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HM:DAK@=J K ;GDMEF SEPTEMBER 2016 EDITION HOUSTON

MAGAZINE

Chairman John Cruise President/Executive Publisher Steve Levine Vice President/Publisher/ Creative Director/Editor Barbara Davis-Levine 'LMIJ *MRERGMEP 3J½GIV Ervin Hughes Graphic Designer Photographers Gwen Juarez Contributing Writers Barbara Davis Ruben Gonzalez Bruce Hurta Ron Kinkade Hank Moore

Daniel Prisciotta Christi Ruiz Gail Stolzenburg Holly Uverity Aimee Woodall

Chief Advisor Hank Moore Publisher’s Advisory Board Denise Adjei Sonia Clayton Donna Cole John Cruise April Day Dr. John Demartini Maya Durnovo Kathie Edwards Mila Golovine Dory Gordon Greg Grant David Holt Richard Huebner Ervin Hughes Jeffrey Jones Darryl King Sandy Lawrence Craig Klein Wea Lee Bertrand McHenry

Hank Moore Lisa M. Morton Mike Muhney Leisa Holland Nelson Tony Noun Annise Parker Page Parkes Howard Partridge Susan Repka Maria Rios Grant Sadler Rita Santamaria William Sherrill Gail Stolzenburg Pam Terry Linda Toyota Mayor Sylvester Turner Jack Warkenthien Carlecia D. Wright Aaron Young

Phone: 832-419-2814 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today P.O. Box 31186 Houston, TX 77231 See us on the web at www.SBTMagazine.net

SMALL BUSINESS TODAY MAGAZINE IS PUBLISHED MONTHLY BY LEGACY PUBLISHING GROUP, LLC. P.O. BOX 31186 HOUSTON, TX 77231 EXECUTIVE PUBLISHER - STEVE LEVINE: 832-419-2814 CHAIRMAN - JOHN CRUISE: 832-460-2020 WWW.SBTMAGAZINE.NET ADVERTISING RATES ON REQUEST. BULK THIRD CLASS MAIL PAID IN TUCSON, AZ. POSTMASTER: PLEASE SEND NOTICES ON FORM 3579 TO P.O. BOX 31186 HOUSTON, TX 77231. ALTHOUGH EVERY PRECAUTION IS TAKEN TO ENSURE ACCURACY OF PUBLISHED MATERIALS, SMALL BUSINESS TODAY MAGAZINE CANNOT BE HELD RESPONSIBLE FOR OPINIONS EXPRESSED OR FACTS SUPPLIED BY ITS AUTHORS. COPYRIGHT 2012, LEGACY PUBLISHING GROUP, LLC. ALL RIGHTS RESERVED. REPRODUCTION IN WHOLE OR IN PART WITHOUT WRITTEN PERMISSION IS PROHIBITED.

TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO (2)! September Greetings Everyone!

f someone asked me for a list of my favorite motivational speakers and authors, I would have to include the late Dr. Robert H. Schuller as one of the top two. I had the pleasure of meeting and talking to him several times in my life and have been an avid reader of his books for many years. I even attended one of his services in Garden Grove, California in the early nineties.

The title of my column this month is the same as it was one year ago, “Tough Times Never Last, But Tough People Do!” It is one of my favorite messages by him. If you have been following Barbara’s and my journey since May 2015, Barbara and I have been through some pretty rough times since Memorial Day 2015 that turned our life and business (literally) “upside down” when five feet of flood water destroyed our home, cars, clothes, contents, and furniture. In addition, whatever the water did not ruin, chances are the toxic mold did. Since then, I have had eye surgery for a concussion that I suffered during the initial flood, Barbara was hospitalized in late May/early June this year with heart and blood pressure issues. We did not publish SBT in November 2015 (it became a March 2016 issue), we Published an April this year and THIS is the first issue we are publishing since April! Dr. Schuller’s words of advice are great and very true but sometimes when you are in the middle of some of the most devastating experiences of your life and buesiness, you might find it difficult to keep the above in mind. It’s important to remember that G-D did not create you to fail. All of the subjects of this magazine’s cover stories have experienced disappointments and challenges in starting and growing their businesses. Many were told that they would NOT be successful in their endeavors and yet they refused to quit. Yes, my faith and belief system were shaken as we were overtaken by flood waters and our calls for help went unanswered. How could “My G-D” let this happen? As I write this same column again 12 months later, I can honestly say that the experience and the support from friends, family, and associates (and even strangers) continues to strengthen my faith and my belief in the above title even more. This month’s cover honoree is Ms. Evelyn Fletcher of EAS/Electronic Assembly Services, Inc. We have greatly enjoyed getting to know Evelyn as a business and personal level. Even though our cover stories are always about an entrepreneur and their business, Evelyn is always first to tell you that it’s really all about her team and not her! I hope that you enjoy her story as much as we enjoy bringing it to you! Good Reading, Good Sales, & Success to You,

STEVE LEVINE

President/Executive Publisher, Small Business Today Magazine

INSIDE SEPTEMBER 2016 EDITION HOUSTON

FEATURES

ON THE COVER EVELYN FLETCHER.

EAS/ELECTRONIC ASSEMBLY SERVICES, INC.

03 13

Publisher’s Column

The Fine Art of Failure. Benefiting from Mistakes We Make, in Order to Assure Success.

What is Your 7-Word Power Statement?

The Next Phase: Protecting and Capitalizing on What You Started

Getting Organized: Ask the Organizer

Take a Chance

4 Reasons Why Small Businesses are Opting for Cloud Phone Systems in the Mobile Age

31 32

The Networking Experience

23 24

Federal Loan Program Helps Build a Retirement Account with Small Business Real Estate

Financial Astrology September 2016

#NoFilter: The Benefits of Keeping It Real [Time]

ENTREPRENEURSHIP AT HOUSTON COMMUNITY COLLEGE

INSIDE BACK COVER

HMSDC BUSINESS EXPO 2016

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A Great Company that Began through Determination and a Taco! BY BARBARA R. DAVIS

ELECTRONIC ASSEMBLY SERVICES INC. Evelyn is very proud of the quality of products her company turns out for her clients! She is shown here with one of her Electronic Control Panels for the oil, gas and energy industries Photo by Gwen Juarez

rowing up in the one of the poorest areas of Houston, Evelyn Fletcher knew that life wasn’t easy. From the time she was a young child, she learned through her mother’s example and teachings about the value of a dollar and working hard. Her mother was a divorcee who struggled to make ends meet caring for Evelyn and her older brother. In spite of it all, they managed to survive. Evelyn was always looking for ways to help her mother and make her happy. As a result, Evelyn grew up being very resourceful and positive-minded. She was determined to have a better life and knew that she would find a way. As an adult, Evelyn came up with the ingenious idea to trade the great tamales and tacos she made in exchange for lessons in how to wire electrical control panels. Evelyn not only learned how to do what had been predominantly done by men, she was able to find a niche because of her small size. Eventually, she developed such a reputation for quality and skill that she was able to start her own company and as a result, Electronic Assembly Services, Inc. was born. Electronic Assembly Services began in 1997 but was incorporated on March 26, 1998. They specialize in custom assemblies of electrical control panels, electromechanical panels, wire harnesses, and subassemblies for all types of industries. The services they provide can be turnkey or labor only, according to the clients’ specifications. They build custom control panels for the oil and gas industry, utility companies, the energy sector, transmission companies, power substations, and the transportation industries. Basically, anything that needs assembly, they can build. In addition, they perform power up tests, electrical testing, designing, and engineering. Some of their clients include Centerpoint, GE, Cameron, Oceaneering, Stewart and Stevenson, Aker Solutions, and Axon where they build custom panels and assemblies for them.

