Business Journal Inspire, Inform & Educate
July 2015
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The Power of LEADERSHIP
Be Inspired to Lead in Business By Dawn Paul The theme of this issue of the d-mars.com Business Journal is The Power of Leadership. Are you a leader in your business? PAGE 10
PAGE 4-5
In the Business Community… • Association of Black Consulting Engineers & Architects • Houston Community College
James Marshall: The King of Finance
PAGE 11
PAGE 6
4 P’s of Equity Crowdfunding in Texas By Cynthia Nevels Texas believes in investing in the future, creating jobs and driving innovation. PAGE 20
Good Deal or Bad Deal? By Mathis Conner
PAGE 26
Level Up! By Noel Pinnock
There is a great deal of work to do and it calls for sacrifice and determination on the part of those who are leading, and if men believe that money should be the only consideration for leadership, then there can be no successful achievement. - Marcus Garvey
July 2015 3
Journal Behind The
Publisher’s Message
MR. D-MARS
SR. PUBLISHER Keith J. Davis, Sr.
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VICE PRESIDENT Kim Floyd
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The Power of Leadership is the theme for this issue of the d-mars.com Business Journal. There is power in leadership, and as a successful business owner, I have seen what happens when power is used in a positive way. Business owners employing those in the community and mentoring the next generation of entrepreneurs can help build the community. This month’s cover story is on James Marshall and Marshall Wealth Management, LLC. Marshall is a great example of what happens when you use your power of leadership to pay it forward. He is using his experience and knowledge in the finance industry to not only serve his clients, but to also educate the African-American community in the area of finance. This cover story and other articles in this issue will inspire you to use your power of leadership to help make for a better community. As always, thank you for your continued support of d-mars.com. When you support us, you are supporting more than just our company; you are supporting the communities in which we live and work. Working together, we can succeed in making positive things happen.
ASSOCIATE EDITOR Dawn Paul
PHOTOGRAPHY L.C. Poullard Grady Carter Tony Gaines
Contents
MULTIMEDIA DIRECTOR
James Marshall: The King of Finance..............................................................................................................................................................4-5 Good Deal or Bad Deal? How You Can Quickly Do Your Homework..................................................................................................... 6 The Traits of a Leader....................................................................................................................................................................................... 8 Be Inspired to Lead in Business...................................................................................................................................................................10 In the Business Community…......................................................................................................................................................................... 11 Stock Options: High-Risk, High-Payoff Possibilities............................................................................................................................... 12 How Women Can Plan for Their Financial Futures................................................................................................................................. 13 4 Top Technology Degrees for Today’s Career Seekers......................................................................................................................... 14 What’s the Real Cost of That Auto Repair? How to Know if You’re Paying the Best Price.........................................................16 Level Up!..............................................................................................................................................................................................................18 4 P’s of Equity Crowdfunding in Texas.....................................................................................................................................................20 Six Ways to Make Your Business Better This Summer.........................................................................................................................20
Andrea Hennekes
LAYOUT & GRAPHIC DESIGNER Angel Rosa
DISTRIBUTION Booker T. Davis, Jr. Rockie Hayden
CONTRIBUTING WRITERS Mathis Conner Noel Pinnock Cynthia Nevels d-mars.com News Provider
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Experience Our World of Advertising, Marketing, Media and Communication
4 July 2015
James Marshall: The King of Finance “It is critical to our survival that we not only build family wealth, but that we make sure we transfer that wealth to well-trained children that are prepared to receive it. No one is coming to save us! We must be better stewards of the resources that God has given us.”
— James Marshall
Experience Our World of Advertising, Marketing, Media and Communication
July 2015 5
Marshall Wealth Management, LLC and the Power of Financial Leadership By Dawn Paul
Associate Editor
A
re you managing your money wisely? Do you know how to manage your finances? Do you think it’s too late to get your finances in order? These are questions that you have to answer truthfully for yourself. There is nothing wrong with self-assessment, especially when it comes to money. In today’s society, many Americans are not being financially responsible, and if you have made money mistakes or are not financially savvy, you are not alone. Because most of us were not born into wealth, we have to be conscious of how we spend and manage our money. If you feel lost when it comes to your finances, no worries. There’s a financial advisor who is not only savvy when it comes to helping you with your finances, but he also has the passion to get you on the financial road to success. James Marshall is the founder and president of Marshall Wealth Management, LLC. Marshall has an impressive resume’, extensive experience in finance, and his firm offers a number of financial services that are sure to fit your needs. A graduate of Western Kentucky University, Marshall has been in the investment management industry for over 25 years. It was in the beginning of his career in finance with Merrill Lynch that he realized the great importance of educating the African-American community on wealth building and money management. Marshall’s interest in the finance business was first piqued when he raised money through a stock offering and merger proposal for his first business while in college. It was a hair salon called Beautiful You Hair Care. This business venture led to his start in finance with Merrill Lynch in 1988. After Merrill Lynch, he had a successful career with American Express Financial Advisors. After gaining invaluable financial knowledge and experience in the industry, he decided to be his own boss, and he opened his own financial firm in 2001. Marshall Wealth Management, LLC is a registered investment advisory firm that specializes in financial education as a component of its wealth building agenda. Marshall works tirelessly in educating, supporting and advising diverse communities and clientele in the areas of financial services, investment management and life planning. Marshall has qualified for the Million Dollar Round Table, which consist of the top 5% of all producing financial advisors. Marshall is active at Western Kentucky, serving on the university’s Foundation Board and Board of Advisors. He has established the J.L. Marshall Living and Learning Community at Western’s Gordon School of Business. In addition, Marshall is a published author, and his book titled “Wealth: Unlocking the Secrets to Creating and Protecting Black Family Prosperity!” addresses the African-American fam-
