Business Adviser No. 15 Rio Grande Valley

R I O G R A N D E VA L L E Y E D I T I O N

Issue 15

How to Conduct

MARKET RESEARCH When You Are on A BUDGET THE POWER OF PERSONALITY

CONSTRUCTION

LENDING Advice from local experts

BLUFF CONFIDENCE IN 6 WAYS

MARKETING TACTICS That Cost Time, Not Money

+

The Dark Side of Self-Employment Personal Crisis While Running a Business?

Buy or Lease Tech Equipment

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Our Team

Editor’s Letter

STAFF

EMPOWERING SMALL BUSINESS

Andrew Yoo Maggie Yoo Oriol Zertuche John Amour Reynaldo Vento Jonny Wilczynski

ADVISORY BOARD MEMBERS John Amour David Armstrong Alonzo Cantu Alfonso Cavazos Janet Cavazos Enrique Garza Marco Garza Albert Lopez Dr. Arturo Lopez Shavi Mahtani Dr. Teofilo Ozuna Carol Schmitt Danny Smith Andrew Yoo Maggie Yoo Jose Orona

CONTACT US In print, online, and in person, nobody connects the people, issues and ideas within valley business owners like Business Adviser.

First let me thank you for your continued support, we hope to establish Business Adviser Magazine as the single most important resource for business owners in the Rio Grande Valley. Our vision is to create a brand that would stand for everything business and support business owners with everything they require outside of their core disciplines.

This magazine is the result of an ongoing demand for a reputable, responsible source for business knowledge and advise. The business world can be a scary place, with tough decisions to make and a tough road to success. We plan to ease these situations by providing an online and offline publication that will guide business owners of every level in their ventures. Our team consists of knowledgable entrepreneurs that eat, breathe and live business.

With a dedicated panel of industry experts and a hands-on approach to answering business related questions, Business Adviser Magazine helps business owners stay ahead of the competition and empower them into success. Our mission is to inspire the entrepreneurial spirit and foster business growth by providing the resources needed for business owners to prosper. I personally invite you to join Business Adviser Magazine. We are sure that your business will benefit greatly from the exposure generated in this publication, building brand equity and establishing you as an industry authority.

Sincerely,

Andrew Yoo, CEO & President info@businessadviser.co (956) 277-1944

In This Issue

10 14 20 22

MVEC Shows That Doing Good is Good for Business

Buy or Lease Tech Equipment

06

THE DARK SIDE OF SELF-EMPLOYMENT

18

Kick Starting A Small Business? Make Sure You Know About These Legalities

THE POWER OF PERSONALITY

The Foundation at Mission Regional Medical Center: Saving Lives by Improving Community Healthcare Resources

24 26 30 38 40 42 44 46 50

Sympathy vs Empathy *Part 2

3 Ways To Get The Most Out Of Your Chamber Membership 6 Ways to Bluff Confidence

Personal Crisis While Running a Business? Here is How to Deal With It Being Late Sends Very Wrong Signals About You

32

How to Avoid Over Communication

LOCAL LENDING ADVICE: TIPS FOR SECURING A RESIDENTIAL OR COMMERCIAL CONSTRUCTION LOAN

How to Conduct Market Research When You Are on a Budget Don't Have Money? Maybe You Are Making These Mistakes

48

MARKETING TACTICS THAT COST TIME, NOT MONEY

When Creating a Startup, Watch Out For All the Fees and Taxes

INVESTMENTS STARTUPS

6

www.businessadvisermagazine.com www.businessadvisermagazine.com

INVESTMENTS STARTUPS

The USA has over 15 million selfemployed people today. To you, that may be 15 million people who are following their dreams and living life by their own terms, but take a minute to stop and think about what they have to compromise on. ou'll never truly love your job unless you are your own boss. That’s what they say.

What they don't tell you is how insanely expensive the entire process is. No more housing allowances, no tax cuts, no insurance covers. If this sounds scary, remember that you also have to set aside funds for your retirement plans.

Do you have what it takes?

Let's take a closer look at some of the factors that advocate self-employment often like to gloss over.

WHEN I'M IN CHARGE, I’LL BE A FANTASTIC BOSS

solute genius at marketing, but what about customer relations, social media management, or even accounting? While in the initial stages of your business, you will find yourself trudging through these functions on your own.

WHERE'S ALL THE MONEY I EXPECTED? If you're lucky and work hard enough to land the right projects, the money will come. However, unlike holding a fixed job, freelancing entails dealing with irregular monthly revenue.

Remember, your income may fluctuate, but your expenses might not. Your landlord, or

your power company doesn't care if your clients paid you only 20% of your bill this month. And the heavy taxes that you will pay will not ease your pain.

THEY CALL IT FREELANCING BECAUSE IT IS DONE WHEN YOU'RE FREE This is a myth. Freelancers will often put in the same amount of time as they would at a regular job, if not longer hours, in order to make deadlines. You are often not the boss of your own time because any time that is spent not working, can be translated into money that is not being made.

IF YOU CAN’T HOLD A STEADY JOB, THEN FREELANCING IS FOR YOU Wrong. Holding a steady job brings with it a certain set of responsibilities and accountability that you need to possess in order to be a good freelancer. It is only when you are truly in charge of your own business that you realize how difficult it is to be productive without having someone breathe down your neck.

We aren’t trying to scare you, but we want you to be open to reality. Before you leave your job and go for freelancing, make sure you consider all these factors.

When you are self-employed, you will have to juggle every role imaginable.

One moment you will be the CEO and the next you will be a janitor cleaning your own mess.

Sound familiar? When working in a structured organization, everyone thinks they can do a better job than their superiors. In the absence of the sense of accountability that the organizational hierarchy brings about, you are left to fend for yourself. This is when you realize you may be better at following orders than giving or delegating them. What then?

ONE PERSON, TEN JOBS When you are self-employed, you have to juggle multiple roles. You will play CEO and receptionist simultaneously, while also donning the janitor's hat and picking up the mop to clean up after yourself. You might be an ab-

7

SPONSORED

MVEC

SHOWS THAT DOING GOOD IS

GOOD FOR

BUSINESS Magic Valley Electric Cooperative is all about doing business with corporate social responsibility in mind. Through scholarships, youth programs, and generous donations, the company has found unique ways to give back to the community.

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C

orporate social responsibility has become an integral part of business operations among top companies in the United States. By practicing corporate social responsibility, businesses can gain credibility, support and a positive reputation in the community.

Modern companies rarely focus solely on profit, as the amount of public good a business does can directly correlate with consumer loyalty and employee satisfaction.

Magic Valley Electric Cooperative (MVEC) is a local company that has fully embraced the philosophy of corporate

social responsibility. “For us, it’s about more than just business,” says John Herrera, General Manager at MVEC. “Our purpose is to empower the members of our community.” To that end, MVEC proudly supports local nonprofit organizations such as Habitat for Humanity, Driscoll Children’s Hospital, United Way, local Boys & Girls Club of America, American Cancer Society, and the Food Bank of the Rio Grande Valley.

Herrera says that MVEC employees are heavily involved in giving back to the community. For the past seven years, they have selected an organization to support

through the Magic Valley Employee Fundraising Committee (MVEFC). This year, the group raised $25,000 for Driscoll Children’s Hospital.

In previous years, MVEFC has donated over $15,000 to Driscoll Children’s Hospital and over $15,000 to Habitat for Humanity.

Employees can also participate in internal fundraising campaigns through MVEC by purchasing a variety of items for charity, such as breakfast plates or premier parking spots. MVEC also encourages employees to reach out to others on behalf of nonprofit organizations. “It’s part of our coop culture,” says Herrera. “Giving back to the

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SPONSORED

Every year, the coop awards seven $15,000 scholarships to students in the Rio Grande Valley This year, the group raised $25,000 for Driscoll Children’s Hospital. In previous years, MVEFC has donated over $15,000 to Driscoll Children’s Hospital and over $15,000 to Habitat for Humanity

communities and the people who have supported us over the years is one of our top priorities.”

MVEC also takes an active role in community education.

Every year, the coop awards seven $15,000 scholarships to students in the Rio Grande Valley. For 2016, MVEC will sponsor four local students for the Electric Cooperative Youth Tour program. These students will have the opportunity to travel to Washington D.C. to learn about the political process and interact with elected officials.

