Small Business Today Magazine - September 2012 Edition

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02172012.Dist783_GoldmanSachsSmBusAd.indd 1 2/21/12 9:47 AM

SMALL BUSINESS TODAY MAGAZINE SEPTEMBER 2012 | PG 3www.SBTMagazine.net

FROM THE STEVE LEVINE

SBT Houston Staff

SEPTEMBER 2012

President John Cruise

Executive PublisherSteve Levine

Editor/Creative DirectorBarbara Davis-Levine

Business Development/PRJenna Devers

Bill HuffBill Krull

Donna K. RooneyAlvin Terry

Graphic DesignVanessa Vara

PhotographersEric Kleiman

Contributing WritersDon BrownDebra Bann

Cyndi BarnettJudy BlakeJohn Cruise

Barbara DavisDavid T. DomzalskiErich Fruchtnicht

Bruce HurtaDavid Holt

Jeffrey JonesSteven KayCraig Klein

Hank MooreMike MuhneySusan Repka

Rita SantamariaJane Seaman

Alvin TerryAimee WoodallAaron Young

Jack Warkenthien

Chief AdvisorHank Moore

Publisher’s Advisory BoardDebra Bann

Cyndi BarnettJohn Cruise

Maya DurnovoKathie Edwards

Leonard FaucherDavid Holt

Richard HuebnerJeffrey JonesCraig Klein

H. Quincy LongImaad Mahfooz

Hank MooreMike MuhneyDan ParsonsNeil PolanskySusan Repka

Rita SantamariaAllen Shapiro

Pam TerryJack Warkenthien

Doug WinnieR.D. Yoder

Aaron Young

Phone: 832-460-2020E-Mail: [email protected]

Or Write: Small Business Today5380 West 34th Street, Ste 230

Houston, TX 77092See us on the web at

www.SBTMagazine.net

Success Always Starts with a Dream

I love musicals and always have!

I grew up on musicals in our home (Music Man, Finnian's Rainbow, My Fair Lady, Oklahoma, Guys & Dolls, etc.). I knew and sang every word of every song! But, one of my favorites was "South Pacific" and there was a particular song that has had meaning in my life that was song by the character, "Bloody Mary" (played in the 1958 movie by the lovely Juanita Hall). The title of the song was “Happy Talk” and the lyrics say it all, "If you don't have a dream, if you don't have a dream, how you gonna have a dream come true?"

How anyone starts a new business without a dream is beyond me!

I believe that we all have dreams as adolescents and young adults, but somehow for many small business owners, "survival" becomes their mission as their original dreams seem further and further beyond their reach.

I believe that the more challenging the market conditions and odds against a businesses succeeding, the more we need our dreams. The bigger the better!

What dreams would you set? What goals would you wish to become a reality if you knew that you could not fail? I hope you realize that the single most important ingredient in achieving any goal or dream is you, your dream and your belief that you (and only you) can make your dream a reality.

For this month’s cover honoree and my dear friend, Ms. Rita Santamaria/President of Champions School of Real Estate, her dream was to start a small real estate school outside her north Houston community where she could combine her teaching background and real estate knowledge to educate and empower future top real estate agents.

I have had the pleasure of knowing and working with Rita (a true icon in the real estate community) for over 14 years and I can tell you first hand that she is a woman who just keeps dreaming and is quite accomplished in turning each new dream into a reality.

We at Small Business Today are most proud to have Rita as our September 2012 cover honoree! You will enjoy her story and her words of advice following her story.

So, start now and dream big and put your heart and sole into it and watch it happen!

Great advice from our first woman cover honoree, would you agree?

Good Reading, Good Sales and Success to you,

Steve LevinePublisher

Publisher

SMALL BUSINESS TODAY MAGAZINE SEPTEMBER 2012 | PG 4 www.SBTMagazine.net

www.SBTMagazine.net SMALL BUSINESS TODAY MAGAZINE SEPTEMBER 2012 | PG 5www.SBTMagazine.net

By Woodie Stephenson

TODD WOODRUFF—MR. ELECTRIC OF MIDTOWN

“HELPING REALTORS® & HOME BUILDER MAKE HOMES THAT SHINE”

To schedule a consultation, contact Todd Woodru� and Mr. Electric at (713) 823-1994, on the web at www.houstonmidtown.mrelectric.com or Email us at todd.woodru�@mail.mrelectric.comVisit us on Facebook www.facebook.com/pages/Mr-Electric-of-Houston-Midtown/172985366047439

ost lasting businesses are built on friendship,” says Todd Woodruff, franchise owner of Mr. Electric. “I’ve always strived to befriend the people I have business relationships with and the result has been a successful business.”

A Master Electrician by trade, Todd had been doing electrical work in Houston since 1980, In 2001, he received an engineering degree from the University of Houston. Looking to explore business ownership, Todd purchased his own Mr. Electric franchise over two years ago because of the company’s proven business model and abundant resources.

“We have a proven expertise in electrical repair work and lighting design, but most of all we specialize in customer service. We take extra care to find out what our customer’s needs are and we follow through with the job, satisfaction guaranteed.”

Todd stresses that each electrical job is an opportunity to build a relationship with the customer and represent his company’s core values.

“We don’t just go in and take somebody’s money; we take the time to get to know our clients and make sure they are completely informed so there are no surprises. We make sure we are in agreement before we start work on a job, and we make sure our clients are completely satisfied before we leave the job.”

Todd assures his clients that they will always be treated to professional and punctual service in a profession where customers are too often left at the mercy of unreliable contractors who sub out the hands-on work at the customer’s expense.

“All of our electricians go through a rigorous screening procedure and background check. We care about who we work with and whomwe send into our client’s homes and businesses.

We take our client’s security seriously and we keep our promises when it comes to the level of service we offer.”

Todd enjoys working with Realtors and Home Builders because he values their professional dedication and the symbiotic relationships they can build in providing exceptional service.

“I sincerely enjoy working with Realtors, helping them get their homes ready to show in the market. We like to help them create a house that shines.”

Todd offers competitive advantages to Realtors by providing inspections to help bring a home up to date with the latest LED and fluorescent technology, green energy-saving fixtures, surge protection, and products that help cooling and heating equipment to operate more efficiently.

“M “Todd is very knowledgeableabout homes and all thingselectrical. When I refer my clients to him, I am always confident that he will take the best care of their needs and repairs.”

----Don Jones, Broker,Keller Williams Realty Pearland

HOUSTON EDITIONPUBLISHER: STEVE LEVINESMALL BUSINESS MAGAZINE IS PUBLISHED MONTHLY BY LEGACY PUBLISHING GROUP, LLC. 5380 WEST 34TH ST. STE. 230 HOUSTON, TX 77092 EXECUTIVE PUBLISHER: STEVE LEVINE PRESIDENT: JOHN CRUISE PHONE: 832-460-2020 www.SBTMagazine.netADVERTISING RATES ON REQUEST. BULK THIRD CLASS MAIL PAID IN TUCSON, AZ. POSTMASTER: PLEASE SEND NOTICES ON FORM 3579 TO 5380 WEST 34TH ST. STE. 230 HOUSTON, TX 77092 ALTHOUGH EVERY PRECAUTION IS TAKEN TO ENSURE ACCURACY OF PUBLISHED MATERIALS, SMALL BUSINESS TODAY MAGAZINE CANNOT BE HELD RESPONSIBLE FOR OPINIONS EXPRESSED OR FACTS SUPPLIED BY ITS AUTHORS. COPYRIGHT 2012, LEGACY PUBLISHING GROUP, LLC. ALL RIGHTS RESERVED. REPRODUCTION IN WHOLE OR IN PART WITHOUT WRITTEN PERMISSION IS PROHIBITED.

INSIDE

SEPT

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IN THIS ISSUE

Netiquette and Teliquette 8

Entrepreneurs Tool Box Commercial Loan Checklist 10

The Case for email @ Your OWN Domain 11

Business Lessons on Crisis Management, Learning From the Titanic...How Statistical Perspectives Matter 12

Seller Second Lien Financing & Small Business Transactions Financed with SBA Loans 14

Top 5 Reasons to Outsource Your Social Media Campaign 16

Business and Education...A Necessity 17

Trust: It's the Now Social Currency 18

Changing the Tires on a Moving Truck 19

Getting Dressed for Work in Your Home Office 20

Hanging the "Help Wanted" Sign 21

Africa, The Last Frontier: Positioning Your Business to Go Global 24

Your Next Step The Priority Box: Advance Your Business While Still Maintaining Balance in Your Life 25

Help! My Mom Won't Quit Liking My Facebook Status! 30

4 Reasons Why Local Businesses Should Support the Energy Revolution 31

Infotainment: Brand Advertising Versus Educational Marketing 32

Is Now the Time to Sell? 36

The Price is Right 38

Legal Document Annual Review 40

Lessons Applied in Business That Were Learned In Raising My Two Special Needs Kids 41

6 Rita Santamaria - Champions School of Real EstateA Champion in All She Does as a Wife, Mother, & Successful Business Leader

Would you or your company like to be profiled in our next issue?

For more information contact Steve Levine at: 832-460-2020

22 Lee Wright - Integrated Health, Inc.Over 20 Years of Experience Knowing the Business From the Inside Out

39 Jennifer Hernandez - Patriot Bank MortgageMaster Orchestrator of Fast, Seamless Transactions Through Teamwork

continued on page

continued on page 28


Netiquette and TeliquetteBy Rita Santamaria

THE BUSINESS OF REAL ESTATE

EDITORIAL FEATURE

Telephone etiquette and internet etiquette via e-mail are actually hot topics right now as many believe the use of e-mail

and cell phones have brought into the business environment a loss of good manners.

E-mailing is as important as live phone conversations in today’s companies and many employers are losing customers, leads and dollars due to poorly handled e-mails. One can have their character, performance and intelligence pre-determined by the way they write, reply and use e-mail communication.

Let’s start with the basics of e-mail. There must be a subject line that demonstrates the core meaning of your e-mail message. There should always be a greeting as with any mail correspondence; that is just good manners. There should be a closing so as to not make you sound terse or annoyed.

Be sure you address the note with the same formality as you would in personal or business communication such as Dear Ms. Santamaria or Dear Rita. Always verify correct spelling of the person’s name and spelling within the body of the note. E-mails with typos are not taken as seriously or degrades the person’s intelligence level.

Read your e-mail out loud prior to clicking send so as to check the tone of your message. Choose words that reflect your meaning and try not to be abrupt. Using all capital letters give the recipient the

feeling you are screaming at them. Bolding your words show you are emphasizing a point and being emphatic. Using all lower case sounds like you are mumbling. Don’t abbreviate words like two, too, for “2” or you with “U”. You are giving a first impression of yourself over the electronic mail delivery system and abbreviations give your associates and clients the impression you are in a hurry, disorganized or uneducated.

