Business Adviser No. 11 Rio Grande Valley

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

Issue 11 COMPLIMENTARY COPY

Beat the Competition

WITH THESE

2015 MARKETING STRATEGIES

Do You Make

THESE HIRING MISTAKES?

HOW TO RETAIN YOUR CUSTOMERS WITH 10 EASY STEPS

MIKE

MASSO The Road to Success

+

What Everybody Ought to Know About Intellectual Property Protection 3 Mistakes to Avoid If You Want to Become Rich The Secret of Product Pricing

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 Danny Smith Andrew Yoo Maggie Yoo Jose Orona

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

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

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

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

Sincerely,

Andrew Yoo, CEO & President andrew@businessadviser.co

In This Issue

8 10 12 14 16 20 23 26 28 36 42 46

Bitcoin is Fresh And Happening… But What About Its Tax Implications?

Have Face-to-Face Interactions to Build Your Business and Relationships

06

Your Perfect Marketing Plan in 15 Easy Steps

CREATE A SENSE OF URGENCY TO DEFEAT COMPLACENCY

Increase Daily Productivity With Some Simple BPI

What Do Employees Think About Supplemental Insurance?

Do You Make These Hiring Mistakes?

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3 MISTAKES TO AVOID IF YOU WANT TO BECOME RICH

How to use SEO For Explosive Results How Drip Campaigns Turn Leads Into Customers The Secret of Product Pricing

What Everybody Ought to Know About Intellectual Property Protection

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MIKE MASSO - THE ROAD TO SUCCESS

HOW TO RETAIN YOUR CUSTOMERS WITH 10 EASY STEPS

38

3 QUICK TIPS TO SPEED UP YOUR TAX RETURN

Beat the Competition With These 2015 Marketing Strategies What You Need To Know About FHA Loans

CREATE

A

SENSE

OF

URGENCY DEFEAT TO

COMPLACENCY

Procrastination is the perfect recipe for mediocrity. People procrastinate when there is no pressure to achieve.

M

ost people have a tendency to put things off. They don’t live their best life or make their best effort today because they think they will do things tomorrow. Well, something can be procrastinated, yes, but if you keep delaying important things, you are unlikely to accomplish anything worthwhile.

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INVESTMENTS

Very few people actually approach a new day with a 'now or never' mindset.

Very few people utilize every moment of their life to the best of their capabilities.

Look around. You will find complacency everywhere. If you walk into an office, you will find employees chatting with their co-workers and browsing the web without any care or concern. They are assured of a monthly salary. They have their health insurance. It is the sense of security that they experience creates this atmosphere of complacency.

This happens everywhere.

This happens in government offices, sports teams, and school boards. Very few people actually approach a new day with a ‘now or never’ mindset. Very few people utilize every moment of their life to the best of their capabilities.

Procrastination is the perfect recipe for mediocrity. People procrastinate when there is no pressure to achieve. Some professional athletes lose their focus and motivation after signing a multi-million contract with a big sponsor.

Compare them with stock brokers who approach each day as if it is their last. Why does this happen? Simple.

Money is guaranteed for the athlete who has signed a long term contract worth millions.

This makes him feel secure.

And security almost always leads to complacency. The broker does not enjoy that security. There is no guaran-

When you enter into a contract with yourself, you will automatically experience an eagerness to accomplish something. You will want to spend your time working on important tasks. This contract will also take your motivation to an altogether new level.

Vouch to give your very best toward everything that you put your hands on. Motivate everyone who comes across you. Spend your time wisely and focus your energy on the most important things. Do everything that is on your to-do list passionately and quickly.

Learn something new. Cultivate a new hobby. Be great.

tee that he will be with his company for ten years. He has to deliver every single day; otherwise, he may get fired. This creates a powerful sense of urgency.

You can learn an important lesson from these examples. If you assume that today is your last day, you will work harder and accomplish much more.

You will not procrastinate.

So try to enter into a one-day

contract with yourself. The purpose of this contract is to live every moment of the day. If you incorporate this into your life, the results can be substantial. This will help you maximize your potential. Focus your energy into making this day special. Make it a masterpiece. You will be blown away by the results.

It’s always a good idea to explore different methods to accomplish your goals.

Remember that there is no wrong or right way. Create something powerful – create something worth creating.

Sometimes to live your dream life, all that you need is a powerful sense of urgency.

Get out of your comfort zone, and assume that today is your last day on this planet. Now you will automatically find yourself toiling hard.

FINANCE

BITCOIN IS FRESH AND HAPPENING…

BUT WHAT ABOUT ITS TAX IMPLICATIONS? The growing popularity of Bitcoin can no longer be ignored. Bitcoin is being widely accepted by people all over the world. itcoin, the largely popular digital currency, is steadily gaining more acceptance and legitimacy. Does that mean that we will soon abandon our wallets and credit cards in favor of it? It is hard to predict, but one thing is certain.

There is a great deal of hype surrounding bitcoin.

During 2013, its value rose from 13.50 USD to around 650 USD. In November, it touched an alltime high of 1,200 USD. The US dollar, on the other hand, gained only about 0.5 percent over the year.

Currency speculators and early adopters aren’t the only people watching the growth of bitcoin. Tax authorities, banking institutions, and regulators are also interested in it. They all ask one question: who is going to regulate it?

Wells Fargo convened a bitcoin summit in January.

It was attended by US government officials, finance experts, and virtual currency experts. The purpose of this summit was to discuss concerns that bitcoin might lead to tax evasion and money laundering.

IRS has also expressed concerns over the tax compliance risks raised by virtual currencies like bitcoin.

The most important question about taxes on transactions using bitcoin is whether the currency should be considered as a capital asset, just like commodities or stocks. In that case, it will be subject to capital gains taxes that can be as high as 24%. If it is treated as a fiat currency like euros, dollars, or yen; the gains will be taxed like income.

Fiat currency is legal tender. Bitcoin is not supposed to replace fiat currency. It is developed for use in ecommerce transactions. However, recently, there were reports that the currency was used to purchase a Tesla sports car from a dealer in Cali-

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Bitcoin is not supposed to replace fiat currency. It is developed for use in ecommerce transactions. fornia. Moreover, companies like Zynga, Overstock.com, and Virgin Galactic have announced that they will take payment in bitcoins.

Right now many questions about bitcoin don’t have answers. However, the growing

popularity of it can no longer be ignored. Bitcoin is being widely accepted by people all over the world. It might soon become the most accepted digital currency for the entire world. The most important question right now is – are you bitcoin ready?

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STRATEGY

STRATEGY

HAVE FACE-TO-FACE INTERACTIONS TO BUILD YOUR BUSINESS AND RELATIONSHIPS It is true that email has become an accepted means of business communication.

However, when you need to have some tough discussions with a potential business partner or a vendor, talking is a much better option than emailing or texting. Human contact is particularly important for startups.

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T

he phone is a great tool for making ‘nuanced’ interactions. This is not something that email can offer. Very often, we use digital tools like email and SMS for making difficult conversations because they eliminate the need to come face-to-face. Unfortunately, this is not the best option. If resolving conflicts is your goal, face-to-face interactions are far more effective than emails. And when you start out, trying to resolve a conflict or a misunderstanding with a vendor or a potential client via email is not recommended at all.