ily and financial education. Marshall has always been ambitious and had a passion for finance, but he did learn a valuable money lesson when he purchased his first building in the beginning stages. He was so caught up in the desire to purchase a building, that he didn’t consider the hidden costs associated with owning commercial real estate. Listening to his mentors, he sold the building. He learned to always maintain 20% of the property’s value in cash reserves. “Take your knocks and learn from them. Brush yourself off and do a better job going forward,” Marshall says. He gives that very advice to clients who have made financial mistakes. For Marshall, the finance industry is not just a job, but a passion. His passion is to educate people on wealth, and this business has been a ministry from the start. In the beginning of his career at Merrill Lynch, he saw that there were no African-American brokers in Kentucky, his home state. In fact, there was only one other AfricanAmerican in his building. Seeing this, he reached out to the African-American community but was told by managers that there was no money there. He realized that most finance professionals had no interest in educating us the way they educated the white community, and he decided to do something about it. Marshall expresses, “I hired a consultant to put together a strategy for me to market to and educate the AfricanAmerican community about investments. Every time I conducted a workshop, gave a seminar or sponsored a wealth building event, the feedback I received from the participants in our community was priceless! Most of them were genuinely thankful for me taking the time to demystify the wealth building process.” Not only is Marshall passionate about finances in general, but he’s especially passionate about helping African-Americans gain knowledge about finances. “It is critical to our survival that we not only build family wealth, but that we make sure we transfer that wealth to well-trained children that are prepared to receive it. No one is coming to save us! We must be better stewards of the resources that God has given us,” Marshall says. Marshall feels that the goal is not necessarily more money, but more access to a better education, better healthcare, better living conditions and a better quality of life! It takes money to live well in America, and it’s easier to acquire these things when you are fi-
nancially independent. Because we as African-Americans are mostly consumers, one of Marshall’s missions is to help educate the African-American community on changing the mindset when it comes to money. Marshall tries to educate his clients on the opportunity cost of large ticket items. Marshall explains, “If you spend $100,000 on a new Mercedes-Benz, it will depreciate immediately. That same $100,000 invested in a balanced investment portfolio could be worth $200,000 in 10 years if you averaged 7% per year. When you think of it this way, that $100,000 Mercedes-Benz really cost you a lot more than you paid.” Though there is nothing wrong with enjoying luxuries, Marshall believes in people making more of an effort to build wealth instead of living wealthy. Not only is Marshall addressing financial education among our community, but to the younger generation as well. Marshall is consistently trying to educate young people on the basics of wealth building. Many young people learn how to manage money from their parents, and if their parents have mismanaged money, then that bad habit has been passed down to them. Marshall spends time talking with young people about the concept of compounded interest. “I tell them, the sooner you start that wealth building snow ball rolling down that hill, the bigger it will be at the end,” Marshall says. “It’s important that young people be disciplined with their money. Drive a hoopty now, and own a home later,” adds Marshall. No client’s need is too large or too small for Marshall and his firm to address. He has a diverse client list and he meets each client where they are in life. He listens to client fears, goals and aspirations. A comprehensive financial plan is created that will help the client strengthen and improve their current financial situation. Though planning is only a part of the solution, Marshall and his firm stay with the client throughout the wealth building process and journey. He instills in the client that there is no substitution for putting in hard work when it comes to building wealth. It doesn’t matter the age of the client, Marshall believes it is never too late to get your finances in order. It’s important to address financial setbacks head on and not run from
them. Marshall feels that when you avoid financial issues, you are making a big mistake. Marshall says, “Determine if the setback was internal or external.” Was it brought on by something you did or did not do? Was it beyond your control? These are questions you must face when there is a financial setback. Being in this industry for so long, Marshall has seen it all. Not having the proper amount of cash reserves, over usage of credit cards and thinking there is some secret strategy for building wealth are just some of the mistakes he has seen people make. He has helped a countless number of clients strengthen and improve their financial situation. Marshall says, “Mostly my clients are thankful that I take the time to understand their situation and what they want to accomplish. I make sure that they understand what we are doing and how and what we are investing in.”
Below are Marshall’s top 5 educational tips: 1. Visualize your financial goals. 2. Review your spending by completing a 30 day diary of expenses. 3. Save before you invest! 4. Know your numbers! 5. Start Now! Get invested and stay invested! Marshall Wealth Management, LLC is a registered investment advisory firm, which means Marshall and his firm have a fiduciary responsibility to clients. Marshall puts his clients’ needs first. Over those 25 years, Marshall has helped hundreds of clients manage their finances, and he has talked to thousands of people about the concepts of building wealth. Marshall often refers to a quote by Booker T. Washington where Washington said, “At the bottom of education, at the bottom of politics, even at the bottom of religion, there must be for our race economic independence.” Marshall is always clear and transparent with his clients. His clients trust him and he has a reputation of integrity in this industry. He takes pride in the fact that clients can verify how he manages their money by checking statements and reviewing actual holdings. Marshall ends with these words, “I am convinced that most anyone can build wealth. Start building wealth today!” For more information on James Marshall and Marshall Wealth Management, LLC, please visit www.marshallyourmoney.com.
“I am convinced that most anyone can build wealth. Start building wealth today!”