The use of!!! and??? demonstrate too much emotion in an e-mail unless it’s a personal e-mail and that is your goal. If the intention is

not to have a personally charged tone in your e-mail, walk away from the computer, cell phone, relax for awhile and then reread your remarks and ask yourself if you were on the receiving end of the note would a working solution occur based on the wording and tone of the e-mail you are writing? Reviewing the sender’s e-mail to verify you are interpreting their message is a great suggestion. When in doubt, pick up the phone and call that person to verify the sender’s information.

Type complete sentences and use correct sentence structure. The use of thank you, please, how are

Austin | Dallas | Ft. Worth | Houston | San Antonio | Online www.ChampionsSchool.com

Open to the Public; TREC #0005 Lone Star College Tomball Provider #0123

CHAMPIONS SCHOOL OF REAL ESTATE®

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4543 Post Oak Place, Ste 130

West Campus281.496.7386

738 Highway 6 South, Ste 150

Providing Award-Winning Education Since 1983

Real Estate, Loan Origination, Appraisal and Home Inspection

Courses Available in Classroom, Online and by Correspondence.


you, and such are always good communication techniques and relevant to every e-mail and form of communication.

Teliquette or telephone techniques in the work place are a skill that requires continual training. First impressions are made by the greeting and tone of the receiver. Answering the call with “hello, thank you for calling Champions School of Real Estate, this is Rita” is always appreciated by the caller. Answering in a slow enough pace so as the person calling can understand the name of the receiver is important.

Remembering to be polite with thank you, and please will give the first impression people have of an entire company. Answering the phone call on the first ring is an example of the company being prepared and anxious to receive the call. If the call cannot be handled on the first few rings due to lack of call support, put a caller on hold and pick up the

other ringing line and get the new caller’s name and phone number or worst case basis, have caller go into voice mail. Remembering to check voice mail all the time and return calls right away is of primary importance. Never tell the caller how busy you are or that many lines are ringing, etc. That is not your client’s concern or problem to solve. Again, it makes you and your company sound disorganized and short staffed. This is not a good first impression of the company you work for.

Always say “thank you for holding” when you come back on the line from putting a caller on hold. Identify yourself with “this is Rita, how may I help you?” Do not sound agitated, too busy, disorganized when answering the phone as people can always call your competitor and perhaps get a happier more positive person to do business with.

Cell phones should be on silent

when in a personal face to face conversation with others. It is never good etiquette to answer a phone call when in a meeting. If absolutely necessary, excuse yourself and step out of the room to take an emergency call. It is not appropriate to talk out loud and answer your cell phone when at an event, meeting, church, seminar, and luncheon. Those wearing Bluetooth devices are no exception to remembering to turn off devices during meetings. The person sitting in front of you having conversation with you is the precedence of any phone call.

Teliquette or Netiquette can make and break your business success.

Rita Santamaria is the owner and founder of Champions School of Real Estate. Champions have many training seminars available for companies pertaining to work place Business Development. For more information www.ChampionsSchool.com or 800-284-1525


Entrepreneurs Tool Box Commercial Loan ChecklistBy Alvin E. Terry, MBA / Business Consultant, Dynamic Business Builders

EDITORIAL FEATURE

Getting prepared for that much needed “Commercial Loan” is a task in itself. Without the proper financing

businesses could not exist. Equity capital is financing, it just remains in the coffers just a little bit longer. Commercial Loan financing sources all have a checklist that is “Universal” to all Lenders. The information needed and packaged in a loan request file is the same where ever you go, anywhere in the World. This issue of SBT Magazine will contain an Application Information Checklist for Commercial Loans.

This list is all inclusive. Some items may not be needed, depending on the individual Lenders and their requirements. Reference material is always a good thing to have at all times. This list of items will help you understand just how in-depth a Commercial Loan Package can be. Not all Lenders will require all of the following documentation, but it will give you the power of knowledge and understanding in going forward and what is required in a successful package.

• Fannie Mae Form 1003 • Borrower’s Information for each Guarantor • Entity Identification (Corporation, Partnership, L.L.C) • Loan Request including Terms • An explanation on how the

funds will benefit the borrower and the business • Personal Resume’s • Personal Tax Returns for the last 2-3 years • Business Tax Returns for the last 2-3 years • Bank Statements for the last 2-3 months • Equity and Source of Equity • Collateral • Business Financial Statements less than 60 days old • Schedule and Aging of Notes Payables • Purchase Contract or Purchase Option Agreement • Price quotes for any equipment to be purchased • General Contractors information, Insurance and references • Estimated cost of Construction or Rehabilitation • Plans and Specifications • Land and or Lot information • Present Improvements • Current Surveys • Phase I or II Environmental Reports • Most recent Appraisals • Insurance Carriers/Agents • Rent Roles • Market Analysis • Traffic Counts • Operating Projections • Existing Indebtedness, terms, maturity Dates, Features • Existing Banking

Relationships and Contacts • Credit Authorization Releases • Commercial Loan Brokerage Agreements • Confidential Non- Circumvention Non- Disclosure Agreements • Consultants Retainer Fee Agreement if applicable • A Current Business Plan • CPA’s • Attorney of Record • Licenses if applicable • Purchase Orders • Factoring Agreements • Suppliers • Typed Transmittal Summary • Tax ID’s • Current income Statement and Balance Sheet • Title Commitment • Insured Closing Letter from Title Company • 4506T • Business Credit Report • Personal Credit Report • Copy of Social Security Cards Copy of Driver License • Proof of Residency

This list is pretty comprehensive. Depending on your Lender, each one will have their own list. I hope that this will give you a guide in which to work from.

You can contact Alvin E. Terry, MBADirectly at 713-392-9107 or by email at [email protected]

ENTREPRENEURS WORKBOOK


The Case for email @ Your OWN DomainBy Erich Fruchtnicht

EDITORIAL FEATURE

Something that all small business owners will learn sooner or later is how important it is to appear "big" to your potential

customers and business contacts. If you act like your company is big, powerful, and completely capable of meeting their needs, then your customers and partners will believe it!

There are many little things that go into painting the picture of "big, powerful and completely capable." For example, it is a good idea to have professionally designed and printed business cards, and an email address on those cards that ends in your own domain name or web address. Having both an email and website address that match can motivate people to investigate your site since it appears that you are "big" enough to have your own domain, and committed enough to take the time to set it up thoughtfully. This is useful since getting one's own domain is actually quite affordable for having such a large impact.

Think of it this way: if you met Bill Gates or Warren Buffet at a business investor meeting would you expect them to hand you a business card with an email address that ends in @hotmail.com, or @gmail.com? Certainly not! You would expect a domain name that had something to do with their brand: Berkshire Hathaway, Microsoft, or the Bill and Melinda Gates Foundation. In a way, it would show a lack of faith in and passion for their brand if they used a cheap or free email service since they are distancing themselves

from their own company's name. After all, if they are doing so poorly that they have to use a free email service as their professional email, do you really want to be doing business with them?

As a small business owner, you are the leader of your own team and your own brand. If you don't wear the team jersey to the game and bring the passion, no one else will. If you want to be a big fish and own a successful company, do what the big fish do with their successful companies. No part of this process could be cheaper than professional business cards and a brand related email address.

If you have been following the last few articles I have written, you will know that I have been discussing a "fast look" at building a successful website. Part of that process involves getting your own domain name and hosting account. I mentioned in that article that many, if not most, website hosting providers include email addresses with your hosting account "@yourdomain.com".If you are not ready to take the plunge on a website yet, you can buy an "email hosting" package at any reputable hosting provider (GoDaddy, Lunarpages, Network Solutions, and Verio to name a few). I would recommend that you get a website set up along with the email because you are missing out on customer "face" time without an online presence, but email hosting is there if you need it.

As an example of how affordable this service can be, here are some of the

prices listed on the sites I mentioned above:

• GoDaddy - from $1.29/month for the very basic package

• Lunarpages - from $2.95/month for a great mobility package

• Network Solutions - from $1.75/month for the basic package

• Verio - from $11.95/month for hosted Microsoft Exchange

Each of the providers above offer multiple packages and features, but I just listed one each as examples.

Essentially, all of the above is meant to drive home the point that branding is of paramount importance as a small business. I always tell my clients that they must present a unified marketing or branding "face" to their customers. Having a matching email address and website address that are relevant to your company name or industry are key parts of this unified look.

A unified appearance and commitment that demonstrates "big, powerful, and completely capable" will encourage people to do business with you, which is the end goal at the end of the day.If you have any questions about this or another topic feel free to contact me.

Erich H Fruchtnicht is President / Principle Designer at TGDesign, LLCwww.trinitygroupdesign.com or email him at [email protected]

ENTREPRENEURS WORKBOOK


EDITORIAL FEATURE

Business Lessons on Crisis Management, Learning From the Titanic...How Statistical Perspectives MatterBy Hank Moore / Corporate Strategist™

BIG PICTURE OF BUSINESS

The 100th anniversary of the sinking of the Titanic has caused many people to reflect on the glamour that was lost and the opportunities that faded.

This is the first use of the Titanic as an analogy to business. The Titanic was a monument to human folly and arrogance. It started with pomp and potential. Yet, it turned into a lot of what-ifs and missed opportunities. So, too, is business, who should learn the lessons from the economic downturn and the corporate scandals.

One of my books is entitled “The High Cost of Doing Nothing.”

Each year, one-third of the U.S. Gross National Product goes toward cleaning up problems, damages and otherwise high costs of doing either nothing or doing the wrong things.

On the average, it costs six times the investment of preventive strategies to correct business problems (compounded per annum and exponentially increasing each year). In some industries, the figure is as high as 30 times...six is the mean average.

The Titanic

One of the greatest tragedies in history, the sinking of the Titanic, can be attributed to carelessness, insufficient planning and stubborn pride.

People literally went down with the ship while still quoting the ship's marketing hype, "Everybody knows this ship cannot sink." They really believed the spin and rationalized it as a false hope to avert disaster. They were so sure, thought tragedy could not happen to them, believed themselves to be invincible, had false senses of security and exhibited unnecessarily stoical behavior when confronted with the harsh realities of death.

In 1912, the Titanic, a Trans-Atlantic ship on its

maiden voyage, hit an iceberg and sank. Though some people escaped by life boats, there were still 1,502 people killed.

If any of these had occurred, chances are that every life would have been saved. The Titanic would not have sunk if any of these precautions-actions had occurred:

• Management...had the ship's officers heeded one of the six iceberg warnings.

• Planning...had the ship's design required better lighting to see a potential collision.

