Behind the
Journal
Learn and Live
Table of Contents
Publisher’s Message Keith J. Davis, Sr.
Publisher Keith J. Davis, Sr. Editor-in-Chief J. Monet Roberson Vice President of Operations Marlon Jackson Multimedia and Layout Director Jasen Adams Creative Layout J. Monet Roberson Assistant Multimedia Director Albert Reff Multimedia Designers Andrea Hennekes
Publisher’s Desk…….............…..3 Happy 2006! The theme for this issue is “Learn from the past, to apply to the present, and prepare for the future.” As we journey into a brand new year, with brand new opportunities, and yet another “brand new” chance to “get things right”, I strongly believe that in order for us to progress in the “now”, we must reflect on our past. I believe that it is necessary to “reflect”, (not dwell) on our past- collectively, as well as individually, in order to move forward and conquer all obstacles and attain all goals. Reflecting on our past gives us a chance to learn from our mistakes, and gives a chance to monitor our progression and fully appreciate our goals once they are reached. The front cover features myself, my father, Booker T. Davis, Jr., and my son, Keith D. Davis, Jr., as a metaphoric visual of the wisdom of my father’s generation, the now, and my son as the building of our future generation. No, there is no major cover story on the Davis family (not in this issue, at least), however, the photo was placed in order to signify the strength of the theme. Learning from the past- (whether its our personal past, or a group/historic past) and applying it to the present will undoubtedly allow us to build with a greater foundation in future years to come. Get it? The following exert comes from this issue’s Farrah Gray interview, a quote that we all know too well: “What is common sense isn’t always common practice.” He couldn’t have hit it more on target. So why don’t we do just that? Lets apply this common sense towards building a more successful 2006? Lets apply the knowledge of the past to use in the present , to build a more stable future. Lets Make It Happen!
Marketing Director Burt Brown Distribution Phagan, Inc. Booker T. Davis, Jr. Senior Administrator Cynthia R. Hepner Administration Shannon Miles
Contributing Writers Angela Collins Deacon Ramone Harper Bobby Bryant Jeffrey Boney Kenneth Glover Dr. Wendy Johnson Keith J. Davis, Jr. D-MARS Business Journal 9898 Bissonnet, Suite 570 Houston, Texas 77036 713-272-9511 Phone 713-272-6364 Fax 1-800-453-8752 Toll Free www.d-mars.com
Editor-In-Chief J. Monet Roberson In observance of Black History Month, we at D-MARS Business Journal wanted to give more than a few facts of notable Black Americans. We wanted to bring it closer to home. This issue not only has Houston Black history facts printed on the bottom of each page, but also profiles various successful business figures that have etched a name within their respective fields. I personally believe that Black history in America is American history, and I strongly feel that our history should not be confined to just 28 days of observance. Keith’s theme of “Learn from the past, to apply in the present, and prepare for the future” further prompted me to pursue a story on Black entrepreneurship. Just working on this issue made me realize how under educated I was in Black history. I spent endless hours researching people and events, and surprised myself at my findings. Did you know that in 1621 a slave named
Anthony Johnson saved to buy his way out of bondage? I didn’t know that! I also learned that the history of Black entreprenuership in America started with Johnson. He and his wife Mary purchased land and raised livestock in Virginia. The couple eventually acquired 250 acres and made a profitable living as farmers. Why wasn’t I taught this in school? The sheer ignorance of my own history absolutely nauseates me. In efforts to educate and inform our readers, a story on the history of Black entrepreneurship in Houston sounded like a wonderful idea. The problem was, however, that even with ten years of professional journalism under my belt, this article had to have been one of the most challenging- I had no idea where to start! I’d like to say thank you to celebrity publicist/society writer/ Internet P.R. genius Ar Lena Richardson, who helped with the research, and with briefing me on the “Who’s who of prominent Black Houston”; News anchor Jerome Gray, who put me in touch with his wonderful father-inlaw, Mr. Chase; Mrs. Audrey Lawson, for introducing me to a few colleagues, as well as 90.9’s Natalie J., who listened to
Calender ..................……………..5 Advice from the Pros ...................6 Featured Person .........................7 Finance…..............................….....10 Coverstory ....................………..14 Featured Businesses....................18 Keith J. Davis Jr.’s Corner........19 Spiritual.........................................20
me wail for only three minutes, then made all the necessary calls to put me in touch with several accomplished Houstonians. Because of the support of the aforementioned, I’d been able to gather dozens of interviews. So many, in which I will begin a series on Black entrepreneurship in Houston, debuting in this issue. Aside from the marvelous cover story, I had the opportunity to interview the 20 year old self-made multi-millionaire Farrah Gray. His wisdom and personable attitude absolutely baffles me. He’ll definitely be written about in the history books- no doubt about it. Locally, Deavra Daughtry and her story of success and love for helping others made for a great profile story, as did the success story of Al Colbert and Ja Ja Ball of Colbert/Ball Tax Service. Overall, it must be said that I am absolutely proud of this issue. The theme, the content, and the additional knowledge that I’ve recently acquired makes me feel proud of this issue. I sincerely hope that our readers enjoy the content, and, as Keith says, “Learn from the past, to apply in the present, and prepare for the future”.
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D-MARS BUSINESS CONNECTIONS This winter’s debut of D-MARS Business Connections was an absolute success! Hundreds gathered at The Grand Room on November 29th for an evening of networking, business discusion, live music, as well as a wonderful array of complimentary food. Topics of discussion with some of the city’s most successful business figures ranged from banking matters to the benefits of joining local organizations. Photos taken by Marlon Jackson
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A group enjoys dinner before attending the discussion
Al Colbert, Mr. D-MARS, Sharon Phillips
Darian Ward
Bobby Bryant and Ron Reynolds (NAACP Missouri City)
Dr. Kevin Simms, Danny Mc Kinney, and Mr. D-MARS discuss NAABA
Dr. Elwin Lee and J.R. (S&B Infrastructure)
Jeffrey Boney, Sharon Phillips, and Autumn Osborne
J. Monet, J.R., Dr. Kevin Simms
D-MARS Business Connections audience
1935 Houston’s first black civic organization, The Negro Chamber of Commerce was founded. Its mission was to assist, promote, and recognize African-American businesses. The organization was renamed as The Houston Citizen’s Chamber of Commerce.
