Sbt December Issue by Jesus Gonzalez

SBT Houston Staff DECEMBER 2014

PUBLISHER SCOLUMN

Chairman John Cruise President/Executive Publisher Steve Levine Vice President /Associate Publisher/ Creative Director/Editor Barbara Davis-Levine

From the Publisher

Business Development Manager Deborah A. Powell

Steve Levine

Business Development/PR Bill Huff Aaron Kaplan Interns Jesus Gonzalez Norma Diaz Graphic Designer Lavinia Menchaca Photographers Gwen Juarez Contributing Writers

Don Brown Helen Callier Barbara Davis Mila Golovine Ruben Gonzalez Bruce Hurta Aaron Kaplan Craig Klein Paul Marcus Hank Moore Mark Murrah

Rick E. Norris Mayor Annise Parker Howard Partridge Christi Ruiz Rita Santamaria Kim Sawyer Gail Stolzenburg Alvin Terry Holly Uverity Jack Warkenthien Aimee Woodall

Chief Advisor Hank Moore Publisher’s Advisory Board Shah Ardalan Helen Callier Sonia Clayton Donna Cole John Cruise Dirk Cummins April Day Dr. John Demartini Maya Durnovo Kathie Edwards Mila Golovine Dory Gordon Greg Grant David Holt Richard Huebner Jeffrey Jones Darryl King Sandy Lawrence Craig Klein

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

Phone: 832-419-2814 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today 5380 West 34th Street, Ste 230 Houston,TX 77092 See us on the web at www.SBTMagazine.net Free APP for Android & iPhone go to your APP Store and type in Small Business Today Magazine SMALL BUSINESS Today MAGAZINE IS PUBLISHED MONTHLY BY LEGACY PUBLISHING GROUP, LLC. 5380 WEST 34TH ST., STE. 230 HOUSTON, TX 77092 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 5380 WEST 34TH ST., STE. 230 HOUSTON, TX 77092. 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.

Time to Revisit What is Really Important in Your Life

s 2014 comes to a close and we reconsider our priorities and goals for our businesses and personal lives for the coming New Year, it may be time to revisit what is really important to us.

You began your business with the idea of offering something that is unique and beneficial to mankind.

It was YOUR business and you built it from scratch for a reason. Maybe it is time to remember what that reason was. Is your plan working? Are you getting closer to those goals and dreams or (seemingly) further away from them? Are you working for your business or is it working for you! For most of us in small business, we seem to work for the business and not the other way around. If you are like Barbara and me, it’s time for you to take some time off this month and ask yourself what is really, really important. Then, have the wisdom and courage to build your life and business around that answer. Start with your business plan. If it has been over a year (or more) since you reviewed that business plan…it’s time! Will it move you forward this year? If not, change it up accordingly. Research what your competitors are up to via their websites, social media, etc. Spend some time with some of your best clients over coffee, lunch, or dinner and ask how you could improve your business to help theirs.

Put your goals and dreams on paper where you can be reminded everyday of what is most important to you and then don’t give up. No one has ever shared with us in the magazine that success came easy to them and that they immediately achieved their goals and dreams. Remember – “If there was a victory, there had to be a battle!” Just go for it! This month’s cover honoree, Tony Noun, has worked extremely hard for what he has built for himself and his family. Even though he has had setbacks that for some would have been devastating, Tony’s passion for helping others, determination to succeed, and indomitable spirit has helped him to rise like a phoenix from the ashes and become such a great success once again! You will enjoy his story. Before leaving this page, we also want to share with you our deepest thanks and appreciation of your support of our publication, talk show, and events this past year. We truly look forward to serving you in the coming New Year! May you have the happiest and most wonderful holiday and may your New Year be blessed! Good fortune and great success to you all!!! Happy Holidays! Good Reading, Good Sales, and Great Success to You All!

Steve Levine

President/Executive Publisher, Small Business Today Magazine

[ DECEMBER 2014 ] www.SBTMagazine.net 3

INSIDE DECEMBER 2014 EDITION HOUSTON

Publisher’s Column

Making a Difference in the New Year

Take Back Your Time with an Email Marketing Dashboard

City of Houston Launches Open Data Policy 16 Difference and Similarities in the Francophone World

Tony Noun - Noun Investments, LLC Success because of his Indomitable, Phoenix-like Spirit & Passion for Helping Others

Business Moving Forward From the Dirty Side of the Recession

Awakening your Entrepreneurial Spirit

Getting Organized: Sharing Space

The Two Keys to Success

Why an Effective Social Media Policy and Checklist are Essential

The 5 Secrets of a Phenomenal Business – Part 1

Dealing with Landlords… The Good, The Bad, & The Ugly - Part 2

Facing the Challenge of Financing a Small Business Startup

How Do Small Businesses Get Big Business Results? It’s Simple!

Business Networking and Culture

Financial Astrology for December 2014

Entrepreneurs Tool Box The Final Talley for 2014

“You’ve Been Served!” – 4 Pointers on Lowering Litigation Risk in Your Business

Champions School of Professional Development

Houston Minority Supplier Development Council

INSIDE

BACK COVER

Out With the Old, in With the New

[ NOVEMBER 2014 ] www.SBTMagazine.net 5

EDITORIALFEATURE

Tony Noun -

Noun Investments, LLC Success because of his Indomitable, Phoenix-like Spirit & Passion for Helping Others By Barbara R. Davis “The phoenix must burn to emerge.” - Janet Fitch

ome people think that it’s a terrible thing to have failed at something. Maybe that’s why failure tends to be more public than success. On the other hand, no great success was ever achieved without some failure. Tony Noun has worked extremely hard for what he has built for himself and his family. Even though he has had major, game-changing setbacks that would have devastated others, Tony’s determination to succeed, his indomitable spirit, and his passion for helping others has allowed him to rise like a phoenix from the ashes and become a great success once again! “Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.” - Napoleon Hill

Tony Noun has worked extremely hard for what he has built for himself and his family. Even though he has had setbacks that for some would have been devastating, Tony’s passion for helping others, determination to succeed, and indomitable spirit has helped him to rise like a phoenix from the ashes and become such a great success once again! Photo by Gwen Juarez Photography.

8 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

Born to a Christian Lebanese family in Beirut, Lebanon on December 6, 1967,Tony Noun was the youngest of six children. His father worked as a manager of a bank but tragically died at the young age of 49 when Tony was just six years old. Tony’s mom was left with the sole responsibility of taking care of all of them. Life became very arduous without Tony’s father as the bread-winner. One by one, all of Tony’s brothers and sisters got jobs, no matter their young age. When he was seven,Tony started selling newspapers on the road. His brother was working for a bakery during the day and did his studies at night. This same brother eventually became a bank manager like his father. Tony’s sisters became French teachers at a Christian university in Lebanon. As if things couldn’t get any worse, in 1975 the Syrian civil war spilled over into Lebanon and the Syrian regime took over. Then the Syrian regime began killing off all of the Christians there. Tony and his brothers joined others in the fight for their Christian faith

to protect their families and their community members from annihilation. It was such a horrible time in the history of Lebanon that over 100,000 Christian people were killed during the Syrian occupation. Things became so bad that when Tony was 12, he hid underground with his family for over 100 days, often without food or water. Sometimes great things come out of adverse situations. Ironically, it was during this time that a friendship was forged between Tony and an eleven year old girl who was also hiding underground with her family. Her name was Georgette. Things improved somewhat after 100 days living underground and eventually Tony’s oldest brother opened up five stores in Beirut where perfume, cologne, cosmetics, and beauty supplies were sold. Tony, who was 13 at the time, began working behind the counter selling perfume and makeup. Georgette would come and visit Tony at work and buy perfume and makeup from him. Later on,Tony studied at Pigier French University in Lebanon where he got a degree in accounting. Tony and Georgette’s friendship grew as time went by in spite of the war and adversity around them. Along the way, their friendship blossomed into love. They were married a month before Tony turned 19 and right after his birthday, they decided to leave the country and go to the United States for a better life and a better future. The only thing Tony and Georgette knew about the U.S. at the time was what they had seen on television or in the movies. Tony reflected, “It was always my dream to go to the United States because I knew it was a country of freedom.” “Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.” - Robert T. Kiyosaki

After getting married,Tony and Georgette decided to travel to Cypress to talk to the consulate at the United States Embassy to ask if they could go to the United States for a visit. At the time, they had just enough money to take a 30 day trip to the United States. Even though it cost approximately $900 per ticket, the only means of transportation that was available at the time from Lebanon to Cypress was on a nine hour cruise on a cargo ship that was transporting cattle and donkeys! In addition to Tony and Georgette, over 425 people were also waiting for visas, so, two days later, when Tony and his wife were given visas, he felt like he had just won the lottery! The next day, they flew to London from Cypress and then on to the United States. Tony and Georgette arrived in Houston, Texas as that was where Tony’s sister and brother-in-law had been living for eight years. A few weeks after arriving in the U.S., the immigration laws changed. The new law allowed Lebanese Christians to get work visas due to the war in Lebanon and the renewed killing of Christians. Tony and Georgette were able to

get work visas and remain in the U.S. which allowed Tony to pursue the American dream. Because of Tony’s independent and self-sufficient nature, he quickly found a job and began working as a delivery man for Mr. Gatti’s Pizza. This was a pretty amazing feat when one considers that he did not speak a word of English as French was his first language. After staying with his sister and brother-in-law for a short period of time, Tony and Georgette moved out to make it on their own. Unbelievably,Tony managed to find his way around without speaking English, without a navigation system, and without a mobile phone. He had to work three times harder than the other drivers who spoke English and were familiar with the community. With an indomitable spirit, a positive attitude, and always with a big smile on his face,Tony succeeded in doing transactions with people, taking their money, giving them change, servicing their needs, and also getting from place to place and then returning. The first two to three years in the U.S, was one of the hardest times in Tony’s life but with his eyes fixed on the prize, he always made it work. Not only had Tony been working at Mr. Gatti’s but he had also gotten a job working at one of the biggest Texaco gas stations in Houston. Never wasting time being idle, Tony stayed busy doing the dirty work, filling up coolers, and washing the parking lot. In addition, he was the head cashier at night. Four years went by and Tony set his sites on buying one of the gas stations he had been working at. Tony decided he had saved enough money and went to Lone Star Bank to ask for a loan. This was the first time Tony had ever pursued a bank loan so he asked to speak to the bank president. After Tony spoke with him, the banker approved Tony for a $300,000 loan even though he didn’t have a personal financial statement. In lieu of the statement,Tony provided him with his meager tax returns for the past three years! Fortunately, the exceptional bank president had the wisdom to truly see the type of person Tony was and believed in him enough to give him a chance. Tony latched on to his wonderful opportunity and opened Tony’s Texaco Gas Station working harder and smarter than ever before. Then after five years, Tony sold his station for a profit and used it to open up a dealership selling previously owned cars in the Northwest area of Houston servicing Spring, Klein, and The Woodlands. Tony chose to start a career in the auto business because he knew a lot about cars, including mechanics, and saw an opportunity to do something he really loved and also make money. Tony invested in some property on Kuykendahl that was topped with crushed concrete and the only structure on it was a trailer. At the time, it barely had a driveway. It took Tony two years to get a permit, open a driveway, cut the tress, put in fresh concrete, and then put up better trailers. Step by step, year after year,Tony continued making improvements and expanding his auto business. [ DECEMBER 2014 ] www.SBTMagazine.net 7