• Timing...had the ship hit the iceberg 15 seconds sooner or 13 seconds later.

• Planning...had the water tight bulkheads been one deck higher.

• Supplies...if the ship had carried enough life boats.

• Regulations...had the distress signal to a nearby ship been heeded and acted upon.

Not only did the people die, but it was the end of an era in travel. Credibility toward steamships was shaken. Safety became more important in the luxury travel industry. Other forms of travel could serve customers better, faster and cheaper. Concern for corporate savings at the expense of quality was raised.

Think of other disasters that brought similar concerns home and forced major changes in planning, policy, safety, implementation and accountability:

(1) Fires and collapses in commercial buildings, due to use of sub-standard materials or improper safety precautions.

(2) Citizen outcries over prejudice, hate and bigotry actions by people in charge.

(3) Unnecessary duplication of services by public sector and non-profit entities.

(4) Chemical plant explosions.

(5) Improper discharge of substances into the ozone.

(6) Maneuvers, where improper planning cost property and lives.

(7) Insensitivity of organizations to their customers.

Learning More from History

The basic cause of World War II was a failure to uphold the peace treaty following World War I. Countries let circumstances fester (notably the Hitler regime) that paying attention to and adherring to the peace treaty would have precluded.

"They can't hang you for saying nothing," quipped President Calvin Coolidge in the 1920's. He spent more time doing chores at his farm and taking long naps than taking care of the nation's business. Coolidge prided himself upon doing little and, thus, failed to see crises brewing during his presidency. This "keep your head in the sand" mentality is prevalent of people who move on and let others clean up the damage.

Throughout the 1920s, the U.S. spent $50 million per year in trying veinly to enforce the highly unpopular Prohibition Act. Bootleggers, racketeers and mobsters made billions of dollars and established footholds in territories that were impossible to retract. An unpopular law spearheaded by a zealous few was never really enforced, and its criminal perpetrators became "folk heroes" to many.

People at Work

The current success rate for organizational hires is 14%. If further research is put into looking at the total person and truly fitting the person to the job, then the success rate soars to 75%. That involves testing and more sophisticated hiring practices.


Retaining good employees, involving training, motivation and incentives, is yet another matter. According to research conducted by the Ethics Resource Center:

• Employees of organizations steal 10 times more than do shoplifters.

• Employee theft and shoplifting accounting for 15% of the retail cost of merchandise.

• 35% of employees steal from the company.

• 28% of those who steal think that they deserve what they take.

• 21% of those who steal think that the boss can afford the losses.

• 56% of employees lie to supervisors.

• 41% of employees falsify records and reports.

• 31% of the workforce abuses substances.

One out of every 20 employees has substance or alcohol abuse problems...with resulting behaviors which in turn adversely effect another 20 people in their lives. Employees with substance abuse problems cost their companies $7,000 per year in downtime or lost days, $9,500 in make-good and work redo and another $15,000 in opportunity and credibility costs to the organization. Companies with good Employee Assistance Programs reduce these high costs and retain the services of valuable workers.

The old adage says: "An ounce of prevention is worth a pound of cure." One pound equals 16 ounces. In that scenario, one pound of cure is 16 times more mostly than an ounce of prevention.

Human beings as we are, none of us do everything perfectly on the front end. There always must exist a learning curve. Research shows that we learn three times more from failures than from successes. The mark of a quality organization is how it corrects mistakes and prevents them from recurring.

Running a profitable and efficient organization means effectively remediating damage before it accrues. Processes and methodologies for researching, planning, executing and benchmarking activities will reduce that pile of costly coins from stacking up.

Doing nothing becomes a way of life. It's amazing how many individuals and companies live with their heads in the sand. Never mind planning for tomorrow...we'll just deal with problems as they occur. This mindset, of course, invites and tends to multiply trouble.

There are seven costly categories of doing nothing, doing far too little or doing the wrong

things in business:

1. Cleaning Up Problems: Waste, Spoilage. Poor controls. Down-time. Lack of employee motivation and activity. Back orders because they were not properly stocked. Supervisory involvement in retracing problems and effecting solutions.

2. Rework: Product recalls. Make-good for shoddy or inferior work. Poor location. Regulatory red tape. Excess overhead.

3. Missed Marks: Poor controls on quality. Fallout damage from employees with problems (For example, a substance abuser negatively

impacts 20 people before treatment is applied.) Under-capitalization. Unsuccessful marketing. Unprofitable pricing.

4. Damage Control: Crisis management. Lawsuits incurred because procedures were not upheld. Affirmative action violations. Violations of OSHA, ADA, EEOC, EPA and other codes. Disasters due to employee carelessness, safety violations, oversights, etc. Factors outside your company that still impede your ability to do business.

5. Recovery and Restoration: Repairing ethically wrong actions. Empty activities. Mandated

Continued on page 14


cleanups, corrections and adaptations. Employee turnover, rehiring and retraining. Isolated or unrealistic management. Bad advice from the wrong consultants. Repairing a damaged company reputation.

6. Retooling and Restarting: Mis-use of company resources, notably its people. Converting to existing codes and standards. Chasing the wrong leads, prospects or markets. Damage caused by inertia or lack of progress. The anti-change "business as usual" philosophy. Long-term expenses incurred by adopting quick fixes.

7. Opportunity Costs: Failure to understand what business they're really in. Inability to read the warning signs or understand external influences. Failure to change. Inability to plan. Over-dependence upon one product or service line. Diversifying beyond the scope of company expertise. Lack of an articulated, well-

implemented vision.

7 Primary Factors of The High Cost of Doing Nothing™ :

1. Failure to value and optimize true company resources.

2. Poor premises, policies, processes, procedures, precedents and planning.

3. Opportunities not heeded or capitalized.

4. The wrong people, in the wrong jobs. Under-trained employees.

5. The wrong consultants (miscast, untrained, improperly used).

6. Lack of articulated focus and vision. With no plan, no journey will be completed.

7. Lack of movement really means falling behind

the pack and eventually losing ground.

What Could Have Reduced These High Costs:

1. Effective policies and procedures.

2. Setting and respecting boundaries.

3. Realistic expectations and measurements.

4. Training and development of people.

5. Commitments to quality at all links in the chain.

6. Planning.

7. Organizational vision.

Hank Moore/Corporate Strategist™ Phone: 713-668-0664 Website: http://www.hankmoore.com Email: [email protected]

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In a world of off-the-rack imitations, custom tailored garments by G. Ernest Designs are of such impeccable taste, others immediately recognize you as a leader. When you walk through the door of your office, your client’s office, your club, community or philanthropic organization you do so with confidence, knowing your apparel is just right.

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EDITORIAL FEATURE

Continued from page 13

BIG PICTURE OF BUSINESS

Seller Second Lien Financing & Small Business Transactions Financed with SBA LoansBy Bruce Hurta

SBA loans provide an excellent alternative to conventional bank financing when purchasing a business or small business real estate. Small business borrowers

can use SBA loans to accomplish lower down payments, longer repayment terms, and easier qualifying criteria than conventional bank loans. Sometimes, however, a small business may be marginally qualified for SBA financing, and a small amount of seller second lien financing can make the transaction happen. In general, seller second lien financing is used to supplement the buyer’s qualifying equity in cases where the buyer is providing at least a 10% down payment.

Many business lenders do not allow second liens behind their primary loan, but most SBA lenders do allow it. The most common form of second lien financing is from a seller who wants to help the buyer qualify for primary financing where a business is being acquired,

or business real estate is being purchased. Small business borrowers usually want to preserve cash for business operations, and they are reluctant to part with down payments sufficient to satisfy equity requirements of their business lender. In these cases, if the seller agrees to subordinate their second lien to the SBA lender, and if the seller agrees not to take payments until the SBA loan is satisfied, SBA allows that second lien financing to be treated as part of the buyer’s qualifying equity.

Why would a seller of a business, or a seller of business real estate, agree to carry some second lien financing on a standby basis? In many instances, the seller is anxious to sell the business or business real estate as soon as possible. Since the seller is receiving a large amount of cash from the buyer’s down payment, plus the buyer’s loan proceeds, they may be willing to carry a small amount of

second lien financing. This action allows the seller to delay some of their income tax liability and provide them with a better than market interest-earning asset. If the seller believes the buyer will continue to be successful with their business, they know they will be repaid on the seller financing when the primary loan is satisfied. For a business acquisition scenario, the buyer and the lender like to see seller second lien financing, because the seller still has some “skin in the game” to make sure the ownership transition is smooth and successful. Also, the seller often enjoys offering seller second lien financing, so they don’t have to negotiate further with price reductions.

Bruce Hurta is Business Lending Manager with Members Choice Credit Union. You can reach him at 281-754-1112 or by email [email protected] For other educational articles on SBA loans, see Bruce Hurta’s blog at http://brucehurta.wordpress.com/.

www.SBTMagazine.net SMALL BUSINESS TODAY MAGAZINE AUGUST 2012 | PG 13www.SBTMagazine.net

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For those desiring a “house call” to maximize their image with the finest quality

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by phone at

or by Email at [email protected]

Personally select fabrics for your bench-made suits, sport coats, shirts, slacks, top coats, custom shirts, formal wear and dinner jackets. Each item is custom-made to the client individual measurements.

Your time is so valuable. Gil calls on his clientsat their office, personally assisting you in selecting fabrics, linings & all the details of your new custom made clothes.

Gil Garza has 30 years in the custom clothing design business.

Gil Garza owner of G Ernest Desgin

In a world of off-the-rack imitations, custom tailored garments by G. Ernest Designs are of such impeccable taste, others immediately recognize you as a leader. When you walk through the door of your office, your client’s office, your club, community or philanthropic organization you do so with confidence, knowing your apparel is just right.

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Top 5 Reasons to Outsource Your Social Media CampaignBy David T. Domzalski

EDITORIAL FEATURE

Twitter. Facebook. Pinterest. Linkedin. Digg. YouTube. Reddit. Vimeo. DartItUp. Manteresting. Gentlemint. Chill. StumbleUpon. The

Fancy.

Shall I continue? I can if you want me to, but I think I made my point. There are a ton of social media sites out there. As a small business owner, you probably have registered on one or two. Most likely, it’s Facebook or Twitter. Maybe Pinterest if you are really that bold.

But, has it really been worth it for you? The more I see with regard to social media for small businesses, the more I find it extremely disappointing. Granted, there are some out there that do a great job. Here in Newtown, PA, I can point to a few bars and restaurants that have amassed their fair share of “likes” and “re-tweets.” In addition, they maintain fairly active social media accounts with drink specials, meal specials, and pictures of people enjoying themselves at their establishments.

However, those results are few and far between. Given that my company, Financial Bin, is exclusively online, I know the importance of social media. It’s the lifeblood of my business. That said, just because your business is local, that doesn’t mean social media cannot have a great affect on your success as well.

