Sbtm november issue02 by Small Business Today Magazine

SBT Houston Staff NOVEMBER 2014

PUBLISHER SCOLUMN

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

From the Publisher

Business Development Manager Deborah A. Powell

Steve Levine

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

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

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

Chief Advisor Hank Moore Publisher’s Advisory Board

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

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

Phone: 832-419-2814 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today 5380 West 34th Street, Ste 230 Houston,TX 77092 See us on the web at www.SBTMagazine.net Free APP for Android & iPhone go to your APP Store and type in Small Business Today Magazine SMALL BUSINESS Today MAGAZINE IS PUBLISHED MONTHLY BY LEGACY PUBLISHING GROUP, LLC. 5380 WEST 34TH ST., STE. 230 HOUSTON, TX 77092 EXECUTIVE PUBLISHER - STEVE LEVINE: 832-419-2814 CHAIRMAN - JOHN CRUISE: 832-460-2020 www.SBTMagazine.net ADVERTISING RATES ON REQUEST. BULK THIRD CLASS MAIL PAID IN TUCSON, AZ. POSTMASTER: PLEASE SEND NOTICES ON FORM 3579 TO 5380 WEST 34TH ST., STE. 230 HOUSTON, TX 77092. ALTHOUGH EVERY PRECAUTION IS TAKEN TO ENSURE ACCURACY OF PUBLISHED MATERIALS, SMALL BUSINESS TODAY MAGAZINE CANNOT BE HELD RESPONSIBLE FOR OPINIONS EXPRESSED OR FACTS SUPPLIED BY ITS AUTHORS. COPYRIGHT 2012, LEGACY PUBLISHING GROUP, LLC. ALL RIGHTS RESERVED. REPRODUCTION IN WHOLE OR IN PART WITHOUT WRITTEN PERMISSION IS PROHIBITED.

“To those whom much is given, much is expected.” November Greetings everyone!

ne of the criteria that the Small Business Today Magazine’s Publisher’s Advisory Board must consider in the nomination and subsequent vote for a potential cover honoree is that the nominee must demonstrate their generosity. Our cover honorees must demonstrate their generosity in how they give back to the community, their industry, and their fellow man.

We at SMALL BUSINESS TODAY MAGAZINE have found that there is a direct link between one’s generosity and one’s success. Whether that generosity is part of their business plan or is something that is done with little or no fanfare, they are blessed when they bless others. I often think of the quote “For whom much is given, much is expected.” The idea of “For whom much is given, much is expected” is that we are all held responsible for what we have. If we are blessed with talents, wealth, creativity, knowledge, time, and the like, it is expected that we use them responsibly so that we glorify the Lord and benefit others. November is typically the month that we always seem to start thinking about our blessings and how bountiful our lives are. It is only normal during this month that we think more about others. Barbara, John, and I believe in blessing others and not expecting anything in return. Regardless, we have been blessed in return and here are a few reasons why:

• We have met and been able to share the stories of over 30 of Houston’s most successful entrepreneurs that serve as inspiration for our global readership.

• We have been able to have met so many people who want to be part of our mission to empower aspiring entrepreneurs and small business owners.

• We have had the opportunity at this year’s “Business Professionals of America” Conference to

be major sponsors of their state conference and competition and to witness (as judges) the creativity and passion for entrepreneurship that many of today’s high school students have. • We have been honored with many nominations for this year’s “Houston Minority Enterprise Development Week Media Recognition” for our support of minority owned businesses whether they are part of our business or just in our world. This month’s cover honoree, Kathleen Maartens of Exhibit Network, is a prime example of someone with a caring heart and a successful business. As busy as she is, she takes time out to teach ESL every Tuesday evening. She and her husband Lenny treat their employees like family so much that they allow them to bring their babies to work. They also have a multipurpose room that comes complete with a full bathroom and is furnished with bunk beds, big screen television, computer, videos, and toys. Not only is it used as a hurricane evacuation room but it’s also a working overtime room and a sick kids’ room. This way, the parents don’t have to worry when their children become ill and can still give them attention without having to miss work. Please remember as you “give” this holiday season to those less fortunate than you that the hungry, the homeless, and the destitute are hungry, homeless, and destitute all year round and not just during the “Season of Giving.” Have a wonderful and blessed holiday! Good Reading, Good Sales, and Great Success to You All!

Steve Levine

President/Executive Publisher, Small Business Today Magazine

[ NOVEMBER 2014 ] www.SBTMagazine.net 3

INSIDE NOVEMBER 2014 EDITION HOUSTON

Publisher’s Column

How to Become and Remain a Good Leader

Your Sales Leads Ignore You! 4 Reasons Why Your Email Marketing is Useless

Houston to Create Cultural Plan 15 Differences & Similarities in the Portuguese Speaking World

Are Trademarks Important To Your Business?

Big Picture of Business - Real Quality vs. Arbitrary Metrics

How to Avoid Getting Taken Advantage Of In Business

Your Next Step How to Take the CHILL Out of Cold Calls (Part 3)

Getting Organized: 7 Filing Mistakes You May be Making

Probabilities and Possibilities

The 5 Vital Components of a System

Faster Government- Guaranteed Loans for Small Businesses

Kathleen and Lenny Maartens Exhibit Network – It’s Family Values that Keep Them Scooting Along and Growing Strong

Seasonal Philanthropists — What Gives?

Today is the Perfect Day to Fail

Business Networking and Social Media

Champions School of Professional Development

Houston Minority Supplier Development Council

5 Key Ways to Increase Your Small Business Chances of Winning Government Contracts 34 Be a Visionary to the Core

Financial Astrology for November 2014

Speaking the Unspeakable – Part 2

How to Avoid A Million Dollar Hiring Mistake

Time to Review your Business Plan, It’s Year End [ NOVEMBER 2014 ] www.SBTMagazine.net 5

EDITORIALFEATURE

Kathleen and Lenny Maartens

Exhibit Network – Exhibit Network is “25 Years Young” and still on the go!” Photo by Gwen Juarez Photography.

It’s Family Values that Keep Them Scooting Along and Growing Strong

By Barbara R. Davis

s the old adage goes, “Word of mouth is one of the best forms of advertising,” and that rings so true with Exhibit Network that they haven’t had a salesperson in years! It is the quality of their work, the care in which they give their clients, and their family values that set them apart. They never look at exhibitors with dollar signs in their eyes and it is not uncommon for them to offer help to anyone who needs it on the show floor. Exhibit Network has had its ups and its downs but has weathered through those times to become the great success they are now. They are celebrating their 25th year in business, scooting along and growing strong!