EDITORIALFEATURE

“Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

Tony began making so much money due to his great skills in advertising and marketing that he decided to open up an advertising and auto magazine business. He was quite successful in this new endeavor and was doing advertising campaigns for approximately 250 dealers in the Houston area with up to 125 employees at the time. Then, in 2008, the economy came to a screeching halt in the automotive business and hit Tony so hard that everything he had built for the last 20 years was gone. The loss included his publishing business, all four locations of his auto dealerships, and all other investment properties which totaled to approximately $7.9 million. Tony started over with a little bit of money. He borrowed $5,000, got a couple of cars, and put them back on the same parking lot of the same dealership that he had lost. It was owned by the bank and Tony leased it back for a few months and then began making money again. Tony was able to purchase that property back and additionally the two others that he lost. Tony reflected, “It was hard for me and I’m a positive person. I believe that if things happen, they happen for a reason and whatever you are hit with, if it doesn’t kill you, it will make you stronger. This is exactly what happened to me. I fell down; I got back up; I dusted myself off; and I kept going. I never asked for the government to bail me out and I never filed bankruptcy. I have now paid back my debts and have worked hard to build my business again.” “It’s not how far you fall, but how high you bounce that counts.” - Zig Ziglar

Tony’s “Partner” is his Golden Retreiver, Captain (“Cappy”). He consults “Cappy” on everything! Photo by Gwen Juarez Photography.

Tony was surprised that even though he had lost everything, things were all going his way and success was quickly coming back to him. He hadn’t counted on a thing called “karma” or “what goes around, comes around.” Throughout all of his business dealings, he believes in taking care of others first. He believes in giving people the best customer service and the best deals. He believes in giving people breaks every chance he gets just like the break that the bank president gave him on his first loan. Presently, Tony’s company has 22 employees and is doing over $10 million a year. Tony expressed, “I believe that I am one of the best small independent dealers in the Houston area. I have the experience, the knowledge, and Jesus with me. I’ve got everything, and with the Lord’s blessing, I am still here.”

After the first car lot, Tony added three additional locations. The trailers were eventually replaced with professionally built offices on the scale of a new, first-class car dealership. “It’s in my blood; I like to do everything first class. That includes how my customers are treated, with honesty and consideration,” remarked Tony.

Autoshoppers.biz is Tony’s dealership website. Even though Tony sells pre-owned cars, he is nothing like the stereotypical used car salesmen, nor is his sales team. The difference between Tony’s company and other pre-owned car dealerships is that Tony and his team truly care about their customers and

8 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

Tony leads by example. Tony advertises that they have 100 percent guaranteed credit approval. With over 30 lenders including small banks that do subprime and finance anybody with bad credit, the customer may pay a small fee but if it will help them in reestablishing their credit and getting back on the right track.

At the center of Tony’s heart and the motivation for his success is his loving family. The are (left to right) daughters Natasha and Savannah, Tony, wife Georgette, and son Tony. Photo coutesy of Tony Noun

Tony takes great effort in making sure the cars being sold are problem-free for the purchaser. Tony personally buys over 100 cars each month and runs a Carfax report on each of them, making sure they don’t have a bad history or a salvage title. He then has his certified onsite mechanics do a 26 point inspection. Next,Tony has them make sure that the car is in alignment, has all of the fluids, has good tires, and that all of the sensors are perfect. The cars are then cleaned and put up for sale. Tony believes in going above and beyond in providing the best service and that his reputation is everything to him. Always the hardest worker that one could ever meet,Tony believes in being involved in the management and the hourly business operations six days a week, Monday through Saturday from 8AM to 8PM. Tony is always looking for qualified, like-minded people to come onboard and be part of his team who can fill leadership roles as Tony expands the company. Tony reiterates, “I believe that if you work hard in your life and you help others, that you will achieve anything you want in life, this is me, and this is what I believe! “ Tony and Georgette have three children. Their first child, Natasha, was born in 1991 and two years later, their second daughter, Savannah, was born. Last but not least, Tony Jr., was born three years after Savannah. While Tony has always worked hard to have the best company, Georgette has worked equally hard to raise a beautiful family. Although Tony, Jr. is working at the dealership, one day he would like to be a petroleum engineer and Tony is making sure he gets what he wants. 15 years ago, Tony and Georgette became naturalized citizens. It was one of the proudest days in Tony’s life because he feels that the United States has given him so much and allowed him to become a better person. He states, “The U.S. has given me an opportunity to be a better father and raise a wonderful family.” As an extension of Tony’s immense appreciation of being a citizen of the U.S., it is his dream to become a public servant for his District one day and give back to this country all which he has been given. “You build on failure. You use it as a stepping stone. Close the door on the past. You don’t try to forget the mistakes, but you don’t dwell on it. You don’t let it have any of your energy, or any of your time, or any of your space.” - Johnny Cash

As a conservative Republican with strong, family values, Tony chose to run in 2014 for State Representative in District 150. A resident and businessman in the community for over 25 years, Tony started observing the decline in the area when the economy took a downward turn. He observed many businesses closing down and undesirable businesses opening in their place such as massage parlors or places where illegal activity was going on. The incumbent apparently was sitting on her laurels after she was first elected and never to be heard of again in Tony’s community. It wasn’t until Tony threw his hat into the arena did she resurface. Even then, she never offered solutions to the problems in the community, probably because she had no idea what they were! As a first time politician, it became an eye-opening experience for Tony. Instead of running a clean campaign that dealt with the issues, the obviously insecure incumbent along with her cronies chose to “dance a little sidestep” as they played dirty politics, mudslinging and slandering Tony every chance they got. Taking the attention away from the issues of which she obviously had no platform, she made a barrage of false accusations against Tony. Brazenly, she called him a crook, a thief, and a Muslim. She even had the audacity to tell him to go back to his country! Like 1.6 million other people, when the economy tanked in 2008, they all went out of business and the vast majority declared bankruptcy. Tony was not one of them. He chose to pay back everyone and rise from the ashes like a phoenix as he resurrected his business to be a success once more. As a leader, his knowledge would be invaluable to his community in helping others learn how to rebuild their businesses as well. [ DECEMBER 2014 ] www.SBTMagazine.net 9

EDITORIALFEATURE

Tony built his business from the ground up and is involved with all aspects of the transactions for his clients’ satisfaction. Photo by Gwen Juarez Photography.

Tony has never cheated anyone out of anything. He is the most generous and genuine individual one could ever meet. Tony fought to save his Christian brethren in Lebanon and now he had to fight to show that he was a Christian to the extent that he was forced to go to the Catholic Church to get a letter from his priest that corroborated that he was a Christian. And he even had to show the incumbent his baptism certificate! Tony’s answer to her and other xenophobes like her was this message: “This is my country and I’m not going anywhere! I may be an immigrant like so many others who came before me in the pursuit of freedom. I wasn’t born in Texas but I got here as quickly as I could! I am proud to call Texas my home and I will stay here for the rest of my life! I fought for my Christian faith back in Lebanon and I don’t have any problem in fighting one more time for my Christian faith again in Houston!” “Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing, and being nothing.” - Denis Waitley

Tony may not have won the election, but for a first time candidate who was slandered and attacked with a barrage of racial 10 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

slurs, a naturalized citizen who speaks with an accent and is far from the best public speaker - he did pretty darn well considering he got almost 3,000 votes to the incumbent’s approximate 7,600 votes! In spite of the outcome, Tony’s insurmountable belief that he would be the best public servant possible for his district has never faltered. He will always do things with integrity and care as opposed to a jaded politician who deals with their inadequacies by running dirty campaigns. “Only those who dare to fail greatly can ever achieve greatly.” - Robert F. Kennedy

Learning a great deal from his first race, Tony has made many new friends over the past two years. Many of them had opposed him in the previous election and spoke badly about him before they got to know Tony Noun, a man who truly cares about his community and country; a man who has a passion for helping others; a man who is in it for the purest reasons – not for money nor fame but to make a difference! Don’t be surprised to see Tony resurrecting himself again, like a phoenix from the ashes, stronger and determined more than ever before to succeed in politics and also continue growing his business so that others can have jobs and help their families.

