Small Business Today Magazine - February 2013 Edition

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SBT Houston Staff February 2013

FROM THE

Publisher

STEVE LEVINE

Networking Rule #1 Regardless of the business you own or your role in that business, you are all in sales.

Your business depends on gaining more clients and keeping the ones that you already have.

The formula for a growing and successful business has never changed; it is all a matter of “Get, Keep, Grow.” Whether you have a sales force, business development professionals, or are a “one man band”, you have a responsibility to take an active role in your business’s sales and marketing and it really does not matter exactly what your business does.

If your mission in 2013 is to dramatically grow your business, I encourage you to increase your networking events and learn more effective networking skills. Most people come to networking events hoping to find more clients by sharing their story (that of their business, product, or service) with as many people as possible at that event. Sounds reasonable, doesn't it?

Let's start out with “Networking Rule #1”: You are not attending the event to tell your story. You are attending to meet people; yes and to ask what they do and suggest some way that you and your business could be of assistance to them. Once you make that connection, you will find that they will reciprocate. That is, they will ask you what you do and ask you how they could be of assistance to you.

This month, we shine the spotlight on another of our favorite organizations that provide excellent opportunities to network and expand your business. SMALL BUSINESS TODAY is very proud to be a member of the Houston West Chamber of Commerce and to be a finalist for one of their “Star Awards” that will be announced later this month. It is amazing how many of our past and future cover honorees, our photographer, several of our columnists, and board members are members of the HWCOC. Houston West Chamber of Commerce (HWCOC) has been serving West Houston businesses for more than 30 years, with Jeannie Bollinger, CEO and President overseeing it for the last 10 years. When Jeannie came on board, The Chamber's funds were in the red. Within two years, Jeannie had completely rebuilt The Chamber, increased its revenue stream, paid off all debts, and doubled membership. Within the last decade, HWCOC has seen extensive growth, business success, new digs, new events, new committees, and has a fierce desire to serve its members with every action resonating its mission statement: “In Business. For BusinessTM.” The Chamber's main objective is to create a climate of growth and success in its business community. They currently boast 650 paid, active members and 12 different committees making it one of the most active Chambers in Houston. “All of our committees are quite active, meet once a month, and run themselves. They all decide what events to host and how best to further the interests of the businesses we serve. It's their Chamber,” explained Jeannie. We at SMALL BUSINESS TODAY Magazine encourage you to make it your Chamber, too!

Special thanks to Diana Tatum, owner of TX Longhorn for Hire and Gateway, the “class clown” of the three longhorns Diana has available for parties and events. Gateway, named after the Gateway Computer box because of his splashy color, is seven years old, 1,900lbs., and has big, soft expressive eyes. He really loves being photographed, too! Diana is based in Hempstead, TX and was kind enough to help us with our unique cover and locale. Diana can arrange a unique, memorable event for you too and can be reached at (832) 492-2014 or (979) 826-9185. You can also find out more about Diana and her company at www.TxLonghornForHire.com. We promise you that she won’t “steer” you wrong!

Also, special thanks to makeup artist Keri Ann Reardon who did Lisa's makeup for the cover.

I hope that you enjoy Lisa’s story as much as Barbara, Eric, Vanessa, and I enjoyed bringing it to you!

Success to You! Steve Levine Executive Publisher

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President John Cruise Executive Publisher Steve Levine Associate Publisher / Creative Director Barbara Davis-Levine Contributing Editors Tammy Moshay Devon Ray Battaglia Business Development/PR Bill Huff Donna K. Rooney Graphic Design Vanessa Vara Photographers Eric Kleiman Contributing Writers Errol Allen Don Brown Dwayne Briscoe Barbara Davis Dr. John Demartini Erich Fruchnicht Toni Harris David Holt Bruce Hurta Jeffrey Jones Steven Kay Craig Klein Bertrand McHenry Hank Moore Mike Muhney Amy Olivieri Devon Ray Rita Santamaria Alvin Terry Pam Terry Jack Warkenthien Doug Winnie Aimee Woodall Aaron Young Chief Advisor Hank Moore Publisher’s Advisory Board Debra Bann Cyndi Barnett John Cruise Dirk Cummins April Day Maya Durnovo Kathie Edwards Leonard Faucher David Holt Richard Huebner Julie Marie Irvin Jeffrey Jones Steven Kay Craig Klein H. Quincy Long Dr. John Demartini Hank Moore Lisa M. Morton Mike Muhney Neil Polansky Maria Rios Rita Santamaria Allen Shapiro Pam Terry Jack Warkenthien Doug Winnie R.D. Yoder Aaron Young

Phone: 832-460-2020 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today 5380 West 34th Street, Ste 230 Houston, TX 77092 See us on the web at www.SBTMagazine.net

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INSIDE

HOUSTON FEBRuary 2013 EDITION

ERIC KLEIMAN PHOTOGRAPHY

TM

IN THIS ISSUE Put Joy First 8 Getting Back on Track! 9 Proven Methods for Unleashing the Entrepreneur Within 10

6

Lisa Morton TEXAS BOOKKEEPERS TAKING THE BULL BY THE HORNS AND SUCCEEDING AGAINST ALL ODDS

26

Houston West Chamber

47

216 Resources, Inc.

HOUSTON WEST CHAMBER OF COMMERCE GIVES BACK TO THE COMMUNITY WHENEVER THEY'RE FINANCIALLY ABLE TO DO SO

Do You OWN Your OWN Branding? What you don't know might surprise you. 11 Customer Focused Management-The Preferred Approach to Growth 12 The Ladder of Wealth 14

Would you or your company like to be profiled in our next issue?

Today’s New Customer Craves the Feminine Touch 16 Sinews of Successful Relationships 17 Who Says 19 Scoring From the Red Zone: How to ‘Open More Sales 21 How to Deliver a Great Speech 22 Three DRASTIC Steps to Get More Clients - Experience, Entice and Engage 23 Survive Then Thrive in 2013 – 10 Things All Business Owners Must Do in the New Year 24 Relationship Capital is Important for Small Businesses, Too...Three key steps to growing your influence 32 The Power of Enthusiasm in Customer Service 34 Your Banner Ad is So Passé 36 You’ve Landed the Client…Now What? 38 Qualifying For a Real Estate Mortgage Through the SBA Loan Programs 39 Where to Find Existing Businesses For Sale 48 Seven Deadly Mistakes for Failure in a Small Business 50

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For more information contact Steve Levine at: 832-460-2020

A LEADING, FEMALE-OWNED BUSINESS PROVIDING MATERIAL AND SERVICES FOR CONSTRUCTION

HOUSTON EDITION PUBLISHER: STEVE LEVINE SMALL BUSINESS MAGAZINE IS PUBLISHED MONTHLY BY LEGACY PUBLISHING GROUP, LLC. 5380 WEST 34TH ST. STE. 230 HOUSTON, TX 77092 EXECUTIVE PUBLISHER: STEVE LEVINE PRESIDENT: JOHN CRUISE PHONE: 832-460-2020 www.SBTMagazine.net ADVERTISING RATES ON REQUEST. BULK THIRD CLASS MAIL PAID IN TUCSON, AZ. POSTMASTER: PLEASE SEND NOTICES ON FORM 3579 TO 5380 WEST 34TH ST. STE. 230 HOUSTON, TX 77092 ALTHOUGH EVERY PRECAUTION IS TAKEN TO ENSURE ACCURACY OF PUBLISHED MATERIALS, SMALL BUSINESS TODAY MAGAZINE CANNOT BE HELD RESPONSIBLE FOR OPINIONS EXPRESSED OR FACTS SUPPLIED BY ITS AUTHORS. COPYRIGHT 2012, LEGACY PUBLISHING GROUP, LLC. ALL RIGHTS RESERVED. REPRODUCTION IN WHOLE OR IN PART WITHOUT WRITTEN PERMISSION IS PROHIBITED.

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FEBRUARY2013 2013|| PG PG66 SMALL BUSINESS TODAY MAGAZINE JANUARY

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EDITORIAL FEATURE

Put Joy First

THE BUSINESS OF REAL ESTATE

By Rita Santamaria

T

he happiest people are those who feel charged about what they do, where they live and the people around them.

What is essential in taking charge of loving your career or the day to day living with happiness is making time for things you adore. It is not only nurturing but it adds meaning to life because it reminds us why it’s fun to be on this planet.

Happiness move passions on paper.

#1:

Put

your

Write down everything you love or feel passionate about until time is up.

(4 min.)

Pleasure, Cleanliness H o n e s t y , Simplicity, Charity, Humility, Thrifty, Courage, Humor, Trustworthiness, Dependability, Intelligence, Wealth.

Create an appreciation journal.

It is difficult to get caught up in depression, fear or anxiousness when you are caught up in positives.

Here is how this Happiness #3 works: Write down one positive aspect of your life every day. A positive can be finishing the painting of your garage, a home improvement project as well as your spouse served you coffee this morning.

Such as: entertaining with friends, wine tasting, golf, travel, time with children/grandchildren

Happiness move #2: Writing down ways to practice your core values.

If I value loyalty, then I need to call a long time friend and say hello. If I know that being healthy is important to me then on my calendar I need to pencil in nutritious meals, exercise time. Here is a short list of qualities that you might want to decide are part of your core values which are from Dan Baker, Ph.D., author of What Happy People Know: Adventure, Empathy, Kindness, Art, Faithfulness, Love, Boldness, Fitness, Loyalty, Cheerfulness, Health,

Monday: What did I enjoy most about my day?

Tuesday: How did someone enrich my life today?

Wednesday: What gave me peace of mind today? How? Thursday: How did I help someone today?

Continued on page 46

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Now, find time in the next 24 hrs. to enjoy one thing from the list.

Defining your core values is important.

If there are core values that help you handle day to day interactions with people, and make you less vulnerable to being displeased then incorporate this value into each day. For example, if my core values involved loyalty, trustworthiness, health, humor, then I need to find ways to practice these values to fulfill joy.

To help with this diary you can write in your daily calendar these questions per day to get you going with the training of your brain to notice what’s going well in your life rather than what’s going poorly.

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 8

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EDITORIAL FEATURE

Entrepreneurs Tool Box Getting Back on Track!

ENTREPRENEURS WORKBOOK

By Alvin E. Terry, MBA / Business Consultant, Dynamic Business Builders

A

s you look back on the progress that you have made since the beginning of the year to the present day, have you accomplished what you projected in your Business Plan? Have you achieved your gross revenue projections for the New Year? Was your Business Plan realistic enough to put you on the right track? Or, did you just pull those numbers out of thin air? Did you do your research? Did the “economy” perform as you had wished, or were you surprised? Did your personal life situations affect you more than you had anticipated? Were you surprised by the market share that your competition gained? These are just some of the questions that bring home reality in the world of business.

The experiences that we encountered this year are unique to each of us as individuals. I have had mine, too. Those experiences that we all have had are inextricably interwoven.

cannot see the forest for the trees, meaning that as you are caught up with the daily operations of managing the business, the bigger picture of keeping on track and guiding the business down the right road may become blurred and out of focus because you are standing too close.

