Inquiries, Sales and Funding Rise in Anticipation of New Regulations — and Spending — From Obama Administration

While many small businesses continue to struggle with tight credit and declining sales, one fledgling industry is seeing a boom in investment and sales growth: alternative energy.

Alternative-energy firms are reporting an influx of inquiries and business from a wide range of companies looking to increase their energy efficiency, especially from those that believe the Obama administration will impose stricter regulations requiring them to conserve energy. President-elect Obama has spoken often of the importance of alternative energy, also known as clean technology, and his federal stimulus package is expected to include plans to beef up alternative-energy infrastructure and improve energy efficiency in government buildings. In a speech last week, he called for the U.S. to double the production of alternative energy in three years.

So start-ups across a variety of areas — solar power, biofuels and energy conservation among them — are getting increased financing from venture capitalists and lenders at a time when other small companies are cutting back and being turned away by investors. And many are hiring more staff, boosting marketing efforts and expanding geographically.

Alternative energy “has been the brightest sector in venture capital over the last year,” says Brian Fan, research director at Cleantech Group, an industry trade organization in San Francisco. “Everyone is thinking it’s going to be a big priority of the incoming administration.”

While the overall volume of venture-capital deals sank last year, investments in clean-technology companies totaled $8.4 billion, up nearly 40% from 2007, according to Cleantech Group. In the third quarter alone, venture capitalists poured $2.6 billion into clean technology, a quarterly record. In the fourth quarter, they invested $1.7 billion.

Some venture capitalists think clean technology is the next big thing — the innovation that will drive the economy, much as Internet-related ventures did a decade ago. “Anytime big innovation comes along, it brings the chance to build big companies,” says Erik Straser, general partner at venture-capital firm Mohr Davidow Ventures in Menlo Park, Calif., which has investments in several alternative-energy start-ups.

But whether the administration will turn to energy initiatives quickly enough for all these companies to reap the rewards remains to be seen. And unlike with other new types of technology companies, the growth of clean technology “depends on the right kind of government policies and incentives,” Mr. Fan says, because implementation requires a certain amount of infrastructure and tax credits to offset the expense for users.

“The policy side is absolutely critical,” he says. “If [the right policies] don’t get pushed through, we will see a good number of these start-ups suspend operation.”

Just the anticipation of a new administration has been enough to spur interest among companies. Green Panel Inc., a solar technology and installation company in Brighton Mich., is planning to add four employees to the 14-person, two-year-old firm over the next few weeks to handle new business that has come in since the election. Even though no new energy regulations are in place yet, big companies are starting to take a look at alternative-energy options, says Adam Harris, Green Panel’s chief executive. He says one industrial firm held off on an order of solar panels until after the election. And he has heard from other firms whose executives want to have systems in place ahead of any regulations for big companies.

“What’s really changed is the push from the top — the fear of what could happen if they don’t” put plans in place to cut dependence on nonrenewable energy like fossil fuels, Mr. Harris says. The firm expects to double its revenue this year to nearly $4 million.

Executives at venture-capital backed Greenline Industries Inc., a Larkspur, Calif., maker of biodiesel production equipment, believe the Obama administration will create a huge demand for biodiesel and other advanced biofuels. The president-elect has said he’ll require that 60 billion gallons of advanced biofuels are produced by 2030, spurred by tax incentives and government spending. The appointment of former Iowa governor Tom Vilsack as agriculture secretary makes increased demand even more likely, Greenline executives say, because of his commitment to ethanol production in his state.

Greenline, which has 35 employees, declines to offer specific projections but plans to triple its sales staff in the coming weeks. “It’s a reaction to the administration change and to changes we expect as a result of the people [Mr. Obama] has picked — the policies that will be happening and the growth in demand we expect,” says Donn Tice, Greenline’s chief executive. The company’s latest round of venture-capital financing was in March, for $20 million.

Mr. Tice says calls from potential customers have picked up in the weeks since the election, and he expects the pace to accelerate once Mr. Obama takes office. In December, Mesilla Valley Transportation signed a deal with Greenline for a 10 million-gallon processing plant, part of a multistage, $25 million project of a company offshoot called Global Alternative Fuels. The election “expedited things,” says Dean Rigg, chief financial officer of the transportation company in Las Cruces, N.M., which started processing biodiesel fuel with Greenline equipment about 2½ years ago. “We’re all betting” that a push toward new biofuels will come quickly from Washington, he says.