THE IMPORTANCE OF HUMAN CONTACT There is no denying the fact that the email is a wonderful tool for communication, but it is not the right tool for all communications. If you have not connected with your clients and business contacts during the last 18 months to 4 years, you should make a sincere effort to meet them now. If we don’t make real contacts, our relationships will decay.

If you employ well-qualified people who like to work together, your business will certainly make lots of money. We assume that as long as we make digital contacts the relationship will remain alive. Unfortunately, that is not quite the case. We need real interactions.

Science also supports this theory.

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STRATEGY

Neuroscientists have discovered that human beings need face-to-face interactions to survive and to feel good.

These meetings facilitate the release of neurotransmitters and hormones that alleviate stress. People sometimes assume that these meetings are a waste of time but they aren’t. In fact, they enhance your business productivity.

You may be an overworked entrepreneur, but that is no excuse for avoiding face-toface communications. Some people need a great deal of social interactions to do well and to increase their productivity. If

you enjoy the company of people, you will be better off working in an office space. If you are always working on screen, it will not suit your temperament and may even affect your productivity. An office space also acts as an incubator for your business ideas. If you are an introvert, you will probably want to work alone. You may also think that others are also introverts and don’t appreciate face-to-face interactions. It is a mistake. Whether you are an extrovert or an introvert, human contact is important for you.

We assume that as long as we make digital contacts the relationship will remain alive.

Unfortunately, that is not quite the case.

We need real interactions. Science also supports this theory.

USE SOCIAL MEDIA TO ORGANIZE FACE-TO-FACE MEETUPS Social media is killing face-to-face meetings. Many people have more friends in the virtual world than in the real one. This does not help their case. You can’t expect your digital friends to be there for you when you need them. Social media should be used for fostering in-person meetings.

For instance, during a face-to-face meeting with a client or a vendor, you can show the new designs on inspirations on your Instagram page to them. Sites like LinkedIn and Facebook can be used to organize business networking events. Remember that this is what highly successful people do.

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MARKETING

YOUR PERFECT

MARKETING PLAN IN 15 EASY STEPS When your marketing strategy is executed properly, it will help you reach unlimited customers and achieve spectacular success.

Y

5: DISTRIBUTION PLAN

ou need a sound marketing strategy to develop your business.

When your marketing strategy is executed properly, it will help you reach unlimited customers and achieve spectacular success. So what are the key sections that should be included in your marketing strategy?

How will customers buy from you? Do you intend to sell your products directly to your customers? Or will they have to buy from other retailers? This section should explain all these points.

6: OFFERS Offers are deals that you use to entice customers. They may include money back guarantees, free trials, and discount offers.

1: EXECUTIVE SUMMARY This section should summarize other sections of your marketing strategy. It should be completed in the end. The executive summary is there to give a quick overview of your marketing plan.

2: TARGET CUSTOMERS Who are your target customers? In this section, you should define their age, gender, interests, wants, and needs.

To launch highly targeted ad campaigns, you should know who your customers are.

3: USP Your unique selling proposition (USP) is what distinguishes you from your competitors. It’s something that is unique to your company and is compelling to customers.

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4: POSITIONING AND PRICING STRATEGY Your pricing should align with your positioning strategy.

If you want to position your company as a premier brand, you can’t afford to sell dirt cheap items. Discuss your pricing strategy here.

Your unique selling proposition (USP) is what distinguishes you from your competitors. It's unique to your company and is compelling to customers.

MARKETING

7: MARKETING COLLATERAL

12: REFERRAL PROGRAMS

Your marketing materials include your email newsletter, website, catalogues, brochures, and business cards etc. These are the items you use to market your business.

A good referral program will help you reach more customers.

Create a referral strategy that will encourage your customers to refer you to other customers.

8: PROMOTIONS STRATEGY This section should explain how you will promote your business and reach more customers. Your promotional tactics can include press releases, print and television ads, event marketing, and online advertising.

13: WAYS TO INCREASE TRANSACTION PRICES The transaction price is the amount customers pay you when they buy your products or services. By increasing your transaction prices, you will be able to make more profits. In this section, you should explore ways to increase the transaction price.

A good referral program will help you. Create a referral strategy that will encourage your customers to refer you to other customers.

14: RETENTION STRATEGY Retaining your existing customers is easier than getting new customers. Your retention strategies can include customer loyalty programs and monthly newsletters.

Briefly explain your retention strategies here.

15: FINANCIAL PROJECTIONS Your financial projections should give an estimate of your projected revenue and expected expenses.

9: ONLINE MARKETING Your customers are now mostly online and that explains why you should have an online marketing strategy.

Your online promotion strategy should have four key components: SEO strategy, keyword strategy, online advertising strategy, and social media strategy.

10: CONVERSION STRATEGY These are the techniques you will have to employ to turn potential customers into actual customers. By showing testimonials and improving your sales copy, you will be able to boost conversions. Give a quick overview of your conversion strategies in this section.

11: PARTNERSHIPS AND JOINT VENTURES These are the partnerships and deals you sign with other organizations. Create a list of companies who will make good partners.

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15

STRATEGY

INCREASE DAILY PRODUCTIVITY WITH SOME SIMPLE BPI Automation can fix many problems and will also results in time savings.

T

hinking about improving your Business Process Improvement (BPI)? When handled properly, BPI can benefit your organization in many ways.

One way of improving your existing business processes is to utilize the power of information technology. Automation can fix many problems and will also result in time savings, but it is not the only way to improve processes.

Here are ten things to consider when you manage business process improvement projects for your company.

1

MAKE SURE THAT YOU HAVE THE SUPPORT OF SENIOR MANAGEMENT

When organizations begin a business process improvement, their objective is to fix a single issue. However, in many cases, these initiatives will grow and assume a bigger role in the company.

When you launch a business process improvement plan, make sure that it has the approval of senior management.

This will give the improvement group the authority they need to make changes.

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2

IDENTIFY THE PROBLEM

3

THINK GLOBAL BUT ACT LOCAL

Before you start a BPI project, organize the existing pain points of the company.

Maybe sales are down, or perhaps your customers are not happy with the support they get. After identifying these issues, you have to decide which of them needs to be fixed first.

Very few processes can stand alone. Most of them are part of a bigger picture.

When you start working on a process, you should also analyze how it integrates with other processes. Your attempt to fix one problem must not make another problem worse. In some cases, this might mean fixing several issues at once. While planning for improvements,

try to see what will happen when the proposed changes are implemented.

4

INVOLVE THE RIGHT PEOPLE

Include every stakeholder, because if you don’t, there is a strong chance that the project will fail. People who have been excluded will definitely find out that they have been excluded. They will resist the proposed changes. It should also be remembered

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STRATEGY that just because you involve someone, there is no guarantee that they will cooperate.

When you work with people who are not very cooperative, it can affect the outcome. Every employee is responsible to improve the workplace.

If somebody is resisting the change just for the sake of

it, make sure that it reflects in their annual performance reviews. But don’t punish people just because you don’t agree with their points – you need to strike a balance.

5

MAP PROCESSES BEFORE BEGINNING THEM

Create a visual map of the process. This will help people to understand how the process will operate. Process mapping is crucial because it allows you to ensure that everybody is on the same page.

