Inspire, Inform & Educate
July 2008
20th Edition
Financial Fitness:
Getting Your Financial House in Order
d-mars.com
Book Boot Camp could get you
iness Bootcamp
s d-mars.com Bu
Best-Selling NOVELS!
Will Get
YOU THIS
MR. D-MARS ReShonda Tate-Billingsley
Edward Ngwu CPU Quick Fix
Nena Alexander & Marsha Johnson -Copeland Solutions for Better Living Houston
Chef Felix Ford, Jr. Ford’s Culinary Foundation
Tamara Burton The Breakfast Spot
Stephen K. Brown Revelation Consulting Group, LLC
JULY 2008
www.
®
2
Publisher’s Message
Keith J. Davis, Sr. SR. PUBLISHER Keith J. Davis, Sr. JR. PUBLISHER Keith J. Davis, Jr. VICE PRESIDENT Kevin Davis EDITING CONSULTANT ReShonda Tate-Billingsley OPERATIONS DIRECTOR Ana Romero ACCOUNTING MANAGER Eugenie Doualla ADMINISTRATIVE ASSISTANT Jennifer Cobb MARKETING CONSULTANTS Bernard Johnson Larry Isles Gladys Williams CT Foster MULTIMEDIA DIRECTORS Albert Reff Andrea Hennekes LAYOUT & GRAPHIC DESIGNERS Ghuzzala Malik (Faith) Juan Larios DISTRIBUTION Booker T. Davis, Jr. Fred Davis, Jr. Rockie Hayden
Believe it or not, I have not always had my financial house in order. Back in the day, I was a ‘here and now’ type of brother. I lived for the moment; spent my paycheck as quickly as I made it. Then I would wonder why my attempts at businesses were surviving, but not thriving. I was still trying to hold down a day job while I built my hustles on the side. I didn’t understand why the chips weren’t falling into place like I wanted them to. After a good, long, hard assessment of where I was and where I wanted to go, I realized that in order to follow that road map to my final destination, I needed to get my financial house in order. And once I did, everything else fell into place. Being fiscally fit is crucial to any businesses survival. That’s why we wanted to take this issue to help you get your financial house in order. But this issue of the Business Journal is two-fold, because we look at how to build your finances by doing WHAT YOU LOVE! What more could a person ask for, than to build their finances while living their dream. Hopefully, by the time by you finish perusing – no reading and studying the articles in this issue – you’ll not only have more tools to equip you to reach your goals, but a spark will be lit under you to follow your dream – whatever that dream may be. There’s a lot to be learned from the people profiled in this issue. Whether it’s getting your finances together, saving money, getting fiscally fit or chasing your dream, there’s something to be learned on every page. And by the time you turn that last page, it is my hope that you will be ready, willing and able to chase your dream and lay a rock-solid financial foundation while you’re doing it.
CONTENTS Live your Dream, Build Financial Prosperity….......................................4 100 Black Men in Houston……………...………......................................5 CPU Quick Fix..............................................................................…......11 Credit Check-Up...…....…......................................................................12 Tackling Tough Times............................................................................13 Change Begins with Solutions for Better Living Houston..…......…......14 Getting your Money in Shape................................................................15 Penny Pinching, Saving Money in your Business……................…......22
PHOTOGRAPHY Albert Reff
Key Financial Statements.......................................................................23
CONTRIBUTING WRITERS Veronique Landry Nena Alexander Stephen K. Brown Dr. Wendy Carla Lane Dr. D.L. Jones Jennifer Cobb Chef Felix Ford, Jr. Rob Walter Christina Robinson-Grochett Jesse Muhammad
Your Credit Score May Affect Employment Prospects……...................31
JULY 2008
Big Brothers Big Sisters..………........................................................….26 Tips on How to Manage Different Generations in the Workplace….....33 Strategic Financing in a Down Market...................................................34
MR. D-MARS
D-MARS Business Journal
Tip of the Month
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
There is no greater joy than financial prosperity while pursuing your passion.
www.
®
3
Build Financial Prosperity By Veronique Landry Contributing Writer
As a television news reporter, Houston native ReShonda Tate Billingsley was enjoying a pretty lucrative career. But after fifteen years of chasing car wrecks, reporting on murders and the day-to-day grind of reporting, Billingsley wanted something more. “I was happy, committed to my job and even on the right path financially, but I didn’t feel like I was living my dream, which was to write novels,” she said. Now, as she prepares to celebrate the release of her 14th book, Can I Get a Witness, Billingsley is completely living her dream as a full-time author ReShonda Tate-Billingsley and enjoying financial prosperity in the process. “Part of the reason I didn’t pursue my dream earlier was because I was locked into what I call a direct deposit mindset. I didn’t think I could make it without that bi-weekly influx of money. But as my passion continued to gnaw at me, I finally decided to step out on faith and quit my job,” said Billingsley, a former reporter with Fox 26 News. But she didn’t walk away without a plan. “I planned my work, then I worked my plan,” she said. “It’s one thing to say I’m going to follow my dream. It’s another thing entirely to come up with a plan to bring that dream to fruition. I worked tirelessly promoting my books, writing, networking and traveling the country to make my literary career a success.” And it’s paid off. Billingsley’s books have been featured in Ebony, Essence, and Jet Magazine and she’s serving as Executive Producer as Hollywood makes three of her books into movies. “There is no greater joy than to do something that you’d do for free – but actually get paid to do it,” she said. Helping people get paid is what Keith A. Davis, Sr. specializes in. Davis, aka Mr. D-Mars, has built his own financial empire by helping JULY 2008
people market and promote themselves and their business. “I believe living your dream and getting your financial house in order go hand in hand,” Davis said. “When you implement and execute your dream the right way, it is bound to lead to financial success.” Davis believes too many people aren’t living their dreams. “They’re working in jobs they could really care less about, doing things they really don’t want to be doing, all for the sake of a check. I believe in helping people come up with a plan of action to not only live their dream professionally – but find a way to experience financial success in the process.” That’s why Davis has teamed up with Billingsley to offer dynamic professional courses designed to help you live your dream. “I’ll be teaching Business consulting courses once a month about starting a business, financing and marketing among other things,” Davis said. “ReShonda Tate Billingsley will bring her wealth of knowledge in the publishing industry. She will give a crash course of sorts on everything you ever wanted to know to write a book. So many people have a book inside them and I want to help them get it out. And so many business owners and entrepreneurs don’t understand how a book can take them to the next level. I’m hoping these classes will help them get that.”
www.