D-MARS’ CALENDER OF EVENTS For information on how to list your event on the calendar, call D-MARS at 713-272-9511.
*Texas Womens’ Empowerment Foundation Presents3rd Annual Community Entreprenurial Business Forum Saturday, January 21st, 10am- 1pm @ Houston Community CollegeCentral Campus, 1300 Holman. Topics for discussion: Writing business plans, acquiring grants, loans, money management, and much more. For more information, call 832-327-0953 or visit www.twef.org.
*The National Black Public Relations Society- Houston Chapter will host their chapter debut luncheon on Saturday, January 28th. Open to P.R., Marketing, and Media Professionals. NBPRS was founded in 1981 and has over 4,000 members/affiliates. For details on the event, call 713-PR-GROUP, or 713-373-2299.
*Listen and Exchange 2006 - Entertainment Attorney Dedra Davis *Greater Houston Business and Procurement Forum Networking will present her music networking event on Friday, February 24th Breakfast Tuesday, January 24th @ 8am. Houston Community at the Hyatt Regency- Houston. For more information, visit www. listenandexchange.com or call 713-981-3861. College Administration Building, 3100 Main @ Elgin. $5. Business Networking Breakfast at the Higher Dimension Church Saturday, January 28th @ 9am. 9800 Club Creek Drive, Houston. Open to all current and aspiring entreprenuers, 4th Saturday of every month. For more information call Deacon Ramone Harper at 713271-7217.
*Tavis Smiley Presents... State of the Black Union from Houston, Texas. Saturday, February 25th @ St. Agnes Church, 3703 South Acres Drive. Register for the annual televised event by visiting www. tavistalks.com, or calling 215-877-2102.
D-MARS needs contributing writers, photographers, and sales *D-MARS Business Connections, a monthly networking event, will people. Please email resume or samples to jmonet@d-mars.com. be held on Tuesday, January 31st , 8:30- 9:30pm The free event, which gives hundreds of small business owners an opportunity to meet other business owners and executives, is held on the last Tuesday of each month at The Grand Room, 1521 Austin St., Downtown Houston. For more information, call D-MARS at 713-272-9511.
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Advice from the Pros:
Preparation is the Key: Seven tips on starting a new business in 2006 By Dr. Wendy Johnson Corporate downsizing is a reality in today’s workplace. Yes, it can be a great accomplishment working for a big company, but it is also a great accomplishment following your entrepreneurial dreams as well. However, before you follow your dreams, you must develop a plan for success. 1. Select a field that you are passionate about – It ensures that your business start-up will not be like an actual “job”. People typically hate what they do for a living because they do not truly enjoy it. Many times, people lose interest in their start-up because they are incompatible with the line of business itself. Your new business must fulfill one of your immediate interests. 2. Know your competition – Once you have an idea, you should thoroughly research your potential competition. If you come across a lot of compettion, do not let it discourage you! Research on the competitor is needed to effectively plan your course of action. 3. Define and research your target market – Define your target market. Assess all demographics (income, age, race, organization size), and any other customer type that you wish to target. Market research makes developing your business much easier than “guess work” alone. 4. Prepare a Business Plan – This is the most vital part of developing your business. As you come up with an idea, write it down. Keep all financial records handy, compile all research of your idea, and gather the best trade and
personal references. Doing this allows you to map out a step-by step plan for the business. Contact the Small Business Administration or D-MARS for help with creating a successful business plan. 5. Research various ways to finance your business – Be sure to keep secure means of income until your business is self-sufficient. Successful business owners advise that you save at least six to eight months of cash before quitting your job. Other options to consider are grants, loans, donations, as well as searching for investors. 6. Decide on a location – Location is everything, but it also can be costly. When searching for your company’s location, it is important that you assess how much money is needed for rent, electricity, insurance, etc. You must also know the distance between your location and your competitor’s, as well as the accessibility for your prospective clients. Many new businesses cut start-up costs by starting as home-based businesses, then upgrading to an outside location. 7. Research various ways to market the business – Utilize all means to make your business noticeable to the public. Develop a complete corporate identity(logo, letterhead, website, business cards), and a lot of networking. Starting a business will take a lot of hard work, dedication and focus. Before you take the plunge, you must ensure that you are passionate your decision, dedicated to the cause and focused on your dream. If you have these three traits, you’ll have the tools needed to conquer the “Road to Successful Entrepreneurship”.
The Next Generation in Entreprenuership: A conversation with Farrah Gray By J. Monet Roberson
At the age of 14, business and social entreprenuer Farrah Gray made a historic mark by being the youngest African-American to rise from public assistance to millionaire status without being in entertainment or having family connections. Farrah Gray’s success has increasingly gained world-wide attention since the release of his book last January, Reallionaire: Nine Steps to Becoming Rich from the Inside Out: The Essential Lessons That Took Me from Public Assistance to a Millionaire. The book has sold millions of copies since its debut, and appeared on Amazon and Barnes & Noble’s Bestseller List two weeks before its international release. Now, at 20, Gray’s accomplishments are undoubtedly growing by the year. Most recently, he’d been invited by President Bush and his staff to participate as the youngest member in the African-American Leadership Roundtable Summit, scheduled for March, 2006. D-MARS Business Journal’s Editor, J. Monet Roberson, caught up with Gray at his Las Vegas office for a candid interview and insightful discussion.
DBJ: What is a reallionaire? Farrah: A reallionaire is someone who is rich from the inside out. Growing up I saw millionaires who were rich, but miserable people. I met poor people who were rich on the inside. For me, I wanted to be the combination of both. That’s where reallionaire comes from.