“We’re helping young people learn about our history as a nation,” says Herrera. Additionally, MVEC also presents

numerous safety programs and electrical demonstrations to students in the Rio Grande Valley with the goal of teaching children about the importance of electrical safety.

Herrera says that corporate social responsibility is important to MVEC and all local electric cooperatives. In fact, concern for the community is one of the seven principles that guide all cooperatives.

While focusing on member needs, electric cooperatives work for the sustainable development of their communities through policies accepted by their members. At the end of the day, Herrera has found that what’s good for the community is good for business.

“Concern for our community helps sustain community and business development,” says Herrera. “We work and live here in the Valley. We want to continue to improve our community because this is our home.”

Eastern Division & Corporate Office 1 3/4 Mile West Highway 83 Mercedes, Texas 78570 1-866-225-5683

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TECHNOLOGY

BUY OR LEASE YOUR TECH 14

www.businessadvisermagazine.com

INVESTMENTS

S

hould you lease or buy new equipment for your business?

I’m sure this is something that has crossed your mind at least once. Depending on your situation, you can make a choice. If you have a limited capital or your business is such that it requires an upgrade of equipment every few years, then leasing out the equipment would be a better choice for you. Purchasing new equipment is a good option for business owners who either have well established businesses or their equipment has a long usable life.

The decision to purchase or lease business equipment should be taken after considering the pros and cons of both the options.

BUYING The first and foremost advantage that you have of buying the business equipment is that it becomes your permanent asset; it adds to your wealth in the long run. Also, may receive some tax rebates while purchasing your own equipment. Here are some other benefits that you get from purchasing your own business equipment.

UPSIDES OF BUYING You determine the maintenance schedule. Leasing out and maintaining the equipment according to the

leasing company’s specifications can turn out to be an expensive deal. On the other hand, by purchasing your own equipment, you can have your say on the maintenance schedule and cost.

Buying is an easy process.

When you plan to purchase equipment, you have the exact specifications in mind; it gets easier to go and just purchase the equipment outright. On the other hand, when you go out to lease equipment, you might not get the equipment with the specifications you had in your mind; and you have to settle with what the leasing company has. Also, leasing out equipment can turn out to be a painful task as it involves a lot of complications and paperwork. Settling on the lease terms can become difficult and in a few cases, you can also end up paying more than what you expected with hidden fees.

DOWNSIDES OF BUYING Purchased equipment tends to become outdated quickly.

Technology changes frequently and so does technical equipment. Purchased equipment get obsolete soon, and you can’t keep them or do away with them fully; so you get stuck with the outdated tools. A significant amount of money goes into upgrading or replacing these devices.

It requires hefty capital investment. Purchasing new

equipment may require a large initial capital investment, which could be invested into other key processes like marketing or accounting.

LEASING Leasing out equipment not only preserves capital but also makes room for easier replacements when equipment becomes obsolete every few years. Like ‘purchasing’, ‘leasing’ has its own pros and cons.

UPSIDES OF LEASING Leasing requires minimal initial expenditure. Unlike the ‘purchase’ option where you need to pay hefty initial amounts to obtain the equipment, leasing requires no down payment.

This way you can acquire the equipment that you need easily without heavily affecting your cash flow.

Apart from gaining the benefit of less initial expenditure, you

are also taken off the burden of maintaining the equipment as the same is taken care of by the leasing company.

Problem of outdated equipment can be easily handled.

Technical equipment gets obsolete with time. Leasing provides you an advantage of easily replacing the outdated equipment with the latest ones at the time of lease agreement renewal. Also, if you are not happy with the services of your current vendor, you can always lease out new equipment from a different vendor, once the current lease agreement expires.

DOWNSIDES OF LEASING Leasing can prove to be a costly option in the long run.

Most of the time, your monthly payments include stealthy high interest rates. So in the long run you can actually end up paying more while leasing than if you bought the equipment outright.

Cancellation or early termination of lease agreement can be very expensive.

There might be some circumstances that cause you to stop using your leased equipment. In such circumstances, you still need to make payments for equipment that you aren’t using.

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SPONSORED

THE POWER

PERSONA C

ongratulations!

You have just been hired for a career in sales, the opportunity of a lifetime, offering you a chance to write your own ticket, to determine your own income and level of success. Generally speaking, there is no glass ceiling, no limit to what you can achieve. Chances are pretty good that you were hired due in large measure to your particular personality traits.

Let’s take a look at personality traits common to successful candidates hired for sales positions in every industry and service arena.

Are you PERSONABLE, comfortable in most social settings, eager to meet new people, to engage in discussion of subjects new to you? Do you have an ability to strike up conversation with those you’ve never met before? True sales professionals recognize that everyone they encounter on a day-to-day basis is a person who may potentially need their product or service, or know someone who does. They feel comfortable talking to people anywhere and everywhere.

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Do you consider yourself to be AMBITIOUS, accustomed to setting goals and then creating and executing a plan for achieving them? For some, “ambition” is a dirty word, because they equate the word with greed, or avarice, but truly, ambition under control is a great strength for sales professionals. As long as the ambition is tempered by a person’s hunger to serve others first, it normally does not present a problem.

Are you CONFIDENT, making everyone feel comfortable with your ability to make things happen, to get things done? Can you continue to project that confidence in spite of the sometimes closed-minded people that you encounter as you look for the right people for your products and services? Do you accept “no” as par for the course, and not as a personal rejection, realizing that every sales professional will have to hear “no” over and over, in order to get to “yes”?

Do others describe you as PASSIONATE, throwing yourself fully into everything you attempt? Sales is simply a transfer of enthusiasm.

Ralph Waldo Emerson may have said it best:

ENTHUSIASM is one of the most powerful engines of success. When you do a thing, do it with all your might. Put your whole soul into it. Stamp it with your own personality.

Be active, energetic, be enthusiastic and faithful, and you will accomplish your objective. Nothing great was ever achieved without enthusiasm.

Would you say that you are INDEPENDENT, enjoying autonomy, and not reliant on another’s authority or direction to make your way in the world? Do you like to explore the areas you need to improve in, and then find the resources (whether books, videos, articles, or mentors) to help you make those improvements? Do you invest time and money in yourself to become a better ___________ (fill in the blank)?

Have you consistently been described as HARD-WORKING by former associates, work team partners, and supervisors?

According to popular football coach Vince Lombardi, “The dictionary is the only place where success comes before work.

Work is the key to success, and hard work can help you accomplish anything.” That pretty much says it all, doesn’t it?

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SPONSORED

OF

ALITY Generally speaking, there is no glass ceiling, no limit to what you can achieve.

Are you DISCIPLINED, able to self-direct, daily attending to the important tasks that will move you closer to your goals, rather than getting caught up in the "urgent," the things that seem to need your immediate attention, even though they are not critical steps towards achieving your goals? Discipline makes it easier to be “your own boss” because you don’t need anyone standing over your shoulder, breathing down your neck in order for you to get to work. You are self-motivated.

Have you decided to always remain POSITIVE, regardless of what is going on around you?

We each choose to be either a thermometer or a thermostat, depending on our decision to allow outside influences to affect us, or to directly impact our environment, like a thermostat.

Positive people are thermostats, setting the tone for the environment around them.

Are you PERSUASIVE without being overbearing? Are you able to focus on the needs of

your prospect, so that they can convince themselves of their need for your product?

You may be aware of a particular idiosyncrasy common in persons approached as “prospects” for a sale of any kind. We may think that everything the salesman says, it’s to make us buy whatever is being offered. On the other hand, everything that we say is 100% true (at least in our own mind). So asking the right questions can make your job much more relaxed, because your prospect will sell herself.

Every day in the sales profession brings a wide variety of people and situations; anything can happen, and you are often thrown curve balls.

Are you ADAPTABLE, meeting each person and situation in the best way so that they can relax, and fairly quickly learn to like you and trust you?

Prospects buy from people that they like and trust, so this is a vital skill for the aspiring sales champion. If your appointment doesn’t show,

do you let it blow your whole day, or do you quickly adapt, by finding someone else to talk to about your product?

Who is in the next home or office? Go find out - they might be the one you were actually looking for, without even knowing it!

So there they are… 10 personality characteristics of successful sales professionals.

You likely possess at least six or seven of these characteristics, if not all ten! If that’s true, you already have some great advantages which will help you to be a highly effective sales professional.