Although Evelyn lived in the Allen Parkway Village project housing located in Houston’s fourth ward, she never grew up feeling sorry for herself. She was always appreciative of what little she had and even when she was eight-years-old, her determination and resourcefulness was reflected in her actions. Her mother had been distraught because she couldn’t afford to buy Christmas presents, let alone a tree and decorations. Evelyn found a tree that had been thrown out and she dragged it inside their apartment. In addition, she remembered that they had one little light bulb so she put it on the tree. She was so excited to show her mother and exclaimed, “Look, Mom, we have a tree!” Her mother began to cry, so Evelyn asked her, “Why are you crying? Her mother replied, “We have a tree.” Precocious Evelyn understood that her mother was also crying because she couldn’t afford to buy them anything and tried to comfort her mother by telling her, “It’s okay. I understand.” Evelyn reflected about that time in her life, “Back in those days, things were really tough. The only gifts we got were from Goodfellows, a nonprofit organization that provides toys to needy children during the holidays. Things are tough now, but things were tougher then. I’m the kind of person that says, ‘If you can survive then, you can survive now’.” Evelyn’s mom had her hands full caring for her and her older brother. Putting food on the table was often a struggle. Her mother worked at various places that included cleaning houses and apartments. In addition, she worked at a pizza parlor. Evelyn used to babysit and her brother used to work at a grocery store. Evelyn recalled, “Even though things were tough, we survived. My mother made us go out and work hard. She raised us right.” As the saying goes, “Great things come in small packages”, and Evelyn has always been one heck of a firecracker! She is a towering five feet tall in heels but what she lacks in stature, she makes up for in her self-confidence, resilience, and abilities. “When you’re small in stature, people pick on you and you have to learn how to survive,” recalled Evelyn. “I hung out a lot with my brother and cousins. They taught me how to defend myself.” Evelyn would always say to herself, “There’s got to be something better than this.” Her mother worried that she was going to get in trouble and worked hard in teaching her to always do the right thing. Evelyn’s parents were divorced and even though her dad was in her life, she still yearned for her parents to get back together. Evelyn attended Jeff Davis High School but dropped out of high school in her senior year because she was young and wanted to be on her own. Naively, she thought she was old enough to get married and start a family. As the saying goes, “The best laid plans of mice and men often go awry”, and Evelyn ended up getting a divorce. Just like her mother, she learned quickly how to survive as a single parent. Times were tough but Evelyn managed to make ends meet. She had wanted to go back to school and get her GED

but even though she took some classes, life kept getting in the way. She had an opportunity to work at a company and that took precedence. After working for that company for a year, she was laid off. Right after the lay-off, a friend called her and said that there was an opportunity at Stewart and Stevenson where her friend worked. So Evelyn went on a job interview and was hired. It was 1976 and she was delighted to be making $3 an hour to do a little wiring, build circuit boards, and put electronic components together. During the time Evelyn was there, she became aware that people were getting laid off and Evelyn had already lost her last job like that. She knew that she had to do something. That is when she got the brilliant idea to expand her horizons by learning more skills. Using her resourcefulness, she approached some of the men who were working in the electrical shop and said, “Know what? If you will teach me how to wire those panels, I’ll bring you some tamales and tacos. You know, just to teach me!” So, they agreed to teach her and every other day she would bring them tacos and tamakes in exchange for training. One day, one of the supervisors went to the electrical shop and asked one of the men to wire a certain panel. The problem was that not only was the guy too tall to fit in the area that needed the wiring, no one else in the department was small enough to fit in the area either. “But”, added the guy along with the other men in the department, “We know someone short enough and capable enough to do it!” To the supervisor’s surprise, they all said, “Evelyn Fletcher!” He said, “Evelyn Fletcher? I don’t think so!” I said, “How do you know? Just give me a chance!” The other guys defended Evelyn and said, “She’s been doing it for six months and she has been doing an outstanding job.” To make a long story short, he had doubts but he decided to let her try. So, the supervisor had Evelyn wire the panel. Afterward, he told Evelyn that she did alright. She replied, “Aright?! And he said, “No, you did well. Know what, though? We have another panel for you to wire.” Evelyn asked where it was and his reply was, “Not here. It’s offshore.” At first, Evelyn was taken back by the idea of working on a rig. After all, it wasn’t a commonplace thing for women to be working offshore. Every day, Evelyn would be taken back and forth by boat to the rig until she had finished the panel Evelyn recalled, “I never saw any women other than myself. I was nervous and scared, but I got to see the oil rigging. It was amazing. All the men there were very nice. Even though they were quite rough, they acted professionally. It turned out to be a nice experience. I could not believe that I would have that opportunity. It was amazing to wire that panel and they were really impressed with all the wiring that I did.” Evelyn added, “It was not as complicated as I thought. I was just scared of being up there but once I got used to being there, it was [ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 7

Evelyn attributes all of her success to her fabulous team! She sees to every detail and the quality of her products for her growing family of clients.She sees to Photo by Gwen Juarez.

great. I adjusted well to the harsh and rugged work environment. I could understand the value of going away from your family and being out there all alone. These people work hard. I feel that everybody should work hard to get to where they are at, within reason. The most important thing that I missed was not being with my family every day.” In 1978, Evelyn spoke to an engineer who said he wanted to start his own business. Evelyn realized that she felt the same way, too, and from then on it was always in the back of her mind. At that point, Evelyn left Stewart and Stevenson and went to work as a lead person at a company called DST. While she was still working there, they became NL Industries (eventually, long after Evelyn had left, this company became Halliburton). While at NL Industries, Evelyn wired and built P.C. boards and was also responsible for ordering parts. She was told that they were going to put a Research and Development prototype lab here in Houston. Then, they sent her to school for a lot of things, including classes for electronics. After that, they sent her to classes for putting in string gauges. Evelyn was amazed that she was able to learn such things because she had never considered herself a technical person before. Through her education, she became quite confident in understanding the products and how they functioned. Eventually, Evelyn had enough experience under her belt and also had built up enough confidence to tell her boss that she needed to be “laid off ”. At that time, he asked her what her plans were and Evelyn told him she was not sure. Evelyn had a friend named 8 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

Ethel who had been doing subcontracting work assembling circuit boards for an engineer for about a year. She no longer wanted the extra workload and offered to introduce Evelyn to the engineer. Evelyn met with the engineer who had a project that required the building of 1,000 circuit boards. When Evelyn saw the drawings, she knew that it would be easy as pie. This was during Christmas break and the engineer told her that he needed to have them done by January 1st. Evelyn contacted some of the ladies that had been laid off at NL Industries and asked them if they wanted to make extra money. They were more than happy to accept her offer, especially since it was during the Christmas holidays. Evelyn also got help from her father, daughter, son, and son-in-law to sort out and distribute the parts for each kit needed for the boards. She was confident that everyone would be able to make money because she already knew how to quote jobs.. When Evelyn told her husband Larry that she was going to start her own business doing contract work for an engineer, putting boards together, he exclaimed, “Are you out of your mind?!” Evelyn answered, “Yeah. What if I get laid off? I’ll be on the unemployment line. The least I can do is to start this.” Larry wasn’t too thrilled about it. Evelyn elaborated, “He is a quality control guy so he helped by inspecting boards and panels. I told him by New Year’s, we should celebrate, and he agreed. We had a beer at our dining room table before getting back to work. He was not happy. But, we went back to work.”

Evelyn’s husband, Larry Fletcher, is the guy behind the scenes. Even though he has a full time job, he has been supportive of Evelyn from the very beginning when she first started her company and tries to help her any way he can. When Evelyn first started her business and worked out of the house, Larry made work benches out of doors for workers to use. As the company grew bigger and expanded to a facility, Larry built a kitchen for it. In addition, he repaired everything and painted the place. Larry recalled, “Things got scary at times and workers had to be laid off but then things started to grow and the company expanded into a larger facility that had been a telecommunications company. There were holes in the walls everywhere and each night after work, I filled the holes in the walls until 3 AM and went home because I had to get up for work in the morning! I painted the whole facility by myself which was no easy undertaking either.” After Evelyn told Larry that she was going to start her own business, she got in contact with an attorney. He asked her a lot of questions, such as, “Do you know what a business plan is?” Evelyn replied, “No, I don’t know what a business plan is.” He then explained it to her. Evelyn learned really fast. She knew that she had to get it together. The attorney then said, “It’s better if you go to the courthouse and do it yourself because I would charge a lot.” He told Evelyn to take a course at the University of Houston that would teach her how to start her own business. By this time, it was 1999 and she started on March 26th of that year. After that, Evelyn started talking to other people, telling them that she was starting her own business. Evelyn went to see a longtime friend by the name of Bill who was an engineer and business owner to discuss with him about renting a room in his facility. They discussed throwing a professional gathering to generate potential business. They began having networking events and invited everyone they knew, especially engineers and managers. Bill and Evelyn decided they would work together as separate companies. Sure enough, within three months, NL Schaeffer (now called National Oil Varco) called them about a project opportunity. Evelyn needed qualified wire technicians so she contacted three employment agencies in search of the right candidates. “I tested them on electrical, dexterity, and their ability to read a schematic,” explained Evelyn. Evelyn’s determination to do everything the right way was even reflected in the great lengths she went in interviewing enough people to select the best candidates. She actually interviewed 50 people and only picked one for the job being done for NL Industries! “I wanted to make sure we had the best qualified candidates. I told them that I could finish the project in six months but I ended up finishing it in four and a half months,” remarked Evelyn. “They were really happy about that. When I went over there, I already had built those panels for Stewart and Stevenson. In addition, Stewart and Stevenson had already sold to NL Industries, so I already knew how to build panels for them and I already knew how to build boards. I had that experience.”

