Issue 7 COMPLIMENTARY COPY
THE SECRETS to Becoming a Successful Sales Manager
Startups
Three Lessons From the Hotbed of American Innovation
TOP LEVEL DOMAINS the Game Is Changing LIABILITY PROTECTION AFTER INCORPORATION
David
Armstrong
Finding The Efficient Solution
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IDEAS TO HELP YOU SUCCEED IN SOCIAL MEDIA
Efficient Ways of Motivating and Mentoring Your Sales Force How to Save Your Business from Bad or Dull Publicity
Our Team
Editor’s Letter
STAFF
EMPOWERING SMALL BUSINESS
Andrew Yoo Maggie Yoo Oriol Zertuche John Amour
ADVISORY BOARD MEMBERS John Amour David Armstrong Alonzo Cantu Alfonso Cavazos Janet Cavazos Enrique Garza Marco Garza Albert Lopez Dr. Arturo Lopez Shavi Mahtani George Myers Dr. Teofilo Ozuna Carol Schmitt Oriol Zertuche Andrew Yoo Maggie Yoo
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,
The Greater Mission Chamber of Commerce is a contributing member of Business Adviser Magazine.
Andrew Yoo, CEO & President andrew@businessadvisermagazine.com
In This Issue
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WHY YOUR ORGANIZATION NEEDS TO IMPLEMENT EMV
THE SECRETS TO BECOMING A SUCCESSFUL SALES MANAGER
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CAN I GET FINANCED IF MY CREDIT SCORE IS NOT PERFECT?
HOW TO SAVE YOUR BUSINESS FROM BAD OR DULL PUBLICITY
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CROSS BORDER SUMMER TRAVEL DESTINATIONS
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OKAY, SO I NEED LIFE INSURANCE. NOW
WHAT?
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FIVE WAYS IN WHICH INTROVERTS CAN BE GOOD AT NETWORKING
EFFICIENT WAYS OF MOTIVATING YOUR SALES FORCE
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CONVERT ANGRY CUSTOMERS INTO BUSINESS PROMOTERS
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STARTUPS THREE LESSONS FROM THE HOTBED OF AMERICAN INNOVATION
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TOP LEVEL DOMAINS THE GAME IS CHANGING
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DAVID ARMSTRONG FINDING THE EFFICIENT SOLUTION
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FIREHOUSE SUBS PUBLIC SAFETY FOUNDATION
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INCORPORATED, GOOD… NOW CHECK THESE 4 THREATS WHICH CAN STILL HARM YOUR LIABILITY PROTECTION
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FOUR IDEAS TO HELP YOU SUCCEED IN SOCIAL MEDIA
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BUCKNER INTERNATIONAL MANAGING CASH FLOW IN RETIREMENT
INVESTMENTS Committed to Building on a Foundation of Trust, Innovation, and Service.
Experience
Rilemar Difference
the
“For by grace are ye saved through faith…” Ephesians 2:8-9 956-648-4093 www.RilemarCustomHomes.com /RilemarCustomHomes
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@RilemarHomes
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FINANCE
Why Your Organization Needs to Implement EMV EMV – the term is getting popular and you might have heard about it. It is considered a safer option than “regular” magnetic strip credit cards. WHAT IS EMV? EMV stands for Europay, MasterCard, and Visa. It facilitates interoperation of cards that have an IC chip in them. EMV cards are replacing traditional credit and debit cards in many parts of the world.
HOW DOES IT WORK? EMV uses the code that is embedded in the chip on the card. Any typical EMV works in these steps: Contact: The cardholder touches the chip of the card
to the reader. However, in contactless EMV, the user just has to wave the card in front of the reader (within a distance of 4cm). Encoding: The reader powers the chip, which allows it to access the encrypted information. This generates a cryptogram which is sent for verification to the processing host. Decoding: The host processor decodes the encryption and verifies the EMV, then it sends an authorization cryptogram that allows the transaction. After the process has been done, the merchant verifies the signature of the card holder to validate the transaction. The chip based EMV card system makes both offline and online card transactions more secure. EMV cards come with an IC chip that eliminates the magstripe swipe. It uses oncard encryption.
WHY SHOULD YOU IMPLEMENT EMV? Besides Canada, countries in Europe and South America have already implemented the EMV system. EMV adopters in Europe saw a 67 percent decrease in card related fraud during the very first year of the implementation of the system. Participants in Canada have also reported similar success. Meanwhile, there is a substantial increase in card
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related fraud in the US. The country has been slow to implement EMV. Needless to say; card frauds, identity thefts, and data security violations grabbed a lot of headlines in recent times.
the difference. Since EMV will have an impact on the customer experience, all companies should develop a plan to implement it.
HERE’S WHY YOU SHOULD EMPLOY EMV:
The first step in implementing EMV is learning about it. The next thing to do is to contact your merchant service provider. Before you can get the EMV technology, you need a merchant account with a Business Payment Systems that offers secure card reading service. After your application is processed, you need to buy an EMV card reader, which works using a phone line. For more details on investment and scheduling of EMV implementation, discuss with your financial organization.
Since internet based online payment systems are always under attack, we need stronger security measures. Any institution that hasn’t implemented the effective multifactor authentication method is at risk. Events like Target data breach further exposed the vulnerability of the existing system. Luckily, the situation is improving as more institutions have recognized the advantage of EMV. EMV is being rolled out in the US, and will become the major card technology in the year 2015. Presently, about 1%-5% credit cards have EMV, and you should prepare yourself because the EMV adoption is going to skyrocket in the coming years. Last year; MasterCard, American Express, Visa, and Discover began to roll out the EMV rules. These rules have had an impact on transaction processors, merchants, issuers, and just about everything that is directly or remotely associated with the transaction. EMV isn’t only about a card with a built-in chip. It is the technology that makes
HOW TO IMPLEMENT EMV?
CONCLUSION Offer your customers a safe environment for financial transactions. More and more people will adopt EMV in the coming years. Are you ready for EMV enabled customers? Those who adopt the system early will have an edge over those who are late to the party.
EMV is a smart and more secure technology than traditional processing methods. www.businessadvisermagazine.com
INVESTMENTS
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SALES
You’d be things th surprised at t between at can make ahese little unsucce a successful ll the differenc e out wha ssful sales maand an t the exp n erts saya. ger. Check
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SALES
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ost organizations have a mentality that the skill sets of a best performing executive and a good manager are same. And mostly, once these basis distinctions are done; if you’re the highest performing sales person, you have all the traits of a tactful sales manager! Now, the thought behind this idea does have some decent logic. But the idea also has one aspect, highly critical in nature, which many fail to see. The transformation from being a top sales performer to becoming a successful sales manager is not at all easy. People who consider it easy are often mistaken.
SO WHAT IS THIS TRANSFORMATION AND WHY IS IT IMPORTANT? The logic and expectation behind promoting top salesperson is simple: cloning the top performer. If a top performer takes the position of a sales manager, they would obviously have the entire team work on their strategies using all the best known methods. So that would get the company more top performers, right? The answer can be a ‘yes’ only if the performer is trained and molded to understand certain basic sales management principles.
UNDERSTANDING THE NEW MANAGERIAL ROLE AND ITS CHALLENGES
involved. They shouldn’t be dragged; instead they need to follow you. You have to think of options such as incentives (and all the different kinds of incentives). Study the reports of overall sales performances. Based on your observation and analysis, structure and organize sales campaigns. Breaking one big goal into small targets often does the trick.
COMMUNICATING AS A SALES MANAGER Once you become a sales manager, your team expects a different mode of communication. The chitchat near the coffee machines, briefings, debriefings, and long meetings are not enough. They need a more formal and more visible form of communication. One-to-one performance review sessions – this is the communication which teams look forward to. The knowledge that you (the sales manager), are closely observing their performance and noticing their efforts, makes them feel secure and valuable. The feedback that you give here is considered as the official expectations set by you. You need to conduct these sessions timely and effectively. Also, these sessions are great opportunities for connecting with your team at an individual level. Coaching on best practices can also be handled during this time as you have the maximum attention of your audience.
Many people don’t share their knowledge, fearing that they will give away their trade secrets. Remember, when it comes to knowledge, sharing is gaining.
When you are a sales executive, you have to manage only yourself. But when you are a sales manager, you have to handle your team and yourself. For this, you need to work on yourself to be a coach and a strategist. Sales managers can’t just lay instructions and roadmaps; they need to train their team to use performance oriented methods. But these training sessions need to be conducted as a coach and not forced as a dictator. When a person is promoted from within a team, the perspectives of their colleagues change. Situations often get tricky, but here’s where able sales managers display their true potentials. They spend time to understand the system behind the sales processes and the strategies set by their organization. They chalk out targets and plans aligned to their company’s vision. They make sure the processes are in place and executives are in alignment.