And if “sales professional” is not your official job title, you will still benefit from having or developing these personality traits, because WE ARE ALL IN SALES, whether we are teachers, administrators, first responders, medical professionals, managers, wait staff, crossing guards, or parents, because we are all in position at some point, to influence the behavior of others.

Embrace the power of your personality!

There is a curious phenomenon that occurs fairly often, however. Some newly minted sales professionals, as they go through their training, seem to be rehearsing for a theatrical performance as they engage in their first approaches and presentations in front of live, possibly qualified prospects for their products.

It could be that they are nervous, afraid to forget what they are supposed to say, or that they will say something wrong. Another possibility

is that they are comparing themselves to another sales professional, and they are trying to be like that other person. There is no need for this comparison, because you do have “the right stuff”; be confident in who you are, and in the gifts and strengths that you’ve been given. In other words, BE YOURSELF! Important points to remember: One, your prospect, affectionately known as Mrs. Jones, has NO IDEA what you are supposed to say. So if you don’t get it quite right, unless you give yourself away, she will never know that you messed up! Two, you can’t say the wrong thing to the right person. There are buyers out there for every product and service, and it’s just a matter of talking to as many people as you can, every single day that you choose to work, so that you can find them.

A wise friend used an analogy that put it all into perspective. He said, “It’s like God has hidden all these Easter eggs out there for you, and all you have to do is find them.”

It’s true. The buyers are out there, but if you don’t go talk to the people, you will never know which ones need and want your product or service.

They might be holding one of your Easter eggs. So go find them. You have the personality that makes for a good sales professional. Be yourself – that’s who they hired. Trying to be someone else is far too exhausting, and it’s no fun at all. Sales can be an invigorating and fun adventure. Are you ready?

By: Gracie Garza For more information on Texas Nexus Business Group, contact Gracie Garza at: ggarza@fhltexasnexus.com

19

TAXES & LAW

KICK STARTING

A SMALL BUSINESS? Make Sure You Know About These Legalities

I

f you are setting up a business, you will need to obtain a number of permits, licenses, and tax registrations. For example, you may have to file organizational papers or obtain occupation licenses. The exact formalities you need to complete depend upon the state where your company is going to be located.

REGISTRATION OF YOUR BUSINESS The first thing you should do is to register the business and its name with the office of the State Secretary.

If you're starting your company as a limited liability company (LLC), corporation, or limited partnership, you will have to file some organizational documents with the Secretary of State or Department of Corporations.

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LICENSES Professional licenses are issued by the states. Professionals such as doctors, lawyers, architects, engineers, accountants, and teachers all need licenses to practice.

People in trades ranging from auto mechanics to real estate may also require licenses.

Some licenses are issued to businesses; others are issued to individuals. It is not easy to decide which occupations need licenses, so you have to ask. You will be able to find more information from your trade association or state website.

LICENSING PROCEDURES

TAX REGISTRATIONS

The procedures may vary. In most cases, you will need to prove that you have obtained training in the relevant field.

You will probably also have to pass an exam. People practicing certain trades may have to work under a senior professional for a while to become fully licensed.

If you are planning to set up a retail shop, you may need to obtain a seller's permit. This allows you to collect sales tax from customers, which you will pay to the state. Even if some of the goods sold in your shop are exempt from sales tax, you will have to obtain this permit.

LICENSES FOR PRODUCTS

If you sell products and offer services, you have to separate labor sales from the sales of services. In most states, sales of services are not usually taxed.

You will probably need a license to sell items like food, liquor, firearms, lottery tickets or gasoline.

When setting up your business, abiding by legal requirements imposed by the state, federal, and county governments is important.

Abiding by the rules allows you to avoid legal problems in the future.

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SPONSORED

THE FOUNDATION AT MISSION REGIONAL MEDICAL CENTER:

SAVING LIVES

BY IMPROVING COMMUNITY HEALTHCARE RESOURCES

N

onprofit hospitals play a critical role in the delivery of health services to communities throughout the United States. As the only IRS 501 c3 nonprofit hospital in the Rio Grande Valley, thousands of patients rely on Mission Regional Medical Center (MRMC) for top-tier treatment and care. This 297 bed hospital has been proudly serving the surrounding area for more than 60 years. The Foundation at MRMC was established in 2002 to encourage community participation in the hospital’s ongoing quest to provide access to quality healthcare.

MAKING A DIFFERENCE IN THE COMMUNITY Since its inception, The Foundation has launched dozens of initiatives to improve healthcare services in the Rio Grande Valley. Thanks to the generosity of donors, The Foundation has also raised nearly a million dollars for MRMC. This money has been used to purchase vital medical equipment and introduce a variety of effective health programs.

In October, The Foundation Board members voted to donate over $500,000 to MRMC to help pay for new Magnetic Resonance Imaging (MRI)

22

equipment that is now fully operational at the hospital.

“We are blessed to have an active and dedicated Foundation Board working to help offset the cost of this cutting edge imaging technology at Mission Regional Medical Center,” says Javier Iruegas, MRMC CEO. “The new MRI allows physicians to detect many conditions in earlier stages, greatly optimizing diagnoses, treatment and patient outcomes.”

Close to 300 premature infants arrive at the Neonatal Intensive Care Unit (NICU) at

MRMC each year. The Foundation raised money to purchase two new specialized “Giraffe” beds for a cost of over $80,000 to benefit the most vulnerable premature babies. With proper care infants as small as 450 grams can grow up to be healthy children.

Foundation board members recently attended the 10th Annual Neonatal Intensive Care Unit (NICU) Reunion where patients reunite with their doctors and staff who worked hard to save their lives. Board members listened to some of the families share their experiences in the NICU Department

and felt that the work they do truly makes a difference in the life of a child.

The Foundation supports the Sexual Assault Forensic Exam (SAFE) Place at MRMC. It is the only 24/7 support facility for victims of sexual violence in Hidalgo County. Through the benevolent support of donors and collaboration with the Mission Police Department, the SAFE place now has specialized equipment, including a high resolution camera that can aid in the collection of forensic evidence. The nurses at the SAFE Place are trained

Board Executive pictured l-r Deborah Cordova, President, Estella Saenz, Vice President and Laura Villarreal, Secretary/Treasurer

SPONSORED velopment, and Nominating Committees. She served as the Chairwoman for the Ladies First Luncheon in 2015 which was a huge success with over 300 people attending.

Also forming the Foundation board team are board members Dora Banda, Meldi Pro Martinez, Ricardo Martinez, Ruben Moreno, Teresa Plata, and Beatriz Tijerina.

SAVING LIVES TOGETHER

The Foundation at MRMC Board Members approved a $500,000 donation to help pay for a new MRI at the hospital. to care for these patients and serve as expert witnesses in court trials, always putting the patient’s needs first.

Each year, the hospital holds the Mission Pink Walk/Run for Breast Cancer Awareness.

With over 3,500 participants, it’s the biggest event of its kind in Hidalgo County. In January 2015, The Foundation formed the Mission Pink Breast Cancer Support Group serving the Mission area and Western Hidalgo County.

The group meets monthly to support, inform, and empower women with breast cancer.

Local physicians take time from their busy schedule to come speak to these women on topics of interest to them.

THE POWER OF VOLUNTEERISM There’s no doubt that The Foundation at MRMC has had a tremendous positive impact on healthcare services in the community. Foundation Director Cynthia Guerra knows that these improvements would be impossible without the wonderful professionals that commit to helping The Foun-

dation succeed. “They bring their expertise, kind hearts, and their relationships to help us accomplish our mission,” says Guerra. “There’s an old saying: One hundred years from now it won’t matter what kind of clothes I wore, what kind of car I drove, what kind of house I lived in, or how much money I had in the bank account …but what really matters is did I make a difference in a child’s life” That perfectly describes our board members.”

THE BOARD TEAM Deborah Cordova is The Foundation Board President and an attorney at Kittleman Thomas. She has been with The Foundation Board since 2014. She serves on the Financial and Development Committees and is the Chairwoman for the Executive Committee. Ms. Cordova brings a wealth of experience working with nonprofits and is passionate about the mission of The Foundation.

Estella Saenz is The Foundation Vice President and a banker at BBVA Compass. She

has been with The Foundation Board since 2014. She currently serves on the Financial and Development Committees.