Evelyn made the commitment to do it and through her determination, she did what she set out to do. She was meticulous regarding the control panels. She was asked, “What is your plan? How are you going to do this?” She analyzed everything and came up with a brilliant solution. “What I’ll do is if you don’t have the panels here, I can make harnesses and when the harnesses come in, you can have two shifts. You can go with 10 people during the day and 10 people at night,” stated Evelyn. She was confident that they could get it done. Always determined and resourceful, she came up with the cost-effective, efficient use of time by having the harnessing done during the day and then afterward, they could begin labeling it and crimping it. Then, by the time the panels arrived, all they would have to do would be to drape them and hang them.” Evelyn hit a homerun with her innovative plan! Everyone loved her idea about the use of harnesses. Needless to say, the job was successfully completed on time with quality and precision. When things are done well and efficiently, people start finding out about you. As a result, everyone was spreading the word about Electronic Assembly Services. Evelyn began getting jobs with more and more companies including Hydril. Depending on the job, Evelyn hired contract labor with the necessary skills to accomplish the task. In this case, she had to hire nearly 50 people. It was also necessary for there to be three shifts that added up to 80 hours a week. Knowing that she didn’t have enough space in her headquarters, Evelyn asked the person with For Evelyn, E.A.S is a family oriented business. She is seen here with her daughter Lisa Mireles and son Gary Fletcher. Photo by Gwen Juarez

Hydril if she could take a peek at their facility. After viewing it, Evelyn suggested they use theirs instead. In addition, having the people there would enable them to cut their time in half and would save them money. They the liked idea and went with it. Later on, Evelyn met Linda Holloway, who suggested that Evelyn get certified as an MBE (Minority Business Enterprise). Since the gas industry was slowing down more and more, she spoke to someone at the Houston Minority Supplier Development Council (HMSDC)about becoming certified. She not only became certified as an MBE, she also got certifications as an SBE (Small Business Enterprise), W/DBE, HUB, DBE, and SBA. She also was nominated to be Subcontractor of the Year by the SBA, Supplier of the Year by the HMSDC, and Entrepreneur Woman of the Year by the Houston Hispanic Chamber of Commerce. Evelyn is quite humble about her accomplishments but she has done quite well and deserves the recognition given to her. Not bad for someone who never graduated high school! Evelyn knows that she has to attend a lot of events to get her company’s name out there. At an event at the Federal Reserve Bank, she had the fortune to meet a businessman who wanted to discuss building something similar to a forklift. When Evelyn took one look at the electronics and wiring, she confidently exclaimed, “Piece of cake!” He said, “You know, Evelyn, if you could build this for us, you can build it for all of the reserve banks.” It just goes to show you that you never know who you are going to meet. He asked if Evelyn was certified with the government and she said, “Yes.” He said, “Good. They have a budget. If there’s a need, we will call you!” Evelyn believes that communications and training of her team is vital to the success of her company, In this meeting, her team is receiving training on products and services for her clients. Safety is a major priority, Photo by Gwen Juarez

Evelyn’s support system not only includes her husband Larry but she also gets a lot support from various organizations including the Houston Minority Supplier Development Council, the Houston Hispanic Chamber of Commerce, Goldman-Sachs 10,000 Small Businesses, and Small Business Today Magazine. Evelyn reassures newcomers, “There are so many sources out there that can give you exposure where you can do these things. As tired as you are, you have to give it your all.” She currently has ten employees, but she has handled a lot more during different times depending on the demand of the project. Currently, Electronic Assembly Services goes to events for the energy, oil and gas, and transportation sectors. Evelyn also travels to certain schools and gives lectures. For example, a marvelous thing occurred at Sam Houston High School. Evelyn gave a speech to the students taking electronics classes. After her speech, Evelyn asked a manager at Toshiba International if she could take the students to their facility to see how they manufacture panels .The manager agreed and before anyone knew it, three or four busses arrived at Toshiba and a grand tour was given. Years later, Evelyn found out that several of the students who took the tour were now working at that very facility. Evelyn has two adult children and four grandchildren and she adores all of them. Her son, Gary Fletcher, helps her run the company and her daughter, Lisa Mireles, works for Evelyn on occasion but is always available to accompany her mother to company events! Evelyn loves running for fun. It helps give her clarity and stabilizes everything else in her life. She and Larry like to go out to eat at local owned restaurants such as Snapper Jacks and Mamacitas. Evelyn greatly values her employees. “My employees are the very heart and soul of my company. They help sustain repetitive and new customers. I don’t do this by myself…not without my employees. Plus, the customers are the people who support my family and employees”, expressed Evelyn. Evelyn is always finding ways to give back including giving presents to various organizations, similar to the way that Goodfellows gave out presents to her when she was younger. “When I give back, it is with my heart and soul. I like to encourage others to become MBEs or any person who is trying to start their own business. I know what it is like. I have been there, too, and it is not easy. Where there’s a will, there’s a way. You cannot give up”, affirmed Evelyn. “You have to keep going. Life is meant to be good and it is not always good. But, as a positive person, my mother always told me that I could do it and she did not have that much of an education. She made me what I am today by being honest and doing the right thing. I believe that we all need to help each other out.” Feisty, resourceful, determined, and smart are all words that aptly describe Evelyn. She cares deeply about her family, her employees, her business, and the Lord. She never slows down and is determined to expand her company worldwide. Knowing how it all began with a taco, as resourceful as Evelyn is, the sky is the limit! SBT

=n]dqf k Ogj\k g^ Oak\ge 1. Sometimes we are tired and get carried away, but you need to spend time with your family. They come first. 2. Integrity is important. 3. Care about your clients. They are the ones supporting your family and employees. They are the heart of the operation.

cause you may not have funds to rely on. I took a chance. You can take a chance, too. 7. You have to have hope. I look at obstacles the way I look at a boxing tournament, what with so many punches. But, you get through it. And if they say no, be persistent and do the right thing. 8. Also give the quality and educate the customer.

4. You have to educate your employees. Make them feel like they are a part of the team. You have to invest money in them, too. I try to send them to classes because it makes them feel good, plus it helps them to do a better job. You also need to cross-train them or else the job becomes redundant. Some can do the job and some cannot. 5. Dream big and think big. Passion is my number one thing. 6. The advice I have for moms is that there are all kinds of resources out there. Being single is not an easy thing be-

9. If I could have done everything over, I would have planned things a lot better. Planning is the key and it is best not to let your emotions be involved, even if it comes with your own family.. 10. You are not a charity case. You are there to do business and you have to learn how you are going to profit. 11. The most important thing I did was taking that chance. Columbus took a chance and so did I! Like Muhammad Ali, you have to take the punches and roll with them. [ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 11