6

FIND WAYS TO SAVE TIME

Communicate with all stakeholders before you undertake a BPI project. This can result in huge time savings. Also, don’t overindulge in extra steps eliminate the ones that aren’t required.

7

THINK ABOUT WHAT-IF SCENARIOS

You may have created a new process, but you can’t lock it in before considering all possible what-if scenarios.

The objective is to find out weaknesses that will eventually become stumbling blocks. Test the processes because the outcome depends upon testing.

8

MAKE IT CLEAR THAT IT IS NOT ALWAYS ABOUT IT

Most people assume that business process improvement is all about bringing in automation. IT systems certainly play an important role in improving processes, but non-IT-processes are also important.

9

IDENTIFY COMMON CHOKE POINTS

We have already seen that many processes intersect.

You cannot treat everything as an independent entity. Try to find places where they are more likely to break down – they are your choke points.

Process mapping is crucial because it allows you to ensure that everybody is on the same page.

10

MEASURE SUCCESS

You have to identify the metrics with which you can measure the success of your projects. Define all metrics and measure performance against them.

With these considerations, you too can have a successful project.

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INSURANCE

WHAT DO EMPLOYEES THINK ABOUT SUPPLEMENTAL INSURANCE? Even if you don't overhear your employees discussing supplemental insurance, that doesn't mean they aren't thinking and talking about it.

verheard in the break room: “It’s pretty awesome that we have a disability plan now, which is going to pay us if we get hurt or sick and can’t work. Huh, Steve?”

“Yeah, it is. It really is.”

“Well, you don’t sound too happy about it. What’s wrong?”

“Nothing, Joe, but did you hear what the rep said about the plan starting

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to pay after we’ve missed 30 days of work?”

“Yeah, so after a month, we start getting paid, right?”

“I don’t think so. I don’t exactly know what he said, but it sounded to me like it would pay after we missed 30 work days. That’s five or six weeks with no paycheck, man.”

“Six weeks? Wow!” “Dude, I don’t know about you, but I don’t have money stashed away to pay all my

bills and feed my family for two or three weeks, leave alone six weeks! That’s why I don’t like to call in sick.

I mean, it’s great that the boss gave us a chance to sign up for this, because it makes sense, but I don’t know. I never really thought about it before. That guy got me thinking. How would I take care of my family if I couldn’t work for a while? I mean, yeah, I have a little bit

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INSURANCE

Clearly, you want to take care of your employees, because it would be very difficult to run your business without them. in his place. We have a house payment to make, two car payments, bills, credit cards, three cell phones, groceries, etc. It’s a lot! Lizzie brings in some bucks with her childcare, but she uses that to buy stuff for the business, kids, and the house. I can’t ask her to support us. She couldn’t.”

of savings, but not enough to cover all that, you know?”

“Right. I never thought about it either.”

“Do you remember I told you about my cousin’s car accident, a while back? He was out of work for 5 ½ weeks.

So, a plan like this probably wouldn’t have paid him because he wasn’t out long enough! And his accident wasn’t on the job, so it might not have paid anyway. All of our family chipped in to help him out, but we could only do so much. He really struggled for over a year, trying to get back on his feet. I wonder what would happen if I were

Overheard in the owner’s office, a couple of months later: “Is it Ramiro? Hey Ramiro, your banker James Jones at First Providence asked me to come see you. He thought you’d be interested in hearing about how you can offer voluntary supplemental benefits to your employees at no cost to your company. Do you have a place where we can sit down and have a quick chat?”

“Well James is a good guy for sending you, but we have already taken care of that.

Once they’re out 30 days, their disability kicks in.”

“Oh, that’s great! They are lucky they had a chance to sign up for that. May I ask you a question?”

“Okay.”

“Do you have any employees who would be hurting financially before the 30 days were up and that plan kicked in?”

“Uh, well, probably all of them. Now that I think about it, probably me too.”

“That’s why James asked me to come see you.”

As a business owner, you may not be privy to conversations like the one between Joe and Steve, because of the respect your employees have for you, and their desire to avoid making you feel that they don’t appreciate what you do

for them. Clearly, you want to take care of your employees, because it would be very difficult to run your business without them.

And maybe you’ve never had a conversation like the one between James Jones’ mutual friends, the business owner, and the Family Heritage insurance representative. Maybe it’s time you did. There are several reasons to recommend it: You are a business owner because you made a series of decisions that have served you well. You know what is best for your business, either because of your own experience and expertise, or because you recognized the need for advice, you sought it out, and applied it to make a sound decision. You trust your employees to make certain decisions on the job, especially the ones that involve their area of expertise. Decisions regarding what insurance plans are best suited to their family situation, definitely fit into this category, and no one else should decide for them.

Family Heritage insurance plans are voluntary, with no need to go through payroll, which means we can enroll one employee or hundreds of

employees, with no additional administrative work for your office, and no cost to your business. Because enrollment is direct, when your employees leave or retire, they can take their plans with them.

It’s that simple.

You care about your employees, and if they are suddenly in a situation like cancer or a serious accident, and unable to work for a time, you are going to want to help them out. Wouldn’t you feel better knowing that the money you raise with a barbecue plate sale or silent auction is going to be helping your employee’s family on top of what their Family Heritage plan is paying them, rather than being the only money they will be getting to make ends meet?

Employees like Steve and Joe will be much more at ease knowing they have a plan in which they won’t have to wait until they’ve missed x number of days of work for it to pay.

They’ll feel good knowing that there is no lifetime limit on the total dollar amount in benefits that their Family Heritage plans can pay. And they will especially love the fact that after their Family Heritage plan has been in place for the specified time, they will have all of their premium (less claims paid) refunded to them.

Employees with peace of mind help make a relaxed employer. They are worth it.

So are you. Why don’t you make that call today, while you’re thinking about it?

Jose Orona (210) 823-1744 8000 IH W STE 600 San Antonio, TX 78230

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3 FINANCE

MISTAKES TO IF YOU AVOID TO WANT BECOME RICH

I

t is easy to get rich if you limit your spending, save your money, and invest it in the right places. We all understand it, but still do the opposite. We spend too much money, don’t save anything, and invest poorly. People prefer to be ignorant about their financial situation because they do not understand their relationship with money.

If you really want to change your money habits, you need to review your financial situation. Add up your earnings and subtract your expenses over a period of three months.

If the figure is positive, your finances are in control and you earn more than you spend. If the figure is negative, your expenses exceed your income and you will soon find yourself in deep debts.

Here are three money mistakes that everyone commits and ways to fix them.

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YOU TAKE ON TOO MUCH CREDIT CARD DEBT Credit card debt has a huge impact on your financial situation. If you use your credit card to make purchases, you have to pay off the full balance when you get your first bill. If you don’t, you will soon find yourself submerged in credit card debt. Here the only fix is to read the fine print.

According to the law, credit card companies have to inform the customer how many years they will take to pay off the balance if they only pay the minimum amount each

month. Because of compound interest rates that typically hover around 16%, credit card debt will keep growing and growing. If you really want to become rich, you have to pay off your debts first.