She will be the Chairwoman for the 9th Annual Legacy Gala on Friday, February 13, 2016 and is already meeting regularly to ensure Gala’s success. She excels in building relationships that are so vital to The Foundation.

Laura Villarreal is The Foundation Secretary/Treasurer and a banker at Texas Regional Bank. She has been with the board since 2014. She serves on the Financial, De-

The Foundation also relies on the kindness of donors throughout the community.

“We are very fortunate to have many dedicated and loyal donors and sponsors that we can always count on,” says Board President Deborah Cordova. She is exceptionally proud to be part of a community that is fully committed to improving health and saving lives. The Foundation always welcomes new participants in the Rio Grande Valley area. “No contribution is too small to make a difference,” says Cordova.

900 S. Bryan Rd. Mission, Texas 78572 (956) 323-1102 thefoundationatmrmc.org

Dr Joe Mendiola, Neonatologist, with one of our “miracle” babies 23

SPONSORED

Sympathy vs Empathy 2 T R A P *

We’ve said it many times: “He or she just doesn’t understand!”

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ould that be because we didn’t feel listened to? Or perhaps the person we were speaking with didn’t provide us with the indirect comfort we were looking for? In life, interaction is about exchange. At the grocery store we pay money in return for goods. In relationships, we send loved ones flowers in return of seeing them smile. When talking about personal matters, we aren’t just ‘venting’. We are indirectly searching for compassion.

SO HOW CAN WE BE MORE COMPASSIONATE AND EFFECTIVE IN THE WAY WE COMMUNICATE?

IT’S STARTS WITH BEING EMPATHIC. Being empathic means engagement, and the ability to set aside adversarial conflicts in return of better understanding the others position or problem.

(Gutmann & Thompson, 1996). In other words: being mentally present, actively listening, and imaging yourself in that persons situation emotionally.

Being empathic improves interpersonal relationships. Pulling from your approach of inductive or deductive conversations (from our last issue), our next step is to give the person we’re speaking with a place of safety and comfort. It may not always be in person, or on the phone. It could be via email exchange.

Point is: once you have given someone a portion of your personal time, it shows that they’re valuable to you. That is what empathy and effective communication is about: time and shared emotion.

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SO WHICH SITUATION SOUNDS LIKE YOU? Situation: Hi Karen, I’m really sorry about tonight. I won’t be able to attend your stand up comedy show because my boss is having me work over time. He’s been laying off employees left and right, so I need to do whatever it takes to make sure I’m doing my best.

A B

Hi Karen. Sorry to hear that. I really wish you could make it.

It’s OK, though. Work is very important, so do what you have to do. See you soon!

Hi Karen. I’m really going to miss having you at my show, but I completely understand. In fact, last year we went through the same thing. Things will be tough and uneasy at first, but the fact that you’re staying behind shows initiative and that you care. Keep doing what you’re doing, and remember you’re not alone. I will call you after my show so we can discuss more. Chin up!

CHOICE A was kind and didn’t take the time to put themselves in Karen’s shoes. Karen’s job is important to her and she was obviously concerned and worried about her place of employment. The fact that Choice A doesn’t offer consolation to relieve some of Karen’s stress means this approach was more sympathetic.

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CHOICE B took the time to share a similar experience with Karen so she felt comforted and not alone. The sharing of space and experience makes a person feel cared for.

Choice B also said they’d call Karen after the show to discuss her situation. Sharing emotions with others by imaging similar experiences and offering personal time to the other shows that this person is more empathic.

We may not always have a similar situation. But we will always have the opportunity to listen. So if choice A sounds more like something you’d say, great. But if you want people to feel as if you truly care about them, let’s strive for choice B.

SO HOW DO I GET THERE? It takes practice, and once your human curiosity spikes, you’ll start to understand the intricacies of effective communication and the emotional power you have to take personal and business conversations to an extraordinary level.

3. IT’S NEVER ABOUT YOU Just because we share a similar experience to make the other feel comforted doesn’t mean the conversation becomes about you.

It means sharing valuable time and emotions. Not taking over.

Remember: people love to talk about themselves. Let them.

1. PAUSE YOUR THOUGHTS When others are talking, some of us aren’t always listening.

We are just waiting to talk right back. Let’s hold off on our comments until the other person has finished speaking.

Now that you have identified whether you are inductive or deductive communicator in our last issue, take an empathic approach to your style this time around. In our next issue we will gel step 1, 2, and 3: emotional intelligence together and conquer future business relationships with confidence, grace, and intellect.

REFERENCES: Gutmann, A. & Thompson, D. (1996). Democracy and Disagreement. Cambridge, MA: Harvard University Press.

2. BE NEUTRAL, BE CURIOUS Instead of judging the person you’re speaking with, try sparking up a conversation first. A simple “Tell me about how you got here?” is a good starter. Once you do that, you’ll learn that caring about others lives means trust, and more open doors.

By: Adriana S. Trevino For more information on communication strategies, contact Adriana S. Trevino at: adriana@fireflyprtx.com

25

STRATEGY

3 WAYS I TO GET THE MOST OUT OF YOUR CHAMBER

MEMBERSHIP When you start a business every one has advice to give you.

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’m sure you’ve heard countless tidbits, hacks, and tips on how to ramp up your business and what you should do to grow. It seems like everyone instantly becomes a business consultant and has the answers to all of your questions. Amongst the plethora of information you’ve heard, someone might have suggested you join your local chamber of commerce. Whoever that wise sage was, if you took their advice, you made one of the best decisions in your entrepreneurship career.

In the RGV there is approximately 11 different chambers of commerce. Which one do you join and how do you get the most out of your membership? Here are 3 ways to benefit from your membership.

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STRATEGY

1

THE CHAMBER AS A RESOURCE. At the RGV Hispanic Chamber we have a strong partnership with the Small Business Administration (SBA), UTRGV Small Business Development Center (SBDC) formerly known as UTPA Small Business Development Center. These organizations provide great educational and training seminars for businesses in the community. Through them we have offered training on Payroll Compliance, Government Contracting certification, Marketing for Small Business, and other topics relevant to many business owners. As a mem-

ber a great way of increasing visibility and credibility is by presenting seminars that offer information relevant to other members.

This will only lead to more exposure for your company.

Go on and flex your business acumen, why don’t you?

2 3 GET INVOLVED. Like most services that charge a membership fee, if you don’t participate, it won’t work.

There are not a lot of people I know who join a gym and get fit without showing up.

The same applies to your chamber membership. If you get involved by serving on chamber committees, it will help you build stature in your community. As a member you can help your local chamber enhance it’s benefits by offering your services.

SPONSOR SPECIAL EVENTS. Most chambers already have a preset list of special or major events that they offer throughout the year.

Some may include business expos, luncheons, galas, golf tournaments, or fashion shows. These are great opportunities for you as a

business owner to invest some money on an event where you can acquire many new customers. Most sponsorships include a packaged deal where you are promoted before the event on all media outlets, and it may include a vendor booth where you can interact personally with potential customers. Picking the right events to sponsor can contribute to rapid growth for your company.

In retrospect the chamber is a great resource to get trained or to train some of your employees. Make sure to check out the RGV Hispanic Chamber of Commerce calendar of events to stay up to date with our workshops, seminars and major events. Participation is key, attend seminars, give seminars, join committees, offer your services and get involved. Lastly consider investing in special events, they are major factors for face-to-face interaction with customers. If you have found this information helpful we recommend you join the RGV Hispanic Chamber of Commerce.

Picking the right events to sponsor can contribute to rapid growth for your company.

By: Joacim Hernandez For more information on the RGV Hispanic Chamber of Commerce contact: (956) 928-0060 chamber@rgvhcc.com

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6

STRATEGY

WAYS TO BLUFF CONFIDENCE 30

STRATEGY

Confidence is a skill that you need to cultivate.

Even if you are normally confident, there may be situations when you feel less than sure of your capabilities. And whenever you feel less confident, there are several ways to bluff confidence.

T

here are times when even confident people feel confused or timid. When it comes to confidence, looking confident is far more important than actually feeling confident.

Many people who look incredibly confident are not exactly feeling the same on the inside. They have their own worries. They just manage to hide their worries and make themselves appear confident.