I know that there is a lot to do – been there, done that, still doing that. It never ends unless you do. Embrace the proper people and engage the proper mind set.

You may contact Alvin E. Terry, MBA @ alvin.terry@rocketmail.com or by Cell @ 713-392-9107.

Since my main focus is on the art of doing business, I will highlight the activities that are supposed to make us better in our quest to be successful. Turning your dreams into reality requires a lot of work, not hard work, but a focus on the tried and true basic guidelines that we all read about. If you read books about business, and you should, you should know that these words are repeated countless times across the spectrum. These words of wisdom have been echoed before. Whether you have practiced these guidelines and principles correctly may be directly reflective in the results that you are experiencing today.

As practicing business professionals, you should have established projected sales revenue for the entire year.

With the correct market research coupled with historical performance data, your assumptions should be a roadmap in which to operate with. Your individual business plan or business model should have milestones and benchmarks to track the progress along the way.

Someone has to be the “bean counter” in order to help navigate through the maze you are encountering with every step. In growing, persistence is an everyday thing.

If you are perplexed about why you are not on track with your projections and cannot pinpoint the reasons why, then you may need to consult with an outside source, whether it may be a consultant or mentor to put some extra objective eyeballs on the situation. Sometimes it may be an adjustment in the way in which you are looking at things. Sometimes it may be that you www.SBTMagazine.net

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EDITORIAL FEATURE

Proven Methods for Unleashing the Entrepreneur Within

By Dr. John F. Demartini

A

n entrepreneurial spirit resides deep inside everyone. When this inspired driving force is unleashed, visionaries and leaders emerge. Those who take inspired action (proactive thinking and behavior rooted in inspiration and purpose) and who subsequently create amazing accomplishments are crystal clear about their purpose, goals and objectives. These risk takers, change agents and trail blazers are living and acting congruently with their highest values and are, therefore, willing to do whatever it takes to fulfill their dreams and desires.

Others are “settling” for the status quo – not wanting to rock the boat or make waves, not wanting to experience changes or challenges, not wanting to admit that they are essentially afraid to “go for it.”

Fighting Fear Those who follow their calling and embark on the journey toward business ownership have been known to face and overcome fears. The seven fears that can hinder the entrepreneur from amazing achievement are as follows: 1) The fear that they are not intelligent enough. The fear that they are not creative or imaginative enough or that they don’t have a degree or the right credentials. This fear can stop fledgling entrepreneurs from seeing their real intellectual capacity and can cause them to shrink away from taking inspired action which could help them grow a thriving and globally serving organization.

The fear of failure. The fear that they could fail or not succeed at their entrepreneurial endeavours can sometimes be so overpowering that they lie to themselves about their dreams and say to themselves “they are not really all that important.”

The fear of loss of money or not making enough money.

This fear can cause them to remain in a job that does not inspire them and make them unconsciously spend their monies so they will have an excuse not to take a risk and create their own business with even greater profits.

The fear of losing the respect of family members. This fear can make them worry that their family members may disapprove; that their loved ones may leave or reject them if they are not doing what these “loved ones” see as “the right thing.”

The fear of social rejection. The fear of what others will think, or that others won’t like them, that they won’t fit in.

They believe that someone else’s opinion is more important than theirs, which can stop them from doing some service that is truly amazing.

The fear of not being physically capable. The fear of not having enough energy, not being strong enough or having the right look to fulfil their vision.

The fear of breaking away from accepted establishment norms that may be stagnant, breaking established ethics that may be outdated and doing something they don’t believe will be acceptable by older authority figures such as polarized religious groups or some radical fraction of government. With this fear, they can remain subordinated or minimize themselves and their dreams to someone else to whom they have given power.

One of the ways to help dissolve these seven self-imposed fears is to write down 100 benefits to each of the very fears that they imagine might occur until they see that they will get just as many benefits as perceived drawbacks if the thing they feared actually did occur. A fear, as defined by this author, is a one-sided perception that a new entrepreneur may have about an upcoming event for which he or she is seeing only the “negative” outcome.

When the entrepreneur balances out his or her incomplete perceptions and sees that that he or she will actually experience a balance of both challenging negatives and supportive positives (regardless of what the frightening event may be), the grip that fears have on inspired actions and dreams can dissolve.

Using The Demartini Value Determination™ Process (see sidebar), entrepreneurs can ask themselves a series of questions that assist them in becoming crystal clear about their most important values, objectives and areas of life. When they know what these priorities are, they are then able to ask how they can make money out of doing what they love, while serving others’ values and this leads them to an inspiring life. (Note to readers: a free Demartini Value Determination Process Workbook is available via www.DrDemartini.com), When entrepreneurs know what direction to take and they Continued on page 13

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EDITORIAL FEATURE

Do You OWN Your OWN Branding?

What you don't know might surprise you.

By Erich Fruchtnicht

L

et me start off by saying that I am not a lawyer nor do I play one on TV. Please consult real legal counsel when dealing with the complex issues surrounding intellectual property and its ownership. This article is meant to be a very general overview and to highlight a few issues of which most people are unaware.

Here is the scenario: you have opened your business and bought a logo, a website, business cards, and signs. You have paid for advertising campaigns that have used your existing artwork and required the development of new artwork to help "sell" your product or service. Do you own the artwork for which you have paid? If so, are there limitations on your ownership?

Intellectual property (IP) ownership can be very complicated which surprises most people due to the simplicity of the IP itself. "Surely," you say to yourself, "a small logo that I paid $50 for is mine to do with as I please. After all... I paid for it." Often, this is only partly true.

In the same way that one can buy a house but not own the blueprint, one can purchase a graphic but not own the original artwork. When a graphic is purchased as a jpeg, for instance, the purchaser receives the jpeg in exchange for payment to the artist.

The artist does not send the files he or she used in Photoshop or Illustrator to create the graphic unless that transfer is specifically mentioned in the artwork creation contract. Those

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"construction" or original artwork files remain the property of the artist.

An example of how this can be confusing is as follows: a business owner hires a graphics designer to create a brochure for his or her business. The designer provides the completed design file to the business owner as a PDF for printing and the business owner gets the brochures made at a local print shop. Unless there is specific mention of the original artwork being included in what is known as a "work for hire" agreement, the business owner can only claim ownership of the unaltered PDF as provided by the graphics designer and the paper brochures that were printed.

Work-for-hire agreements are not uncommon, but are they necessary for you? Graphics designers will often charge a higher rate when working under a work-for-hire agreement because they must relinquish ownership of all their original work to the purchaser. Once relinquished, the designer risks losing future earnings on their artwork since they are not the guaranteed service provider for any future revisions to the same art.

If the purchaser wants to change the text on a brochure that was created as "work-for-hire," they do not have to use the same designer and can take the file to someone else to edit or make the changes themselves if they have the right tools.

of their designs. However, for most small businesses such an agreement may not be necessary. Always consult a lawyer who has experience in IP before making decisions regarding work-for-hire agreements.

A good graphics designer (whom you have chosen carefully based on my previous recommendations, right?) will not want to reuse anything recognizable from your artwork because it would make them appear to be using templates for their art and thus reduce their credibility, but that is a risk you take in the absence of a work-for-hire.

The final thought I'll leave you with is this: if you have purchased artwork and there was no specific mention of with whom the final ownership of the original art would remain, it defaults to the artist. Hopefully, this was food for thought and prompted you to consider how your branding artwork is managed. Until next time!

If you have any questions about this or another topic feel free to contact me.

Erich H Fruchtnicht President / Principle Designer TGDesign, LLC www.trinitygroupdesign.com erichf@trinitygroupdesign.com

A work-for-hire agreement can be useful for someone whose product or service is proprietary as the business owner can be much more protective

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 11

EDITORIAL FEATURE

Customer Focused Management The Preferred Approach to Growth

BIG PICTURE OF BUSINESS

By Hank Moore / Corporate Strategist™ In today's highly competitive business environment, every dynamic of a successful organization must be toward ultimate customers. Customer Focused Management goes beyond service and quality. There is no business that cannot improve its customer orientation.

Every organization has customers, clients, stakeholders, financiers, volunteers, supporters or other categories of "affected constituencies."

Customer Focused Management is a concept that goes far beyond just smiling, answering queries and communicating with buyers.

It transcends customer service training.

In today's highly competitive business environment, every dynamic of a successful organization must be toward ultimate customers.

Companies must change their focus from products and processes toward the values that they share with customers. Customer Focused Management goes beyond just the dynamics of service and quality.

Everyone with whom you conduct business is a customer or referral source of someone else. The service that we get from some people, we pass along to others. Customer service is a continuum of human behaviors shared with those whom we meet.

Customers are the lifeblood of every business. Employees depend upon customers for their paychecks. Yet, you wouldn't know the correlation when poor customer service is rendered. Employees of companies behave as though customers are a bother, do not heed their concerns and do not take suggestions for improvement.

There is no business that cannot undergo some improvement in its customer orientation.

Every organization has customers, clients, stakeholders, financiers, volunteers, supporters or other categories of "affected constituency."

Key Components include: • • • • • • • • • • • • • • • • • • • • • • • • • • •

Clarifies customers Specifies results and performance expectations Factors customer satisfaction and company's customer orientation Links budget allocation to output delivery Requires performance reporting Promotes performance analysis and continuous quality improvement Encourages new ways of optimizing human capital Has capacity building Encourages system wide approach Incentives are essential Internal ownership and commitment are necessary Performance data management and reporting Building High-Performance Teams Change Management Coaching and Counseling Conflict Management Creativity Dealing with Difficult People Decision Making and Problem Solving Effective Customer Service Envisioning the Future Leadership in a New Era Managing Stress and Change Results-Based Performance Management Transition to Supervision Workplace Ethics Evaluation and Accountability

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 12

• •

Planning Evaluation Studies Evaluation Tools and Training

Customer Focused Management means: Establishing clear organizational vision, mission and priorities, which are translated into a fouryear framework of goals, outputs, indicators, strategies and resources.

Encouraging an organizational and management culture that promotes innovation, learning, accountability, and transparency.

Delegating authority, empowering managers and holding them accountable for results.

Focusing on achieving results, through strategic planning, regular monitoring of progress, evaluation of performance, and reporting on performance.

Creating supportive mechanisms, policies and procedures, building and improving on what is already in place.

Sharing information and knowledge, learning lessons, and feeding these back into improving decision-making and performance.

Optimizing human resources and building capacity among staff and national partners to manage for results.

Making the best use of financial resources in an efficient manner to achieve results.

Strengthening and diversifying partnerships at all levels towards achieving results.

Responding to external situations and needs within the organizational mandate. www.SBTMagazine.net

EDITORIAL FEATURE

Quotes on Courtesy, Customer Service, Corporate Manners,

Supreme Thomas

Abstracted from Hank Mooreís new book, ìPower Stars to Light the Flameî

"Do thou restrain the haughty spirit in thy breast, for better far is gentle courtesy." Homer

"The customer is always right."

H. Gordon Selfridge "The greater man, the greater courtesy."

Alfred Lord Tennyson (1809-1892) "There are two little words that can open any door with ease. One little word is thanks, and the other is please.

Good manners are never out of style."