Two weeks after the inauguration, Greenline plans to launch a new corporate logo and a new tagline: “Ask Greenline.” Michael Brown, the firm’s founder, says it’s a response to the idea that more and more people are asking how to develop alternative fuels.

Some small companies are counting on the government itself for new business. Verdiem Corp. sells software that provides centralized control over power consumption, such as remotely turning off computer monitors left on overnight. Over the past year and a half, most of the Seattle-based company’s growth has come from corporate customers. But with Mr. Obama’s declarations that he plans to improve the government’s own energy efficiency, Verdiem Chief Executive Jeremy Jaech sees opportunity. The 60-employee company is planning to add three or four new salespeople to its 20-person sales staff in the weeks ahead to focus specifically on federal operations in Washington, D.C. The company hopes to win the business through the information-technology companies that play a role in managing government buildings.

Mr. Jaech believes Mr. Obama will need to practice what he has preached, reducing energy consumption on the federal government’s estimated 6.5 million personal computers. And Mr. Obama will have to start with his own offices, he believes. For his company, Mr. Jaech adds, “it’s low-hanging fruit.”

But while Mr. Jaech anticipates quick growth from Washington, Verdiem is hiring in stages. “I know the federal government can take a while to do things,” he says.

[via WSJ Small Business] by Simona Covel at simona.covel@wsj.com

President-elect wants to computerize the nation’s health care records in five years. But the plan comes with a hefty price tag, and specialized labor is scarce.

NEW YORK (CNNMoney.com) — President-elect Barack Obama, as part of the effort to revive the economy, has proposed a massive effort to modernize health care by making all health records standardized and electronic.

Here’s the audacious plan: Computerize all health records within five years. The quality of health care for all Americans gets a big boost, and costs decline.

Sounds good. But it won’t be easy.

In fact, many hurdles stand in the way. Only about 8% of the nation’s 5,000 hospitals and 17% of its 800,000 physicians currently use the kind of common computerized record-keeping systems that Obama envisions for the whole nation. And some experts say that serious concerns about patient privacy must be addressed first. Finally, the country suffers a dearth of skilled workers necessary to build and implement the necessary technology.

“The hard part of this is that we can’t just drop a computer on every doctor’s desk,” said Dr. David Brailer, former National Coordinator for Health Information Technology, who served as President Bush’s health information czar from 2004 to 2006. “Getting electronic records up and running is a very technical task.”

It also won’t come cheap. Independent studies from Harvard, RAND and the Commonwealth Fund have shown that such a plan could cost at least $75 billion to $100 billion over the ten years they think the hospitals would need to implement program.

That’s a huge amount of money — since the total cost of the stimulus plan is estimated to cost about $800 billion, the health care initiative would be one of the priciest parts to the plan.

The biggest cost will be paying and training the labor force needed to create the network. Luis Castillo, senior vice president of Siemens Healthcare, a company that designs health care technology, said the laborers will have the extremely difficult task of designing a a system that “thinks like a physician.”

“Doctors cannot spend hours and hours learning a new system,” said Castillo. “It needs to be a ubiquitous, ‘anytime, anywhere’ solution that has easily accessible data in a simple-to-use Web-based application.”

But highly skilled health information technology professionals are as rare as they come, and many IT workers will need to be trained as health technology experts.

Early government estimates showed about 212,000 jobs could be created from this program, but Brailer said there simply aren’t that many Americans who are qualified.

Furthermore, ensuring the privacy of patients’ records in a nationalized computer network will be tricky. There are obvious concerns about hackers and system failures. And new online health record systems, such as Google Health are not currently subject to the Health Insurance Portability and Accountability Act, the national health privacy law.

“HIPAA was never intended for the digital age, because the laws never anticipated the emergence of Web-based records,” said Brailer. “Congress can pass one of numerous policy proposals for change, it’s just a question if they have the will to do that.”

The Obama transition operation declined a request to elaborate on Obama’s proposal. The president-elect said Thursday in a speech on the economy thatthe benefits of a modernized national health record system go beyond just cost savings.