Instead of letting your social media

campaign wither and die, why not outsource it completely? It’s something I like to call staging a “Social Media Intervention.” Consider these five tips to get you started:

1. Hire a Social Media “Contractor.” Forget about hiring somebody to join your team. Hire a contractor instead! This way, you can let the person run with the ideas you two develop without being tied down to the person. Don’t like how the relationship or partnership is working out? It’s easy to cut the cord and look elsewhere.

2. Your Employees Can Re-Focus. Why is your host or hostess tweeting instead of showing customers to their table? Why is your bartender taking pictures instead of mixing drinks? They should not be! Let your employees focus on what you hired them to do. Service will be much better, your customers will “LIKE” that about you, and they will show the love on your social media outlets.

3. It Costs You Less. Remember how you hired a contractor over an employee? This saved you money. You simply pay based on your agreement. There are no dental or medical benefits to pay. You do not have to train anybody. They are the expert. You simply just write the check as long as they do the job.

4. It’s Off Your Plate. You’re a small business owner. Chances are you fit the old cliché of being the “chief

cook and bottle washer.” Well, by outsourcing your social media efforts, you can take “social media manager” off of your resume. You can focus your time on running your business and not your business’s Facebook page. If you were having any success with your social media accounts, you know it takes some work to really keep up with them. Well, congratulations! It’s one less thing on your plate.

5. Your Chances of Success Increase. Finally, here’s the kicker. You will be more successful in your social media endeavors by outsourcing it to a contractor or consultant with more expertise than you. A quality social media consultant will have knowledge of the latest trends that fit for a restaurant or for a small tax firm. Just let go a little and let the contractor take over. Make sure to check in with them once a week and give them everything they need. But allow them to truly take it off your hands and provide another solid avenue to drive business.

In the end, business is about relationships. Whether offline or online, to be successful today, it takes a fine balance of both.

David T. Domzalski is the founder of Financial Bin, a media company focused on personal finance and entrepreneurial education for Generation Y. You can contact David through email or visit his website: FinancialBin.com and [email protected]


Some politicians argue that teacher unions are to blame for our school’s failing grades. Others cite low pay and federally mandated standards for America’s mediocre rating of

29th in the world. While angry fingers point in opposite directions our kids continue to become the losers. However, creative entrepreneurs having experience in both business and education may be able to help stop the bleeding. Using new technology, a viable, less expensive alternative has been created that places one-to-one education on the doorstep of needy students that seek essential tutoring to either keep up or advance their individual education.

An experienced businessman in Sugar Land, Texas, has assembled a top level team of business people to bring about a new form of traditional tutoring. Formerly the CEO of the International Center for Distance Learning in Boston, Leonard Faucher has created a company known as Core Curriculum Coaching or CORE. With new and better SKYPE type technology that permits both one-to one and as many as one to fifteen participants, his company plans to revolutionize traditional education. CORE targets all students living anywhere in the country that need basic help in core academic subject areas. “I’ve got state certified teachers from everywhere in the country ready to deliver videoconferencing tutoring in every subject and they can teach from the privacy of their homes without traveling anywhere.” Faucher claimed. A former teacher himself and current professor in business at Houston Community College, Faucher has improved the Internet video technology to include an interactive white board which he claims is essential for teachers to deliver effective learning. Faucher also believes that students are the best to adapt to his new technology and relates their avid skills in video games and love for smart phones make them perfect users of CORE technology. CORE offers monthly programs of either once or twice a week tutoring for grade 3-12 students and also offers specialized instruction of classes of no more than six students. “Text based on-line education has almost maxed out its purpose and it will not take much more time

to realize that the best form of education has always been face-to-face live contact with a teacher.” Faucher offered. And “… with today’s technology, the emotions, veracity, and conviction of a teacher’s involvement can now influence the important behavior of our CORE students” Faucher insisted.

Relying on an active Board of Advisors to promote CORE’s philosophy, Faucher has enjoined experienced educators with doctoral degrees to present weekly webinars to CORE parents and instructors. “All our students receive a simple and quick seven point behavioral test which we use to help identify and strengthen the weakness of students entering our programs.” Faucher explained. “Every week one of our board members presents an audio only webinar addressing something helpful to parents that can best understand the learning process of their child or the educational system in which the student is attending” Faucher elaborated. “We’re not just cashing in on our business but want to do everything humanly possible to improve our kids learning.” Faucher concluded. CORE has also established its own non-profit foundation that will make it easier to receive donations for student scholarships and receive volunteer tutoring from retired and experienced educators not looking for compensation.

The new startup company also plans to create local advocates of its unique program by establishing community franchises around the country. These franchises will be owned and operated by experienced educators either from an office or

their home. CORE is offering complete turnkey franchises starting at $7,900. CORE is one of many educational firms that are involved with grassroots initiatives in order to address weaknesses in our public schools. Anyone interested in CORE should go to www.CoreCurricum.net.

John Cruise is co-publisher of Small Business Today Magazine, a Houston area Television and Radio Host, and currently assists in outreach for the Goldman – Sachs 10,000 Small Business Development program.

EDITORIAL FEATURE

Business and Education... A NecessityBy John Cruise


Trust: It's the Now Social CurrencyBy Mike Muhney

Social is the new normal, as experts suggest and the masses demonstrate, and it operates on an even

more precious commodity than exposure. That currency is trust. While advancements bring new opportunities for success, they often bring with them dangers, as well. For that reason, more than ever before, we need to proceed with caution in the area of technological advancement.

What is ultimately at stake here is a priceless element of our reputations and lives—the trust factor. We extend trust to others in hopes that they will also extend trust to us. This exchange helps us to determine the type and quality of our personal relationships. But be warned, while social media can position you in the right place at the right time, you might unwittingly find yourself in a more vulnerable position than you had intended to be.

New technology, as we all have experienced it, changes our views and affects how we think and feel. It can even change our culture. These broader cultural changes happen with or without our consent, but we do have control over how we incorporate new technology into our personal lives.

A few of these changes we don’t even think about anymore; we’ve simply become resigned, even

complacent. First, in many metro areas, we are being watched all the time. It’s even been said that we are always on camera, whether it’s a traffic camera, a security video, or even in the background of the local news B-roll. We are being watched all the time. Second, so many people today are equipped with cameras on their mobile phones, and can at any time take our picture, or perhaps more intrusively, record us on video, anywhere, at any time.

Yet these changes hardly ever cross our minds. We walk around complacently, with our guards down. Not a good thing. With platforms like Twitter, YouTube, and Facebook, nothing is hidden, or rather protected, from the public eye.

Enter the prospect of Google’s “Project Glass,” eyewear that allows users to meld their real-time experiences with online and social information. In case you haven’t heard the buzz, Google is developing glasses with cutting-edge “computerized augmented reality head-mounted display” technology. It’s a very interesting concept, until you imagine yourself on the other side of the lenses, being recorded and perhaps reported on to the wearer.

Too often progress takes precedence over privacy. A simple Internet search on the phrase “digital dependence” yields tens of

millions of hits. There’s no shortage of findings on the effects of these technological advancements and our adoption of them in our daily lives. What is less often the topic of discussion are the intangible consequences. What we lose—namely privacy or those private exchanges that build trust.

Just look around you—in a restaurant, shopping mall, or airport—chances are, more people are looking at their smartphones than those having actual face-to-face interactions. They are too busy being social on social networks to be personal in person. Let’s be honest with ourselves here; the they I have been referring to is us. We’re all guilty of this disconnection from time to time; however, we’ve got to keep in mind what is at stake at all times—namely, the essential elements that contribute to the construction or destruction of our real relationships.

Just like the money we exchange for goods or services, the social currency we exchange in order to build and maintain meaningful relationships is trust. If we lose that trust with each other, what do we have?

Mike Muhney is the CEO of VIPorbit Software and the co-creator of VIPorbit Mobile Relationship Manager app for iPhone and iPad. VIPorbit.com

EDITORIAL FEATURE


Changing the Tires on a Moving TruckBy Craig Klein / CEO, SalesNexus.com

EDITORIAL FEATURE

Recently I was honored to speak at the annual conference of the Transportation Expeditor’s Association of North America. These guys are shippers and

truckers that shippers and truckers call on when they’ve run out of time.

There were a number of great speakers and presentations and much of it focused on improving your Internet marketing presence and reaching a wider audience.

In talking with many of the people I met during the conference, a theme emerged that is illustrated by the following conversation between myself and one of the conferees:

What’s the most stressful part of your job?

• Finding and closing new business.

What’s your number 1 priority for this year?

• Growing sales!

What are you going to do differently?

• Well, we’ve got a good system, I just need to find time to do more of it.

So, you want to do more of what’s already stressing you out?

• Uh, yes, I guess you have a point.

Then we talked for a few minutes about how implementing a Customer Relationship Management system and on-going lead nurturing emails could allow them to reduce the frantic, stressful, “chase” nature of sales and I asked, “Do you have a centralized customer information system, CRM or sales automation system in place today?”

And of all the times I had essentially the same conversation throughout the course of a few days, the answer was no. Then I’d ask, “Why not?” and heard answers varying on the theme of “I know we need one, so we can measure what’s happening, track our sales pipeline and nurture leads but, we just haven’t gotten around to it.”

Finally, one particularly illustrative gentleman said, “It’s like changing the tires on a moving truck!” What a great analogy!

Here we all are losing sleep at night trying to grow our businesses, thinking about better ways to do things but, even when we have it all figured out, there is still the road block of trying to change our processes and approaches while taking care of business every day.

Even the best laid plans are derailed by the real world. You can spend the weekend writing a series of power packed emails to send to past clients to reconnect with them but, on Monday morning, you’ve got 2 or 3 urgent client calls to return or one of your employees is out sick and so, I get distracted and let the email project get buried.

When it comes to changing processes for several people on your team the trade-off is even more difficult to fight through. Each team member deserves input on the changes and needs time to understand them and adapt to them. But, how many businesses can afford to distract their entire sales team for several days?

Is there a way to change the tires on your sales truck while it’s steaming down the road? Yes, there is!

The reason most of us find it so difficult is that our nature as business owners makes us impatient. We want to have a meeting, decide what we’re going to do, then do it and see the results immediately. No messing around. But, that won’t work when you’re changing processes, selecting technology solutions, installing software and training employees. It’s going to take time.

Our company has been providing a CRM implementation process, to our clients, that allows the sales team to have input but, stay focused on hitting their numbers for the month while the new system is set up in parallel and planned out thoroughly enough to ensure fast and easy transition.

The good news is that you can do it too, all on your own.