Pinky Lee, 1950's children's TV star "We are born charming, fresh and spontaneous and must be civilized before we are fit to participate in society. It is far more impressive when others discover your good qualities without your help. Let us make a special effort to stop communicating with each other, so we can have some conversation."

Judith Martin, (Miss Manners) "We don't bother much about dress and manners in England, because as a nation we don't dress well and we've no manners."

George Bernard Shaw (1856-1950) "Good manners will open doors that the best education cannot."

Court

Justice

Clarence

"Don't forget to say please and thank you."

Captain Kangaroo, children's TV star "Don't flatter yourself that friendship authorizes you to say disagreeable things to your intimates. The nearer you come into relation with a person, the more necessary do tact and courtesy become. Except in cases of necessity, which are rare, leave your friend to learn unpleasant things from his enemies; they are ready enough to tell them Supreme Court Justice Oliver Wendell Holmes (1809-1894) "Gratitude is the most exquisite form of courtesy."

Jacques Maritain (1882-1973) "All legislation, all government, all society is founded upon the principle of mutual concession, politeness, comity, courtesy; upon these everything is based. Let him who elevates himself above humanity, above its weaknesses, its infirmities, its wants, its necessities, say, if he pleases, I will never compromise;

but let no one who is not above the frailties of our common nature disdain compromises."

Henry Clay (17771852) "Discourtesy does not spring merely from one bad quality, but from several-from foolish vanity, from ignorance of what is due to others, from indolence, from stupidity, from distraction of thought, from contempt of others, from jealousy."

Jean de la Bruyere (1645-1696) "Don't reserve your best behavior for special occasions. You can't have two sets of manners, two social codes - one for those you admire and want to impress, another for those whom you consider unimportant. You must be the same to all people."

Lillian Eichler Watson "Associate with well-mannered persons and your manners will improve. Run around with decent folk and your own decent instincts will be strengthened."

--Stanley Walker

Hank Moore/Corporate Strategist™ Phone: 713-668-0664 Website: http://www.hankmoore.com Email: hankmoore4218@sbcglobal.net

Continued from page 10 Proven Methods for Unleashing the Entrepreneur Within

don’t have fear holding them back, they begin taking focused action steps toward their purpose, goals and objectives and they begin to more fully live their dreams. Inspired action and perseverance add up to produce great achievements. Unleashing the hidden spirit of the entrepreneur within can produce amazing rewards!

Sidebar: Questions and Clarity Knowing and understanding one’s highest priorities opens the pathway for “doing what you love and loving what you do.” Serving others according to their highest values, combined with doing work that an individual is truly “jazzed about,” leads to greater financial rewards and a fulfilled, inspired life.

Asking and answering the following www.SBTMagazine.net

13 questions taken from the Demartini Value Determination Process equips individuals with the ability to clarify their values, objectives and life priorities and to overcome the fears that prevent them from greater accomplishments.

1. How do you fill your space?

2. How do you spend your time?

3. How do you spend your energy?

4. How do you spend your money?

5. Where are you most organized?

6. Where are you most reliable?

7. What dominates your thoughts?

8. What do you visualize most?

9. What do you most often talk to yourself about?

10. What do you most often talk to others about?

11. What inspires you?

12. What goals stand out in your life

and have stood the test of time?

13. What do you love to learn or read about most?

About Dr. John Demartini Dr. John Demartini, a native of Houston, is a world renowned human behavior specialist, success consultant, educator and internationally published author. He is the founder of the Demartini Institute, a private research and education organization headquartered in Houston with a curriculum of over 72 different courses covering multiple aspects of human development. For more information and to download a free Value Determination Process Workbook, please visit www.

DrDemartini.com.

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EDITORIAL FEATURE

The Ladder of Wealth

By Doug Winnie, ActionCOACH Business Coach

Doug Winnie

W

ere are you today and where are you going on the Ladder of Wealth?

This comes from my readings of, “Billionaire in Training,” by Bradley J. Sugars.

Get it and read it – it is very powerful and well worth the 20 or so dollars and the couple hours to read it. I’ve thrown in my own thoughts and give a generalization of the principles in this article.

The Ladder of Wealth begins when we start off as an employee. Most of us do start here, whether employed at a fast food restaurant, wait staff, or working for our parents. This is the stage when we are learning, hopefully learning lots so we can move to the next level of wealth, self-employed. The good news about this stage, “employee,” is that we are paid to learn. It is a great opportunity, providing you do indeed understand this is the stage to learn, while on your employer’s dime.

At the second level of wealth growth, you are working for yourself. At this point, you could be selling knives, Avon, Amway, or your own trade, say a painter or carpenter. Your income is entirely dependent on your ability to sell and deliver. This is a challenging stage as your own motivation and your own skillset must be up to the level necessary to fund your lifestyle - your household expenses, your vacations, your retirement; it is now entirely up to you.

You have complete control and can begin to earn a very nice living. At the next stage, “employer,” you learn that employees can be profit centers, and at this stage you have more responsibility and significantly more opportunity.

The Employer, Manager, Supervisor, Boss, as you may like to be called, takes on a few more roles. You get to hire and fire, motivate, compliment and provide constructive criticism, give rewards and deal with tardiness, absenteeism and the whole host of financial elements like payroll taxes. When you are working this level well, your team will begin to take on all the elements of the business, from lead generation to closing the sales, to delivering the service and goods, to invoicing and collection of payments, finance to HR and training. It all gets done (or not), depending on your ability to provide the education and motivation the team needs. Many strive to

reach this level and some who have reached it, hope never to return. This level requires a manager to become a leader. Working on the business more and more means you get to work less and less in the business. If you were a haircutter and decide you want to increase your wealth and open a salon with your own team, you learn to grow a business, grow a team, and the team is what keeps the new customers coming in, and the existing customers happy. The great benefit of this level is the business will run without you.

Depending on your ability to train your team, in order to eliminate your position, the more time you will have to spend with family and friends. This is usually the most challenging stage, because you have to grow out of your occupation, and grow into a new occupation.

You will need to change, and probably change significantly, in order to grow within and grow past this stage.

Next, you'll be reaching the “investor” level where you really realize every business can be a tool for growing wealth. Whether it is a shoe store, a donut shop, or a CPA firm, each of these businesses, at the Investor level, are tools for wealth creation and maximization.

What stops you from reaching this level, are the challenges at the prior level. What keeps you from going past this level, are only the skills which need to be acquired relating to working on a business and not in the business.

Finally, with all the positive cash flow from your business(es), you now have cash to be a true entrepreneur. Buying real estate at the right price and right time, investing in business ventures with the right teams and the right leaders, determining that the stock market is having a sale and you should buy low and sell high. Possibly creating a franchise. Maybe you now have time to write a book and then leverage book sales for a lifetime (or many lifetimes). A really interesting observation is that many people quickly jump to this level without actually achieving success at the prior levels. When you cannot handle a 10 percent drop in your investments overnight, due to circumstances that may not have anything to do with your reality, and the 10 percent drop affects your livelihood, this is likely not the place to focus your time and energy. This level in the stock brokerage world is reserved for those who are very seasoned in the Continued on page 46

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EDITORIAL FEATURE

Today’s New Customer Craves the Feminine Touch

By Craig Klein/SalesNexus

O

ne of the often overlooked benefits of CRM is communicating the desire for relationship with our customers. In the past, making a sale has been based on competition for the quick sale. That is clearly a masculine activity.

The single purpose of making the sale has lost its power in the past decade. Today’s customer wants something different.

CRM makes it possible to give them what they want.

Today’s Customers Don’t Easily Trust The internet has done more than place a massive amount of information at the fingertips of prospective customers. It has also revealed the hype and empty promises made by unscrupulous sellers. With tightened belts and healthy dose of skepticism, sales people have to work harder and longer to get a prospective customer to say, “yes” to a product or service.

The difference between the masculine (sell, sell, sell) approach to getting business and the feminine approach (let’s establish a relationship of trust) is huge. Manipulative closing techniques are rebuffed as quickly as a pick-up line at the local drinking establishment. Instead, gather data and use automation tools to entice prospects into a relationship.

Women, since the ice age, have learned to connect. While the men were out slaying the tiger, women raised the kids, kept things clean, gathered grains, picked berries and cooked together. These tasks were only possible because they performed

all this tedious work as a community that was in a deep relationship.

Creating a connection with prospects yields high returns.

Today’s Customers Feel Squeezed and Isolated The pressure to make the perfect decision every time because of budget constraints is real. Every time a purchase decision is made, it becomes an action to be analyzed by everyone involved.

The CEO has to answer to the shareholders, department heads answer to the CEO and the entire organization has an opinion about whether it was the right purchase.

Creating time and space to nourish the relationship with prospective clients is a powerful way to promote a transaction. With CRM, sales reps are able to bring in the human element and validate the importance of the decision maker. They can gather important data about the company and all the players involved. They can ask questions that demonstrate that they care for more than just an immediate sale. They can remember the details of previous sales and the customer’s preferences. It all results in a deeper understanding of customers on an individual and collective basis.

When the sales team is focused on a specific type of buying prospect, sales increase.

Since statistics show that less than 20 percent of sales leads turn into actual sales, a CRM allows you to capture those other prospects and lead them through a buyer path for future sales.

In some companies, the close ratio is less than 10 percent. It is particularly important that these companies use a technique for developing a relationship with customers and future customers. Letting more than 90 percent of costly leads become wasted is insane.

Even people who bristle at the idea of making their sales process more feminine know that these differences are very important. With shrinking close ratios and exploding costs of each sale, it is imperative that you consider the benefit of an online CRM system. Buyers want relationships.

This technology can be what you need to give them what they want.

Craig is the founder of SalesNexus.com.

For more information visit www.SalesNexus.com

Prioritize for Efficient Sales You want the sales reps to be pursuing the most viable prospects. Sorting and qualifying your leads are the most efficient way to keep sales people making money. CRM programs can identify the prospects with a profile shown as the most likely to purchase.

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EDITORIAL FEATURE

Sinews of Successful Relationships

By Mike Muhney Mike Muhney

I

t has been said that we don’t know the worth of water until the well is dry. Anyone who’s been truly thirsty would agree, but few of us fear losing our access to water. Contemplate instead, something that likely hits closer to home for most professionals, the fear of losing customers - your customers.

Imagine doing without them for a mere 90 days. The danger is that we tend not to consider this possibility until it is too late. This “silent killer” of your business often sneaks in without your realizing it. How? Your customers can simply stop spending their money on your goods or services. Worst of all, they can start to disappear before you realize their absence. While I’m not suggesting that anyone intentionally creates this condition, it is possible to inadvertently lose a customer through complacency.

The resiliency of strong relationships cannot be taken for granted, particularly true with customer relationships, which are often vulnerable and almost always the target of competitors. And yet, if we’re being honest, we are too presumptuous, not to mention complacent, about the sustainability of relationships with customers and clients. Before you shake your head in denial, consider your own actions from the perspective of your network from which you derive your livelihood.