“This will cut waste, eliminate red tape, and reduce the need to repeat expensive medical tests,” said Obama. “It just won’t save billions of dollars and thousands of jobs — it will save lives by reducing the deadly but preventable medical errors that pervade our health care system,” he added.

Still, compared to the $2 trillion a year that the industry spends, the$100 billion experts say it may cost to implement Obama’s planis a drop in the bucket.

“We must reduce waste to become more efficient” said Brailer.

The savings of such a plan could be substantial. Brailer estimates that a fully computerized health record system could save the industry $200 billion to $300 billion a year.

That could ultimately slow the rapid rise of health care premiums, which have cut into Americans’ paychecks. While wages are rising at a rate of around 3% a year, health care costs are growing at about three times that rate.

“Obama’s support for electronic medical records is one of the key efforts of health reform that actually will deliver lower costs for hard-working American families,” said Larry McNeely, a health care advocate at U.S. Public Interest Research Group. “Long-term savings can’t happen unless we have 21st century health information technology.”

Massachusetts has developed a plan to fully computerize records at its 14,000 physicians’ offices by 2012 and its 63 hospitals by 2014. After a pilot program, the state legislature estimates it will cost about $340 million to build the statewide computer system, with a cost of about $2 million per hospital.

“[Obama's] timeframe is very ambitious, but there is a need to be able to track data on patients and talk across providers and health care systems,” said Dr. JudyAnn Bigby, Secretary of Health and Human Services for Massachusetts. “The program will allow for greater patient safety.”

Some say some of the hard work has begun. The Bush administration laid much of the groundwork for the program, leading to several pilot programs in a handful of states, as well as a standardization of medical records.

“The whole structure has already been developed,” said Stephen Schoenbaum, executive director of The Commonwealth Fund’s commission on a high performance health system. “It’s feasible to at least make a lot of progress on this in the next five years.”

[via CNN Money] by David Goldman

VOTE!

http://www.change.org/ideas

I’ve been fascinated by the analysis of the Obama campaign. In many ways, Obama’s campaign and its success is a big, bright, “LCD sign” of the times. New media has come of age in a very public way.

Most people seem to agree that the campaign used a number of techniques to capture an audience and even inspire the traditionally unenthusiastic. Some of my favorite attributions are:

Audacity – the fact that Obama wasn’t afraid to “redefine his target audience” and go after states like Indiana who this November voted for a Democrat for the first time in 44 years.

Mobilizing Large Numbers and doing it “Grass Roots” – unprecedented fundraising success by generating large numbers of small donations rather than small numbers of large donations to raise more than an estimated $600 million (McCain raised an estimated $250 million).

The Message Consistency – the message never waivered from the idea of being an “antidote” to the status quo.

But perhaps the most obvious and (to a techie like me) inspiring elements of witnessing this campaign was its focus on social technology to support and propel all of the other techniques.

The use of “new media” from friend building on Friendster to the seemingly simple text message proved to be a powerhouse for the campaign, as it extended the concept of “Team Obama” far beyond campaign headquarters literally into the hands of millions of Americans who voted and vocalized with their typing fingers.

For all the small business owners who couldn’t help wondering, wow – can I do that? My answer is Yes you can! (Sorry couldn’t help myself).

In taking a closer look, the technologies used form a rather familiar list:

• Official Web site: http://www.barakobama.com and http://my.barakobama.com
• Text messaging strategy – enabled via collecting phone numbers on a mass scale
• LinkedIn: http://www.linkedin.com/in/barackobama
• Flickr: http://www.flickr.com/photos/barackobamadotcom/
• Facebook: http://www.facebook.com/barackobama
• Twitter: http://twitter.com/BarackObama
• YouTube: http://www.youtube.com/user/BarackObamadotcom
• Meetup.com: http://barackobama.meetup.com/

The list reads like a “who’s who” of social media marketing.

But the real power in these technologies is understanding that the goal is not just to “set up” one tool or another, but to understand each tool’s potential. That potential in the Obama campaign was brought to fruition by:

• having a consistent message
• providing free and open access to “making a connection”
• *always* keeping the tool up to date
• providing pertinent digestible bytes of information that could be read, downloaded, passed on
• leveraging the sheer quantity of enthusiasts and supporters on each tool to disperse messages almost instantly across an unbelievably wide, new network of venues and communities that hasn’t been seen since the invention of television.