SHARE WHAT YOU ARE GOOD AT Being one of the top performing sales executives, you have learned the methods that turn potential leads into business providing customers. After your promotion, your company expects you to impart these methods to your team. But the imparting task needs to be done by making the teams feel
STRATEGY PLANNING
Strategy planning is not about setting ‘numbers to achieve’. The numbers are for the sales manager and more for the higher management. For the team, the planning needs to have other elements. For example, if your company is marketing a vast range of products, your sales team needs to understand their priority queue. Also, if you are handling sales of a single product, your team needs to understand how much time should be spent on different types of leads. Targets and goals must bind with a well-established timeline. Supervision of the multiple small activities carried on daily basis is extremely important. You need to constantly check the results of your strategies. If targets are frequently missed, then you need to identify the source- is the team lagging behind, or does the strategy need a fixture? At times, the market conditions are not suitable or in favor of certain industries. Strategies for such scenarios should be focused on taking fewer damages as possible. Set realistic targets, because doing otherwise easily demoralizes the team members.
PRE-SALES Work closely with your team on all pre-sales activities. Assist your team in segmenting the leads
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SALES
they are following. Explain them the relation between potential customers and types of follow-ups. Train them on the rhythm of aggressive approaches, tactful follow-ups, and closings. Use other measures such as analysis for comparison with your competitors. Discuss your competitors’ numbers and strategies. Explain the differences and involve your team for working on any required adjustments. This not only gives them a clear view of where they stand as a team, but also boosts their competitive spirits.
STAY UPDATED Business industry is constantly evolving. New strategies keep taking over their predecessors, and with the speed
at which the technology is moving ahead, the lifespan of most of the strategies is getting shorter as they soon become obsolete. As a sales manager, you need to be sure that you are aware and updated with latest changes in the market. If a new competitor has entered the market and is showing some notice-worthy sales, then you need to spend some time understanding their strategy – find out if you’re missing anything or the new competitor is simply riding on beginner’s luck. Also, regularly keep your team updated. If a new version of the products you deal in is available in the market, update the concerned departments of your organization. You are also an eye for your organization. Make time to attend
Make sure you don’t just make sales, but also build trust. Your customers will always remember that. If you’re trustworthy, your customers will come to you again. 12
industry and business related seminars. Encourage your team to do the same. The more they are involved, the more knowledge they obtain, and better are the chances of getting more business. Plus, certain seminars or campaigns help us with the revision of the things we are aware of. Tap into these resources. Improving strategies is important for improving sales figures.
MEASURES FOR BETTER SALES One of the duties of a sales manager is to monitor the sales calls handled by their executives. You have to regularly check a few random calls to find out the ground reality. For example, before your executive starts with the sales call, ask them to write down their objectives and approach. During the sales call, find out how close the executives stick to the objectives mentioned by them. If they are faltering – affecting sales, conduct mock sessions with them. Make them see the gaps you have identified. Do not demoralize them, instead offer perspectives. Show them what you can see. Chances are you will also find out certain
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SALES queries, or at times certain objections, which your line of customers raise and most of your executives fail to handle efficiently. Mostly, in such situations, executives try a quick fix like ‘beating around the bush’ and ignore the customer’s concern, which creates hurdles for smooth sales. Ensure that your team abstains from such ‘fixes’. The best way is to enter into a similar situation and teach them by demonstration. Your team has to know that you are not asking them for things which you are not capable of handling yourself. Maintain transparency. In situations where you do not have an immediate solution, work with extreme patience. It’s better to ask for time, rather than misguiding them. Emphasize on building relationship with customers.
EVALUATION AND FEEDBACK Most of the times, we assume that once a sale is made, our job is over. But just like analyzing a failed sales attempt is important, analyzing successful sales is important too. Has your executive made a sale which can bring trouble at a later
No matter which industry you belong to, it’s very important to stay updated with the recent developments.
stage? Has your executive made a sale for a smaller amount when a sale for a bigger amount was easily possible? Did the executive make an attempt to check for references? These things matter a lot when it comes to retaining customers. You and your team might be putting in a lot of effort to bring in business, but since the representatives are not clear with certain ‘unsaid’ objectives, you might be yielding low results. The only way to avoid these problems is by conducting evaluation and providing feedback. Do not confuse this with a performance review. Evaluating daily or weekly sales calls is different. There will be instances when you’ll find even your topmost performers making mistakes. Evaluation and feedback helps to explain
the fine difference between sales and good sales. Sales managers need to be very serious about it. Some companies only discuss sales numbers with their managers, but experienced companies pay attention to these tasks too. Tasks like these restrain the team from losing track and wasting efforts and resources. So, if you are a top performer who’s now being promoted or already promoted as a sales manager, do spend time studying the above points mentioned by our business experts. Your reputation as an individual performer might have elevated your position to a leadership level, but to retain this new position and to excel, you need to understand the skills and qualities demanded by a sales manager’s job.
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INVESTMENTS
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INVESTMENTS
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MARKETING
HOW TO SAVE YOUR BUSINESS FROM BAD OR DULL PUBLICITY We all know what bad or dull publicity can do to a business. You need to create something exciting that attracts new customers and keeps the old ones.
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e it a popular corporate brand, or a small time venture, or an individual offering services as a freelancer – today every business form needs an online presence. It is a blessing to your customers to be able to find you online. Before they opt to do business with you, they can easily pull information about the way you do business. Social networking sites and blogs provide reviews and feedback through their forums for free. But this often creates tricky situations for all sorts of business entities. Sometimes a minor issue with your product or service can annoy certain customers and before you get to know or fix it, chances are that the negative feedback might have already spread like a wildfire all across the web. If you’re caught in the snares of what is known as ‘bad press’ or have newly started a venture, read on, we have some valuable suggestions to offer.
sumers have the tendency to forgive business entities who have the courtesy to respond and acknowledge critisisms. Complete absence of information about you and your business through search engines is also part of negative publicity. With the absence of this information, consumers will doubt the integrity of your brand name and your presence when they look up links related to your business. You need to register your business with the widely accessed social forums and create a business domain/website too. Also, you should regularly update your website with your latest offers and/or the
newest version of products you offer. It becomes a problem when people talk negative about your brand or they don't discuss it at all.
TRANSPARENCY Most businesses focus on advertising and marketing campaigns which only promote their brand names. Often, these campaigns offer very minimal information related to the product and services you have to offer. As an entrepreneur or a freelancer, you need to ensure that your website and forums on social
networking sites provide all the relevant information which a consumer needs to know. And the materials offering important information should be structured and drafted in a way for all sorts of consumers to comprehend easily. Quite a few times, customers leave negative feedback due to a certain misunderstanding about a particular product. Now, there are customers who in spite of reading negative feedback (when the complaints have more ranting and less specific), check the concerned product
WHAT DO SEARCH ENGINES SAY ABOUT YOU Popular search engines – that’s where you need to start from. Type in your business credentials and check the search results. You’ll find the list of all the sites where your business or service has been discussed or mentioned. Visit all the links to sites where people have left feedback. If you come across a negative feedback or a complaint, make sure you add a professional response offering an apology along with an explanation or resolution. Con-
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MARKETING or service’s website to get the appropriate information. At this point, a well-organized site becomes a life-saver for the respective business owner. If you go through forums which provide review and feedback for consumers, you’ll often find customers having an argument with each other about a certain product. Such situations are a positive sign because nobody can defend a brand’s reputation, from a troublesome customer, other than a satisfied and content customer. These are the instances when potential customers refer to social networking sites or the product’s website for clarity. So, maintain as much transparency and clarity as you can with your customers.
YOUR ONLINE ‘IMAGE’ No business is immune to negative criticism – some deserving, some undeserv-
ing – but maintaining a trustworthy ‘image’ often provides second chances with customers, in troublesome situations. No matter how negative a feedback is, never fail to acknowledge it. If you check on the leading brands of various different industries, you’ll find one thing in common – timely communication. These days, offering an explanation of clarity, is not a good gesture or practice, it’s a requirement. Secondly, you’ll never see a professional organization tackle negative feedback with negative response. They always provide clarification, and whenever feasible, offer solution or compensation. Follow this practice with utmost commitment and dedication. Due to the ignorance of these factors, many renowned brands have lost their share of revenue to upcoming small-time businesses.
