Your Money eZine by eMedia Interactive Group Limited

tech now

Tame the Paper Beast with Neat®

tarting this issue, Your Money eZine will, on a monthly basis, recommend products that enhance your business’ operations in this technologically advanced era. We believe that increased use of technology can improve productivity and boost the bottom line of any business. This month’s pick is Neat®, a scanner and software system that reduces the amount of paper your office uses on a daily basis. The system allows you to scan receipts, business cards and other documents into a digital database, which also reduces the need for cumbersome filing cabinets. There are three products to choose from:

• NeatReceipts - a portable scanner and software combination that helps you track your expenses and organize receipts. • NeatDesk – provides a central “inbox” for all your papers. Its patented input tray lets you scan receipts, business cards, and documents in one single batch. • NeatWorks for Mac - uses optical character recognition (OCR) technology to identify, extract and organize important information. Convert receipts into expense reports, create searchable PDF files and export information to Excel® and Quicken®. Now, what do you do with all the paper you no longer need to store? Recycle, of course. What you do with the extra office space is entirely up to you! To learn more about or purchase Neat® products, visit their website: http://www.neatco.com/products

yourmoney ezine

Business Lounge Real Business. Real Talk.

Brought to you by:

business lounge

Gary Matalon Building on Brand Jamaica

on’t just call it a sports bar. Sure, its name is Tracks and Records and the bar is shaped like a stadium track, its patron is none other than athletics demigod Usain Bolt and there are numerous flat-screen monitors and a giant projector screen broadcasting several different sports in an endless loop. But this establishment is so far out of the league of any other bearing the somewhat overused classification that to label it a mere sports bar is to miss the essence of what the business is all about.

A serial entrepreneur active in five companies, Matalon was approached by fellow businessmen Kevin Burke and Stephen Shirley in June 2008 with the concept of creating a premium night-time entertainment venue. He was sold on the idea, so the three men, along with David Shirley Zuar Jarrett and Craig Powell formed the Kingston Lifestyle Entertainment (KLE) Group and began working on their first venture, Fiction nightclub. “Fiction was pretty much conceptualized, designed and built between July 2008 and December 2008 when we opened our doors,” Matalon related. For most of the KLE partners,

this was their first step into the night-time entertainment industry, although some of them already had experience planning major parties. Branching out Fiction was an instant hit and after about a year, the men began to look around for something else to invest in, a way to leverage that success into other similar ventures. Jarrett and David Shirley came up with the idea for Tracks and Records and the men ran with it.

yourmoney ezine

business lounge

“The concept behind Tracks and Records was to be able to take what we felt was the best of Brand Jamaica and package it into one location and have that available locally to ensure that it’s home-grown and ensure that it is authentic Jamaican, but also to be able to develop it in such a way that we can export it,” Matalon explained. After five months of presentations and negotiations, the Group signed the contract with Usain Bolt and his management team. “He has a lot of involvement in it. In exchange for the use of his brand, we couldn’t pay him what Puma was paying him, but what we were able to do was strike a deal where he took an equity stake in the business and, in exchange for that, we use his name on certain units, certain locations,” Matalon said. Tracks and Records is a venture any celebrity worth his salt would want to be associated with. The interior screams ‘highend’, from the cushy banquet seating and booth areas to the chic bistro-style bar. The booths boast interactive tabletops, where patrons can place their orders via a touch-screen computer system. An upstairs mezzanine features additional dining space. The projector screen covers a stage area for live shows. On the menu is local fare with fresh spins on old favourites, like green plantain nachos and jerk chicken quesadillas. The hottest ticket in town Since its grand opening in April, Tracks and Records has become the hotspot for Kingston’s young elite, high-profile business types and regular Joes and Janes

“[Tracks and Records’] potential for export to other markets is tremendous.” looking for a great place to hang out with their friends. As the business enters its drive phase, Matalon and his team are now looking to take the Tracks and Records brand ‘to di world’. They have approached international dancehall stars Shaggy and Sean Paul about their own branded operations, and talks were underway to establish a second venue in London - home to a large Jamaican Diaspora - in time for the 2012 Olympics. The Jamaican contingent, including Bolt, had several meetings with industry officials and went location scouting, but plans are currently on hold for the short term. “Obviously we can’t make an investment like this for such a short period of time. It has to have longer term sustainability, so

we are very cognizant of the challenges and we’re just managing that process very carefully,” Matalon said. In lieu of going overseas just yet, Matalon and his team have refocused their attention on branching out across Jamaica. They are currently negotiating the lease on a piece of land in the vicinity of the new Falmouth Pier in order to benefit from the tourism market along the north coast. They have also been approached by interests in Cayman and New York, even as far as China. With all these possibilities, it might not be long before Jamaica gives birth to its first major franchise and Matalon is already preparing for this eventuality. “[Tracks and Records’] potential for export to other markets is tremendous. I spent a week in Washington, DC earlier this year at the International Franchise Expo and met with a whole host of people in franchising and we’re doing what we need to do to package it,” he stated. yourmoney ezine