You can’t go to a health club, watch people exercise and by observing others reap the benefits of exercising yourself. Similarly you can’t merely communicate with your customers through social media alone and hope to build genuine personal connections. Although we can reach more people today than ever before through the likes of social media, it cannot come at the cost and risk of thinking that personal relationships can now be diminished or trivialized.

Social media platforms, while helping us reach the masses, have created an environment of relational voyeurism. They give us the false impression of intimacy where there is none at all and they can often create a trap for the professionals who rely solely on them as a means of connecting. If you only observe your customers through the likes of Facebook, LinkedIn, or Twitter, you’re limiting yourself to the

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same information that is available to everyone. Your competition has access to that same information. If that is your only source of information, you will fail to distinguish yourself from your competition in the minds of your clientele.

Meaningful business comes from meaningful relationships. Always has. Always will. What makes a relationship meaningful? There are four components of relationship strength, the sinews or connective tissue that binds together: time, trust, intensity, and reciprocity. But how can you strengthen the sinews of your business relationships in order to achieve sustainability-and ultimately success? How can you distinguish yourself in the market?

Each customer with whom you do business is in some manner crucial to the success of your business. You need a way to record, store, and recall at a moments notice their personal information, but not necessarily for the reasons you may think. In relationships, the sinew is not in gathering customer data for the sake of gathering more data. It is what you are able to do with that data that strengthens relationships.

Referencing relevant information you have garnered through personal interactions conveys interest, attention, and care to your customer. This type of gexercise h helps keep the relationship in order, making it strong and healthy. You free then able to develop genuine bonds with your customer based on trust by remembering and acting on information they have extended to you, and you alone.

You will be more successful in your relationships if you think of them in terms of health rather than in the clinical terms of gCustomer Relationship Managementh or even Contact Management. By concentrating on relationship health, you will be better equipped to avoid the trap of thinking that you can actually gmanageh your relationships. Instead, focus on enhancing the health of each relationship.

By doing so, you will gain a truly competitive edge.

After all, there is no traffic jam on that extra mile.

Mike Muhney is the co-inventor of ACT!, is now the CEO & co-founder of VIPorbit Software, creators of VIPorbit relationship management apps for iPhone & iPad. viporbit.com SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 17

Mobile Relationship Manager

The best way to manage CONTACTS, CALENDAR & COMMUNICATIONS All in one app.

All on your iPhone & iPad.

FROM THE CO-INVENTOR OF ACT!, MIKE MUHNEY

VIPorbit is the best way to manage contacts, calendar, and communications on your iPhone and iPad. In the app, contacts, calendar and communications are seamlessly integrated, providing instant access to complete relationship details, quick scheduling, and effortless communication, including via social networks. With VIPorbit, you’ll manage contact details with precision, take control of your calendar, and streamline your channels of communication.

From the co-inventor of ACT!, it provides mobile professionals with an affordable, easyto-use, anytime/anywhere solution. VIPorbit for iPad is $14.99 and VIPorbit for iPhone is $9.99. There are free versions for both devices, limited to 100 contacts. Available at VIPorbit.com or on the iTunes App Store.

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EDITORIAL FEATURE

Who Says

By N D Brown

“T

here is an interesting marketing strategy many businesses over look.

Every business does something unique.

Something competitors aren't doing or can’t do; something allowing that business your business - to be demonstrably different than all competitors.

It should be a critical difference that can be explained in ten seconds or less. That is about all the time a prospective customer will give you to catch their attention.

Recently I have become a semidilettante of the odd world of determining the value of art. I am fascinated by the enormity of a business that includes the theft of highly valued art and its easy underground resale and the forging of famous name art. Billions of dollars change hands on word of mouth marketing and dubious “expert” opinions.

Some estimate around 20 percent of museum art is fake!

These thriving businesses operating in a shady world are built on values set by self-proclaimed experts. Who says they know what they are talking about?

Actually we all do.

We all say we think they know what they are talking about. Or at least we all want to believe they know what real value is. We want to believe they have done the exhaustive research; we want their opinions to be fact. So when a recognized art “expert” says a painting is worth a hundred million someone believes and is ready to

write a check.

There is no Bureau of Art Evaluation, the art expert works on the strength of word of mouth communication.

Word of mouth is the most credible marketing medium any business has. In business, as in art, expert opinions help determine value. And the strength of those opinions, when distributed by word of mouth communication, is incalculable. Word of mouth can appear to be a free medium but should be managed.

“The word of mouth powerhouse starts with what we as consumers want to believe.”

While information heard from a friend, a colleague, a total stranger can be the best tool for small businesses, it won't happen without a strategy to take full advantage of its power.

Expecting it to happen without a push is like expecting to hit the lottery without buying a ticket, or finding a five dollar Jackson Pollock in a yard sale.

The word of mouth powerhouse starts with what we as consumers want to believe.

When we hear a friend or an associate verbally endorse a product or a company we immediately add a

huge dollop of credibility to anything the company says about itself or its products. It is rare for any of us to discount a friend or colleague who says, "I worked with those guys and..." or "We've used that stuff and..."

Positive statements like that are bankable. Too many small businesses miss the chance to use their customers as sales people. Those “real voices” can kick start a word of mouth campaign.

Every business needs quantifiable proof of its claims.

Amazingly those proofs can be subsumed by the voice of someone the consumer allows to take on the role of an expert.

Large chunks of marketing budgets are spent crafting sales messages, or explanations about why customers will be better off with XYZ and their products than the other guys.

That is an important step but there should be more.

A public corporation can spend months preparing its annual report.

A team will develop readable graphs and hopefully lucid explanations of what has happened over the past year and why.

It is necessary and valuable work but, if on the inside front cover Warren Buffett is quoted, “This is a great company and I've invested in it," all the graphs and charts and explanations have been subsumed.

If you have been reading these columns you might remember I've worked with many retail clients over Continued on page 40

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EDITORIAL FEATURE

Your Next Step Scoring From the Red Zone: How to ‘Open More Sales

By Jack Warkenthien

I

n the Fall of 1994, a new rule was introduced into the NFL that altered a strategy of the game: the two-point conversion, or PAT. Now, teams decide whether to take the “guaranteed” one point after a touchdown, or risk it for a “potential” two-point conversion. Or to paraphrase a familiar axiom, take “the one on the foot” versus “the two on the ground.” Another by-product of the rule change: there is now a heightened awareness of “Scoring from the Red Zone.”

Now for a definition: The Red Zone is the area on the field between the twenty-yard line and the goal line, when the offense has possession of the ball. What happens in the Red Zone separates the winners from the losers at the end of the contest.

What does this have to do with “opening” more sales, you may wonder? In sales terms, your Red Zone strategy determines whether you get the sale or not.

Every company needs one. In other words, do you have a plan that consistently allows you to score in short yardage situations?

Many sales reps move their product and company successfully to the 20-yard line, by creating a proposal, or responding to an RFP, or just qualifying their candidates.

Your Red Zone strategy should focus on opening sales when you are really close to “scoring.” If your sales team is consistently moving the ball down the field and yet not scoring, you won’t generate much revenue or win any football games!

I am a big fan of the late, great Steven Covey and his best-selling book, “7 Habits of Highly Effective People.”

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My favorite habit: “Begin with the end in mind.” On a routine basis, picture yourself as just having opened a new relationship and work backwards.

Assume the sale! Your strategy should prepare you to gain a new client on the very first sales call. Of course, it may rarely happen, but plan for it anyway. Consider this 5-part approach to prepare for the sales call: 1. Envision the Outcome Before you dial the phone or knock on the door, visualize the entire sales call, from start to finish. You’ll be amazed at how much more prepared you’ll be. You’ll eliminate many of the “I’ll have to get back to you” excuses and delays.

2. Have Your Presentation Available Even if it’s your third visit to the candidate’s office, you never know when a new decision-maker or influencer will be present. Assume you may have to start from scratch.

Bring all the materials used earlier in the sales process.

3. Justify Your Logic All sales are made, based on emotion, and justified based on logic. Be prepared to justify your recommendation.

Depending on the personalities of your audience, you may want to bring supporting financial justification or other tangible back-up “evidence.”

4. Have “Opening” Documents Available Even if it’s your first visit, you never know where your next one-call sale is lurking. There’s no down side to being over-prepared. Do you remember the time someone was ready to buy your solution and you had to say, “I’ll bring the agreement to you tomorrow, since I don’t have a copy with me.” I do. Once.

5. Know Your Agreement Before you ask a customer to sign on the dotted line, make sure you understand what your agreement says. If the pen is your “friend,” the sales agreement is your “best friend.”

You wouldn’t introduce someone as your best friend without knowing them, would you?

The essence of Scoring from the Red Zone involves overcoming all obstacles the defense poses within yards of the end zone! The essence of opening new accounts involves overcoming all objections the candidate poses just prior to signing the order!

Handling objections and staying in control presents the greatest challenge in professional selling. If you were not forced to deal with objections, you would merely be an “order taker.”

How to Sell More Finally, the two other elements of your Red Zone strategy must be the following: •

Create an overwhelming “sense of urgency” to make a decision now

“Stand-out” from your competitors, by focusing on your Unique Value Proposition (U.V.P.) To open more accounts, you must risk failure by asking early and often.

With a well coached, fully prepared team and a game plan that considers all objections and alternatives, you will compress the sales process and make more sales quicker. I wish you all the best of luck on every play!.

Jack Warkenthien, CEO, NextStep Solutions.

Email him at: jwarkenthien@nextstep-solutions.com or call him at 832-344-6998 www.nextstep-solutions.com

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EDITORIAL FEATURE

How to Deliver a Great Speech

By Pam Terry

T

here’s good and then there’s great.

What makes the difference when it comes to public speaking?

First, consider what makes a bad speech: no preparation, winging it, rambling, no real point or too many points, disconnected from the audience, lack of confidence, being overconfident, being boring, no volume, monotone, reading slides, lack of passion or drive about the topic, slouching and no knowledge of what the audience wants.

So, if all of these things are what make a bad speech, you would think that you need to have the opposite for at least a good speech. True. A good speech is one that has been prepared, practiced, the point(s) are clear, the audience is engaged, the speaker is confident and excited/ passionate about the topic, you can hear them/they have volume, are understood, their tone is anything but monotone, and the speaker knows what the audience wants.

Now that we have clarified the characteristics of bad and good – how do you make it great? Nick Morgan, a contributor to Forbes.com and someone who is passionate about communications, especially public speaking, told of an experience where he had to write a speech for the then Governor of Virginia, Chuck Robb.

The speech had to show that the Governor was in control of a situation when four death-row inmates had escaped from prison. It took Nick 12 drafts of the speech before his supervisor was even close to happy with it. From this experience, Nick came up with “5 Secrets of Success”

for great speeches: 1. Great speeches are primarily emotional, not logical 2. Small shifts in tone make an enormous difference to the audience, so sweat the details 3. A great speech has a clear voice speaking throughout.

4. A great speech conveys one idea only, though it can have lots of supporting points 5. A great speech answers a great need I felt that Nick’s five secrets were reasonable, but I needed proof. I went searching for great speeches to see if they had these five characteristics and if they had any other common threads.