®
4
Black Men in Houston By Jesse Muhammad, Contributing Writer
“The good we secure for ourselves is precarious and uncertain until it is secured for all of us and incorporated into our common life.”—Jane Adams The 100 Black Men Metropolitan Houston Chapter recently closed out another successful year of mentoring over 60 boys from ages 11 to 18 from some of the city’s most diamond latent communities. Over the past 15 years this organization has focused on four core components for these young men: Mentoring, Education, Health and Wellness, and Economic Development, with mentoring being its foremost effort.
the 100 Way, The Collegiate 100 , African American History Challenge , STEP Tutorial Program, 100 Scholarship Program, Partners In Prevention (PIP), Chronicles of Black Wealth, Dollars & $ense Youth Investment Program, Financial Empowerment Series, Financial Fitness For Life and Money Smart.
“Our vision statement as an organization is to serve as a beacon of leadership by utilizing our diverse talents, to create an environment where our children and communities are motivated to achieve and to empower our people to become self-sufficient shareholders in the economic fabric of the communities in which we serve,” said Dr. Rudley, who is also the President of Texas Southern University. “The members of this organization have pledged their talents and resources to help inspire and support young men between the ages of 11 and 17, who need guidance, structure, and a sense of self actualization and self awareness.”
Where did it all begin? The overall concept of “100” began in New York in 1963 when a group of concerned African American men began to meet to explore ways of improving conditions in their community. The group eventually adopted the name, “100 Black Men, Inc.” as a sign of solidarity. These men envisioned an organization that would implement programs designed to improve the quality of life for African Americans and other minorities.
This year’s local initiatives came to a close with the Annual Recognition Basketball Game and Cookout between the mentors and mentees at the Texas Unlike most youth programs that dwindle away after only a few years of Southern University H&PE arena. Hours of head to head basketball left some service, this one is here to stay. This past year under the direction of the current mentors gasping for water while others were holding their own. They all then Chapter President John Rudley and the rest of its members, the participating posed for a group photo. young men toured the Texas capital and dialogued with Governor Rick Perry. They have been the company of NFL players, astronauts, physicians, police In addition to the Annual Basketball Game, the mentees were invited to chiefs, and many other community leaders from the surrounding Houston area. attend a major league baseball game on July 20th at Minute Maid Park to see In addition, they have engaged in academic tutorial programs and participated the Astros versus the Chicago Cubs thanks to 100 tickets donated by Houston in community events to enhance their leadership qualities. Astros and Aramark, which will provide the food.
Today the organization has amazingly grown to over 106 chapters with more than 10,000 members who continue to strive to improve the quality of life in communities and enhance the educational and economic opportunities Several of these young men also just returned from the 100 Black Men for African Americans. 100 Black Men of America, Inc. has more than 100,000 National Convention in Orlando, Florida. The national plan of action of the 100 youth participants annually in its mentoring and youth development programs. Black Men is called the “For The Future T Programs”, which includes Mentoring JULY 2008
www.
®
5
Alief
Community Wide Celebration & Parade them to become responsible, productive, leaders in tomorrow’s society. Joshua Bowie one of the five founders (Kodi Bailey, Keith Donkor, Tim Hudson, Phillip Yates) of the Alief Alumni Group, Inc, said the goals and objectives for the “Alief Apple” event are to promote parental involvement, develop community awareness through community relations, highlight cultural diversity through education and entertainment, expand corporate, local, and organization partners’ products and services. Phillip Yates, a co-founder of the Alief Alumni Group, said former Elsik High School graduate, Rashard Lewis, a small forward with the NBA’s Orlando Magic, highly anticipates a day of giving back to the Alief Community! In addition to hosting The Alief Apple, Lewis has been offered to be the Grand Marshal of the Alief Community Association’s parade, kicking off at 9 a.m. He said the afternoon portion of the program to be hosted by the Alief Alumni Group will include a celebrity bowling tournament, stage performance, presenters, and booths offering food, T-shirts, and information on public safety, health and nutrition, and colleges. “It all starts with the kids, doing something for the families,” Yates said. The alumni group was founded three years ago to provide events with the purpose of restoring the community and support the families and children with low-income households, Yates said. Alumni Group MottO: “Take Advantage of Today, To Give An Opportunity To Tomorrow” The Alief Alumni Group welcomes business owners as partners for this great event through a variety of sponsorship opportunities.
WANT TO GO? Parade Schedule:
Parade kicks off at 9 a.m. Aug 9, 2008 Where: From Owens Intermediate School, 6900 Tuttlewood, to the Hastings Ninth Grade Center, 6750 Cook Road
Alief Apple Community Wide Celebration Schedule: Kicks off at 11 a.m. to 5 p.m. Aug 9, 2008 Where: The Grand Event (Fun Plex), 13700 Beechnut
Details: Contact the Alief Alimni Group, INC., office: (281) 506-2670 It is with great pleasure that the Alief Alumni Group, Inc. invites residents to join with Honorary Committee Chair NBA’s Rashard Lewis of Orlando Magic, 3B Family, Alief Independent School District, Alief Community Association and The Alief Apple Volunteers in hosting The 1st Annual “Alief Apple” Community Wide Celebration and Parade.
or email: kodi.bailey@aliefalumnigroup.com
This event is scheduled for Saturday, August 9, 2008 from 11am5pm. Your presence and interaction will help cultivate an environment of entertainment and fun for all families alike. Alief Alumni Group, Inc is a community-based 501(c) (3) nonprofit organization with the mission to foster an environment that creates an opportunity for former graduates of the Alief Independent School District and community leaders to partner up with the Alief community in order to produce more graduates and empower JULY 2008
www.
®
6
JULY 2008
www.
®
7
JULY 2008
www.
®
8
JULY 2008
www.
®
9
JULY 2008
www.