DBJ: How did the book Reallionaire come about? Farrah: At 13 years old, I realized [that by speaking so much] that I could write chapters just off of my speeches. I played with the idea, and a few years later while I was on National Public Radio, a publisher from Chicken Soup for Your Soul called after a show and said, ‘We think there’s a book in you.” I then told them about the Farrah Gray Foundation, and how I was putting together small books. They saw the book, and then they wanted to assign a writer. I wrote 100,000 words myself, then it was edited down to 60,000. I was quite surprised at the book’s success.
DBJ: Did you go to college? Farrah: No.
DBJ: Where does all of your knowledge come from? Farrah: Someone once told me “Boy, how do you know what it takes to be successful? You were born yesterday.” And I responded, “Yes, I may have been born yesterday, but I stayed up all night.” (He chuckles) I believe education is important whether its formal or not. Everything I’ve learned has been self-taught, hands-on, or through a mentor. In every business I’ve gone into, I’d immerse myself completely into the field. If it was for example- if it were the food industry, I’d attach myself to everything that says ‘food’. A conference, a seminar, a convention, a supermarket college, everything. I could then present different marketing strategies that would compliment the strategies of where the grocery chains wanted to go.
DBJ: What does it take to be successful? Farrah: Discipline. To be successful at anything you want to do, discipline. My number one asset is discipline. I believe that discipline is the ability to do things you’re supposed to do when you don’t want to do them.
DBJ: Why do you think many people have a hard time with discipline, or focusing, in the relation of attaining success? Farrah: I think many times we don’t have discipline because we begin to Continued on page 21
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Advice from the Pros:
Five Tips to Squash Public-Speaking Fears By Sean Lyden You know that conducting seminars and giving speeches are great ways for you to boost your credibility and generate clients and referrals, but you’re scared to death of public speaking. Take comfort in this: You’re definitely not alone. Forty million Americans are so terrified of speaking to a group that they’d do almost anything to avoid it. In fact, according to an oft-cited study done by Brushkin-Goldring, more people said they feared public speaking than feared death. Why do people clam up? The primary reason, according to Lilyan Wilder, author of 7 Steps to Fearless Speaking and a consultant to broadcast correspondents at ABC, CBS, NBC and CNN, is that many people dread feeling isolated when they are the focal point in the room. “If you’re seated--especially if you’re behind a table--you have protection. You’re on an equal basis with the people you’re speaking to around the table,” says Wilder. “But when you stand up, the pressure’s on: You’ve got to be the leader. You’ve got to show the way. Then you suddenly feel the palpitations, you get short of breath, your hands may shake and knees buckle.” How can you overcome the fear of public speaking to accomplish your marketing and publicity goals? Here are five tips: 1. Do what you fear--and do it often. If your problem is speaking in public, tackle it head on. Try to speak at as many public venues as you possibly can until you dominate that fear. When you do, you’ll find that people are really there to hear from you and learn from what you have to say. 2. Take stock of your assets. On a sheet of paper, write down the reasons why you think your message should be heard and why you’re the best person to communicate that information. This exercise will boost your confidence when you feel most intimidated. 3. Start in a low-risk environment. Build your confidence by speaking regularly to smaller, more sympathetic audiences before taking on a high-stakes speech. 4. Put your fear in perspective. Which is more terrifying to you--giving a speech in front of 50 people or not fulfilling your business or career goals? How will giving in to this fear affect your salary or sales levels? Put a dollar amount on what you stand to lose if you allow the fear of public speaking to hold you back. Is it worth the price? 5. Listen to music or read books that “pump” you up. Need a major confidence boost before you give your next talk? These books offer the encouragement and practical tips you need to speak with poise and persuasion: • The Complete Idiot’s Guide to Speaking in Public With Confidence by Laurie Rozakis • How to Win Friends and Influence People by Dale Carnegie 1948 Duke-Peacock Records, formed in Houston, was the first major black-owned record label in the country. Artists included the Mighty Clouds of Joy and Clarence “Gatemouth” Brown.
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Advice from the Pros:
Jeffrey Boney advises on building capital Okay, let’s be honest… No one has taken the “leap of faith” into small business entrepreneurship without the primary intention of being successful and eventually making money along the way. Oftentimes, many businesses struggle with the ability to do that, primarily due to a lack of working capital. “Working capital” is defined as the amount of liquid assets a company has available to build its business. Everyone knows the saying, “It takes money, to make money!” While this is true, the following questions often come to mind: “Where do I get that money from?” “Do I have enough money?” “How can I get money to grow my business?” If these thoughts have yet to cross your mind, they eventually will as you continue building your business. The following advice is for business owners who have pondered the aforementioned questions, and are looking for ways to build their business by using someone else’s money.