EDITORIAL FEATURE

L`] >af] 9jl g^ >Yadmj]& Benefiting from Mistakes We Make, in Order to Assure Success. BY HANK MOORE CORPORATE STRATEGIST™

uccess and failure...it’s a matter of perspectives. Out of every 10 transactions in our lives, five will be unqualified successes. One will be a failure. Two will depend upon the circumstances. If approached responsibly, they will become successful. If approached irresponsibly, they will turn into failures. Two will either be successful or will fail, based strictly upon the person’s attitude. A 90% success rate for a person with a good attitude and responsible behavior is an unbeatable percentage. There is no such thing as perfection. Continuous quality improvement means that we benchmark accomplishments and set the next reach a little further. Throughout our lives, we search for activities, people and meaning. We venture down roads where we find success. Other activities bring us failure...from which we learn even more what to do to achieve success the next time. We learn three times more from failure than from success. The longer that success takes to attain has a direct relationship to how long we will hold onto it. Success is easily attainable. So, why do people psyche themselves into failing more often they have to...especially when they succeed much more often than they give themselves credit for. Let a mistake occur, and the stream of remarks starts flowing: “We failed. They’ll blame it on me. It’s not my fault. There must be a traitor someplace. Once again, I screwed up. I can’t seem to do anything right. Just my luck to get saddled with a bunch of idiots who don’t know what they’re doing. Does anyone know how to do this the right way? Hasn’t anybody

ever taught them?” Sadly, there are elements of truth in explosive remarks. The bigger question is how people’s mindsets toward mistakes and failures got that way. Failing to meet objectives and believing that you have failed in life and work are two different perspectives. I reviewed a 20-year segment of my career, working with professionals who helped me to formally analyze. From a “time and motion” perspective, we found that considerable time was wasted on the wrong projects, non-supportive work environments, the wrong mix of clients and conditions for providing advise-counsel. Through the review, I learned that my “failures” at time-intensive projects shined light on what I was better suited to do: generate wisdom and foster the enthusiasm for top executives to see things differently. A seeming failure to manage time and motion was ultimately a success in the many revelations that occurred. My frustrations with menial “busy work” projects (just to produce billings and pay the salaries of other people) crystallized into insightful recollections, such as the one you are now reading. From a value perspective, among the wasted hours (due-diligence administrative work) were gems of wisdom that I later abstracted and polished into a series of books. The light bulb would not have shined if I hadn’t learned the lessons through experience. We learn from the failures of all people and organizations around us. Looking in the third person enables self-reflection. How would we handle things if they happened to us? Playing “what if ” helps us think through situations and be prepared to handle when they arise.

?jY\Ylagfk g^ Km[[]kk a&]& d]Yjfaf_ ^jge ^Yadmj]k!2 1. How “Success” is Overrated. Ask various [ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 13

EDITORIAL FEATURE

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people their definitions of success, and you get many definitions: wealth, power, creativity, leadership, perks, respect, insight, etc. Holding realistic views of success will make you more successful. Unrealistic dreamers set themselves up for failure. 2. Never Stop Paying Dues. Realize that success is earned and is a progression. 3. The In-Between Zone. Getting the most from the ordinary. Learning from every step in between. 4. Put Accurate Labels on Human Transactions. Learn what makes other people tick. Frame situations in a win-win mode. Study behavioral styles. 5. Deal with Fear and Turn it to Your Advantage. Studying the subtleties and sophistications of learning, perceiving and feeling is the mark of maturity. “I failed. Therefore, I learned.” Knowledge and perspective equate to success. 6. Continually Shifting and Updating Your Perspectives. How Quickly Things Change. Relish change. Understand how you turn things around. 7. Critical Factors of Success. Study the dynamics of (1) People who just want to get by. (2) Organizations which don’t really know why they exist. (3) People who think they’re taking short cuts to get riches the fast way. (4) Situations which demand failure before success can be realized. (5) Situations which prevent true success from ever being attained.

/ :]f]Úlk g^ Km[[]kk$ Kl]eeaf_ ^jge >Yadmj]2 1. Immediate Feedback. It is far better to succeed or fail...being stuck in that great middle on uncertainty doesn’t give much feedback. Not knowing where we’re going or how we’re doing causes us to make many more mistakes. 2. Starting Over. When you get the chance to try new things or do things new ways, it 14 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

serves to re-level the playing field. Without being bogged down by systems and processes that haven’t worked, you can create as you go. Starting over is difficult for most people to do. After they’ve done it, they feel richer for the experience, though knowing of riches on the front end doesn’t make starting over any easier. 3. Learn What Not to Do Next Time. Gives you a clear frame of reference, assuming that you clearly understand factors behind the failure, rather than blaming them on someone else. 4. How the Pendulum Swings. One succeeds much more than one fails. By studying swings of the pendulum (likelihoods of failures), one better understands their progress. 5. Failures Make the Best Case Studies. When the facts and fallacies are studied, they are less likely to be replicated in the future. Case studies of success and failure form the basis for training, Strategic Planning, Continuous Quality Improvement, Visioning, Futurism and other sophisticated business practices. 6. Lessons Learned But Not Soon Forgotten. One learns three times more from failures than success. One succeeds 5-9 times more often than one fails (depending upon the individual’s attitude, resources and abilities to develop insights). 7. Qualities of Achievements. The more sophisticated the understanding of failures and their factors, the more successful in business and life the person-organization will be. SBT Contact information for Hank Moore Website: http://www.hankmoore.com. Email: hankmoore4218@sbcglobal.net. Phone: 713-668-0664. Hank Moore has advised 5,000+ client organizations, including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations. How to order Houston Legends, book website: http:// www.houstonlegends.net

=flj]hj]f]mjk`ah Yl @gmklgf ;geemfalq ;gdd]_] A Timely Initiative Built by Seizing Opportunities, Building Relationships, and Hiring Talented Staff BY MAYA DURNOVO, CHIEF ENTREPRENEURIAL OFFICER

ransforming an idea or a vision into a business is neither linear nor easy. Right from the start, the challenge is to integrate many complex factors such as: Is the business idea a real opportunity or just a good idea? When to start? How to fund? Launching a business includes many unexpected twists and turns that surprise even the best plans. The passage into business is always filled with risk, regardless of the category, service, or product. Risk is the one element that all businesses share. However, having the right knowledge and tools mitigates the risk and thatâ&#x20AC;&#x2122;s where education and training make an important difference. At Houston Community College, a rich menu of resources and programs are available for small business owners and students. HCC proudly hosts the Goldman Sachs 10,000 Small Businesses Program, the Minority Business Development Agency (MBDA), the HCC Newspring Business Plan Competition, the Idea Pitch Competition, the Teen Entrepreneur College, bilingual business classes in Spanish and Mandarin, and a diverse blend of workshops and seminars that are cosponsored with the local business community.

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HCC has also developed key strategic partnerships to support businesses through certifications, funding, networking, and growth opportunities. Business success is built on these partnerships because they support the collective vision to promote the economic growth of Houston.

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Goldman Sachs Executive Director Cathy Landry and Program Coordinator Mishe Lamshing. Photo Courtesy of HCC.

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These partners regularly participate as cosponsors, panel presenters, and vendor agencies in the HCC-Goldman Sachs 10,000 Small Businesses Program, Minority Business Development Agency events, the Business Plan Competition, and college-sponsored business programs and workshops. Tim Jeffcoat, Houston District Director of the Office of Small Business Administration comments, â&#x20AC;&#x153;Through the partnership with the Houston Office of the Small Business Administration (SBA) and HCC, we are able to reach more businesses and serve them better!â&#x20AC;?

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to Beth Shapiro, SCORE Southwest Region Vice President, â&#x20AC;&#x153;This year we will well surpass 715 attendees. Our workshops attract over 52 participants! Just goes to show how partnerships work together!â&#x20AC;?

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Seizing opportunities quickly. Building solid relationships. Hiring talented staff.

The very first opportunity began with a grant application with the U.S. Department of Education to create an â&#x20AC;&#x153;Export Academyâ&#x20AC;?. HCC won the grant and successfully offered eight continuing education courses to several hundred small business owners. The Houston Chronicle business section headline announcement, â&#x20AC;&#x153;HCC Teaches Exporting to Small Businesses,â&#x20AC;? attracted businesses to HCC.

)$$ FOUIVTJBTUJDBMMZ XFMDPNFE .BSJB $POUSFSBT 4XFFU XIP What followed next was the beginning of entrepreneurship. is the SBA Administrator and a member of President Obamaâ&#x20AC;&#x2122;s cabinet. Ms. Contreras discussed recent national business ini- Dr. Zachary Hodges, President of HCC was invited to meet with Spring Branch community leaders, including Robert tiatives with a group of Houston business leaders. Westheimer, President of Newspring, Inc. Together they dis4#" 3FHJPOBM "ENJOJTUSBUPS :PMBOEB 0MJWBSF[ BMTP NFU XJUI cussed ways to revitalize the Spring Branch community; and thus the HCC/Newspring Business Plan Competition was key leaders in support of the small business community. born. â&#x20AC;&#x153;The key to our success was my willingness to say, â&#x20AC;&#x153;Yesâ&#x20AC;? )$$ JO DPMMBCPSBUJPO XJUI UIF )PVTUPO 4#" TQPOTPSFE to the entrepreneurial community who was willing to partner the annual SBA InnovateHer Business Challenge Competi- and coach future business owners. Iâ&#x20AC;&#x2122;m so proud to have been tion for women business owners who competed with ideas part of developing the foundation for HCCâ&#x20AC;&#x2122;s entrepreneurial and products to impact and improve the lives of women programs,â&#x20AC;? comments Dr. Zachary Hodges. and families. Today, the competition is in its ninth year, annually training " DPTQPOTPSFE DPOGFSFODF UJUMFE $IBMMFOHF)FS BUUSBDUed 230 small women owned business who learned about 25 teams of new and aspiring businesses how to grow their enterprise. The competition is an excellent example of the deep business opportunities in Federal Contracting. and committed relationship between HCC and Newspring Inc. ĂŽF )$$ QBSUOFSTIJQ XJUI 4$03& QSPEVDFE XPSLTIPQT Together these organizations are growing and strengthening at HCC campuses with a total of 715 attendees. According Houston businesses.