Tony’s Best Words of Advice 1. There are a lot of risks in business; you must be strong and never let anything scare you away from going after your dreams. 2. If you work hard, have a positive attitude, give without expecting to get, and always do the right thing, you will make it. 3. Always give the best customer service and teach your employees to do the same. 4. You have to believe in yourself, keep going, and never give up. 5. You have to have a business plan and concrete ideas of how you want your business structured. 6. Always help another small business and they will reciprocate and help you. 7. Make sure your employees get their money first before you get yours. I have 22 employees; that’s 22 families. Imagine how many people depend upon me every week? You must be responsible for your employees and take care of them. 8. It is very difficult for a business to get a loan when it is a new company without a track record. It helps to find a bank that you can develop a relationship with. 9. In these days while the economy is good, marketing is the most important thing. It doesn’t matter where your location is; marketing, advertising, and using social media are the most important things you can do. As long as you advertise correctly on the internet, it doesn’t matter if you are working out of your house. You will still do well. Most of my sales from last five years came from the internet 10. Be honest and loyal to your customers. Always tell the truth. I always tell my employees, why lie? Tell the truth. Let’s make it easy on everybody. 11. Even if you fail, it is a lesson learned for you to start over again and have the opportunity to become a success. 12. If you work hard, if you’re positive and giving, and if you’re always doing the right thing, you will make it. [ DECEMBER 2014 ] www.SBTMagazine.net 11

EDITORIALFEATURE

Making a Difference

in the New Year By Rita Santamaria

nother New Year is upon us with the slate Brilliant people learn from wiped clean and new opportunities awaittheir mistakes and their ing each of us. For some people, the preachievements. Start the year vious year might have been your best year. out by listing your The many new small business owners who just started in 2014 are reliving the new changes in achievements, even those their daily routine from their prior careers. The that were good or fair but still experienced business owners are doing their reachievements. view of career goals and business plans of 2015 a solution to those problems. The next morning and wondering how different this 2015 will be. you already have a direction to fix the problems During this new month, new year, and new in- and during the night you have reassured yourself novative time, I recommend we all become stu- there is a workable plan. Learning from our misdents again and look at the New Year as a time takes is self-discipline. The self-discipline to nevfor engaging in conversations, blogging, Facebook er do that mistake again is what we are striving updating, texting, reading, researching, and formu- for. Mistakes can be as simple as wasting time, lating your new 2015 direction. But first do some burning bridges, speaking without respect for the other person’s dignity, and talking more than lisreflection. tening. Self-discipline is as simple as doing tasks Brilliant people learn from their mistakes and that need to be done. their achievements. Start the year out by listing It’s time to develop your 2015 marketing your achievements, even those that were good or fair but still achievements. Achievements are plan, business plan, and set your budget. Do it the sales you made in 2015. How did you win now. Implement the budget and the marketing over that client to choose you out of all of the plan. Have the initiative to stick to your plan evother service providers who do what you do? eryday. When daily conflicts get in the way of Write down the direction and discussion you your daily plan, do the immediate need and then had with those clients that got them to say yes go back to the marketing plan implementation for to you. That conversation or presentation you today. Be aware of your attitude towards your gave worked. Do it again and again with the next career. If you love what you do, others see it clients. How did you find that client in the first demonstrated through your actions and not only place? Go to that place often and do those activ- your words. ities again. It obviously worked to bring you a tarYou are the captain of your voyage and this is get rich market. Study your own habits that have placed you in the right place at the right time. Do your life, your one time to be you and experience every good thing. Try to make everyday a day it again and again. that will allow you to look at the end of 2015 with Some of our days last year were not so pro- your list of successes being more numerous than ductive. Reflect on why they were not produc- the years before. tive. Did you waste good hours in the day with Rita Santamaria is the owner of Champions School of Real frivolous activities? Why? Did you stay awake at Estate which was founded in 1983 and is a five time national night worrying about something that tomorrow award winning school. The Champions School of Professional would fix? Sometimes it pays off in hours of sleep Development was founded in 2012 and has grown in a short time to be a leading development venue for individuals and lost if one simply stays awake and writes down companies. For more information, visit their websites at www. the concerns on one’s mind and then writes out ChampionsSchool.com or www.TheChampionsProfessional.com.

12 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

EDITORIALFEATURE

Take Back Your Time with an

Email Marketing Dashboard By Craig Klein, SalesNexus.com CEO

ome promise that marketing automation is a “set it and forget it” way of doing business. Unfortunately, the idea of setting up an email marketing programming and then walking away from it to spend time with the family is a pipedream.

There is a way to take back your time and spend more of such a precious resource doing what you want to do. It’s called “set it and watch the dashboard metrics” to make adjustments to your email automation.

Dashboards Save You Time and Worry

Sure, simple observation and logic will also give you the information you need – eventually. You can pay attention to when revenue goes up and down. With reasonable observation and your experience in the business, you can probably retrace the revenue fluctuations to events in your marketing or staffing. The human element of observation is critical to finding the right mix of marketing and sales activities. No sales automation system can take away the need for experienced management and talented salespeople. What it can do is give you specific numbers tied to specific activities.

Without the dashboard monitoring giving you real time metrics on what creates revenue, you will spend way too much time trying to figure out what to do next. If you aren’t lucky about find- Creating content for an email campaign ing the magic messages for your may be considered an “arts and crafts” email campaigns, you may end type of exercise. However, email up throwing your hands in the air, marketing affects the bottom line truly believing that email marketing automation does not work. when it is brought into the world

With these numbers, you are able to react quicker and more accurately to the changes of the marketplace. The time and mental anguish you spend about where to allocate money and staff time are more easily determined. of math and science. Email Marketing as a Science When you let the numbers speak Creating content for an email campaign may be considered an “arts for themselves you will free up time. and crafts” type of exercise. However, email marketing affects the bottom line when it is brought into the world of math and science. Implement Dashboards Slowly Don’t get so excited about the data that you jump into measurBefore we had the ability to set up dashboards to monitor ing lots of unimportant things. According to Jim Lenskold, a marthe numbers, a lot of marketing (including email) was based on keting profitability expert, “You should prioritize when and what time-tested direct mail results. While direct marketing has always to measure based on the answers you need to make decisions been tested and proven with numbers, the numbers were gener- that will improve your profits.” al and the task of measuring was forever time consuming. Take a close look at what you want to accomplish. Trace those Scientific Method of Email Marketing outcomes back a step at a time to uncover what metrics you Wikipedia defines scientific method this way: “The scientific need to know that you are on track. Set up your dashboards to method is a body of techniques for investigating phenomena, ac- monitor those specific activities. quiring new knowledge, or correcting and integrating previous knowledge.” It goes on to say that, “Theories in the scientific When you use metrics to know what they want, email marmethod must be based on measurable evidence.” keting is welcomed by sales leads, active prospects, and current customers. Get the message right, continue to use marketing You know your company, products, benefits, and customers metrics, and you will find more time to do the things you want to well enough to develop theories about what will be useful to do while also seeing revenue growth. them. It is only when you implement dashboards that you can get the measurable evidence that your theories are correct. You get Craig Klein is the founder/CEO of SalesNexus.com which is a leading provider of the data in a time-effective manner so you can adjust as needed CRM, email marketing, and lead generation solutions for business-2-business sales to improve results. teams. 14 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

EDITORIALFEATURE

City of Houston Launches

Open Data Policy By Annise D. Parker, Mayor of the City of Houston

n our continued commitment to transparency and government accountability, the City of Houston has instituted an Open Data policy to allow for greater public access to City data. Houston joins a growing number of local, state, and federal government agencies across the country that are putting in place formal Open Data policies.

Under the Open Data Administrative Procedure, an Enterprise Data Officer (EDO) and an Open Data Advisory Board will be appointed to work with City departments to catalog datasets, establish standards, and refresh guidelines for the City’s open data portal which hosts government information in open, machine-readable formats while also ensuring privacy, confidentiality, and security. The EDO and Advisory Board are also responsible for working with the public to identify important, high-value datasets. First and foremost, this is about increasing transparency. It is also about citizen engagement and increasing the pace of innovation in our City. We want to engage the talents of our strong science, technology, engineering, and math community to help us solve the challenges of the 21st century. This portal will enable civic technologists, entrepreneurs, innovators, researchers, and others to use the data to generate new products and services as well as build businesses and develop community resources in partnership with government to better serve the public. We want to know what the public wants to see that isn’t already available. This is not a new concept to the City of Houston which already has interim and mapping centric portals with more than 220 publicly accessible datasets. The City is also fortunate to have one of the largest civic technology communities in the country and benefits from a strong partnership with Open Houston, a local nonprofit, open data advocacy group that organizes hackathons and other events to develop useful solutions for the public.

At the City of Houston’s 1st Hackathon, held in May 2013, we announced the launch of the City’s Open Data Initiative. The new Open Data policy, in combination with continued civic innovation events such as hackathons and monthly civic hack nights, enable the City to partner with the community in taking advantage of new technology platforms, respond to community data interests, and increase transparency and accountability in local government. The City’s Open Data Initiative ensures that we continue to move towards Government 2.0. Citizens expect their government to work for them but they are also often willing to propose ideas and solutions to help us tackle our diverse challenges. I’m immensely proud of our innovative community for stepping up over the past few years to help civic innovation thrive here in Houston. This is an important first step. The City has implemented three projects through its civic innovation efforts – Budget Boot Camp, 311 Performance Dashboards, and City Fee Schedule. In addition, the City of Houston’s IT staff has also benefited from the exposure to new technologies and different development techniques. We’re really excited to see the City’s commitment to open data. Just by publishing up-to-date data, the City instantly engages a community of people who will put it to good use. Serving since January 2, 2010, Annise D. Parker has been elected as the Mayor of Houston three times. She is Houston’s 61st Mayor and one of only two women to hold the City’s highest elected office. In 2010, Time Magazine named Mayor Parker one the 100 most influential people in the world. Mayor Annise Parker is a Steering Committee Member of the C40 Cities Climate Leadership Group and serves on President Barack Obama’s State, Local, and Tribal Leaders Task Force on Climate Preparedness and Resilience. She is also on the advisory board of Small Business Today Magazine. For more information, go to www.houstontx.gov/mayor/. [ DECEMBER 2014 ] www.SBTMagazine.net 15

EDITORIALFEATURE

Difference and Similarities

in the Francophone World By Ludmila (Mila) Rusakova Golovine

hen one thinks of the French language, a series of recognizable images come to mind: the Eiffel Tower, the Arc de Triomphe, and the Champs-Élysées. All of these places are in France, specifically Paris. The idea of French and France being one and inseparable is a common one in today’s world. Nevertheless, French is a widespread language due primarily to France’s colonial past and the language’s literary and philosophical legacy. It is spoken as a mother tongue on almost every continent including its mother country in Europe, French Guyana in South America, Quebec in North America,Vietnam in Asia, and numerous countries in North and West Africa. Currently, there are over 220 million French speakers in the world. This situation promises much opportunity to those with knowledge of the French language; however linguistic knowledge alone will not be enough to be successful in the francophone world. You must be aware of the subtle differences between francophone cultures.