As they say in various circles, “All money is not good money.” This statement does not apply in the case of using a financial institution to obtain working capital money. There are many that have tried to secure working capital from a financial institution, but have been unable to for various of reasons. I would like to provide you with a few practical tips that will help prepare you to approach a financial institution and be confident of your situation: Monitor your credit closely. You should be the most knowledgeable person on your personal credit. If you know you have prior credit challenges, you must work diligently to remove derogatory items from your credit report. (Charge-offs, collections, older late/slow payments, etc). Work with a credit counseling professional if you need help cleaning up any credit challenges. Pull your credit report from each bureau (Experian, TransUnion & Equifax) at least once a quarter. Pay down outstanding loan balances. Many people that pay their bills on time run into issues, because they have extremely high balances on most or all of their existing credit. Continued on page 22
Investment Strategies: Five common mistakes new investors make By Angela Collins After losing big money in the stock market, many are trying to make a profit in real estate. But, beware of some mistakes that new investors make! Mistake #1: Stock market mentality Nine of ten new investors say they are interested in real estate because they saw someone else make money from the rapid appreciation of the market over the last few years. It is a mistake to assume that what happened yesterday will happen tomorrow. So, should you refrain from investing if you think the market has peaked? Absolutely not! You can find bargain-priced properties in every market, even the hottest. You can find low-interest rate financing that will increase your cash flow, so if values drop, you still are covered. Mistake #2: Investing blind The more knowledge of investing techniques, financing, acquisition, negotiating and, of course, your local marketplace, the less risky your investments will be. A bargain real estate purchase will generally always be a safe investment. Work with a trusted real estate agent and licensed loan officer to gain knowledge and increase your success rate. Mistake #3: No cash reserves In order to stay in real estate long term, you need cash reserves. Buying real estate with nothing down is easy; handling negative cash flow, repairs, and other expenses in the meantime is the trick. In fact, if you can handle the bad times, you will always come out on top. Lack of cash reserves puts unnecessary
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pressure on you to do substandard repairs, accept less than qualified tenants, and give into tenants’ demands for fear of vacancy. When you have a sufficient cash reserve, you act rationally. Consider accumulating cash reserves before investing in rental properties. Mistake #4: Being greedy Many investors get started flipping properties to other investors, which is a good idea to generate cash reserves. However, you must be realistic about how much profit is in a deal. For example, if a house needs $10,000 in repairs and the rehabber investor you sell to wants to make at least a $20,000 profit. If you find a deal with $20,000 in profit potential, how could you expect to get $10,000 for flipping the property if the rehab investor is only going to make $10,000? You should be happy making $2,500 and moving on to the next deal. If you want to make more than $2,500 on such a deal, then you must find and negotiate a better bargain that has more profit potential. Mistake #5: Treating real estate as anything OTHER than a business. Investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat real estate like any other business. Give yourself at least six months to see if real estate works for you. It may even take a year before you buy your first property. Maybe in the second year you will buy three or four properties. If you work hard at it and keep your eyes and ears open, you may even find your first deal in 30 days. You will not make money by talking or thinking about it; you must go out and take action.
1997 Mayor Lee Brown was elected as the first Black Mayor of Houston.
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The Journey to Success: Tracing 80 years of local Black entrepreneurship Part I. By J. Monet Roberson
Karen Greene is determined to succeed. She recently signed a one-year lease for office space in Downtown Houston’s Chase building for her new technology-consulting firm, Greene and Associates. Greene, who is a third-generation entrepreneur, says that her goal is to gross at least $1 million by the end of 2007. “I know the amount of time and energy that I must invest in order for my business to succeed,” she says. “I’ll do what ever it takes.” She’s willing. Greene is just one of hundreds of local African Americans that will make the leap into starting their own business this year. The exact number of Houston Black-owned businesses is unavailable, as the Census Bureau only updates its information once every five years. According to the most recent U.S. Census Bureau report, however, African American entrepreneurship within the city has grown tremendously within the past 10 years. “I just can’t see myself working for anyone else. It limits my income potential, its a different kind of stress factor, and a lot of the time [believe it or not] I had to put up with a lot of racial tension within the office,” Greene said. She added, “I chose to leave corporate America and do my own thing. Its not worth putting up with.” Greene’s decision to move forward and start her business greatly resembles that of her parents, Henry and Aretha Greene. Both former postal workers, Mr. and Mrs. Greene quit their jobs and opened a laundromat. The family now owns nine laundromats within the Houston area. “We need to promote more Black entrepreneurship. Yes, starting a business is a challenge, but its well worth the effort. There’s money to be made, and there is absolutely no reason why I can’t get in. Black people have owned businesses for over a century. If they were able to establish themselves back then with all of their issues and little opportunities- then I am definitely going to seize the moment right now. I can’t imagine having a fraction of obstacles that they had back then,” Greene said. Many of today’s up and coming business owners also have simular thoughts to Greene’s. They believe that the opportunities for success with today’s Black entreprenuers are much greater than those of previous generations. Or are they? The following first of D-MARS Business Journal’s four part series, “The Journey to Success” tells the stories of twelve local entreprenuers and the ups and downs of their individual journeys to success.
Chasing the Dream Era: Early 1950’s
John Chase- Founder of Houston’s first Black-owned architectural firm, John Chase and Associates. Mr. Chase was also the first African American to graduate from the University of Texas at Austin (1952), while receiving his Master’s in architecture. He was the first African American licensed to practice architecture in Texas, making him the only Black architect in Houston at the time. Projects designed by his firm include the George R. Brown John Chase Convention Center, Booker T. Washington High School, the Harris County Astrodome renovation, the Washington Technical Institute, Delta Sigma Theta National Headquarters, Links, Inc. National Headquarters, the Thurgood Marshall School of Law and Martin Luther King, Jr. School of Humanities Building at Texas Southern University. Upcoming projects include the design of the United States Embassy in Tunis, Tunisia- a fifty million dollar complex. In addtion,
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Mr. Chase was the first African American appointed to the U.S. Commission of Fine Arts (1980). In 1997, Chase was also elected as the first person of color to serve as president of the Houston Club. Point A Earning his B.S. from Hampton University in 1948, along side with now-famous class mate painter John Biggers, Chase had no idea of the extent of what his future success in architecture would bring. “The beginning was terrible!” he joked. “Even with my Hampton and UT degrees, I STILL couldn’t get a job!” Chase said he was turned down at least a dozen times. “I’d see an ad for employment in the paper, show up, and then they’d tell me that they weren’t hiring. These were brand new ads!” Some firms, however, went straight to the point. “One firm even asked me if I tried getting work in Africa,” he said. Being the only African American licensed to practice architecture in the Texas (and the most of the South, for that much), made finding employment with a firm at the time of the Civil Rights era close to impossible. “After I couldn’t get hired in an office, I started teaching Architectural Drafting at TSU. When I first started, I had two things on my mind. One was to some day have my own business, and the same time to get my AIA (American Institute of
Architects) license.” Building the business
While teaching at TSU, Chase did just as he planned. In the early 1950’s, he started his firm. Chase said the biggest challenge with starting his business was getting more clients. “That’s why I continued teaching for ten years. I needed the security- I had a family to support. I’d go out there and ask people of different ways I could build my clientele. Its funny- a friend of mine once told me- ‘If you work for yourself, you will work a little harder’- he couldn’t have been more right. I was out there, working hard to promote my business. “Do you know the best way to meet people, and get to know them? Go to church,” Chase said. Evidently, Chase found his support within the church community. His first clients, who mostly consisted of Black churches, included the original design of Shiloh Baptist Church and Greater Zion. Chase says his firm has designed over 100 churches in the state of Texas alone. “I would set a program where I would visit a church, better yet- visit the pastor and his wife at home. Then, he following Sunday at church, they would
Born in Fifth Ward, Barbara Jordan was the first Black woman to serve in U.S. Congress from the South. In 1967, she became the first Black official elected to preside over the Texas Senate. Jordan’s dedication towards both her country and her community has greatly contributed towards advancement.