I found five great speeches (my personal favorites) and yes, they all carry these five “secrets”: 1. Steve Jobs’ commencement speech to the 2005 Stanford University graduating class.

From his eye opening introduction where he states, “I never graduated from college” to his statement of what he’s going to talk about “Today I want to tell you three stories from my life. That’s it. No big deal. Just three stories. The first story is about connecting the dots….,” Jobs has captivated his audience. His point is clear “Stay hungry, stay foolish,” and each story illustrates this point. He is not overly passionate or excited. He is after all, Steve Jobs, and he has come to deliver an important message by authentically and powerfully sharing about his

life. He is inspiring these graduates to “stay foolish” and tells them why.

It seems like an unlikely message for a graduating class, but causes them to think and is very persuasive.

To watch Steve Jobs’ speech, go here http://m.bizcommunity.com/ Article/196/98/65331.html.

2. Martin Luther King’s “I Have a Dream” speech delivered in 1963 at the Lincoln Memorial, Washington D.C., was a long speech.

Yet, it was incredibly powerful. As you listen, you get goose bumps and get swept up in the emotion.

It’s full of poignant visuals, inspiring and uplifting you as you listen.

King speaks loudly, emotionally, emphatically, passionately.

His speech is delivered in total contrast to Jobs, yet both captivate. To listen to Martin Luther King’s speech and get the full transcript, go here http://www. americanrhetoric.com/speeches/ mlkihaveadream.htm.

3. John F. Kennedy’s Inaugural Speech in 1961where he ended with “My fellow Americans, ask not what your country can do for you, ask what you can do for your country.”

His pace is deliberate, emphatic, and passionate, as well; Kennedy style. I love his next statement, “My fellow citizens of the world, ask not what America will do for you, but what together we can do for the freedom of man.” To listen to JFK’s speech and get the full transcript, go here http://www.americanrhetoric.com/ speeches/jfkinaugural.htm .

4. Abraham Lincoln’s Gettysburg Address of 1863, although only about three minutes long, has Continued on page 49

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EDITORIAL FEATURE

Three DRASTIC Steps to Get More Clients - Experience, Entice and Engage

By Toni R. Harris, Speaker, Trainer, Coach & Author

R

ecently, I became an Authorized Local Expert for Constant Contact. Upon delivering my first seminar to a group of small business owners, it became apparent to me that businesses are still not taking advantage of email and social media marketing as a resource to generate repeat and new business. I repeatedly received the question, “What is Facebook and how can I use it for business? I thought it was just a place where you share your thoughts or what you are doing today. How do I use it for business?” Gail Goodman, CEO of Constant Contact writes in the book, “Engagement Marketing – How Small Business Wins in a Socially Connected World,” there are three simple steps to social media marketing success: Experience, Entice and Engage. In this article we discuss the basis of each of these steps and how you could use them to grow your business…exponentially.

Experience As small business owners, we have an opportunity to create a customer experience where people will exclaim, “Wow! She exceeded my expectations!” The question is how often do your customers actually make that statement about you, your product, service or your business? The bigger question is how often do they share that experience with their network? I venture to say probably not often enough – on both accounts.

First, it is important that you create an extraordinary experience that your customers can brag about.

Excellent customer service in America is dying on the vine. Ask yourself, “How often do I create an experience that my customers can brag about?” After completing the seminar mentioned at the outset of the article, the person who invited me to present was so impressed that she could not stop talking about how well received the seminar was to her group. As a result, she told her counterpart in New York that I needed to speak at her training and as a result, I have another speaking engagement in New York City on the books! Do your clients compliment your business? Do they brag to you how happy they are with your work? Do you deliver exceptional service? If so, you must ask your clients to share their experience on social media. Most clients will be happy to if you simply ask.

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Entice This brings me to the second point, ask your customers to share their experiences with their network. You can prompt them by thanking them for supporting your business on your social media page. For instance, if a regular customer places a reorder for a product, you can thank them in social media (of course, you want to ask their permission first). They in turn can respond about your product and service to your post. Your followers see it and so do theirs! Now your company is starting to get some traction.

By having a two-way dialog with the customer on your product, it entices others to think that they may have a need for your product too. This opens the way to attract new customers to your business. They want to know more about you and what you have to offer that can solve their problem.

Engage Last, as a business owner you want to engage your clients and prospects and keep them engaged. One way to keep them engaged is to consistently reach out to them through email marketing. Email marketing is the catalyst that gets them more involved with your social media and stay connected to you. Advertise a special, write a blog, ask opinion questions or ask for feedback about a current event that has something to do with your business. The key is to consistently engage without being obnoxious or blatantly pitching your prospects. Keep your engagements informative and interesting and your following will stay engaged.

Once you engage someone, it is easy to get them to let you into their network. All you have to do is ask. Once you are in, your exposure grows exponentially to their friends, and their friends, and their friends and so on and so on. Happy connecting!.

Toni Harris, also known as the Turnaround Queen®, is an Authorized Local Expert with Constant Contact, Radio Show Host, Business Coach® and Author.

Listen to Toni’s radio show every Friday from 9-10 CST at www.drasticstepswithtoniharris.com or email her at toni@toniharrisspeaks.com.

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EDITORIAL FEATURE

Survive Then Thrive in 2013 – 10 Things All Business Owners Must Do in the New Year

By Aaron Young Aaron Young

G

etting your business to thrive in the New Year shouldn’t be a resolution; it should be an action plan. We have put together 10 things all business owners should have in place to make sure they are ready to prosper in 2013 no matter what the economy is doing.

Congratulations on taking a proactive approach to creating a thriving business! Initiative is one of the key traits of any successful entrepreneur, and by reading this guide you're showing you've got the wherewithal to reach your goals and make your way towards a secure and profitable future.

out your high-risk assets helps make you unattractive to lawsuits.

Get Your Records In Order: joys of business ownership can be quickly squashed when the burden of staying in compliance is realized. Corporate records, state tax, sales tax, business licenses, county licenses, unemployment insurance…and on and on.

It doesn’t matter if you are a one person operation or have thousands of employees you are held to the same legal standard. The consequences of non-compliance can cost you everything.

Forecasting For Growth: Do you have the capital, staffing, systems or inventory necessary to make a big move? Being ready for growth doesn’t mean you expense out large amounts of money waiting for the next big deal but it does mean you are prepared when the deal comes knocking at your door.

“By reading this guide you're showing you've got the wherewithal to reach your goals.”

Laying A Solid Foundation: The foundation of your business is based on the what, who and why of your business.

What are your offering, who are you offering it to and why would anybody buy it? If you can’t answer these questions with confidence then you might need to rethink your business model.

Plan Your Business: Having a clear and concise plan can make all the difference in your business growth. Start with defining your goals and then determine how you will execute the steps to reach those goals. This strategic thinking will save you a tremendous amount of time and money.

Protect Your Assets: Running a business is risky and being involved in litigation can kill your business. The key is to reduce your risk.

Operating your business in a corporation or LLC offers some protection from creditors and litigation. Setting up a strategy to separate

Get Your Funding In Order: In today’s economy obtaining funding is not an easy task. If you are just starting out or poised for growth it’s imperative that you establish a line of credit or start working toward acquiring funding alternatives now before you miss out on opportunities that will grow your business.

Spread The Word: You are your best marketer, but unless you have a way to spread the news your market will be very limited. You need to write down your marketing outreach on a calendar so you have a plan. In order to successfully grow your business, you’ll need to attract and then work to retain a large base of customers.

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Jeannie is seen here with some of the chamber's committee leadership and staff.

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EDITORIAL FEATURE

Relationship Capital is Important for Small Businesses, Too Three key steps to growing your influence

By David Holt

L

arge companies spend millions of dollars every year coordinating effective stakeholder management campaigns and banking relationship capital. Cultivating the extensive network of stakeholders needed to help mitigate external risks, protect core markets, and develop new opportunities is a required practice for large organizations operating in many states or countries.

But quality stakeholder management is not just important for the Fortune 500’s of the world. It’s also a tremendously effective tool for the rest of us, particularly startups and established small businesses. While smaller operations may not need to mitigate the risk associated with regulatory actions or specific pieces of legislation, (although they increasingly are) the creation of relationship capital can pay dividends when it comes time to raise startup or growth money, find partners, rebuild an office space, or grow sales. Relationship capital may not be a line item on a balance sheet, but the lack of it can be a big liability when/if the need arises.

For smaller operations, the creation of relationship capital is about building long-term trusting relationships with key influencers in the community that could affect the future of your business. This goes beyond traditional lobbying. Small businesses need to build trust and mutual understanding with city and county officials, members of the press, bloggers, other business owners, and community leaders. These relationships will help businesses communicate the value of their product or service, their place in the community and their stake in local issues.

Take for instance a business owner

that wants to obtain a zoning variance to expand their retail operation.

Viewed narrowly, relationship capital and the mutual understanding of the business it creates will help sway city officials to approve the variance when the time comes. It will also ensure local residents, bloggers, and fellow business owners will support the variance at public comment forums and in the press.

Building relationship capital is a twoway street. In addition to creating an understanding of one’s business, leaders should seek to cultivate a two-way conversation between all parties involved in a particular issue or action. This is an important business function, and while consultancies may help create this core competency, there are several easy ways for the small business owner to implement an effective campaign to grow relationship capital.

Dedicate your time Many businesses might feel this kind of outreach is too obvious to dedicate focused attention to. This school of thought creates roadblocks to formalizing and implementing an outreach strategy. Take some time to think about this core function, commit your time and effort, and incorporate it into your daily or monthly goals.

Determine your priorities Once you commit to a focused campaign, create a list of priorities and issues you would like to build relationship capital around. It may be an internal initiative like the expansion of the operation, the search for investors or the desire to grow sales.

It may be to inoculate your business from perceived negatives like layoffs or relocation or to defend against a competitor. Then lay out a specific

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 32

goal related to each priority. Creating these priorities and outcomes will keep the campaign focused and help identify targeted and relevant potential stakeholders.

Execute the strategy Determine key messages for the individual priorities and targeted stakeholders that were identified.

Individual stakeholders may require the tailoring of a message, but always use the priority issue as a starting point. Depending on the situation, the key priority, the targeted stakeholder, etc., the best approach to deliver the messages may be different. For the business owner seeking the zoning variance mentioned above, a good way to initiate the campaign would be to host a community meeting with identified stakeholders to discuss plans and communicate the value the variance would bring to the community. Other times a press release, a face-to-face meeting, an official briefing, or dinner may be the best route.

Even the smallest companies can benefit from implementing a stakeholder management plan and building relationship capital. With a specific focus on drafting and implementing a plan, small businesses can reap the same benefits that major multinationals do for relatively low costs. More than dollars and cents, it takes a dedicated and focused effort to build relationships with key influencers to grow your business, manage risk, and reach your goals.

David Holt is President of Consumer Energy Alliance, and HBW Resources, a public affairs consultancy based in Houston.

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 33

EDITORIAL FEATURE

The Power of Enthusiasm in Customer Service

By Errol D. Allen

A

key ingredient to success in the customer service industry is enthusiasm.