18 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

Sandra Louvier, Director of the Center for Entrepreneurship at NW College adds, “It is deeply rewarding to see how our entrepreneurs’ goals and plans are propelled forward during our three-month competition. The end result is that any contestant that completes the competition comes out a winner; thanks to this priceless collaboration between education and the business community.” In 2010, HCC won the Goldman Sachs 10,000 Small Businesses Program and began offering classes in 2011. To date, the program has graduated 452 small business owners; 66 percent of the participants have increased their revenue; and 52 percent have created new jobs just six months following graduation. Over the past five years, Goldman Sachs graduates have won over 200 various awards and recognitions in the small business arena from local news features, magazine covers, to winning awards such as Retailer of the Year, NAWBO Women Business Owner, and most recently the 2015 SCORE Young Entrepreneur of the Year. Award winning Three Brothers Bakery co-owner, Janice Jucker reflected on the impact of the Goldman Sachs Program. Jucker says, “It was the best thing since sliced bread! I didn’t

realize the importance of people from the perspective that our business creates jobs that support families and how vital that is to our community. I love it when my staff tells me they really like to work in our business because it’s also a family.” The Houston Goldman Sachs 10,000 Small Businesses faculty and staff are also repeatedly acknowledged for their expertise and innovation through awards and invitations to make national presentations and to participate in the National Goldman Sachs Program at Babson College. “I am proud that HCC has one of the best programs in the country because of the quality of our faculty and staff,” said Executive Director, Cathy Landry. In 2013, HCC won the Minority Business Development Agency (MBDA) Grant that enabled HCC to focus specifically on minority owned businesses through access to contracts and financing. The results have been impressive and the Houston/ HCC-MBDA Agency earned an “Outstanding” rating in each of the three years of the grant by meeting and exceeding the metrics established by the Department of Commerce. The MBDA staff has facilitated $192 million in contracts, $186 million in financing, served 161 clients, and created 276 jobs!

MBDA staff members, Mark Praigg, Maya Durnovo, Chris Bilton and Warren Winston at the Salute to Minorities luncheon in July 2015 Photo Courtesy of HCC.

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Chris Bilton, Director of the Houston MBDA Business Center, summed up the program, â&#x20AC;&#x153;If we continue to successfully assist our clients with growth opportunities, we will change the conversation from firms hiring minority businesses to meet their diversity numbers to firms hiring these companies because they are capable and provide exceptional services. Thatâ&#x20AC;&#x2122;s when our mission of parity and equity will be achieved.â&#x20AC;? The MBDA Agency sponsors regular events such as monthly â&#x20AC;&#x153;Subs & Sandwichesâ&#x20AC;? to keep minority owned businesses upto-date on current opportunities with large contractors. MBDA also collaborates with the Houston Office of the U.S. Small Business Administration (SBA) to offer a broad range of workshops to meet local business needs. They include: r

" -FOEFS #PSSPXFS .BUDINBLJOH &WFOU GPS TNBMM CVTJnesses to pitch financing needs to multiple lenders in oneon-one 15 minute sessions and learn about lending requirements as well as access to business advisory services through SCORE, the Small Business Development Center (SBDC), and the Womenâ&#x20AC;&#x2122;s Business Center (WBC).

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The exemplary work performed by the MBDA won them a renewal grant for an additional five years from 2016 through 2021 from the U.S. Department of Commerce.

ĂŽF 8IJUF )PVTF TQPOTPSFE "NFSJDBO 4VQQMJFS *OJUJBUJWF a business matchmaking event with the Houston SBA that HCC developed the Teen Entrepreneur College, a business drew 340 small businesses for one-on-one interviews with program designed for high school students. The program prolarge contractors. vides dual credit and mirrors many of the elements of the Goldman Sachs 10,000 Small Businesses Program. High School stuĂŽF -(#5 #VTJOFTT #VJMEFS 8PSLTIPQ XIJDI JT EFTJHOFE UP dents have an opportunity to explore business opportunities, remove barriers and to increase access to strategic growth discover the essentials of leading a business, and then develop their own plan while working with a business mentor. Many of opportunities for LGBT business owners in America.

Rita Reed, Mishe Lamshing, Maya Durnovo, Liz Lara Carreno and Terri Almandarez at the graduation of Goldman Sachs Cohort 14. Photo Courtesy of HCC.

the Goldman Sachs graduates mentor these students by sharing their experiences and expertise. HCC introduced an Idea Pitch Competition to support and promote social entrepreneurism. The competition is designed to encourage HCC students to explore innovative approaches to answer pressing societal needs and to foster an atmosphere of social dialogue. Students submit ideas that address one of five categories: education, environment, technology, health, and social issues. According to Ravi Brahmbhatt, Director of Student Innovation and Entrepreneurship, â&#x20AC;&#x153;We are delighted students have innovative and creative ideas that have now become businesses. These are the students who will change our world!â&#x20AC;? Many students submitted ideas and some of the best include: r

Another program offering is a 32-hour small business curriculum that is delivered in both Spanish and Mandarin to serve those business owners who learn best in their native language. The Spanish curriculum is offered in partnership with $Ă&#x192;NBSB EF &NQSFTBSJPT -BUJOPT EF )PVTUPO NFNCFST BOE UP date 150 Hispanic small business owners have graduated with certificates. Adriana Gonzalez, President, shares the following insight, â&#x20AC;&#x153;Business education is the key to entrepreneurial success. The partnership between Empresarios Latinos and HCC enables us to empower small and medium size businesses to dream big and celebrate business goals.â&#x20AC;?Â The bilingual program is offered through the HCC Corporate College. Jennifer Holmes, Director of the Corporate College comments, â&#x20AC;&#x153;We are delighted to offer business owners a program that is offered in Spanish, Mandarin and now Vietnameseâ&#x20AC;?

)$$ TUVEFOU +PTFQI .PSSJT DSFBUFE 3FBE&OH UIBU JT B The Asian Chamber of Commerce-Houston offered the same smart-application that allows any text not clearly understood to be translated and summarized into layman terms class in Mandarin and 27 small business owners graduated with certificates. Plans are underway to translate this program in real time. into other languages. )$$ TUVEFOU .PIBNNBE "MNBOJ DSFBUFE GVOEHSP DPN HCC has developed a new two-year degree plan in Innovathat is a crowd-funding website focused on educational institutions and nonprofit organizations looking to raise tion and Enterprise that will offer students an opportunity to money for scholarships in the U.S. Mohammed has com- learn the skills to develop new ideas into businesses. The propeted in business plan competitions and plans to enroll in gram has received approval and will be offered in the Fall of 2016. an accelerator program at Rice University. HCC is the one-stop-shop for support and education for )$$ TUVEFOU 3PCFSU 3BNJSF[ EFWFMPQFE UIF JEFB GPS B nonprofit company that helps learning-disabled students small businesses. Armed with education and training, risks are discover and develop their strengths with a group of suc- not only mitigated but skills and talents blossom so that businesses prosper and contribute to our community. SBT cessful mentors that share the same learning challenges.

>gj egj] af^gjeYlagf gf `go qgm [Yf Z] Y hYjl g^ l`] _j]Yl ]flj]hj]f]mjk`ah ghhgjlmfala]k g^^]j]\ Yl @gmklgf ;geemfalq ;gdd]_]$ [gflY[l2 ;athy Landry, Goldman Sachs 10,000 Small Businesses at catherine.landry@hccs.edu Chris Bilton, Minority Business Development Agency at christopher.bilton@hccs.edu Ravi Brahmbhatt, Student Innovation at ravi.brahmbhatt@hccs.edu Sandra Louvier, HCC/Newspring Business Competition, at sandra.louvier@hccs.edu Maya Durnovo, Entrepreneurial Initiatives at maya.durnovo@hccs.edu Jennifer Holmes, Bi-lingual Business classes at jennifer.holmes2@hccs.edu

[ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 21

EDITORIAL FEATURE

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Ask the Organizer HOLLY UVERITY CPO®, OFFICE ORGANIZERS

’m asked a lot of questions about the process of getting organized; here are some of my favorites with the answers.