The first francophone culture you must be familiar with is, of course, France. Business interaction in France is fairly straightforward. However, there are some aspects of which one must be cognizant. Typically, business attire in France will be formal with dark suits. Similarly, women will usually dress in dark or neutral colors. Greetings are formal as well. Handshakes are usually done between men. Sometimes women will give the double kiss on the cheek called the “bise.” This is not done as often with foreigners but you should be prepared if it happens. Also, business cards are traditionally exchanged. Please be sure to have your card translated on one side in French to show respect. Communication with the French is fairly direct and straightforward. There is always maneuvering in negotiations but, for the most part, the answers to your questions will mean exactly what they say. Business in Quebec is very similar to the French style although it is still somewhat different culturally. It is similar in that the communication is still fairly direct even though the business attitude will be somewhat more relaxed than in France. This is due to the English influence over time. Also, the “bise” is still utilized by the Quebecois except it is referred to as the “bec” or beak. Moreover, it is usually only one kiss on the cheek instead of two as in France. There is one crucial difference which you must take into consideration. The usage of French is heavily enforced in Quebec. Consequently, if you want to do business there, you will most likely need an interpreter. If so, please ensure that your interpreter knows French Canadian and not just French. Although the two languages are quite similar, there are 16 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

many subtle differences which have arisen due to the geographical distance from France and the influence of the English language. A French Canadian interpreter should be employed to avoid any miscommunication. Business in North and West Africa is a little more complicated than in France or Quebec. These countries adopted the French language during France’s colonial era but have retained much of their original culture. In North African Morocco, business may be conducted in French but the people have kept their original Arabic customs. For example, Moroccans prefer to deal with people who they know. Therefore, business ventures are typically slower to start as they take more time to develop since the Moroccans will wait until they are comfortable with their counterparts. Another aspect of North African culture that is different from the other francophone countries is the concept of “hshuma” or shame. A person’s honor is very important to the Moroccans. If they are shamed, they could be ostracized from their society. Consequently, they will say or do anything to avoid it. Due to this situation, very often they may exaggerate what they will do in a business venture or be overly optimistic in their dealings with others. If you want to be sure that they intend to do what they say they are going to do, you should have them say it in front of a third party. In this way, they will be sure to state only what they will do in order to avoid “hshuma.” West African countries, while still francophone, have retained their original cultural aspects as well. In Senegal, for example, the communication style is much less direct than in France. Usually, the Senegalese will employ proverbs and metaphors instead of direct speech. This is done to avoid negative subjects or to explain something unpleasant. It is crucial that you display understanding and flexibility when confronted with such a different way of communication. The francophone world is both vast and promising. The economy of almost every francophone country is growing and giving rise to greater business opportunities. Nevertheless, knowledge of the French language will not be enough to succeed in such a multicultural area. With a modicum of research and cultural flexibility, you should be able to thrive in the francophone world. As a graduate of the Wolff Center for Entrepreneurship at the University of Houston, Ludmila (Mila) Rusakova Golovine, Founder, CEO, and President of MasterWord Services, Inc., started her company with a vision of seamlessly connecting people across any language, any time, and any culture. Mila can be reached by email at mgolovine@masterword.com, by phone at 281-589-0810, or visit her website at www.masterword.com.

EDITORIALFEATURE

Business Moving Forward From

the Dirty Side of the Recession By Hank Moore, Corporate Strategist™

he economy and business climate are now on the dirty side of the recession. Recognizing the damages done will result in healthier run companies for the future.

This is comparable to what is called the dirty side of a storm, hurricane, or other weather-created disaster. During those clean-up periods, the infrastructure rebuilds and optimistically moves forward by correcting certain damages done by the storms. Signs are that our economy has somewhat recovered from the second worst recession in history. Many companies kept their heads in the sand during the economic downturn, fully intending to return to business as usual. What happened in the recession was that many businesses went under. In my professional opinion, 25% of those that faded away probably should have. A great many frail companies were not on firm foundations and had abdicated their abilities to improve and serve customer bases. As fallout from the recession, many people were thrown into the workforce. Many fell into jobs for which they were not suited. Many downsized and out-of-work people were forced to reinvent themselves. Many became consultants of one sort or another. Many fell victim to frauds and scams. Services and websites sprung up to capitalize upon the avalanche of new entrepreneurs. Some sites offered the platform to become a consultant with a national firm by paying them subscription fees. The already inflated world of “reputation management” websites lured people into buying advertising in order to create the facade of being a consultant.

Distinctions must be drawn into three consulting categories and percentages of their occurrence in the marketplace:

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1. Vendors selling products which were produced by others. Those who sell their own produced works are designated as subcontractors. (82.99%) 2. Consultants conducting programs designed by their companies, in repetitive motion. Their work is off-the-shelf, conforms to an established mode of operation, contains original thought, and draws precedents from experience. (17%) 3. High level strategists creating all knowledge in their consulting. It is original, customized to the client, and contains creativity and insight not available elsewhere. (.01%)

As one who distinguishes past vendors and subcontractors, there are six types within the 18% which constitute consultants with their percentages in the marketplace:

1. Those that still lead in an industry and have specific niche expertise. (13.5%) 2. Those that were downsized, out-placed, or decided not to stay in the corporate fold and evolved into consulting. (28%) 3. Out of work people who hang out consulting shingles in between jobs. (32%) 4. Freelancers and moonlighters whose consultancy may or may not relate to their day jobs. (16%) 5. Veteran consultants who were trained for and have a track record in actual consulting. That’s what they have done for most of their careers. (2%) 6. Sadly, there is another category - opportunists who masquerade as consultants, entrepreneurs who disguise their selling as consulting, and people who routinely change niches as the dollars go. (8.5%) Clients are confused and undereducated, not able to discern the “real deal” consultants from the hype. Enlightened clients hire real consultants and get great value, as opposed to companies who fall prey to under-prepared resources.

EDITORIALFEATURE

There are five generations in workforce; more than any time in our history. Each generation has different working styles and must be considered according to their attributes. Age discrimination for workers over 40 is rampant and cruel. Workplace illiteracy is higher than ever before. 50% of employees in the business world are considered functionally illiterate. Society must not be lulled into a false sense of security right now. The recovery phase of the recession has been steady and real. Much of the damage was done and will take years to fix. This could cause the next recession. I believe that small business is resilient and will try its best to stay on firm ground. Wise entrepreneurs will bring in qualified mentors, as opposed to “wanna-be” consultants. Cool heads will prevail; small business will recover and prosper. Small business has learned many lessons from the recession. While some will still fight change and adhere to the same processes that got them into trouble, I see great opportunities for forward-focused businesses.

Paying attention to quality can realize:

• Lower operating costs. Research shows they can be cut in half. • Premium pricing for preferred goods/services. • Customer retention. • Enhanced reputation. • Access to global markets. • Faster innovation. • Higher sales. • Higher return on investments. The biggest source of growth and increased opportunities in today’s business climate relies on the way that individuals and companies work together.

I believe that small business is resilient and will try its best to stay on firm ground. Wise entrepreneurs will bring in qualified mentors, as opposed to “wanna-be” consultants. Cool heads will prevail; small business will recover and prosper. It is becoming increasingly rare to find an individual or organization that has not yet been required to team with others. Lone Rangers and sole-source providers simply cannot succeed in competitive environments and global economies. Those who benefit from collaborations rather than become the victim of them will log the biggest successes in business years ahead. Just as empowerment, team building, and other processes apply to formal organizational structures, independents teaming together can likewise benefit from the concepts. There are rules of protocol that support and protect partnerships and have a direct relationship on those who profit most. Professionals who succeed the most are the products of mentoring. The mentor is a resource for business trends, societal issues, and opportunities. The mentor becomes a role model, offering insights about their own life-career. This reflection shows the mentee levels of thinking and perception which were not previously available. The mentor is an advocate for progress and change. Such work empowers the mentee to hear, accept, believe, and get results. The sharing of trust and ideas leads to developing business philosophies.

Hank Moore has advised over 5,000 client organizations including public sector agencies, small businesses, non-profit organizations, and 100 of the Fortune 500. Contact Hank by phone at 713-668-0664, by email at hankmoore4218@sbcglobal. net, or visit his website at www.hankmoore.com.

[ DECEMBER 2014 ] www.SBTMagazine.net 19

EDITORIALFEATURE

Awakening your

Entrepreneurial Spirit By Dr. John Demartini

here are two elements that are wise to factor into the entrepreneur adventure -you and the people who you want to serve. The more you fulfill your own values, the more you will endure whatever it takes to succeed. The more you fulfill other peoples’ values, the higher the probability that you will succeed. So being an entrepreneur involves finding the niche in your life of doing something that you love to do that actually fills a need for other people. Now, there are all kinds of niches. If you really care about humanity, you need to be on the lookout for niches in the ecosystem of entrepreneurship. Niches are places where you see a need that nobody seems to be addressing. It can be a completely novel thing that has never been thought of before and completely innovative. An entrepreneur is an innovative individual or an inventive person, either inventive with technology or innovative with ideas or services. They find a niche that nobody seems to have addressed or they grab a spread that somebody has addressed but that they feel they can do better and in a more efficient way. So entrepreneurship is an absolutely essential evolutionary component of the economy because it’s constantly creating a predator/prey system for any niche that’s not being addressed. It’s constantly looking for more effective and efficient ways of filling needs. The entrepreneur is really a person who cares to fill the needs – and that could be something novel and new or a niche that somebody already has but it is slumbering, inefficient, or outdated. The entrepreneur

So entrepreneurship is an absolutely essential evolutionary component of the economy because it’s constantly creating a predator/prey system for any niche that’s not being addressed. It’s constantly looking for more effective and efficient ways of filling needs. has the opportunity to come in and do it more efficiently and at a lesser price. Richard Branson is known for going out and finding dinosaur companies that overcharge people with a big brand name and charge too much because of the brand name. He and entrepreneurs like him go in and offer to do the same thing for a third of the price. Now that’s a niche. It’s not a new niche; it’s an established niche that the entrepreneur is grabbing a market-share in because they know they can beat the price and that they can be more effective and efficient. Entrepreneurs are dedicated to efficiency and are looking for innovative and inventive approaches to filling niches in the marketplace. There’s no lack of money, once you find a niche of service. Now the person who has the biggest vision and cares the most about humanity is going to be looking for the biggest niches; ones that provide services to the most amount of people with the biggest spreads.The real entrepreneur is constantly looking for that.

