Apple Faces a Very Small Business Problem

When a business owner gets ready to sell, one of the very first questions a business broker or marketing consultant will ask is "does the business have an image outside of the business owner?" So many businesses completely link themselves to the owner that, if the owner died or was forced to quit, the business would be seen as being in serious trouble.

This is a problem that is typically associated with small to medium business. It is the mattress store that is known by its energetic owner that will "save you money," or the carpet guy who is convinced that his company is the only one that really knows its trade. Big companies tend to have enough products, services, and prestige to stand on their own.

There have been big companies that have lived a little dangerously in this regard. Lee Iaccoca "single handily" saved Chrysler and there was huge concern about the company surviving without him. Ever since Orville Rickenbacker passed away there has been a void in the popcorn company. Old commercials of the now dead founder are designed to remind viewers that the company has not wandered far from its roots. The death of Wendy's founder, Dave Thomas has created a similar void for which the company has yet to recover. The company continues to appear to be interested in being bought by another country. But the situation with Steve Jobs of Apple is creating a situation that we simply have not seen before.

The Seattle Times reports that "for months, Apple's shares have gyrated on rumors and bogus reports that Steve Jobs was in ill health. Recently, Apple said Jobs suffered from a treatable hormone imbalance. But optimism didn't last. Jobs began a leave of absence Wednesday saying his health issues were 'more complex' than thought. Shares opened sharply lower Thursday, and closed down 2.3 percent. On Friday, the stock declined 1.3 percent, finishing the week at $82.33."

Steve Jobs is a cultural and business icon of amazing proportions. We have seen very few like him before and I doubt we will see very more after. This leader has taken many products from idea to best seller and he has had his finger prints on those products. His linkage to the company is so profound that his ill health, could lead to a serious sickness for his company.

The challange for Apple is to determine a way to transfer some of the founder's prestige to the company itself and that seems to be no small challenge.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

The Plum Card from American Express

I hadn't heard about it until today, but the image of the new Plum Card from American Express immediately caught my attention. Once I saw the image and clicked for more information, I was even more impressed.

According to American Express, the new card has the following unique features:

"Pay early, get up to a 2% discountPay your balance in full within 10 days of your statement closing date and get a 2% discount when your month's total spending is above $5,000 and 1% when it's $5,000 or below. The discount is applied to all new eligible charges in that month, and will appear as a credit on your following month's statement.Example: Charge $10,000 monthly and regularly pay your bills in full within 10 days, and your monthly savings will be $200 (Your yearly savings will be $2,400).

Pay 10%, defer payment up to 2 months, interest–freeTake up to two months from the closing date on your monthly statement to pay your new balance in full – all without interest or finance charges. Just make an initial payment of at least 10% by the Please Pay By date on your billing statement and you can extend payment on the rest until the next month's Please Pay By date.Example: If the new balance on your statement is $5,000, you can pay $500 by the Please Pay By Date and the rest by the Please Pay By Date on your next month's billing statement.

Set Your Own Billing CycleSelect when your monthly billing cycle closes — at the beginning, middle, or end of the month."

You can get more information about the card here (I'm not selling it, it simply looks like a potentially helpful program).

I'm always excited to see the major companies competing for the opportunity to finance small business activities. Such is good for the economy and business in general.

Virtually everything I have seen so far has been "marketing" in its approach, so I cannot yet vouch for the card. But I will keep my eyes open and report back my findings in the future. Meanwhile, I would love the comments of others on the viability of the program when it comes to their business.

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