the whole thing.  Yikes!  Have you ever conceived of riding from say Oregon to Boston?  Want to?  Who'd a thunk there was a way to see America By Bike.  In September, he'll be doing the Oregon to Newport Beach, CA ride so I may find an excuse to visit my former stomping grounds for the last few hundred miles of that. 

I'm in the market for a road bike now too since last year's Mountain Bike adventure nearly killed me.  Granted I have a killer Mt. Bike, it's a very light Trek w/disc brakes and such...but at the end of the day, the riding position and lack of efficiency really got me. (Lack of training was no factor :).  I didn't get any flats...that's for sure.  I did elicit quite a few, "Dude...you're riding a mountain bike on RAGBRAI...woahhhhh".  That made me nervous.  It was not until my left hand was numb for about 4 months that I appreciated their banter.

This year I'm going for the motor home or "chase vehicle" approach.  No more tent crap here.  Last year we ended our trek in Waukee, IA (near my home) and drove to the house about 16 seconds before the sky opened and put on a lightning show that forced all participants into shelters.  I felt as good then as I do when say every flight is canceled except mine...and oh the upgrade came through Mr. Mitchell, Mimosa and a hot towel?...and all we have left today are convertibles and its 72 and breezy.

So, if you're interested in running the last few days of RAGBRAI this year and God willing I get a vehicle pass of my own, and you want to join up, let me know.  This year is supposed to be the flattest on record and that's fine by me. 

Can anyone recommend a stationary bike trainer?  Bike World has a few that look good and I think magnetic is the highest end choice...but I'd love to hear an opinion on what made you happy. 

This is where Iowa's focus should be

A new company was just formed called Prairie Gold, Inc.  The express purpose of this company is for profit marketing of ethanol co-product processes and production. (Article here on the Domestic Fuel Blog)

My continuing message here is that this is the area where Iowa must focus if it wants to lead the nation in bio/renewable fuel and alternative energy.  Promoting and assisting companies with ancillary technologies and processes would solidify our spot at the top of the food chain.  Taking a proactive stance in this area, say by establishing a $100 million venture fund for these types of businesses, is critical to not losing momentum.  Ethanol will be produced everywhere and with many raw materials in 20 years and this is not exciting.  What is exciting is extracting more efficiency out of the process, creating new co-products from production (think duraflame logs from left over saw dust), and pioneering new logistics modes and systems that will squeeze yet more value from every gallon produced.

Iowa Population Growth

Data released by the U.S. Census Bureau released just before the holidays points out that Iowa may have turned the corner in terms of population loss.  In fact, we may be poised for growth.  Article here in the Des Moines Register.

It was only months ago when the same data showed that Iowa was facing a people drought. I posted my opinion disagreeing with this assumption. 

Now we have data that shows we're in a possible up tick for all of the right reasons that add to the:  Why Iowa? equation

1. Quality of Life gains
2. Insurance, banking, high tech jobs gain
3. Security concerns (Midwest doesn't appear to be high on Islamofacist radar...yet)
4. Biofuel revolution and creation of Ethanol Alley

My main takeaway is to rarely accept the buzz report of the day, especially on things that "Fly in the face of what your gut is telling you".  You can "feel" that Iowa is becoming a more attractive place to live for more people for all of the right reasons.  I'm very pleased that we've picked Iowa as our home.   

Why Iowa? From a CA expat

I thought I'd chime in this topic that was floated a while ago.  I'm not sure who started it...but here's my two blog-cents.  Why Iowa?

1. Agrarian roots seem to give Iowans even long removed from farming a warmth that says, "I've got a pot of coffee on and something in the oven...come in and sit a spell"
2. Neighborhoods still have "marauding bands of kids of various ages" being kids, sometimes doing bad stuff, but mostly just being curious kids.
3. There are few walls and fences.  Neighbors talk, see each other, and interact more.  We did not have this in our former home...and we relish it now.
4. Quality of life.  This is a broad generalization...but the ability to "Pretty much do what you want when you want without having to plan too far ahead" is my definition.  Getting in the car at 5PM and heading into the heart of downtown Des Moines is no problem.  Getting into the car and just getting onto the freeway was a problem where I was from.  I routinely don't remember the last time I got gas, and my wife has halved her petrol usage while doing whatever she pleases.  Everything is just close.
5. Connectivity to a thriving business community.  I have met more people in the greater Des Moines business community in the last 6 months than I met in all of my career in CA.  From top business leaders to venture capitalists...from business blog coaches to branding experts...from renewable fuel experts to ..you get the idea.  If I'm looking to open the door to something, I've got multiple folks lined up with keys and looking to assist me. I hope I can give more back than I've taken.
   