– James Marshall
Experience Our World of Advertising, Marketing, Media and Communication
6 July 2015
Good Deal or Bad Deal? How You Can Quickly Do Your Homework By Mathis Conner
O
Contributing Writer
k, so one evening you’ve got everything ready for the family dinner. The food is warm, and your spouse just got home. You’re feeling proud that everything is on the table by 6:30PM. Now you’re just waiting on your son, Nathan to get home. Where is he? He didn’t have anything special planned after school. Finally home, he walks through the door, focused on his smart phone. You say, “Nathan! You should have been home a while ago.” He replies, “Yeah, sorry. I was down the street at Aaron’s house.” You remind him no phones at dinner, but he keeps staring at his phone. He starts talking about a new app that everyone at school is into. Thinking it’s the typical app, you reiterate the no phones at dinner rule. Still glued to his phone, he responds, “It’s just that a bunch of us from school were talking to Aaron about this app his dad created. It can do all these cool things for us we never imagined. Aaron’s dad created a business plan, and he’s now looking for investors
to grow a huge business.” You know Aaron’s dad, Roy. He’s kind of a quiet guy who keeps to himself. Could this be one of those garage startup opportunities you always hear about? Is this an opportunity to make a great investment, or if you’re lucky get rich? Though you don’t know much about smart phone apps, you’ve seen entrepreneurs on Shark Tank request financial backing, and it seems pretty straightforward. Your interest is piqued, but you need to do your homework.
So, how can you quickly do your homework to see if this is a great opportunity? Step 1: Call up Roy and tell him you heard he’s looking for investors, and you were wondering if he could spend just 5 minutes explaining the opportunity. If it doesn’t excite you, just communicate you aren’t familiar enough with his area of business, and you don’t feel comfortable investing. If you are interested, ask for a copy of his business plan to review. Never invest in a project without a wellwritten business plan - period! Step 2: Read the business plan, and write down questions and comments along the way. Call Roy back, and ask your questions. Be sure to ask questions about: (i) who the business will sell to, (ii) who the business needs to buy from, (iii) existing competitors, (iv) substitute products, and (v) how easily someone can duplicate the business. If you want more guidance, Google “Porter’s Five Forces.” If you don’t like the answers to
your questions, kindly reply, “Thanks, but no thanks.” Step 3: Start thinking about what you know personally about Roy. Keep in mind this sound wisdom from the Bible, “A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Thus, by their fruit you will recognize them.” What do you know about Roy’s family, friends, affiliations and accomplishments? See if you can find out anything about Roy on Facebook, LinkedIn, Twitter and Google+. If you find anything that disturbs you, use the “Thanks, but no thanks” reply in Step 2. Step 4: Go to the internet and spend about $40 or so to run a background check on Roy. If you are considering investing a few thousand dollars in Roy’s business, it’s certainly smart to spend a few bucks to see if Roy has a history, criminal or otherwise, that may make you uncomfortable. A good website for background checks is www.intelius. com. Step 5: If things still look interesting, bring in some experience. Most people do not realize that the holders of the MBA degree that also work in banking are the corporate soldiers equivalent to the sharks on Shark Tank. Day in and day out their job is to scrutinize and review investment opportunities. They have experience asking the right questions, knowing reasonable investment terms and evaluating the numbers. Getting the opinion of one of these professionals can give you comfort and help ensure that the terms presented by the
business are reasonable. To find one of these professionals, I recommend reaching out to the National Black MBA Association Houston Chapter at president@houstonblackmba.net. Ask them to connect you with a member that works in banking and is willing to: (i) review a business plan for you, (ii) give you a ballpark opinion on the value for buying 10% of the company, and (iii) prepare a 1 to 2 page written summary you can review and discuss with them. After you are connected with someone, be prepared to offer up to $200 to get it done. You may be able to get the review done for free, but be prepared to pay. Your willingness to pay is an acknowledgment that you respect their time. After you get your written review and have had your consultation, if you are comfortable and can afford the investment, move forward and enjoy the ride. Well, you now have steps and resources for quickly doing your homework for a new business opportunity. This kind of investing is not for everyone. You can lose your investment due to a number of unforeseen events. At the same time, you can possibly do very well. Good luck! G. Mathis is the Founder and Chief Investment Officer of Conner Management Group, LLC, a managed account money manager. He welcomes your questions at mathis@connermg.com. Get to know the firm by visiting their website at www.connermg.com, and subscribe to their weekly newsletter about investing.