The first step is to give yourself plenty of time. Don’t rush it unless there is a very good reason to. Get everyone together to discuss the process, what’s working now, what could be improved and then document the process as you envisioning it working in the future.

Then try it out before you waste time with technology. Just try following your new sales process with real customers one or twice to see how it flows and what you may have forgotten.

Often just keeping a centralized customer information system is the first big step. Sometimes it makes sense to start by simply emailing a spreadsheet around to start getting everyone in the habit. Or maybe there are other simple technologies you can “activate” with little disruption.

Start tracking what you can and measuring things as best you can for a while. See what happens. See what needs to be adjusted. See which employees have big problems with it.

Only go select the technology after you’ve been experimenting like this for a while. Otherwise, your buying new shoes without know what size foot you have.

Then customize the software or systems “in the lab” and give yourself plenty of time to do this in your spare time. Let the sales team keep doing what they do. Show them the progress you’re making and get their input. Adjust accordingly.

When you think you’re ready, document the required process for each employee involved. Test the workflows out using real world scenarios.

Now, schedule training for your sales team, at this point, they should be prepared for the changes and the technology should be tested and ready to support their needs. This disruption to your sales team should be relatively minimal. But, looking back on it, you’ll probably find it required more time for you and anyone else involved in the set up process than you expected.

You can change the tires on a moving truck but, you need to know it’s going to take some time.

Craig is the founder of SalesNexus.com. For more information visit www.SalesNexus.com


EDITORIAL FEATURE

Getting Dressed for Work in Your Home OfficeBy Jane Seaman AICI FLC

More and more people are working from home whether they are solo entrepreneurs or they have the option of conducting some of their business off-site a few

days a week. It would seem easy to stay in your pajamas or workout clothes all day, but is that really the best uniform for you?

The home office could have a more casual dress code, certainly. But to eliminate it all together could be a mistake. Paying attention to your grooming and your attire even if no one will see you could give you a structure to your workday that benefits you and increases your productivity. The routine of getting ready for work is one worth keeping even if you’ve moved your office into a spare bedroom.

Did you have a morning routine when you used to go into the office? Keep a part of it or all of it. Take the time to shower and groom yourself for the workplace. Ladies, apply makeup, even

if it’s minimal and gentlemen shave, take the time to show up to your place of work looking sharp. Get dressed for the day before you get sucked into email.

Even though the distance to your office may be seven steps to the spare bedroom down the hall, don’t skimp on your morning “me” time. Have your cup of tea or coffee. Read the paper or something inspiring. Review your goals or affirmations. Have something to eat. Prepare to go to work.

When it comes to getting dressed, don’t pull clothes from your workout pile or grab something that’s been tossed into the back of your closet. Be intentional. If you want to make a bridge from your home life to your work life, use the language of clothes to make the point that you’re going to work. Instead of throwing on an old T-shirt, wear a non-iron shirt instead. Don’t wear that cardigan with the missing buttons or the coffee stained sweatshirt;

choose something clean and pressed and add comfy, clean, shoes rather than slippers.

You have the freedom to create your own dress code. Identify what works for you and what represents your business? Maybe you say yes to jeans but team them with a great top, tee, polo or dress shirt. Maybe you say no to jeans and prefer a business casual look. Whatever you decide on your business dress code remember it deserves thoughtfulness and respect.

If you would like help developing your business dress code, then please visit me at www.imagineconsultancy.com

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FISCAL MANAGEMENT & RESPONSIBILITY

EDITORIAL FEATURE

Hanging the "Help Wanted" SignBy Cyndi Barnett, Certified Financial Planner™, Certified Tax Specialist™

Toward the end of 2011, an index that measures the hiring intentions of small businesses rose to its highest level in three years, and another report estimated that small businesses

have added about 1.2 million new jobs since October 2009.1,2 All told, businesses with fewer than 500 employees have created about 65% of new jobs in the United States over the last 20 years.3

Business owners may need to invest a fair amount of time and money to build a good team. Adding a salary can be substantial by itself. However, you must consider the potential

costs and responsibilities beyond wages when you are ready to hire new staff members.

Begin with the Big 4

Benefits: Employers that provide benefits such as health and dental plans, disability coverage, and life insurance may need to factor in costs ranging from 1.25 to 1.4 times the base salary. For example, an employee who earns $35,000 annually may actually cost the employer $44,000 to $49,000. You may also need to increase the budget for perks provided to existing employees – from free coffee to holiday parties and bonuses.4

Recruiting: It’s not always easy to find the right fit for a new position. There are potential expenses associated with recruiting, including advertising, drug screenings, background checks, as well as the cost for someone to review resumes, screen applicants, and conduct interviews.

Training: Getting new employees up to speed and making sure they become as productive as possible can also be expensive. Employees spend an average of 32 hours a year on training, and new hires often need additional time to learn the ropes. One report estimated

Continued on page 40

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EDITORIAL FEATURE

Africa, The Last Frontier: Positioning Your Business to Go GlobalBy Debra Bann

Let’s face it, Africa is the world’s richest continent. It has more gold, cobalt and diamonds than anywhere else in the world and sells more oil to America and China than the Middle

East. The continent has 10% of the world’s oil reserves, 40% of its gold and 80-90% of the chromium and the platinum group metals. Yet it has been portrayed mercilessly as a corrupt, violent, poor and needy continent by the media. In an effort to change this perception, I will examine the facts to show that Africa, truly is the last frontier and we, as small businesses, can play an important part in its development and grow our businesses in the process.

Let’s check the facts. The political landscape is changing. Twenty five years ago only 3 out of the continent’s 54 countries were democracies. Today more than 40 countries hold regular multi-party elections. At the same time, sub-Saharan economies have routinely grown at nearly 7% per year over the last five years and cleared well over $50 billion of debt. Even during the recession, that growth has averaged around 5% while the US and EU hover around 2%. In 2008, Africa had a collective GDP of $1.6 trillion, equal to Brazil and Russia. By 2020 aggregate GDP is expected to be $2.6 trillion according to the McKinsey Global Institute. The Economist and IMF report that from 2000 to 2010, six of the world’s 10 fastest growing economies were in sub-Saharan Africa and between now and 2015, it will be 7 out of 10. It goes without saying that there are still major challenges Africa must overcome, but the signs of change is encouraging.

Changing the Perception of Africa

The perception of Africa as an undesirable investment destination is also changing. Private capital, access to international capital markets, more economic stability, increased urbanization (40% and increasing), the rise of the middle-class African consumer, (about 313 million people representing 34% of the

population, on par with China and India), Africans investing in Africa and more stable currencies across the continent is creating a new financial and investment landscape in Africa. According to Ecobank CEO, Arnold Ekpe, “Africa remains the last frontier in a very positive sense. The opportunities available today will not be available in 10 years time.” (Ecobank is one of the largest regional commercial banks operating in 32 African countries and has invested more than $600 million in the banking industry in Africa.) By 2030 the continent’s top 18 cities could have a combined spending power of $1.3 trillion.

Opportunities in Africa Abound

Africa’s top 6 trading partners are China, Russia, India, Brazil, Korea and Turkey. Trade between Africa and its new partners is now worth $673.4 bill USD a year (www.AfricanEconomicOutlook.org). The inflow of capital is invested in industrial capacity, financial products, healthcare, power generation facilities, sanitation and clean water production to name a few. However there are many opportunities in tourism, transportation, agriculture and agribusiness, extractive industries, housing, communications, pharmaceutical, green energy, information technology, aviation, manufacturing, science and education.

The benefits of early entry into African economies provides opportunities to create markets, establish brands, shape industry structures, influence customer preferences and establish long term relationships. Business can help build the Africa of the future. Just ask Coca Cola, Caterpillar and IBM, who have been investing in Africa for decades. Even companies like Google, Microsoft, Cisco, and HP among others are moving quickly to invest and establish a presence.

Deciding to Go Global

So how do you take advantage of these

opportunities? You can visit the local offices of the African Consul Generals, attend local events that have a focus on Africa such as the Texas Africa Business Summit (www.texasafricasummit.com), go on trade missions to various African countries and meet with companies that are already doing business in Africa. The US Department of Commerce is a wealth of information (www.trade.gov). You can also contact a B2B matchmaking company such as Digi Marketing International (www.digimarketing.us) that can find you business partners to take your business global.

Deciding to go global and do business in Africa is no picnic. There are many pitfalls including political considerations, legal rules of engagement, local culture and language, customs issues, various barriers to trade, market fragmentation that obscures cross border trade, high trade costs, weak infrastructure, high transportation costs and logistics, and more. While these considerations can’t be avoided, US small businesses can find and partner with African businesses that are already established and have found ways to deal with these issues. African businesses would like to partner with more US businesses because of the quality of the products and technological expertise we can provide. We cannot allow a vibrant future to be obscured by old assumptions and stereotypes. It is up to you to diligently research emerging African markets and make that decision to go global. The payoffs can be highly rewarding.

Debra Bann is Executive Director of Digi Marketing International, a management and marketing solutions firm specializing in marketing communications, B2B matchmaking and special events coordinating. She is also the Executive Director of the Texas Africa Business Summit. Contact her at 713-771-6786 or visit www.digimarketing.us and www.texasafricasummit.com .

www.SBTMagazine.net

Grow Your Sales

Take a Free Test DriveToday!

713 - 862 - 0001or visit www.salesnexus.com


EDITORIAL FEATURE

Your Next StepThe Priority Box: Advance Your Business While Still Maintaining Balance in Your LifeBy Jack Warkenthien

Nature has given man but one thing we fully control: our thoughts. Everything mankind creates begins in the form of thought. This is truly a reflection of our divine nature. Our

competitive advantage on earth is centered around our brain. The brain is comprised of over 14 billion cells, each working in harmony with all others in this fascinating mass of gray matter. In high tech jargon, if we were to compare our mind’s MIPS (millions of instructions per second) to other computers, we possess the equivalent of a $2 billion supercomputer between our ears.

Mother Nature is not always fair, however. We were never given an operator’s manual. Furthermore, our brains are almost fully programmed by the time we are three years old.

Now, the good news: knowing you own this supercomputer, the best investment you can make is “software.”

Software, in the human sense, speaks to the myriad of educational and professional development openings available. Among more common options from which to choose:

Books

CDs and DVDs

Workshops/classes/seminars/clinics;

TV/Radio;

Computer links.

Not only will your confidence increase as you develop new skills, you will be able to use your new knowledge and training in your pursuit of professional advancement and prosperity. Therefore, begin to “mine your mind” for your journey through life.

Arie De Geis, former CEO of Royal Dutch/Shell, often stated, “The ability to learn faster than our competitors may be our only sustainable competitive advantage.”