6 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Here is how it all began:

Kathleen Maartens grew up in a small town in Western Pennsylvania as one of eight children. Her father worked at the PPG factory for 43 years and her mother was a full-time homemaker. Immediately after graduating from Indiana University of Pennsylvania with a degree in Psychology, Kathleen moved to Houston to begin her career. Realizing she needed more business education, Kathleen went back to college in Houston and took courses in accounting, business law, management, and real estate. Eventually acquiring her real estate license, Kathleen began working for a property management company in Spring, Texas. Money was

tight and she didn’t own a television so she frequently visited her neighbor in the apartment complex to watch his television. One night, a friend of Kathleen’s neighbor came for a visit while she was there. Initially, she didn’t like him but eventually her feelings must have changed because she ended up marrying him! That person was Lenny Maartens. Lenny had grown up in Long Island, New York with six siblings. He helped the family financially with a newspaper route and a part-time job after school. His older brother worked for a cabinet shop and at age 14, Lenny began manufacturing kitchen cabinets too. After graduating early at 17, Lenny continued working in the cabinet business full-time. At age 19, Lenny was in search of something more challenging and also was considering joining the Coast Guard. He had taken the test for the Coast Guard and completed all of the requirements short of signing on the dotted line when he saw an ad from a company in need of a cabinet builder for creative cabinetry. As it turned out, the company was outfitting a Silver Eagle bus to be used for a rock band. In addition, the company designed and built custom trade show exhibits. This was right up Lenny’s alley so he applied for the job and was hired. After working there for several years, Lenny left New York in 1983 and moved to Houston,Texas. Almost immediately, he was employed by a cabinet shop that made custom cabinets and millwork for car dealerships throughout Texas. It was during this time that Lenny visited his friend while Kathleen was watching television and the two met for the first time. Lenny gave a big smile and greeted her with, “Hello there!” Kathleen brushed him off. Eventually, the two of them became friends and, in due course, they were married. Fast forward to May of 1989, Kathleen and Lenny decided to start their own business because they had three children and Lenny wanted to have more time with them. Their vision was to create a company that was “family friendly.” Lenny had been working for an exhibit house at the time and met a colleague who had extra space in his warehouse and offered it to Lenny. So Lenny quit his full-time job and Exhibit Network was born! At the beginning, Lenny worked part-time installing exhibits for his colleague when needed and used the warehouse space to build cabinets for Exhibit Network. All of the company phone calls were forwarded to the house where Kathleen was home with the children. Sounding very professional, Kathleen would answer the phone “Exhibit Network!” no matter who was calling. When the calls were important, Kathleen would “beep” Lenny on his pager so he would know to call in and get the message to return the client’s call. When Kathleen needed to pick up checks from clients, she would load the three children in their old Chevy Blazer and take them along. Exhibit Network bootstrapped from the very beginning. After each job was completed, they would use the profits to buy another

piece of equipment. After two and a half years, the colleague who had offered them space in his warehouse asked if they wanted to take over the entire lease space. Since they were already using every inch of space that they could, they were more than happy to take over the entire place. Little by little, Exhibit Network grew and they began hiring employees. With the children in school and in daycare, Kathleen started working at the business full-time. As the company continued growing, systems were created and implemented that boosted the business even more. Lenny met a graphic designer who worked at a young energy company called Enron Corporation. In a short time, Enron was doing a million dollars in business annually with Exhibit Network. In addition, other natural gas companies who saw Enron’s exhibit on the show floor were impressed and called Exhibit Network. At one Houston annual trade show, Exhibit Network had 27 to 30 clients there! They traveled all over the U.S. and Canada setting up exhibits for their clients. In early 2001, Kathleen saw signs of troubles ahead when Enron’s payments took longer and longer to arrive. In December 2001, Enron declared bankruptcy, owing Exhibit Network about $216,000. During that same year and shortly thereafter, the United States experienced 911, the SARS epidemic, the beginning of the Iraq war, and the downsizing of many natural gas companies (many of whom had been Exhibit Network’s primary clients). Lenny and Kathleen tried to be optimistic but the financial consequences were brutal. Exhibit Network went from 25 to 6 employees. Some were laid off and others left on their own accord. Lenny and Kathleen were so determined to keep their business alive that they worked without paychecks for almost nine months, doing whatever they could do to keep the remaining employees productive and the lights on. In 2004, Exhibit Network’s full-charge bookkeeper approached Kathleen to inform her that they couldn’t afford her any longer. Kathleen asked her,“Well, who is going to do the books?” The answer was short and to the point.“You are.” Kathleen was upset to the point of tears. She said “I can’t do this. I’ve taken accounting classes; I understand the concept, but I never practiced it.” The bookkeeper graciously offered to stay for two weeks and show her everything she needed to know. For those next two weeks, Kathleen cried and cried, then cried some more, but learned how to do the accounting. The bookkeeper was also kind enough to come back for the first two payrolls and help Kathleen run them. Then she came back the first two quarters to help Kathleen prepare the quarterly reports. It was during these times of greatest stress that the most valuable lessons were learned. “You don’t know what you are capable of until you have to do it,” stated Kathleen humbly. Although this was a difficult period, both Lenny and Kathleen are glad they went through it and persevered. In time, Kathleen became comfortable in handling the company’s finances even though she felt there was something else she [ NOVEMBER 2014 ] www.SBTMagazine.net 7

At Exhibit Network, they find it hard to believe that they earn a living having so much fun! They are a “Fun Bunch!” Photo by Gwen Juarez Photography.