This component is crucial to both gaining and retaining customers. Whether you're on the phone, face to face, emailing or web chatting, your level of enthusiasm is apparent to your customer. Have you ever noticed how most customers will mimic your actions? If you walk fast (not too fast!), they will walk fast. If you smile when speaking, they will smile when speaking. If you add enthusiastic punctuation when emailing or chatting, your customer does the same. Enthusiasm is contagious! Here are a few tips on enthusiasm.

1. Enthusiastically Acknowledge Your Customer Your acknowledgement of your customer is the initial opportunity to put your enthusiasm on display.

When you're face to face with your customer, can they see the light in your eyes? Are you proactive in moving toward your customer or do you wish they would go in another direction? Your enthusiasm for what you do should make it easy for you to reach out to your customer. Can your customer hear the enthusiasm in your voice over the phone? Your voice tone and inflections tell your customer if you're really interested in providing assistance. Did you know your enthusiasm level is evident when web chatting with or communicating via email with your customer? These two methods of communication can be somewhat cold and indifferent when improperly done. Recently I experienced a computer virus and contacted a repair company's chat line via my smart phone. I started the conversation with, "My laptop has a

virus. I need assistance please." The person responded by chatting "Sorry to hear that! We're here to help! May I offer our on-site service to you? We can have someone at your location within 45 minutes!" This person's punctuations and word choice led me to believe that he really wanted to help. When web chatting, utilize word choice and punctuations that match how you would exhibit enthusiasm if you were face to face with the customer.

Service!" Award to a young man for his enthusiasm in attempting to locate a particular shirt during a visit to a local retail store. He searched high and low in the store for that shirt - with a smile on his face and pep in his step. When it became apparent that the shirt was not available in my neck size, he advised me that he could order the shirt and have it in the store within three to five days.

How could I turn him down? I was infected with enthusiaminitis!

2.

Enthusiastically Provide Assistance I visited a big box home improvement store in search of a home alarm system battery. Right away upon entering not one, but two employees offered assistance. When advised of my reason for visiting, both offered to assist! One associate practically tore me away from the other stating, "I'm pretty sure we have that item.

Let's go and find it!" Now I don't know if these employees received sales commissions - I was just happy that I didn't have to walk all over the store in search of that battery! It's important for your customer to see, feel and hear your enthusiasm. Make sure that the customer doesn't feel that they are interrupting you when seeking assistance. Eye contact, facial expressions, voice tone, body language and word choice are all important during the service interaction. Ask questions to make sure you understand the needs of your customer. Your customer feels valued when you ask probing questions in order to provide the best solution to their needs. When done in an enthusiastic manner, you contribute to the building of a long-term relationship. I recently presented my "Now That's Customer

3. Enthusiastically Show Your Appreciation Most customers want to feel appreciated after choosing to utilize your products or services. Can they see, hear and feel your enthusiasm after the service interaction/product purchase? First of all, provide an enthusiastic closing to the purchase or service transaction. A heartfelt smile or handshake administered with a touch of enthusiasm can go a long way in making your customer feel important. When ending your phone conversation with your customer, enthusiastically thank them for calling and remind them of how much they mean to your company. Do the same when ending your web chat or email session with your customer. Enthusiastic service coupled with an enthusiastic "Thank You" can endear a customer to your business. Most customers can tell the difference between a scripted (required) and a genuine "Thank You." Make sure that your "Thank You" is enthusiastically genuine!

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 34

Enthusiasm is a powerful emotion.

Incorporate enthusiasm into your service delivery experience to increase your chances of creating repeat business. Your customers Continued on page 36

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 35

EDITORIAL FEATURE

Your Banner Ad is So Passé Aimee Woodall

A

s a small business owner, you’ve been thinking about how to spend the money you’ve set aside for marketing in 2013. But there’s one big question: How do you spend it? Do you hire a public relations agency? Or invest in advertising?

I applaud those of you who accurately selected the former. But those of you who picked the latter, we need to talk. Sure, advertising is a sure thing.

But a sure thing isn’t always the best thing. So let’s talk.

Small Business Owner: OK well, I heard US companies spend $150 billion annually on advertising and only $5 billion on public relations.

That has to mean advertising is where it’s at, right?

Aimee: In some instances, advertising is a good idea. However, $150 billion spent on advertising and only $5 billion on public relations is a surprising gap. That’s a lot of cash going toward quarter page ad spaces instead of something more valuable – third party credibility. With public relations, you’re not just broadcasting your products or services. You have professionals strategically influencing decisions via storytelling and community engagement. Public relations professionals dig deep into both your audience and your brand to find ways you can benefit each other organically.

Small Business Owner: You’ve got me there. But here’s another question. PR can’t be measured or tracked, right?

Aimee: This is just plain false. It’s just as possible to track the bottom line in PR as it is in advertising. Getting media coverage is just the one step

out of many in the public relations process. PR doesn’t have to stand for press release. PR has shifted to telling stories by integrating media relations, social media, events, and community engagement (and a dash of pixie dust). You can track how many times an article was shared on social platforms, which drive more human communication than that banner ad ever will. PR pros can identify and reach out to the biggest influencers to get them talking about your brand, and take those relationships offline to an event setting that will drive even more community engagement.

It’s the relationship that keeps on growing.

With good public relations and its story-telling nature, you’re building stronger relationships and leaving more memorable impressions on your audience than an advertisement ever will. And that… That is something you can’t put a price on.

Aimee Woodall is the owner of Black Sheep Agency. You can contact her at 832.971.7725 or email her aimee@ theblacksheepagency.com Theblacksheepagency.com

Small Business Owner: A friend said all public relations professionals do is spam journalists. How do you respond to that one?

Continued from page 34 The Power of Enthusiasm in Customer Service

Aimee: Dear lazy PR professionals, look at what you’ve done. A good PR professional and/or functional human knows better than to mass email journalists. We read the news. We pay attention to what journalists are writing, and we make sure our stories fit each writer’s specific interests and needs. We are ALWAYS strategically thinking about our clients’ brands and ways they will interest and benefit the public – even when we want to hit the “off” button on “work mode.” We are 24/7 advocates for our clients, and will never send out a mass email.

Remember the third-party credibility I mentioned earlier? This is how PR pros build trustworthy relationships with journalists. And really, all PR pros shouldn't be judged by the lazy behaviors of some. Are all graphic designers talentless because of those tasteless ads out there? No!

have emotions.

Remember your goal in customer service is to provide a great experience for your customers. Do so by Enthusiastically Acknowledging Your Customer, Enthusiastically Providing Assistance and Enthusiastically Showing Your Appreciation. A great experience produces positive emotions. Make sure that experience is filled with enthusiasm. It's contagious!

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 36

©Errol Allen Consulting 2012.

Errol Allen – Customer Service Engineer – Errol Allen Consulting errol@errolallenconsulting.com 1-800-830-4167 www.errolallenconsulting.com

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 37

EDITORIAL FEATURE

You’ve Landed the Client…

Now What?

By Bertrand McHenry/President & Owner of the Referral Institute of Houston Bertrand McHenry

Y

ou network because your business thrives on your making contacts and getting new business. Do you have a systematic game plan now that they are clients? Networking doesn’t necessarily end after you’ve courted, woo’ed and landed those prized clients! How often do you stay in touch? Do you continue to develop the relationship? Here are 8 tips for keeping those prized clients and turning them into raving fans: 1. Think multiple contacts.

Regardless of the level of your relationship with your clients, regular contact is generally good, but remember everyone is busy! Two short meetings or phone calls are more beneficial than one long session. Each meeting becomes an opportunity to strengthen the relationship and to enhance your visibility and recognition.

2. Systematic scheduling. Stay in touch with your clients regularly and consistently. Train them to expect to hear from you at certain times. For example, if you usually contact certain customers during the first week of every quarter, they will come to expect it and will budget time for you. If they don’t hear from you, they may actually call to see how you are doing on their own, and that’s great!

3. Make each contact lead to the next.

Before concluding a meeting or telephone conversation, schedule the date of your next contact. In written correspondence, close by stating the date your customer should expect to hear from you again: “I’ll send you a note or email by the end of the quarter.” Having made the commitment, you’re more likely to follow through. This practice establishes a chain of contacts, with each meeting leading to the next, and earns you the right to stay in regular contact.

4. Everything Counts and You are in Total control! You can’t control whether clients will contact you, but you can control when you contact them. Take the initiative; stay in touch with your customers. This is especially important for your most important clients.

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 38

When clients or customers do not feel cared for – they are more likely to try someone else.

By staying in touch with them, you are much more likely to head off potential problems down the road.

5. Invite them to networking events. This accomplishes 3 things 1.) You take the relationship to a deeper level when you invite them into your networks and introduce them.

2.) You get to interact with them on a more personal level. 3.) This is a great way to meet with them periodically while getting you out of your cave to network and to meet other people.

6. Keep your ears open. Always listen for clues as to their personal interests, projects, and/or hobbies. This gives you the opportunity to periodically send them an article of interest, or a link to a website that may interest them.

7. Do you have a Board of Directors? If not I suggest you seriously consider forming one. When you do, consider inviting a few of these prized clients to serve as members on it.

The invitation itself is an honor and by serving on your board they will learn a lot about your business and will really invest themselves in the experience. This tip is particularly effective in building loyalty.

8. Stick to your plan. Success in anything requires you take regular and systematic action on your plan. You will achieve success in establishing routines with your sources, some of them may begin taking initiative with contact. Don’t let this interfere with your contact schedule — that is, don’t count it when they initiate the call as one of the contacts you’ve scheduled. Make sure you remain the “active ingredient” in the relationship.

Follow these tips systematically and you may just find you have done more than land a few great clients….you’ve created raving fans!

Bertrand McHenry President Owner The Referral Institute of Houston Bertrand@referralinstitutehouston.com 281-401-9852 www.SBTMagazine.net

EDITORIAL FEATURE

Qualifying For a Real Estate Mortgage Through the SBA Loan Programs

By Bruce Hurta

M

ost small business owners focus upon conserving cash for working capital and for the growth of their businesses. Governmentbacked financing, with SBA loans, is a popular form of small business real estate financing to achieve this goal. Small businesses can qualify for financing with longer repayment terms, lower down payment requirements, and more lenient underwriting guidelines with the SBA 7(a) and SBA 504 loan programs. Qualifying for a small business real estate loan is different than qualifying for an investment real estate loan. With investment real estate, the lender focuses upon the quality of tenants in the project along with the quality of the location. With small business real estate financing, the lender focuses upon the health and viability of the small business which will own and occupy the real estate. A small business lender uses five components in his analysis of a small business loan request.

loan payment requirements to compute debt coverage ratios. Small business lenders generally like to see debt coverage ratios of 1.2x or better. A debt coverage ratio of 1.2x indicates the business has available cash flow, which is 120 percent of its operating expenses and loan payments. That 20 percent cushion gives the lender comfort that the small business has adequately planned for unanticipated business expenditures.

Equity While a small business lender becomes a partner in the business by extending credit, they are not an owner. A business owner (or equity partner) invests in the business, assumes risk, and he or she is rewarded for that investment risk with dividends and other forms of compensation. A small business lender, however, receives only a stated rate of interest on the money they have invested, and

Business Management Experience The foremost reason for business failure, and therefore a loan default, is the lack of sufficient management experience in the industry in which the small business owner participates. A lender will gather information about the business owners to evaluate the education and business track record of the owners to ascertain their likelihood of continued success in the subject business.