®
10
CPU
Quick By Jennifer Cobb Contributing Writer
If you have a question about a computer, Edward Ngwu is the man to answer it. After being stationed in Iraq the past three years as a System Administrator/Information Assurance Manager (IAM) responsible for providing data integrity and availability for systems supporting over $18.4 billion dollars worth of Iraq Relief and Reconstruction Fund projects for the Gulf Regional Division/Project & Contraction office, Edward Ngwu returned to Houston and decided to start his own IT business stateside. CPU Quick Fix is an IT Consulting Company owned and formulated by Armed Forces Veterans, including Ngwu, based out of Houston and composed of certified Information Technology professionals with over 30 years of collective experience. Their primary focus is to ensure customer satisfaction is met by quality work. “Personally, I have over 10 years worth of experience in the IT industry starting out as a System Administrator/
Communication Specialist with the United States Army 10th Mountain Division,” said Ngwu. Upon completion of his four-year commitment to the Army, Ngwu was sent on a peace keeping mission to Camp Bondsteel, Kosovo for six months as a civilian contractor working in IT at the Network Operations Security Center. He ended up staying there for three years. From Kosovo, Ngwu had the option to head to Italy or Baghdad for continued work as an Information Assurance Manager and chose Baghdad. “Friends of mine who were still in the service were stationed in Iraq, so to me, it was an easy choice and my work was something I enjoy doing even given the environment.” With the support of the United States Armed Forces missions in the Southwest Asia Region (Kuwait, Iraq) and in the Southern Europe Region (Kosovo, Macedonia and Bulgaria), the expertise and knowledge the staff of CPU Quick Fix possesses gives them the ability to establish technical solutions that meet the needs for many small and medium businesses. The engineers at CPU Quick Fix are familiarized with designing and managing large-scale enterprise environments that consists of hundreds of servers and thousands of workstations. Experience in servicing government and commercial enterprise agencies gives them the ability to incorporate incomparable Information Technology methodologies in any environment. The staff of CPU Quick Fix thrives on the ability to orchestrate and implement intuitive Information Technology solutions that meet their customers’ needs. This company is one dedicated to holding the highest standards in professionalism, teamwork, integrity, quality and on-the-job excellence.
For more information, contact Edward Ngwu at 281-302-8529 or send an e-mail to support@cpuquickfix.com.
Houston Int’l Jazz Festival
Ruben Studdard, Hiroshima, SAX PACK To Appear Jazz will fill the air in downtown Houston Saturday and Sunday, August 2nd and 3rd as the 18th Annual Houston Int’l Jazz Festival kicks off August Jazz Month. The event will be held at the new Discovery Green Park, 4:00 to 10:00 PM each day. An all-star lineup of artists are scheduled including: American Idol Star “Ruben Studdard,” “Hiroshima,” “SAX PACK w/Steve Cole, Jeff Kashiwa & Kim Waters,” “Angel Lane Brass Band,” “Summer Jazz Workshop All- Stars,” and many more. “The Houston Int’l Jazz Festival represents a rich tradition of excellence through musical expression. The Festival is the primary fundraiser for Jazz Education Inc., which is a non-profit organization committed to the mission of providing worthwhile education activities for school-aged youth,” stated Houston City Council Member Jarvis Johnson, Chairman of the Festival. Produced by Jazz Education, the Jazz Festival is funded by: KBR, Houston Arts Alliance through the City of Houston, Shell Oil Co., Silver Eagle Distributors, Kroger Food Stores, Yellow Cab Co., Frenchy’s, Comcast, Discovery Green Conservancy, Greensheet, Lina T. Ramey & Associates, Inc., Fox 26, KCOH Radio, KTSU 90.0 FM, Majic 102 FM and the Union Pacific Railroad. JULY 2008
www.
®
11
Credit is crucial. Ask any business owner and they’ll tell you credit can make or break a business. When’s the last time you looked at your score? If it’s been more than six months, it’s time. Even if you’re not currently in need of working capital, you never know when you’ll need a cash infusion--or when one of your potential business partners or vendors will decide to check up on your credit. Since what you don’t know about your credit history can hurt you, the time to assess your credit is before you need it. Credit experts urge that you check your credit score before you even apply for financing or capital. As of September 2005, thanks to the Fair and Accurate Credit Transactions Act, consumers in all 50 states can get their credit reports for free each year from each of the three bureaus--Equifax, Experian and Trans-Union--by visiting
www.annualcreditreport.com. Since your personal credit history is inexorably tied to your business, you’ll want to review all three carefully, as well as pay to get your FICO credit score, well in advance of needing capital. Fighting inaccuracies and repairing credit can take time, as long as a few months. Once you have all three reports, scan all personal information for accuracy. “I was denied financing and couldn’t understand why,” said business owner Shelby Lawson. “Turns out two numbers on my social security number were inverted and someone else’s collection information was on my record.” Credit professionals say you’ll want to address any inaccurate late payments or charge-offs. Don’t be afraid to call creditors and ask them to remove one-time late payments. If you’re tenacious, 99 percent of the stuff can be removed. If you can’t have an item deleted, send an addendum to all three credit bureaus explaining the reason for the late payment. It won’t improve your score or get [the item] off there, but when lenders review your credit profile, they can take that into consideration. Next, order up your small-business credit report from D&B. For $129, you can get a comprehensive analysis of your business’s creditworthiness. For $329, you can sign up for D&B’s SelfMonitor service and receive unlimited access to your business’s report, as well as e-mail updates notifying you of any changes. A lot of vendors and business lenders will review that, so you’re better off finding out the information before they do. And to keep your personal credit as insulated as possible, experts recommend asking to have any personally guaranteed trade lines or credit cards transferred solely to the business once your company gets a few good years under its belt. Speaking of credit, there may be no better time than the present to take stock of your business’s cash flow and outstanding balances to make sure you’re not extending yourself too far. Most credit card issuers have agreed to comply with guidance issued by the Treasury Department’s Office of the Comptroller of the Currency and other regulators stating that cardholders should pay back more than their minimum payments to chip away at the principal. With interest rates rising, that could mean trouble for small businesses with big balances. The bottom line on your credit review: Even if it doesn’t feel like a priority next to the pressing tasks related to running your business, make it one. Getting a clear look at your company’s credit position today can help you not only address the past, but plan more accurately for a successful future.
Harvard University announced over the weekend that from now on undergraduate students from low-income families will pay no tuition. In making the announcement, Harvard’s president Lawrence H. Summers said, ‘When only 10 percent of the students in Elite higher education come from families in lower half of the income distribution, we are not doing enough. We are not doing enough in bringing elite higher education to the lower half of the income distribution.’ If you know of a family earning less than $ 60,000 a year with an honor student graduating from high school soon, Harvard University wants to pay the tuition. The prestigious university recently announced that from now on undergraduate students from low-income families can go to Harvard for free... no tuition and no student loans! To find out more about Harvard offering free tuition for families making less than $60,000 a year, visit Harvard’s financial aid website at:
http://www.fao.fas.harvard.edu/ or call the school’s financial aid office at JULY 2008
www.