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introduce me to the congregation. People would walk up to me and inquire of my services. I gained most of my early business through the church.” As his success increased, so did the curiosity of others. While applying for his AIA license, Chase describes one of his strangest moments. “I was something new on the market. White architects would actually come to my office, just to meet me. Once, someone walked into my office and said, ‘I never seen a Nigra architect before.’” Chase answered, “Well, ya seen one now.” With all of his hard work and dedication, Chase’s goal was never set on monetary rewards. “It was never about money. When I was building the business, money was never a motivating factor. I was working for success all along.” With the support of his wife, Drucie, and his three children, Chase says that his family has been the biggest accomplishment in his life.
Moving Forward Era: Civil Rights, circa 1960 Julius Carter- Publisher, Reporter, Photographer, and founder of both Houston’s first Black owned printing press and Houston’s second Black publication, Houston Forward Times. Ms. Lenora Carter, wife of the late
Advice to up and coming entrepreneurs: “You’ve got to always stay and fight for what your beliefs. Keep your mind focused, work hard, and know where you want to go in life. Set your goals and pursue them. Anything that’s worth having is worth working for. And if it comes easy, it goes easy.”
Capturing the Moment Era: Post Civil Rights, 1972 T.R. Reed- Founder of Photography by T.R. (19721992) His company was called to photograph many prominent figures and celebrities at the time. The list includes: Prince, Billy Preston, Nancy Wilson, Isaac Hayes, Chaka Khan, just to name a few. His clients included: Billboard Magazine, BRE (Black Radio Exclusive), and The Philadelphia Inquirer.
T.R. Reed
First shot “I was first taking pictures for fun. Then, I realized that I could make some money with it,” he said. While a student at TSU, Reed said that he made close to $14,000 one year by having a side job as a photographer. Even with his name of being “the celebrity photographer”, Reed said his niche in school photography the origin of his company’s success.
Mr. Carter, describes her paper’s beginnings.
“We specialized in school day packages. We realized that a lot of money could be made with working with the schools. This was during the end of the Civil Rights Era, and we almost had to file a lawsuit against H.I.S.D.”
“My husband started the publication
Challenges
because he felt that the African American community needed a voice. My husband was very active in the Civil Rights Movement, and wanted to use the paper as a tool to speak out to the public,” she said. When asked of how capital was raised
Reed says that at the time, there were a lot of challenges gaining contracts
with the City as well as with the schools. Julius Carter
to start the paper, she responded, “He was already in business- he had a vending company. When he sold the company, he used the money to open the paper. He then purchased his own printing press- making him one of the first Blacks to own a printing press in the country at that time.” She continued, “Business for the press picked up quickly. We began publishing the University of Houston’s paper at the time, and did so for 25 years.” With the possibility of making millions, especially in the publishing industry, Carter said that money did not motivate she and her husband to work hard with their business. “We hadn’t set a goal. If success would come, it would come. His main idea was to have a voice. It was never a ‘money thing’ with my husband.” Challenges “The biggest challenge at the beginning was staying afloat- looking for advertisers. They wanted to make sure we were going to stay around, that’s how we had to gain their trust. Besides that, many businesses were already advertising with the city’s daily paper. Once they saw we had a market within the Black community, our advertisers started to come to us.”
“The white photography companies, who had history with the schools, didn’t want us to come in and take their contracts. They paid off principals in several HISD schools to keep granting them the contracts. We had to get Marvin Zindler involved to help us break through that wall and get those packages. He’s come through for us on several occasions.” Reed also added that although the pay-offs may have ceased, there are still barriers for many photographers. “Now, instead of pay-offs, their underbidding companies. Small photographers can’t afford to lower their prices to what the major ones are offering the City and the schools. They’ll go out of business.” Reed’s advice for up and coming entrepreneurs: “First you must get good at your craft. Then, become good at your business. Always treat your business like a business. When you get away from business, it becomes a friendship. And that never works.”
Editor’s note: Journey to Success, Part II. of IV. will continue next issue, exploring more stories from local enterprenuers.
1935- Houston’s first black civic organization, The Negro Chamber of Commerce was founded. Its mission was to assist, promote, advocate, and recognize AfricanAmerican businesses. The organization was later renamed as The Houston Citizens Chamber of Commerce.
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Advice from the Pros: New Year Strategies
Calculating your net-worth helps money management By Kenneth C. Glover 3. Total your assets. To manage your money successfully, you need a standard by which you can measure your economic progress. One gauge of your financial headway is your personal net worth. You can estimate your net worth by preparing a simple personal balance sheet and income statement that will allow you to see your assets and liabilities and where your money is going. You can then take steps to make your net worth grow by finding ways to control spending, reduce debt and increase savings and investments. Kenneth Glover
Prepare Your Personal Balance Sheet You will need a block of uninterrupted time, pen and paper or your personal computer. Once you have an initial estimate, you can go into a more in-depth analysis, if you wish. Here’s what to do: 1. List your assets (everything you own that can be sold or swapped for another item of value). Include your house, car, household goods, jewelry, bank accounts, stocks and other investments, vested holdings in company savings and pension plans, individual retirement accounts (IRAs) and cash-value in permanent life insurance.