What do you think is the main cause of disorganization? Indecision. Putting things aside because you’re not sure what to do with them creates physical clutter and causes piles to grow. Decision making is a skill that can be learned, practiced and perfected. Once you make a decision about what to do with something or make a decision about where something belongs, you never have to make that decision again.

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What’s the best organizing tool I can use? A simple spiral notebook. It’s flexible, mobile and professional. A spiral notebook, regardless of the size, eliminates scraps of paper all over your desk and allows you to capture all of your ideas and notes in one spot. Once you create the habit of writing everything in your spiral notebook, you will never again have to search for information you need.

It’s better to start your organizing project in one small area and methodically work through that one area. If your desk is piled with stacks, start with one stack. If your kitchen clutter is overwhelming, start with one drawer. If your closet is crammed with clothes, start with one section or one shelf.

I’ve tried getting organized before but it hasn’t ‘stuck’; why do think that is? Don’t worry, you’re not an anomaly. Organizing starts in your head; you have to begin thinking differently before you can begin acting differently. If you make conscious, deliberate decisions about how you’re going to change your behavior in relation to your ‘stuff ’, those new behaviors will become your new, organized habits.

Use a timer and set it in ½ hour increments; check yourself after the first ½ hour and if you’re motivated to continue, do so. As long as you’re making progress, keep working but as soon as you start feeling overwhelmed, tired or stuck, stop. Schedule another time within the next 7 days to finish that particular project, and once it’s complete, pick another area to work on. Use the timer the same way and systematically work through all the problem areas in your office or your home. SBT

Should you backslide, just start again. It’s unrealistic and self defeating to think that you will immediately embrace all your new techniques; it takes time and a commitment to make a change. What is the biggest mistake I could make if I’m trying to get organized? People mistaken22 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

Office Organizers is The Entrepreneur’s Organizer. Founded in 1993, they work with business people to create solutions to their organizational challenges. Contact them at 281.655.5022, www.OfficeOrganizers.com or www.fb.com/OfficeOrganizers.

EDITORIAL FEATURE

LYc] Y ;`Yf[] BY THREE-TIME OLYMPIAN, RUBEN GONZALEZ

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he most successful people in the world are risk takers. As soon as they see an opportunity, they move quickly and make something happen. They have a special quality that sets them apart from less successful people. They take the initiative in everything they do. They take a chance!

Successful people accept responsibility and take action when they see that something needs to be done. They move quickly. They don’t suffer from paralysis of analysis. They just do something. They do anything that will get them closer to their goal. By taking action, massive action, they build momentum and soon good things start to happen. One of my business mentors likes to say, “Most people need to think less and act more.” Another of my mentors always says, “Done is better than perfect.” Another way to say it is, “Implement now, perfect later”. Management guru, Tom Peters says, “If you want to succeed, be willing to fail. To succeed big, be willing to fail big. To succeed fast, be willing to fail fast.” He’s absolutely right! Successful people are willing to try different approaches to reach their goal. They are not worried about failing. They are just focused on the result. They just throw mud on the wall knowing that if they throw enough, some of it will stick. They never focus on the approaches that didn’t work. There’s no time for that. Wallowing with self pity is for losers. Winners simply learn from their mistakes and quickly try a different approach.

The faster they move, the more energy they have. The more different things they try, the more likely they are in succeeding. They make a game out of it. And, they never take their focus away from the goal. Their attitude is, “There is always a way. I will find a way. I will succeed.” A national survey of octogenarians revealed that their biggest regret in life was not having had taken enough risks. Think about that! What they’re saying is that they realize they did not live life to the fullest and they missed out. When you turn eighty, you’ll either be saying, “I wish I had” or “I’m glad I did!” So go for it. Take a chance. Do something. You’ll be glad you did. SBT Ruben Gonzalez is an award-winning keynote speaker and the author of the critically acclaimed book, “The Courage to Succeed.” His experiences as a three-time Olympian and as the owner of two businesses give him a unique perspective on how to conquer the corporate struggles of today. For his free 10-Part Success eCourse, visit www.StartWinningMore.com or contact him at 832-689-8282.

[ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 23

EDITORIAL FEATURE

Federal Loan Program Helps Build a Retirement Account with

KeYdd :mkaf]kk J]Yd =klYl] BY BRUCE HURTA

dents. Using an SBA government-guaranteed loan to purchase or construct a new facility will provide a lower down payment, a longer repayment term, and easier qualifying criteria than conventional bank financing. In many cases, a small business borrower can qualify for financing with as little as 10% down! The SBA real estate loan is a permanent mortgage for 25 years. r /PU FOPVHI DBTI GPS UIF EPXO QBZNFOU UP QVSDIBTF r /FFE GPS B IJHI USBĂ°D SFUBJM MPDBUJPO OFBS PUIFS SFUBJMFST The borrower does not need to worry about renewing the loan every few years like he does with traditional bank financing. If who also lease their space r #VTJOFTT JT OPU ZFU QSPWFO BOE FTUBCMJTIFE FOPVHI UP KVTUJ- the small business owner is constructing a new facility instead of purchasing an existing facility, the SBA loan can accommofy a commitment to long-term real estate ownership r #VTJOFTT PXOFS EPFT OPU XBOU SFTQPOTJCJMJUZ GPS NBJOUF- date both the interim construction financing and the permanent, long-term financing in the same transaction. There is nance and repairs r ĂŽF SBQJE HSPXUI BOE DIBOHJOH OFFET PG UIF CVTJOFTT DBO- only one loan closing and one set of loan closing costs for both the interim construction and the permanent financing. The not be restricted to a limited space small business has no payment requirements on the SBA loan Many small businesses are ideally suited to operate from until the construction is completed. owned facilities, yet the biggest barrier to achieving that dream The SBA government-guaranteed loan program is known as is obtaining reasonable financing terms. Owners of successful and growing businesses are very concerned with the cash they the SBA 7(a) loan program. Because it is technically a business need to fund the growth of their business, and typical bank loan instead of a real estate mortgage, the business borrower financing terms for small business real estate cause them to can also include funds for new business equipment or working capital to grow in their SBA real estate loan. The SBA real eshave concerns. Those concerns may include: tate loan is a very versatile vehicle to provide long-term financr " EFTJSF UP NBJOUBJO NBYJNVN MJRVJEJUZ GPS CVTJOFTT ing for 25 years, and loan amounts are available up to $5 million growth causes a 20-30% bank down payment requirement per small business borrower. to seem onerous In summary, with an SBA government-guaranteed loan, a r " TIPSU UFSN CBOL SFQBZNFOU QMBO NBZ DBVTF QBZNFOUT UP small business owner can build enough equity in 25 years or be too high r " TIPSU UFSN CBOL MPBO IBT B CBMMPPO GFBUVSF UIBU OFFET UP less, until they plan to sell the business and retire, to have a be renewed every few years creating unacceptable renewal substantial asset with their small business real estate ownerrisk and additional loan closing costs for the small busi- ship. If the small business and its owner meet the tests for enjoying small business real estate ownership, the SBA loan can ness owner r ĂŽF TNBMM CVTJOFTT CBOL IBT DIBOHFE PXOFSTIJQ PS NBO- be a vehicle to achieve that dream. When ready to retire, not agement, and small business loan requests are no longer only does the owner have a business to sell, but he also has a nice piece of real estate to sell or hold for future rental income. favored r ĂŽF CVTJOFTT JT OFX PS FNFSHJOH BOE JU EPFT OPU ZFU IBWF SBT the track record to qualify for traditional bank financing f you own a small business, you need a facility to operate the business. Many times your business requirements dictate a location or type of facility that is leased instead of owned. Reasons for leasing instead of owning may include:

Now suppose the small business owner fits the description of a business owner who will benefit from owning and controlling its own small business real estate. A federal loan program offered through the U.S. Small Business Administration is available for owners who are U.S. citizens or Legal Permanent Resi24 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

For other articles on SBA lending, please see my blog at brucehurta.wordpress.com. For more information about SBA real estate loans for small businesses, please contact: Bruce Hurta, Business Lending Manager, Members Choice Credit Union. You can reach him at 281-754-1112 / 281-384-2595 cell or by email at bhurta@mccu.com.