20 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

One of the signs of an entrepreneur is that they are looking for opportunities. Now, if you don’t have a value on building a business, refining a business, or it’s not high on your value system, you won’t see opportunities and grab them. Every individual lives by a set of values, a set of priorities, things that are more important to least important. Whatever is most important to them, they want to fulfill the most. If you go up to somebody and help that person fulfill what’s most important to them, what some call their “dominant buying moment”, you end up with the highest probability of selling. If it’s low on their values and you try to sell it to them, it won’t mean enough to them. You have to establish a need before you can offer a service. If there’s no need and no void, then there’s no sale. So you need to find their highest value which is their highest void. Whatever they perceive is missing most becomes their dominant, most important buying void. If you find that, you have the highest probability of fulfilling it. If you’re not clear about your values, you’re not clear about what people want in their values and you haven’t established those values. Becoming an entrepreneur can be very daunting. You have to care about other individuals and yourself equally. And the one individual is you and the many individuals are the customers out there.

Dr. John Demartini is a human behavior specialist, educator, author, and the founder of the Demartini Institute. Visit his website at www.DrDemartini.com.

EDITORIALFEATURE

Getting Organized:

Sharing Space By Holly Uverity CPO®, Office Organizers

n today’s business world, it’s not uncommon for people to share tasks and spaces and to work closely with their colleagues. So what happens when the organizational styles of the two people don’t mesh? What do you do when you share office space with someone whose organizational style is very different from your own? What if you feel more comfortable working in a clear, clean space with minimal clutter and your officemate, deskmate, or spouse is the opposite? How can two opposing styles of organization not only work together but be productive? Is it fair to either of you to ask the other one to change? The first step always is communication; when you have an honest conversation about sharing space with someone, you may discover that your differences could simply be a difference of priorities. Let’s assume that your officemate’s habit of dropping the mail on any given surface makes you crazy because you can’t ever find your mail. If you have a conversation about how the mail is delivered, you may each discover that a) the mail is more important to you than it is your officemate and/or b) that your officemate drops it anywhere there’s space because he never knows what to do with it. The solutions in this situation can be pretty simple – maybe you and your officemate agree that you’ll get the mail from now on or you may simply choose a specific place to put the mail and your officemate agrees to put it there consistently. Another conversation you can have as you begin working together is to define clutter. You may think clutter is anything that’s on a desk other than what is being worked on at that moment and your officemate may think clutter is anything on the floor; these are very different definitions of clutter. By talking about your own definitions of clutter, you can come to a mutual understanding and agreement. Your style may be to have only one thing out on your desk at a time yet your officemate may work best if he

22 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

has several files out at once. What you define as clutter, your officemate defines as a work in progress. Your officemate may not understand that seeing clutter anywhere can be distracting to you and cause you to lose focus. Alternatively, you may not realize that for your officemate, a clear space creates anxiety, which does happen with some people. Agreeing on definitions of working styles as well as definitions of clutter can be a great first step in working better together. If your officemate’s clutter is spilling into your area and it’s causing problems, another conversation could be about physical boundaries. You and your officemate can create literal boundaries and commit to keeping your own physical areas as agreed upon. If you share a common table or workspace, for example, you can create areas in which it’s okay to have a certain amount of clutter and areas where it’s not okay. Along with creating boundaries, you and your officemate can also create a written checklist detailing who is responsible for which areas and when. It can be as simple as a list of shared tasks that need to be done and a schedule of who’s responsible for completing the tasks. The list and agreement need to be reviewed on a regular basis, especially in the beginning, and then tweaked as needed. When people make a commitment to each other and take personal responsibility and ownership for tasks and spaces, they are more likely to get those tasks done. The key to sharing space is communication, followed by understanding. It’s easy to blame someone else for issues that affect you both, however, it’s more productive to honestly communicate, without anger or resentment, about the issues and co-create the solutions. 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.

EDITORIALFEATURE

The Two Keys

to Success by Three-time Olympian Ruben Gonzalez

ll my life I’ve been a student of success. Over the years I’ve read hundreds of books and listened to thousands of tapes on success. Then, I listened to and did everything my Olympic coaches told me to do.

you willing to do whatever it takes to make your dream a reality? Are you willing to read the books, listen to the tapes, attend the seminars, associate with the right people, and disassociate yourself from the wrong people?

After all of that, what I learned was that success is pretty simple. It comes down to this: you have to find something you’re good at and passionate about, an arena you are suited to play in, you have to have the courage to get started, you have to have the courage to not quit, and along the way you have to have the attitude that you will be willing to do whatever it takes for as long as it takes to get the job done.

If you’re not, you’re fooling yourself because your dream will not fall on your lap. You have what it takes to realize your dream but it’s going to take EVERYTHING you’ve got!

Success is simple but it’s not easy. It’s hard to do all that. You have to be mentally tough to pull it off. You have to develop the “I will until” attitude of winners. Vince Lombardi said that your body will withstand almost any amount of punishment. It’s your mind you have to convince. By the end of this year you should be much more mentally tough than you ever imagined you’d ever be. You should be taking bigger risks and winning more personal and public victories than you ever imagined. Everything Olympic athletes are taught in their mental training is designed to do two things: to increase their self-belief and to fuel their desire.You see, the coaches know that if you believe something is possible, you’ll have the courage to get started. And if you want something bad enough, nothing will make you quit. If you couple self-belief and a burning desire with a great attitude and a strong work ethic, and if you surround yourself with winners who help you and encourage you, success is just a matter of time. Do you have a dream that takes your breath away? A dream that you’re willing to fight for? Are

In case you haven’t figured it out yet, this is a real success column. It’s not a touchy-feely, makeyou-feel-good column. You deserve the best so I won’t give you a bunch of candy-coated stuff that won’t get you anywhere. The reason the road to your dream is a tough one is because the purpose of the dream is to bring out the best in you, all of your hidden gifts that you don’t even know you possess. You have to make a quality decision that you will become the type of person capable of making your dream happen. John Wooden, the legendary UCLA basketball coach said, “Success is the peace of mind that comes from knowing that you did your best to become your best.” What will you do today to earn the feeling of peace of mind that you did your best today to become your best? Write it down and DO IT NOW!

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. [ DECEMBER 2014 ] www.SBTMagazine.net 23

EDITORIALFEATURE

Why an Effective Social Media

Policy and Checklist are Essential By Mark Murrah

here’s no denying it, social media is an integrated part of the way we do business today. For businesses of all sizes, social media platforms like Facebook and Twitter have been proven to have a great return on investment, not only for marketing purposes but for a business’s connection with its current and future customer and clients. Ford, for example, began marketing its Fiesta model over a year in advance before entering the US market by using social media. The YouTube promotion alone generated 6.5 million views and approximately 50,000 non-Ford drivers requested information about the vehicle. When the vehicle finally went on sale, Ford sold more than 10,000 in the first week.

harassment. • Use plain language. Are employees allowed to use social media on company property? Yes or no? o Property includes physical equipment as well as electronic information and communication systems. • If it is on the internet, it is not private. If an employee uses company property and violates policy they can and will be disciplined according to company policy. • Being an employee means loyalty. Even if they are using their personal account they can not post confidential company information or bad-mouth on social media platforms. This would be in violation of their loyalty agreement. The Internet Doesn’t Forgive and It Never Forgets o Make it clear that violating their confidentiality agreement in Despite the obvious benefits of a strong social media presence, any way, including social media, has serious consequences. there are inherent risks. A mistake made on the internet is an es pecially detrimental one. You can’t ever really delete the mistake. 2. Your employees are a direct representation of your business. The illusion of delete buttons and undo functions on the web has The reality is that the people you hire and put your name on are been debunked, particularly by Twitter. a reflection of the kind of business you run, at least to your customers and /or clients. Promote a positive image by: In 2012, KitchenAid was caught in a Twitter scandal when one of their employees posted an offensive tweet about President • Prohibiting defamation using social media. Obama’s late grandmother. Instead of using their personal handle, • Inform employees they should respect customers, clients, they used their KitchenAid handle and in Twitter-speak, the embusiness partners, etc. by avoiding offensive postings (i.e. ethployee sent this message: nic slurs, sexist comments, obscenity, etc.) • Include post-employment obligations not to denigrate the “Obamas gma even knew it was going 2 b bad! ‘She died 3 company or any affiliates. days b4 he became president.” • Again, social media harassment policy of fellow employees or any company affiliates should be consistent with any existing Although Kitchen Aid attempted damage control by deleting workplace harassment policies. the post and apologizing, the post had already been retweeted • Ensure you are not violating employee rights under the First and gone viral. This instance is cited as one of the worst social Amendment, NLRA, or whistleblower laws. media mistakes in history. Your business should avoid ever being in such a position. 3. If you expect your employees to know it, you need to train them. People make mistakes; however, providing your employees Three Things You Need to Create a Successful Social Media Policy with the appropriate training can greatly reduce the number and 1. Develop a stand-alone social media policy. You might think severity of these mistakes. it is common sense but it’s not. Developing a stand-alone social media policy that defines appropriate employee use of social media is critical. This should include: • The company’s expectations of any employee using social media. • Anti-harassment policies should extend to social media. That means the response to traditional workplace harassment on the part of the company should be the same for social media 24 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

Mark Murrah is a Partner at the law firm of Murrah & Killough, PLLC (Houston’s Business Lawyers). The office is located at 3000 Weslayan, Suite 305 - Houston,Texas 77027. For a complimentary Social Media Checklist, an invaluable tool to help tackle and simplify the daunting task of developing an effective social media policy, contact Mark by phone at 281-501-1601 or by email at mmurrah@mktxlaw.com.