The more education and successful industry experience the business owner has, the less risk is perceived in lending money to that business.

Business Cash Flow The business’ income is recognized as the primary source of repayment for a small business real estate loan.

The historical track record of the business’ income is the best indicator of its profitability and success in the future.

A small business lender typically uses the business’ last three years income tax returns, plus current interim financial statements to evaluate the amount of cash flow available to make loan payments. The available cash flow in each period is compared to the proposed

“Small businesses can qualify for financing with longer repayment terms, lower down payment requirements, and more lenient underwriting guidelines. ”

their risk should be commensurate with limited return on their investment. The small business lender expects to see a small business borrower with sufficient “skin in the game” to work hard and achieve success.

Once again, the lender will employ ratios to ascertain safe levels of owner equity when making loan decisions.

The most common ratio is the debt-to-equity ratio.

Small business lenders have access to statistics for various industries which indicate an appropriate level Continued on page 45

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 39

Continued from page 19 Who Says

the years. In my long career, I have witnessed the success of making customers and their opinions an extended part of the sales team.

The next time a colleague “endorses” something – a product, a movie, a restaurant – listen to how they repeat the “sales message;” probably not at all.

What you'll hear is their personal perspective; what it meant to them.

That is a key point to “who says.”

•

If it appreciates in value isn't that nice.

If you are investing in art, study, study, study. Learn everything you can about the artist. Make sure you are buying the work of the artist. And if the artist is dead believe scientific evidence that the picture is what it purports to be rather than the opinion of an art expert. Art experts come and go.

Science doesn't.

N D Brown Principal brownchild ltd inc 3754 Sunset \Houston TX 77005 713 807 9000 cell 713 822 8370 don.brown@brownchild.com www.brownchild.com

We all accept word of mouth advice because they are “experts” and we want to trust their expertise. To us they are “who says.”

I worked with a client who offered a wider range of merchandise at more competitive prices than any of the competition but research showed prospects did not think my client was for them. By having actual customers make the selling points the trend reversed itself. Once consumers heard it from a source they related to, they wanted to believe the experts.

We've all been asked to “tell a friend and get a discount” or '”give us five names and...” Those tactics have value but they all require customers to do something for YOU. The spin has to be to get them to “volunteer” their opinions. Today's social media is your customer’s friend-to-friend tool and while it works for them, it can work for you.

Of course it's smart to extend your list with the “send five names” tactic but it's much more credible when your customer thinks it's their idea. And more often than not all you have to do is ask.

Five things to think about when developing strategies for your word of mouth campaign: •

We all want to be part of a cool group.

•

We all want to be thought of as experts.

•

We all want to see our name/face among our peers.

•

We all want to be acknowledged as having power.

•

We all want to be a hero.

•

P.S. In my “expert opinion,”

•

Buy art that pleases you and that you can afford. In that order.

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 40

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Discover how you can‌ Ward off potential lawsuits Dramatically slash your taxes Greatly reduce your chances of an IRS audit Gain a more credible business image Protect your assets and family for the future Since 1972 we’ve made it our business to make sure you get the most out of your small business.

Reap the rewards. Savor your privileges. Join the ranks with the mega successful.

Start now with a complimentary consultation from a Laughlin Associates business advisor today.

1-800-648-0966 www.mycorporatecastle.com

Continued from page 24 Survive Then Thive in 2013

Tax Planning: Taxes are the biggest expense your business will pay. The amount you pay in taxes should never be assumed. Uncle Sam has provided a cornucopia of tax deductions for business owners but they are only beneficial if utilized throughout the year. Waiting until December could cost you dearly.

Estate Planning: Regardless of wealth or age, you need to have a plan in place that can uphold your wishes and provide emotional and financial support to your family and loved ones if you were to become disabled or pass away.

A well-drafted estate plan will guarantee your financial future is carried out the way you want it to be, not the way the government says.

Exit Planning: No matter how great your entrepreneurial and management abilities, the day will come when you want to sell the business, turn it over to someone else or simply shut it down. Getting a business valuation, making sure your systems can be duplicated and maintaining clean company records are just a few things you want initiated to bring value to your business.

SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 44

Being a business owner requires a lot of planning, preparation and execution. The time you spend outlining your strategy will be time well spent.

Aaron Young, CEO of Laughlin Associates, www. laughlinusa.com. Aaron teaches entrepreneurs how to build a corporate fortress for their business and family.

An advocate for small business, Aaron has armed over 80,000 entrepreneurs with strategies that can be applied immediately to create exponential business growth and asset preservation. An author, speaker and frequent guest on radio and television, Aaron teaches how to move from dream to reality without putting everything at risk.

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Continued from page 39 Qualifying For Real Estate Mortgage Through...

of leverage for the type of business for which a loan is being considered. Fortunately with SBA lending, lenders are more flexible with types of equity (or “skin in the game”) that can be considered. Not only can the SBA lender recognize cash dollars invested in the business by its owners, but also assets outside the business pledged as additional collateral for the loan will enhance what the lender considers equity. Finally, if a small business owner is buying business assets, and the seller agrees to subordinate standby financing, the SBA lender can enhance its debt-to-equity ratio this way. For instance, a seller of real estate may not be willing to negotiate a lower sale price, however, they are willing to carry a second lien note to help the buyer qualify for financing with a lower down payment requirement. If that seller agrees not to require payments before the SBA loan is paid, the SBA lender can add that amount to the buyer’s qualifying equity.

Credit History Lenders love statistics. The best indications of how a borrower will meet his loan obligations in the future are the statistics reflected on a credit investigation that shows how other creditors have been paid by the borrower in the past. Small business lenders evaluate the repayment records of the individuals who own the business, as well as for the business itself. Credit reports are available from credit reporting agencies, as well as from direct contact with previous creditors. The more debts which reflect satisfactory payments in accordance with the loan terms, the more comfort the small business lender will derive from them.

Collateral We have established the fact that a lender is not an owner, and the lender should only assume a level of risk which is appropriate for the limited income they will receive from lending money. It should be evident, therefore, that the lender will look for other ways to decrease their lending risk when approving loan terms. Besides evaluating risk based upon management experience, “skin in the game,” cash flow repayment ability and credit history, the business lender will also look at collateral offered for the loan. Collateral is represented by assets which can be sold to recover losses if loan payments can no longer be made by the small business borrower. Typically a lender will use the assets being financed as collateral. Other business assets and personal assets can be added to the collateral package to decrease the lender’s risk and to enhance a borrower’s chances for loan approval.

For more information, or if you have questions, please contact Bruce Hurta, Business Lending Manager at Members Choice Credit Union. You can see other educational articles about SBA financing at Bruce Hurta’s blog http://brucehurta.wordpress.com.

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 45

Continued from page 8 Put Joy First

Friday: How did I invest in my future today?

that will give deeper satisfaction or help you learn something new.

Saturday: When were you at your best this week? What were you doing?

What time of day was it?

Examples of this exercise would be:

Sunday: What am I looking forward to in the week ahead? Why?

Instead of sitting on the couch and reading, I will take a bike ride.

Using these daily brain changing notes you can discover and enjoy the smaller joys in life that sometimes get passed over as “just another day”. If we slow down and savor them, they should start multiplying and we will become more conscience of the daily joys of appreciation. Appreciation is the highest form of joy according to Susan Perry, Ph.D, author of Loving in Flow.

To keep our joy rolling beyond the last episode of American Idol, we need activities that require effort, skill and concentration says author of Good Business, Mihaly Csikszentmihalyi, Ph.D. Happiness move #4: raise the quality of downtime.

Take a few minutes and jot down alternative ways of engaging in skills

Instead of watching tv, I will do the crossword puzzle in today’s paper.

Instead of eating a bowl of ice cream, I will learn how to make a new desert recipe out of one of my many cookbooks.

Instead of watching a movie, I will read the book the movie was based on.

Instead of playing solitaire on my computer, I will ask friends over to play cards.

Instead of going shopping for new clothes, I will clean out my closets and organize them.

Replace at least one of these monotonous habits per week with a more challenging, satisfying activity.

You will not only feel more relaxed but smarter too.

According to a study from Ann Arbor

Michigan people who brood about a failure are more likely for little disappointments which keep them in a state of depression or moodiness.

So instead of replaying the flops or aggravations and blaming yourself, change your self talk about yourself into positive statements that are constructive.

The practice of this is Happiness #5: Instead of self talk that goes this direction, “Gee, I should have asked them if they were qualified for this price range. What an idiot I am.”

Change your self talk to: “next time before I take anyone in my car I am going to use my good sense, and find out who qualified them, when they were qualified, what price range they are qualified for”.

Rita Santamaria is the owner of Champions School of Real Estate and Champions School of Professional Development. www.ChampionsSchool.com

Continued from page 14 The Ladder of Wealth

business and economic world. This level is where you'll buy 20 properties in a bundle at pennies on the dollar because you know you can invest the necessary cash to repair, remodel, market, and then sell the properties over the next five years and make a handsome profit. If the market isn't ready to sell in five years, you are comfortable holding the properties and sell them in 10 years. You are, at this level, very aware that time is more important than money, and use time to your advantage.

From employee to entrepreneur is a great journey and one that I'm privileged to teach and mentor each and every step along the ladder. As you continue to climb the ladder, your challenges may become larger, however, your rewards can also become larger. The journey is fun, too, for those who enjoy the new challenges.

Doug Winnie is Certified Executive & Business Coach with ActionCoach SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 46

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 47

EDITORIAL FEATURE

Where to Find Existing Businesses For Sale By: Jeffrey D. Jones, ASA, CBA, CBI

Jeffrey Jones

F

inding profitable businesses for sale at reasonable prices can be difficult.

Often business owners have an inflated idea as to the value of their business due to articles in the Wall Street Journal describing the high multiples of earnings obtained by some of the publicly owned companies. The primary resources for finding profitable businesses for sale include the following: • Ads in trade publications - If you are looking for a specific type of business, then obtain trade publications within that industry. They often have classified sections advertising businesses for sale.

• Suppliers – Suppliers sometimes are aware of when their customers are ready to sell.

Again, if you are looking for a specific type of business, then call on the vendors who sell to the businesses within the industry and seek their knowledge of customers who may want to sell. Calling or writing to these suppliers and vendors and making them aware of your acquisition criteria may surface several prospective sellers that are not actively on the market, but would consider selling.

• Direct mail - Using direct mail to contact business owners whose businesses meet your general acquisition criteria can generate potential seller prospects. This method is frequently used by business brokers to seek out business owners who desire to sell. A short coming of this method is that you are contacting owners who may not be actively for sale and therefore, their motivation to sell may not be very strong which often results in unreasonable prices and terms of sale.