You will be able to accomplish just about anything you want if you believe that you are smart, brilliant, and capable. However, if you believe that you are not capable, then you will prove yourself right.

HOW TO DEVELOP CONFIDENCE It’s possible to develop your inner confidence. Just like anything else, it requires consistent practice. Even if you are a confident person, you may feel uncomfortable when you are in an unfamiliar situation. Here are six ways to look confident even when you are anything but.

Practice these techniques every day and you will soon start feeling confident on the inside as well. And then you will no longer have to fake it.

an important engagement.

An outfit that fits nicely will counteract some of your anxiety.

MIND YOUR POSTURE

Looking confident is easy when you have the right tools at your disposal. Look around - you will find a lot of successful professionals who use their spare time to read technology and management books. They want to keep themselves at the forefront of the latest developments in their field. Knowledge is power and ideas rule the world.

So hone your skills.

Hold your head high and stand up straight. This posture will make you look confident at all times. Your body language sends out a lot of non-verbal cues. Sitting slumped with arms folded across the chest leaves a clear impression that you lack confidence.

MAKE EYE CONTACT Look in the eye when you talk to people. Confident people are not afraid of making eye contact with others. Making eye contact is a great way to look and feel confident.

DRESS THE PART Wear outfits that fit and make you look good and professional. When you appear good, you will automatically feel good and naturally your confidence will increase. Buy a few outfits you look good in. Wear them to interviews or other important engagements. It is quite natural to feel anxious about your appearance when you have

LEARN NEW SKILLS

DO THINGS THAT YOU ENJOY DOING You don't necessarily have to engage in activities that are related to your job. Do just about anything that you enjoy doing. The confidence boost which you get from doing things that you are

talented at will help your performance in the workplace.

UNDERSTAND THE DIFFERENCE BETWEEN CONFIDENCE AND COMPETENCE Confidence does not always equate to competence. The most confident people can be the least competent. In the same way, the most competent people can be the least confident. Studies have shown that we have an unconscious urge to submit to people who look confident even if they are not supposed to be in charge.

That explains why projecting an air of confidence is important. If you look confident, you will find that people are eager to listen to you. On the other hand, if you look timid or confused, you will have no followers even if you possess immense knowledge and expertise in your field.

Many people who look incredibly confident are not exactly feeling the same on the inside. They have their own worries. They just manage to hide their worries and make themselves appear confident.

31

COVER STORY INVESTMENTS

As a trusted community lender, the bank specializes in offering flexible terms to meet a variety of needs.

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COVER STORY

LOCAL LENDING ADVICE:

R O F TIPS G N I R U C E SA RESIDENTIAL OR

COMMERCIAL CONSTRUCTION LOAN

B

Building a new property is an exciting experience, but securing financing can be a challenging process. Many people believe that getting a construction loan is difficult, and that certainly can be true in some cases.

However, with the correct approach and expertise, you can quickly get approved for a construction loan. It’s usually only a matter of proper planning and matching the right project to the right lender.

Bank of South Texas has been serving customers in South Texas for nearly 30 years. As a trusted community lender, the bank specializes in offering flexible terms to meet a variety of needs. Margaret Macias has been working with customers at Bank of South Texas since 2006. In total, she has more than 18 years of experience in the lending industry. Joe Guzman has been in the banking industry since 1997 and has nearly 15 years of experience as a loan officer. Both experts shared the following tips for anyone who is planning to apply for a residential or commercial construction loan in the Rio Grande Valley.

HOW CONSTRUCTION LOANS WORK A construction loan is a short-term loan used to pay for the cost of building a property. According to Guzman, it’s important for customers to learn the facts about construction lending. “Customers need to understand the process and be comfortable with it,” he says. “It’s my job

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COVER STORY to facilitate that.” Customers can think of a construction loan as a large line of credit that only lasts until the property is built. The borrower periodically draws from the loan during the construction process and only pays interest on the outstanding balance. When the building process is complete, the borrower must secure permanent financing to pay off the construction loan.

DEVELOPING YOUR CONSTRUCTION BUDGET According to Macias, the very first step in planning the construction of a new property is determining your budget.

“It’s critical to develop solid plans to ensure success,” she says. “Before starting a home construction project, it’s a good idea to establish a budget plan to help maintain costs.” Calculating your spending limits and developing a preliminary budget estimate will go a long way towards facilitating the entire process as you prepare your plans and specifications. With information about your monthly income and debt obligations, a qualified lender can help you work backwards to determine out how much you can afford to borrow.

PREQUALIFYING FOR PERMANENT FINANCING While a construction loan isn’t necessarily more difficult to obtain than a traditional loan, it can be a more complicated process. From the lender’s perspective, a construction loan is a short-term, high-risk investment. The bank is lending money for something that will be constructed, with the assumption that it will have a certain value when it’s finished. To help offset this risk, most construction lenders have strict qualification criteria for construction loans. That’s why prequalification is an important step in the process.

Getting pre-approved for permanent financing is a great way to start the construction loan process. A mortgage lender can help you determine the amount you qualify for, what your costs will be, and what payments you can expect. “It’s beneficial to go to a mortgage lender because you can get a 30-year fixed rate,” says Macias. As you go through the process, you’ll need to provide information about your income, cash, and assets. You’ll also need to report any debts or liabilities, including credit card

34

payments, car loans, and student debt.

Most lenders also want to see your two most recent paystubs, bank statements, and tax returns. If you don’t have a mortgage lender, don’t hesitate to call Bank of South Texas for assistance.

SELECTING A BUILDER Constructing a property could be one of the largest financial decisions you’ll ever make. With so much at stake, you certainly don’t want to run into problems that could have been avoided by properly investigating the builder. That’s why selecting a builder is a critical consideration. It’s important to hire an accomplished builder with the right expertise.

At the beginning of the process, be sure to ask for references and verify their licensing and qualification claims.

You can also check with the Texas licensing body and the Better Business Bureau to see if any charges have been registered against the builder. Find out how long the builder has been constructing custom homes in the Rio Grande Valley area. Longevity is an important indicator of work quality and customer service.

Find a thorough design checklist and use it when meeting with prospective builders. Asking about locations, price

A mortgage lender can help you determine the amount you qualify for, what your costs will be, and what payments you can expect. www.businessadvisermagazine.com

COVER STORY

Our loan officers are incredibly accessible.

We can provide you with a one-on-one consultation to guide you through the whole process.

It’s critical to choose a bank that has local experience in construction lending and an excellent reputation among builders and customers. Bank of South Texas has gone to great lengths to become the best construction lender in South Texas by providing customers with superior products and services. “Strengthening the communities we serve is fundamental to the future of our business,” says Macias.

“As we grow, our roots remain in local communities. Our work with communities spans the spectrum from consumer and commercial lending to investing and promoting economic development.” ranges, and materials they specialize in will help you evaluate the builder’s expertise with regard to your needs.

Be sure to look for a contractor who builds the specific type of home you want to build. Builders have different areas of competency, so it’s important to chose someone with the proper experience. Personal references can be one of the best ways to identify good Rio Grande Valley home builders. Ask satisfied homeowners in the area for recommendations. Talk to recent customers of the contractor you are considering because getting feedback from actual customers is very important.

APPLYING FOR A CONSTRUCTION LOAN Choosing a construction lender is a very important part of making your dream a reality. Bank of South Texas has experienced construction lenders, flexible loan options, and the customer service you need. “When you’re ready to apply for a construction loan, come see us at Bank of South Texas,” says Guzman. “Our loan officers are incredibly accessible.

We can provide you with a one-on-one consultation to guide you through the whole process.”

After applying for a construction loan, waiting for a decision can be frustrating.

Many banks can take weeks or months to respond with a decision. Bank of South Texas is known for offering a quick response period. “We typically get back to the customer within 3 business days,” says Guzman. “You will deal directly with local decision makers because all of our loans are serviced locally. Our employees have years of experience to provide you with solutions without the hassle found in bigger banks. Our seasoned commercial lending staff is well versed in all aspects of construction lending.”

Once you’re approved, Bank of South Texas will work with your builder and mortgage lender throughout the construction process. According Macias, there are countless reasons to choose Bank of South Texas for your construction loan, from local decisions to great rates and fair terms. But the biggest reason is the outstanding staff. “Our best-in-the-business team of loan professionals is ready to assist you every step of the way,” says Macias. “We excel at treating customers the way they want to be treated. If you’re interested in a residential or commercial construction loan, we’d love to meet with you at your nearest branch.”