EDITORIAL FEATURE

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was on Facebook the other day when I spotted it: An ad for an app promising to make you look flawless by Photoshopping your face beyond recognition. Can you imagine? A whole new you for $1.99 in the App Store. And that got me thinking about brands on social media. The social status quo, along with Twitter scheduling software and brand management programs, has made the Internet of brands a little too safe. Bland, really. And thereâ&#x20AC;&#x2122;s nothing worse than being a bland brand. The remedy? Getting real [time]. It might be scary to go out there and be authentic, transparent and unfilteredâ&#x20AC;&#x201D;but itâ&#x20AC;&#x2122;s the best way to make an impact today. Does that mean pull a Kanye and rant on Twitter all day? No. So what does it mean? How can you be more #authentic on social media as a brand? With one powerful change: Post in real time. Scheduling social content is ok from time to time. Maybe you found some great articles that you want to share this week. Maybe you donâ&#x20AC;&#x2122;t have a whole lot of time to be consistent on your social media channels because youâ&#x20AC;&#x2122;re traveling. Whatever your reason, itâ&#x20AC;&#x2122;s cool. You donâ&#x20AC;&#x2122;t have to convince me that itâ&#x20AC;&#x2122;s the right choice for you. Go ahead and schedule, but know this: You need to engage in real time, too. Grab your phone and take a look once a day at whatâ&#x20AC;&#x2122;s trending and jump into conversations that you believe you can participate in. Comment on posts, share and retweet, and reply to conversations where you can add value. Another way you can commit to more real, authentic communications is by adopting new platforms that donâ&#x20AC;&#x2122;t require you to highly curate your social presence. Through Snapchat, you can be more of-the-moment and more casual because your posts arenâ&#x20AC;&#x2122;t permanent. Snaps disappear after their viewed, which means that

26 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

you can be authentic without feeling the pressure of having to spend a whole day on each of your social posts. You can show your real culture, your real people and your real brand without having to worry about the post living on a social â&#x20AC;&#x153;museum wallâ&#x20AC;? forever. Itâ&#x20AC;&#x2122;s a peek behind the curtain. A glimpse of humanity and reality that can connect people directly to what you do and why they should care about your brand. Periscope also takes advantage of this real-time goodness in a way that allows people that arenâ&#x20AC;&#x2122;t able to attend your events or efforts a way to feel like theyâ&#x20AC;&#x2122;re participating. You can livestream your events or goings-on, which gets people engaged in real time, but you can also save these recordings to your channel so people can watch them later. The best part? Because the focus is on live video, you donâ&#x20AC;&#x2122;t have to worry about making it look like a Hollywood film. Yet another way you can stand out? Engage with your audiences. So few brands really do this. Most just post into the void and wait for people to click on their website or pick up the phone. Engagement means more than just hitting â&#x20AC;&#x153;Likeâ&#x20AC;? on those that have responded to your tweets or Facebook postsâ&#x20AC;&#x201D;it means responding back, it means reaching out and commenting on the tweets of others and it means really paying attention to what your audience is talking about. Now more than ever, itâ&#x20AC;&#x2122;s difficult to stand out online and off. Instead of trying to make an impact by being like everyone else, be brave and be yourselfâ&#x20AC;&#x201D;in real time. In a world of Photoshopped faces, perfectly coiffed social presences and robotic auto-tweets, it will definitely capture attention. SBT Aimee Woodall is the owner of the Black Sheep Agency, a Houston-based strategic brand shop specializing in cause-driven marketing, public relations, social media and community outreach. You can contact her at 832.971.7725 or email aimee@theblacksheepagency.com. Theblacksheepagency.com.

EDITORIAL FEATURE

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7-Word Power Statement? BY PAM TERRY

hen someone asks you what you do, what do you say? A typical response is something like, “I’m a Realtor®,” or “I’m a social media consultant,” or “I’m a doctor/lawyer/nurse/hypnotist/coach/etc.” It’s normal to say what you do, but it’s not as effective as you can be.

The “normal” response may be accurate and the examples above all have one thing in common. They are focused on what you do. In other words, the normal response doesn’t say anything about what you do for others, which is much more interesting to the person listening! What you do for others meaning what outcomes you provide – benefits. For example, a better response for a business attorney could be, “I keep businesses out of hot water,” which is 7 words. Or, “I keep businesses out of court,” which is only 6 words. Both of these responses are about what you do for others – the specific outcome provided. These examples are much more interesting and could very likely illicit this response, “Really? How do you do that?” You can say what you do in 7 words (or less) and have it be so powerful that it evokes curiosity simply by focusing on what you do for others, the outcome you provide. By focusing on the outcome you provide, your statement is not only more interesting, it will most likely lead the other person to either ask, “Really? How do you do that?” or to say, “I need you!” When your words are powerful, you invoke curiosity and get a conversation going about what you do. Once someone asks you how you do “that,” be prepared to respond. And, it they say they need you, give them your card and start finding out why they think they need you. Now is the time to either dis-

Qgm [Yf kYq o`Yl qgm \g af / ogj\k gj d]kk! Yf\ `Yn] al Z] kg hgo]j^md l`Yl al ]ngc]k [mjagkalq kaehdq Zq ^g[mkaf_ gf o`Yl qgm \g ^gj gl`]jk$ l`] gml[ge] qgm hjgna\]& cover what they need solving and/or setting up a time to talk more. Your 7-word power statement is perfect for oneon-one networking. Unfortunately, and in almost all cases, there’s nothing more boring when you ask someone what they do and they go on and on about themselves and their services. It’s so much better to be succinct and create interest. The tough thing is that we have a hard time saying less yet it’s impactful when we do. It’s well worth your time to develop a powerful 7-word statement. Words are powerful but only when you put them together succinctly. Hint: words like very, more, this, that, these, and those, water down your message. General and vague words and phrases like value and peace of mind flatten your message. Your 7 word power statement should create a picture of pleasure or pain – an experience or visual that people can relate to. What is your power statement? Here’s mine: I help people become confident, in-demand speakers. Email your 7 word power statement to me and I will be glad to provide you with feedback on it. SBT Pam Terry is a speaker coach, trainer, and marketing strategist. For free training on “How to Easily Develop a Presentation,” visit www.theindemandspeaker.com. You can reach Pam at 832-276-4153 or pam@ pamterry.com. [ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 27

EDITORIAL FEATURE

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Protecting and Capitalizing on What You Started DANIEL A. PRISCIOTTA

hrough hard work and perseverance, you’ve taken a vision and turned it into reality. You’ve built a successful business and created wealth. Now, it’s time for the next phase – capitalizing on what you started. Entrepreneurs and small business owners like you devote their lives to making their businesses work better, faster, and smarter but are often so busy dealing with day-to-day demands they frequently postpone planning for the future. I have two words: don’t wait. Now is the time to create a comprehensive financial plan to help take your business to the next level, allowing you to grow and protect your business, while potentially maximizing its value. Here are some ways you can get started.

Cfgo l`] nYdm] g^ qgmj Zmkaf]kk& If you’re like many small business owners, as much as 90% of your net worth is tied up in your business. It’s a source of income, benefits, and retirement cash flow. It’s nearly impossible to begin meaningful business and personal financial planning without an understanding of what your business is truly worth. This is especially important as you think about retirement. Many business owners don’t know what their business is worth, and subsequently, don’t know how to convert that into liquid dollars they can live on in retirement. Will it be enough (after taxes) to sustain your accustomed lifestyle for decades to come?

;gfka\]j l`] Z]f]Úl g^ j]laj]e]fl Yf\ ]p][m% lan] [geh]fkYlagf hdYfk& Qualified retirement plans, such as a

401(k), are a tremendous employee retention tool when your financial situation can support this commitment. Plans should have respectable investment options, be flexible, maximize tax deductible contributions, be administered in compliance and offer fiduciary protection.

nuses. Your financial security depends on converting your business assets to cash in the most tax-advantaged manner. The best ways generate a current tax deduction against business income, are not currently taxable to recipients, and allow investment earnings to compound and grow tax-deferred.

