Russ: Good morning. This is the BusinessMakers Show heard here and seen online at theBusinessMakers.com. And this is that show about those that make it happen. We're talkin' about the entrepreneurs.

John: Yeah, these are the ones who really make it happen.

Russ: You bet.

John: Yeah.

Russ: And here's what we've got lined up today. Okay and for our AFLAC BusinessMakers Flashback, we're gonna feature the stories behind what triggered three of the companies of our former cool guests. First up, the co-founder of an aqua culture company. Then that's gonna be followed by the founder of a premium tequila company and lastly, we're gonna have the founder of a major hair care products company. And then for our featured guest segment, I'm gonna sit down and talk with Ray Davis, the founder and CEO of Behavioral Recognition Systems, the company that has built neural software to identify specific behaviors recognized on live video and a video version of this interview will be available at theBusinessMakers.com. But first - That's right, it's time for The BusinessMakers School of Business. And this is not your business as usual school.

John: And this isn't a summer school version of it, either.

Russ: No, we just keep going.

John: We just keep going. Just a couple of blowhards, here.

(Laughter)

Russ: That's right. All right and we kick off the School of Business each Saturday morning, first with a quote of the day.

John: Quote of the day.

Russ: And this morning's quote comes from Jonathan Swift.

John: Ah hah.

Russ: Mr. Gulliver's Travels.

John: Gulliver's Travels, yes.

Russ: Here it is. "Discovery consists of seeing what everybody has seen and thinking what nobody else has thought."

John: That's right. Yeah.

Russ: There you go.

John: Yeah. It pays to, you know, to look at things differently.

Russ: You bet.

John: And go against the conventional wisdom.

Russ: Absolutely.

John: I guess that's kind of what that's all about.

Russ: Absolutely.

John: That's what we do here at The BusinessMakers Show.

Russ: You bet.

John: 'Cause we don't believe anybody.

Russ: That's right.

(Laughter)

Russ: And we don't have a course in conventional wisdom.

John: And right, as Samuel Goldwyn, the movie mogul said -

Russ: All right.

John: - nobody knows anything.

(Laughter)

Russ: That's right.

John: All right.

Russ: That's one of our favorites.

John: Okay. All right.

Russ: All right and that brings us to This Week in Business History. What happened during this June week in business history?

John: Well this is kind of an unusual take here because most of the This Weeks in Business History usually go back, like, you know, before the birth of Chri-

Russ: Right.

John: - it's always, I mean, there's always -

Russ: Right, yeah.

John: - you know, but this was a - we're starting here in 1840.

Russ: Ah.

John: That's our start date here and Samuel Morris patents the telegraph.

Russ: Cool.

John: And it changed the world.

Russ: Absolutely. Yeah.

John: Okay and -

Russ: Long-distance communications.

John: Long distance communication and he was duly feted -

Russ: Yeah.

John: - and made a lotta money off of it.

Russ: Yeah, that's right.

John: Okay.

Russ: Right.

John: This week in business history in 1867 the first barbed wire patented by Lucien B. Smith of Ohio.

Russ: Wow.

John: And, you know, that's something that took off.

Russ: Yeah, barbed wire.

John: Because sll these ranchers and cattle people had no way of keeping the livestock from roaming around.

Russ: Right.

John: I mean they had fences and everything but nothing works like a -like a nice little prick, you know?

Russ: Yeah, it do- no kiddin'. Well they did have, they did have a lot of open range stuff going but that probably didn't work out very well, either.

John: No, it did not.

Russ: So then they said, "Let's put up some fences."

John: 'Cause if you owned the, you know, if you owned the property and someone drives a herd of cattle through there.

Russ: Yeah, it kinda hacks you off.

John: Hacks you off. There's a movie about that, by the way.

Russ: Yeah there was. Called Open Range.

John: Open Range one of my favorite westerns, yeah.

Russ: A heck of a gunfight in that thing, too.

John: Oh, man. Yeah, was that guy, he says, "Are you the guy that shot my friend?"

Russ: Yeah.

John: He says, "Yeah, what are you gonna do?" [makes the sound of gunshot]

Russ: (Laughter) All right, but the first fence came along and it didn't work 'til they added a little prick to it.

John: I know. It's amazing what can happens when you run into a little prick.

Russ: Yeah, - all right.

John: All right. This week in business history in 1876 the Big Horn River in Montana was the site of Custer's last stand.

Russ: Yeah, wow, wow.

John: And he decided to attack a village of a combination of Sioux and other Indian tribes and some people think it was around 3,000 Indians and Custer had a couple companies, you know, so he did not have a - he was outnumbered -

Russ: And he attacked them, right?