was missing. She would stare at the numbers on the profit and loss and balance sheets for hours and even talk to them. She’d ask, “What do you mean? What are you trying to tell me?” The first time she had to do the tax return with a CPA, she went over it with a fine tooth comb and even found mistakes and made corrections. Kathleen recalled, “One day, the numbers started talking back to me. Things began to make sense and I started to see a pattern.” She continued, “A profitable year has a certain percentage of cost of goods sold compared to revenue. A profitable year has a certain percentage of overhead expenses compared to revenue. Anything less than these percentages are undesirable. Sounds simple, doesn’t it? Now Exhibit Network has a gold standard based on these desired percentages although we are always striving for improvement.” At least twice a year, Kathleen shares the company’s revenue, cost of goods sold, expenses, and bottom line with the employees. During this presentation, they discuss who the top 15 clients are. Kathleen states to them,“These are the clients who are making your paycheck. It’s not me. I get my pay from the same place you do.” Kathleen always tries to make the employees a part of the process. She says to them, “Here’s where the money comes from. If this is our biggest client and we lose them, look how much money we are all losing; it’s not just me – it’s part of you. It’s the clients you are serving.” A lot of Exhibit Network’s success can be attributed to the fact that Lenny and Kathleen are as much concerned for their employees’ well-being as they are their own. They recognize that their employees entrust them with their livelihood. They believe 8 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

in keeping the atmosphere as family-oriented as possible but also believe in keeping their clients’ needs first and foremost at all times. Lenny explains, “It is a business and I think we all are doing our very best to provide the client a very good product and a great service. We’re all on the line every day and we can’t sit back on anything. We may have done a good job last week but we still have to do a good job this week.That never changes. Our goal is to always be looking for ways to improve as best we can all the time.” Kathleen rarely works directly with clients. She leaves that up to her capable team. “They do it very well and they know what they are doing - more than I do.” says Kathleen with pride. Kathleen is a firm believer in staying on top of her game through education and affiliations. When she participated in the Goldman Sachs 10,000 Small Businesses Program in the Fall of 2012, she was able to take her business to a higher level than ever before. Kathleen explained, “They reaffirmed all the things I had previously learned and they threw in a few things that were very illuminating.” Kathleen is part of a CEO Roundtable made up of participants from her Goldman Sachs Cohort 5 group and is a member of the powerful WBEA (Women Business Enterprise Alliance). Kathleen is also enrolled in the Organizational Leadership degree plan at the College of Biblical Studies and attended classes while working full-time from January 2010 to December 2013. Last but not least, Exhibit Network is a member of the E2MA (Exhibit and Event Marketers Association).

Kathleen believes in giving back to the community and teaches ESL classes every Tuesday evening. In their spare time, Kathleen likes to work in her garden creating new landscaping designs and Lenny likes to hunt and fish.

The ladies of Exhibit Network are a “Power House of Services!” Photo by Gwen Juarez Photography.

Kathleen and Lenny have done quite well working together. They have used their positions as polar opposites to their advantage. Most important to them is their marriage and they have never let their marriage take second place to the business. Lenny expressed it well, “I think because we both know our jobs well enough, we respect each other’s talents. I think it gives us an advantage when to leave each other alone. I don’t want to do her job so I don’t dare interfere. The older I get, I’ve become a lot more supportive. I’m now more patient and more willing to listen than in the earlier years when my brain-train was moving way too fast. I was more worried about the projects that I had to complete and I couldn’t gear my mind towards future growth or different marketing aspects which Kathleen was so well-attuned to. So she got the short end of the stick sometimes. I can tell you that.” “Kathleen has the vision.That is her greatest strength. I’m trying and she is dragging me along,” laughed Lenny. “The greatest thing I learned from my wife is the ability to say ‘No’. And that took a long time for me to learn. Early on, I missed too many Little League games and dance recitals because I was insecure. I was involved in too many projects that, in retrospect, were not worth the money compared to the family events I missed. My most important goal now is to try to find that right balance between work and family.” During the last five years, Exhibit Network has invested a lot of time and money on rebranding, rebuilding, and remodeling their 45,000-square-foot facility. Their striking conference room is truly a showcase of their creativity and talent. Now that they have worked so diligently to become more efficient, organized, and systematized, they can take on double the work. One of the greatest things that was thought out in the new design of Exhibit Network’s headquarters and drives home their regard for family values is the multipurpose room they built upstairs. Not only was it designed as a hurricane evacuation room for employees needing shelter during a hurricane, it was also designed as a “working overtime” and “sick child” room. Every exhibit house in Houston knows that preparing for Houston’s Offshore Technology Conference in May requires long hours. Exhibit Network provides a set of bunk beds and a kitchenette where employees can spend the night or take a nap. If one of the employee’s children is ill and home from school, they can stay upstairs and watch videos on the big screen television. The room also has computer games and toys for the children. Also located upstairs is a workout room complete with professional-grade gym equipment. Last but not least, babies are welcome to come with their parents to work as long as they can safely remain in a crib or playpen. It’s truly family values that keep Exhibit Network scooting along and growing strong. [ NOVEMBER 2014 ] www.SBTMagazine.net 9

Take Away Notes 1. If an employee is not in alignment with your values and your vision for your company, remove them immediately because they are hurting you, your clients, and your other employees. 2. Understand your finances. Understand where the money is coming from and where it is going. 3. Have parties with your employees for birthdays, holidays, and other special occasions. 4. Treat your employees and your clients like family. 5. Find your niche and do it well. Then do it over and over and over again. 6. At the same time, don’t be afraid to venture into something new but don’t try to do everything. 7. Take time to go on vacation and get away from it all. Turn off your phone. 8. Tie the ropes on tight and hang on for the ride. Every day presents a new challenge. 9. There are a lot of unknowns that you have to be prepared for and you have to have the tenacity to see them all the way through. 10 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Welcome to the “I.C.U.” (Intensive Creativity Unit), where dreams come together. Photo by Gwen Juarez Photography.

10. Have a good balance at work and home. Learn how to say “No!” 11. Every employer who has been in business for a few years should do an annual SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. Everybody on the team should contribute to what they view are the strengths in the business, what are the weaknesses, what are the opportunities that the company has, and what are some of the threats to the company’s success. This shouldn’t be from the owner’s viewpoint but from each employee personally from their own perspective in the area they work. 12. Lead your clients toward planning far in advance for their events. You are helping them more by taking control of the schedule. 13. Always listen completely to your clients. Don’t assume you know what they are about to say. 14. Take criticism well. Consider it free consulting. If it applies to you, adopt it willingly. If not, store it in your mind in case you need it someday. If it is ridiculous, smile and say, “Thank you anyway.” 15. No matter what happens…”Never let them see you sweat!”