It isn't a good idea to be present online only advertising purposes and to respond to customers. At times, contribute to sites where information related to your business industry is offered for free. It doesn’t have to be financial contribution; instead, it should be on the lines of educating consumers about the services of your industry. Let the consumers know what they shouldn't expect, or what what a new revolutionary product/service has to offer. When consumers come across an informative article about your company through a paid advertisement by you, it builds up a positive and healthy perspective towards your brand. In following this, consumers consider you different than your competitor.
OTHER AREAS TO WORK ON Subscribe and set alerts for immediate updates on any new comment or article on the net mentioning your business credentials. Popular search engines and social networking sites offer such services. Regularly check your rankings on search engines’ lists
and take necessary precautions to maintain your ranking, this might require upgrading your web content with latest SEO tools. Pay attention to the scores provided by sites conducting reviews for products and services. Work closely with these sites to avoid low scores, and try to keep up with the latest trends in your business industry. You wouldn't want to add ‘outdated’ to your organization’s name tag. If you are working on improving a certain feature or change of service, let your website and related blogs inform your customers that you are upgrading and enhancing things at your end. Sometimes your competitors might be ahead of you in implementing changes in their services, but it still doesn’t hurt to inform the customers that even you are working on similar lines. Follow these best practices that are common across all modern industries, and guard your business from negative and dull publicity. The suggestions mentioned here might require you to put time and effort, but at the end of the day it will pay off.
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INVESTMENTS
CAN I GET FINANCED IF MY CREDIT SCORE IS NOT PERFECT? There are many people who have a less-than-perfect credit score because of some problems. How do they get financed? We’ve got tips for you.
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here are many clients and realtors who come to us and ask if they would qualify for a mortgage despite their poor credit score... and the answer is yes, you can qualify for a mortgage loan even if you have a less-than-perfect credit score. Here at Primary Residential Mortgage, we have developed 3 products that have been helping our clients get into a new home.
FHA SELECT, VA SELECT AND FHA CHOICE. Why waste time and money trying to re-score a client’s credit when there is nothing to repair? With our specialized products, we can help more clients get a home without the stress of paying off or reducing some debt for their scores to increase. Let’s analyze each of the programs. Our FHA Select and VA Select Programs are designed to help clients with a FICO cred-
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it score between 620 and 639. By utilizing these programs, borrowers who currently do not have a 640 FICO credit score can also get a mortgage. We follow the same criteria as normal FHA and VA loan programs/guidelines, with the same debt to income parameters as a normal FHA or VA loan program. The main difference is that our clients need to take a First Time Home Buyers class. By taking this class, borrowers are more aware of the pros and cons of buying a house; and how important it is to maintain a good mortgage payment history. We understand that sometimes bad things can happen even to good people, that is why we have developed our FHA Choice Program. With this program, our borrowers benefit by purchasing a home with a low credit score. If a borrower has a FICO credit score between 500 and 619, this program will be ideal for them. The
major rules of our program are: debt to income should not exceed 21/43%; 3 months of their monthly payment will be considered a reserve, and their down payment can range from 3.5% to 10% depending on their FICO Score. Just like our FHA and VA Select programs, our FHA Choice clients also need to take a First Time Home Buyer class. All our FHA Choice loans are submitted to a final review; this review is done by our FHA Choice committee board for a final blessing/approval.
gage are committed to help our borrowers achieve their dream home. That is why these programs have been very successful with our clients and realtors. Think you can’t buy a house because of your low credit score, don’t give up. Call or email us with your concerns and questions, you may be closer than ever to own your dream home.
With these schemes, we at Primary Residential Mort-
If you prefer to apply online through our secure website, go to www.PRMIUSA.com, select full application and on the loan officer section, select my name: Edgar Hernandez, follow the prompts and hit submit.
Edgar J Hernandez Branch Manager-PRMI RGV| NMLS# 226169 3401 Old Highway 77 Brownsville Texas 78520
O: 956-616-4926 Fax 1.800.519.7915 ehernandez@primeres.com www.rgvhomemortgage.com www.PRMIUSA.COM
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INVESTMENTS
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SALES
EFFICIENT WAYS OF MOTIVATING AND MENTORING YOUR SALES FORCE
Surviving in the market is like a war, and your army is your sales team. To make sure that you win the war, you need to keep the sales force motivated. Here are some tips to be the mentor and leader for your team.
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oday, most of the organizations pay extreme attention to marketing and customer service required to survive the growing competition. But what about their sales force? What about the team which is responsible to convert interested parties into customers, and keep bringing in business? How do you manage to get the best out of your sales team? Read on, our business experts have offered tips to help you groom, mentor, and motivate your sales team.
Of course, you can’t accept all the opinions, but you can definitely listen to them. Sales executives have to feel that the strategies you create are derived out of the suggestions and ideas which they provide as a team. During group activities, show them that you appreciate those ideas and inputs more which are given by them collaborating with one another. Pay attention to the individuals’ opinions and voices, and they’ll easily work as a team.
REVIEW THEIR PERFORMANCES AND ‘COACH’ THEM FOCUS ON THE INDIVIDUALS WITHIN THE TEAM A sales team is not just a bunch of well-dressed and sharp executives but it’s a group of intellectual individuals. They need to be treated as one. You have to let them know that each one’s contribution matters to you. While meetings, training sessions, and even during briefings; you have to encourage active participation. Don’t just let the top performers speak all the time, put questions for the rest of the team too.
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There’s an old saying, ‘it’s not what you say but how you say it’. While reviewing your executives’ performances, do not give them the impression that you are ‘judging’ them. Avoid giving them direct examples or instant comparisons with other better-performing members. Judging and comparing never allows healthy teamwork. It’s best to coach them on the best practices and provide the
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SALES top-performing members’ techniques as references. Try conducting mock sessions where each member gets to display their sales-conversion skills. Here, highlight the ideas and approaches (instead of the individuals) which you like the most. Every member learns something by viewing how their fellow colleagues tackle similar situations. Sometimes, they not only learn what to do, but they also understand what not to do.
HEALTHY COMPETITION Competition is a driving force for improving performance. Hold contests focused on criteria which most of your sales executives struggle with. The intention should not be to find the ‘number one’ and applaud for them. But instead, the motive of these contests should be to help the team take efforts to improve their skill sets and benefit from healthy competition. Float ideas such as reading marketing books and checking educational seminars during these contests. With the desire to win contests and get appreciated, your team will not just willingly accept such suggestions but they’ll also make the most out of it. Also, during these contests, remind them that their true competition is with the teams of your business competitors, and the contests held by you are the opportunities for your team to sharpen and improvise their skill sets.
REWARD AND RECOGNITION Recognizing and rewarding efforts are instrumental for motivation. Not just cash, but trophies, plaques, and other gift items can also act as rewards. You need to let your team know that it’s not only about the business they bring in, but it’s also about the initiatives they take and the efforts they put in. Thoughtfully-chosen rewards items show your genuine sentiments behind the appreciations. Also, make sincere efforts to equip your sales force well. If you are purchasing or upgrading CRM and sales tracking tools, check if those are handy enough to work with. These tools should not add unnecessary burden on your team. Whichever applications and tools you select for them, it has to make their work reasonably easier. Recruiting and hiring skilled salespersons is important. But it’s also equally important to nurture and mentor them, to create a strong sales force for expanding your business’ profits and prospects.
LIFESTYLE
Cross Border Summer Travel Destinations We have the right destinations for you to visit and cool off the heat.
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true vacation is all about being out there with nature, exploring places where you haven’t been before. Taking a rejuvenating break in the countryside or beaches (not too far to reach), is the secret energy-source of many energetic businessmen. Check the three destinations, highly recommended by traveling businessmen, for refreshing vacation experiences.
ACAPULCO, MEXICO People, who have been to Acapulco, say that you can never get enough of Acapulco. It just keeps presenting one treat after another. To begin with, the food here is liberally seasoned by the cross-border heritage of U.S. and Mexico. And while you relish the food, Acapulco stands ready with another famous treat – the local entertainment. The entertainment will blend your mind with color, zest, and rhythms present in
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the life of Mexico. Broadway in Acapulco brightens the whole city four times a year with their fabulous shows. It’s not just food and entertainment; while you stay in Acapulco, you can also enrich your palate of art by checking the art expositions, art and cultural exhibits. There are many outdoor activities to do during the daytime. And the night is to lose yourself into delightful romantic bistros, swaying to country westerns, rock-n-roll and the trendy music.