Challenge yourself with monthly professional development goals to help you learn. A few sample objectives are:

Read a minimum of one book per month;

Listen to one audio book each month;

Attend a minimum of one seminar or workshop per quarter;

Develop a new skill (or enhance an old one to proficiency) by year-end.

You will soon realize there are very few investments that have a higher return than investing time, energy and money in yourself. But there are also choices to make and tradeoffs to consider.

When we finally decide to invest in ourselves, one objective, above all, should be to establish and maintain balance in all areas of our life.

There are really five distinct areas that need constant attention, focus, and development, regardless of our personal circumstances, to be in balance:

Professional: Career and financial

Personal: Family and social

Physical: Health and wellness

Psychological: Confidence and self- esteem

Spiritual: Religion and conscience

There are five steps to help us reach this balance:

Step One: Impact and assess each area to understand priorities and needs.

Grade yourself (1-5: 5 getting the most attention). Should you be spending more time developing some areas and less in others? Prioritize all five from the area needing the most attention down to the one needing the least.

Step Two: Document your development strategy for one year.

Formulate specific objectives for all five areas. Your local library or bookstores are great places to start in helping you find materials to meet some of those objectives. Search

for materials that will help you focus on those areas which need the most attention.

Step Three: Invest your money – make the commitment.

Up to now, you have established your own baseline in five key areas of life, and you’ve addressed them in terms of priority and needs. Now the actual training and development process begins. Through your own research, you will have found books to read, tapes to review and classes to attend. The newspaper always lists upcoming seminars and workshops.

Commit yourself. Buy the materials; enroll in class; and pay the tuition or fees. Over the course of the first year, you will feel like you have addressed all your priorities.

Step Four: Quarterly self-assessments to stay on track.

As the year progresses, reassess your development strategy often. There’s nothing wrong with working two or more areas concurrently. Sometimes, based on scheduling or availability, you’ll have no choice.

When you feel you have an overall balance, congratulate yourself. Developing balance in your life is not an easy task.

Step Five: Establish an annual maintenance schedule.

Just as you now will feel a sense of balance and accomplishment in your life, you can chose to deepen skill areas that can help you personally and professionally. If you make the necessary commitments of time, energy and money, you will progress throughout the year.

If you invest up front to chart your course, your “supercomputer” will keep you on track.

Jack Warkenthien, CEO, NextStep Solutions. Email him at [email protected] or call him at 832-344-6998 www.nextstep-solutions.com

www.SBTMagazine.net

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Help! My Mom Won't Quit Liking My Facebook Status!By Aimee Woodall

SOCIAL MEDIA

EDITORIAL FEATURE

Hypothetical situation: Let’s say you own your own business. Maybe it’s a public relations and marketing agency with a rebellious

side and a deep understanding of social media. Maybe it’s not. Like I said, this is fiction.

Not only does your company have a stellar reputation and eye-catching website, but it’s got the social media presence to match. It’s no surprise, social media is your “thing.” You were, like, the second Twitter user. You’re convinced that Klout can’t even handle all of the topics you’re influential about, and you understand how big of a faux pas it is to “like” your own Facebook status (even though you’re hilarious). Seriously, you really know what’s up. Hypothetically.

But there’s one problem with your social media: YOUR MOM.

She likes every Facebook update your company posts. Every. Single. One.

Don’t get me wrong, you love your mom in this “imaginary situation.” She makes the best grilled cheese sandwiches and has great taste in movies. On a busy day, she brings you lunch from one of your favorite hypothetical restaurants. She even gave you your light blond locks. Or whatever color your hair is. This is about you, after all.

You like your mom’s liking. Sure. But you have a professional reputation to uphold. It was cute the first time and supportive the few times after that. But

now it just looks silly. Something has to be done.

You could start deleting all the posts with the Mom Likes (official term), but after a while, people might notice that too. So, you decide to be direct instead. You sit your mom down and have a talk with her. The kind of talk you see on an episode of Full House. You explain that while you appreciate her support and enthusiasm, she’s making you look a teeny bit unprofessional. It’s similar to how she often reminded you to say “thank you” before you had a chance, even though you were 16 years old and perfectly well-mannered.

And that’s it. Like the boss that you are, you’ve prevented a social media crisis. You’re a hypothetical genius, and you deserve a hypothetical drink. Or a real drink. No one wants a hypothetical drink.Facebook Mom Issues are easy to manage — and other social media crises can be too, if you’re prepared. So, allow me offer up some [motherly] advice.

Act fast. While it’s often a perk that social media posts are made in real time, sometimes it can backfire. Set up alerts so you know when someone mentions you on social platforms. If you own a company, train and enable your team to respond to negative posts. You can quickly minimize the situation before it escalates if you’re on your game.

Repair. How you respond to negative media says a lot about your business. Don’t delete

an angry user’s post. Instead, use your customer service skills and apologize for the situation. Be genuine. Be transparent. Be the bigger person! Use creativity and your resources to rebuild that relationship. Turn the negative situation into a positive opportunity.

Prepare.Plan AHEAD for potential social media crises. The first step when plunging into social media is to determine your strategy (in writing!). That strategy should include a section dedicated to crisis management, including potential crisis scenarios, protocol for response and a breakdown of responsibilities for responding. Most often, a post on social media escalates to a full-fledged crisis because companies don’t handle it well and word travels fast. It’s not too late. If you’re active on social media and don’t have a documented strategy, do it NOW. You’ll be happy you did.

People are going to talk about you whether you’re there or not, so kudos to you for understanding the importance of an online presence. Obviously, you can’t control what others have to say on the Internet, but you can handle these situations in a professional manner. See what happens? No matter how hard we try, moms (or hypothetical moms, as the case may be) are always teaching us lessons.

Aimee Woodall/Black Sheep AgencyContact her 832.971.7725 or email at [email protected]


4 Reasons Why Local Businesses Should Support the Energy RevolutionBy David Holt, President of Consumer Energy Alliance

EDITORIAL FEATURE

Texas is no stranger to energy development. From the Gusher Age of the 1920s to the growth of wind energy today, Texas has been at the center of it

all. For nearly a century, millions of our fellows Americans have looked to Texas to provide reliable, affordable supplies of energy to fuel vehicles, power homes, and supply the building blocks for multiple consumer products. While energy may be as integral to Texas’ collective DNA as high school football, some may not realize just how much small and local businesses have benefited from the growth in energy development in the Lone Star state.

Below are just a few reasons why small businesses should support energy development in Texas.

1: The money extends far beyond the wellhead

Texas produces more oil and natural gas than any other state – by a long shot. According to the federal government, Texas produced an average of 1.77 million barrels of oil a day last April while North Dakota, the state with the second highest volume of oil production, yielded an average of 609 million barrels of crude a day. Similarly, Texas natural gas production topped 7 trillion cubic feet last year, producing about as much as the number 2 (Louisiana), 3 (Wyoming) and 4 (Oklahoma) top-producing states combined.

This translates to huge economic benefits. Texas’ oil and gas industry supports over a quarter of the state’s economy and over 2 million jobs directly and indirectly connected to the business. In Austin, the state government looks to oil and gas state

taxes to help fund critical infrastructure projects and social services necessary to keep the economy growing. In 2011, the Texas State Legislature estimated that oil and natural gas production generated $3.3 billion in revenue for the state. This year, the government estimates that this figure will rise to $3.4 billion, which will be about 8% of total revenues collected by the State.

2: From Odessa to Beaumont and down to Corpus Christi, economic benefits spread across the state

Texas is home to some of the country’s largest oil and natural gas deposits, including the Permian Basin in West Texas, the Barnett Shale in Northeast Texas, and the Eagle Ford Shale in South Texas. Much of the increased energy production in these areas has translated to new opportunities for local businesses; demand for hotels, restaurants, transportation services and retail outlets has increased significantly with the influx of drilling activity. A report from the Federal Reserve Bank of Dallas notes that of the five counties in the Eagle Ford with the strongest job growth rate, retail sales grew at an annual rate of 55.1 percent from first quarter 2010 to third quarter 2011. During this same period, retail sales in Texas averaged a mere 6 percent increase.

3: It’s not just oil & gas producers growing, but alternative energies too

Texas not only boasts the title of biggest oil and natural gas producer; it also holds the title of largest wind producer in the United States and the fourth largest renewable electricity producer in the United States. If Texas maintains this level of renewable electricity generation, the

state could see the creation of 6,000 jobs and over $800 million in economic output annually, according to an estimate by Hamilton Consulting. Going forward, this figure could grow significantly as venture capitalists across the globe invest in Texas’ businesses and universities to research and develop the energy technologies that will fuel future generations.

4: There’s a lot more growth to be had in the future

According to a study by Wood Mackenzie, Texas could see huge growth in the oil and natural gas industry if the federal government better encouraged energy production through clearer permitting policies and expanded access to offshore and onshore resources. The report estimates that by 2030 the state could see an additional 174,670 jobs created and an additional $974 million in state taxes generated.

However, the future growth of energy development in Texas could be hindered by onerous regulations and restricted access to energy resources. At this critical juncture in our economic recovery, small businesses in Texas should rally to support energy development and all of the jobs, tax revenue and business it generates.

For more ways on how small businesses and energy consumers can support a robust energy policy, please visit http://consumerenergyalliance.org/.

David Holt is President of Consumer Energy Alliance. You can contact him via email at [email protected] or 713-337-8800 http://consumerenergyalliance.org/


Infotainment: Brand Advertising Versus Educational MarketingBy Steven Kay

LIFE, BUSINESS & MONEY

EDITORIAL FEATURE

When it comes to marketing and advertising, there are a thousand different options. Since my particular area of expertise is in radio,

I will speak from that perspective, but I do believe that these concepts work in other forms of media (tv, print, internet, etc.). Many people ask me how to make radio effective for their business. The answer really depends on the goals they have for their business and what they hope to accomplish with the campaign, as well as what type of business or industry they are in.

There are basically two styles of campaigns, Brand Advertising and Educational Marketing.

Brand Advertising is what most of us are used to. The goal is (or should be) to create top of mind awareness. Think about the ads you see and hear all the time. These are companies like Coca-Cola, Apple, and FedEx. They are names we all recognize; we hear their ads every day. Yet, when you hear one of their ads, it doesn’t necessarily cause you to react at that moment. Think about that… when you see the iPad commercial on tv, do you suddenly jump in your car and drive to the mall? Most likely not, and that is not the goal of a branding campaign. Yet the next time you’re at the mall, what store do you stop at to see the newest cool gadget? When you hear that famous FedEx tag line, you are probably not going to start searching around the office for something to ship, but the next time you need a package rushed to a client you may just remember who gets it delivered when it “absolutely positively

has to be there overnight”.