John: He attacked them.

Russ: He was trying to surprise them.

John: He - yeah, well he did surprise them.

Russ: Yeah, (Laughter) that's right.

John: And they got kicked -

Russ: Like counter surprise, right?

John: Yeah, it's like kicking open a hornet's next.

Russ: Okay.

John: Okay, this week in business history in 1893 the first Ferris wheel premiers at Chicago's Columbian Exposition.

Russ: Wow.

John: The original Ferris wheel's designed by George Washington Gale Ferris, Jr. and that's a wordy name.

Russ: Yeah.

John: Wonder how he got that name.

Russ: Yeah.

John: Anyway.

Russ: But his name stuck with the product, so, yeah.

John: That's right, at least they didn't call it a Gale wheel.

Russ: Yeah.

John: Or a Washington wheel or a George wheel.

Russ: It's a Ferris wheel.

John: Or a junior - they call it a Ferris wheel.

Russ: Yeah.

John: It was a landmark in 1893.

Russ: Cool.

John: Okay. This week in business history in 1911 the NAACP incorporates in New York City.

Russ: Yeah.

John: And -

Russ: Probably going strong these days.

John: Oh yes. But it's changed over, over time

Russ: Oh yeah.

John: That's a liberal lobbying group.

Russ: Right.

John: You know, more than anything else.

Russ: Right.

John: But anyway. This week in business history in 1926 the College Board administers the first SAT exam.

Russ: Wow.

John: Right and uh -

Russ: 1926. That surprises me to hear back then, man. Yeah.

John: You know, that, I thought - didn't know it was that old. It probably just had just a few questions.

Russ: (Laughter) Probably and just a few people that took it, too. There weren't that many people going to college back then.

John: Not, no not that many people went to college -

Russ: Yeah.

John: - you know, most people - well 1926 was the Roaring 20s, so -

Russ: Yeah.

John: - I'm sure there were some affluent households -

Russ: Yeah.

John: - that could afford to send their kids to college but again, I'm with you. I didn't know the test was that old.

Russ: Yeah.

John: Okay. This week in business history in 1936, Jesse Owens of the U.S. sets a 100-meter record at 10.2 seconds.

Russ: Whoa. Man, he was some kind of speedster, there, a sprinter.

John: He was - yeah right.

Russ: He - but he wasn't a Usain Bolt. Man oh man, you know, we're way down -

John: Well, well no -

Russ: - half a second lower than that, now.

John: - well no, Jesse Owens was Jesse Owens.

Russ: That's right.

John: Usain Bolt is somebody else.

Russ: He was somebody else, okay.

John: I mean - this week in business history 1938 federal minimum wage laws guarantees workers 40 cents an hour.

Russ: Well? Wonder what -

John: Why only 40 cents?

Russ: I know?

John: Why don't just give 'em a million bucks?

Russ: That's right. That's right. Get everybody - make everybody rich.

John: Make everybody rich.

Russ: That's what they shoulda done.

John: That's what they're tr- yeah. It's - now it's up to what, $7.50?

Russ: I think it's up there, yeah.

John: Okay, this week in business history in 1944 Congress charters the Central Intelligence Agency.

Russ: I wonder what that - I wonder if that means -

John: I thought that was chartered after World War II.

Russ: Yeah, I know.

John: 'Cause they had the - they had another wor- OSS.

Russ: Yeah?

John: Yeah, but anyway.

Russ: Wonder what that means that they chartered it. I wonder if that means it was existing before then but they didn't charter it until 1944.

John: It's probably a combination of -

Russ: Yeah? Yeah.

John: - you know, the - probably a combination of the two and so we'll just leave it at that.

Russ: All right.

John: This week in business history in 1948 - that's my - year of my birth - Colombia commits to 33 1/3 RPM albums, phasing out 78s as Dr. Peter Goldmark of CBS demonstrates the long-playing record.

Russ: That's amazing. This media thing's been going on forever. You would've thought that the 78s, because they were spinning faster, might've had higher fidelity but -

John: No.

Russ: - I think they - when they came down to 33 1/3, they knew what they were doing.

John: This week in business history in, in 1949 Hopalong Cassidy, William Boyd played the part, becomes the first network western on NBC.

Russ: Wow, wow.

John: And it's also one of the first actors to get residuals for his work.

Russ: Now I've heard you say that before. How do you know that?

John: I read it somewhere.

Russ: It's that thing, that surface knowledge thing that you have?

John: Yeah, just a vast swath of surface knowledge that I have.