SAN LUIS POTOSÍ The second holiday destination on the list is San Luis Potosí. Spread across the windy and sun baked plains of north-central Mexico; the vast state of San Luis Potosí is a magnificent beauty. Picturesque towns, tiered pathways, blossomed parks, and splendid plazas are painted with the rich, colorful culture of the place. Taking a trip through its surrounding countryside adds to the unforgettable experience of travelling through this scenic state.
San Luis Potosí is also considered as a hub for connecting tourists to three adventurous regions – the Central Area, Altiplano and Huasteca Potosina. In the Central Area, you can treat yourself to an exotic forest climate and enjoy diving during springs. Altiplano (high plateau) is a desert, showcasing its star attraction – Real de Catorce (fascinating desert ambience and blissful experience of spiritual energy). Finally, Huasteca Potosina shares with you its thick jungles and offers sceneries beyond any comparisons. And to add to these marvels, there’s the Sierra Gorda de Guanajuato – a myriad of plains and valleys. Along with natural wonders, you also get to witness the influences of pre-Hispanic and colonial times in the villages and towns of San Luis Potosí.
VERACRUZ Last, but not the least, on our list is the central Gulf coast of Mexico, known as Veracruz. You begin your journey from Mexico City, descend through the southern borders of the Sierra Madre Oriental, and then travel past the country’s tallest peaks, finally reaching the broad coastal plain. In this fertile, tropical cradle the earliest of Mexican civilizations sprang to life. Many believe that Veracruz has one of the finest varieties of wildlife in the whole of the western hemisphere. It also has one of the leading economies, gifted by its petroleum reserves and love for agriculture.
FLY AWAY! So, don’t forget to add these three destinations to your vacation list. Also, when it comes to travelling in Mexico, Aeromar Airlines (Transportes Aeromar) is a highly trusted name. Established in 1987 for regular regional transportations, their service permit for operating scheduled flights and chartering passengers, cargo and parcels are now extended from national to international scale. Carrying an experience of 26 years, Aeromar Airlines (http://www.aeromar.com. mx/) are well-known for maintaining high standards of quality services and safety measures. Check their website for more information.
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TECHNOLOGY
TOP LEVEL DOMAINS THE GAME IS
CHANGING
The dot com era has passed. This is the time for newer and better top level domains. Your business can get better views with these TLDs.
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ost people are familiar with TLD (Top Level Domain) names like .com, .net, and .org. A few can cite .gov, .edu, and probably, .ca or .co.uk. The list of popular TLDs is small, containing around a dozen widely used and recognized website endings, this is going to change. The international body tasked with the creation and distribution of these domain names, ICANN (Internet Corporation for Assigned Names and Numbers), has announced the launch of several hundred
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new gTLDs (Generic Top Level Domains). These domain names create new opportunities for businesses, internet marketers, and search engine optimization (SEO) professionals. This post would look at what these gTLDs are, when they are going to be available, how much they are going to cost, what the advantages of using them are, and how much of an impact they are going to have on businesses with an online presence:
OVERVIEW OF NEW GTLDS The new gTLDs include a large number of new addresses. These addresses have
been organized into themes, which include geographical location, subject area, business sector, and website type. These addresses provide businesses a new way to engage with consumers. They can now market their products and services directly from web addresses. BUSINESS SECTOR SPECIFIC DOMAINS A newspaper can use .today; a technology firm can end their website in .technology; an eatery can use .pizza or .restaurant; and other business sectors can find a name pertinent to their business. The new domain names include: .tips, .land, .diamonds, .bike, .sexy, and .voyage. LANGUAGE SPECIFIC DOMAINS The range of names is not limited to the English language. People from other countries have a similarly wide array of their names at disposal. So if a business
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TECHNOLOGY catering to Japanese audiences can use .みんな (minna / everyone). Another business dealing with Chinese students can turn to 測試 (cèshì / exam). There are many other names gTLDs available in English and other languages. GEOGRAPHIC LOCATION SPECIFIC DOMAINS Top level domains ending in .ca, .co. uk, and .au are common. The new set of gTLDs permits for more geographical specification. Businesses can end their web addresses in city specific domain names, such as .nyc, .berlin, .london, and .boston.
REASONS FOR THE RELEASE There is limited space left to match the need of every business. The most lucrative and the most sought-after names have already been taken. The new set of gTLDs opens the doors for creativity once again. The new set creates infinite possibilities for unique domain names for many years to come.
TIMELINE OF RELEASE The new set of domain names is being released in several stages. The names in the first stage were released on Feb 5, 2014. There were about 30 domain names available to the general public in March 2014. The coming months will witness the release of other more than 1,000 new gTLDs. Although there are several phases of release, they can be comfortably divided into three parts: Trademarks - During this period, trademark holders can register their domain names. They will have to show the proof of their ownership. Pre-registration - This is the period between the time when trademark holders can claim domain names and when the domain names are available to the general public. General release - After the pre-registrations are over, domain names are sent out to the general public.
COST FACTOR New gTLDs can be bought for as less as a smidgen under US $20 a year to as much as US $400 a year. Registrars sell
them at different rates, so GoDaddy may be more expensive or less costly than Enom for a domain.
Google, has hinted that it will take into account the new gTLDs if they are related to the website’s content.
Businesses and professionals can save on purchases if they wait until the last day of pre-registrations. The price difference during pre-registration can be huge. It can be as much as US $12,000 on the first day, and as less as US $150 on the last day.
At the same time, Matt Cutts of the company says that new TLDs are not magic bullets. In a post on Google+, he has said: “Google will attempt to rank new TLDs appropriately, but I don’t expect a new TLD to get any kind of initial preference over .com, and I wouldn’t bet on that happening in the longterm either. If you want to register an entirely new TLD for other reasons, that’s your choice, but you shouldn’t register a TLD in the mistaken belief that you’ll get some sort of boost in search engine rankings.”
ADVANTAGES The first and most obvious advantage of the new gTLDs shows up in businesses’ online presence. It will make the market less crowded, and make it easier to capture traffic and develop digital brands.
Develop your digital brand using these new top level domains. There is a whole new world of opportunities. The selection of domain names is probably one of the most important steps in the making of a successful online business. New gTLDs allow businesses to get pertinent domain names – those that are linked to their location, specialization, and subject. Right domain name selection improves visibility on the web. Search engines are aware of the big changes. They are already busy altering their search algorithms to reflect reality. The world’s most popular search engine,
Inclusion of localized domains will improve a website’s visibility in local search. This is a big advantage for people dealing locally. The three giants of social media (Facebook, Twitter, and Google+) have already started to recognize new gTLDs. Therefore, businesses do not have to worry about their social media strategy.
DISADVANTAGES Some businesses have a habit to purchase all new domain names to protect themselves from infringement. They will either have to change their strategy, or invest in 1,000 new gTLDs. This can be a disadvantage if businesses insist on buying all top level domains.
CONCLUSION New domain names are a breath of fresh air. They create new space in the crowded top domain name arena. They create new opportunities for businesses that can use the new gTLDs to enhance their online presence and engage more effectively with consumers.
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COVER STORY
David Armstrong – an entrepreneur, an innovator. Find out how he achieved success at an early age. Learn from him how he overcame hardships.
David
Armstrong
FINDING THE
EFFICIENT SOLUTION 26
COVER STORY
through productivity and efficiency. I once told a customer that for $60 a month he could get a new copier three times the speed as his existing one and his response was “I don’t care how fast it is … I don’t make the copies. That’s too expensive.”” A couple quick questions posed to the office staff determined that the employee making the copies spent 4 hours a day doing so. A machine three times faster would have saved 2.7 work hours or $40 a day. This focus on efficiency through technology has directed Core Business Solutions into first office equipment – multifunction printers/copiers and computers; then into document storage and workflow management software; managed network services; and finally mailroom equipment – folders, envelope stuffers, and bulk mail. This allows the company to offer its customers an efficiency solution tailored exactly to their specific needs.
Core Business Solutions is a technology company, but David Armstrong believes what the company really provides is efficiency. He once spent a summer internship working for the global CPA firm Price Waterhouse (now PwC) where one project influenced his entire career. “We performed an analysis for a manufacturing client who wanted to know what each product they produced really cost. As the intern I was given the onerous task of collecting the data and analyzing it. It was incredibly boring. It also directed me into everything I do today. This was the moment where I realized the biggest expense for most companies is not a line item on the financial statement, it is the cost of inefficiency. The best way to achieve efficiency is through the use of technology. For that reason, Core Business Solutions was founded 11 years ago.”