4. Separately, list your liabilities. Record all debts, including credit card and charge accounts, mortgage, home equity line of credit and other loans, such as automobiles or college. 5. Note the principal amount due next to each liability. Do not include interest. 6. Total your liabilities and subtract them from your assets. The result of these calculations is your net worth. (If assets exceed liabilities, you have a positive net worth. If liabilities exceed assets, you net worth is negative.) You now have a foundation for working toward making your bottom line grow. Reorganize Your Priorities Your balance sheet can help you determine whether your finances are in line with your goals. Depending on your objectives, you may want to pay down old debts or postpone new ones, initiate a savings plan, go on a stricter budget or begin a more aggressive investment policy. Recalculate your net worth annually, and you’ll be able to assess your progress and work toward improving your money management. Your financial record keeping will benefit, too. Kenneth Glover is a Financial Advisor with Morgan Stanley. He can be reached at 713-968-3051.
2. List the market value next to each asset.
Changing jobs or retiring? Should you rollover your 401(k) or reallocate your retirement assets? Whether you’re changing jobs or retiring, Morgan Stanley can help you review your situation to help protect your nest egg for when you need it. Call Morgan Stanley today for a free Employer Plan Distribution Analysis to examine your current position. Your Financial Advisor can also help you get the information you need to develop an asset allocation plan tailored to your retirement needs. Ken Carwin Glover Financial Advisor Galleria-Houston 2200 West Loop South, Suite 100 Houston, Texas 77027 Ph: (713) 968-3051 | Fax: (713) 968-3200 Toll Free: (800) 359-4358 email: kenneth.glover@MorganStanley.com
visitmorganstanley.com/kennethglover
Tax laws are complex and subject to change. Morgan Stanley and its Financial Advisors do not provide tax or legal advice. Consult your tax or legal advisors before engaging in any transaction involving IRAs and other tax-advantaged investments. Investments and services are offered through Morgan Stanley DW Inc., member SIPC. ©2005 Morgan Stanley (RET-02 1/05)
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Business Profiles
Excel-E- Care Home Health & Excellent Care Management
Colbert/Ball Tax Services
Founder- Deavra Daughtry
Founders- Al Colbert and Ja Ja Ball
Business Classification- Home Health Care
Business Classification- Tax Preparation
Year Established- 1996
Year Established- 1995
Company Size- Facilities in 30 counties throughout
Company Size:- 178 Locations Nationwide. Spans 18
Texas, with 500 employees.
states, with 760 employed during tax season.
History- Working in Social Services for seven years,
History- While seniors at Texas Southern University,
Daughtry says she quit her job and started ExcelE Care because of a strong desire to “really help those in need”. Her company assists the elderly, disabled, indigent, and also provides nanny services.
Colbert, an accounting major, and Ball, a business major, saw a niche in the tax filing business. According to Colbert, the business didn’t see their first customer until the fifth day of its opening. Their first year closed with 300 tax returns. By their third year in business, or as Colbert calls it, “Our breakout year”, the company opened four offices, and business began to substantially grow. Colbert/ Ball then moved to franchising itself in 2001. The Colbert/Ball building is located at 2616 South Loop West.
Latest Developments- Excellent Care Management
has recently purchased seven acres of land in North Houston for its upcoming Assisted Living Housing Development. Daughtry says that since 98% of her clients are senior citizens, she felt that it was important to launch the project. On the subject of starting a new business, Daughtry advises:
“I believe its better to have a strong business foundation, and then you can expand from there. If you don’t have a concrete foundation, your organization will be hard to manage, and it will then make it hard to balance and grow.”
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On the subject of tax advice- Colbert reminds small business owners to keep track of all expenses. He writes:
“Individuals with small business have the greatest tax benefits. Remember to keep all receipts and log all expenses to get full tax benefits. Real Estate investments also receive great benefits for deductions and depreciation. The best suggestion is to get the best tax expert available, because if a person doesn’t properly file, consequences could get very expensive.”
Entreprenuers in Training: First hand advice for teenage entreprenuers By Keith J. Davis, Jr. Growing up in an environment under two business moguls made it hard for me to not want to get into the act. So, as a young entrepreneur myself, I decided to spread my knowledge and help other teens learn about business, learn about being successful, and learn about earning money. Real Money. When starting a business at a young age, obstacles are much greater because the materials you need may not be as easily available. Or, you may even have the challenge of not being in a stable place, or the correct environment to succeed on higher levels. Regardless of the situation, everyone has the chance to succeed. You can ask yourself the following three questions that could help you: What is it that I like to do? How can what I do make me money? What do I need to be successful? Once you’ve answered these questions, you then have the mental part of starting you own business. I used this process when I started my first business, selling hats. I knew I was good at talking to people and I knew if I got the right product I could sell it. (Tip: Conversation is one of the greatest keys in business). Also, when thinking of want you want to do in your business you have to think of the environment you’re in. If you’re mainly in school all day, selling a product that is popular with kids would be most successful. In middle school, I sold gum to different classmates. Because of this, I was able to earn money as well as build relationships with my peers. The process of the starting a business is a more complicated than it sounds, but with the right mentality and the right people it can be done, even as a TEEN. Continued on page 22
Change your way of thinking for 2006, change your life forever! By Bobby Bryant Leading up to the New Year, several people had asked if I’d made any resolutions, or goals for 2006. My response was always, “I don’t set goals. I label them as benchmarks in the pursuit of my big picture.” Please allow me to explain. I know where I want to be. I know the direction in which I am going. I know what I need to do to get there and the time it should take for me to tag the base of what I consider reaching my potential and life’s purpose. With that said, now I must develop a P.L.A.N., an acronym for Predict Life’s Alternatives Now. I am shocked at the number of people over the age of 30 that seem stuck in the habit of winging it day by day, working aimlessly without purpose. The ones that don’t know where they are going or how they are going to get there. They are passively working and they are years away from defining who they are, defining their purpose, and not capitalizing on their God-given potential. What are you here for? What have you done? What are you doing now? What do you plan to do? What is your big picture? What are your values? What motivates you? What are your strengths? What are your weaknesses? What are you good at? What do you need to start doing? What do you need to stop doing? What are you dependent on? Who are you dependent on? What is the mindset of the people you hang around? What do you do to give back? What do you stand for? Who are you? We all need to confront these questions. Once these questions are answered, then your big picture starts to develop as if you were in a dark room developing pictures while anticipating the outcome of a photo. And once you’ve developed that big picture, it is time now to focus, focus, focus! Go beyond focused. In other words, you should have such a vivid picture of where you are going, that the only thing that separates you from now and your big picture is time. Continued on page 22 Formed in Houston, August of 1985, Unity Bank is the only African-American owned and operated bank in Texas.