EDITORIALFEATURE

How to Become and

Remain a Good Leader By Rita Santamaria

ome leaders appear because they were fortunate enough to work and learn from other leaders. Leaders arrive from developing a small business and over the years evolve into fine leaders. Some leaders emerged through life difficulties and trying times. There are common characteristics that leaders should try to achieve. The first thought that comes to mind is no one is perfect, ever. Leaders make mistakes and when that occurs within your company’s leadership, the leader needs to admit the mistake. It is certainly a sobering act to do at times when the mistake was a big one. Little mistakes are simple mistakes but if it’s a doozy of a mistake, admit it, make the correction, and leave it alone. Your associates will think more of you, their leader, for being honest about your mistake.

12 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Loyalty to your colleagues, team, and staff is paramount. You should always go to bat for your employees, team members, or associates. When a negative comment is made about a member of your group, the leader does not agree, the leader does not gossip, the leader will go directly to the source and get facts. If the facts bear out that the team member has a deficiency, the leader and team member will discuss it privately. I’ve always believed in, “critique privately, praise publicly” with staff. If a team member has a great suggestion or accomplishes a feat, credit is always given to the team member. The leader would never take credit for something she did not accomplish. The leader is generous with “good work” comments. Compliments made in public go a lot further than those made in private.

»Continued on Page 39

EDITORIALFEATURE

Your Sales Leads Ignore You!

4 Reasons Why Your Email Marketing is Useless By Craig Klein, SalesNexus.com CEO

hen your team spends hours to craft well-designed email marketing campaigns, you want the message to motivate sales leads to purchase. It’s really sad to recognize that much of your email efforts are a total waste of time because the sales lead simply ignores what you have to say.

3. Too Complex

How can you build the coveted business relationship you desire if you are being ignored???

To garner the attention of sales leads, you must be very intentional about making it simple for them. Structure the content to make it scannable. Mix in graphics, videos, tables, and bulleted lists. Tell a story to make it personal. Minimize statistics and features in your content.

Here are the four most common reasons why you are being shut out that can be remedied or at least reduced:

1. Spam Filters

The business of monitoring email for spam is a growing industry. According to e Security Planet, almost 100 billion spam emails are being sent each day. In fact, we recognize the problem of spam filters so much that we dedicated an entire post to giving you tools for avoiding their damage to your email automation.

2. No Reason

Any time you talk about such things as your long track record of success, awards you have received, or the fabulous features of your product, you are really easy to ignore. Buyers have a hard time seeing those factors as a reason to pay attention to your message. Your sales leads are probably focused on their own problems. They have absolutely no reason to pay attention to any of that blustery content. Instead, know your ideal customer well enough to make your email about their issues and triggering events. Offer them additional content – just a click away – that will help them solve the issues that keep them up at night. Make them engage with you. Measure the results. See sales leads convert to sales closings.

Marketers used to say that it took three seconds for a buyer to decide whether to pay attention to your message. Today, it is more like a millisecond. With the plethora of content consumed in an average day, today’s consumers have become highly-skilled scanners.

4. You Don’t Ask For the Sale

While your email marketing is focused totally on the needs of the customer and not your company, you still need to ask. The term used in direct marketing and copywriting is “call-to-action”. The most effective way to deepen a relationship with a sales lead is to offer valuable content that they can click to receive. You want to make it very clear how to get the information without spending time to search for it. Even if your email is about selling the clickable content, you still want to give the sales lead an easy way to simply purchase. Make sure that your message includes a separate call-to-action in the email message itself. Of course, a second call-to-action needs to be subtlety included in the content piece too. With a powerful online CRM (Contact Relationship Manager) you can track which email messages are getting response. Once you identify the ones that trigger action, you can adjust your campaigns to fit the proven method. That is the beauty of having your email marketing and your CRM fully integrated and responsive to your recipients.

Craig Klein is the founder/CEO of SalesNexus.com which is a leading provider of CRM, email marketing, and lead generation solutions for business-2-business sales teams.

[ NOVEMBER 2014 ] www.SBTMagazine.net 13

EDITORIALFEATURE

Houston to Create

Cultural Plan By Annise Parker, Mayor of the City of Houston

am proud to announce the selection of philanthropist, Philamena Baird and Project Row House Founder, Rick Lowe as co-chairs of the effort to create a new cultural plan for Houston.

Rick Lowe is a strategic thinker who is tapped as a consultant on cultural projects around the world. He was selected by President Obama to serve on the National Council on the Arts.

I want to thank Rick and Philamena for agreeing to give their valuable time and take this on. Houston has changed dramatically since the last cultural plan in 1994. We are more diverse economically and ethnically. The number of arts and cultural organizations has grown and our artist community has become one of the most excit- ing inducted into the Greater Houston Chamber ing in the country. It’s time for a new plan that of Commerce Women’s Hall of Fame. will position Houston as a leader and destination A study released last year by the Houston Arts for arts and culture. Alliance and the University of Houston found Rick Lowe is a strategic thinker who is tapped that the arts, culture, and creative businesses as a consultant on cultural projects around the generate almost $10 billion in annual economic world. He was selected by President Obama benefits within the 10 county region with the to serve on the National Council on the Arts. potential to double that number. His most recognizable local project, Project Row The cultural plan process is being coordinatHouses, is celebrating its 20th anniversary this year. Under his leadership, the organization has ed by the Mayor’s Office of Cultural Affairs with hosted more than 300 artists’ installation, per- extensive outreach to the community at large, formances, readings, and other related activities. cultural organizations, artists, and creative busiHe and his team have also developed affordable nesses. Mayor Parker has directed that the plan housing initiatives and brought new life to the El be finished before she leaves office at the end of 2015. In tandem with this, the Department Dorado Ballroom. of Planning and Development is working on the Philamena Baird has a lengthy résumé that in- City’s first general plan. cludes serving as president of numerous organizations including the Moore’s School of Music Society, the Houston Ballet Guild, and the Jung Education Institute. She has chaired the prestigious Hunting Art Prize Event, the Shell Houston Open Eagle Awards Charity Gala, the Houston Serving since January 2, 2010, Annise D. Parker has been elected as the Mayor of Houston three times. She is Houston’s 61st Ballet Dinner, the Miller Outdoor Theatre Advi- Mayor and one of only two women to hold the City’s highest sory Board Gala, the Consular Corp Gala, and elected office. In 2010, Time Magazine named Mayor Parker the Texas Bowl. She has also served on the one the 100 most influential people in the world. Mayor Anboards of the Houston Arts Alliance, Theater nise Parker is a Steering Committee Member of the C40 Cities Climate Leadership Group and serves on President Barack Under the Stars, and the Harris County Sports Obama’s State, Local, and Tribal Leaders Task Force on Climate Authority. Her awards for service to our com- Preparedness and Resilience. She is also on the advisory board munity include being named a Woman of Dis- of Small Business Today Magazine. For more information, go to tinction, receiving a Macy’s Savvy Award, and be- www.houstontx.gov/mayor/. 14 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