EDITORIALFEATURE

The 5 Secrets of a Phenomenal

Business – Part 1 By Howard Partridge

“The secret is the system.” –Michael E. Gerber n 2011, I had the pleasure of helping Tom Ziglar, son of American legend the late Zig Ziglar, create a powerful business assessment for Zig Ziglar’s last book “Born to Win” which Tom co-authored. As we began to flesh out the parts that every phenomenally successful business needs to have, we settled on five specific areas of the business.

Secret #1: A Phenomenal Marketing System

Marketing is everything you do to attract prospects to your business. Notice that I said a phenomenal marketing system. The marketing of most small business owners is poor. Marketing is the key to business growth. Without customers, you have nothing. You can do a wonderful job but if you don’t have enough customers, nothing else matters. So, you want to have not just good marketing but phenomenal marketing. What is phenomenal marketing? Marketing that is remarkable – extraordinary; outstanding. Phenomenal marketing creates experiences that engage, educate, and build a sense of belonging.

This system includes answering the phone, using phone scripts, responding to an email opt-in, doing presentations, and so on. Once the prospect has actually purchased something from you, they are now your customers. Many times you may not need more prospects but you need to take better care of the leads you get. Is your phone answered live? Is your phone answered in the most professional way possible? Do prospects and clients have a great experience when they call your company? Are your closing ratios what they need to be? Do you consistently make the add-on sale? Do you have proven scripts for your people to follow so that you aren’t the only one who can close the “big deals”? Do you have phenomenal on-site sales materials? How effective is your response to internet leads? Increasing your closing ratios and your job averages can have a big impact on your business.

Secret #3: A Phenomenal Operations System

“Operations” is everything you do to service your customer, patient, or member. The level of service you provide determines whether they will ascend the “loyalty ladder” and go from customer to client.

And you want to have a marketing system. Once you determine what phenomenal marketing looks like in your business, you want to figure out how to duplicate it without you having to be involved in every detail.

What’s the difference between a customer and a client? A customer buys something solely on the price, value, or special but doesn’t have any loyalty to you. A client wants a consultant, an advisor, or a partner, so to speak, to “take care of that area of their lives.”

Here’s an example: Let’s say that you determine that mailing a newsletter to your database helps you bring in more business. You write a procedure on how to compile the newsletter and get someone else to do the mechanics of it.

You wouldn’t choose a doctor based on price, would you? Or how about finding the cheapest accountant or attorney? If you do, you’ll get what you pay for. Clients are loyal; they want a relationship; they want information; and they refer others like them.

You might still write it but let someone else do the lay out, print it, mail it, get the database together, etc. Then put the task on a calendar so it happens without your direct supervision.

Do you have service systems in place so that your clients consistently get the most phenomenal service experience possible every time and without you having to be personally involved?

Secret #2: A Phenomenal Sales System

Next month, I’ll share the next two secrets and a powerful graphic to assess your own business systems.

“Sales” is everything you do to turn a prospect into a paying customer. Once you generate prospects through marketing, the sales system is what turns them from prospects to customers. Remember, you want a phenomenal sales system.

Howard Partridge, President of Phenomenal Products, Inc., is the author of 7 Secrets of a Phenomenal L.I.F.E. and 5 Secrets of a Phenomenal Business. You can contact Howard by phone at 281-634-0404 or visit his website at www.HowardPartridge.com. [ DECEMBER 2014 ] www.SBTMagazine.net 25

EDITORIALFEATURE

Dealing with Landlords…

The Good, The Bad, & The Ugly - Part 2 By Jeffrey D. Jones, ASA, CBA, CBI

n the August 2014 issue of SBT Magazine, Part 1 of “Dealing with Landlords” listed the major considerations that are often found in property leases. This article, Part 2, will address in more detail some of those provisions that can be negotiated for your benefit. Lets face it; leases are all slanted to the benefit of the landlord. However, many of the lease provisions can be negotiated to be less onerous for the tenant. Typically, you will be dealing with a leasing agent who works for the landlord or a landlord’s management company when negotiating a new lease. Sometimes, these people have the authority to make changes to their standard lease and sometimes they will need to get permission from the landlord to make changes. The lease provisions can vary greatly depending upon the type of property you are leasing such as a free-standing building, space in an office building, a business park, a warehouse, a shopping center, or a shopping mall. There are many common elements to property leases but there can be some unique elements depending upon the type of property and the use of the property. Some of these elements can be negotiated and some can not. The following information will summarize some of the important lease provisions that can often be negotiated.

The lease provisions can vary greatly depending upon the type of property you are leasing such as a free-standing building, space in an office building, a business park, a warehouse, a shopping center, or a shopping mall. Rental Rates

The rental rate will often vary depending on the amount of space you want to lease. Major tenants in a multitenant property will often get the most favorable lease rates. Smaller tenants typically pay higher rates to offset the lower rates of the major tenants. Landlords will often allow free rent for a new tenant for one to three months to give the tenant an opportunity to get their business started. Sometimes, landlords will want to put this so-called free rent on the back end of the lease wherein the tenant has to pay this rent at the end of the lease or prorate lease payments to include the cost of the free period. You want to avoid these provision when possible. If possible, check with other tenants in the property or nearby properties to see what they are paying and use that information to negotiate the best lease possible. Term of the Lease Negotiating the best lease possible can make the difference Most landlords prefer to enter into leases with a 3 to 5 year term. between your business thriving or dying. I often recommend to Owners of distressed properties will sometimes consider month business owners that they hire a real estate broker who specializto month leases or a one year lease; however, the best rental rates es in representing tenants for space. This specialist will be familiar can be negotiated with lease terms of 3 to 5 years. It is not un- with market rents and the terms and conditions that can be necommon that there will be lease rate increases in each year of the gotiated with the landlord. Typically, the landlord pays the brolease. It may be possible to negotiate for a fixed rate depending ker fee, even when the broker is actually representing the tenant. upon the landlord’s need for a tenant. Landlords are often re- Furthermore, I recommend that you have a real estate attorney luctant to give lease options to renew the lease for an additional review a proposed lease before you sign it to ensure there are period of time. When they are willing to give a lease option, it will no provisions that would jeopardize you and your business during most always have a provision that the original terms and condi- the term of the lease. Spending some money upfront to ensure tions will extend into the lease option period except that the rent that you have a good lease can often save you thousands of dolwill be at the then market rate. At best, landlords will sometimes lars and many headaches during the term of the lease. agree to a fixed rental rate for the option period; however, it will most always be at an increase over the original lease rate. The In next month’s article, “Dealing With Landlords”, Part 3 will reason for this is because the rental income of the property is address additional lease provisions to help you obtain the best one of the basis for the value of the property. If a landlord were lease possible. to give a 15 year lease, then the value of his property is the same Jeff Jones is the President of Certified Appraisers, Inc. and Advanced Business Brokers, today as it will be for 15 years. Rent increases enable the value of Inc. located at 10500 Northwest Freeway, Suite 200, Houston,TX 77092. He can the property to increase. be contacted by phone at 713-680-3290 or by email at jdj@certifiedappraiser.com. 26 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

EDITORIALFEATURE

Facing the Challenge of Financing a

Small Business Startup By Bruce Hurta

ou have a dream to start a small business. You finally have a business plan which you think will work for you. You even have some savings for seed capital in the business, but it is not enough to keep you going until you start making a profit and have the business pay for its continued growth. Where do you go to source more funds for this project? If your ideas are sound and if the business plan has enough research and facts included to make it believable, you are off to a good start. All you need to do is find an investor who understands and believes in your business plan to buy into it. The problem, however, is that investors want a share of the business which you feel may not be proportionate with their investment. Can you borrow the money? The answer is “yes” if you find a small business lender who finds your plans suitable in accordance with five basic categories. The business lender will first look at the amount of your investment in the business compared to what you expect from the lender. That lender is determining if your level of investment is appropriate for the lender to invest their funds and assume the risk of success with you. Unfortunately, “adequate capital” can be different for different business lenders who have different appetites and expertise. The small business loan approval process is a mixture of science and art. No lender can absolutely predict the future. They can only evaluate the five measures of business success in relation to one another and base it upon their experience and statistics with business failures and loan defaults. The equity a borrower has in the business is their “skin in the game” and the amount must be reasonable in relation to the other four underwriting criteria. The second predictor of business loan repayment ability will be an analysis of the future cash flows of the business. This is where the startup business has a large disadvantage compared to an existing business with a track record. The startup business owner must prepare a business plan and financial projections to predict the flow of cash in their business. They must predict the cash needs prior to breaking even with a profit and the small business lender must believe those predictions have a high likelihood of manifesting. The business plan, including the assumptions detailed with the financial projections, gives the lender a view into the borrower’s industry experience, market research, analysis of the business’s competition, and methods for marketing for and retaining customers.

The business lender will first look at the amount of your investment in the business compared to what you expect from the lender. That lender is determining if your level of investment is appropriate for the lender to invest their funds and assume the risk of success with you. Unfortunately, “ adequate capital” can be different for different business lenders who have different appetites and expertise. The third criterion which the lender reviews is the management background, including educational experience and industry business experience, which the applicant brings to the table. An actual track record of managing a similar or related business is the best evidence of management ability. Another indicator can be the education and training the borrower has received to prepare for business ownership. In the cases of startup franchise businesses, the lender will evaluate the past performance of other franchisees in that franchise. If the franchise has a high percentage of successful franchisees, the lender may deduce that the franchisor offers effective management support to their franchisees such that the lender does not feel the need for as strong a pedigree from a borrower affiliating with that franchise. Another way of strengthening the management experience component is adding partners, shareholders, or other owners with sufficient experience to assist with management and who are willing to take personal liability on the loan with the other primary owner(s). The fourth consideration of the lender is the borrower’s personal credit history. If the owner of the new business has a steady history of clean personal credit, they are much more likely to do whatever it takes to preserve that good record. This is merely a statistical fact.