As a business, Core Business Solutions is guided by two primary principles. THE GOLDEN RULE – do unto others as you would have them do unto you. Every action taken at Core Business Solutions is based on ethics and integrity. Even if it means losing a sale or sacrificing a profit we always do the right thing for the customer or team member.
Working smarter, not harder is the core mantra for success. Why spend a lot of time doing in something which could be done sooner?
An accountant and MBA by training, and a 20 year manager and entrepreneur by experience, David applies this efficiency mindset to his business as well as his customers. Many business people are, in his opinion, much too focused on direct costs and ignore hidden costs created by inefficiencies. “Many business owners try to save their way into profits, without looking at how they can gain more
PRACTICE WHAT YOU PREACH - Every product and service provided to customers by Core Business Solutions is utilized internally by the company in its own quest to leverage technology in order to achieve efficiency. This allows us to be very familiar with the practical application of our products and services.
Core Business Solutions is a 42 employee operation with locations in Pharr, Brownsville, and Laredo servicing the 17 southernmost counties of Texas. The company’s slogan, “Solutions That Work,” exemplifies what it brings to its rapidly growing customer base. As an authorized dealer for top brands such as Savin, Konica Minolta, Sharp, Dell, Fujitsu and others, the company’s expertise is in determining what products, integrated together, offer the best solution for the customer’s needs.
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INVESTMENTS
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INVESTMENTS
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LIFESTYLE
Okay, So I Need Life Insurance. Now What?
With so many life insurance policies, which one should you select? Check out our brief guide to help you out.
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here are many different types of life insurance, ranging from the very basic "no frills" type of insurance to the very complicated (and expensive, perhaps). Let's talk about the basics, two very common types of life insurance are "term" and "whole life". Term life insurance is just like it sounds, it's for a certain "term" or length of time. Terms of 20 or 25 years seem to be the most popular. Since insurance companies actually pay the death benefit on but a very small percentage of these policies, they can afford to give you a good break on the rates. They only pay on 3 or 4 policies out of every 100 because most people outlive their policies. So the first advantage of getting a term life
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Whole life insurance, on the other hand, is also just like it sounds, it's good for your whole life, until you die. That's one of the greatest advantages of whole life policies. Since it is almost a certainty (barring suicide and other similar exclusions) that the insurance company will pay on 100% of the policies that are kept in force until the insured passes away. It makes sense that these types of plans are going to be obtained at higher rates than the term policies. It can be a definite disadvantage , especially if the applicant is already in the 40s or 50s. insurance policy is that they are lower in cost than most whole life policies. Certain financial fitness guru, like Dave Ramsey, strongly urge their followers to buy one twenty-year term policy, and to use those twenty years to get their finances in order, and to build wealth, so that when that term life policy expires, there will be no need to purchase a replacement policy. Because of the financial stability and wealth that you have built during the interim, is very sage advice, indeed. And kudos to those who successfully heed his advice! Alas, there will always be those who are unable (or unwilling) to do the work of disciplining themselves to make this vision a reality. For those who buy a 20-year term policy
at 33 years of age, they will be 53 years old when their term policy expires. If they have heeded Ramsey's advice, they are in pretty good financial shape at age 53. If, however, their efforts were derailed by unforeseen circumstances (or lack of discipline), which unfortunately is the reality for many, they will need to buy a policy to replace the one about to expire. There are a couple of drawbacks to buying a replacement term policy at 53, namely: • Policy rates can be considerably higher for an applicant in the 50s, and these higher rates may preclude their ability to make the purchase. • In general, people tend to be in less optimal health in their fifties than in their thirties, which increases the likelihood that they may not even qualify for the policy.
Obviously, neither of these two types of life insurance is perfect, but there are insurance companies that have been innovative and taken the best aspects of these two types of policies, and married them, to create a policy that addresses the shortcomings of each. Family Heritage is one of those companies that offers these types of insurances. It wouldn't be a bad idea to contact your local representative to find out if it's right for you.
Jose Orona (210) 823-1744 8000 IH W STE 600 San Antonio, TX 78230
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INVESTMENTS
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MARKETING
FOUR IDEAS TO HELP YOU SUCCEED IN SOCIAL MEDIA
by Isaul Carballar
There’s an ongoing debate on the value of social. And it’s only enticed by the fact that a very social company does not necessarily mean it has a lot of sales.
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social company is like a chattering cashier. People may like him/ her, but they will not necessarily buy whatever the company he works for sells. While I agree with this, I think there’s just more to social than a short or mid term return on investment. To me, the value of social is more on the psychological impact on your current and potential customers. A social company is seen as active, happy, reachable and productive. Unless there’s a solid reason for not being in social, an “antisocial” company may be seen as the opposite, inactive, unhappy, unreachable and unproductive. And that I think, will have a direct impact on sales, if not in the short term, definitely in the long term.
1. IDENTIFY YOUR UNIQUE VALUE PROPOSITION What do you bring to the market? What differentiates you from similar competitors? Are you a leader or a follower? Maybe you’re late in the market, but have a unique proposal, or maybe you have some local advantage. Maybe you have an excellent product, or maybe your product or service fills a need that other companies do not properly satisfy. It can be anything, but you have to do your homework and identify it. What do you bring to the table? How are you creating value for your current or potential customers?
2. BEING CONSISTENT TAKES TIME, BUT CONSISTENCY PAYS OFF
On this post I’m highlighting some things to motivate you as well as help you get started with your social efforts.
It has been stressed over and over, and with the never ending string of news, posts and several other feeds there’s an attention span, or a lack of attention for that matter.
Social pays off as much as a like-able cashier pays off. But crappy products are crappy products. Don’t be fooled by thinking social will help crappy products. Be social because you are genuinely interested in your audience. Be social because you care.
Once you’ve identified what makes you unique, you must develop a content strategy that boosts your value prop. It is not only about sharing relevant content, it is also about monitoring what works and what doesn’t, then generating more of what works.
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Consistency takes time, so it makes sense to invest your time on what has worked, or on what is working.
3. START CONVERSATIONS, NOT SALES Online marketing is not only about pushing and pulling data just because, it is about translating that data transactions into goals that align with your business or organization. It is not sufficient to only post content that you think your audience will find funny or unique, it is about finding the message that will get you to where you want to get. As a business you expect something in return from these online efforts. As a retailer, most likely, your customers liked, friended, followed or circled you for a reason, in most cases, probably to get some special discount. But it could also be the case that there might be something about your brand that attracted them, or made them feel special. Since you can't always offer discounts, and certainly not always make your audience special, think of ways to how you can generate other forms of engagement. In generating them, it's not only relevant
but chat worthy. Your audience is already on Facebook, Twitter, Linked, Google+, Pinterest or Instagram, why not have some relevant conversations there too?
4. MONITOR THAT WHICH CAN BE ALIGNED WITH YOUR BUSINESS GOALS Social offers a lot of insights, but it is not always the case that this insights will translate into useful data. Impressions or reach are worthless if they can’t be translated or correlated into actionable insights.
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MARKETING
How do you know what’s the real benefit of impressions, shares, likes or retweets? Learn how your social activities can be aligned with your business goals. The best thing for doing this is identifying your unique value prop. Once you’ve identified it, you should be able to start conversations around that value proposition. But don’t make the mistake of aligning your social activities to conversions or sales per se. These are just psychological triggers, not necessarily part of the sales funnel. What you
want to achieve by being social is show your fun side, your knowledgeable side, your customer service side, and most importantly, your human side. Given the chance, you should prefer few very happy customers over several moderately unhappy customers. Happy customers are an asset, and unhappy customers are a liability. You want to make sure your assets are greater than your liabilities. I like to make analogies with the physical world. An active
Happy customers are an asset, and unhappy customers are a liability. You want to make sure your assets are greater than your liabilities. social profile is the equivalent of an active store front. If you see people in line outside a store or a restaurant, you may not buy from them this time, but you might soon. It is a picture that’s hard to forget. It has a psychological impact
that in most cases will benefit your business, the same benefits I believe apply to social. A social company is a company that looks busy and interesting enough to give them a chance someday. Worst case scenario, people won’t buy from you today, but will give you a social thumbs up. There you go, now do some research, brainstorm some material and post it. The beauty of social is that you get immediate feedback. If one thing is not working, just change it starting today!
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MARKETING
Five Ways in Which Introverts Can Be Good At Networking Introvert? Shy? Awkward? Afraid of networking? We have some easy tips to help you with expanding your horizon. Check out our five techniques.