business lounge

The best of Brand Jamaica Geographically, Jamaica is a mere speck on the world map, but the outsize personalities and talents of our citizens has propelled the country to superstar status just about everywhere in the world. Music is unquestionably our greatest export, touching the far corners of the world, but since 2008, our athletes have added to the nation’s visibility after commanding starring roles at the Beijing Olympics. The Americans were in awe of Michael Phelps’ record eight gold medals and world records in the swimming pool, but the rest of the world was talking about Usain St. Leo Bolt and his lightning feet that almost set the Bird’s Nest on fire. The world caught Bolt-fever and Brand Jamaica’s stocks skyrocketed. However, we still haven’t mastered the skill of profiting from our own popularity. “Do I think as a country we have kind of come together and gotten the most out of it? Probably not. That really is one of our motivations, the fact that here we are, known by all, every corner of the globe and not really utilizing that popularity and people’s love for it,” Matalon reflected. The KLE Group is certainly intent on taking advantage of the opportunities. “We definitely see ourselves in the next five years as an international brand and we would like to be in North American markets, European markets, even in the Far East with multiple units and really exploit the strength of Brand Jamaica in these other markets, and also to be able to offer our visitors to the island a really authentic Jamaican experience at a global level. That goes for every aspect of the model, from the atmosphere to the food to the service,” Matalon said.

our growth plans as aggressive as they are, we will definitely need to have ways to finance them and certainly, the Junior Market offers us a huge opportunity in that regard.”

“We definitely see ourselves in the next five years as an international brand and we would like to be in North American markets, European markets, even in the Far East with multiple units and really exploit the strength of Brand Jamaica in these other markets, and also to be able to offer our visitors to the island a really authentic Jamaican experience at a global level.” Also on the cards for the burgeoning group is listing on the Jamaica Stock Exchange Junior Market. “We have actually already engaged PanCaribbean to consult with us and to take us through the listing. Our intention is to list before the year is out,” Matalon stated. “We are in the process right now of doing all of the detailed stuff that needs to be done before we can get to that point. But certainly, with yourmoney ezine

business lounge

Through the Fire Things have certainly been going well for Tracks and Records, but the business almost never got out of the blocks. After going through the process of applying for and being granted attraction status, it qualified for the attraction incentive through the Ministry of Finance, which allowed Matalon and his team to bring in capital goods duty- and GCT-free. This helped them to put in all the high-end fixtures and interactive elements that make Tracks and Records stand out. However, about eight weeks before the scheduled opening date, the waivers suddenly stopped coming, throwing plans into a tailspin. With several hundred thousand US dollars worth of goods on the wharf incurring storage costs, plus rent and salary expenses, the team had to negotiate a payment plan to get the goods released and pay the duties over time. To date, there has still been no explanation from the Ministry, even though the Group is appealing the issue. “Luckily, we persevered to the point where we’ve been able to open the place and make it a reality,” Matalon said… “Our focus is not so much on what happened but how we can go forward, what we’re going to do to keep going.” Part of that forward thrust is getting more tourist business. The business currently sees a number of overseas visitors among its clientele on any given day, and the Group is negotiating arrangements with tour companies to put the Tracks and Records on their Kingston routes. They have also developed relationships with several hotels, which see some of their guests stopping by. The retail end of the business is also doing well, selling

“You’re going to need to work as hard as you’ve ever worked. You must know that hard work is definitely the key ingredient in your success but also smart work. That means you need to seek out the answers and you need to be passionate and you need to get it done.”

es and have been through it. You find that people are always willing to share their success stories and talk about what they have done, so take advantage of that. But don’t be afraid to think outside the box and change the game.” advertisment

Tracks and Records-branded memorabilia as well as Bolt’s memoir. As someone who has achieved great success in a number of business ventures and overcome significant challenges, Matalon had this to say to aspiring entrepreneurs: “You’re going to need to work as hard as you’ve ever worked. You must know that hard work is definitely the key ingredient in your success but also smart work. That means you need to seek out the answers and you need to be passionate and you need to get it done. There is a lot of information out there. You can speak to people that have had successful businessyourmoney ezine

insights by Tracey-Ann Wisdom

zynga:

Playing the Market with US$billion IPO There has already been friction between the two over a change in Facebook’s policy involving the credits Zynga players use to purchase virtual goods. Facebook wanted to take a 30% cut of transactions and Zynga threatened to walk away. Zynga eventually acceded; however, its bottom line has not been adversely affected by the move.