YOU CAN’T HELP SPENDING Some people spend too much because it makes them feel good temporarily. Mixing money with your emotions is never recommended. Don’t find solace in retail therapy.

Spending will probably make you feel good temporarily but you will experience more contentment if you save and grow your money. Resist the

temptation to visit the mall when you are feeling alone or depressed. Do something else.

YOU DEPRIVE YOURSELF Saving is good, but it is not exactly fun. If you commit yourself to saving every penny a kind of discontentment may creep into your life after a while. This certainly is not the way to live. Austerity is okay but you can’t deprive yourself of all pleasures. There is a simple solution to this problem. Each week set aside some money for spending on things you love. This will allow you to splurge without upsetting your budget.

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INVESTMENTS

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MANAGEMENT

We're

HIRING!

Do You Make These

HIRING MISTAKES? Solopreneurs who offer a service stop growing after they reach a certain level because of their unwillingness to bring in other people.

R

unning a business is like playing a video game – you have the control and you handle every operation.

You make all the decisions and you do all the work. Unfortunately, there is a limit to what you can achieve if you work alone. To grow from a small business to a mid-sized business, you have to increase your capacity. This will also involve hiring people and delegating some jobs. Are you ready to let go of some control?

Most entrepreneurs cannot come to terms with the fact that someone else can run their business as well as them. Solopreneurs who offer a service stop growing after they reach a certain level because of their unwillingness to bring in other people who can provide the same service.

If you are not willing to hire people and delegate at least some of the jobs, your business won’t be able to grow.

Many small business owners don’t want to hand over even minor tasks. They have no faith in another person’s ability to do their jobs as well as they can. But if you decide to run your business alone, you will have to pay a heavy price.

You will not be able to meet your professional and personal needs. The only solution to this problem is to employ the right people.

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Hiring the right people is crucial. Here is a quick guide to the hiring process.

KNOW WHAT YOU WANT You should know what kind of cognitive skills, behaviors, and experience your employees should possess. Hiring people who possess the right behavior is better than hiring people who possess the right skills.

You can teach the skills later.

Make sure that your employees are punctual, hardworking, honest, and sincere. They should be able to work well with others. Ask a lot of questions during the interview, and get to know the candidates before hiring them.

DECIDE WHAT YOU ARE READY TO OFFER

SEARCH OUTSIDE OF YOUR FAMILY AND FRIENDS You don’t necessarily have to hire your friends or family members. Of course, if they are qualified for the job, there is nothing wrong with that. But if they lack the skills, search outside – advertise for employees. You might receive several resumes, but if you know what you can offer and what you want, finding the right people will not be difficult.

CONSIDER DIFFERENT OPINIONS AND METHODS You do not have to handle the hiring process all alone.

You can get

help. Consider hiring a consultant to interview candidates. Since they are familiar with the hiring process, their input is valuable.

TRUST, BUT VERIFY A large number of resumes have false or misleading information. Before hiring a person do background checks. Employee fraud and theft have contributed to the failure of many small businesses.

Once you have hired the right people, set suitable goals for them. Provide them with the right tools and assess their performance periodically.

Large organizations can offer higher compensation and benefits than you. When you compete with them for the right people, you too should be able to offer something irresistible. Many people like to work for smaller companies because they want their ideas to be heard.

Let potential candidates know what you can offer.

www.businessadvisermagazine.com

MARKETING

S

earch Engine Optimization (SEO) is a set of techniques used to improve a site’s visibility in search results.

Search engines use several factors to determine your position in results. Sometimes SEO is all about ensuring that your site has a structure that search engines can understand. True SEO involves optimizing your site for search engines as well as human visitors.

WHY YOU CAN’T IGNORE SEO Search engines lack intelligence. They can’t figure out what your site is about if you do not provide enough clues.

Consider this example. You posted some family photos on your personal blog. Your human visitors can view these photos and appreciate them.

But search engines can’t do that – they can’t understand photos. By simply adding ALT tag to your images, you can tell search engines what those photos are. SEO consists of several such tricks that allow search engines to understand your content.

While optimizing your site for search engines, make sure that your content is structured properly.

You have to understand the limitations and capabilities of search engines to optimize your site for them. Without SEO, making your sites visible in search results will be difficult.

If you want to make your site visible in search results, it should have at least some links pointing towards it.

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HOW TO OPTIMIZE YOUR SITE FOR SEARCH ENGINES In order to optimize your site for search engines, you need to understand how search engines work.

The search landscape includes search systems, search sites, search directories, and search engines.

SEARCH SITE Search sites are websites that allow you to search.

Google and Bing are search sites, and so are Yahoo and AOL. SEARCH SYSTEM Some search sites show search results provided by other search sites. Google is a search system because it shows its own results; it also provides data to search sites like AOL. SEARCH DIRECTORY Search directories contain information about various websites. Yahoo.com is an important search directory.

SEARCH ENGINE Search engines are systems that index the webpages inside websites.

The most popular search sites are Google, Bing and Yahoo. These sites would search the web based on the keywords provided by you.

SOME PROVEN SEO STRATEGIES IMPROVE YOUR LINK POPULARITY If you want to make your site visible in search results, it should have at least some links pointing towards it. If you are trying to rank for highly competitive keywords, you will need a lot of incoming links.

A lot of these links should also contain your keywords in anchor text. Generally speaking, sites that enjoy good link popularity tend to rank well in search results.

INCOMING LINKS HELP YOUR SITE IN SEVERAL WAYS: Search engine spiders follow links, so if other websites link to your content, it will get indexed faster.

Links are a mark of approval.

If you have more incoming links than your competitors, search engines will assume that your website is better than theirs and this will improve your position in SERPs. Links from well-known sites are more valuable than links from obscure sites.

KEYWORD RESEARCH When people look for information online, they type in a word or words into the search box. Keyword research is an important aspect of SEO. Your goal should be ranking for the ‘right’ keywords.

WHAT ARE THE RIGHT KEYWORDS? How will you determine the value of particular keywords?

Consider this situation: you are running an online store selling shoes. Using some web analytics tools, you can find the keywords that drive people to your site. Using the same tools, you can figure out how many sales you make from each keyword. So, for example, if visitors searching for black boots are more likely to buy than those looking for brown shoes, the keyword ‘black boots’ is more valuable.

Before targeting a particular keyword, ask yourself if that keyword is relevant to your content. Will people who land on your site after searching for that keyword find what they want? Will this traffic lead to financial gains? If the answer is "Yes", go ahead and target

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MARKETING comes to SEO, measurement is crucial. So analyze the data about your rankings, links, and referrals.

stick out. Don’t add keywords just for the sake of increasing keyword density. That tactic no longer works.

FIND OUT HOW VISITORS LAND ON YOUR SITE

PAID CAMPAIGNS WILL IMPROVE YOUR ORGANIC RESULTS There is absolutely no evidence to believe that your performance in organic search results will improve if you spend on PPC ad campaigns. You don’t have to spend on PPC if you invest in high quality SEO.

Keep track of every source of traffic to your website. These include the following: DIRECT TRAFFIC These are people who land on your site by typing in your URL in the address bar or clicking on email links that do not have tracking codes.

REFERRAL TRAFFIC This refers to people who visit your site by clicking on your links spread across the web and in your branding campaigns.