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FINANCE

PERSONAL

CRISIS

WHILE RUNNING A BUSINESS? HERE IS HOW TO DEAL WITH IT

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FINANCE

“Life is not a bed of roses,” the saying holds true for each person living on this planet.

things are taken care off at the business front while you are handling your own personal crisis. Identification of a trusted person plays a key role while preparing your backup; make sure that you completely trust this person, else it can even ruin your business.

n your easy and smooth lives, there can be times when you may be hit by an unexpected news and your life might come to a halt. Nothing is completely impossible – it might be a health problem or another major issue on the personal front. That’s the time when your business takes a backseat and your focus gets completely diverted to the crisis you are going through in your personal life.

MAINTAIN A TO-DO LIST

I

Even during the time of personal crisis, you need to get a tight grip on your business and keep it afloat, because your business is also your responsibility and you cannot let go of it so easily.

Here are some key tips that can help you manage your business while facing a difficult situation at personal front.

KEEP A BACKUP READY Identify a trusted person – be it an employee or your partner, and train him to take your responsibilities when you are away. Keeping a backup ready will always ensure that

Maintaining a to-do list and keeping your tasks organized on a daily basis will not only help you manage your business easily during regular days, but also when your life is taking you through a roller coaster ride of difficult situations.

DO NOT LET YOUR HEALTH TAKE A BACK SEAT While handling a tough situation in your life, you easily tend to give the least importance to your health.

Skipping meals and not taking adequate sleep become a daily routine during tough phases of life. Improper diet and inadequate sleep deprive you of the energy that is needed to face the difficulties you are going through.

If you are physically fit, only then you can fight the problems you’re facing.

MAKE USE OF TASK MANAGEMENT TOOLS In today’s era of technological advancement, a lot of task management and scheduling software are available that can make your life easier. You can make use of such software to send timely alerts and reminders for important tasks that might slip off your mind while you are dealing with the crisis at personal front.

TAKE HELP OF A SUPPORT SYSTEM There are times when you are running your business alone, and all of a sudden you find yourself surrounded by a serious personal crisis. In such situations, it is always a good idea to take help from your friends and relatives who have some experience in your line of business. You can even take professional help by hiring someone who is a master in your field of work.

BE OPTIMISTIC Having a positive attitude towards life can get you out of even the worst situations in life. Being depressed will lead your business nowhere.

Believe in yourself and keep telling yourself that you have the ability to overcome even the worst of the situations.

Attitude is the key – have a great attitude and keep going.

STAY AWAY FROM GETTING DEPRESSED Your life comes to a halt when you are hit hard with a serious personal crisis.

You tend to fall into grave depression and you may even stop socializing. Such an attitude can give a major blow to your business.

Depression is a major factor which has ruined even the most flourishing businesses.

Overcoming depression is in your control – force yourself to go out and meet new faces.

Don't let depression eat up your business.

POSTPONE INVESTOR MEETINGS If you are dealing with your personal matters and have an important meeting at the same time, it is always a good idea to postpone that meeting. No matter how hard you try, you will not be able to pay complete attention in the meeting because of the crisis you are going through at the personal front. Rather than making a bad impression on your clients (thereby negatively impacting your business), it is better to first resolve personal matters.

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MANAGEMENT

BEING LATE SENDS VERY WRONG SIGNALS ABOUT YOU

Punctuality is nothing short of a virtue. When you turn up on time, you are implying that you respect others and their time.

P

eople who possess basic manners are more likely to be punctual. Chronic latecomers, on the other hand, lack character or manners.

When you are running late, you are sending out many negative messages. A lot of people assume that if a meeting is supposed to start at 10 o'clock, they can turn up at any time that starts with 10. So they walk in 20 or 30 minutes late and smile at those who have been waiting for them. Some of them don't even feel the need to say sorry. They assume that it is okay to be late, but it isn't.

Do you know what happens when you make 10 people wait for 20 minutes? 200 minutes are wasted. Do you know how much that costs the business? Interestingly, in many cases, these latecomers

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are the ones who requested the meeting. They probably want to sell something to you, or they may need your help with something. Do they really stand a chance now that they have made you wait? Will you buy from people who make you wait?

When you make people wait for you, you are being rude, inconsiderate, and selfish.

It is true that we lead 'busy lives'. Who isn't busy? This is no longer an excuse that you can use. When you arrive late and claim that you were

busy, the message is clear: you don't think that other people’s time is as important as yours.

CAN WE ALWAYS TURN UP ON TIME? No, even with the best intentions, sometimes you may run late. You might have left your home early, but you could still get stuck in the traffic and arrive late. We can't control all that happens to us.

However, when you 'plan to be late', there is a problem.

When you arrive late and claim that you were busy, the message is clear: you don't think that other people's time is as important as yours.

Of course, being late once in a while is not an unpardonable offense. But you have absolutely no excuse for being habitually late.

Serial lateness is a major character flaw. You don't perhaps realize this, but it can even affect your relationships and career prospects.

If you never arrive on time, you may never get hired or promoted. Also, people who value their time will not count you amongst their true friends.

We all get late sometimes – it is not intentional. Life happens and things don't go your way. On those particularly crappy mornings or evenings, you can't perhaps help being late for a meeting or interview. But are you the only one life happens to? It happens to your colleague too. And they still manage to turn up at the scheduled time. Only you are late be-

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MANAGEMENT

cause things didn't go as per your plans. What does that mean?

Do you want others to think that you are a victim who has absolutely no control over what is going on in your life?

Some people make others wait because they want to show that they are more powerful than those poor souls waiting for them. Unfortunately, this is not the best way to show your authority.

When you constantly turn up late, you are destroying your relationships. This is particularly true in the case of new relationships. According to an essay published in the New York Times, Americans spend about 37 billion hours per year waiting in queues.

Waiting is a torture – it can cause stress, boredom, frustration and that nagging feeling that your life is slowly slipping away. You will probably not want to make anyone feel that way.

When you are late and keep a friend or colleague waiting, here is actually what you are saying. “My time is a whole lot more important than yours. After all, I am busy because I have got more important things to do.” You will probably not say these things to them. So why imply them by being late and keeping them waiting?

If you are certain that you will be late, text or call ahead and let them know that you will be late. Tell them

When unfortunate circumstances force you to make changes to your schedule, be accommodating to people to whom you have made a commitment. exactly when you would be able to turn up. Give them the option of rescheduling or waiting. Don't assume that they will have no problem waiting patiently for another 20 or 30 minutes. If time is important for you, it can't be unimportant for them.

It is true that we don't have control over all that happen

to us. Sometimes life just happens and upsets our plans. In such situations, you can decide how you should react to it. When unfortunate circumstances force you to make changes to your schedule, be accommodating to people to whom you have made a commitment.

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STRATEGY

HOW TO AVOID OVER

COMMUNICATION

E

mail has made communication easier, but it hasn't necessarily made us more productive. An average worker checks his emails every two minutes.

Most of us are addicted to emails and experience an irresistible urge to check our inbox even when we don't expect anyone to write. It isn't surprising then that the email has become the biggest time suck at the workplace.

If you really want to maximize your team's productivity, you should find ways to help them break off their inbox romance.

THINK BEFORE YOU HIT 'SEND' Every week an average employee receives over 300 business emails. Business executives receive many more. In fact, many of them spend more than 90 minutes per day reading and replying to emails. The best way to reduce the time wasted on office communication is to think twice before hitting that send button. Do you really have to send that email to all of your employees?

Keep in mind that with just one click, you may be wasting hundreds or even thousands of employees' precious time.

Ting!

That must be a new email‌

WHY YOU SHOULDN’T ENCOURAGE OVER COMMUNICATION Communication increases productivity, right? Yes, but over communication is counterproductive, so you should find ways to communicate less using better tools. Here are a few ways to accomplish this.

Practice writing shorter emails that are to the point.

Make sure that your verbal communication is also brief.

State only the facts. You don't have to sugar coat an answer.

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STRATEGY

COMMUNICATE IN PERSON Interpersonal communication can be far more effective than email communication. When we communicate in person, our body language and facial expressions convey a lot of nonverbal cues. Emails lack this power. Worse, they can even get misinterpreted.