®
617.495.1581 . 12
ough Times It’s no secret, times are tough. And in tough times, cash gets tight. Customers stretch their payments, or stop paying altogether, or try to renegotiate their deals with you. Meanwhile, you still have to make payments to other people. There is usually enough money in the checking account each month to pay some of your obligations, but not nearly all. How do you decide who gets paid, who waits for payment and who doesn’t get paid at all. When times are good, you want to pay everybody on time, but in bad times, this simply isn’t possible. In an emergency room, doctors usually have to separate the patients to those who must be treated immediately, to those who can wait a little while for treatment and those who are beyond treatment and must be left to die. Some business owners use that same approach. They separate their bills into three piles. The first pile gets paid on time, even if you have to hit up your credit lines to do it; the second pile gets paid as late as possible, with or without a personal apology to the creditor for the late payment; the third pile gets paid when your money starts rolling in. Here are some suggestions to keep things flowing as smoothly as possible during those tough times:
Pile 2:
People Who Can Wait
People who yell and scream a lot. Creditors who realize they are near the bottom of your priority pile will often yell and scream frequently for their money, hoping that you will pay them off just to get rid of them and avoid further aggravation. This is a very effective strategy, especially when the amount involved is small. If you have any spare cash at all after taking care of pile 1, get rid of the screamers. You will live longer. People who historically have waited for their payments. Just because an invoice says “payable net 30 days” doesn’t mean you have to. Many creditors will wait 45 to 60 days as a matter of course before they make any demand for payment at all. Let them wait if they always have. People who haven’t yet demanded payment. Generally, people cannot sue to collect debts without first giving you written notice by certified mail, called a “demand letter.” If you owe someone money and haven’t yet received a demand letter, you can breathe easily, at least for a while. If a demand letter arrives from a law firm in a faraway state where your business has no assets or legal presence (like an office), you can still ignore it--courts in your home state often will not recognize a “default judgment” rendered against you in another state. When a demand letter arrives from the largest law firm in your home city Creditors who are essential to the continuation of your business. If you threatening to put a lien on your house, move the bill to pile 1. are a newsletter publisher, the folks who print your newsletter get paid when due, even if you have to hit up your credit lines to do it. If you don’t pay your printers, they hold on to your latest edition, and you can’t make money at all. Key employees or contractors. If your business gets most of its sales over the Internet, the person who keeps your Web site up-to-date and gets it back online when it crashes--that person is “mission critical” to your success. So pay them. People who don’t have a legal obligation to get paid. If someone does People who can easily sue you, or make your life legally miserable. That work for you and there is no written agreement as to payment (or verbal so-called “independent contractor” who works 60 hours a week for you; does not work for anyone else; has his dental bills paid by you; and has a cubicle, agreement with witnesses), who is to say that the work wasn’t a gift? Shame computer and secretary in your business office can do you a lot of damage if on the contractor or supplier that does not insist on a written agreement before he ever squeals to the IRS that he was really your employee and you never doing business with you. People you can live without. If you have a dental practice and the withheld payroll taxes. subscription to one of your waiting-room magazines comes up for renewal, Debts that you have personally guaranteed. Most small-business credit it’s perfectly OK to let it go. Get rid of as many contractual commitments as cards, for example, have been personally guaranteed by the business owner. If you fail to make at least the minimum payment every month, they can put a lien you can, and focus on the few relationships that are absolutely critical to your business success. on your house or cause you major financial headaches. Dealing with frustrated creditors is never easy, and often painful. When Your lawyers and accountants. money is tight, however, it is important to remember that by being “cruel” to some people, you are being “kind” to others. Better to be cruel to creditors who don’t add daily value to your business and kind to those that do than the other way around.
Pile 1:
People Who Get Paid on Time
Pile 3:
People Who Don’t Get Paid... unless you hit a windfall
JULY 2008
www.
®
13
ince its initial implementation in 2002, Solutions for Better Living Houston (SBL) has become an excellent example of an integrated, ever evolving process that has fostered a collaborative effort among its local partners to move toward a fundamental transformation in Houston. In the last six years, over 87 small-scale projects have been developed. These projects are the heart’s work of people that love the communities they live in. SBL Houston helped them to model their passion into sustainable projects, and granted them the needed seed money to see their passions come to life. The initiative began in Houston as an outgrowth of the Dreyfus Health Foundation’s (DHF) successful program, Problem Solving for Better Health® (PSBH®). DHF and its affiliates have implemented programs in 32 countries that serve as a catalyst for better health worldwide by emphasizing individual and group responsibility at the community level. Founded in 1988, the Dreyfus Health Foundation is an operating unit of the not-for-profit Rogosin Institute, a leading medical care and research facility affiliated with the New York-
Houston, TX---“Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” Barak Obama, speech, Feb. 5, 2008.