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July 2015  7
Experience Our World of Advertising, Marketing, Media and Communication
8 July 2015
The Traits of a Leader By Dawn Paul
Associate Editor
T
he theme for this issue of the d-mars.com Business Journal is The Power of Leadership. Because the business environment is constantly changing and getting more and more competitive, there is a great emphasis on leadership now than ever before. The power of leadership is important when it comes to running a successful business. Great business leaders create opportunities, and they are always thinking of ways to expand their business. How do two people have the same type of business, but one prospers and the other one fails? What makes a great leader in business? What are the traits or characteristics of a great business leader? There is such competitiveness in the business world today. A leader’s style can make or break a company or organization. Although an Ivy League education is a great way to get in the door and it can create opportunities, it takes more than an education to be a great business leader. The leader or director of a nonprofit organization may not be the right fit for a corporate environment and vice versa. A leader in business is so important, because the company or organization takes on the personality of that leader. Basi-
cally, the leader sets the tone. A great business leader can create a positive work environment and maximize productivity. To achieve this, that leader must know the business inside and out and lead the team with an appropriate leadership style right for the specific business. According to www.sba.gov, the traits of an effective leader include the following: • Emotional stability: Good leaders must be able to tolerate frustration and stress. Overall, they must be well-adjusted and have the psychological maturity to deal with anything they are required to face. • Dominance: Leaders are often competitive, decisive and usually enjoy overcoming obstacles. Overall, they are assertive in their thinking style, as well as their attitude in dealing with others. • Enthusiasm: Leaders are usually seen as active, expressive and energetic. They are often very optimistic and open to change. Overall, they are generally quick and alert and tend to be uninhibited. • Conscientiousness: Leaders are often dominated by a sense of duty and tend to be very exacting in character. They usually have a very high standard of excellence and an inward desire to do their best. They also have a need for order and tend to be very self-disciplined. • Social boldness: Leaders tend to be
spontaneous risk-takers. They are usually socially aggressive and generally thickskinned. Overall, they are responsive to others and tend to be high in emotional stamina. • Self-assurance: Self-confidence and resiliency are common traits among leaders. They tend to be free of guilt and have little or no need for approval. They are generally unaffected by prior mistakes or failures. • Compulsiveness: Leaders are controlled and very precise in their social interactions. Overall, they are very protec-
tive of their integrity and reputation and consequently tended to be socially aware and careful, abundant in foresight, and very careful when making decisions or determining specific actions. • Intuitiveness: Rapid changes in the world today, combined with information overload result in an inability to know everything. In other words, reasoning and logic will not get you through all situations. In fact, more and more leaders are learning the value of using their intuition and trusting their gut when making decisions. • Empathy: Being able to put yourself in the other person's shoes is a key trait of leaders today. Without empathy, you can't build trust; without trust, you will never be able to get the best effort from your employees. • Charisma: People usually perceive leaders as larger than life. Charisma plays a large part in this perception. Leaders who have charisma are able to arouse strong emotions in their employees by defining a vision which unites and captivates them. Using this vision, leaders motivate employees to reach toward a future goal by tying the goal to substantial personal rewards and values. The power of leadership is vital when it comes to running a successful business. There are certain traits that make for a great leader in business. Leadership is never easy, but a great leadership style can create success for a business.
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July 2015  9
Experience Our World of Advertising, Marketing, Media and Communication
10 July 2015
Be Inspired to Lead in Business By Dawn Paul
Associate Editor
T
he theme of this issue of the d-mars.com Business Journal is The Power of Leadership. Are you a leader in your business? Are you making a mark in the business world? Are you truly doing all you can to make your business competitive, or are you content at being the owner of an average business? Family responsibilities and other unexpected situations can get you off track in regards to your business ventures. However, it’s important to remember that if you’re an entrepreneur, you can’t be average, or your business may suffer. You should always be inspired to lead in your business. Regardless if you have a list of loyal clients, being content is still not an option. In order for you to be a leader in your field of business, you have to constantly have the mindset to grow your business. Because trends change, you need to ensure that your business stays current with those trends. Staying current with the trends helps ensure you not only keep your loyal clients but you gain new clients as well. There are more African-American entrepreneurs and moguls today than there were before, and it’s important to remember those before us who have paved the way. Those before us had nothing or next
to nothing and still made a way to be successful in their initiatives. This should inspire us to lead in business, especially since we have access to more resources and modern technology. Despite the lack of resources they had, there was still great power in their leadership and they created change and opportunities for this generation to succeed. Below are quotes from great AfricanAmerican leaders that will inspire you to lead in your business: • “Whatever we believe about ourselves and our ability comes true for us.” - Susan L. Taylor • “Have a vision. Be demanding.” Colin Powell • “When I dare to be powerful – to use my strength in the service of my vision, then it becomes less and less important whether I am afraid.” - Audre Lorde • “Success is to be measured not so much by the position that one has reached in life, as by the obstacles which he has overcome while trying to succeed.” Booker T. Washington • “Never be limited by other people’s limited imaginations.” - Dr. Mae Jemison • “I have learned over the years that when one’s mind is made up, this diminishes fear.” - Rosa Parks • “I am a businessman. This is what I do each and every day. I love it. I love coming to work. I never have a bad day.” -
Earvin Magic Johnson • “Leadership should be born out of the understanding of the needs of those who would be affected by it.” - Marian Anderson • “There is a great deal of work to do, and it calls for sacrifice and determination on the part of those who are leading, and if men believe that money should be the only consideration for leadership, then there can be no successful achievement.” - Marcus Garvey • “A man’s bread and butter is only insured when he works for it.” - Marcus Garvey • “Everything is worth it. The hard work, the times when you’re tired, the times where you’re a bit sad. In the end, it’s all worth it, because it really makes me happy. There’s nothing better than loving what you do.” – Aaliyah • “Labor is the fabled magician’s wand, the philosopher’s stone and the cap of good fortune.” - James Weldon Johnson
• “Never work just for money or for power. They won’t save your soul or help you sleep at night.” - Marian Wright Edelman • “The hardest work in the world is being out of work.” - Whitney Young, Jr. • “The worker must work for the glory of his handiwork, not simply for pay. The thinker must think for truth, not for fame.” - W.E.B. Dubois • “There’s no free lunch. Don’t feel entitled to anything you didn’t sweat and struggle for.” - Marian Wright Edelman • “What I know is, is that if you do work that you love, and the work fulfills you, the rest will come.” - Oprah Winfrey • “Work like you don’t need the money. Love like you’ve never been hurt. Dance like nobody’s watching.” - Satchel Paige • “You know you are on the road to success if you would do your job and not be paid for it.” - Oprah Winfrey You should stay inspired to lead in your business. Staying on top is the name of the game. African-American entrepreneurs must work hard to stay competitive. Remember to always do all you can to keep your business competitive. As an AfricanAmerican entrepreneur, you can’t be content with being average, or your business may suffer. Always be inspired to lead in your business, because the power of your leadership may help inspire the next generation of African-American entrepreneurs.