And when they do, you will have to spend extra time to clear the misunderstanding.

So encourage your people to communicate more in person.

SET UP AN INTERNAL IM SYSTEM Before implementing any communication strategies, ask your team about their preferences. Employees who don't want to stick to email formalities may find texting easier. They might benefit from an internal instant messaging system.

USE YOUR MEETINGS WISELY Meetings also waste a lot of time. They are important, but if you have multiple meetings

every day, you will probably not have enough time to take care of other aspects of your business. On the bright side, when meetings are used wisely, they can help reduce the need for email communication.

Hold meetings only once a week. You can discuss important topics such as policy changes and company finances during these occasions.

An advantage of holding meetings is that in just a few minutes, you can get everyone informed.

BE BRIEF Some people simply hate to receive long emails, no matter how important the subject is.

Therefore, be brief and to the point. Understand that people generally don’t have the time or patience to read long winding stories.

Some people will probably want to know all the details.

It’s a good idea to follow up with them later and provide additional information on a need-to-know basis.

Effective communication has obvious benefits. It will align teams and ensure the

smooth flow of work. When people receive too many emails, they will begin to ignore them. Unfortunately, sometimes even important messages get ignored.

WHAT EXACTLY IS OVER COMMUNICATION? People over communicate when they provide a lot of irrelevant details. When we communicate, we often add more information than necessary. Too much information unfortunately does not help anybody. In situations where a one-word reply would suffice, do not write several sentences. When you provide unnecessary details, you are wasting your time as well as their time, so don't do it.

WHY DO PEOPLE OVER COMMUNICATE? Sometimes people over communicate because they do not want anybody to accuse that they didn't supply the needed information. The real prob-

lem is that they can't separate needed information from superfluous information.

What can be done: Are you among the people who over-communicate? You need to brush up on your communication skills. People who are afraid of leaving out key details may also provide unnecessary details. Some people may also over communicate to show off their expertise or knowledge. In any case, this is not a practice you can encourage.

Over communication usually occurs in the workplace, but sometimes it also happens in our personal life.

Effective communication enhances your team's productivity. The wrong kind of communication, on the other hand, just wastes time. Keep in mind that just because you communicate all details, you are not a good communicator. Cut out the unnecessary details and communicate the right message in the right way at the right time. If you are used to supplying irrelevant details, you will need some practice to master these techniques.

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MARKETING

HOW TO CONDUCT MARKET RESEARCH WHEN YOU ARE ON A BUDGET B So you’ve got a great idea – you should certainly act on it.

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ut before you launch a product based on that idea, you need to ensure that there is a market for it. Even if you are on a tight budget, you must not overlook the importance of marketing research.

pectations of your customers.

This allows small businesses to change their marketing model, delivery methods, or package design. By simply tweaking their designs or promotional methods, they will be able to reach a larger market. That is the benefit of researching the market.

Marketing research allows you to see what kind of new products or services are more likely to be profitable. If you have already launched your products, marketing research will tell you if you are meeting the ex-

Launching a product without doing market research is a bit like driving without a road map. There is no guarantee that you will reach your destination. A well-planned marketing research plan

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from existing and potential customers. It is possible to hire someone to collect this information via surveys or other methods, or you can collect it yourself.

will show you where your customers are and what they expect from you. It will also show you when they are more likely to buy your products.

HOW TO CONDUCT MARKET RESEARCH Many businesses neglect this important first step because they are not interested in hearing any negative feedback. They are passionate about the idea they have stumbled upon and don't want anyone to tell them that there is no market for that. So they just go ahead and launch the product. Unfortunately, many times, such products fail in the market.

Some entrepreneurs neglect marketing research because they are on a very tight budget. They don't have money to spend on research. They don’t feel the need either because they are confident that their product is going to be a winner.

MARKET RESEARCH METHODS When conducting market research, you will collect two kinds of information: primary and secondary data.

Primary data comes directly

Secondary research involves collecting statistics, studies, reports and other information from government agencies and trade associations etc. Big corporations spend millions of dollars to research the market. Small entrepreneurs who don't have a big budget also have access to plenty of free information. How to obtain this information? The internet and your local library are great places to begin your research.

Librarians at university and public libraries will be able to show you the right direction. ThomasNet and Harris InfoSource All-Industries and Manufacturing Directories are two important resources to look for. They will help you to target businesses in particular industries.

The Statistical Abstract of the United States will help you find valuable information about consumer markets.

Reference librarians may also be able to suggest other resources.

ASSOCIATIONS Your trade association may be able to offer valuable information like list of members, market statistics, reference materials and books. Talking to other members of your association is an informal way to collect valuable information. Most trade associations offer free information.

Launching a product without doing market research is a bit like driving without a steering wheel.

Heinz have tasted failure by launching products without conducting market research.

Working with a marketing research company can be both time consuming and expensive. Here are some more affordable ways to collect more information.

Read magazines and journals published by your trade association. Publications aimed at your customers may also help you find current and future buying patterns and trends.

Don't ignore new magazines.

They provide information about new businesses and products on the market.

GOVERNMENT AGENCIES Government agencies also provide useful information for free. Nearly all countries publish population density figures. These figures show the number of people living in particular areas. You should ideally target localities where the population is increasing.

The U.S. Census Bureau publishes plenty of free business information. You can find most of this information on the internet.

When products hit the market without proper research, they are more likely to fail. Even big brands like Colgate and

INTERVIEW CUSTOMERS AND PROSPECTS This may cost nothing.

Ask potential customers what they think about your products. This will throw up many surprising details. Most customers are willing to be interviewed. Ask them. They will offer priceless insight into what they like and what they don't like about your products. It is impossible to interview all customers, but when you select random people and ask them what they want or expect from a company like yours, you will definitely get a better sense of direction.

HOW TO FIND PEOPLE THAT YOU CAN TALK TO There are several ways to do this. If you run a software company, you can ask your beta testers to be your interview subjects. You can also ask your followers on social media to join you in a conversation.

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FINANCE

DON'T HAVE MONEY?

G N I K A M E R A MAYBE YOU S E K A T S I M E S THE

With the age of the startup truly upon us, more and more entrepreneurs are being drawn to start their own businesses. However, some of you may be stumped when you find out that your business isn't doing as well as you expected it to.

W

hile the title seems a bit surprising, what’s more surprising is that no matter which situation you are in, there are some major reasons that account for your cashless state. With the age of the startup truly upon us, more and more entrepreneurs are being drawn to start their own businesses. However, some of you may be stumped when you find out that your business isn't doing as well as you expected it to. This may arise due to a number of factors, including bad timing and a lack of foresight. Here are eight reasons why you don't have the money you thought you would.

1. YOU DON’T HAVE A PLAN If you don’t have a direction, it can prove disastrous to your finances. Understand your business and have a clear goal that specifies where you see your business going in a year from now. Calculate how much money it would take to get your business to that level and then create a plan for the same. When establishing a small business, every financial mistake will remain with you for the rest of your life. While you can never be truly immune to every crisis that may arise, some effective planning can take you far. Define shortterm and long-term goals for your business. A business

plan should involve a breakeven analysis, cash flow analysis, and financial forecast among other components.

2. YOUR INCOME ISN'T BEING TRACKED If your income is consistently lower than the amount you pump into your business, then something is clearly not working right. Small businesses rarely enjoy a stable income when they start out.

Make a practice of maintaining a regular record of your income, no matter how small.

This will help you plan and meet your expenses efficiently. Track your expenses and you'll find yourself tightening the belt wherever required.

3. WORK ISN'T BEING DEFINED Not knowing how to structure your business can prove detrimental to its financial health. Choosing the ownership structure is important as it will determine the liabilities and risks of your business. Small businesses tend to be overenthusiastic about their ventures. Have a clear idea of what your business seeks to offer and do not offer services that you cannot truly deliver. Delegate your tasks to ensure that every aspect of your work is taken care of by the right people. While you may think you can take on all the responsibilities by yourself, hiring individuals to work on

FINANCE different functions is often a more practical and effective solution.

4. YOU AREN'T TRACKING PROGRESS You should have a set of metrics to help you gauge the performance of your business. Success is seldom defined by money alone.

Your products may be selling like hot cakes, but if you do not regularly monitor your business, you may end up paying more than you earn. You need to carefully allocate resources to avoid overspending.