JULY 2008
Presbyterian Hospital and Weill Medical College of Cornell University. Everything within our environment; our families, our jobs, where we live, has an impact on our overall health and well-being. Thus, based on the knowledge that health is both a product of, and a vital factor in community development, the PSBH® model is used as a tool to enable individuals in a community to identify local solutions to local problems, which means the development of businesses, non-profits, and community projects. It challenges them to accept responsibility for improving their quality of life, and gives them a basic, but highly effective set of skills to do just that. It has proven to be a powerful tool in the hands of people committed to creating real, transformative change within them and in those around them. DHF assists in developing problem-solving projects that will make a significant difference in health problems and directly benefit members within their community. The efforts of the Foundation over the past twenty years have resulted in a 32-country network involving both rural and urban communities of some of the world’s most disadvantaged areas. Several million people have already benefited from the over 16,000 projects that have been generated and implemented through the Foundation’s programs. Each year, SBL Houston hosts a workshop in which participants develop an action plan that he or she can realistically implement with seed funding provided by DHF. It also encourages participants to think outside of the box and challenges them to realistically plan for long term sustainability. In addition, they are encouraged to utilize community resources for information, funding, and other assets that will aid in the successful completion of their projects. At the end of the workshop, they return to their communities, homes, and jobs with a practical action plan and a renewed commitment to making a difference. Katherine Griffin, Community Liaison for City of Houston Councilmember Peter Brown, was one of last year’s grant recipients. Before attending a workshop, Kathryn had already begun a support group for ex-prostitutes called, Been There Done That. Been There Done That, and it faced the same challenge every new project faces. How is the group going to be supported and grow, without focusing the majority of its efforts on continuous fund raising? After developing a solid action plan, she discovered that creating her own curriculum and trade marking it would open the door for long-term sustainability. This strategy would enable her to focus on what she does best—mentoring the women in her groups. SBL Houston is comprised of a team of professionals, who possess the diverse and multi disciplinary skill sets necessary to assist project leaders identify non-traditional methods of growth and the valuable relationships necessary for long-term sustainability. DHF’s U.S. Regional Director, Marsha Johnson Copeland, believes that sustainability is major problem for business and non-profits alike. “The development of a strategic and comprehensive plan plays a vital role in achieving long term sustainability,” she said. NOTE: To apply for this year’s free workshop, go to www. sblhouston.com and complete the questionnaire or contact Nena Alexander at 832-744-5135. Partners and Affiliations: Houston Citizen’s Chamber of Commerce, Tamiym Business Start-up and Planning Services and Peyton, Ralo, & Associates Non-profit Planning and PR Firm.
www.
®
14
Getting your MONEY in
By D. L. Jones Contributing Writer In sports, each athlete has an ideal weight that he wants to maintain to maximize his best performance. He knows the weight that provides the best balance of speed and power. If an athlete is too heavy, he forfeits the chance of maximizing his best performance. If he’s out of shape, he loses all chances of winning. Getting in shape is the main challenge for most athletes. Parenthetically, we as working consumers need to strike this same type of fitness in our finances, particularly when it comes to making a budget. How can you tell if your finances are out of shape? If you are spending far more than what you are making, you are out of shape and need to trim down your expenses. Adversely, if you set a dietary budget that is too harsh, you will probably lose your motivation to follow it like many who try to lose too much weight too fast. Bad diets are similar ills that can be likened to poor money management. Getting your money in shape takes the same discipline as getting your body in shape. Athletes need calories for their bodies to burn. Even when they are dieting to make their ideal weight, they pay close attention to what they eat and how they exercise. The old adage is true – you are what you eat. The same holds
true when it comes to getting your money in shape – the results depend on exercising and maintaining a balanced monetary diet. In life, no one can avoid expenses; they are a common denominator in everyone’s life. However, much like athletes train and watch their diet, you should watch out for the quality of the expenses you incur - this can make a big difference in determining your financial fitness. The problem with many of us is the mind game of believing that a “desire” is a “necessity.” Desires in life quickly become necessary expenses that people feel they really need. Yes, people need the basic necessities in life; food, clothes, and shelter. Of course, the house needs furniture, but when your furniture expenses exceed your monthly mortgage; you’re financially out of shape. How do you get back in shape? It starts with cognitively restructuring the way you think about money, saving, and spending. You must first realize and act upon the fact that these so called “necessary” expenses quickly become unnecessarily expensive. You need a place to live, true, but if you live in a $450 apartment and drive a $65,000 BMW with no garage – something is erratically wrong! That’s too much ice-cream and cake and not enough fruits and vegetables. It’s time to get your money in shape. The money you bring home to pay for these junk-food luxuries is hard earned money that could be put to better use. When you spend it on frivolous luxuries, you’re adding on more years that you have to work in order to retire comfortable. The next time you see that dress or suit in the window, ask yourself – do I really need another suit or dress? If you’re constantly spending your money on unnecessary items, chances are that you’re financially out of shape. An athlete has the choice of sweating, sacrificing, and eating right to maximize his performance or take the chance of losing. With your finances, no one is monitoring your training and diet but you, and, if you lose out in playing the money game by being too lax with your expenses, you can’t blame anyone but yourself. Believe me, it is smart to start budgeting, cut down on unnecessary expenses, and save as much as you can. Life becomes hard when creditors and Uncle Sam start breathing down your neck.
Life’s no fun when the rabbit has the gun. It’s time to get our money in SHAPE!
Let us Promote your Business, Your Event, or You! Advertise today in D-MARS Business Journal
JULY 2008
www.
®
15
Jeanette Williams
Jeanette Williams, born and raised in Houston, Texas is the daughter of Castro and Louise Hamilton. Jeanette took an unusual path to restaurant stardom after 18 years of service with the U.S. Postal Service, she felt strongly in her heart that there was another direction she wanted to take her life, and cooking was one of her great passions. She felt the time was right to pursue having her own catering business, unfortunately at that time she was traumatized with the unexpected loss of both her parents, just over a week a part. Jeanette was overwhelmed with grief and didn’t know which direction to go; God stepped in and gave her something to keep her busy and that is when “Mikki’s Café was established in October, 2000. It is now a household name not just in the Houston area but all over the United States. Mikki’s has been recognized by the Houston Chronicle, The Superbowl and three major radio stations in the Houston area: Majic 102, KTSU, and 97.9 (Box). Also, she has had the privilege and opportunity to work and cater for music artists such as Billy D. Williams, Bobby Womack, Beyonce, Mike Epps, Bow Wow, P. Diddy, 50 Cent, Usher, Gerald Levert, Kem, John Legend, Flava Flav just to name a few. Jeanette Williams and the future for Mikki’s Café & Catering is looking very bright. JULY 2008
www.
®
16
JULY 2008
www.
®
17
JULY 2008
www.
®
18
JULY 2008
www.
®
19
JULY 2008
www.
®
20
JULY 2008
www.
®
21
If you’re like hundreds of other small business owners, you know what it’s like to have a shoestring budget. Pinching pennies can save you a lot of dollars And there are plenty of ways you can save – from cutting your legal bills to marketing. Here a few money-saving ideas to boost your business’s bottom line.
equipment, copiers and office furniture from stores such as the nationwide Aaron Rents & Sells chain. Auctions and newspaper classifieds are other good sources of used equipment.