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A New Year for Structure: Words of Wisdom from Deacon Ramone Harper, Higher Dimension Church Are you ready for something new in your business this year? What are you expecting to accomplish this year? Better profits? Retained earnings? New products or services to offer? Better employees? As most business owners are, I’m sure you are ready for new things to happen in 2006. 2005 was a disappointing year for many business owners due to the flood tragedies and displaced families, so we all believe that this year has to get better. You are expecting great things, hoping to do it BIG! If this is where you are then I have a word for you. If you want to be successful in 2006 then you have to do what you have been instructed to do. The word of God found in Ecclesiastics 1:9 says, “What has been will be again, what has been done will be done again; there is nothing new under the sun.” There are some basic/fundamental things that all businesses should possess and no matter what type of business you are in, you need to follow these guidelines. If you are an established business with large profits, a start-up company struggling to find your niche, or an aspiring entrepreneur looking to branch out on your own, then here are a few things you need to have in place because there is nothing new under the sun: 1) A vision from God for your company: Habakkuk 2 says “Write down the revelation and make it plain” 2) A comprehensive business plan better known as your strategic plan 3) A strong financial plan with budgets and 3-5 year projections 4) Corporate Bylaws and Articles of Incorporation: 1Cor 14:40 But everything should be done in a fitting and orderly way. 5) Tax Id Number 6) Strong Board of Directors: Proverbs 15:22 Plans fail for lack of counsel, but with many advisers they succeed. 7) A comprehensive marketing plan: How else will people know about what you have to offer? So again, even though you have your own vision, your own niche in the market, and a fail-proof plan to make you rich, don’t forget that King Solomon (the wisest ruler in history) says that there is nothing new under the sun. There are certain business requirements and procedures that everyone must follow in order to ensure success. As 2006 starts a New Year for all of us, I encourage you to build this year on a solid foundation. Ask the Lord to speak to you on what direction your business should go in (imperative because Proverbs says that many are the plan in a man’s heart but on God’s plan will succeed). If God knows what His will is for you and He created you then wouldn’t it make sense to consult with Him through prayer before you commence anything? Once you get clear direction and vision from God, then you should proceed by making sure you have these seven basic principles in place for your business. Pastor J of Higher Dimension Church defined vision as “a picture of possibility, fueled by God’s power, for God’s purpose, through God’s people.” If you have a real vision and not a quick scheme to make some money, then it should be something too large for you to accomplish by yourself and it should help God’s people in some way not just you. As the New Year commences, I would like to encourage all entrepreneurs to Do it B.I.G. Like the rap song by the same names says we need to stop settling for less and do it big then. I have taken that lingo and added a spiritual perspective to it. I believe in order to do it big that we need to be Believers in God. The bible says in Matthew 5:33 that if we seek Him first that many things will be added unto us. I am not only challenging entrepreneurs to adopt this mentality but also my entire church by conducting a study on this principle every Sunday in the month of January at Higher D’s 8am, 10am, and noon services located at 9800 Club Creek Drive. In Isaiah Chapter 54, God spoke to me and said to enlarge the place of my tent, stretch my tent curtains back wide and strengthen my stakes because He is getting ready to enlarge my territory this year.
So in conclusion, God is getting ready to do something big in the life of entrepreneurs who believe in Him. But in order to receive the blessings that He has in store for us in this New Year we must take care of business!
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And as the word is spoken in my life, I believe that it is a word for everyone who hears these sermons. Just as Jabez asked the Lord to enlarge his territory, I believe that the children of God should make this same bold request. Not only will I be teaching a series called “Do It B.I.G.” on Sundays but I also will be doing a series on Wednesday nights called “Taking Care of Business” that will reinforce this message and provide you with practical principles on how to do it. So you all are invited to attend Higher D this month and learn how to Do It B.I.G. in 2006. And remember don’t settle; take it to the next level! Pastor J, Founder, Higher Dimension Church
Pastor Terrence H. Johnson, Higher Dimension Church
A Conversation with Farrah Gray (Continued from Page 7) think of the distance from where we are and where we would like to be. We think of all the things in the middle, and get exhausted. We say, “Its not even worth it.” If we saw whatever our goal is- whether its to be a millionaire, billionaire, or loosing weight, or for some people- learning how to read, and looked at where we are now, and all the distance in between, then it won’t work. For example, if I were to look at growing up in projects with rats and roaches, when the best window view was seeing another brick wall- and if I were to look at the distance of where I was and where I was trying to be, I would have exhausted myself. You have to see yourself as being successful, regardless. One day I told my teacher- “One day I’m going to be a billionaire entrepreneur.” She said, “No you’re not. You’re poor. Your family’s poor. You can barely keep a roof over your head. You better find someone to work for.” I remember that. She was looking at me in my conditions. According to statistics, I’m supposed to be in dead or in jail by now. One famous quote that’s always stuck with me is “It’s the negative things we focused on when we’re not focusing on our goal”.