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In the Business Community…
July 2015 11
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Experience Our World of Advertising, Marketing, Media and Communication
12 July 2015
Stock Options: High-Risk, High-Payoff Possibilities a certain date in the future – usually less than a year.
Investing & Gambling
By Mathis Conner
W
Contributing Writer
e sometimes hear in the news about an executive at a corporation receiving stock options as part of his total pay package. Those stock options are completely different from the ones we will be talking about. The stock options we will be talking about are bought and sold on major exchanges, just like stocks. Stock options are contracts you can buy and sell, just like a stock or a mutual fund. Buying them is not as simple as buying a stock, but it’s not complicated either. Buyers of stock options use them for different purposes. Some people use them like insurance policies to protect existing profits they’ve made on stocks. Others use stock options as a highpayoff investing opportunity – that is a combination of investing and a gamble. And then there are those who use them as a high-payoff bet. Those buying options as an investment or gambling opportunity are looking to make quick and large profits by making bets on the direction of a stock’s price by
Now when you hear the word “bet,” you naturally think of Las Vegas, and you should. In the world of stock options, you can lose your shirt almost as quickly as you can in Las Vegas if you don’t know what you’re doing. But as the word suggests, there is the opportunity to make substantial returns. What can be especially attractive about stock options that many overlook is that you can choose how risky of a gamble you want to make. Unlike at a roulette table, you truly have some control over the odds of the game. Another attractive feature when it comes to buying options is that by doing your homework, you can improve your odds of a favorable payoff. With homework, you can make your option contract purchases more of a well-researched investment opportunity and less of a speculative gamble.
Basic Concepts Stock options are contracts that you can buy and sell, just like a stock. When you buy stock options, you are buying what are called “options contracts.” There are two kinds of options contracts. One is called a “call option contract.” The other is called a “put option contract.” These contracts are very simple and straightforward. The same online services you use to buy stocks read-
ily allow you to buy options contracts. E*TRADE, Fidelity, Schwab and Interactive Brokers - all of the major online brokerage firms allow you to buy and sell options contracts. Concept 1: You buy a call option contract when you want to bet that the price of a stock is going to go up. You buy a put option contract when you want to bet that the price of a stock is going to go down. Concept 2: A call option contract gives you the right (but you do not have to) to buy a specific stock at a specific price, any time before the option contract’s expiration date. A put option contract gives you the right (but you do not have to) to sell a specific stock at a specific price, any time before the option contract’s expiration date. Concept 3: You are not required to do anything after you buy them. The contracts will expire in the future and be worth something or nothing.
Example Let’s say you did some homework that makes you very confident that Microsoft’s stock is going to go up significantly over the next 3 months. Since you are confident the stock price will go up and you are looking for a fast and significant return, you want to consider buying Microsoft call option contracts. You then have two additional choices to make: (1) the option contract’s strike price; and (2) the option contract’s expiration month
Again, a call option contract gives you the right to buy a specific stock at a specific price called the “strike price” before the option contract expiration date. After the expiration date, if a buyer has not sold his/her option contract yet, the contract is either worth something or it is worth nothing. What determines if it’s worth something? It depends primarily on the change in the price of the Microsoft stock. The option contract is going to have a certain cost/value right now. The price of a call option contract will go up if the stock price goes up. It’s just that the call option price will go up much more on a percentage basis than the stock itself.
Summary Now everything we just shared about call option contracts also applies to put option contracts. However, you are just betting for a decline in stock price. Stock options are not for the faint of heart. However, we are confident your odds of success are much better than the returns you get in Vegas. If you want to learn more about stock options, we suggest you find a book on amazon.com or send us your questions. Enjoy the knowledge. G. Mathis is the Founder and Chief Investment Officer of Conner Management Group, LLC, a managed account money manager. He welcomes your questions at mathis@connermg.com. Get to know the firm by visiting their website at www.connermg.com, and subscribe to their weekly newsletter about investing.
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How Women Can Plan for Their Financial Futures By d-mars.com News Provider
A
re women more diligent savers than men? A 2014 study conducted by Fidelity Investments seems to suggest so. Fidelity’s research found that women saved more than men in their 401(k) plans, as of the year ending Sept. 30, 2014. This stems from the fact that women joined their employer’s retirement plans in greater numbers than their male counterparts. Yet women still aren’t without their own financial hurdles. While the Bureau of Labor Statistics found that women are 33 percent more likely to earn a Bachelor’s Degree than men, they still earn 77 cents for every dollar their male colleagues take home, and that wage gap has been difficult to close. This is a key reason why it’s important to make every dollar count. Regions Bank, one of the largest U.S. banks with 1,650 branches across 16 states, recently launched a Women and Wealth program dedicated to helping women learn more about personal finance and investing – particularly women in their 20s and 30s, given that they have decades of work and saving ahead of them. It all begins with developing good savings habits. A general rule of thumb is to save 10 percent of your income, specifically in a tax-advantaged retirement account such as an employer’s 401(k) plan.