EDITORIALFEATURE

Differences & Similarities in the

Portuguese Speaking World By Ludmila (Mila) Rusakova Golovine

ortuguese is one of the most important rising languages on Earth. It is spoken by more than 240 million people spanning the Americas, Europe, Africa, and Asia. Most believe that Portuguese is a uniform language and culture. Nothing could be further from the truth. Portugal’s colonial expansion has yielded a widely diverse and rich Portuguese speaking culture with many different aspects. If you wish to conduct business in this area you must be well versed in this diversity in order to avoid cultural misunderstandings. The mother country of the Portuguese speaking world is, of course, Portugal. Due to its position on the Atlantic Ocean, this country helped launch Europe’s seafaring age and in so doing spread its language to the far corners of the globe. In South America, Brazil was founded. In Africa, the countries of Angola and Mozambique were established. In Asia, Portugal administered control over the Chinese city and territory of Macau. In all of these places, some form of Portuguese is still spoken to this day. Nevertheless, the culture of each country has become an amalgamation of Portuguese and native influences. Consequently, their ways of communicating, though somewhat similar, display significant differences.

Communication style is somewhat varied in the Portuguese speaking world. For example, it is not at all uncommon for a Portuguese or Brazilian person to interrupt their counterpart when speaking.This is commonplace and even expected. However, this is not the case in Angola. Angolans, much like Americans, wait for their turn to speak. Otherwise, the interlocutor will be insulted. The important point is to be prepared for changes in communication etiquette and adjust accordingly.

Nonverbal communication also varies among the various Portuguese speaking countries. Eye contact differs from country to country but it must be taken into consideration to avoid rudeness. In Portugal, eye contact must be maintained. Not doing so implies that you are not listening and is considered disrespectful. Brazilians are also known for employing direct eye contact for the same reason, however in Angola it is disrespectful to look an older person in the eyes. Furthermore, do not be surprised if an Angolan woman does not make eye contact. It is customary in her culture to avoid it. Another major difference in Portuguese speaking communication is physical interaction. In general, the Portuguese speaking world is more interactive physically than its English speaking counterpart but even this varies depending on the country. In American culture, touching the other person while speaking is not acceptable. In Portugal, it is not uncommon for someone to touch you on the arm while talking once the person gets to know you. Brazilians will also do this and probably sooner than their Portuguese counterpart since formality is more relaxed in Brazil. In Mozambique, physical interaction is so close it is even common for men to walk hand in hand. This is an African custom local to that country and a sign of friendship. It has no bearing on sexual orientation. On a similar note, members of the opposite sex should not make physical contact in Mozambique and Angola because it is taken as a sign of interest. In Portugal and Brazil, this is not the case as men and women can make slight physical contact without any misunderstanding of intention. Communication in the Portuguese speaking world can be both direct and indirect depending on the country. For example,

in Portugal and Brazil, the reply of “yes” or “no” means exactly what it says like in American English. Nevertheless, in Angola and Mozambique, “yes” sometimes actually means “no.” This phenomenon is due to the African custom of eschewing negativity. Quite simply, they do not wish to harm the relationship so they avoid anything negative. This situation can be quite frustrating for a Westerner but really all that is necessary is to observe the person’s body language for the correct meaning. Despite the wide diversity of the Portuguese speaking community, it is important to note that there is a great desire among them for cultural unity. In 1996, the Community of Portuguese Language Countries was formed. This organization promotes cooperation, friendship, and mutual development among all countries that speak Portuguese. Therefore, when doing business with one country, keep in mind that the bonds to the other Portuguese speaking countries are very close. With the growing success of the Portuguese speaking countries, especially in the areas of oil and gas, businesspeople are going to have more and more contact with them. Therefore, learning a few phrases to show your appreciation for the culture, hiring a professional interpreter, and understanding the differences and similarities between cultures is the formula for building successful business relationships in any part of the world.

As a graduate of the Wolff Center for Entrepreneurship at the University of Houston, Ludmila (Mila) Rusakova Golovine, Founder, CEO, and President of MasterWord Services, Inc., started her company with a vision of seamlessly connecting people across any language, any time, and any culture. Mila can be reached by email at mgolovine@masterword.com, by phone at 281-5890810, or visit her website at www.masterword.com.

[ NOVEMBER 2014 ] www.SBTMagazine.net 15

EDITORIALFEATURE

Are Trademarks Important

To Your Business? By Mark Murrah

id you know that consumer purchasing decisions are constantly influenced by trademarks? Today’s business person must have a solid understanding of why trademarks are important and what benefits they provide. First, what is a trademark? According to the United States Patent and Trademark Office (USPTO), a trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. Likewise, a service mark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of a service rather than goods. The term “trademark” is often used to refer to both trademarks and service marks.

The three main types of trademarks are:

Many business owners make the mistake thinking that setting up their corporation or LLC protects their name. Actually it does not. If you do not file for protection or buy, license, or acquire a trademark, you do not have one. That means someone else could use your name and prevent you from doing business with that name even if you were the one who originated it. There are two forms of protection: state and federal. Most companies file for federal protection as they sell their products or provide services across state lines. Others who do not qualify for federal protection can file a state application. It is common practice for companies to own various trademarks for their company names, products, and services.

•Word Marks •Logo Marks •Slogan Marks

Why Trademark?

In addition, there are trademark filings available for Color, Sound, and Smell Marks. However, these types of filings are far less common.

Trademarks:

Examples of common types of trademarks are: •Nike® (Word Mark) •The Nike swoosh (symbol, design, or Logo Mark) •“Just do it!”® (Slogan Mark)

An example of a service mark would be the United Parcel Service (UPS) package delivery. A color mark would be the brown color used on all UPS trucks. One of the most recognizable sound marks is the sound a Harley Davidson motorcycle makes.

There are numerous reasons to trademark your word, phrase, symbol, and/or design. • Make it easy for consumers to find you. • Help distinguish your products and services from those of the competition. • Are the most efficient commercial communication ever devised to capture the consumer’s attention and make your product/service stand out. • Help prevent confusion in the marketplace. • Are one of the few assets that can provide you with a long-term competitive advantage. • Are one of your business assets that can appreciate over time. • Can be leveraged and pave the way for expansion through acquisition and brand expansion. • Are relatively inexpensive.