SEARCH TRAFFIC This refers to people who visit your site after clicking your listing in search results.

These visitors are the ones you have to track through SEO.

E V I S O S R L T L FO P X U E ES R

You can measure your SEO results using several metrics, including:

those keywords. However, if you don’t sell black boots, there is no point in going for that keyword.

SEARCH FOR THE KEYWORDS YOU ARE TRYING TO RANK FOR Type your targeted keywords into the search box and see what sites are ranking for these keywords. This will provide you valuable information about your competition.

MEASURE AND TRACK SUCCESS If you want to improve it, you have to measure it. When it

VISITS REFERRED BY PARTICULAR KEYWORDS/ KEY PHRASES The keywords that drive people to your site need to be analyzed properly. See if there are any new trends.

PAGES THAT GET AT LEAST ONE VISITOR FROM SEARCH RESULTS This is another metric that you can use to monitor the overall performance of your SEO campaigns.

COMMON MYTHS ABOUT SEO KEYWORD STUFFING This used to work in the olden days, but now it will attract a penalty. Keywords have to be used intelligently throughout the text and they should not

SHOULD YOU HIRE AN SEO EXPERT? If your budget permits it, hire an SEO expert. Hiring an SEO expert when redesigning your site or launching a new site is a good idea. This way, you will be able to ensure that your website is optimized for search engines from the bottom up. A good SEO professional can also improve the performance of your existing site.

QUESTIONS YOU SHOULD ASK AN SEO EXPERT • Can you share your success stories with me?

• Do you employ strategies that violate Google’s webmaster guidelines?

• What kind of improvement can I expect to see?

• When will I start seeing the results?

• Have you worked with other sites in my industry?

• What are the techniques that you use to improve rankings?

• Have you done SEO for international sites?

But before you hire an SEO expert, make sure he is worth his salt. There are several SEO experts out there, but only a few provide real results. The SEO process is not difficult, but it takes a lot of time and research.

So if you have the time for it, it is recommended to try SEO on your own. However, since a typical entrepreneur does not have hours on end, people generally hire SEO experts.

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MARKETING

HOW DRIP CAMPAIGNS TURN

LEADS INTO CUSTOMERS

I

t’s difficult to nurture leads and turn them into buyers.

Wouldn’t it be great if you could automate this process?

With drip campaigns you can do this – when you launch a drip campaign, your emails to your leads will always be relevant and your sales pipeline will have fewer leaks. As a result, you will have plenty of time and resources to focus on things that are really important.

WHAT ARE DRIP CAMPAIGNS? A drip marketing campaign helps your sales and marketing teams in several ways. It is basically an automated process that sends a set of relevant emails to your leads to encourage them to move through your sales pipeline. Since the messages reach them at the right time, they will ensure that the deal is closed.

Turning leads into buyers is not easy. You have to send the right messages at the right time to lead them through the process. With drip campaigns,

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These campaigns deliver relevant content when your leads need them.

The campaign nurtures leads until they are ready to make the purchase.

And because of the efficiency of these campaigns, your sales team will have a constant supply of leads that are ready to close. This will maximize the effectiveness of your sales and marketing campaigns.

you can remain in touch with your leads throughout the buying process. Your leads will appreciate the attention they get. Better still, these campaigns free up valuable sales and marketing resources because they are automated processes.

Advanced marketing automation and reporting tools allow marketers to observe lead behavior throughout the buying process. Using this data they can decide what message to send and when. But having access to too much data may also give you analysis pa-

KINDS OF DRIP CAMPAIGNS

ralysis. This is where drip campaigns help.

If your marketing team spends too much time to identify the perfect content to be sent to your prospects, you will probably end up sending nothing at all.

ADVANTAGES OF DRIP CAMPAIGNS A drip campaign automatically drips relevant information through email to your sales leads over a period of time.

These campaigns deliver relevant content when your leads need them. The campaign nurtures leads until they are ready to make the purchase.

Drip campaigns reduce the time you will need to pitch your product. There are different kinds of drip campaigns.

Educational drips, for example, deliver relevant product information to prepare your leads for purchase.

If your leads start showing loss of interest, reengagement drips will win them back.

With competitive drips, you can target the customers of your competitor by sending them information regarding the benefits of switching to your product. Promotional drips will allow you to lure leads with limited time promotions and special prizes.

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STRATEGY

The perceived value of your product should be greater than your asking price. If customers equate less value with your product, they will definitely insist on a low price.

W

hen you’re selling great products for reasonable prices, you’ll get plenty of takers, whereas over-the-roof pricing will dissuade people from buying. What is the right price? It depends on the relationship between the perceived value of your products and the price consumers are ready to pay for them. When the perceived value is higher, prices are also higher.

When customers are unhappy or sales are down, small businesses tend to drop prices to lure them back.

But before lowering prices to boost sales, you have to think about ways to raise the value you provide.

HERE ARE A FEW THINGS TO CONSIDER: The perceived value of your product should be greater than your asking price. If customers equate less value with your product, they will definitely insist on a low price. On the flip side, a low price almost always reduces the perceived value of the product. It is common sense.

Dirt cheap products can’t be of the highest quality. Therefore, it is imperative that you strike a balance between the two. You can’t reduce your prices beyond a certain level.

Before reducing prices, you have to ensure that you will be able to live with the lowered price. Increasing prices is difficult after you have reduced them because customers resist price increases.

If the product has a huge demand and is rarely available, the price is unlikely to be an issue. Even if you increase the prices, you will still have buyers.

Tell someone he needs a surgery to save his life and he will readily pay whatever price the surgeon charges.

But when he has to buy useful, yet dispensable things like detergents or perfumes, he will comparison shop. He wants to get the best prices.

Why? A surgery saves lives.

It cannot be substituted and hence price does not matter here. Other items are less essential and that makes them more price-sensitive.

Generally speaking, price becomes less of an issue if the product is rare, essential, or hard to substitute. If the product or service is needed immediately, the customer will pay whatever price the seller charges. Emotionally sensitive products also tend to have higher price tags. By contrast, products that are readily available and that are easy to substitute are more sensitive to price.

EVALUATE YOUR PRICING You should check your prices annually. Here are a few factors you should consider while changing prices.

YOUR PRICE RANGE • Compare your offerings with those of your competitors. How do they rank in terms of price and value?

• Is it possible for the customer to find a substitute that is just as good? Is your product indispensable? If the product is not essential, sales will drop if you increase its price.

• Do you charge extra for additional benefits or features? Do you offer any promotions, rebates, incentives or discounts?

• Do you offer discounts when they purchase in bulk quantity? Does your pricing encourage your buyers to take the desired action? For example, if you offer a discount on bulk purchases, it may reduce friction and encourage future purchases.

• Do you change the prices of your products often? How often does your competitor change their pricing? Do you expect any market shifts or competitive actions that may have a bearing on your pricing?

• Consider all these things when you decide a price tag for your items.

31

COVER STORY

As brokerowner of Prime Ventures, Mike and his team follow the approach of making the client's goal the priority.