DBJ: How do you stay so positive and motivated? Farrah: It’s a belief in Self. Really, you have to see yourself successful regards. That’s what the key is. My grandmother always taught me that anything you want to achieve in life, wake up every morning and say, “Why not me?” That’s why I wake up everyday and say ‘Why not me?’ And I think that’s why self-affirmation is so important. Once you believe in yourself, all things are possible.
DBJ: What has been your biggest challenge to this point? Farrah: When I first went into business, a lot of people didn’t take me seriously. They made the assumption that my business was successful because I was a cute little kid. And that’s all they thought of me. I had to prove myself.
DBJ: Are you still proving yourself? Farrah: I’ve gotten over that challenge. I have a track record of success now.
DBJ: Back on education- do you have any plans on pursuing college? Farrah:Yes. I plan to obtain a Psychology degree. I can’t teach myself that. And I think its important that people find their area of excellence before they do anything. I don’t think that formal education is a requirement in order to obtain success. Now, don’t get it wrong (he chuckles), I mean I would not want a doctor performing surgery on any of my relatives if he didn’t go to med school, with that exception.
DBJ:What else is in the works for Farrah Gray? Farrah: The sky’s the limit. I just acquired two real estate firms, with a school opening in the spring. The University of the Virgin Islands has been discussing opening a Farrah Gray School of Entrepreneurship. Besides that, I’m heavily promoting the Farrah Gray Prepaid MasterCard.
DBJ:Do you see yourself retiring young? Farrah: No. I’ll work for a very long time. I love what I do. I’ll be in my seventies before I retire. Now, its good to know that I have the option of retiring, but I don’t plan on doing so. Check out how Gray built his wealth in Part 2 of A Conversation with Farrah Gray in our March/April issue.
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D-MARS AD FOR EMPLOYMENT Up and coming marketing and publishing firm is seeking qualified individuals to sell its products and services. Commission based position with a highly lucrative earning potential from $36,000/year. Must be aggressive, dependable, and willing to work flexible hours, with references. Training is provided. Contact Mr. Bryant at 713-272-9511 to schedule an interview, or fax resume to 713-272-6364. JEFFREY BONEY ct’d from page 11 Invest into your business When trying to get money from a financial institution, many times they need to know that you are financially capable of paying back the money they lend. Don’t consistently report a loss or zero profit for your business, unless that is truly the case. Having a loan will increase your expenses, thus adding to your business’ lack of profitability. Report your revenues/income to position yourself for future growth. Develop a solid relationship with your CPA/Accountant and be sure to share your future plans with them about growing your business. Know what you need Many companies have a tendency of applying for a loan, but not having a solid plan or reason for the money they request. Develop a solid business plan for the money you plan to receive. Talk to a business consultant or your CPA about what makes sense. Develop a timeline of when you will need the funds and approach the financial institution with your request. I hope you find these tips helpful. As I always say, “Many people have a banking institution, but they truly need a banking partner.” Let Washington Mutual Bank assist you with your business needs and allow me to help point you in the right direction. KEITH J DAVIS, JR. ct’d from page 19 The process is divided into different steps because you can have an idea of what you want to do but how you’re going to do it is the key. 1. Planning is the first start in the process because you have to think of the business your starting and the way you plan it to work. 2. Taking action is the next step. This requires doing anything that is positive towards you making your business run successfully. 3. The last step is getting people to support you. This is crucial because without other people to support your cause then we will not be successful. STARTING- After you’ve gone through the steps, starting is just putting effort into what you believe in. MAINTAINING- In your own business you’re the key and you should use what you know to help you while still gathering information from others that are successful. With this said, the most important thing is to always stay focused, and don’t get side-tracked or discouraged by anyone or anything. I know this advice can help anyone trying to start their own business- young or old. Good Luck! For more information of the Keith J. Davis Jr. Foundation, visit www.kjdjfoundation.com BOBBY BRYANT c’td from page 19 Mentally, you are already there. You have a P.L.A.N. and you are working persistently and aggressively towards accomplishing your big picture. Each year, take time to reflect and honestly evaluate and critique yourself. If you were not productive enough that year in pursuing your big picture, turn that into motivation and work smart and hard to catch up. Be sensitive and smart with your time. You can find anything in the world except for lost time. Commit your time to things that support your big picture. Don’t work against yourself doing things that you know you shouldn’t be doing, which ultimately result in time wasted and the postponement your big picture. Just as you must reflect on the past in order to determine your future, create benchmarks for the New Year that will direct you straight to your big picture. Now, I will ask a favor of you, and that is to not set 2 or 3 little benchmarks that you can satisfy in 2-3 months. CHALLENGE YOURSELF!!! Don’t be passive with your big picture. The harder you work today, the easier it will be later because now you are seeing
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the results of your hard work and determination. We all have parents or know someone who has parents that are age 50-60 and don’t have any form of retirement plan in place. They continue to live paycheck to paycheck, and are seeking premature financial support from their kids in order to get by. You should set 8-10 solid benchmarks in order of difficulty, with the most difficult being at the bottom. Type these benchmarks in very small font, print them, and put them in your wallet. Read your benchmarks everyday and know them like the back of your hand. Evaluate your progress on the 1st of every month. Reflect on where you are at mid-year to determine what you need to do in order to satisfy all your benchmarks by the end of the year. Focus!! Focus!! Focus!! TIP: Find a mentor. You may have already identified someone that you have an abundance of respect for due to their accomplishments. Ask them if they would not mind mentoring you. The time and money that a mentor could save you by learning from his/her mistakes is priceless. HOWEVER, you have got to play student as they are sharing their time and information with you. Life is merely a game, get the directions, learn to play, and win!!