Think about the leverage that a database of 948,000 people on MySpace and 3.1 million people on Facebook provides when you have a message to communicate (and consider that vs. McCain’s 221,000 on MySpace and 600,000 on Facebook).

As you think about your business and consider the challenge to build brand, generate buzz and stay on the radar as a small business owner with limited time and a limited budget, there are some very simple lessons to learn here:

1. everybody needs a team. Whether you’re trying to build a team of millions of voters or a few thousand supporters of your business, build a team by building a venue for them to get involved. Even the simplest involvement can be powerful.

2. email, the Web, and cellular technology have created an unprecedented venue for that involvement. Know who should be on your team and know the different ways they like to be involved.

3. Use wisely. Learn how these technologies work and learn by example how they can be leveraged to build a community of supporters for you.

This is an advantage that won’t last forever. As businesses gain competency in these techniques and learn to invest wisely, these techniques will slowly become standards rather than competitive advantages.

But it is possible for a growing small business to build a strategic, cost-effective and impactful social media campaign. As “Team Obama” has shown – yes you can.

Another great article about Obama’s Viral Marketing in TIME MAGAZINE.

[via Inc Magazine] by Maisha Walker

CHICAGO (AP) — President-elect Barack Obama says he wants to make the White House “green.” In an interview with Barbara Walters, Obama said he plans to sit down with the chief usher for the presidential mansion and do an evaluation of its energy efficiency.He says part of what he wants to do is show the American people that it’s not that hard to go green.

Asked whether he’ll be tiptoeing around at night, turning off the lights, Obama said he isn’t going to be obsessive about it.

He says he doesn’t do that now where he lives and there’s no reason to do that in his new home at 1600 Pennsylvania Ave.

ABC provided excerpts of the interview, which airs Wednesday at 10 p.m. EST.

[via AP] by Sara Kugler

A huge victory for Obama, the Democratic party, and the United States. But can Barak Obama come through on all his promises?

On January 20, Barack Obama will be sworn in as the 44th president of the United States. And like Franklin Delano Roosevelt did as he took the White House while facing the Depression, he’ll have to make it up as he goes.

The nation should know before Obama replaces George W. Bush much more of what he plans to do for the economy and business. Sure, there are his myriad campaign proposals—like raising the top income-tax rate and capital gains and dividend taxes on the wealthiest earners, or taking a new approach to trade agreements that emphasizes labor and environmental standards. But this promises to be a transition like no other, or at least unlike any other since 1932, when that economic crisis dominated the transfer of power.

First off, watch to see who Obama picks to be his Treasury secretary and who will fill the top economic jobs in the White House. You don’t need to be a genius to picture Austan Goolsbee, the interesting University of Chicago economist, heading the Council of Economic Advisers. And you can imagine Jason Furman, who has been Obama’s main point man on economics, heading the National Economic Council, a position filled by Bob Rubin and then Gene Sperling in Bill Clinton’s two terms.

Treasury Secretary will be interesting, to say the least. The person clearly needs to be someone Wall Street—that’s an antiquated term since there are no more investment banks—trusts, or at least doesn’t fear. But it can’t be someone who helped to get us into this mess. So I wouldn’t look for Lloyd Blankfein or John Mack or Jamie Dimon to be signing the dollar bill anytime soon. Tim Geithner would seem like a solid bet. The head of the Federal Reserve Bank of New York has street cred, and he hasn’t been seen as being part of the problem. But you could make a case that he was part of the slow Bush-administration response to the mess. Geithner would send a centrist signal to the markets and trading partners.

My favorite candidate would be Michael Bloomberg. Obama could talk the billionaire mayor out of running for a third term, making the case that, while he’s needed in New York, he’s in greater demand in Washington. Bloomberg has market cred and isn’t part of the problem. Plus, he’d give Obama a valuable Republican-Independent appointment to the cabinet.

The other interesting proposition floating around is who runs the TARP (Troubled Assets Relief Program) after Neel Kashkari leaves. Will there be a special rescue czar, and could Obama persuade, say, Warren Buffett to take the gig for one year?