MIKE

MASSO

The Road to Success 32

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COVER STORY

M

ike Masso, a native Texan who lived in the Rio Grande Valley for most of his life, grew up to be a very successful entrepreneur. It began when Mike’s parents, George and Joy Masso, instilled in him the values of solution-oriented determination, encouragement, and spiritual guidance. They provided tremendous examples of entrepreneurship and success, which came in handy later.

Over the last 25 years, Mike devoted much of his life to launching and operating several successful businesses, serving, and directing in ministry operations, and helping others in pursuing their life ventures.

Beginning at an early age, Mike worked in his parents’ retail and wholesale businesses. He then started his first venture, a T-shirt design shop at the age of 15, and his second business when he was 18 years old, named ‘Genesis Advertising”. This gave Mike a great understanding of the fundamental elements of business development. Mike went on to establish many other successful ventures, such as the first computer company (Westec Computer Support) in the US that could integrate Electronic Data Interchange (EDI) functionality for independent retailers.

In a quest to learn more, Mike served as the Computer Automation Director of the Western Retailer’s & Manufacturer’s Association from 1994 to 1996. In the mid-nineties, Mike along with Jim Deuser (who was the General Manager of JC Penney then), co-established the McAllen Downtown Coalition (MDC) to create a unified effort for strategic marketing among the downtown businesses. The

Mike welcomes anyone with a desire to expand their business or investment opportunities in the RGV or Texas Hill Country.

MDC later facilitated the effort for a successful downtown revitalization carried on by the Downtown McAllen Improvement District.

EDUCATION AND EXPERIENCE Mike’s college education encompassed studies in business, computer information systems, psychology, and theology. In 1992, he purchased The Boot Jack Western Wear store in downtown McAllen, TX from his parents and opened an additional location in 1995, on North Tenth in McAllen, expanding it to a 100+ employee company. The family-owned Boot Jack stores were nationally recognized as one of the top three Western Image stores in

the US, during his time with the Boot Jack. In 2001, Mike purchased The Christian Book Shop (now called Viva Life Christian Gift Shop). Within the first 18 months at Viva Life, the sales volume increased to more than four hundred percent.

His entrepreneurial skills enhanced as he took more risks and started new ventures. Over the last fifteen years, Mike established a strong presence in the real estate investment market too, as a partner in SPI Coastal Properties on South Padre Island. Currently, he is the owner and broker of Prime Ventures Commercial Real Estate (www. primeventuresrgv.com), serving the Rio Grande Valley and other strategic investment areas in Texas.

GOING PRIMETIME!

Whether you are a national chain weighing options for a new location, or a local entrepreneur building your dream, Prime Ventures is committed to putting their clients' goals first.

Mike’s extensive knowledge and understanding of the market makes the ground for good relationships with property owners, national, regional and local tenants, developers, banking institutions, and lenders. Prime Ventures utilizes its strength wisely to deliver its clients the best service possible.

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COVER STORY

IT’S ALL ABOUT FAMILY Mike is also co-director with his brother Mark, managing over 200,000 square feet of commercial and residential property in the RGV, through their company Masso Family LP Properties. Mike is currently expanding his endeavors (and client opportunities) into emerging trade areas in the Texas Hill Country. Mike welcomes anyone with a desire to grow their business or investment opportunities in the RGV or Texas Hill Country.

Over the years, while Mike had been involved in many business and ministry ventures, he also has been blessed to be very active in his children’s lives. Mike, and his wife Robyn have four children – Josh, Jordan, Jarred and Tori, who range from 15 to 26 years olds.

MINISTRY While involved in many business endeavors, Mike has also been able to pursue his passion for ministry. Since 1988 through early 2000, he served in several capacities as youth pastor, Minister of Education, Church Elder, and Family & Marriage teacher. Mike also established a ministry leadership training school for working adults called Last Days School of Ministry in 1989. He served on the founding board of one of the Valley’s most successful Christian schools, Covenant Christian Academy. In 2002, he setup a non-profit organization called the VYBE (Valley Youth Being Elevated) geared towards encouraging and giving opportunity for youth to express themselves and

We should wake up each day with this thought in mind, "Thank you Lord for a new day. How can I serve you best with the opportunities and resources you have given me to advance your Kingdom of love and grace?"

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ventures, he is now able to integrate gut-level intuition with effectively designed tools and resources to help people discover their gifts and achieve meaningful success through life coaching sessions, seminars, and retreats. This naturally lead Mike to establish Leadership Alliance (LA), a professional life coaching and leadership development organization. Mike is certified by the World Coach Institute (WCI), a member of the International Coach Federation (ICF), Human Behavior Consultant, certified by Dr. Robert Rohm, and a Stress Management Consultant, certified by Dr. Dan McGee and Associates.

influence their culture through media arts (music, video & sound production, graphic design, radio, and art). For 12 years, Mike served on the McAllen Mayor’s Prayer Luncheon as a committee member and chairperson. The purpose of this organization is to provide a non-political, annual program featuring nationally known speakers that challenge, inspire and unify the community and its leaders to seek God for guidance, favor and peace–locally and nationally.

LEADERSHIP ALLIANCE

As an extension of Leadership Alliance, Mike leads wilderness adventure retreats called Soul Excursions (www. soulexcursions.org). SE’s purpose is to provide epic opportunities for followers of Christ to “detox” from the chaotic pace of the daily grind and enter into a spiritual rhythm of adventure in the wilderness that will recalibrate and revive their soul.

"Through trial, error, failure, success, heartbreak and joy; we must recognize that our lives will not be valued by what we accomplish, but by what we surrender to God and for others."

Since Mike devoted a large part of his life over the last 25 years to initiating and running several successful businesses, directing ministry operations and serving a multitude of clients in pursuing their

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TAXES & LAW

WHAT EVERYBODY OUGHT TO KNOW ABOUT INTELLECTUAL PROPERTY PROTECTION

Y

ou might have heard the term intellectual property. What does it mean?

In its simplest terms, it is used to refer to ideas and concepts.

You can protect intellectual property through the use of trademarks, copyrights, and patents. Copyright is used to protect written work. A trademark protects names, phrases, or symbols that represent your company. Patents apply to specific product designs. Keep in mind that none of these methods are foolproof ways to protect your intellectual property.

COPYRIGHT PROTECTION

You can use a copyright to protect the following: idea. It does not © Literary works protect the idea. © Dramatic works The only way to (This also includes accompanying music) protect concepts © Musical works and ideas is to (This also includes accompanying words) use confidenti© Graphic, sculptural, or pictorial works ality agreements © Choreographic works © Audiovisual works, and trade secret including motion pictures law. They are © Architectural works meant to prevent © Sound recordings the disclosure or mis© Websites and computer use of ideas. programs

PATENTS When you have copyright over a work, you have exclusive rights to copy, modify, distribute, or display that work publicly.

Note that concepts or ideas don’t have copyright protection. Copyrights only protect a particular expression of an

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With patents, you can protect methods, inventions, and processes that are ‘useful,’ ‘non-obvious,’ or ‘unique’. A patent will give you a twenty-year monopoly on using, selling, making, or importing a particular invention in the US. Getting a patent is not easy and the requirements are

complex. Here are the main ideas in a nutshell.

The product has to be innovative. It cannot be something that people in the US already use or know about. It cannot have been described in a publication in the US or elsewhere. Also, it cannot be available for sale in the US more than one year prior to your application for a patent.