16 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Trademark Lifespan

Once registered, a trademark has a potential indefinite lifespan with the filing of renewals. If renewals are filed every 10 years, the fees are paid, and the mark continues to be used in commerce as originally filed, the registration remains intact. Examples of registered marks with continued longevity are companies like: • Colt (registered in 1889) • Pepsi (registered in 1896) Trademarks are similar to real estate in that they can be brought, sold, licensed, or even transferred by will.Trademarks are an asset that increases your bottom line. In conclusion, when setting up a new business or developing a new product or service, it is important to register that name to secure your market share. A registered trademark is identified by ®, the “R” in a circle. If the application is pending, then you can use the simple TM after your name, slogan, or logo mark. However, it is illegal and considered fraud to use ® if the mark is not officially registered and issued by the USPTO. Take a look around your business and make a determination as to what names, logos, and slogans used in conjunction with your business need to be protected. This small investment will pay dividends over time and will greatly add to your bottom line if you decide to license, franchise, or sell your business. Mark Murrah, a Partner at the law firm of Murrah & Killough, PLLC – Houston’s Business Lawyers, can be contacted by phone at 281-501-1601 or through the firm’s website at www.MKTXLaw.com. The office is located at 3000 Weslayan, Suite 305 - Houston,Texas 77027.

EDITORIALFEATURE

Big Picture of Business -

Real Quality vs. Arbitrary Metrics By Hank Moore, Corporate Strategist™

here’s this thing that online retailing websites do. They use the term “metrics” out of context. Their metrics are arbitrary and they jerk the chains of sellers with figures that are unsubstantiated. They arbitrarily disable accounts. Sadly, this is what is thought of as “quality” in the digital age. Websites that sell products are digital platforms, not the arbitrators of quality in the business world. Metrics are easily skewed and do not reflect the overall customer satisfaction. A criticism of performance metrics is that when the value of information is computed using mathematical methods, it shows that even performance metrics professionals choose measures that have little value. This is referred to as the “measurement inversion.” Metrics seem to emphasize what organizations find immediately measurable and tend to ignore high value measurements simply because they seem harder to measure. Quality is not something that managers assign others to achieve. It is a mindset that permeates organizations from top-down as well as bottom-up. Rather than assume all is wrong or right with an organization and take a defensive posture, management must view quality as essential to their economic survival or growth. Organizations measure quality by overall involvement. It is not enough for management to endorse quality programs; they must actively participate. Quality applies to service industries and manufacturing operations. Even non-profit and public sector organizations must utilize quality approaches for staff and volunteer councils/boards. Employees must buy into the process by offering constructive input. All ideas are worthy of consideration. What if we were all paid based upon customer perceptions of our service? That would make each of us more attentive to what we offer and whether our value is correctly perceived. Empowerment of employees means they accept the challenges and consequences. They must view the company as a consumer would. What is missing in most organizations is the willingness to move forward, not the availability of information or desire for improvement. Willingness requires complete and never-ending commitment by management. The most common pitfalls toward success include: 18 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

What is missing in most organizations is the willingness to move forward, not the availability of information or desire for improvement. Willingness requires complete and never-ending commitment by management. • Taking a piecemeal approach to quality • Thinking that quality needs apply to some other department instead of your own • Thinking that you are already doing things “the quality way” • Failing to address structural flaws that fuel the problems • Focusing on esoteric techniques rather than true reasons for instilling quality • Saying that something is being done when it is not • Failing to engage customers and suppliers into the process • Failing to emphasize training • Setting goals that are too low • Communicating poorly with the organization and its public Research shows the by-product costs of poor quality are high for any business, up to 40 percent. Lack of attentiveness to quality has cost the United States its global marketplace dominance. Other nations preceded the U.S. in adopting the quality process and overtook our nation in many areas. In 1981, more than 70 percent of U.S. automobiles realized defects within six months of purchase. That figure has now dropped below 40%, compared with 30% or less in Japanese cars. The Japanese have always viewed quality as a national issue, not just an individual company matter. The real victim of America’s late entry into the quality process was every employee whose livelihood was endangered. Consumers did not worry; they simply bought goods and services elsewhere. Though quality is one element of competitiveness, it cannot cover defects in the other areas. The mark of any professional is the manner in which they correct mistakes. Most often, this means correcting misperceptions about company attitude rather

EDITORIALFEATURE

than the condition of goods. Quality is the sum of impressions made on the customer. The focus on quality has gone beyond the finished product and addresses all processes throughout the organization. Paying attention to quality can realize: • Lower operating costs • Premium pricing for preferred goods/services • Customer retention • Enhanced reputation • Access to global markets • Faster innovation • Higher sales • Higher return on investments In order to put a quality program into place, the following steps must be taken: • Study the activities of admired companies • Retain outside experts to tell you what needs to be done • Commission surveys that will provide comparisons between the realities and perceptions that are held

• Assemble an internal quality team along with an outside advisor, make sure that all major departments are represented, and pursue objectives per the written agenda • Set realistic timelines for putting recommendations into place • Set schedules for routine review of the process including surveys to assure that you are making adequate progress The challenge is to discover what mix of price and quality the customer wants and then deliver it. Slogans only create adversarial relationships. Once the system owns up to its shortcomings and responsibilities, then a true quality process will occur. Failure to read the “handwriting on the wall” will thwart company growth and, thus, the overall economy.