»Continued on Page 36 [ DECEMBER 2014 ] www.SBTMagazine.net 27

EDITORIALFEATURE

Out With the Old, in With the New: 3 Ways to Refresh Your Marketing Strategy in the New Year By Aimee Woodall

an you believe another year has almost passed? Just like your wardrobe or messy garage, there are some things that should not follow you into 2015 and some that should stick around. The same is true with your business marketing strategy. Out with the old and in with the new, I say! Here are three things you can do to tidy up your marketing in 2015: The old: Delegating your social media to your intern. The new: Crafting a strategic social media plan. Instead of leaving your social media success up to chance, invest the time and resources into crafting a strategic social media plan. This will take the form of two different strategies: an operational plan and an editorial plan. An operational plan lays out the mechanics behind a social strategy—when, where, and how content is shared and an editorial plan gives direction to the content being posted. Don’t only think about what you are posting or how you are posting the content; think about where your brand is living online. Does your insurance company need Pinterest? Maybe not. Stick to the social networking sites that make sense for your audience and don’t take on more than you can handle. Being strategic about social media will alleviate headaches, like missed networking opportunities, and will help create a cohesive brand. The old: Overusing the press release. The new: Targeting the media contacts that make sense—with personality! Reporters are very busy people with deadlines throughout the day. Chances are, when they receive your fourth press release for the month, little attention will be paid. This is not to say that the traditional press release isn’t important, but it

28 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

should be saved for monumental announcements that require a traditional approach. Instead of bogging down your work day with writing multiple press releases, identify the media contacts you want to reach and draft a quick email with the top three to five points you want to convey. Ask them if they would like more information and let them know you want to be a resource. You will be more likely to get a response, even if it is a polite “No thanks.” And “Voila,” you’ve started creating a relationship that will last. The old: Give back occasionally. The new: Make giving a part of your brand. There are multiple benefits of placing social responsibility and giving at the forefront of your business. For example, if your business receives regular requests for donations and you aren’t tracking this, you’re missing out on a valuable marketing opportunity. Chances are, you’re also missing out on an opportunity to make a greater impact with the same level of effort and commitment. Using what is already working, create a giving framework that maximizes your charitable contributions and the impact it has on the community. By thinking strategically, tracking your giving, branding a program, and making your customers aware of this commitment, you will be on your way to creating countless opportunities for public relations and brand awareness. When we think of New Year’s resolutions, getting fit or being more organized are our go-to pledges but forgetting about marketing is a mistake. It will take a little effort but letting go of some old habits and adopting some new tactics will put you on the fast track to making 2015 a successful business year. Aimee Woodall is the owner of the Black Sheep Agency, a Houston-based creative agency specializing in non-traditional public relations, social media, and experiential marketing. Contact Amy by phone at 832-971-7725, by email at aimee@theblacksheepagency.com, or visit the website at www.theblacksheepagency.com.

EDITORIALFEATURE

How Do Small Businesses Get Big Business Results?

It’s Simple! By Jason B. Montanez

one’s pulse at a medical vist’s a no brainer that GROWTH So, how does a leader care for his/her taking it; listening is critical to getting an is the key to any business. The subordinates? They associate, adapt, accurate assessment. They ask growth that I’m referring to is empathize, are there for their key questions to uncover any ill true growth not just top-line feelings and make it a priority to revenue growth that looks good employees when they need them, on a spreadsheet or a power and show concern for the things that ensure that the primary focus is always on the customer. point for a quarterly review. So matter to their employees as long the question is,“In this ever-changas they are in line with the code Unfortunately, it does not take ing and competitive environment of conduct and do not much to exceed customer exthat we call today’s business clipectations nowadays. At times, I mate, how do small businesses compromise integrity. find myself expecting mediocre achieve this growth?” I’m referring service at best where I would just to the businesses with no multimillion dollar marketing campaigns, no multimillion dollar part- be satisfied and when treated like I am supposed to be treated nership deals, and do not have the brand recognition of Fortune (as if my time and money are valued), I feel the service was great when in actuality, I was served the way I ought to be served. After 100 companies. all, I did patronize that location, spent my hard earned money, and Small businesses must do something that big businesses struggle chose them over their competitors because I could have easily to do and that is to focus on the fundamentals. Small businesses gone elsewhere. That said, I offer a couple of golden nuggets. must have a laser-like focus on the intricate details of the core of Consistently Acknowledge and Resolve Efficiently (CARE) is an business and that is the customer. The customer has been and will acronym that I developed to simplify the customer care dilemma always be the cornerstone of business. Customers are not numbers that so many organizations face. People want service that is conand must be cared for individually because that is what they are, sistent; they want to be acknowledged (feel important); they want individuals. Sure, general processes and procedures may be in place any issues resolved; and they want it done in a timely manner to provide a guide on how to care for customers. However, each which exemplifies that you value their time. It’s just that simple. customer interaction is unique and should be treated as such. Lastly, there are four aspects that have to accompany the CARE philosophy to realize true growth in a disciplined environment: When I refer to the customer, I’m talking about both internal and external customers. The equation is simple. Ensure that there is leadership in place that motivates, inspires, empowers, 1. Answer the phone when the phone rings (be there when clients need you). and develops the internal customers (employees) that have everyday interactions (by phone or face to face) with clients so that 2. Do what you said you were going to do (set proper expectations and keep your word). the external customers can be properly cared for. The leadership must exemplify the way to properly care for the customer by car- 3. Resolve any issues with the same vigor as if it were your problem (have a sense of urgency). ing for their employees. It is my contention that the employees 4. Treat every interaction as an opportunity to strengthen the that are cared for will naturally know how to care for the customrelationship. er because they have been cared for so well by their leadership. So, how does a leader care for his/her subordinates? They associate, adapt, empathize, are there for their employees when they need them, and show concern for the things that matter to their employees as long as they are in line with the code of conduct and do not compromise integrity. In a nutshell, quality leadership listens. They listen more than they speak. I equate this to a nurse 30 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

Focusing on the fundamentals of customer care will catapult small businesses into big business results. Jason B. Montanez is the Founder and Principle at The Catapult Leadership Group. Visit his websites at www.catapultleadership.com or www.leadsellcare.com or email him at jason@catapultleadership.com.

EDITORIALFEATURE

Business Networking

and Culture By Gail Stolzenburg

s networking enough? In recent articles, we defined networking as making contact and creating credibility which results in referrals for resources and customers. For example, let’s say we are at a business breakfast networking event and we introduce ourselves, ask questions, and decide if we want to explore a business relationship; then, we meet again to learn more about each other’s business, capabilities, and reputation; and finally, we begin giving each other quality referrals and generating income. That’s networking, but, there is another step – Culture.

Culture is developing a group with its own beliefs, ways of life, and way of thinking. Networking is never enough! We must build a community and develop a culture. Founder of BNI business referral organization, Dr. Ivan Misner says, “Culture eats strategy for breakfast any day”. Cultures are necessary because it is human nature to want to belong and associate with each other. That’s why we create masterminds, advisory boards, power teams, etc. You can only progress so far by yourself. A few years ago, I started a referral marketing business and became the highest ranking consultant for that company in Houston. But, that was a far as I could go without developing a TEAM – Together Everyone Achieves More. I had to develop a culture and a community. How effective is culture? I often hear at networking meetings that a member has generated more than 1/3 of his or her business from referrals made by members of their group. This is because a culture has been developed using the law of reciprocity. John D. Rockefeller said, “A friendship founded on business is better than a business founded on friendship”. For example, I met the publisher of Small Business Today Magazine at a business function and afterwards we became friends. One of the best examples I know of culture is social media. Yes, it is being done every day. It is called a TRIBE. Who do you follow on social

media? I follow others because we share similar values and mission statements and, in turn, I have asked them to contribute ideas to my business. Howard Partridge, exclusive small business coach for Ziglar Corporation, writes on culture and communities about GLOCAL, a concept I’m helping him develop where business owners meet weekly to discuss successes and problems in aspects of their business such as marketing, sales, operations, administration, and leadership. Networking may lead to a culture but culture also affects networking. I have a friend who is Japanese. Because of his culture, he has a tendency to say yes every time he is asked a question, even though he is unable to understand the question. Now, I always ask an open ended question such as, “Can you tell me what you need to do next?” rather than, “Do you understand”. In Japan, business is only discussed after dining and drinking; in Thailand there is no shaking of hands, they just put their palms together and bow; in Malaysia they shake hands and then put one hand on their heart. Each culture is different and how we adapt determines our success. The reason networking groups are so effective is because participants experience the culture. Recently, I was at the Zig Ziglar Corporation headquarters in Plano,TX for the first Ziglar Business Owner Workshop and this was my experience: Every one of the staff made me feel like I was a member of the family. It is an experience I’ll never forget. Zig is famous for saying, “You are what you are and where you are because of what goes into your mind. You can change what you are and where you are by changing what goes into your mind.” – Zig Ziglar

Gail “The Connector” Stolzenburg’s new book, “CONNECTIONS: Contacts to Clients” was just released. For more information, Gail can be contacted by phone at 281-493-1955, by email at Gail@GailStolzenburg.com, or visit his website at www. GailStolzenburg.com. [ DECEMBER 2014 ] www.SBTMagazine.net 31

EDITORIALFEATURE

Financial Astrology for

December 2014 By Christi Ruiz, Business Spiritual and Intuitive Life Coach

ARIES (March 21 - April 20)

Saturn has been impacting you negatively by adding difficulties to your financial zone in joint resources, credit, and debt. That has made you a master of your economic destiny. Mars will be giving you the security of never becoming financially beholding to anyone ever again.

TAURUS (April 21 - May 21)

You will have economic prosperity with Venus, Mercury, and the Sun in your investment zone. Jupiter on the 12th brings monetary good fortune.

GEMINI (May 22 - June 21)

SCORPIO (October 24 - November 22)

Jupiter is in your career zone and you are working on overdrive. Venus and Mercury with the beneficial Sun will be in your income zone. Jupiter will come in on the 4th causing you to overspend. Stick to a sensible budget.