5. YOU MAKE QUICK DECISIONS Do not make hasty decisions without first conducting adequate research. Right from starting your business,

remember that every decision you make will affect the success of your business. Every opportunity has both positive and negative points, each of which must be considered before making a decision.

6. YOU HAVE UNREALISTIC EXPECTATIONS Despite what advertisements on the internet may tell you, no one gets rich overnight.

Making money is a long and difficult process. Just because your friend's cupcake business is doing well, doesn't mean yours will too. Every business is unique and comes with its own set of challenges. Do not give up if you think your company is not making enough money. Analyze successful businesses and emulate their positive points if you're looking for inspiration.

7. YOU AREN'T BUDGETING Do you really need that new and expensive gadget for your office? Is it worth closing a deal with an advertiser who is stretching your budget?

You'll never know unless you have a budget to begin with.

Once you make a budget, be sure to stick to it. That being said, do not let this make you averse to risk taking. Learn to budget your fixed and variable costs. With some basic accounting skills, you can monitor your business' progress without professional help. Cost cutting needs to work in tandem with enhancing revenue if you want your company to make money.

8. YOU ONLY FOCUS ON THE BIG PICTURE While keeping your eye on the prize, do you often overlook the little things that happen along the way? Your initial investment will diminish after some time. What then? Keep an eye out for miscellaneous expenses and overhead costs that will rear their heads as your business grows. If left unaccounted for, they could significantly eat into your hard earned profits. Be regular with taxes and other payments. Do not neglect your resources - this could include your employees or even your company assets.

Always have a backup plan to keep you going if things do not work out.

MARKETING

MARKETING TACTICS THAT COST

TIME , NOT

MONEY

Who said that you always need a marketing professional to help push your product?

F

orget your budget constraints and take matters into your own hands by making use of some of these creative tactics that won't cost you a dime.

1. HOST A WEBINAR

Be it training, promotion, or even introducing new technology, webinars allow you to disseminate information about your products or services across geographical boundaries. Seek out other players in your industry who might be interested in conducting joint webinars.

2. START A BLOG If you don't already have one, start a blog related to your industry. Make use of platforms like Wordpress or Blogspot to get started. Make sure you post content regularly to keep it fresh and alive.

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3. CROSS PROMOTE Smaller businesses tend to team up with other companies to engage in cross promotion which is mutually beneficial to both parties. However, this is not done with immediate competitors, but rather with complementary businesses. For example, a jewelry designer can collaborate with a fashion house.

4. COMMENT ON BLOGS (RELATED TO YOUR NICHE) Monitor the internet for blogs and websites that relate to your industry. Not only will this keep you updated, but will give you a taste of the kind of audience you need to reach out to. Use the comments section on blogs to promote your own brand. However, you need to be smart about it and weave it into a comment. No one pays attention to just the link, or blatant advertisements.

5. RUN A CONTEST Social media contests are both cost-effective and a great way of engaging audiences. The prizes on offer need not be

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expensive items. Even movie tickets can draw interested participants. Collaborate with local contests and events to see if your products or services can be given away as prizes – a means to promote your business.

10. UTILIZE SEO

6. UPSELL EXISTING CUSTOMERS

11. LISTEN TO CUSTOMERS

Target your existing customers and market your products to get them to either upgrade or enhance their purchases of your product. For example, if a customer attempts to buy a cell phone, present him with other cell phones with varied options that might be expensive.

7. TALK TO YOUR FANS Engage with your audiences, either online or offline. It is important to understand that people do not like being reminded that they are the source of your revenue.

Try and build a connection that goes beyond the product. This will seek to enhance your brand reputation.

8. CREATE AN EXPERIENCE, NOT A PRODUCT With audiences being bombarded with advertisement after advertisement, it is the experience and not the product that makes a mark. Purchase of a product has an emotional connect. Learn to appeal to the needs and emotions of your customer while effectively putting across how your product can improve their lives.

Attracting potential customers to your website involves engaging in SEO techniques.

Learn SEO tools to identify the terms that are most relevant to your business and then weave them into your content.

Stay connected to your customers by providing them with avenues to reach out to you. Address concerns with quality and strive to provide after sales care whenever possible. Learn how to listen to and deal with criticism, as your mistakes will help you improve your services.

12. CREATE INFOGRAPHICS Use infographics to distill complex information, or to even present text heavy information in a fun and interactive manner. Not only are these easy to understand, but you'll find that they are highly circulated. With the right kind of branding, your unique infographic might help take your brand places.

16. RECORD A WEEKLY PODCAST Add a weekly or fortnightly podcast to jazz up your blog. Seek out people related to your industry and interview them to create interesting clips for your audiences.

17. APPLY ONLINE FOR BUSINESS AWARDS Enhance the business experience for your customers by putting a reward system in place to keep them coming back for more. For example, your 10th customer of the day gets a 10% discount on your products.

18. LIST YOUR COMPANY ON GOOGLE MAPS Audiences need to be able to know exactly where your business is located. Make sure your business is visible on Google maps. You can edit your business listings to add information to include details like office hours and additional phone numbers etc.

19. CREATE A LINKEDIN GROUP 13. RECYCLE OLD CONTENT Your existing content can be re-purposed to form new content. For example, you could compile your blog posts into an ebook or create tutorials out of your webinars. Use your old product descriptions to chronicle how your company has evolved.

The options are endless.

14. UTILIZE FACEBOOK Use Facebook and other social media platforms to promote your business. Create and maintain dedicated networks on each social network in order to reach out to larger audiences and to facilitate instant communication.

9. BUILD AN EMAIL DATABASE

15. WRITE HOW-TO ARTICLES

Make sure that visitors to your website sign up by offering them either discounts or other freebies. This will help you build an email database that you can then use to directly address your marketing emails and promotions.

Populate your business blog with how-to articles. These could be in the form of text or even video tutorials of products relating to your business. For example: A bakery blog can write about a recipe or two of some of its offerings.

LinkedIn is a great space to enhance your professional network. Join groups, strike up conversations, and get into the practice of recommending other businesses in order to build your own network, while drawing attention to your brand. Set up a LinkedIn group for your business and target market. For example, a business that deals with handmade soap can set up a group in order to connect with other similar businesses.

Your existing content can be re-purposed to form new content.

20. CREATE FRESH, SHAREABLE CONTENT Strive to be creative with your content.

Viral content is seldom a matter of luck, but is a result of effective strategy and quality of content. Creating compelling content is a cumbersome task but this content can help elevate your brand to impossibly high levels.

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TAXES & LAW

When Creating a Startup, Watch Out For All the

Fees and Taxes S etting up your own business is not an easy task.

Besides the capital, time, and effort that goes into establishing a startup, new entrepreneurs also have to cough up taxes and other payments that the law demands. It is important to keep aside a buffer in your bank account in order to meet the expenses that you will encounter on your startup journey. While business expenses may be tax deductible, they are balanced out by a number of other amounts that you need to account for.

Taxes will depend on your choice of firm. Limited Liability Companies (LLCs) and S corporations are exempted from paying taxes at the corporate level while C corporations can be taxed twice – at the corporate and the shareholder level.

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It is important to keep a buffer in your bank account in order to meet the expenses that will be thrown your way.

Depending on the geographical location of your business, you may need to procure a business license for your startup, which may entail annual renewal fees. Sales tax is applicable on the products you sell and you may also owe taxes on the assets your business owns.

When working under with an established firm, employers are required to set aside a

certain percentage of your paycheck for medical and social security payments. However, when you are your own boss, you are expected to still keep these amounts aside. This is an annual amount that is submitted along with your tax return.

If your firm has employees, you are expected to cover their social security and medical cover, besides unemployment insurance and worker's compensation, depending on the labor laws in your location.

Remember, taxes will vary depending on the contract of your employees.

Keep aside an amount from your income for estimated tax payments. This can be calculated as 100% of the tax you owed during the last financial year or 90% of your estimated taxes in the ongoing year.

First-time entrepreneurs can use the estimated tax formula provided by the IRS form 1040 ES to calculate your tax liability based on your quarterly income. Make sure you pay your taxes quarterly to avoid massive year-end bills.

While you may feel at one with your enterprise, remember to distinguish between personal and business finances in order to avoid legal ramifications as well as complicated accounting.

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INVESTMENTS

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