Go with the flow. Rather than paying for employees who sit idle when business is slow, consider hiring temporary employees to handle surges in Double up on advertising. Include advertising and marketing business. material in other mailings, such as invoices, not only saves postage, but helps Make experience count. Get free or low-cost help-and give local to continue building your brand. Make the most of your point-of-purchase college students a chance to learn the ropes-by hiring interns. opportunities by tucking coupons, newsletters or other promotional fliers in the Use independent contractors. Employers generally don’t have to bag with customers’ purchases. withhold or pay any taxes on payments to independent contractors. But be very Just ask! The best kind of support to get from your customers is referrals careful that your independent contractors fit the definition provided by the IRS so ask for the names of specific individuals who need your products and or you could face penalties. services. Your contacts can also give prospects your name and number. As the Commission your sales force. Overhead, salaries, incentives, number of referrals you receive increases, so does your potential for increasing training costs, fringe benefits and expenses add up when you’re hiring your the percentage of your business generated through referrals. own sales representatives. Contracting independent manufacturers’ sales reps, Fifteen minutes of fame. Local cable TV stations often have very paid on commission only, is less expensive-and often equally effective. reasonable advertising rates at time slots throughout the day and night. Though Clean up your mailing list. The U.S. Postal Service will clean up you won’t necessarily reach prime-time viewers, you will make an impression your mailing list for free, correcting addresses, noting incomplete addresses and where it counts-in the comfort of potential customers’ homes. adding ZIP+4 numbers so you’ll be eligible for bar-code discounts. Become an expert. Teaching a class, speaking at a community meeting, Be an early bird. Send mail early in the day, and you can usually expect to or writing an article for a local paper not only makes you look like an expert but get one- to two-day delivery for the price of a first-class stamp. garners low-cost attention for your business. Mind some petty pointers. Don’t get careless about your petty cash Start chatting. Find newsgroups that cater to your audience, and join account. Though you don’t need receipts for expenses under $75, you should the fray. It can be a great marketing tool, costing only your time. Include your still track these expenses since they can add up. URL in your signature, but don’t do any hard selling-most groups will ban you Put the kids to work. If your children are at least 14 years old and pay immediately. Instead, provide useful information that’ll make people will want their own taxes, it pays to take advantage of their lower tax bracket. “You can to click on your site. essentially transfer income from your business to them [to save money],” say Get a suite deal. You don’t have to run your office full-time from an tax experts. executive suite to benefit from its services. Many home-based entrepreneurs find Homebased? Don’t overlook crucial tax deductions. In executive suites meet a range of needs, including access to a private mailbox addition to being able to deduct a portion of your rent or mortgage interest and and a receptionist to answer or forward calls to your home office. utilities as a business expense, you can also deduct a percentage of various Go mobile. While the costs of establishing a permanent retail location home maintenance expenses, along with a portion of the cost of services such can be steep-you may spend up to $100,000 or more, with leases spanning three as house cleaning and lawn care. Check out the IRS’s Web site, or check with to 10 years-carts, kiosks and temporary spaces can be an easier way to get a a knowledgeable tax advisor for more information. foot in the door with a lot less risk. The upfront investment for a kiosk or a cart Get out on the town. If much of your business is conducted at ranges from just $2,000 to $10,000. License agreements for carts and kiosks are restaurants or you find yourself driving to clients’ offices, make sure you take shorter and are usually renewed every month up to one year depending on the location. This arrangement makes it easy for entrepreneurs to “come in, try it those deductions. If you entertain clients or potential clients to discuss a current out for a month, and if their product isn’t working, shift to a new product line or or future project, you can deduct a portion of your entertainment costs. To qualify for this deduction, you must maintain a log of entertainment-related close up shop and move to a new location. expenses you plan to deduct. For mileage, you can deduct 37.5 cents per mile Recycle! Check Google or your Yellow Pages for a local recycled printer in 2004. This figure usually changes annually, so check with your accountant at cartridge supplier. Or if you want to mix your charitable instincts with your the beginning of each year. printing needs, visit www.lasermonks.com, a remanufactured printing supply Learn something new. Rather than pay a public relations professional company run by a group of monks in Wisconsin who, after business expenses to write your press releases, hire one for an hour or so to show you how to do are paid, donate their profits. it yourself. Fill it out for free. Instead of buying forms at your local office supply Seek at least three bids on everything. Even mundane purchases store or spending time creating them yourself, you can find tons of free merit shopping around. If you quote a competitor’s lower price, a supplier or forms online that you can download, customize and print. Our free forms on vendor will often match that price to win your business. Formnetcan get you started. Buy used equipment. Save up to 60 percent by buying used computer JULY 2008
www.