Russ: And that's a piece of it?

John: And he also got into merchandising, you know, Hopalong Cassidy lunch buckets and stuff like that.

Russ: Oh yeah. You had one of those?

John: Uh no.

Russ: Yeah? I think I did, maybe.

John: But he had - I had a record. Actually, it was a double album, 33 1/3 -

Russ: Yeah?

John: - it was one of his radio shows.

Russ: Yeah? Wow.

John: Yeah, it was cool.

Russ: Yeah.

John: I really liked it. This week in business history in 1963, the Beatles formed Beatles, Ltd. to handle all that money they were making.

Russ: Man, they didn't like the tax rate over there, either.

John: I know, that's why they left Britain.

Russ: Yeah.

John: Yeah.

Russ: Yeah.

John: Okay.

Russ: I can understand that.

John: This week in business history in 1963 Little Stevie Wonder, he's 13 years old, releases "Fingertips" -

Russ: Wow.

John: - remember that song?

Russ: And not too long after that, he had "Fingertips, Part 2."

[Music: "Fingertips, Part 2"]

Russ: Yeah, remember that?

John: Yeah, then he had "Little Pinky Toes, Part 1."

Russ: (Laughter) But he was clearly talented at the very young age, that was for sure.

John: Clearly, clearly talented.

Russ: Yes he was.

John: Okay. This week in business history in 1969 150,000 people attend Newport in 1969 to hear Jimi Hendrix and a bunch of other people. Hendrix got $120,000.00 -

Russ: Whoa!

John: - to appear -

Russ: In 1969.

John: - '69. So that's probably, what, about $1.2 mil now?

Russ: It's a lot, man, geeze.

John: It's a l- yeah.

Russ: It's a big paycheck.

John: All right, this week in business history in 1970 President Nixon signs the 26th Amendment, which lowered the voting age to 18.

Russ: What do you think of that?

John: Well -

Russ: Is 18 right?

John: Eighteen? Well, hey, you're old enough to go war.

Russ: Yeah, that's true.

John: You should be old enough to vote for the people sending you there.

Russ: That's true.

John: Big thing is, a lot of these people don't vote.

Russ: That's right. That's right.

John: They're just not interested.

Russ: That's right. That's right. That's interesting. Okay.

John: Exercise in futility, there.

Russ: You bet.

John: This week in business history in 1977 the oil entering the Trans-Alaska Pipeline exits 38 days later at Valdez. Took 38 days to go from the -

Russ: Yeah, when they turned on the spigot -

John: - Prudhoe Bay -

Russ: Yeah, until it came out.

John: That's not bad. You could probably walk that -

Russ: In 38 days. (Laughter)

John: - a lot - 38 -

Russ: Well, it might be thick crude or cold crude or something but I remember it was very controversial, too, at the time, but boy it was a huge project -

John: Yeah.

Russ: - and it's actually for the thirst we have for energy, it's paid off very well.

John: This week in business history in 2004, Spaceship One becomes the first privately-funded space plane to achieve space flight.

Russ: Yeah, that was pretty incredible. It took some courage, I think, to get in that thing, too, you know.

John: Oh yeah.

Russ: All right, so does that wrap up this morning's history lesson?

John: That's all we got.

Russ: All right.

John: All right.

Russ: All right and that brings us to the Jargon Challenge Round.

John: The Jargon Challenge Round.

Russ: Also known as our vocabulary lesson.

John: You betcha.

Russ: You bet where we go out there and just look across the landscape and find the new words that are popping up.

John: The landscape. They're popping up like corncobs.

Russ: That's right. (Laughter)

John: All right. They're all over the place.

Russ: That's right a -

John: Like mushrooms.

Russ: And I get to choose the word.

John: Yeah, or make it up.

Russ: Or make it up.

John: Or whatever, here, yeah.

Russ: Yeah, and I say the word. And then John guesses the meaning.

John: Guesses the meaning, yes.

Russ: Right.

John: Okay.

Russ: No wagering, please. Technostalgia.

John: Technostalgia. Well nostalgia is when you have a fine, you know, memory, and a positive memory of days gone by.

Russ: Right. Right.

John: Technostalgia is when you have that same warm feeling when you think of the technology of old.

Russ: You got it. We got a winner, ladies and gentlemen. Hold your calls.

John: Wow! I'm ex- I'm a -

Russ: It's like if you think back about Visicalc or WordPerfect or the PC-1 and all those kinda things. These things worked fine, you know -

John: Yeah.

Russ: - I wish we still had them here.

John: Floppy disks.

Russ: Yeah.