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

[ NOVEMBER 2014 ] www.SBTMagazine.net 19

EDITORIALFEATURE

How to Avoid Getting Taken

Advantage Of In Business By Aaron Kaplan

If you’re unsure if you’re a people pleaser and are giving away more than you should in your business, relenting when you don’t want to, or providing support to others when you’re unable to offer yourself support, pay attention to the following the next time you choose to say yes and go along with what others want, even if you don’t want to: • A knot in your stomach • A constriction in your throat • An indefinable, knowing anger • Feeling like a disappointment because everyone’s demands are more than you can possibly give • A sense of being unappreciated • Feeling hopeless, tired, and confused and never understanding what people want • Holding negative thoughts toward the person whom you allowed to cross your boundary

People often tell me about things they didn’t want to do but felt they had to do, such as: • Going along with whatever their client/customer wanted because it seemed far easier than saying no • Automatically agreeing with a coworker or customer in order to keep the connection and feel appreciated • Going out of their way to make the customer/client feel good – and if they don’t feel good, it must be the fault of the pleaser • Fulfilling the needs of employees and/or customers so that the pleaser will feel more important You may also feel that in order to get your needs met or stand up for your self, you have to get angry and tell people off. In the moment, it may feel like this is what you want and need to do (trust me I’ve been there many times); it is possible to draw a line, not give in, and keep your cool. You can tell the other person with kindness, humor, or with a metaphor that what he or she is doing doesn’t work for you. I’ve learned that it takes a jolt to wake us up to the reality that being a pleaser doesn’t necessarily endear us to others or guarantee loyalty. Start saying to yourself the following several times each and every day: “I deserve to take loving care of myself. When I do, I’m happier, make better choices, and have more energy to give to my priorities.” Eventually, you’ll start to believe it and believing it does not make you selfish or self-centered at all.

If you are having any of these feelings, I suggest that you seriously reflect on what boundary has been crossed. When you are in touch with how your personal boundaries work, it puts you in charge of how you are treated, how you feel, and what your appropriate reaction should be.

Aaron Kaplan, Founder/Director of the Kaplan Project LLC, can be reached by phone at 832-831-9451, by email at AKaplan@ thekaplanproject.com, or visit his website at www.kaplanprojectcoaching.com.

f you were raised to believe that it’s a virtue to always think of others first before taking care of your own needs you are a people pleaser. Let’s face it, you might feel that it’s easier to go along with everyone else than to make waves. You don’t like confrontation; you’re bothered when people don’t like you; and you feel that it’s your job to meet everyone’s needs. There’s probably an expectation that you’ll receive something from others in return. Then you end up not receiving it because you most likely didn’t speak up and communicate what it was that you wanted. The reason for this is that you probably don’t even know what it is that you want because you have forgotten your own needs and are out of touch with yourself. If you’re wondering how I know this, it’s because I have always been a people pleaser myself, so it “takes one to know one.”

20 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

EDITORIALFEATURE

Your Next Step

How to Take the CHILL Out of Cold Calls (Part 3) By Jack Warkenthien, CEO of NextStep Solutions

hree strikes and you’re out is not just true in baseball. The reality of selling reminds us, if it takes more than three “touches” to convert a contact into a candidate (to purchase your product/service), you’re either wasting time with a nonqualified opportunity or you haven’t brought your “A” game to the field. It’s time for you to organize your “Century Club”. What is that? Simply, it’s your Top 100 (hence the century moniker) Candidates that you have qualified previously. Not a hundred and one, not ninety-eight, but exactly one hundred businesses or consumers that you will continue to engage until they become customers or they drop off your list.

itech after a 33 year career with them and got a gold watch. For better or worse, that career trajectory is highly unusual today. In fact, for a fifty-something professional, the average number of jobs now exceeds six positions, with three career changes along the way. That’s an average number. To populate your elite Century Club, go back to all your co-workers and remind them who you are and what you are now doing. You will be amazed at how many referrals you’ll receive, if they only knew what you do, and how many of them need you and your value!

Have you organized yours? There’s something pure about the number. There’s enough opportunities to exceed your quota/ budget for the year and yet not too many to overwhelm. And the greatest thing - none of them will be cold calls to you! How do you “target” your Century Club?

There’s no place like Home. This is the final source of candidates for your Club. If you sell locally, look first in the places where you live, work, eat, shop, and pray. I can’t begin to recount all the stories of sales professionals who literally drive by the most lucrative “honey holes” in search of the elusive customer. “Thar’s gold in them thar hills!” They’re much closer to home so don’t overlook the best candidates that are right under your “shovel”.

Target R.I.C.H.

The Rule of Fifteens

Your Century Club will be sourced from one of the four “rings” Your Century Club is full and you’re not entertaining any more on the target: Relationships, Interests, Careers, Home - or R.I.C.H. members. It’s time to go to work. This is where persistence is rewarded BIG TIME. Introducing the Rule of Fifteens, the part Relationships are the bullseye. Identify the candidates where you where you should be excited which states, “If you find a way to already have a prior personal or business relationship. They will touch a candidate fifteen times or more, over time, there’s an include the subset that will most likely buy your solution or refer 80% chance that they’ll do business with you on some level.” someone who will. This core group will be the smallest in number but the lowest of the low-hanging fruit. On average, your group Why? Your conviction, passion, and perseverance will be very conhere will be in the range of a dozen or so, give or take. Love on vincing. And I’m not talking about a series of will you buy, will you buy, these businesses and give them your undivided attention. will you buy perfunctory questions. No. Meaningful touches are over time. Here’s an amazing stat for you: more than 50% of sales profesInterests are the category of candidates that you already share sionals give up after the first “No”. Can you believe it? To round out something in common or have a common interest. For instance, they the Rule of Fifteens, if you can find a way to ask for the order four may be a part of your networking group, members of your health club, times, you have a 20% chance of doing business; eight times, you have basket weaving class, or Rotary Club. You share a common interest a 40% chance they will become customers; twelve times, 60 percent and now it’s up to you to convert that relationship into a revenue will be revenue sources for you. Don’t be a statistic. stream. I love this group because you sneak up on them and they never see the sale coming! You should be seeking “circles” of people that From here, as you focus on your Top Hundred Targets, there’ll share a common passion or interest and do your best to get involved. be NO cold receptions. Your challenge will be to take them from Best way: volunteer for a leadership position. This category will likely cool, to warm, to hot, to Smokin’ Hot. This is where it gets interinclude two to four dozen candidates from which to choose. Now, esting for you. Next month, in our next part: Timing is everything your Century Club is about halfway to being “sold out”. and you’ll also learn to Zig while others Zag. May you have continued success on your journey. Careers are the next category. My father, 82 years young as I pen Warkenthien, CEO, NextStep Solutions, can be contacted by email at this article, came from the generation that birthed all of us “Baby Jack www.jwarkenthien@nextstep-solutions.com or call him at 832-344-6998. You can Boomers” decades ago. He retired from Illinois Bell and then Amer- also visit his [ NOVEMBER 2014 ] www.SBTMagazine.net 21

EDITORIALFEATURE

Getting Organized:

7 Filing Mistakes You May be Making By Holly Uverity CPO®, Office Organizers

iling isn’t important – until it is. Remember that you file so you can get something back and if it’s important enough for you to keep, it’s important enough for you to file timely – and appropriately. While filing systems vary from office to office, here are some basic rules that everyone can use to ensure that the filing and the retrieving is easy, stress-free, and quick. Take a look at these commons filing mistakes; are you making any of them?