A retirement plan can also offer a tax-efficient way for you to accumulate wealth outside of your business, giving you more security as you near retirement.

;j]Yl] Yf ]pal kljYl]_q&

Similarly, with the right executive compensation plan, you can effectively reward superior performance, provide valuable incentives, and attract and retain top talent – whether it’s one or more key persons, or a select group of executives. Life insurance, for example, can be an attractive benefit, especially policies that offer opportunity to tap the cash value.

Hjgl][l Y_Yafkl [gflaf_]f[a]k& Whether you own 100% of your business or have partners, you need to consider what would happen if you were suddenly forced to leave the business due to illness or death. With partners, it is essential to have an up-to-date buy/sell agreement that addresses these contingencies and spells out a plan to buy back the interests of departing partners. This protects both the business and the families involved.

LYhhaf_ l`] o]Ydl` af qgmj [gehYfq& I often ask business owners with whom I work, “Do you work for your company? Or does your company work for you?” There are many ways to extract income from a business besides salary and bo-

28 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

Deciding when and how to transfer your business is one of the most important decisions you will make. There are a variety of succession paths available, make sure you plan to choose the one that is best for you. If selling your business, instead of passing it along to the next generation is a part of your plan, a financial advisor can help you maximize the sale of your company and may also provide access to capital if further investment is needed to improve its value. Remember, there is no one-size fits all approach to structuring and operating a successful business. Issues of capital structure, tax reduction and entity selection interact uniquely with your own goals and vision. Your ultimate success will be measured by the creation and implementation of a comprehensive plan that improves the probability of attaining your vision, values and goals. SBT

Daniel A. Prisciotta, CFP®, CPA*/PFS, ChFC, Sagemark Consulting Private Wealth Services / Lincoln Financial Advisors, a broker-dealer (member SIPC), registered investment advisor and an insurance agency. (201) 556-4502, Dan.Prisciotta@ lfg.com. *Licensed, not practicing.

EDITORIAL FEATURE

, J]Ykgfk O`q KeYdd :mkaf]kk]k

are Opting for Cloud Phone Systems in the Mobile Age BY RON KINKADE, VP MARKETING AND PRODUCT STRATEGY, VOXOX

he ideal small business voice communications technology can be challenging to identify given the wide array of options, from landlines to VoIP to mobile phones. While small businesses are increasingly forgoing traditional landlines and expensive premise based systems, they still need to appear professional. Mobile phones offer more freedom, but they also come with inconsistent experiences for your customers. Enter the new realm of businesses opting for cloud phone systems and marrying them with their mobile phones. This provides flexibility business owners need, while also giving a professional and structured foundation to the business image. Typically, a small office with a couple of landlines can reduce costs by more than 85 percent with a cloud-based replacement. While cost is obviously a motivator for choosing the cloud, there are numerous advantages: - It’s all about appearances: For many small business owners, the dichotomy between wanting to appear nimble and personable and the need to appear reliable is an ever present reality. Having a technology that allows them to appear established and trustworthy is a big deal, but not with a large price tag. That’s where the cloud offers many advantages with features such as auto attendant to route calls to the appropriate employee or department, and virtual numbers, which allow you to have a dedicated local or toll free phone number that can easily be routed to a landline or temporary location in case your mobile phone battery dies or if you have poor data connectivity at your home office. If a call is missed, callers will be forwarded to a dedicated voicemail, which can be personalized with a professional business greeting. And in the event of an outage or natural disaster, calls can be automatically rerouted to another office or remote colleague with storage and backup of all call activity. - Why buy the whole cow: Small businesses are very sensitive to costs, especially upfront costs, and few things can escalate quicker than when it comes to technology, particularly hardware. This is where the cloud offers a tremendous opportunity. With cloud-based systems, there is no maintenance or hardware to worry about. The service provider houses and 30 SMALL BUSINESS TODAY MAGAZINE [ SEPTEMBER 2016 ]

maintains all of the supporting technology. Plus, cloud-based phone systems don’t require a long term commitment to fixed or variable costs for your communications needs -- all you pay is a monthly fee on a per-user basis. The cloud also offers growing businesses the opportunity to easily add new extensions to scale up or down as needed. For example, if you sell holiday decor, you may have a seasonable influx of customer service representatives. With a cloud-based phone system, you can instantly add employees for holiday orders and remove extensions when the peak demand ends. - We aren’t in the phone business: Knowing your strengths also means knowing what business you are not in. In today’s economy, you can outsource just about everything but when it comes to communications, you want to retain control and personalization without becoming (or hiring) an IT expert. Look for cloud phone providers that excel in reliability and scalability behind the scenes but also enable you to shape your customer’s experience. Cloud-based phone systems are particularly a good fit for businesses with no IT staff since all the technology is supported by the provider and the business’ non-technical employees can easily manage call features through online portals. - Make my employees more productive: A professional phone system will also allow your employees to be more productive by allowing them to be more connected. According to a study by Chadwick Martin Bailey on behalf of Cisco, communications can dramatically boost productivity. For example, by reaching co-workers on the first try, 49 percent of businesses reported saving 20 minutes per employee per day. Small businesses want to take advantage of all the same bells and whistles that a large company has for their voice communications, but they require the savings and flexibility that the cloud offers them. By uniting these cloud phone systems with their mobile phones, small businesses can be nimble without sacrificing a professional, on-brand and optimal customer experience. SBT Ron Kinkade is the VP of Marketing & Product Strategy at Voxox (www.voxox.com).

EDITORIAL FEATURE

L`] F]logjcaf_ =ph]ja]f[] BY GAIL STOLZENBURG

o you know why Starbucks is so successful? Why do people stand in line and pay a higher price for a common commodity like coffee? Best-sellling author Dr. Joseph Michelle researched the subject for a number of companies and wrote books on them: Starbucks (The Starbucks Experience), The Ritz-Carleton Hotel (The New Gold Standard), Zappos (The Zappos Experience) and Mercedes-Benz (Driven to Delight), all who command a higher price than their competitors. He found the reason was the experience people had with the product, the staff, and the store. So, if you think of your networking event as a store and you as the owner or sales manager, what would you do to insure people, who you meet (visitors), have the greatest experience. Here are a few things to consider: 1. First impression: Is the meeting area open, plesant looking, and inviting? The visitor is the most important person at the meeting. The visitor is doing us a a favor by giving us an opportunity to serve him. What type of presence do you personally signal to the visitor? Are you courteous, helpful, with a professional appearance? Is the meeting focused on referrals and closed business? Are the members organized in open groups so a visitor can easily be integrated? Is there networking time available before the meeting starts? 2. Vision: Are there posters or displays which show the goals and priorities of your group? Is there an action plan to reach those goals? Are your mission statement, values, and pupose visible? Can they see how much business is being done between members? Or, how much the group is doing for charities? Are they truly on a path to success for the future of their members? 3. Cooperation: Are there other similar groups with whom the members meet with on a regular basis? Is there a website containing all the members of all of the groups? Can you select members to contact based on group, area of town, or profession? If there a connection to social media? 4. Emotion: What type of emotions does this experience create for the visitor? Do they feel a commoradery? Do they have a longing for belonging? Do they see themselves as a

productive member of your group. Do they view extraordinary service being provided? 5. Leadership: Do they see leaders working together in a commited effort for the benefit of the organization? Are there leadership positions available for new member to aspire to? Do all leaders and sub-leaders report on the progress they are making? 6. Uniqueness: What makes the group different from other groups they have visited? Every day they have invitations to visit other networking groups. Does the experience they have visiting your group equate to the best? What do you need to change to make that happen? 7. Education: Are there a number of networking books, articles, and CDs displayed so the visitor can see education possibibilities. Are there initial and ongoing training classes, podcasts, and webinars for members to learn the business model and effective ways to network? 8. Promptness: Does the meeting start and stop on time. Does the meeting follow a regualr agenda and was the visitor given a copy of the agenda when they arrived? 9. Orientation: Was the visitor given the ooprtunity to attend an orientation session so all of their questions could be answered? 10. Action: Did you provide reasons for the visitor to take action now? So, the next time you host or attend a networking event, see if these ten criteria are met. See you at the next networking event! SBT Gail â&#x20AC;&#x153;The Connectorâ&#x20AC;? Stolzenburg Gail@GailStolzenburg.com 281 493 1955 www.GailStolzenburg.com

[ SEPTEMBER 2016 ] WWW.SBTMAGAZINE.NET 31

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