John: Flo- yeah and when's the last time you saw a floppy?

Russ: Now you can't even, you know, if you saw one, you wouldn't have anything to read it on anymore, too. So -

John: I know, it's just, you know, it's amazing how technology is -

Russ: Yeah, technostalgia. Okay.

John: Yeah.

Russ: All right and that brings us to Dumb Moments. Do you have an dumb moment in business story for us this morning?

John: Yeah, this takes place in jolly old England.

Russ: Okay.

John: In Great Britain. A 28-year-old woman undergoes a double lung transplant in Manchester.

Russ: Okay.

John: And died months following from pneumonia.

Russ: Okay.

John: Now there's a problem with the lung transplant.

Russ: Okay.

John: Okay, the person had Cystic Fibrosis.

Russ: The person that received the lungs had Cystic Fibrosis.

John: The person that had received the lung had Cystic Fibrosis.

Russ: Okay.

John: The problem was she got the lungs of a 30-year smoker.

Russ: (Laughter) They actually do that? They give you -

John: Yeah.

Russ: - unhealthy lungs?

John: I gue- well, in Great Britain, I guess it doesn't matter because there's a Czar. They have what they call the transplant Czar.

Russ: Yeah.

John: And he insisted that organ transplants are carried out only on the basis of whether they work.

Russ: Yeah.

John: And the lungs worked.

Russ: Yeah.

John: Unfortunately, they were the lungs of a smoker so I doubt if they were, you know, had - I'm sure they had some imperfections that -

Russ: Did the Transplant Czar, was he a smoker, too, perhaps?

John: Um, if he is not then, he probably is now, okay, but -

Russ: W- that's interesting. They have a Transplant Czar. We don't have a Transplant Czar. We have a lot of czars.

John: Yeah. Give us time.

Russ: We'll have one? (Laughter)

John: Okay, (Laughter) we'll probably have one.

Russ: All right.

John: I'm not saying that that doesn't happen in the private sector -

Russ: Right.

John: - you know, where they call it wrong-site surgery or -

Russ: Right, right, oh yeah. Oh yeah.

John: That's why you have malpractice laws.

Russ: That's right, that's right, that's right.

John: But when they sell this insurance, this state-run insurance, this government insurance -

Russ: Right.

John: - they say it is infinitely more superior.

Russ: Yeah, right.

John: You know, everybody gets treated, which isn't true.

Russ: Right, right.

John: It's - they have rationing.

Russ: Right.

John: But this just goes to show these - this system isn't any better than the one it replaced.

Russ: No, that's true. All right, so before we wrap up this morning's School of Business, it's time for the very popular PKF Texas Entrepreneur's Playbook.

John: And here's Greg Price. A one and a two and a -

Russ: A one and a two and a -

Greg: This is Greg Price with PKF Texas' Entrepreneur's Playbook.

Last week I told you about the impact credits and incentives can have on your business, but how can a company identify potential incentives and how to companies take advantage of them?

It may sound too good to be true, but the best place to start a search for credits and incentives is Google. Every state and most local governments will discuss the statutory credits and negotiated incentives available in their jurisdiction on the Internet. Unfortunately, although the incentives are discussed on the Web, the descriptions of the incentives are often inaccessible to a novice.

Statutory credits are easy to capture. Review the credit guidelines, determine if the facts presented meet the credit's requirements and then determine accessibility. Negotiated incentives, including property tax abatements, tax increment financing, sales tax sharing agreements and other grants, will likely be much more complicated.

Professional advisors will understand the traps for the unwary in these programs. Professionals are also better able to navigate the political process that sometimes surrounds these matters. A company may also be best served by having a third party with a deep understanding of local and regional issues negotiate with competing jurisdictions.

Credits and incentives are available to a greater or lesser degree to every company. Executive leadership and tax advisors should evaluate the potential for these incentives for the enterprise. Where necessary, include consultants who focus on credits and incentives. Always be mindful of the potential for incentives when significant capital investment or job creation may occur.

To read and comment on the PKF Texas' Entrepreneur's Playbook, visit my blog, fromgregshead.com. And be sure to check out the new mobile ready website at PKF Texas.com - PKF Texas, The Fit That's Right!

Russ: All right and that wraps up this morning's School of Business. Stay tuned in for the AFLAC BusinessMakers Flashback where we're gonna feature three real cool idea triggers and then that's gonna be followed by our featured guest where I sit down and talk with the founder and CEO of Behavioral Recognition Systems, Ray Davis. You're listening to The BusinessMakers Show, heard here and seen online at theBusinessMakers.com.