The product has to be non-obvious. If it is obvious to an individual who possesses ordinary skills in the pertinent science, it cannot be patented.

The product must be useful. It must be a useful machine, an industrial or technical process, a manufactured article, new chemical compounds, or special mixtures of ingredients.

Since you have to make full public disclosure of your work in detail, patent protection will prevent you from keeping any trade secret.

TRADEMARKS Trademarks are brand names.

Any word or symbol that represents a product and helps to distinguish that product from other products on the market is a trademark.

You can register a trademark in three ways.

• After you have used the mark, you can file a ‘use’ application.

• If you haven’t used the mark yet, you can file an ‘intent to use’ application.

• In cases where a foreign application already exists, you can just rely on that.

• You can use the mark (TM) next to the mark over which you have a trademark.

• To use the registration symbol (®) you have to register the mark with the PTO. Before receiving registration, you cannot use the symbol (®) with your mark.

Your mark won’t make a strong trademark if it is not distinctive. You will retain trademark rights as long as you use that mark to identify your products or services. The registration will be terminated if you stop using the mark.

TRADE SECRETS Trade secrets are different from trademarks, copyrights or patents. They are not registered with a government office. Trade secrets usually apply to unique recipes that provide your business a distinctive advantage. The best way to protect a trade secret is to keep it a secret. If someone leaks your trade secret, you can sue them for theft. However, this wouldn’t prevent them from using the secret, but you will get money.

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TAXES & LAW

Tax season is the busiest of them all. If you run a small business, you can file your tax return in different ways. It depends on the way you run your business – while most small businesses are run as a sole proprietorship, some small businesses are also incorporated as a corporation or an LCC.

Y

ou have to use different tax forms for each of these entities. Note that irrespective of the tax form you use, your taxable income is always calculated in similar ways.

You can prepare your tax return in three simple steps.

1

COLLECT YOUR RECORDS

Before you start filling out your tax form, you have to collect all business records which show your expenses and earnings. When you have these records on hand, filling out the tax form is easy.

If you use a spreadsheet to record all of your business transactions, you can easily calculate your income and expenses.

2

too, you can use a Schedule C attachment. If your business is run as a corporation, you have to file a corporate tax return on Forum 1120.

3

FILL OUT YOUR TAX FORM

Now that you have gathered all business records and found the right form, you can start filling it out. If you are reporting your company expenses and income on a Schedule C form, you can find a copy of the form on the IRS website.

Schedule C makes filing your tax returns easier. You only have to fill out two pages and list all of your expenses.

Deduct your expenses from the earnings to calculate your net profit. You can then copy this figure to your personal income tax form.

You may be using a Form 1120 or a Schedule C, but you will be calculating your taxable income in the same way. The Form 1120, however, needs more details and many of them may not apply to small businesses. Note that a Form 1120 is different than your personal income tax return. You cannot submit them together.

Don't forget deadlines Failure to file your tax

returns before the deadlines will result in hefty fines, so pay attention to different filing deadlines. If you are using a Schedule C tax form, it is part of your personal tax Form 1040. In this case, you don't have to remember any separate filing deadlines. The deadline for your personal income tax return and Schedule C is April 15.

Form 1120 has to be filed by the 15th of the 3rd month after the closing of the tax year. For most taxpayers, it is March 15. Note that you can't send this form with your personal tax return.

Just use the right form and you’ll find that filing a federal tax return isn't really all that complicated after all!

You have to use different tax forms for each of these entities.

Note that irrespective of the tax form you use, your taxable income is always calculated in similar ways.

GET THE RIGHT FORM

You have to find the right IRS tax form for reporting your business income to the IRS. Finding the right form is crucial. If your small business is run as a sole proprietorship, you should report your expenses and income on a Schedule C attached to your personal tax return. Even if your business is run as an LLC, you may be the sole owner. In this case

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INVESTMENTS

42

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MARKETING

We all pretty much know that the age-old marketing fundamentals will never change. But when the landscape changes, how you work on these fundamentals becomes more important than ever.

hate homogenization. Personalization is here to stay and it will force marketing professionals to change the way they manage global brands. This year, more companies will decentralize their structure and try to increase their regional influence.

SEO IS GOING TO BECOME HARDER

S

mart marketers understand the need to stay ahead of the marketing trends and to anticipate changes.

Otherwise, they run the risk of getting devoured by their competition.

We saw quite a few changes in 2014. And if they are an indicator, we will see even more changes in 2015. So, what does the future hold for online marketing professionals? We asked some social media professionals, and here is what they said.

GUEST POST LINKS WILL NO LONGER BE EFFECTIVE SEO experts have been guest posting for quite some time because it is a great way to build quality backlinks.

This strategy used to work very well, but now guest posting has lost much of its value. Google has already warned against this practice, but many search marketers still employ this tactic because it works. But that is going to change in the coming years. In 2014, Google penalized some high profile guest post networks. This year, we can expect them to launch algorithmic updates to devalue guest post links. You will probably not get penalized if you do not use keyword rich

anchor text in your guest post links. But those links are unlikely to improve your search rankings any more. What this means is that you will need to find better ways to build links.

TRANSPARENCY IS GOING TO WIN BIG TIME In 2015, customers will continue to exert more influence and power. Very few brands now take advantage of the idea of transparency. Actually, several brands fight this idea.

Google's Panda and Penguin algorithmic updates have changed the SEO industry for good. We will see more of these algorithmic updates in 2015. As Google launches new algorithmic updates, manipulating search results will become harder. Therefore, you will need to focus more on building better products and services. You will also need to keep adding quality content to your sites. This does not mean that you should stop doing SEO. Actually, you need to focus more on it because at least some of your competitors will be shifting from SEO to Pay

Personalization is here to stay and it will force marketing professionals to change the way they manage global brands.

This year, the most successful brands will be the ones that give a clear picture of what they're doing for the welfare of the consumer.

MARKETING WILL FOCUS ON PERSONALIZATION RATHER THAN GLOBALIZATION Thanks to innovations in communications technology, the world has become more connected than ever. However, marketing is becoming localized because consumers

per Click advertising. When they pay less attention to SEO, you will be able to obtain high rankings with little effort.

YOU WILL FIND MORE AND MORE FREE MARKETING TOOLS Google Analytics is already free. This year you will find many more free marketing tools because small businesses can't afford fee-based tools.

This will increase the demand for free products. Companies will offer these products for

43

MARKETING free for a limited period. They know that your business will eventually grow and then they will charge you.

THE RISE OF WEARABLE TECHNOLOGY Micro-location technologies are designed to combine the online experience with the offline one. Apple's iBeacon has already revolutionized the scene. Slowly but steadily, it is going to be introduced into commercial environments.

Wearable technology will also become more popular. It is safe to assume that this year we will see some marketing applications of this technology. The Internet of things (IoT) will create an altogether new marketing environment.

Marketers will need to work hard to keep pace with the development of this technology and meet the changing requirements and preferences of the customer.

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If you want to retain your competitive advantage, you will have to adapt your online marketing methods to suit the behaviors and preferences of your target audience.