You see, these commercials aren’t meant to get you to buy on the spot. They are meant to keep these brands in first place in your head so that when you do have a need you think of them first. This type of advertising does work, but it is extremely expensive. However, the payoff is also huge. These companies generate hundreds of thousands to millions of dollars in sales by spending the tens of thousands it takes to do this successfully.

So where does that leave the entrepreneur, the service professional, the small business? How can they afford mass advertising that produces more immediate results? The solution just may be an Educational Marketing campaign.

Educational Marketing is a campaign designed to feature a business as a credible leading expert in their field or industry. The goal is to identify with a listener’s needs to generate a more immediate response. In radio, this is accomplished with an interview (or series of interviews). This can translate the same to television, or articles in print advertising, and so on.

The difference between this and traditional brand advertising is simple yet powerful. With a regular ad like a radio commercial, even if the message is written clearly with a strong call to action that within 30-seconds the listener responds… once you have made contact with the potential customer, you still have to educate them on who you are and what you do and

how it will directly benefit their particular circumstances so that they know that you have the solution to their need(s). While with an interview (or any form of educational marketing) you are already taking the time to educate the audience, so by the time they pick up the phone to call you they are no longer responding to your ad but instead are responding to their own need. In other words, they know you have the solution!

This type of advertising is typically much better for the small business, because it eliminates part of that aspect of the sales process. It is also a lot less expensive and is usually done on programs that are more narrowly targeted to a specific demographic interested in a particular topic. The thing I love most about talk radio is that there are shows that cover every subject. I highly recommend that you find outlets that are as closely related to your industry as possible. In this realm, content is king.

Both styles do have pros and cons, and both styles do have some crossover affects… you will get direct response from traditional brand advertising, and you will get some brand building from educational marketing. You just have to understand what each can do for your business, and decide what you are looking to accomplish with the marketing budget that your business can afford.

Steven Kay, Talk Show Host & Producer / Media Buyer & Consultant, Steven Kay Media LLC, 713-STEVEN-K (713-783-8365), [email protected], www.StevenKayLive.com.


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Pierpont Communications, Inc. | Public Relationswww.piercom.com/Public-Relations.aspx

At Pierpont, we know that being a market leader isn't about having the most press

releases, or the most colorful brochures.

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Public Affairs—Civic Engagement—Community Relations—whichever term you prefer,

the simple truth is that people do business with companies they know and like.

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Integrated Communications in Texas | Pierpont Communications, Inc.www.piercom.com Pierpont Communications knows how to influence the way people think about you and your brand — and this helps you grow your business. With offices in Houston, Austin, Dallas and San Antonio, Pierpont understands how businesses communicate in the Texas market.

Find out how Pierpont can help your business grow and flourish.

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Is Now the Time to Sell?By Jeffrey D. Jones, ASA, CBA, CBI

Surveys reflect that almost one-third of business owners responded that they are considering the sale of their business. You may wonder why

someone would sell a profitable business. There are actually many reasons business owners sell their businesses. However, many of the businesses for sale never sell. This is usually due to the owner over pricing the business or the business is not very profitable. To sell a business, the owner has to be motivated by some triggering events other than the amount of money he wants for the business. Fair Market Value is rarely ever enough to motivate someone to sell. In most instances, the price that small business owners can get for their business is not much more than what an owner can make in 2 to 3 years and still have the business. On the other hand, most buyers do not want to buy a business losing money. They can go start their own business and lose a bunch of money on their own. There are a few business types that can be sold when they are not making money. These would be businesses that can be converted to another concept cheaper than starting from scratch. For example, buying a steak restaurant that already has all the necessary licenses, permits, equipment, and leasehold improvements, and then converting it to a Mexican restaurant may well be less expensive than building brand new facilities.

Reasons a business owner may want to sell their profitable business.

It's Better To Cash-Out Than To Burnout: Burnout can come with a business that's successful as well as one that's failing to grow. The right time to sell is before the syndrome becomes a threat to the effective management of a business. What

are the warning signs of burnout?

Partnership Problems: Often Partners will become disenchanted with one another and when it is not possible for either party to buy each other out, then the business is put up for sale.

Family Issues: A business can take a lot of time to manage and can have a deteriorating effect on a family. There are many businesses for sale due to the owner wanting to spend more time with their family.

Il-health: Some businesses are for sale because the owner may be in poor health or the owner’s spouse, children, or other family members are having health issues that must be attended to.

Divorce: It is not uncommon that business pressures can have a negative effect on family lift that ends in divorce. Typically, the business will be the largest items in the family estate, and upon divorce there is insufficient funds to buyout either spouse. The business then has to be sold to provide adequate funds for separation of the estate.

Another Opportunity: Entrepreneurs often find business ventures they want to pursue more so than the current business they are in, so they sell their existing business to get into what they believe is an exciting new venture for them.

The Buyers Are Out There: In Good times or bad times, there are always people looking to buy an existing business. The availability of financing and the economic perspective does have an significant impact on the number of transactions that take place each year. There are approximately 600 businesses that change hands each year in the Houston Metro area.

These buyers include former corporate executives who get frustrated with the corporate world, blue collar workers who want control over their work environment, foreigners who come to the US and prefer to buy an existing business rather than start a business without local knowledge of the market place, and private equity groups,.

How to find these buyers? The business broker is the professional to whom sellers turn when looking for serious, "qualified" buyers. The business broker not only helps match the right buyer with the right business, but also educates the buyer in the buy-sell process, alleviating concerns and keeping the transaction in steady forward motion. With plenty of buyers to choose from in today's market, it's more important than ever to identify the time-wasters and those who think they want to buy but really aren't ready to take the big step.

The Small Business Administration (SBA), in researching selling trends, reports that three to five years is a long enough stretch for many of today's business owners. One in every three plans to sell; many of them right from the outset. The business they've bought is not a legacy for their children--it's a shorter-term investment of their time as well as their money. The ability to present a healthy operation, with an owner in the position to "role model" its success is a major advantages in the completion of a successful business sale. One of the surest ways to maximize the value of a business is not waiting too long to sell.

Jeff is President of Certified Appraisers, Inc., You can contact him at 713-680-3290, via fax 866-431-2319 or email [email protected]

EDITORIAL FEATURE WBEA 16th Annual Golf Classic

& Silent Auction

MONDAY, OCTOBER 08, 2012

Join us on the green for this out-of-the-box opportunity to grow your business.

The WBEA Golf Classic & Silent Auction provides exposure and networking opportunities for corporations and woman-owned businesses.

GoldSilver

BronzeReception Sponsor

Food & BeverageMetal

WBE Sponsor

Putting ContestClinic Sponsor

Golf Cart

SPonSoRS aS oF 5/25: BE involvEd. BE RECoGnizEd.

ExxonMobilConocoPhillipsBaker Hughes & Fluor CorporationBP America, Inc.H-E-BCenterPoint Energy, Chevron,Reliant an NRG Energy & Shell Oil CompanySue Pistone & AssociatesEMCO, KBR & Keystone ResourcesThe Coca-Cola CompanyUniversal Personnel

The event includes opportunities for everyone with a golf clinic, four person scramble tournament, silent auction, and networking dinner.

Additional recognition opportunities available through volunteering, goodie bag and silent auction donations, and sponsorships.

Wildcat Golf Club - 12000 almeda Rd. Houston, TX

For more info contact [email protected]

www.SBTMagazine.net

WBEA 16th Annual Golf Classic

& Silent Auction

MONDAY, OCTOBER 08, 2012

Join us on the green for this out-of-the-box opportunity to grow your business.

The WBEA Golf Classic & Silent Auction provides exposure and networking opportunities for corporations and woman-owned businesses.

GoldSilver

BronzeReception Sponsor

Food & BeverageMetal

WBE Sponsor

Putting ContestClinic Sponsor

Golf Cart

SPonSoRS aS oF 5/25: BE involvEd. BE RECoGnizEd.

ExxonMobilConocoPhillipsBaker Hughes & Fluor CorporationBP America, Inc.H-E-BCenterPoint Energy, Chevron,Reliant an NRG Energy & Shell Oil CompanySue Pistone & AssociatesEMCO, KBR & Keystone ResourcesThe Coca-Cola CompanyUniversal Personnel

The event includes opportunities for everyone with a golf clinic, four person scramble tournament, silent auction, and networking dinner.

Additional recognition opportunities available through volunteering, goodie bag and silent auction donations, and sponsorships.

Wildcat Golf Club - 12000 almeda Rd. Houston, TX

For more info contact [email protected]


The Price is RightBy N D Brown

COME ON DOWN an announcer shouts as contestants are selected to play THE PRICE IS RIGHT.

In 1956 what is now the second longest running game show on television hit the air. THE PRICE IS RIGHT asked contestants to guess the retail price of a wide variety of items. The contestants then competed to guess the actual retail price.

If you have watched the show you know how close many come to guessing the real price. Often the potential prizes were not everyday household items. Contestants are asked to guess the price of very expensive vacations or an exotic cars or boats.

How do they know what to guess if they've never shopped for the item before?

We all carry a sense of pricing. We instinctively know when we see what looks like a bargain or a rip off. Our brains are loaded with perceived values. Ask at woman about the prices on her grocery list. She will be amazingly close to the retail price. Even if she has not bought an item in a long time .. or ever!

When is the last time you bought a snow tire or a copy machine or twenty generators? In moments, and little research, you will have a pricing range and what the prices mean in quality. You have enough information to complete the price, quality, value equation.

For small businesses competing with larger companies, setting the right price can be the difference in success or struggle. When do you sell at full markup price and when do you discount? Make the wrong decision and you will have a hard time rectifying it.

It's the Goldilocks dilemma. Price to low, without establishing a quality level, and

customers might perceive your product as poor quality. Price to high and customers may perceive it as overpriced.

A rule of thumb for any business is, it's better to give away samples than to reduce the price and damage the perception of quality.

Most businesses know the various formulas to determine what a profitable price should be. If not Google and you will find many formulas. However, determining what the seller thinks is a fair price and what the customer thinks is part of the game.

What happens if the buyer has no knowledge of the brand or the selling company? Does that automatically mean they will think the product should be less expensive?

Not really. Yet their knowledge base is derived from competing well known brands and companies.

There are brands that absolutely will not discount. They restrict the outlets they use to protect their pricing strategy. They establish their value position with high quality communication, Including controlling how their representatives dress!

There are ways to undermine the higher priced products without appearing to sacrifice the price, quality, value formula.

The watch industry was part of the jewelry business where retailers marked up factory prices 50%. Timex produced an almost indestructible watch.

Timex skipped over the traditional jewelry store as seller. They controlled the mark up of their practical watch to 30%. Then they sold through stores customers perceived to be lower priced. You could buy a

Timex in drugstores, grocery stores, even convenience stores. Timex was not in the jewelry business. It was in the affordable watch business.