Simplified Employee Pension (SEP-IRA) plans are available for the self-employed and come with a tax deduction that will help you owe less to Uncle Sam each year. Of course, no one knows what the future will bring, which is why it’s impor-
tant to have at least three months’ worth of savings in the event of an emergency. This will allow you to cover key expenses such as rent or mortgage, food and car payments, and more. It’s true that creating this nest egg takes time, so give yourself a solid eight to 12 months to
accumulate this cash, and keep it somewhere safe such as a savings account or money market account. Now, is it possible to be too concerned with safety? Unfortunately, the answer is yes. While some may be tempted to avoid the stock market due to fears of volatility or the threat of a bear market, doing so could leave you at risk of falling short of your investment goals and not accumulating enough assets for a comfortable retirement. Investment vehicles such as your employer’s 401(k) plan or an IRA account can be great options, but your choices don’t end there. For the savvier investor comfortable with a higher amount of risk, alternative investments such as real estate investment trusts (REITs) or private equity (PE) offer the opportunity for handsome returns and a level of diversification that can serve as a buffer from any momentary fluctuations in the stock market. That said, REITs and PE are somewhat more complex than traditional retirement accounts, which makes seeking the help of a professional all the more important. The growth of women’s saving habits is important because, according to the U.S. Department of Labor, nearly half (47 percent) of the U.S. labor force is comprised of women, and that percentage will likely climb higher in the years to come. By developing positive saving habits now, these women not only benefit themselves but the economy as a whole. – BPT
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14 July 2015
4 Top Technology Degrees for Today’s Career Seekers By d-mars.com News Provider
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he career outlook for technology professionals remains highly promising. With so many emerging employment opportunities, The White House announced the TechHire initiative in March to encourage American cities to offer training to prepare the workforce for careers in growing tech fields. The United States has about five million open jobs today, which is more than at any point since 2001. Over half a million of those job openings are in information technology fields like software development, network administration and cybersecurity, many of which did not exist just a decade ago. As an added incentive for Americans to pursue tech careers, the average salary in a job that requires information technology (IT) skills – whether in manufacturing, advertising, retail or banking – is 50 percent higher than the average private-sector American job. “Our information technology students today are enthusiastic about the future job,” says Dr. Rajin Koonjbearry, professor and cyber security expert at DeVry University. “Not only are traditional IT careers standing out, but increasing private information online calls for cyber security
experts to help companies protect against threats.” Here are some of the most valuable tech specializations and degree programs available to career seekers today:
1. Cyber Security Cyber security has been listed by The World Economic Forum as one of the top five global risks in terms of likelihood, and has been ranked as a top concern in federal chief information officer surveys. The White House even released an executive order aimed at improving critical infrastructure cybersecurity. Demand for cyber security professionals continues to rise, with the Bureau of Labor Statistics predicting a 37 percent increase in information security analyst jobs through 2022. To meet this demand, colleges and universities are starting to offer degrees in cyber security. In May, DeVry University unveiled a new Cyber Security Programming specialization within its Bachelor of Science in Computer Information Systems program, available on campus or online in select states. The program includes Systems Security Certified Practitioner (SSCP) preparation and exam facilitation, a key credential employers may require in hiring cyber security professionals that has been accredited by the
American National Standards Institute (ANSI).
2. Health Information Systems Another fast-growing tech specialization is in health information systems. The North American healthcare technology market is predicted to grow significantly to more than $31 billion by 2017, up from approximately $22 billion in 2012, according to Research and Markets’ North American Healthcare IT Market Report. Demand for health informatics specialists is partly driven by the growing complexity of healthcare operations, government initiatives to promote IT in hospitals and the shift toward paperless billing and payment environments. Students who earn a bachelor’s degree in computer information systems can pursue professional certification as a Certified Associate in Healthcare Information and Management (CAHIMS) to show employers their knowledge and skills.
3. Systems Analysis and Integration Computer systems analysts play a vital role in researching, planning and recommending software and systems that best meet an organization’s business requirements. These analysts combine their knowledge of information technology and business to manage the organi-
zation’s overall computer system – from designing and developing new systems to helping networks run more efficiently and effectively. According to a new market report, the global market for system integration is expected to grow at a compound annual growth rate of nearly 11 percent from 2014 to 2020. Following graduation, students who want to stand out from the competition can pursue a post-baccalaureate certificate in Information Systems and Management.
4. Web Development and Administration The Bureau of Labor Statistics projects about 20 percent employment growth for Web developers by 2022. During that period, about 28,500 new jobs will need to be filled in an industry that already has roughly 141,400 positions. The expansion of e-commerce is expected to fuel this high job growth in the coming decade. Companies need web developers who can design webpage layout and solve code problems, help expand their online retail presence and safeguard the site and end users’ privacy. Given the high job growth rates expected in these four areas, bachelor’s degree candidates are increasingly looking for programs that meet their future career aspirations. A specialized degree, especially when paired with a professional certification valued by employers, can open doors to a rewarding career. – BPT
Over 50? Time for a financial checkup. Brandon Herndon, Agent 10103 Fondren Houston, TX 77096 Bus: 832-431-4222 brandon.herndon.rv4s@statefarm.com
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Especially as you near retirement. Be proactive when it comes to your financial health. It’s never too late to get on the right path to a healthy financial future. Let me help you get where you need to be. Like a good neighbor, State Farm is there.® CALL ME TODAY.