enture capitalists and investors with an eye on Silicon Valley have reason to celebrate as social gaming developer Zynga recently filed with regulators for its IPO, which is currently valued at US$1 billion. The creators of popular games such as FarmVille and Mafia Wars joined the growing cadre of internet companies to go public, including LinkedIn and Pandora. The US$1 billion figure Zynga gave in its filing is for calculating registration fees, and the final size of the IPO could be different. Zynga has achieved great levels of success in just four years of operation, reporting earnings of US$235 million during the first quarter of 2011, more than double the amount earned over same period last year. That level of sales and growth suggest Zynga is on course to generate more than $1 billion in revenue this year. According to the company’s prospectus, Zynga’s common stockholders broke even on revenues of $235.4 million at the end of the quarter. Zynga’s success is due to a combination of factors: the games are free; they require no specialized hardware and – perhaps the most important feature – they are hosted on the world’s largest social networking site, Facebook. The company’s IPO offers potential investors an alternative to traditional video game companies, which have seen significant decreases in their share prices in recent years. Zynga has also been eating into the US$60.4 billion video game industry. While the games are free, approximately 95% of the com-

Zynga has yet to state how many shares it is planning to sell or give an expected price range. pany’s revenue comes from selling the virtual goods players use, which has increased 127% between the first quarters of 2010 and 2011. It also makes money from online advertising. As with any other IPO, investors are no doubt looking for stability and profitability, which they will find in Zynga. However, its biggest appeal will be the chance to technically invest in Facebook, which is what venture capitalists have been chomping at the bit to do ever since CNBC speculated that the social network could go public as soon as the first quarter of 2012 with a valuation of US$100 billion. Zynga’s pairing with Facebook is a mutually beneficial partnership – Zynga has access to more than 500 million members of Facebook while helping to keep people returning to the site to play. However, potential investors must note that the company relies almost exclusively on Facebook for its revenue and players; therefore, “Any deterioration in our relationship with Facebook would harm our business,” it stated – and see backers losing significant amounts of money.

advertisment

yourmoney ezine

Start Ups Read. Believe. Succeed.

Small Business Banking

Brought to you by:

start ups by Tracey-Ann Wisdom

Wayne Jones, Jr. Giving Companies A Technological Edge

n his 1954 book Motivation and Personality, famed psychologist Abraham Maslow coined the term ‘self-actualization’, noting that man is always striving to realize his full potential as a human being. This drive is expressed in different ways, according to the individual. For Wayne Jones, Jr., founder and director of Hybrid Technology Solutions, self-actualization would only come from creating his own path, so he made the leap to entrepreneurship in October 2010. “The idea of Hybrid Technology Solutions did not come packaged in one eureka moment, but was rather an amalgamation of ideas, projects and side hunches I had developed over time,” Jones said. He was an active member of the Scotiabank Chair Club Billionaire at the University of Technology and was searching for an “edge” to his business idea when he was introduced to the concept of cloud computing and its potential impact on the business world. Taking a business from idea to inception is no easy feat, but Jones got a boost when he won last year’s Churches Cooperative Credit Union Entrepreneurs Award, valued at J$300,000. Hybrid Tech offers services in website development, graphic design and social media marketing, all of which are vital to success in today’s competitive business environment. “Social media provides an opportunity for customers to openly disclose why they love your brand -or not. It’s an easy way of getting feedback,

gressive in our approach.” They are steadily building up a solid clientele, which currently includes UTECH, Optical Elements, Kemtek Development and Construction and several startup companies as well.

“The idea of Hybrid Technology Solutions did not come packaged in one eureka moment, but was rather an amalgamation of ideas, projects and side hunches I had developed over time.” broadcasting information with the opportunity of having [it] spread faster than you could imagine or even do yourself. The world is growing more social and so should businesses.” There have been the typical challenges associated with startup companies, including the difficulties of maintaining sustainable recurring revenue and acquiring clients. “Another challenge so far is to convince potential clients that, even though our portfolio is not as competitive as other more established companies yet, we are actually capable of producing superior work, in many cases,” Jones said. However, he is not daunted by this perception; instead, his two-member team recognizes the need to ”be creative in our thinking and ag-

This approach will also see them getting into mobile application development, especially for the Blackberry platform. “We have started that and [are] doing much better in much shorter time than we had originally envisioned,” he said. “We are also working on some projects for the company itself. We’ve been thinking about extending into other verticals outside of services and actually build products too for sometime.” Jones advised other young people interested in entrepreneurship to “do what you love. Starting a business in a sense gives you control over what you want to do and where you can go with it. Also, mentorship is very important, especially being that you’re young and inexperienced.” His team has had to learn the ins and out of business on their own, which can be tedious and distracting from the ultimate goal, at times even discouraging, he said. “However, those who have been successful haven’t reached where they are without hard work and diligence. If you’re interested in starting your own business, you have to mentally and physically prepare your mind for the hardship ahead, but I guarantee it will all be worth it in the end.”

yourmoney ezine