In many ways, the questions of how Obama will actually lead are greater now that he’s president elect than they were when he was simply a presidential candidate. And the truth is, we don’t really know what direction the Obama economic plan will take given the realities of the market crash. Will he remain as committed to deficit reduction? Will he veer left? Or will the left be wildly disappointed?

So to get one sense of where the future is headed, look to the past. I just finished Jonathan Alter’s The Defining Moment, his account of F.D.R.’s 100 days. One is reminded of how much of the New Deal was improvised and unplanned, and how tensions were high between Roosevelt’s diverse advisers. F.D.R. had, after all, run opposing Herbert Hoover’s profligate spending and promising a balanced budget. But he also promised “bold, persistent experimentation” and that’s what the United States got in plans ranging from the Civilian Conservation Corps to the genuinely socialistic National Recovery Administration. There was also a wholesale remaking of the nation’s monetary structure including the formation of banking insurance under the F.D.I.C. and the Securities and Exchange Commission, run by Joseph P. Kennedy. F.D.R. was wise enough to know that a speculator like Kennedy would be best to run an agency devoted to regulating speculation. Hopefully Obama’s bugaboo about lobbyists—he wouldn’t take their money during the campaign—won’t keep him from appointing some of the smart ones.

America’s financial architecture is about to be remade and the shadow banking system—hedge funds and mortgage lenders, private equity and credit-default swaps—are all about to be brought under federal supervision. It’s just a matter of what kind of regulations emerge from the ashes of the old Wall Street. This is where Obama likely will move at his briskest pace, rather than with things like health care, which is slow and cumbersome and fraught with political peril. (See Clinton, Hillary Rodham.) At this point, after the passage of the SCHIP that George W. Bush vetoed, the one that provides more health insurance for children of working families, Obama has a very tough road. But on financial regulation, he has something where he can declare victory relatively quickly and at relatively little cost.

But it’s really all a mystery. Back in 2000, if you were predicting the Bush years, you would have bet on a humble foreign policy and no presidential interest in nation building. You would have looked at Bush’s friendly relations with the Democratically controlled Texas legislature and predicted a period of bipartisan bonhomie. Obviously things turned out differently. Times change, and so do candidates when they become president. Right now, it’s worth holding on to hope because it may prove to be, with President Obama, as with so many others, quite fleeting.

[via Conde Nast Portfolio] by Matt Cooper

Just like the impending recission, the election is a great time for inventive, smart entreprenuers to make a buck. In the latest issues of Inc Magazine, take a look at how some great ideas have sprung political profits.

Calvin Coolidge once said, “The business of America is business.” Cal was also known to take a long afternoon nap, so he didn’t exactly reflect the industry and tenacity of the typical American entrepreneur. But the sentiment stands: If there’s money to made, business owners will find a way to make it, and in two of America’s big cities, there is money to be made right now off the political convention business. Later this month, Democrats will gather in Denver to nominate Sen. Barack Obama of Illinois; a few days later, Republicans will convene in Minneapolis-St.Paul to nominate Sen. John McCain of Arizona. Naturally, there will be local entrepreneurs in both cities who will attempt to use the conventions as an opportunity to increase sales and visibility. Here’s a sampling of some of the people who are finding ways to enjoy this political seasons regardless of their own political affiliations:

Democratic National Convention, Denver, Aug. 25-28

Convention Insider: MAKS
Security measures prevent Kristi King from saying a whole lot about the graphic design work she’s done for the DNC. The local artist was hired to create the official convention credentials that some 55,000 delegates, journalists, and attendees will use to enter the Pepsi Center, the site of most of the nominating convention. King’s three-person company, MAKS, produced four different (but similar) looks, one for each day of the event. In keeping with the Democrats’ environmental policies, they will be printed on 100 percent recycled material.