Timex advertised the quality of their watches and positioned the brand value with a successful advertising slogan; It takes a licking and keeps on ticking.

Consumers knew Timex could be relied on to work. And because they were sold at every day stores, as an impulse item, customers knew Timex quality cost less. Giving them value.

Timex established its brand as the benchmark for all watch pricing. Timex changed the paradigm.

Before pricing your product, or service, determine if you want to sell in the high, middle or low end of a market that's been established by your competitors.

Is your product different enough to demand an elite price? Perhaps, like Timex, your product is as good or even better than your higher priced competition so you can cut your margin and still deliver quality. Perhaps it is so much better that it needs a high price to complete the value formula

Remember, the customers do have an idea what your price should be. Once you establish your pricing strategy maintain and promote it.

The customer is looking for the best value not just the cheapest price.

N D Brown is the Principal of brownchild ltd inc, 3754 Sunset, Houston, TX 77005. You can contact him at 713 807 9000 or cell 713 822 8370 [email protected], www.brownchild.com

EDITORIAL FEATURE


that companies spend about $1,200 annually per employee on training.5

Compliance: Employers must often deal with a complicated array of federal and state regulations. Research may be needed to understand the possible cost of implementing requirements that apply specifically to your area and/or industry.

It’s exciting to discover an opportunity to expand the size or scope of your business, and sometimes extra help is needed to make that happen. Fortunately, successful small businesses are likely to continue providing employment opportunities in the years to come.

1) Businessweek, December 13, 2011

2) The Wall Street Journal, November 30, 2011

3) Associated Press, December 14, 2011

4,5) Yahoo! Finance, July 25, 2011

Email [email protected] to discuss your particular situation for Group Benefits, Retirement Plans, Investments, Insurance, Taxes, and Estate Planning.

This material was prepared by Emerald, and should not be construed as investment, tax, or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Securities offered through Questar Capital Corporation (QCC), Member FINRA/SIPC and/or Advisory Services offered through Questar Asset Management (QAM) A Registered Investment Advisor. GPS Wealth Management is independent of QCC and QAM. Cyndi Barnett is a Registered Representative and Investment Advisor Representative.

Cyndi Barnett, GPS Wealth Management, a

Certified Financial Planner™ and Certified Tax Specialist™. Email [email protected] to discuss your particular situation for Investments, Retirement, Insurance, Taxes, and Estate Planning.

Registered Representative and Investment Advisor Representative. Securities are offered through Questar Capital (QCC), Member FINRA/SIPC. Advisory Services offered through Questar Asset Management (QAM), A Registered Investment Advisor. GPS Wealth Management is independent of QCC and QAM. This material was prepared by Emerald. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such.

Legal Document Annual ReviewBy Susan Repka / Women's Business Enterprise Alliance (WBEA)

EDITORIAL FEATURE

In my role with the Women’s Business Enterprise Alliance (WBEA) I have worked with many women as they apply for WBE certification. I am often amazed by the number of owners that have never read their

legal documents for their company or have not read them in several years. Unfortunately, it is usually after the company has been denied certification due to minor details in these documents, that we are made aware of the situation and at which point the company is required to not only update their legal documents but also wait for six months before applying for certification again.

Legal documents for any company should be evaluated on a regular basis and updated as needed. If a company is going through any certification process based on ethnicity or gender, such as certification as a Women’s Business Enterprises, through WBEA/WBENC, the legal documents are utilized to determine legal control of said company. Therefore they are read and evaluated to determine the control of the majority owner or owners. Most denials for certification are “technical denials” based on small details found within a company’s legal documents. It is important that the owner review the documents and compare them to the certification standards prior to the submission of the application. However, even if

a company is not applying for any certification, these documents should be compared to the actual processes utilized by the company on a regular basis.

Some examples of items to review if the company is a corporation,

• How many directors do the bylaws state the company should have?

• How are directors elected?

• If the majority owner needs to remove a director, how would she proceed?

• How are officers elected?

• What is the highest ranking office?

The owner should know the answers to these questions prior to making any major changes in the structure of the company. We have seen instances where the owner has “promoted” themselves to CEO only to realize that that position is not currently in their bylaws. The president is the CEO and they have named someone else as president. In this instance, the owner could possibly lose some areas of control such as applying for loans, and signing contracts even if they have majority ownership

of the company.

There may also be other legal documents that the owner(s) need to review based on the legal formation of the company. Any changes made to legal documents should be a qualified attorney.

In some instance owners may assume that since their business partners are family, they will not have any problems. This is not always the case. Often times owners that are related find themselves in a legal battle with each other and companies are lost in that legal battle.

Make reviewing your legal documents an agenda item for your next annual board meeting. This small step can save you from a having major problems if the company is ever applying for certification or if the owners have a disagreement.

Susan RepkaExecutive DirectorWomen’s Business Enterprise Alliance.

Continued from page 21FISCAL MANAGEMENT & RESPONSIBILITY


EDITORIAL FEATURE EDITORIAL FEATURE

Lessons Applied in Business That Were Learned In Raising My Two Special Needs KidsBy Judy Blake

I’ve worked for both large corporations and small companies. It has always been a natural part of my personality to have patience and understanding; the desire to help or educate others

came easily to me.

With the birth of my two sons, I had no idea how invaluable these innate qualities would be and how they would play such a paramount role in raising my children. My oldest son was diagnosed with Autism in 1995 and my youngest son was diagnosed in 1996. Autism is a social communication disorder that can make it difficult for them to hold normal conversations and at times, maintain relationships. Coupled with autism, my children continue to cope with attention deficit disorder (ADD), anxiety and obsessive-compulsive disorder. My youngest also has Tourette Syndrome and bouts of trichotillomania (pulling his hair out).

When I returned to work, I found that the challenges I encountered raising my children were on occasion similar to my working with colleagues or clients. While these occurrences were not to the extreme of my own children, there were striking parallels. I had not noticed this before but was keenly aware now. Living in my world of special needs has allowed me to gain more insight into the working personalities of employees, colleagues and clients.

I’ve learned that most people, albeit minor, have one sort of special need or another. This could range from mild anxiety to difficulty in communicating with their colleagues to the inability to focus. All of these issues affect the working personality of those we meet. I’m not suggesting that you start analyzing others. You have to be trained to know what to look for and how

those special needs are manifested. But I am suggesting that within your business relationships, you become more aware of those who might have a milder version of a special need. It’s about understanding that while someone may appear typical on the outside; this does not exclude them from having issues on the inside. It isn’t about making excuses for people’s actions or not holding them accountable. It’s about tolerance and acceptance for those who are different yet have so much to offer.

The Center for Disease Control recently reported that 1 in 88 children have been identified with an autism spectrum disorder. I’ve worked with people who were quite peculiar and before my kids; I just assumed they were a bit odd. Having raised my children, I now see that some of these people could have had a high functioning form of autism. In speaking with them, they lack eye contact. Their social skills are awkward and when you try to have a conversation with them, it is strained. Very often they are quite bright but academics are not the issue. It’s the ability to get along with coworkers or communicate effectively in the workplace and both are very difficult for people on the autistic spectrum. Realizing that someone can have expertise in their field but lack the ability to get along well with others does not make them less valuable. They just want to get the job done and social interaction is not of concern to them.

We all experience anxiety to some extent; this is part of life. But is it extreme to the point that we become paralyzed in our thoughts or actions? It does for my children and I’ve seen it happen in many adults. Everyone handles pressure differently and some can’t multi-task.

People perform to their own ability and some can be easily overwhelmed. Knowing and accepting that we all handle pressure in different ways has allowed me to work more effectively in my business relationships.

Have you ever tried to train an employee who can’t focus? Have you tried to conduct business with a vendor or client who can’t carry a conversation for more than five minutes? Have you teamed up with a coworker to complete a project only to find out that they can’t complete even one task? I could not suggest to any of these people that they should be tested for ADD but it was tempting. Because of the many years of living with my son, I knew the signs to look for and how to work with him. Even though he takes medication, his mind still races and it’s hard to stay focused. When I see this with adults, I make sure to limit the length of meetings and be as concise as possible because I know that too much information will put them into overload.

People with hidden special needs are everywhere and the business world is no exception. It is my hope that people will try to be less judgmental and more open-minded. You may not have special needs today but that could all change tomorrow. If it does, you will want others to have patience for you. Make the choice today to accept others!

Judy Blake is a public speaker and author of “Judy’s World”. She teaches tolerance, compassion and understanding for those who are an asset to your business but might act differently. She can be reached at [email protected] or www.judysworld.info .

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Advertiser’s Index

CHI.....................................................Inside Back Cover

Champions School of Real Estate................................8

Churchill Mortgage...............................Inside Front Cover

Courthouse Direct.........................................................44

Eric Kleiman Photography...............................................9

Fidelity National Title.......................................Back Cover

G Ernest Designs...........................................................15

GPS Wealth Mgmt..........................................................35

Gateway Credit..............................................................21

HCC/Goldman Sachs......................................................2

Jennifer Hernandez - Patriot Bank Profile........................39

Laughlin Associates.......................................................20

Lee Wright - Integrated Health Profile..............................22

Main Street Chamber.....................................................17

Nerium..............................................................4

Pierpont Communications..............................................34

Quality Hospitality Travel dba Cruise Planners...............13

RAC Conference Center.................................................27

Sales Nexus....................................................................25

Steven Kay Media...........................................................42

T.G.Design............................................................33

VIP Orbit.........................................................................43

WBEA Golf Tournament................................................37

Westpark Communications..............................................1

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For more information, contact Kelli Owens by phone at 713-966-4050 or by email at [email protected].

3005 W. Loop South, Suite 250, Houston, Texas 77027

“Not all title companies are created equal and that is certainly the case with Fidelity Title (Galleria). It is always a pleasure to work with them because they offer so much more than just a title policy. They are there when we need them. If a survey is missing they help secure one, if a HUD statement needs to be completed the prior day due to an early morning closing they will work late; if my client can't attend closing until 5:30pm on Friday and the rate lock expires that day they will ensure someone is there to administer the closing; if a lien exists on the title that should have been released by a prior title company they will track down the lien even if takes a full month; if my client can't source a document at closing they are there to offer a solution to satisfy my attorneys’ needs. In short, I would recommend Fidelity Title (Galleria) not because of the strength of their title insurance (in which I have no doubt and full faith) but because of their integrity throughout the process that allows HSC to deliver financing solutions to all our clients. “

TM

Fidelity National Title®

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---- Daniel Jara, Broker OwnerHomeStart Capital

Small Business Today Magazine - September 2012 Edition

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Transcript of Small Business Today Magazine - September 2012 Edition