• Business Brokers – These companies can be a valuable resource of businesses for sale. Their full time job is to contact business owners and find those who are motivated to sell. Business brokers will usually have a variety of businesses listed for sale at any given point in time. Brokers usually helped the business owners with determining reasonable values for their businesses, and then prepare

business profile packages that greatly help buyers In doing their due diligence . Business brokers usually are aware of the financing resources and can help direct buyers to those sources best suited for specified business investments. The broker’s fee is typically paid by the seller. It is usually stated as a fixed fee or a percentage of selling price. It is not an add-on to the otherwise fair market value of the business, but rather a cost to the seller for getting the fair market value of their businesses.

• Searching the Internet – This is the newest method for finding businesses for sale. Most business brokers have web sites where they provide a list of businesses they have for sale. There are several national web sites where both brokers and business owners list their businesses for sale. These sites include: Bizquest.com, BizBuySell.com, businessbroker.net, and Businessesforsale. com. In addition to providing a list of businesses for sale, these sites also provide educational material regarding how to buy, sell, and value a business.

• Hire the services of a business broker – Finding a business for sale and be a long and tedious process. While most of the time business brokers represent the seller, they can be hired to represent the buyer. This is especially helpful when you are looking for a specific type of business for sale that may not be actively on the market. Often, a business owner will consider selling when a qualified buyer approaches them; however, many owners do not want their business actively on the market for sale.

Once you find a business owner who is willing to sell, then conducting your due diligence is an important process prior to closing on the transaction. When dealing with a business broker, there will usually be a business profile package that describes the business and provides a summary of the business. The broker will have already obtained copies of the business and financial documents you and your Continued on page 49

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Continued from page 48 Where to Find Existing Businesses for Sale

advisors will need to properly analyze the business. Typical parties to a transaction will be the seller and his advisors, such as his attorney, accountant, and broker, the buyer and his attorney and accountant, a landlord, a lender, a franchisor (if the business is a franchise), an escrow attorney who typically prepares the closing documents for both sides, and a real estate title company, if the sale includes the real estate. Coordinating all these parties to a transaction can be difficult and any one of these parties has the potential to help kill the deal. It is part of a business broker’s job to help coordinate all these parties and to enhance communications among them.

Odds of a child becoming a professional athlete: 1 in 16,000 Odds of a child being diagnosed with autism: 1 in 88

Jeff Jones is President of Advanced Business Brokers, Inc. and Certified Appraisers, Inc. 10500 Northwest Frwy., Suite 200, Houston, TX 77092 713-401-9110, jdj@advancedbb.com www.advanced.com.

Some signs to look for: No big smiles or other joyful expressions by 6 months.

No babbling by 12 months.

No words by 16 months.

To learn more of the signs of autism, visit autismspeaks.org © 2012 Autism Speaks Inc. “Autism Speaks” and “It’s Time To Listen” & design are trademarks owned by Autism Speaks Inc. All rights reserved.

Continued from page 22 How To Deliver a Great Speech

remained as powerful now as it was then.

Lincoln did more than just dedicate a cemetery to the fallen soldiers; he captured the entire mood of the nation and inspired them to take a stand for liberty and equality.

To read Lincoln’s speech and hear Johnny Cash deliver it, go here http://www.americanrhetoric.com/speeches/ gettysburgaddress.htm .

5. Susan B. Anthony delivered a speech after she was arrested, tried and fined $100 for voting in the presidential election in 1872. As you read this short and powerful speech, you can hear the emotion and passion. Susan reportedly never paid the fine and she toured the country speaking on women’s right to vote, although it wasn’t until 1920 that women officially won that right in the U.S. Visit http://www.nationalcenter.org/AnthonySuffrage.html to read Susan’s short and compelling speech.

In each of these cases and for all great speeches, a need is addressed. The stronger the need, the more compelling the speech can be. One key (that each of the above speeches does) is to paint the picture of the need first, identify the problem, the pain, the wrong that must be righted and why. Although, as in Steve Jobs’ speech, you can say up front what the speech is about and illustrate your main point with stories which can be very powerful.

Great speeches are usually carefully and painstakingly www.SBTMagazine.net

prepared, written, practiced, and delivered with emotion.

The speaker feels what it is that they want to convey. If you want to inspire, you must be inspired. Whatever you want to cause with your audience, you must be it first.

You will never inspire anyone if you are not inspired.

Each of these great speeches are timeless, they all have one point that they are conveying, they answer a great need, they are each written speeches, and delivered with great meaning and passion.

For anyone to deliver a great speech, find opportunities where you can inspire others. Enjoy what you are doing.

The way to connect with your audience and deliver a great speech is to enjoy the experience, enjoy being on the stage, enjoy being at the center, enjoy delivering your message. Thus, it’s critical and all important that you believe in your message. Your passion will be transferred to the audience. Caring deeply about your message is authentic, compelling and the cornerstone of confidence, which is essential in delivering a great speech.

Good Luck!

Pam Terry is a speaker coach and communications trainer in Houston, TX. She can be contacted at 832-276-4153 or pam@pamkterry.com Visit her blog and website at www.pamterry.com SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 49

EDITORIAL FEATURE

Seven Deadly Mistakes for Failure in a Small Business

By Dwayne Briscoe, Bookkeeping-Results LLC Submitted by Steven Kay, Steven Kay Media LLC

M

istake #1 - Not getting good help. Many people think that as long as they can balance a checkbook halfway, it’s possible to keep the books for a business. Teaching and training in a variety of settings for over five years, there are two questions that always come up. 1. Why do I need to know accounting to operate QuickBooks? 2. What do taxes have to do with QuickBooks? The answer is simply - the Internal Revenue Service (IRS). The field of accounting and the U.S. tax system work hand-in-hand with each other, and not having a good resource to make sure that your finances are correctly maintained can be a costly mistake that can cause the demise of your business. Just because you hire a relative, friend of a friend, or a pretty face, doesn’t mean they can handle your books correctly.

Mistake #2 - What records? Bank statements, credit card statements, and hand-written notes on what you spend in a ledger are not adequate avenues of record keeping.

During an audit, accurate copies of invoices, receipts, bill of sales, etc. are what is required for verification and your defense on what you put on your taxes. A document should contain the date, vendor/customer, address, what is being sold or bought, and the amount of the item(s). A shoebox with everything is not an answer, either, to your record keeping system.

Mistake #3 - The runaway train syndrome. So many small business owners are so obsessed with making money, they feel that they’ll get their books “caught up” until it’s too late and time to file their taxes. Even worse, they wait several years before deciding it’s time to accomplish the task at hand. Between sharing personal and business credit cards, personal and business bank accounts, as well as taking out large sums of cash with no back-up is a recipe for disaster in your business to fail before it can succeed.

Mistake #4 - Why back-up my information? First off, paper documentation can fade, be misplaced, destroyed by accident, etc. The same can happen with computer files, whether you’re using QuickBooks or Excel spreadsheets.

This is why scanners, flash drives, and back-up systems are available to protect the information. The IRS can go back as far as six years, and just because you don’t have the information to back-up your tax return figures,

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doesn’t mean that you’ll be forgiven. Yes, the IRS doesn’t require receipts under $75.00, but that doesn’t mean that you can work without them. The devil is in the details and you would have no one to blame but yourself if you lose all of your data.

Mistake #5 – I don’t have time to talk about my financials.

The person handling your books is a key partner in making your business a success. However not making the time to review what money is coming in and going out, you have no earthly idea on if you’re successful or not. Your employees could be committing fraud, you could be behind in getting your bills paid on time, you could not be collecting overdue invoices, and worse, potentially ruining your credit in the process. All because you don’t make the time to understand your financials because you are too trusting and when it’s too late, you’ve potentially lost your livelihood.

Mistake #6 – I’ll stick with my green journal pad. It’s 2013 and people are still too cheap to spend a few hundred dollars on a software program that can give them all of the information that they need to help make their business successful. Yet, they’ll spend thousands of dollars on trying to bring in customers, new equipment, or salaries on themselves or employees. Where is a business owner’s common sense when they feel that the accounting part of their business is a financial black hole?

Mistake #7 - Why can’t I charge every expense off to my business? The definition of a business expense, is a transaction for which is necessary to help the operations of a business. This goes back to: Why do I need to know accounting to operate QuickBooks? What do taxes have to do with QuickBooks? Every decision you make financially that goes on that tax form, needs to be justified and defended if it ever gets called into question. If running a business was easy, then everyone would be doing it.

Dwayne Briscoe, Founder & Owner, Bookkeeping-Results LLC, 888-692-2083, www.bookkeeping-results.com. Steven Kay, Talk Show Host & Producer / Media Buyer & Consultant, Steven Kay Media LLC, 713-STEVEN-K (713-783-8365), me@StevenKayLive.com, www.StevenKayLive.com.

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T:7”

BY GIVING JUST A FEW HOURS OF MY DAY, I HELP CHILDREN

PREPARE FOR A LIFETIME OF LEARNING BECAUSE I DON’T JUST WEAR THE SHIRT, I LIVE IT. GIVE. ADVOCATE. VOLUNTEER. LIVE UNITED ®

Ruth Rusie is part of United Way’s ongoing work to improve the education, income, and health of our communities. To find out how you can help create opportunities for a better life for all, visit LIVEUNITED.ORG.

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SMALL BUSINESS TODAY MAGAZINE FEBRUARY 2013 | PG 51

LOOKING LOOKING FOR FOR AN...

AN...

LOOKING LOOKING FOR FOR A...

A...

ATTORNEY? ATTORNEY?

TITLE TITLE AGENT? AGENT? LOOKING LOOKING FOR FOR A...

A...

LOOKING LOOKING FOR FOR A...

A...

REAL REAL ESTATE ESTATE AGENT? AGENT?

MORTGAGE MORTGAGE BROKER? BROKER?

WHERE YOU GO TO WORK

713-681-7001

Advertiser’s Index Alonzo, Bacarisse Irvine & Palmer, P.C. .........................45

Main Street Chamber of Commerce............................ 9

Autism Speaks ..............................................................49

Nerium...................................................................2

Bobbie Porter-216 Resources .......................................47

Ozone Pest Blasters ....................................................46

Burnett Specialists .........................................................31

Quality Hospitality Travel d/b/a Cruise Planners................40

CHI ........................................................ Inside Back Cover

RAC Conference Center..............................................37

Champions School of Real Estate................................8

Robert Bazemore, Attorney ..........................................30

Churchill Mortgage...............................Inside Front Cover

Sales Nexus ...................................................................4

CMC Custom Homes ..................................................45

Sarah's Florist ..............................................................31

Courthouse Direct.........................................................52

Steven Kay ....................................................................25

Cruise & Hughes ..........................................................15

StoryTellers ....................................................................30

Denis Seafood .................................................................30

Suzanne Chadwell/OFI .................................................30

ELP Oilfield Supply ....................................................31

TG Design .....................................................................33

Eric Kleiman Photography..............................................51

United Way ...................................................................51

Fidelity National Title-Galleria...........................Back Cover

VIP Orbit ........................................................................18

Houston Minority Supplier Development Council .......20

WBEA ...........................................................................35

Houston West Chamber of Commerce .......................26

Westpark Communications ............................................1

Keystone Resources......................................................41

Westpark Communications ............................................31

Laughlin Associates..................................................... 44

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