Local Hero: Jared Polis
Why would a highly successful young entrepreneur want to enter politics? Just ask Jared Polis, the 33-year-old CEO and Inc. 500 alum who is running for Congress in Colorado’s Second District, which includes Boulder, Vail, and Beaver Creek. “Congress lacks creativity and innovation and entrepreneurs excel at introducing new ideas,” he says. On this score, Polis has bona fides: He successfully took his family’s greeting card company, Blue Mountain Arts, to the Web and then launched another company, Proflowers (No. 7 on the 2003 Inc. 500), which he took public and later sold to Liberty Media for $477 million. His latest business endeavor is TechStars.org, a program that brings 10 business owners to Boulder for a summer-long boot camp. The entrepreneurs are given a $5,000 stipend, office space, legal council, mentorship, and networking opportunities in exchange for giving TechStars a small equity stake in their company. During the convention, Polis will be out-and-about, co-hosting receptions, and meeting with movers-and-shakers as well as grassroots organizations. So what’s Jared’s prediction for November? “Barack Obama will win Colorado and be the next president of the United States.”

A Place to Meet the Locals: The Corner Office
The greater Denver metro area has a well-earned reputation as a tech hot-spot, and The Corner Office has been labeled “bloggers row” for the Democratic convention. The restaurant signed a deal with MySpace to be its official headquarters during the event, which means that it will be opening its “Oval Office” dining area to the laptop brigade. Peter Karpinksi, a senior vice president at parent company the Sage Restaurant Group, says The Corner Office serves “global comfort food” that will encourage bloggers to get a buzz from martinis like the “Buzz Aldrin.”

Awesome Souvenir Shop: The Tattered Cover
Denver’s beloved independent bookstore will host a series of events and book signings throughout the convention, including an appearance by House Speaker Nancy Pelosi. Owner Joyce Meskis opened her first store in 1974 (during Watergate) and now has three stores, including a large one on Colfax Avenue that carries more than 150,000 titles. Marketing director Heather Duncan says the Tattered Cover will be stocking up on political books of all stripes in the run up to the convention. She expects an even bigger sales bump will come from sales of Colorado travel books, such as a Denver walking tour guide by local historian Tom Noel.

Friendly Watering Hole: Wynkoop Brewing Company
Denver’s Democratic Mayor John Hickenlooper founded this craft brewery in 1988, before its neighborhood became known by the fashionable tag “LoDo.” Housed in the J.S. Brown Mercantile building, the business keeps 12 brews on tap at all times and hosts the annual contest to find America’s “Beer Drinker of the Year.” In 2007, Hickenlooper sold his stake to a trust that represents his chefs, managers, brewers, and other longtime employees.

Local Outfitter: Rockmount Ranch Wear
Former CEO Jack Weil, who passed away on Aug. 13 at the age of 107, was at one time one of the leaders of the Colorado GOP. But his grandson Steve, who now runs the company day to day, is happy to welcome the Democrats to town. The apparel company is planning to stay open throughout the convention, and it has already taken an order to make custom western shirts for local Congresswoman Diana DeGette and her staff.

Headquarters for the Radical Extreme: Mercury Cafe
Marilyn Megenity has been thinking about sustainability almost since she opened her business back in 1975. The Mercury Cafe was the first Denver business to generate power from private wind turbines. Megenity also recycles water and coffee to irrigate the elaborate gardens on her property, and she has designs on going off the grid and becoming completely self-powered. Nearly all of the items on her menu are organic and local vendors supply 75 percent of her produce. In addition, Megenity is a pacifist (the “No More War” burrito with green chili, spicy tempeh, and avocado has been on the menu for 10 years). Throughout the convention, the Mercury Café will serve as home base for card-carrying members of the left-wing fringe.

Republican National Convention, The Twin Cities, Sept. 1-4

Convention Insider: Ustream.TV
Co-founder Brad Hunstable describes Ustream as “similar to YouTube, except we’re live.” The year-old website runs on a completely open platform, so anyone can join and let the world see what they’re up to. The 22-person business has raised $14 million in venture capital and currently has 10 million unique visitors a month checking out the eclectic programming that’s recently included graduations, weddings, funerals, music lessons, 50 Cent, the Dalai Lama, and all of the major presidential hopefuls. The RNC hired Ustream to handle all of the live-streaming at the convention, which was a thrill for Hunstable. “I’m a Texan who went to West Point, so it’s not hard to figure out my politics,” he says. “But we’ve had great success with people on both sides of the aisle.”  The company is also live-streaming for the progressive website Daily Kos at the Democratic convention in Denver.