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he world seems to be tailor-made for people with a penchant to go out, meet, and converse with strangers. Coupled with an average or above-average skill set; this ability to mix up with people pushes extroverts toward professional success. In contrast, more than often, introverts find themselves in the backseat. Unlike their more outgoing colleagues, they find it impossible to break the ice. Networking for them is like the Berlin Wall which they can never pull down, or can they? This article suggests five techniques. Introverts can use these techniques to break out of their self-created cocoons and start building healthy and professionally rewarding networks of acquaintances and friends. Prepare. A way to bring down anxiety is to prepare for conversations. If you are going to meet someone, learn about them and their profession. Make a list of the questions you can ask. It is smarter to begin with open-ended questions, such as “How long have you been working?” or “What is your specialization?” These questions are excellent conversation starters for two reasons. First, they put the focus on the other person. Second, most people like to talk about themselves. Be realistic. If you are reading this article, you are an introvert for sure. And networking is tough, agreed. Accept both of these facts. Do not deny that you are faced with a difficult task. The key to tackle the task is to manage your expectations. Do not expect to meet a hundred new people on the first day, or impress everyone you meet with your jokes. It pays handsomely in the long run to have one or two quality conversations, than a dozen superficial ones.
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Know your strengths. Introverts can carry out more meaningful conversations. They have keen listening skills. They can put them to use; listen to other people, emphasize with them, and learn plenty of new things. Extroverts may often struggle with listening, so you are not entirely disadvantaged. People admire empathic listeners. You can win admiration and trust. They are essential ingredients of professional networking. The key is to learn about yourself, and capitalize on your strengths. Open up. This is hard. Yet, successful networking is not possible unless you open up and share your life’s stories with other people. Others may feel intimidated if all your sentences are ending in question marks. The key to successful networking is to both listen and talk. Do not get nervous. Prepare beforehand the stories that you will want to tell at a meeting or a conference. Practice before
you leave home. Preparation and practice will help you feel relaxed and friendlier. Do not give up. Errare humanum est. (To err is human.) This is a mid-18th century Latin saying, mentioned in Alexander Pope’s book Essay on Man, more than 250 years later, the adage still holds true. The purpose of mentioning the saying is to remind introverts that they will make errors, some of them will be embarrassing. The key to success is to learn from those errors and do not repeat those mistakes. If you give up, you will be back to square one. Whatever happens, do not give up. Introverts can be good at networking if they prepare beforehand, set realistic expectations, learn about their strengths, feel less nervous about sharing information, and do not give up when faced with problems. Therefore, go out and win people over.
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INVESTMENTS
Receiving angry calls from customers? It might be a problem now, but if you play your cards right, your angry customers can turn into loyal patrons. We’ll tell you how to do that.
CONVERT ANGRY CUSTOMERS INTO BUSINESS PROMOTERS 38
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ig corporate houses and small businesses; both have almost the same approach when it comes to handling irate customers. Corporate houses spend a fortune to set and maintain customer service departments. But the process and skills of these customer service departments often add to the frustrations of unhappy customers rather than helping them out. Most CEOs and entrepreneurs think that the only response apt for unhappy customers is “we are sorry for the inconvenience”. But what if you were to find out that not only can you manage irate customers but also make them promote your business? It’s not just some whimsical thought. In fact, some innovative and broad-minded firms have successfully managed to do it. So, what magical element have these firms come across? Well, before we un-
derstand the ‘magic’, let’s get an insight on their approach and thought-process.
TAKE OWNERSHIP The general tendency of an average customer service executive is to ‘tackle’ a customer by parroting responses from their manuals. Imagine… actually, forget imagining, try to recollect your last experience as an unhappy customer with some company’s customer support. High chances, you got in touch with them due to some issue with a certain product, and the person on the other end (of phone or mail) failed to provide you any satisfactory response. You must have received multiple apologies, but hardly any solution. You might have strongly expressed your frustrations, but they wouldn’t have budged from their parroted responses. As a customer, you might be annoyed, but now, if you were to change seats… Well, then as a business person you are likely to say, ‘what else
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MARKETING could they do, these things happen!’, What does that point to? Lack of ownership. You have to keep an open mind, your products and services can’t be the ultimate stuff always. And irate customers don’t contact you to waste your time, but to express their grievances. Never ‘tackle’ a customer, instead understand their concern. You never know, in their complaints somewhere there might be a new feature for your product, hidden in disguise. Or, possibly the customer may have simply misunderstood certain aspects of your services because of some mistake in your advertisement. You need to monitor, evaluate and analyze the kinds of situations and calls that are managed by your customer service department. If a customer mentions a problem, the executive needs to sound genuinely interested in checking the problem. If an immediate solution is not possible, a callback should be offered and provided on time. Ok, this seems like a good thing to do, but is there a real benefit? Research studies have shown that unhappy customers, who receive proper support and solution, are more interested to provide word-of-mouth publicity than
other customers. Reason? We all feel valued when we are heard, and we can’t hold ourselves from sharing that experience with people whom we know. Advertisements bind consumers with products, but good customer service binds consumers with product’s makers.
WORK WITH YOUR CUSTOMER SERVICE TEAM As a business owner, you might have understood the importance of taking ownership, but what about your team. You can’t just pass a circulation and expect them to follow your footsteps. You need to closely and regularly work with them. Explain to them that bringing additional business is not just the sales team’s responsibility but theirs too. A situation with an angry customer, yelling a complaint is not something to worry about, but something to study. Conduct training programs to groom your executives for people-skills. Here are a few basic things which customer support teams should be well aware of: Listening patiently and attentively is the first step in helping troubled customers. Acquiring complete information on the customer’s com-
Responding online via Facebook or Twitter is a great way for your customers to know that there is someone who listens in case something goes wrong. plaint is highly important. Calling a customer back to ask information, which they have already provided, only annoys them further. If a customer has been offered a callback, it should be provided on a timely basis. Until an issue is resolved, constant contact should be maintained with the respective customer. If possible, updates on work-in-progress must be shared with them. (Do not give them too many calls, hampering their work schedule.) Details of complaint calls must be tracked all the time. If a customer offers a suggestion for any type of improvement, it should be acknowledged and routed to respective departments. After a solution is provided, executives must politely insist for feedback. These feedback sessions often provide an ideal opportunity to request for references.
OTHER MEASURES Some companies even encourage their account managers to share their direct contact numbers with their clients. This way, if the client is facing problems with customer support, they can immediately get in touch with the relevant account manager. Not all companies can afford to do it. But whichever companies can, should follow this practice. Another big area to focus – social websites and forums, these days, it’s a child’s play to speak your mind on the net. Whether people like something or dislike something, they instantly circulate
the information through social websites. Keep a good watch on all such sites where things related to your business are discussed. If there’s a negative feedback for your firm floating around, deal with it before it turns into a wave and washes out your reputation. Responding online, to customer’s complaints and addressing their issues, can build your firm’s image to be recognized as a trustworthy firm. The visibility of positive feedback from satisfied customers can do more wonders than paid advertising campaigns. More than trusting marketing gimmicks, consumers trust each other’s experiences while checking up on a company. Business houses spend a lot of money on marketing campaigns to promote their products, but they rarely tap into the resourcefulness of existing customers. Gone are the days when customer support was not considered as a revenue-generation source. Today’s modern entrepreneurs and CEOs know the strong potentials of customer support teams and they easily spot the opportunities hidden in the complaints of the so-called irate customers. They educate their managers and teams to efficiently handle situations and work on providing the best possible solutions, rather than ‘tackling’ the customers. Ensure that your business does its best too, to smartly convert complaining-customers into brand promoting-customers. It’s all in the approach!
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STARTUP
Startups
Three Lessons From the Hotbed of American
Innovation
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STARTUP
I
ntel, Apple, Cisco, eBay, Yahoo, Microsoft, and the grandest of all, Google – there is one thread that runs through these companies - they are all Silicon Valley startups. They were founded by innovators and visionaries, who were probably chasing an idea that would change the world, or perhaps, help them make a good living. The pace of innovation that spurted out in the Valley during the 1970s has not slowed down to this day. The rise of Facebook in the past few years demonstrates that this tiny strip of land in the Bay Area has not run out of ideas. It is still churning out startups at a breathtaking speed. Not all of these companies turn out to be “one of the most beautiful success stories that the high-tech world has produced in fifty years,” as the author of ‘Start-Up: What we may still learn from Silicon Valley?’,
product. Reis encourages businesses to go to market as early as possible. He advises them not to chase the most refined product the world has ever seen. It could be that there is no demand for it. Reis’ advice for businesses is to create a “minimum viable product” (barely sellable) and hit the markets. Then, he opines, businesses can build on that imperfect product as they get customer feedback. The key to success is not some mythical, Platonian product that is perfect. The key to a successful start up is to constantly refine a minimally viable product for which there is a demand.