®
22
Cash Flow - Oftentimes, business owners don’t clearly understand the concept of cash and profit. This prevents proper interpretation of any outcomes from financial reporting. The most basic cash flow statement can be outlined as follows: Beginning Cash Balance + Cash Inflows - Cash Outflows = Ending Cash Balance. As a progressive business owner, it is important that you understand these People start businesses for various reasons, but no matter what you specialize in, it’s important that you know how to read and interpret certain differences, as they give you two different views. financial statements. Some think that you have to be a financial wizard or an Balance Sheet – This statement contains your assets, liabilities and accountant to understand this process, but that is not true. owners equity. Assets consist of items that contain value that you own, such As a business owner, it’s smart to outsource areas that you are not as inventory, equipment, etc. Liabilities are items that you owe such as, loans, knowledgeable in, but it makes good business sense to understand the financial accounts payable, etc. Your equity is calculated by taking the value of your fundamentals so that you can make informed decisions. assets less the liabilities. The statements below are critical to your success, as they will give you a Creating these statements on a monthly basis is critical, as doing so will clear picture of your financial situation: give you a “true” snapshot of your financial situation. Do not think that your Profit/Loss – Generating revenue does not mean that you have a profit business is too small to do so, as size does not matter. Success is something that we choose, as failure should not be an option. So often, business owners do not have a full understanding of what it takes to clear a “true profit.” Profits are determined through the following equation: Take the high road and be a financially informed business owner, not one that Revenues - Cost of Goods Sold = Gross Profit - Overhead Expenses = Net gives sole financial responsibility to someone else. Profit. This equation is the same as your businesses profit/loss statement. As a rule of thumb, remember that revenues (less) what it cost you to create the product = the profit. By Dr. Wendy www.askdr-wendy.com www.myspace.com/askdrwendy
You’ve probably had a health checkup, and maybe even an automotive checkup. But when’s the last time you had a financial checkup? Many people – especially business owners – don’t realize that an annual financial checkup is the most important part of the financial planning process. This annual review is an opportunity for you and your financial planner to examine your financial planning action steps, or “to do” list, and measure the progress you’re making toward your goals. It’s also a time to incorporate any new life changes that have occurred during the past year--the birth of a child, the death of a loved one, a new marriage, a business startup or expansion, or even a major purchase--into your financial plan to help you chart a new course, if needed, or to further affirm that you’re on the right track. Remember, your life is dynamic, not static, and your financial plan should be as well. During your annual review, you and your planner will want to revisit the building blocks of your financial plan and review your resources, goals and priorities to see what’s changed. This act of monitoring and benchmarking is beneficial because you’ll get an opportunity to step back from your busy life, review your goals, and confirm that your priorities remain the same. And you and your planners get the chance to reconnect to affirm that you--and your planner--are taking the right steps toward goal achievement or to refocus so that you don’t get too far off track. One of the first things you’ll want to do is examine your short-term goals. Here, your planner can recommend strategies that should be considered for JULY 2008
time-sensitive objectives. For instance, if you plan to purchase a home sooner rather than later, your planner might suggest putting more aside for the down payment and decreasing what you’re putting into your children’s college fund just until you buy the house. Or the birth of a child may be the catalyst for your planner to recommend purchasing additional life insurance. You and your financial planners may also want to measure the performance of your investment portfolio as part of the annual review. Typically, performance should be measured against several benchmarks, the most important of which is your own personal goals. For instance, if you and your planner had established that your portfolio should grow by five percent annually before taxes, then your portfolio performance should be measured against that yardstick. Just like your annual medical exam, an annual financial review isn’t something to put off. You need to take the time to examine your financial and life goals in order to determine that you’re on course to attain these goals. It’s also a chance to review changes that have occurred and begin to anticipate changes that may occur in the future. And it provides the opportunity to implement any new plan of action that’s been developed in light of changing situations or goals. Don’t put off your review any longer--your financial health could suffer because of your neglect.
www.
®
23
JULY 2008
www.
®
24
JULY 2008
www.
®
25
When Ron Celestine’s son graduated from college, he knew it was time do something he’d been hearing about for years: Become a volunteer mentor with Big Brothers Big Sisters of Greater Houston. “I always knew there was an incredible need for this type of support in our community,” he said. “The timing was perfect for me since I would not have to devote as much time to my son.” The Cypress resident and member of Alpha Phi Alpha was matched with 15-year-old Naam. He soon realized that giving back to his community through mentoring wasn’t just helping his Little Brother – it was having a big effect on himself as well. “It provided me an opportunity to have a direct positive impact with a support system on the life of a young man,” Ron says. “It is one of my greatest satisfactions in life.” Despite traveling for his sales job with General Mills, Ron says the commitment that Big Brothers Big Sisters asks is realistic – just about 4 hours a month. Plus, Naam lives close to Ron’s house, so he doesn’t have to travel far to see him. Big Brothers Big Sisters takes the time to match volunteers with children who have similar interests. In Ron and Naam’s case, they both love sports and being active. They’ve played golf, gone to the gym to work out, and practiced football drills. He knew he was having an impact when Naam introduced Ron as his Big Brother to one of his friends.
JULY 2008
“The look on the young man’s face was priceless. His only comment was that was pretty cool and you could tell he was thinking, I would like to have one also,” he says. For Ron, the mentoring experience is part of a bigger issue, and he urges other African-American men to get involved. “Your young brothers and sisters really need your leadership and support. We have far too many of our children growing up with little exposure to anything else but their immediate surroundings. I would also remind you that to who much has been given even more is not only expected but required if we are truly going to help our community reach its fullest potential.” Right now Big Brothers, Big Sisters has a need for AfricanAmerican male mentors.
www.
®
26
JULY 2008
www.
®
27
JULY 2008
www.
®
28
JULY 2008
www.
®
29
JULY 2008
www.
®
30
Overall, it’s a reflection of a person’s character. That’s the assumption many companies make. The idea is that the credit score will offer insight into the applicant’s reliability and a sense of personal responsibility. Given everybody is equal in their backgrounds and skill set, if one person has a better credit score, you’re probably going to be better off with that person. Some employers use credit reports as an additional verification of identity. Other employers are concerned about hiring persons who cannot manage their affairs, or whose monthly debt payments are too high for the salary involved. However, employers should approach the use of credit reports with caution and have polices and procedures in place to ensure that the use of credit By Carla Lane information is both relevant and fair. An employer should first determine if there is a sound business Contributing Writer reason to obtain a credit report. Unless the information Your credit score tells potential creditors in a credit report is directly job related, its use can be how risky of a borrower you are by gauging how considered discriminatory. responsible you’ve been with handing credit and managing debt. It makes good sense that lenders would want a good idea of how likely it would be for a borrower to default on a loan. There’s someone else who might be checking up on your credit history — your employer! If you’re interviewing for a position that involves finances, confidentiality, and handling money, then it’s likely that your employer will run a credit check before they make you a job offer. Some companies check applicants’ credit regardless of the specific position under consideration. For job applicants, a credit report can feel like an invasion of privacy or a violation of their rights. However, job applicants have substantial legal protection concerning the use of credit reports for employment. In fact, an employer cannot obtain a credit report without an applicant’s written permission and cannot use it to deny a job until the applicant has had the chance to review the report So what does your credit report tell your future employer?
JULY 2008
www.
®
Your employment history is not part of your credit score, but your credit score could be factored into your chances of getting a job. A good credit score will give you access to the best interest rates and it could also give you an edge if a potential employer runs a credit check for applicants. Just as lenders may see you as a risky borrower if you have a poor credit score, employers may also view you ask a risky employee. If job applicants are concerned about their credit reports, they should first contact all three major credit bureaus and request a copy. There typically is a fee not exceeding $8.00, but in some circumstances reports are free. Credit reports, as well as information on costs and procedures to dispute information, can be obtained as follows: Trans Union (www. transunion.com/CreditReport/CreditFileInfo.asp)-800-888-4213. Equifax (http://www.econsumer. equifax.com/)--888-532-0179. Experian (www. experian.com/customer/index/html)-800-972-0322.
31
JULY 2008
www.