SAGITTARIUS (November 23 - December 21)

Focus on earning as much as you can while you have ambitious Mars in your earnings zone till the 4th. You will want to continue to spend due to Venus’s influences on the 10th. The New Moon will bring good luck into your income zone.

Mercury is in your credit zone and you cannot afford to squander your finances. Caution needs to be taken due to Pluto and Venus that are in transmutation which will encourage you to overspend for the holidays. Uranus will also have you focusing on seasonal spending.

CAPRICORN (December 22 - January 20)

CANCER (June 22 - July 22)

AQUARIUS (January 21 - February 19)

Focus on earning the monies you need for the expense of gifts. Mars enters into your credit zone on the 4th and the desire to overspend will be very strong. Jupiter comes into your income zone and will create extra opportunities for making money. Use cash payments to avoid overspending.

LEO (July 23 - August 22)

You will start the month worried about finances. Then Venus and Mercury will solve the problem with a cando Sun. Great attitude and hard work will ensure that you meet all financial obligations.

VIRGO (August 23 - September 23)

You may have to come up with creative ways to make money for the spending that you will be doing. Uranus is influencing your financial zone and can leave you with debt. Only make purchases on what you need.

LIBRA (September 24 - October 23)

Saturn is moving through your sign. This is influencing your earned income in a positive way. Saturn leaves your financial zone on the 23rd and you will have splendid possibilities for increased income after that. 32 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

Ambitious Mars will be in your work zone until the 4th. All the extra holiday work or overtime will give you the means to spend on your family. Keep to a budget and do not go into your savings or investments. Seek to make money doing what you desire. Now is the time if you have not found that career or opportunity. Mercury and Venus are assisting you in that now. Neptune will assist you in being real about your earnings. Work hard and you will be at peace with what you spend. You will attain a sense of tranquility and serenity within your soul.

PISCES (February 20 - March 20)

Uranus has caused your earnings to be like a roller coaster ride. Uranus has been giving you many opportunities to increase your income. It has also snatched any gains away with unexpected expenses. Saturn comes on the 23rd to assist you in building your professional status and create a solid foundation. Christi Ruiz is an expert in spiritual and intuitive sciences. She uses these skills to assist with one’s success in real estate, business, and personal matters. In addition, Christi’s many years of experience working for banks and mortgage companies gives her an extra edge in understanding the world of finance. You can contact Christi by phone at 713-773-0333-O or at 281-904-2658-C. Her website is www.christisportals.com and her email addresses are christiruiz722@gmail.com and christiruizchristi@yahoo.com.

EDITORIALFEATURE

Entrepreneurs Tool Box -

The Final Talley for 2014 By Alvin E. Terry, MBA/Business Consultant

our time is up! It’s time to wrap it up! Don’t get nervous. Everyone is going through the same things, experiencing the same emotions, and getting ready for that final shout out of questioning how you did this year. Did we pay all of our bills? Who owes us money? Can we collect? Is there money left over to pay Uncle Sam? Can we minimize our tax burden? Did we make a bonus? Did we give back to the community? Are we still in business? Is there enough inventories left to fill those last minute orders? These are just some of the questions that are going through most of the small business owners’ minds. Depending upon your actual numbers and your projections, just how close were you? Was your business plan worth the paper that it was written on? If you were anywhere close at the end of the year where you thought you should be from the beginning of the year, then you are winning? This can have a great impact on your ego, your internal customers, your investors, and your love life (if you have one or just want to start one). If all is well, then the main focus should be on growth, prosperity, expansion, and increased revenues. This means that you will begin on the new “Business Plan” for 2015. It never ends. That wonderful task is back again of projecting where you will go in the year to come. Isn’t it exciting having to write a new plan? Don’t fret; I have been there many times before. Experiencing that adrenalin rush of growing beyond your wildest expectations again is exhilarating. Or, is it giving you a headache? It comes with the territory. You have to pick yourself up, dust yourself off, learn to delegate, avoid time traps, hire that much needed assistant, refocus, and get back out there as if it is the only and right thing to do.

If all is well, then the main focus should be on growth, prosperity, expansion, and increased revenues. This means that you will begin on the new “Business Plan” for 2015. It never ends. Attacking new markets can lead to that renewed sense of rejuvenation. Expanding your Internet presence, creating more flexible payment plans for your customers, adding new products, and/or expanding your services can generate new revenues and meaningful relationships. Take a sabbatical at the beginning of the year to help formulate your “Action Plan”. This plan will transform into the steps of which items should come first. It will also help determine the resources that will be needed and the personnel that will be responsible for its implementation. This necessary time off will help you get focused for the beginning year and what components you will need to implement your strategy. I know that it seems as if you might have heard this before, but you will hear it again, over and over from other sources. Well, above all, don’t stress; just get it done at your own pace. Focus on the upcoming year and the changes that the economy has made all of us make adjustments. Once again, it has been a pleasure to share my thoughts with you. Go back into SBT Magazine’s archives to January 2013, page 9, and reflect on the article, “Positioning your Business to Win in 2013”.

Alvin E.Terry, MBA, President of Dynamic Business Builders can be contacted by email at alvin.terry@rocketmail.com or by cell at 713-392-9107.

[ DECEMBER 2014 ] www.SBTMagazine.net 33

EDITORIALFEATURE

“You’ve Been Served!” –

4 Pointers on Lowering Litigation Risk in Your Business By Paul J. Franzetti

“

You’ve been served!” Those three words strike fear into the heart of any rational person. Being sued is not only a hassle but it puts your hardearned assets or business at risk. We live in a litigious society, however, and every business owner should think about these risks. So, how should you handle the risks? First, form an entity that limits your personal liability. The choices in Texas include corporations, limited liability companies, and limited partnerships, along with professional versions of each. Each of these forms requires initial filings with the Texas Secretary of State, as well as filings for certain updates and annual filings and tax payments to the Texas Comptroller of Public Accounts.

A comment on another type of entity – a simple partnership – is in order. Forming a simple partnership to engage in business with others does not require these filings but it also does not insulate your personal assets in the event of a lawsuit. The overwhelming entity of choice these days is a limited liability company – that is, an LLC. Two of the most important benefits to a small or medium-size business of an LLC over a corporation are that 1. profits from an LLC’s business can be taxed once at the owner level rather than at the entity level and the owner level as in the case of corporations; and 2. the “deal” among the owners of the business (if more than one) can be more easily customized on a variety of issues than for a corporation in-

A comment on another type of entity – a simple partnership – is in order. Forming a simple partnership to engage in business with others does not require these filings but it also does not insulate your personal assets in the event of a lawsuit. cluding among them buy-outs, profit distributions, and control factors. A corporation, however, can still have their place as a business grows and even a new business owner should not overlook the potential for the benefits of the corporate form. But forming an entity is only the first step. You must make sure that the entity, and not you, is doing business with customers and suppliers. This typically involves making sure contracts are in the name of the entity and avoiding, if possible, giving personal guaranties on those contracts. An entity also involves keeping up company formalities and keeping the entity in good standing. The formalities may be required by law or they may be an aspect of the criteria that lenders or investors use in evaluating your business. If you do not maintain the formalities required by law, you could still be personally liable on company debts. If you don’t maintain the formalities that lenders or investors use as part of their criteria, your company may

34 SMALL BUSINESS TODAY MAGAZINE [ DECEMBER 2014 ]

not obtain a loan or investment when it is needed. Second, keep your business assets separate from your personal assets. As implied above, forming the entity is the first step. You must maintain separate bank accounts and formally declare dividends when taking money from the corporate account to pay for personal expenses. Likewise, investing personal money in the business should be documented as a capital increase or a loan. Third, obtain liability insurance. Not every matter that could turn into a lawsuit can be insured against but it is silly to ignore those risks that can be insured. While your entity should protect your assets outside the business, it will not protect them if you commit a tort. For instance, what if a visitor to your office or premises is injured? A court could determine that you were negligent for not fixing a defect that was the cause of the injury. That determination would subject your personal assets to a judgment. Fourth, engage early on when a customer or supplier has an issue. Addressing an issue early usually signals to the customer or supplier that you are doing everything possible to resolve the issue and this often avoids being sued. None of these will absolutely shield you from the risk of being sued. But, doing them may well solve your issues on this point and not doing them only invites trouble down the road. Paul J. Franzetti is the Founder of Paul J. Franzetti, Attorney at Law. He can be contacted by phone at 713242-1265, by email at pfranzetti@trustedlawadvisor. com, or visit his website at www.TrustedLawAdvisor. com.

»Continued From Page 27

Facing the Challenge of Financing a Small Business Startup

Finally, the lender will consider the collateral offered for the loan. Many new businesses are started without significant assets that can be offered for collateral. If the borrower has no available personal assets to pledge for collateral, this makes the loan application process even more challenging. Conventional bank lenders often have policies limiting loans to businesses which are at least two years old. For them, they would rather see the new business owner use a personal loan such as a home equity line of credit to finance their business startup because the borrower’s home can be used for collateral. With all these challenges facing the new business startup, SBA government-guaranteed financing offers a much needed alternative to conventional bank financing. SBA loans are available for business startups. They

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You can learn more about SBA lending and small business finance on Bruce’s blog at brucehurta.wordpress.com. For more information about SBA real estate loans for small businesses, contact Bruce Hurta, Business Lending Manager at Members Choice Credit Union at 281-384-2595 or by email at bhurta@mccu.com.

DECEMBER 2014 EDITION HOUSTON

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are still not easy to qualify for but they are more easily attainable. SBA loans do not require collateral but the lack of collateral will increase the reliance on the other four underwriting criteria described above. Bringing the SBA lender a well-thought-out business plan with the experience commensurate for success, the small business owner is much more likely to attain the financing they need. They still need a significant amount of their own cash (skin in the game) to entice the lender to invest with them but most good business startups will find the capital needed to satisfy the lender from their savings or by joining with other investors in the project to adequately fund the new business in relation to the debt being contemplated with an SBA loan.

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