6. Housing.  One can easily procure a 3br, 2ba, 2car garage type home in a very nice neighborhood for $150k.  Additionally, one can find a $80k 2br home and a $500k 5br home.  All of these places could be within the same general area.  At the end of the day the "normal" American progression from starter home...to family home...to big dream home...and everything in between is obtainable. 
7. Weather. I know, coming from CA the cold has gotten to me a little and frozen a few brain cells!  The bottom line is that I enjoy the differences in weather, the rain, the snow (we've only had 1 inch this year so far), and the seasons.  I've written before that weather is such a small part of normal life when you're busy with the family that it really doesn't matter as long as you can do what you want to.  I enjoy sitting around a fire on a cold night as much as I do around a patio table on warm summer evenings.  Also, if you do your own yard work (as I do now), you have a full 3 month reprieve from doing anything!  It's not as cold and snowy here as up north in Wisconsin...and not as temperate as Kansas City.  I think it's just right.

We chose Iowa about a year ago...and it has most certainly chosen to embrace us, welcome us, warm us, and provide us with new friends and opportunities that we never dreamed of.  It's our turn to give back and we're going to make that a priority in 2007 and beyond.

Thank you Iowa...and that's why.

Sage Prediction for Cleantech by Kleiner Perkins

Paul Kedrosky at Infectious Greed posted some great quotes from the prolific VC firm Kleiner Perkins. Most amazing and encouraging to me is line item number 3.  I write about renewable energy/ethanol quite often...thus I'm very encouraged by Ray Lane's prediction.  Bigger than the Internet!  Yes .  It should be...it will be.

Here they are:

The Internet:
John Doerr (1997-2000): "The Internet is the largest legal creation of wealth in the history of the planet."

Mobile
John Doerr (2005): "[The cell phone boom will be] ultimately be more important and will likely offer a larger wave of investment opportunity than the personal computer."

Cleantech
Ray Lane (2006): "This is bigger than the Internet, I think by an order of magnitude. Maybe two. I'm taking the entire energy industry."

Weather realignment

I've anecdotally noticed a few trends over the last few years and a USA Today piece today confirms some of my observations.

• Wet California winters with record rain, blazing summers, wildfires.
• Excessively wet Northwest, adding to their already gloomy weather reputation.
• Milder Midwest, a few snows a year, milder temps, about the same wild weather in Spring/Summer.
• Northeast, pounded w/rain, flooding.

Today in Iowa we're having a wonderfully clear 60 degree day (my kind of perfect).  It's been near freezing at night in Florida and it was 95 degrees on Monday in Riverside, CA. 

So I'm not sure what this all means except that whatever is happening, it's making the Midwest look a bit better and probably boosting our statistical likability.   

Red Robin Brand Save!

Some of you will recall a detailed customer service rant about an experience my family and I had at the couple month old Red Robin here in West Des Moines called The Power of One Bad Experience.  I'd like to share with you what's happened since then. 

• I wrote the piece on Monday October 30 and sent it into RR corporate at 10:05AM.
• I received an email from Corporate that was copied to a list of additional managers and higher ups at 12:58PM same day, October 30 expressing deep sorrow and regret for what we'd gone through.
• I received a call from the RR manager at 3:30PM that same Monday 3:30.  Juan Salinas handled this situation as expertly as possible. 
  
  • He made no excuses
  • Expressed his extreme embarrassment over what had happened
  • Made no attempts to explain away what happened (people calling in sick, etc.)
  • Offered to win us over again and to show us what Red Robin is really all about at our convenience
  • Offered to send us gift cards but encouraged us to come back as a family to be his guests
  • Gave us his cell phone number so he would be sure to be there when we came in
• We were finally able to schedule our visit for last night the 17th of November.  We arrived and took our booth without telling anyone that we were "the ones here to see Juan". 
• We were served perfectly by Kristina and introduced to Juan.  He continued to take full responsibility for what happened, explained how he used this as a team building and learning experience, and most importantly...didn't overdose on the "love" giving since he knew it would have come off as "make up love".
• Finally, the real professionalism and customer service recovery came near the end of our meal when Juan provided us with gift cards and asked that we come back, totally unannounced (undercover) and then report back to him in case our viewpoint was "tainted" by the extra attention we thought were getting on this night.

Now that's fantastic.  Bravo Red Robin!  Let's break this down in simple economic terms...devoid of emotion:

• Value of a lifetime RR customer:  ~$3k-$15k depending on family size and booze consumption
• Cost of Recovery for Mitchell's:  $100 (aka the freebies)
• Net economic gain to RR over lifetime $3k-$15k - $100 = CHA CHING

I would highly recommend that you visit this establishment and please ask for Juan.  Tell him that  you read Doug Mitchell's blog experience and are now certain that Red Robin gets it!  You made a big deposit in the Red Robin brand today Juan and Kristina.

I wish that Bankers Trust would have had a chance to read my post here before my buddy Drew McLellan posted his piece on what a $115 dollar "duh fee" charged to a loyal client can do for your  brand image!  Bankers surely would have understood the economic "lifetime value" of a client...right?

Do you think that Red Robin and Bankers Trust are a bit more interested in what blogs can do to support your branding?  Doing a Google search on Red Robin customer service yields 4th place for me on my original rant. I'm just ahead of a very nice announcement touting Red Robin's use of Six Sigma through partnership with GE Capital to improve milk shake quality.  I didn't try for that or expect it...but it's happening.  I hope this post ranks even higher. 

Dualing web cams

After a year of sitting on my desk, the Mitchgroup web cam II is up and running. Now I will li