®
32
By Christina Robinson Grochett Defender or the first time in American history, there are four generations working sideby-side in the workplace: Traditionalists (also called veterans), Baby Boomers, Generation X and Generation Y (also called Millennials). Each has different expectations, needs and opinions about how to succeed in the workplace. For managers, this is significant because it should influence the way they recruit, lead, and motivate staff to increase productivity. As a case in point, a recent study conducted by Lee Hecht Harrison, a career management services company, found that 60 percent of employers nationwide experience significant tension among employees from different generations who had distinct attitudes and varying motivational buttons. For instance, many Baby Boomers believe Gen Xers are impatient and willing to throw out the tried-and-true strategies too quickly. While Gen Xers often view Baby Boomers as averse to change. Traditionalists, our World War II generation, tend to view Baby Boomers as self-absorbed and prone to sharing too much information. Some Baby Boomers may view Traditionalists as dictatorial and rigid. Finally, Gen Xers often consider Millenials
too spoiled and self-absorbed, while Millenials may view Gen Xers as too cynical and negative. Managers need to understand these unique attributes and promote solutions to facilitate working relationships among these groups. Below are a few easy tips to manage the different generations in the workplace.
Customize Your Management Style:
by providing employees with information about new products, advertising campaigns, strategies for competing, etc. Let each employee see how he or she fits into the big picture. Help employees see how meeting their goals contribute to meeting the organization’s goals.
Offer Different Benefits: One benefit does not fit all anymore. Companies need to craft roles, compensation, and benefits targeted to the needs of each group.
Tailor your managerial approach for each generation and provide feedback based on performance. Be specific; mention a particular situation or activity. Make sure the employee understands company expectations. Involve the employee in the decision-making Mentoring roles can provide fresh challenges to middle and older generaprocess whenever possible. tions. It can stimulate their productivity and help them feel valuable while also ensuring knowledge transfer and training younger generations.
Facilitate Mentoring:
Increase Communication:
Understand and utilize the motivators of each generation and use these to effectively communicate. From one-on-one coaching to department meetings or company newsletters, the more communication there is, the more informed each generation will feel. Encourage a sense of ownership
Build Morale: Have an open work environment; encourage initiative and welcome new ideas. The more you understand each generation, the more you can help them communicate with others and create a culture of engagement.
As a high school drop-out, I knew that in order to compete in the changing world I needed to get my GED. I went to San Jacinto College and met with a counselor. She explained to me that if I failed the test we would know where to concentrate our efforts but there was always a chance I would pass and to my surprise, I did. That same day I enrolled in the Business Management program and the company I was working for at that time paid my tuition. The criteria for graduation included taking and passing a specific number of credit hours and an end-ofthe-year project. During that year, Juneteenth was approaching and I asked if anybody was bringing barbecue, watermelon or red soda for the celebration, but no one was interested so I took it upon myself to provide the fixings and it turned out to be a great hit. Following that event, I was asked to provide barbecue for different co-workers and as a result, I thought there might be a chance to start a business doing the same thing. When I had to complete my end-of-the-year project, I fed the class barbecue and got an A+. That was the beginning of Ford’s Barbecue and Catering. After many years, I finally got my DBA in 1993 and the journey began in 1994. I graduated from JULY 2008
In short, good business is based on understanding others. While it takes additional time to identify how people think and which approach works best, making an effort to get to know the differing generations will ultimately lead to increased productivity and high- quality work.
www.
®
Christina Robinson Grochett is the campus director for University of Phoenix – Houston. An accomplished leader and champion of higher learning, she was named one of the Top 10 businesswomen by the American Business Women’s Association in 2008.
San Jacinto College in 1996. I became a member of the Texas Chef Association, the American Culinary Federation and founded the Ford Culinary Foundation of which I am CEO. I also contracted myself out for two years, doing everything from cooking to bartending to wait staffing. I opened my first restaurant in 1998 and was hired by Alvin Junior College to set up the Institute of Culinary Arts at Pearland College. After they ran out of grant money I started catering again and then the awards started coming: Small Business Development Award Winner by Metropolitan Transit and Caterer of the Year by the Port of Houston. I changed the name of my restaurant from Ford’s Barbecue and Catering to Ford’s Fine Foods and Catering and was again on the receiving end of numerous awards: Caterer of the Year from the Houston Business and Professional Men’s Club, Business and Civic Leadership Award from the Houston East End Chamber of Commerce, H.U.B. Vendor of the Month from the University of Houston, Business Benchmark Award-Tri-County Black Chamber of Commerce and Med-Week Service Firm Award from the Houston Minority Business Enterprise.
It’s wonderful to do what you love.
33
By Stephen K. Brown Contributing Writer
The U.S. financial markets are currently in turmoil. Not since the late 1980s has the banking industry been in such dire positions. As the competition amongst banks for higher profits increased, banks stretched to make residential real estate loans to borrowers who were under-qualified. As the economy declined from higher energy costs and rising unemployment, these marginal borrowers have been unable to make their mortgage payments – many of which were tied to rising adjustable rates. In an effort to spread the risk on these potentially volatile loans, banks packaged the loans into securities, and sold these collateralized mortgage obligations (CMOs) to other banks as high return (high risk) investments. With record mortgage default rates, the values of these securities are unraveling and bank stocks are plummeting. The natural response for banks is to tighten credit standards and underwriting policies, particularly for real estate related loans. This poses an interesting dichotomy, since interest rates are the lowest that they have been in this decade, which makes it the best time for small businesses to borrow. This is the time when a small business needs to think strategically about restructuring company
JULY 2008
www.
ÂŽ
debt. By consolidating debt, under more favorable rates and terms, the smart business owner can reduce debt service, increase cash flow and release equity for working capital. For owner-occupied real estate, there may be equity that the company can pull out to use for working capital, to fund growth and expansion, or to fund retirement and estate plans. For companies that are currently renting, this may be a great opportunity to consider using the same rental payments to purchase a facility that will provide the company with an appreciating asset over time. Banks are still competing for profitable companies with strong management and a sound business plan. An experienced banking consultant can assist in identifying strategic financing opportunities within your company, structure and package your loan request from a lenders perspective and search the market for the best rates and terms for your specific situation.� Stephen K. Brown is CEO of Revelation Consulting Group, LLC, which assists entrepreneurs in rebuilding and maintaining their financial fitness.
34
JULY 2008
www.
®
35