State Farm, Bloomington, IL
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July 2015  15
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16 July 2015
What’s the Real Cost of That Auto Repair? How to Know if You’re Paying the Best Price By d-mars.com News Provider
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o you take your car’s “health” for granted? Only when the check engine light comes on do you realize how important a fully functional vehicle is to your daily life. Feelings of fear, regret and anxiety often rush in: “Will my car break down?” “Should I have gotten my oil changed sooner?” Can I trust that I’m receiving a fair price for repairs?” These are all reasonable concerns, according to Joe Wiesenfelder, Cars.com executive editor. “According to Mintel, on average, drivers spend nearly $1,000 per year maintaining their cars, and that number will likely only increase as the average age of vehicles continues to get older,” says Wiesenfelder. “Even more important, a recent survey by Cars.com and Toluna found that one in three drivers don’t trust that the prices mechanics quote to them are fair. ‘Expensive’ and ‘stressful’ are the top words that come to mind for many consumers when they’re thinking about car maintenance and repairs.” Knowledge is power, but for many
consumers, car maintenance can be shrouded in mystery. Many don’t know which mechanic to go to, how much to pay or if the price they’re being quoted is accurate. Thankfully, tools and resources are available to help drivers confidently navigate the automotive service and repair process. Here are a few expert tips, resources and busted myths to arm you with the information you need to make informed, confident decisions about car service: 1. You probably don’t need to change your oil every 3,000 miles. Due to technology advancements, many auto manufacturers recommend changing oil at intervals of 7,500 miles or more for new cars. 2. Does a dirty air filter really hurt performance? A clogged air filter won’t significantly affect fuel economy, but it can reduce acceleration from 6 to 11 percent, according to a U.S. Department of Energy Study. For that reason, it’s a good idea to periodically visually check the engine air filter. 3. Cars.com has launched a new ”Service & Repair” feature that provides a fair price estimate for different types of service, helping ensure drivers never overpay. The online tool also helps drivers find local service providers and offers
reviews from actual customers to help them find a quality mechanic. 4. Drivers expect the tires that come with their new vehicle to last a long time, but tire life depends on many factors, including: the quality of the tire, its treadwear rating, whether it is an allseason, summer performance or winter tire, the type of vehicle and where and how it is driven. 5. Service engine? If the check engine light comes on and has a steady illumi-
nation, that indicates a possibly serious issue, and it should be dealt with quickly by a mechanic. If the check engine light is flashing, find a place to park the vehicle and turn the engine off as quickly as you safely can. Ignoring your check engine light increases the likelihood of additional problems. For more information, tips and to learn more about Cars.com’s Service & Repair tool, visit www.cars.com. – BPT
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18 July 2015
Level Up!
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By Noel Pinnock
Contributing Writer
randing has become the crux of selling in the new economy. If the old marketing mantra was “Nothing happens until somebody sells something,” then the new philosophy could be “Nothing happens until somebody brands something.” In its simplest form, a brand is a noun. It is the name attached to a product or service. However, upon close inspection, a brand represents many more intangible aspects of a product or service. It is a collection of feelings and perceptions about quality, image, lifestyle and status. It creates in the mind of customers and prospects the perception that there is no product or service on the market that is quite like yours. In short, a brand offers the customer a guarantee and then delivers on it. You might infer that if you build a powerful
brand, you will in turn be able to create a powerful marketing program. However, if you cannot convince customers that your product is worthy of purchasing, no amount of advertising dollars, fancy packaging or public relations will help you achieve your sales goals. Therefore, successful branding paradigms begin with superior products and services, backed by excellent customer service that permeates an entire organization. Jim Collins refers to this as the three circles of the Hedgehog Concept. In his book, “Good to Great,” he writes: “To quickly grasp the three circles, consider the following personal analogy. Suppose you were able to construct a work-life that meets the following three tests. First, you are doing work which you have a genetic or God-given talent, and perhaps you could become one of the best in the world in applying that talent. (‘I feel that I was just born to be doing this this.’) Second, you are well-paid for what you do. (‘I get paid to do this? Am I dreaming?’) Third, you are doing work you are passionate about and absolutely love to do, enjoying the actual process for its own sake. (‘I look forward to getting up and throwing myself into my daily work, and I really believe in what I am doing.’)” In conclusion, building your company’s
paradigm does take work and involves knowing your customers and products/ services. However, most of all, you must ask yourself three underlying questions: 1. What can your company/organization do better than anyone in the world? 2. What drives your company’s/organization’s economic engine? 3. What is your company/organization deeply passionate about? When you are able to respond to these questions about your organization, then you will have to determine where you fit within the paradigm. The highest level in a hierarchy of leadership capabilities is
the Level 5 executive. Leaders at the other four levels in the hierarchy can produce high levels of success, but not enough to elevate organizations from mediocrity to sustained excellence. Good-to-great transformations don’t happen without Level 5 leadership. Remember, accomplishing anything requires discipline and determined, definable and deliberate actions with a clear goal in mind. We are what we repeatedly do well. Excellence therefore, is not an act, but a habit. www.noelpinnock.com
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July 2015  19
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20 July 2015
4 P’s of Equity Crowdfunding in Texas
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By Cynthia Nevels Contributing Writer
exas believes in investing in the future, creating jobs and driving innovation. That’s why it is not hard to believe Texas leaders have created new rules to help Texans participate in investing in the future, creating jobs and driving innovation - online. Raising capital to launch a new startup in Texas is much easier, or is it? In November 2014, the Texas State Securities Board amended their 30-year-old regulations to adapt to changes in economic development. The new intrastate crowdfunding regulations now permit small businesses to sell equity in private businesses via online crowdfunding. According to recent reports, equity crowdfunding – a tool for raising capital online in exchange for ownership in a local business – has grown from $1.5 billion raised in 2011, to a predicted annual total of nearly $11 billion in 2015. Albeit, the tools, technique and strategies have changed, but the end results remain the same. Create a product or idea, prove your model, develop your pitch and connect with varying sources of capital to obtain the funds you need to go to market, expand or grow. Historically, entrepreneurs were left to utilizing traditional sources of capital from family, friends, personal loans, credit cards or bank loans. But equity crowdfunding online is changing that, and more traditional institutions are adapting in Texas. “Just as smartphones and the Internet have become necessary to do business, crowdfunding has become a part of