VIDEO WILL BECOME MORE POPULAR In 2015, the most popular content format on social media will be video. There will be more demand for regular video items like podcasts because they create the highest level of engagement on social media. This is something that marketers will need to notice.

Here are some numbers to prove this. According to ComScore, Facebook beats YouTube in the number of videos viewed on desktop in August 2014. By September,

the number of video views on Facebook reached one billion/ day. It should be noted that YouTube still enjoys more popularity across all devices.

YOUTUBE'S POPULARITY WILL DECLINE AS SOCIAL MEDIA EMBRACES HOSTED VIDEO Popular social networks like Twitter, Facebook, and LinkedIn prefer videos hosted on their platforms. As a result, marketers will need to upload original videos to each of these social networks to reach their target audience.

Remember that we are not exactly talking about short videos here. They will remain popular, but you will need to upload full-length videos as well. Social networks prefer videos uploaded to their sites because they will keep users on their site and provide more opportunities to advertise.

This trend is going to change the way brands work with their promotional videos.

YOU WILL NEED TO PAY FOR SOCIAL MEDIA ADS Social networks are exploring all possible ways to attract advertisers to their platform. Facebook has already announced its plans to limit unpaid promotional posts in its news feed in 2015. Twitter hasn't ruled out that possibility. They may also implement changes to their news feed algorithm. Instagram is also busy expanding their advertising platform. Since they are owned by Facebook, we can't rule out the possibility of them implementing an algorithm which limits the exposure of unpaid posts from brands and businesses. As a result, marketers who stayed away from paid advertising on social media will have to adopt it in 2015.

CONCLUSION If you want to retain your competitive advantage, you will have to adapt your online marketing methods to suit the behaviors and preferences of your target audience. You will have to actively reach out to your customers. In other words, you will have to inspire changes in the way consumers interact with your brand online.

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FINANCE

WHAT YOU NEED TO KNOW ABOUT FHA LOANS Our unique FHA Choice Program can help borrowers with lower credit score.

W

ith the tax season upon us, it is important to know which program can be helpful and best for you. Buyers often get confused between an FHA loan and a conventional loan.

Below are some of the main advantages that a buyer gets by choosing an FHA Loan.

LOW DOWN PAYMENT A misconception among most buyers is that they need to save 10% or 20% of the sales price for down payment. The truth is that in an FHA loan, the minimum initial investment (down payment) is 3.5% of the sales price; allowing the buying process to be more affordable than one may think.

DON’T HAVE A PERFECT CREDIT? NOT A PROBLEM. Some clients/borrowers may have some issues with their credit rating. Low credit ratings may not allow them

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to buy a house using a conventional loan. Our company (PRMI) offers an FHA loan program that helps these borrowers. Our unique FHA Choice Program can help borrowers with lower credit score (500 FICO and up).

Borrowers that have filed for bankruptcy or undergone a foreclosure within the past few years, may still qualify for an FHA loan (granted they need to re-establish their credit and still need to meet other program requirements).

UPGRADES AND RENOVATIONS ARE PERMITTED Some borrowers find their dream home, but they desire to do some upgrades and/or renovate their future home.

In such cases, with a special program called the FHA 203(k) Loan, buyers can improve or renovate their home, including installation of energy efficient appliances. All this can be included into their loan and still allow them to

pay the minimum down payment. Not bad, right?

MORE HELP IN CLOSING COST FROM THE SELLER When buying a house, buyers are responsible for out of pocket expenses, such as, an appraisal fees, origination fees, attorney fees, and title fees, etc. Utilizing an FHA loan, the seller or the home builder can help by contributing up to 6% of the sales price for your closing cost.

This will minimize your out of pocket expense.

Edgar J Hernandez Branch ManagerPRMI RGV NMLS# 226169

FINAL THOUGHTS Keep in mind that recently, the government reduced the monthly Mortgage Insurance premium for all FHA loans, from 1.35 % to .85%, giving you (the buyer) more buying power for your money.

Remember, FHA offers a variety of mortgage products that can be utilized for your mortgage needs.

For more information about these programs and for a free mortgage analysis, feel free to call, email or text me.

I am here to help you finance your home.

O: 956-616-4926 Fax 1.800.519.7915 Apply on line: www.PRMIUSA.COM

Choose my name from the loan officer drop down menu.

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STRATEGY

HOW TO

RETAIN YOUR

A business can increase their profits by 25%-95% by simply increasing their customer retention rates by 5%.

CUSTOMERS

WITH

10 48

EASY STEPS www.businessadvisermagazine.com

STRATEGY

A

Harvard Business School study claims that a business can increase their profits by 25% - 95% by simply increasing their customer retention rates by 5%. What do we learn from this? You can’t run a sustainable business if your customers do not keep coming back to you.

Here we have 10 tactics to help retain your customers.

1

COMMUNICATE CLEARLY

Your communication with your customers has to be clear, otherwise they will not pay attention to you; and customers who aren’t listening are unlikely to be loyal to your brand.

The most effective way to build loyalty is to stand for something. Customers care about your brand because of shared values. You have to stand for something.

2

TAKE ADVANTAGE OF POSITIVE SOCIAL PROOF

Positive social proof is a great strategy to get people to listen to you. People will readily join an email list if it already has

25,000 subscribers. And if you don’t have many subscribers, you will not attract people even if your posts are really great.

3 4

SOLVE THEIR PROBLEMS

Provide solutions that match the goals, pains, and aspirations of your target customers. Filling an existing demand is easier than creating a new one.

FIND THE CORRECT WAY TO SELL

If customers don’t like the way you sell your products, they won’t come back. Use persuasive words to encourage them to buy more.

Words like ‘free’, ‘instantly,’ and ‘new’ work like a charm, so use them in your marketing materials.

5

REDUCE FRICTION

Almost a quarter of your buyers are conservative spenders. Use reassuring words to encourage them to buy more.

Highlight the cost benefits of buying from you.

6

GIVE BACK TO YOUR CUSTOMERS

This might appear costly, but it really isn’t. You don’t have to spend a lot of money to give back to your customers. Even simple gestures help create reciprocity between you and your customer. Do something nice for your customer, and if you do it when they least expect it, the effect can be more powerful.

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MAKE IT PERSONAL

Provide personalized services – everybody loves them!

Customers who receive it will become loyal to your brand.

SUPPORT

You have to provide exceptional customer service if you want your customers to keep coming back.

Speed is not as important as quality. Courteous and helpful customer support is better than a speedy resolution.

Encourage your employees to listen to your customers and spend more time with them.

Customers will enjoy the buying process when they do not feel ignored or rushed. This doesn’t mean that your employees have to spend hours

on each customer. Train them to find out important customer traits, and target them.

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CHOOSE THE RIGHT CHANNEL

While providing online support, make sure that you choose the platform that your customers prefer. Most people prefer email for business communications, but if they have a more pressing issue, they may prefer online chats.

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LOYALTY PROGRAMS Loyalty programs work because they cater to our ego. People enjoy being gold members or VIPs of the program. However, this will only work when they realize that there is a less influential silver class.

Label your customers appropriately. People will readily engage with your brand if you label them with a positive trait.

I installed Google Chrome and it called me awesome. I felt happy. Try calling your paid members with words like that and see what difference that phrase makes.

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