LESSON TWO FAIL EARLY, FAIL OFTEN Epiphany co-founder, Steve Blank, encourages entrepreneurs to weed out ideas that do not work. How can it be done? Blank suggests businesses to fail early and fail
While failures can often be let-downs, but studies have shown that almost all major corporations have failed many times before becoming big hits. Herve Lebret, calls Google. In fact, a lot of them appear on the scene like a lightning bug (not a supernova!) and then they vanish into nothingness. Entrepreneurs are aware of it. Despite this knowledge, they still flock to the hotbed of American innovation, teaching the world an important lesson in start-up foundation - persistence matters. It pays to have an undying spirit and an unquenchable thirst for innovation and success. It is not the only lesson entrepreneurs across the face of the planet can learn from startups in Silicon Valley. This article presents you with three more lessons from Silicon Valley, which will help you become the founder of the next billion-dollar company.
often. That is the only way, Blank thinks, they can learn what works and what does not work. If you have an idea for an app that turns on the TV when your favorite program is playing, just build it quickly. If it works, you can continue to refine it. If it fails to attract attention, it is time you start working on your next idea. The pyramid of success is built on the bricks of failure. For a spectacular success, you will need to have a lot of high quality bricks. To find out what work and what does not, let your ideas face the beatings of the market. After some time, you will be left with the most polished diamonds.
LESSON ONE DO NOT WAIT FOR THE PERFECT PRODUCT
You may be living in the capital of South Korea, where 4G is the norm, or, you may be living next to the Kalahari in Namibia; where you are fortunate if your internet is working. In either location, it pays to build a website. In fact, do not create one website, but create many of them. Create one website for each of your ideas. There are many advantages
Back in 2011, a Silicon Valley entrepreneur and founder of several startups, Eric Reis, published a beautiful book, titled ‘The Lean Startup’. In the book, the 34-year-old author turns traditional business thinking on its head. The gist of the 290-page book is that it is not wise to wait for the perfect
LESSON THREE CREATE WEBSITES AND FOCUS ON ACTIONABLE METRICS
of website creation. Let’s focus on the two most important of them. YOU KNOW IF THERE IS A DEMAND FOR YOUR IDEAS. Before you actually start working, make an announcement on your website. When you create websites and promote them, a few of them will prove to be hits, while others will show themselves to be slackers, that will give you a good idea if there is demand for your projects. If people are showing interest in only two of your 10 projects, it is wise to spend all your creative energies on those two. FOCUS ON ACTIONABLE METRICS THAT WILL IMPROVE YOUR BUSINESS. Once you know what products the people are showing interest in, you can begin to focus on learning about the people who are showing interest and can be converted into customers. Websites make it easier. There are many fantastic tools available that let you know valuable information about the people who are visiting your websites. The information may include age, education, yearly income, and other useful statistics. The data is huge. But if you focus on actionable metrics (which are useful to your business), it will help you enhance sales.
CONCLUSION Silicon Valley is the hotbed of American innovation. It has been producing technology giants for more than three decades. Many of the most prominent companies of today trace their origins to the area. The pace of innovation has not slowed down there. The rest of the world can learn many lessons on how to found startups from this little township. The most important of those lessons is persistence. If entrepreneurs are persistent, they will succeed. They will burn the midnight oil, but their hard work will pay off in the end. This is not the only lesson to be learned. There are three other important lessons. The first lesson encourages founders to not wait for the perfect product and go to markets with a minimum viable product as early as possible. The second lesson encourages businesses to fail quickly and fail often, to weed out ideas that do not work. And the third lesson encourages entrepreneurs to create websites to promote their ideas, to check their marketability, and to learn about their prospective customers.
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COMMUNITY
Firehouse Subs Public Safety Foundation The Firehouse Subs public safety foundation carries donation and rescue operations. But that’s just a small part of what they do.
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he Firehouse Subs Public Safety Foundation was launched in 2005 as a means for the Firehouse Subs restaurants to give back to the local community. Emergency service entities as well as public safety organizations throughout the nation are lacking the tools needed to adequately protect their communities.
The Firehouse Public Safety Foundation is dedicated to improving the life-saving capabilities of first responders and public safety organizations in communities served by Firehouse Subs by providing funding, resources and support. The reach and mission of the Foundation is truly national in scope with first responders and public safety organizations from Jacksonville to San Diego to Puerto Rico, over 674 recipients, receiving much-needed donations. Individual restaurants raise money; each restaurant recycles leftover, five-gallon pickle buckets and sells them to customers for $2. Donation canisters on register counters explain the non-profit’s mission and collect spare change,
while the Round Up program allows guests to literally “round up” their bill to the nearest dollar. In addition to disaster relief, scholarships and public safety prevention education and military support, donated funds are used for purchasing crucial emergency response equipment such as thermal imaging cameras, which can detect heat given off by people that may be trapped in a burning building, allowing firefighters to accurately locate victims through the heavy smoke. In addition the Firehouse Subs Public Safety Foundation, Inc. has donated: • Extrication tools • All-terrain vehicles with rescue capabilities • Fire extinguisher training systems • Bunker gear • K-9 units • Automated external defibrillators • Bullet proof vests • and the list continues to grow as new requests come in daily Each October, the Foundation also sponsors Public Safety Month, dedicated to providing public safety, prevention education and safety tips. During the month, medallions are sold at each restaurant in $1 or $5 increments. Patrons sign the medallion and it is placed in the restaurant creating a mural of support for those who serve the community. Since its inception, Firehouse Subs Public Safety Foundation, Inc. has donated more than $8.3 million to first responders and public safety organizations in local Firehouse Subs markets. For more information, please contact the Foundation staff at Foundation@firehousesubs.com.
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COMMUNITY INVESTMENTS
So you’ve got an LLC, but does that mean that your business does not run the risk of liabilities? Not quite true. Experts have a different opinion. Make sure you read this.
INCORPORATED, GOOD… NOW CHECK THESE 4 THREATS WHICH CAN STILL HARM YOUR LIABILITY PROTECTION 44
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ar-sighted entrepreneurs never ignore the ever-looming threat of their company’s liabilities and debts surpassing its earnings, and the worst fear of coming under the axe of personal responsibility. The best shield against this axe is turning a company into LLC (Limited Liability Company). There are high chances, being a smart business owner, that you must have done the same to keep your personal assets and savings safe from your business’s liabilities. But are you
completely safe? Business experts don’t agree with the belief that an LLC doesn’t have any weak spots. And to show that their intention is not to cause any paranoia, they have shared 4 scenarios which can still bring your personal assets under the axe.
1. FRAUDULENT TRANSACTIONS These days, making far-fetched claims to promote products and services is quite common. But it is still illegal. Some institutions invest on innovative advertisements and marketing campaigns to make their product visible to the right audience, whereas others trick customers into buying just anything, regardless of what the product is. But with businesses gaining more techniques, even the consumers are getting more educated due to the vast information sources through the net. They do not restrain from making their complaints as vocal and as legal as possible. If a company is found responsible for cheating consumers with misrepresentation of products, schemes or the company, even its business owner(s) are liable for penalties. Be careful with your marketing campaigns.
2. NEGLIGENCE OF CORPORATE ACTIVITIES MANDATORY FOR LLC Getting into an LLC and maintaining its shield requires you to focus on some of the important corporate formalities. Your corporation/LLC has to maintain its ‘good standing’. Federal and state taxes should be cleared on a regular basis. Filing of annual report shouldn’t be neglected (de-
pending on the state you operate from). You have to maintain your corporate minutes and resolutions up-to-date, record changes keeping up with ‘Articles of Amendment’, and hold annual meetings for shareholders with board of directors.
3. BUSINESSES IN OTHER STATES You need to acquire authority to do business in states other than the state in which you have formed your corporation/LLC. To do this, your organization will generally have to qualify as a Foreign Corporation/LLC by the state, where you are interested in doing business. Also, depending on the nature of your business, you might need to obtain specific licenses and permits. Conducting business operations without getting the necessary paperwork done, can affect your LLC protection.