the ongoing dialogue of access to capital to spur small business development and growth,” states Vanessa Reed. In 2014, the pool of investors increased astronomically. Now, 20 million Texas residents became new sources of capital that local small businesses can connect with to pitch their business or project ideas to in hopes of raising enough capital to push their innovative ideas forward. “Whether it is capital to help launch a product, gain brand recognition or to meet cash flow needs, equity crowdfunding can be a solid option for high quality businesses,” says Rick Galloway, Founder of Conduit Advisory Partners located in Dallas, Texas. How do the growing number of high quality businesses take advantage of the new regulations and widening pool of investors? The process for exchanging equity in small local businesses and raising capital using online equity crowdfunding portals is complicated. Entrepreneurs are searching for answers to make the process less complicated. Hundreds of Texans have attended Texas’ Think First Equity Crowdfunding Town Halls. The free events have been held in major cities across Texas and hosted by ThinkCrowdFund.com in collaboration with the Texas State Securities Board, CrowdPay.com, Comerica Bank and four of the eight approved equity crowdfunding portals in Texas. The Town Halls are designed to connect investors and potential issuers with experts who have created portals and resources to help demystify the process for selling shares online. Event coordinators found the primary challenges participants face are understanding the fundamentals of how to comply with regulations, sell shares in the business and entice the crowd to invest up to $5,000 (the maximum amount allowed per nonaccredited investor) into local businesses. “We believe crowdfunding can actually work with traditional bank lending rather than in place of. For example, a small business that needs $200,000 to expand
, but only qualifies for a $100,000 small business loan might consider crowdfunding for the first $100,000, while involving the community and creating awareness,” shared John Johnson, President of GoldStar Trust Company; the makers of CrowdPay.com, a crowdfunding payment processing and escrow company. The need to facilitate the process for raising capital online is evident and the following tips were created to help entrepreneurs build better equity crowdfunding strategies to position themselves for a successful raise.
4 P’s of Equity Crowdfunding in Texas Prepare Prepare your business to invite guests into your operation. There is nothing worse than having guests come into your home and you are unprepared to entertain and show them around. Be sure you can provide proof of residence for all majority stakeholders in the business. If you want to use other people’s money, you have to be prepared to answer all of the hard questions. Plan Create a viable equity crowdfunding plan of action. Some equity crowdfunding portals provide free education and tools to help issuers develop a strong campaign. Keep in mind the goal is to raise
capital. Promote Once the numbers, data, and plan are complete, it is time to leverage the information and promote the campaign. There are rules for how an equity crowdfunding campaign can be promoted. Be sure to visit the Texas State Securities Board’s informative website at www.ssb.state.tx.us. Produce Once the preparation, planning and promotion are complete and you have successfully raised the initial capital you needed, it is time to deliver what you promised. Be sure to create a system for effectively and efficiently communicating with all of your new investors on a regular basis. Along with wanting to know when they can expect a return on their investment, investors will want to know how the business is doing, how much revenue has been earned, the number of new clients and status updates on the products and services. Also, remember you must be transparent with financial data and also provide end of the year financial reports to each investor. Cynthia Nevels is a Senior Partner for Integrality, LLC of Dallas, Texas, a global management consulting firm providing accounting, data integration, business financing and marketing services to small to midsize businesses and government agencies for over fifteen years.
Six Ways to Make Your Business Better This Summer By d-mars.com News Provider
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ummer is here, so make sure to get out, enjoy the great weather and take a well-deserved break. And if you’re running a small business, this summer offers a great opportunity to take a deep breath before taking action to make your business even better as you head into the second half of the year. Here are some suggestions from small business expert and author Gene Marks on how to get started: 1 - Do a productivity review. Now’s the time to find those expensive inefficiencies and make some changes. Do you really need to be doing your copies in-house? Are you spending too much time shipping products? Have you de-
voted hours to fixing tech problems? To save time and money, look for solutions outside your company, such as shipping at your local Staples store to help your staff streamline day-to-day activities and troubleshoot issues in advance. 2 - Evaluate your employees. Midyear is a great time to sit down with your employees, one-by-one, to discuss how things are going. Update their personnel files, medical records and personal information. This is also a great time to decide on a few goals for the remainder of the year. 3 - Clean up your office. Did you miss your spring-cleaning opportunity? No worries, you still have time. Get rid of those old files. Replace your ancient office chairs. Wipe down those windows, clean out those closets, dispose of unused
supplies and vacuum, mop and sweep. You and your employees will enjoy coming to work when the office is cleaner and brighter. 4 - Revisit safety. When was the last time your fire extinguishers were replaced? Are your first-aid kits up to standards? Do you even have a first-aid kit? Do your employees know what to do in case of an emergency? Make a checklist of all the things you’ll need to do to make your company as safe as it can be. 5 - Go green. You want to be more environmentally conscious, but you’ve always been too busy to do so. Now’s your chance, because summer is a perfect time to go green. Recycle your old technology. Start an ink and toner recycling program. Purchase environmentally friendly cleaning products and make
a list of green products you’ll be buying going forward. Finally, make sure to tell the world what you’re doing. It’ll encourage others and reflect positively on your business. 6 - Upgrade your tech. Hopefully as the economy has grown, your business will have grown too, and now’s the time for upgrades to your company technology needs. Work with Staples EasyTech associates to determine where investing in better technology will improve your profitability and productivity going forward. There you have it. Summer is not only a great, warm, chilled-out time to relax and spend time with the family, it’s also a great time to make some changes in your business so you can enjoy the benefits all year long. – BPT
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