Local Hero: FLSConnect
This $25 million communications company works with Republican candidates and conservative advocacy groups. The business did extensive work on the 2004 Bush re-election campaign. CEO Jeff Larson is currently moonlighting as CEO of the convention host committee. In that capacity, he oversees a $58 million budget, 250 employees, and more than 8,000 volunteers. Larson says he’s excited to see old friends (and meet new ones who need tickets for the convention), but he would have been equally happy, he says, to host the Democratic convention.

Place to Meet the Locals: Q Kindness Café
“Minnesota Nice” is a phrase locals use to describe Gopher State charm. Nowhere is that expression more appropriate than the Q Kindness Café, which first opened in 1961. Located two blocks from the convention center, they will be open for dinner during the event and serving “hot dishes” like Tater Tot surprise and tuna casserole. Husband and wife co-owners Lisa Cotter Metwaly and Jimmy Metwaly also started a pay-it-forward “kindness campaign” and hope to have seven businesses and 7,000 people smiling on their brother by September. The Metwalys walk the walk. Instead of wallowing after a $250 February burglary (it included $50 in waitress’ tips), the couple bought $100 worth of hand warmers and handed them out to customers waiting in the cold at the bus stop.

Awesome Souvenir Shop: Urban Junket
The two former marketing executives who left Best Buy to start a fancy laptop handbag company in 2005 want your vote. Tracy Arnold and Tracy Dyer will be holding a sample sale during the convention and every purchase includes a free luggage tag with a red elephant or a blue donkey to match your party affiliation. When starting out, the women got financial tips and contacts from WomenVenture, a 30-year-old St. Paul non-profit that’s helped some 90,000 clients. Last year, Urban Junket had sales of $550,000 through boutique stores and online retailers. Dyer says both entrepreneurs, “lean a little bit left, like most of the state.”

Friendly Watering Hole: Nye’s Polonaise Room
If the approval ratings of the GOP get you down, put some Oompah-pah into your step at this legendary bar, which first opened its doors in 1949. On Friday and Saturday nights, tuba aficionados can dance to local Polka bands while eating traditional dishes like spare ribs and sauerkraut. After dinner, guests can take their Zywiec beer to the side room to sing along to “Sweet” Lou Snider’s piano ditties. The septuagenarian has been tickling the ivories here every day for the past 41 years. Alternatively, country club Republicans should check out the Grill at the St. Paul Hotel. Located steps from the Xcel Energy Center, it acquired four bottles of Macallan 55 for the convention, and boasts that it will be the only place whiskey drinkers will find it in Minnesota. Make sure a lobbyist is paying; each one-ounce shot costs $525.

Local Outfitter: Zubaz
The infamous zebra-striped pants of the late 1980s have returned just in time for 2,000 red, white, and blue pairs to be given away in the official convention gift bag. The creators of Zubaz, Dan Stock and Bob Truax, sold the fast-growing-but-cash-poor business in 1995. When it eventually failed, Stock and Truax decided to buy back the rights to the brand, which they relaunched last year. They’ve spent about $100,000 so far. The company is being run out of Press Gym, a 16,000 square-foot work facility owned by Stock that includes a mixed-martial arts studio and a tattoo shop. Muscleheads always dug Zubaz, and now, for $29.99, they have six colors to choose from. More hues and prints including snakeskin will be available soon. “Zubaz are tried-and-true and we have enough customers to last 100 years,” Stock says, “it’s been a blast coming back.”

Headquarters for the Radical Extreme: Koscielski’s Guns & Ammo
The last gun shop left in Minneapolis opened in 1995; it’s the birthplace of the “Creditcard Shotgun” — a weapon small enough to carry in your wallet. Owner Mark Koscielski says it took more than two years and seven prototypes to get the design right, and government approval on the weapon is still pending. But assuming the ATF gives the product its blessing, Koscielski plans to sell the four-barrel guns for between $150 and $195. The guns, which take special .25 ACP ammo only available to the licensed gun owners at the store, probably won’t be available for the convention. But Koscielski still hopes that the convention will have an impact on his bottom line. “A lot of people have contacted me about buying mace,” he says.

[via Inc Magazine]