4. BEING PERSONAL GUARANTORS FOR BUSINESS LOANS Getting banks and financial institutions to provide business loans is often a great challenge while starting the first business. These capital providing resources find it hard to offer loans for a new company and so they often require the business owners to provide a ‘personal guarantee’. If you have signed any such agreement, then until the loan is cleared, you carry the burden of personal liability. So whenever your organization is making profits, ensure that such loans get taken care of at the earliest. The liability of a personal guarantor for your business loan can easily weaken your shield of an LLC. Give a thought to these potential threats and do the best you can to strengthen the shield of the LLC, for safeguarding your own personal assets.
Personal guarantees can be a huge liability, and they should be paid off as soon as your business starts growing and making good money. 45
COMMUNITY
Buckner International
Buckner international was established in 1879, and since then it has helped people transform their lives. Find out how Buckner has become a hope for orphans as well as the elderly.
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t’s estimated that more than 300 million children worldwide – including in the United States – are exposed to violence, exploitation and abuse. About 132 million of these children are orphans, children who have lost one or both parents. They are subject to disease, child labor and child trafficking, and are at greater risk because they have no family and no direction in their lives. Since 1879, Buckner International has served the most vulnerable people in our society, from orphans to elders, from the beginning to the ending of life. Buckner transforms lives through more than 50
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programs in the United States and around the world. Today, Buckner is one of the most unique faith-based social services organizations of its kind in the United States.
RIO GRANDE CHILDREN’S HOME For more than 40 years, Buckner has provided professional care in a loving, Christian environment to vulnerable children at the Rio Grande Children’s Home. Today Buckner recruits, trains and supports foster and adoptive families throughout Texas to care for children who have experienced family crisis or have a history of abuse, neglect or abandonment.
BUCKNER FAMILY HOPE CENTER The Buckner Family Hope Center in Penitas, Texas focuses on improving the lives of individuals and families who experience extreme poverty by providing critical aid, social services and support to keep families strong. Through dedicated case managers, Buckner helps meet the physical, emotional, vocational and spiritual needs of the community.
BUCKNER STAR SERVICES Buckner partners with the Texas Department of Family and Protective Services to offer Services to At-Risk Youth (STAR), a free year-round intervention
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Buckner Children and Family Services 3780 N. Bentsen Palm Drive Mission, Texas 78574 956-585-4847 | buckner.org
With the Shoes for Orphan Souls program, many orphans receive shoes and socks each year. More than 2.75 million shoes have been distributed until now.
program. STAR is dedicated to supporting families and reducing the risk of child abuse and neglect before the cycle ever begins through counseling, crisis intervention, advocacy, skills training and education.
hands-on opportunities to individuals, groups and organizations wanting to transform lives. Since 1999, more than 2.75 million pairs of new shoes and socks have been distributed to children in 76 countries.
BUCKNER SHOES FOR ORPHAN SOULS速
Buckner relies on the support of individuals, businesses, churches and like-minded partners to support its programs. If you or your organization is interested in working alongside Buckner to impact the lives of orphans, vulnerable children and families in your community and around the world, please call Monika Skrzypinski at 956585-4847 ext. 22.
Buckner Shoes for Orphan Souls速, the largest humanitarian aid project of Buckner International, provides new shoes and socks to orphans and vulnerable children in the United States and throughout the world. From conducting shoe drives to humanitarian aid trips, Shoes for Orphan Souls offers
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INVESTMENTS
MANAGING CASH FLOW IN RETIREMENT Retirement might seem like a difficult time to some people, but it doesn’t have to be hard. With the right planning, your retirement can be easy.
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etailed budgeting, frequent monitoring of income and expenses, and prompt action to address potential cash flow problems are essential elements of financial planning for retirees. Despite careful planning and reasonable assumptions about investment returns, inflation, living costs, and other variables, retirees are likely to face many developments affecting their cash flow over the years. Expenses vary depending on individual lifestyles and health. Income may be affected by changes in investment performance and interest rates. Other factors bearing on cash flow include changes in tax rates and rules and alterations to Medicare, Social Security, and employer-provided retiree benefits. Except for the fortunate few who don’t have to worry about money, the ultimate goal for most retirees is making sure their assets last as long as they live. Once a person or household no longer can rely on earned income to pay the bills and save for the future, balancing income and expenses becomes the primary focus of financial planning. And because of increasing longevity, managing cash flow is more critical than ever. A typical American electing to retire in his or her mid-60s may expect to live 20 or 48
more years after retirement. While many variables come into play depending on each person’s mix of income, lifestyle, and health, there are a number of planning moves that can help retirees live within their means and make appropriate adjustments in response to changes in income and expenses.
TOOLS FOR THE TASK If you are retired, or about to retire, you will need to gather and organize key information before you can tackle the ongoing tasks of monitoring and managing your cash flow in retirement. The purpose is to give you a clear and complete picture of your current financial situation, as well as of any significant changes you expect. Two sources will provide this information: An up-to-date net-worth statement, which provides a snapshot of your assets, debt, and cash reserves. Your monthly or annual budget, with itemized breakdowns of your income and expenses. If you haven’t retired yet, it’s a good idea to prepare a projected budget of your retirement income and expenses.
worth statement and budget, you may want to consult a financial advisor, a book on the subject, or resources that might be available online. Analyzing this information will reveal any major problems that you need to overcome, such as insufficient cash reserves for an emergency or an income shortfall compared with current or projected expenses. It may also point up areas for improvement. For example, you may be able to free up cash by reducing debt or eliminating nonessential expenses.
REGULAR MONITORING Plans and projections are always subject to change. Even with reasonable assumptions about investment returns, inflation, and retirement living costs, it’s likely you will encounter numerous changes to your cash flow over time. Frequent monitoring of your income and expenses will detect changes that you can
address in a timely fashion to prevent significant problems down the road. Experts often recommend a monthly review of your budget, as well as a comprehensive annual review of your financial situation and goals. While you can keep track of your situation with paper and pen, specialized software may make the task easier, especially if your finances are relatively complex.
WHAT TO LOOK FOR What should you look for as you monitor your finances? Following are potential developments that could affect your cash flow and require adjustments to your plan. Interest rate trends and market moves may result in an increase or decrease in income from your savings and investments. For example, if interest rates decline, you may have to reduce your expenses if you are periodically withdrawing a fixed percentage from your investment assets. Alterna-
Be sure to account for all expenses, including those that occur infrequently, such as insurance bills, college tuition, membership fees, and investment management fees. They should be reflected in your monthly budget on a prorated basis. If you need assistance creating your net-
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INVESTMENTS Because of the possibility of human or mechanical error by S&P Capital IQ Financial Communications or its sources, neither S&P Capital IQ Financial Communications nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall S&P Capital IQ Financial Communications be liable for any indirect, special or consequential damages in connection with subscriber’s or others’ use of the content.
tively, you might consider altering your investment mix to pursue other sources of income, aside from traditional fixed-income investments - equity dividend income investments, for instance. You may also encounter changes in federal, state, and local tax rates and regulations. This factor may come into play if you relocate after retiring. The state you move to may impose higher income or property taxes, for example. Other factors that could have a bearing on your retirement cash flow include changes in Social Security and Medicare benefits or eligibility, as well as those affecting employer-provided retiree benefits and private insurance coverage. Inflation and health care costs are two other variables that can have an impact on living costs and, hence, your retirement planning assumptions. Life events - such as marriage, the death of a spouse, and the addition or loss of a dependent - may also affect your cash flow. Cash flow is also a matter of personal preferences and decisions, and here you
will be in control of the many small and large choices likely to be made over the course of retirement. How much you spend on travel, entertainment and recreation and whether you live in a lower or higher cost locale are examples of factors that can have a significant effect on cash flow
become a critical task for retirees seeking to ensure that they do not outlive their assets. An up-to-date net-worth statement and monthly budget providing itemized breakdowns of income and expenses are the basic tools used to monitor and manage cash flow.
It is important to have enough assets at the time of retirement. With the changing interest rates and evolving markets, it is important to have money for the time when you’ll need it the most. - and how long your retirement assets are likely to last. That’s why it’s worth paying close attention to cash flow, making sure you budget carefully, monitor income and expenses frequently, and take action whenever you see significant changes in income and expenses.
POINTS TO REMEMBER Due to increasing longevity, managing cash flow has
Interest rate trends and market moves may result in higher or lower income from savings and investments. Other factors that can alter cash flow include changes in inflation, health care costs, tax rates and regulations, and Social Security and Medicare benefits. Lifestyle choices - such as preferences for housing, travel, and entertainment - also affect cash flow.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. © 2013 S&P Capital IQ Financial Communications. All rights reserved. Tracking #1-204114
Albert Lopez President Wealth Consultant 956 683 1818 albert.lopez@iwcteam.com www.iwcteam.com
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