Overstuffing Folders

An overstuffed folder means that the papers inside can be damaged, the file folder label may be covered by the contents, and the folder itself may be overwhelming. If the folder becomes too fat, thin it out by tossing what you don’t need or break it into smaller folders.

Filing Paper Clips, Rubber Bands, and/or Sticky Notes

Don’t use paper clips or rubber bands to keep papers together; paper clips can become detached from where they’re supposed to be and/ or attached to where they’re not supposed to be. Rubber bands are equally bad as they can degrade and can leave permanent damage on paper. Like paper clips, sticky notes can become unstuck and the information on the sticky notes can become lost. Use staples to keep papers in a folder together and if necessary, staple the sticky note to the paper.

Not Using a White Label

It’s okay to handwrite the file name on the file tab but be sure to use a white label; nothing beats seeing blue or black ink against a white label. It can be difficult to read a label if it’s written in a colored ink and is against any background other than white. Try labeling a few folders using white labels and labeling a few without and you’ll see the difference. 22 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Creating Too Many Categories

It’s always best starting with broad categories and subdividing as you go. Using broader categories in the beginning makes the filing process easier and faster; it’s better to have one folder with thirty pieces of paper in it than thirty folders with one piece of paper in them.

Using Too Many Colors

Color can be tricky – it’s a great organizational tool for some people and a nightmare for others. Using color is a choice. Don’t feel compelled to use it but if you do, choose your colors judiciously. Choose no more than six colors and pick the colors that have meaning for you. Regardless of the color of file you use, be sure to always use a white label on the folder so you can easily read it. Use color only on the folder and not on the label.

Not Creating an Index

Most offices do not have any type of filing index and as a consequence, no one knows which files they have or where they are. Having an index to your filing system is like having a map or using GPS – it can lead you directly to the file you’re looking for. An index doesn’t have to be anything super sophisticated; a Word or Excel document works just fine.

Not Labeling File Drawers or Cabinets

Take a look at the filing cabinet in your office; does it have a label? Chances are, it doesn’t. Labels are one of the most underutilized organizing tools yet one of the most effective. Even if you’re in a small office and you think you know what’s in that cabinet, take a few minutes and put a label on the outside; it will save you time and energy in the long run. Office Organizers, founded in 1993 by Holly Uverity, is The Entrepreneur’s Organizer. They work with business people to create solutions for their organizational challenges. You can contact them by phone at 281-655-5022 or visit them on the web at www.OfficeOrganizers.com. “Like” them on Facebook at www. fb.com/OfficeOrganizers.

EDITORIALFEATURE

Probabilities

and Possibilities By three-time Olympian, Ruben Gonzalez

finish my speeches by saying, “What are the chances that someone like me was going to make it to the Olympics? I wasn’t a great athlete, I didn’t get started until I was 21 years old, and to top it off, I live in hot and humid Houston and I chose to compete in the luge for Pete’s sake! What are the chances? - One in a million? - One in ten million? I probably had a better chance to win the lottery!” I was just an ordinary kid with an extraordinary dream. I wasn’t a big shot. I was just a little shot that kept on shooting. And that’s something you can do too. If you make a decision to become a little shot who keeps on shooting, the world is yours. Believe it or not, the secret to creating an extraordinary life is right in those words. Most people look at their dreams and start calculating the odds of them ever happening. They can tell you the probabilities and that number keeps them from even getting started. They don’t understand that the probability at any one time has nothing to do with success because if you don’t even get started, the probability of success is zero - zilch - nada. They don’t realize that they can change the probabilities. Every time you take action in the pursuit of your dream, you’re increasing the probabilities of reaching it. It’s all up to you. You have control over the probabilities. Once you buy into that, it’s easier to make a decision to take massive action. Understanding that makes it easier to commit to your dream. Once you commit to your dream, burn the bridges, and make a decision to do whatever it takes for as long as it takes, the probability of success increases dramatically. Why? Because 99% of the people will NEVER do whatever it takes! When I called the people in Lake Placid to ask for help in getting started in the luge, the guy on the phone laughed at me. He said I was way too old to get started. He said,“If you want to do it at your age and in only four years it will be brutal. Nine out of ten people quit!” When I heard that, I got excited. I got excited because I could see the opportunity. And I simply decided that quitting would not be an option for me. 24 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Focus on your dream, listen to your gut feeling, and follow your heart wholeheartedly. Once I made that decision, all I had to do was to outlast everyone else! The guy on the phone saw my probability as one out of ten. But I saw it as 100% (as long as I was willing to outlast everyone else). Four years and a few broken bones later, I was competing in the Olympics (it wasn’t quite that simple, but focusing on the possibility got me to do what I needed to do to become an Olympian). Stop focusing on the probabilities. Focus on the possibility. Ask yourself, “What is my dream? Is it a dream that takes my breath away? Is it something that excites me and gives meaning to my life?” And if it is, ask yourself, “If it is possible, then why not me?” Don’t focus on the probabilities. Focusing on the probabilities will kill your confidence. Once you lose your confidence, it’s easy to quit. And stop hanging around people that talk about being realistic. Realistic people are mediocre. They live lukewarm lives and NEVER do ANYTHING with their lives. Start hanging around winners. Hang around achievers. I have NEVER heard a real winner talk about being realistic. Realistic stinks! Think about three people you truly admire. I guarantee you that they did not get where they are by being realistic! Focus on your dream, listen to your gut feeling, and follow your heart wholeheartedly. Ask yourself,“Why not me? Why not now?” and, “What can I do right now to get me closer to my dream?” When you ask yourself the right questions, focus on the possibilities, and hang around like-minded people, your confidence will soar and you’ll be on the road to realizing your dream. Do that, and at the end of your life you will be able to look back and say, “I lived a magnificent life! Ruben Gonzalez is an award-winning keynote speaker and the author of the critically acclaimed book, “The Courage to Succeed.” His experiences as a three-time Olympian and as the owner of two businesses give him a unique perspective on how to conquer the corporate struggles of today. For his free 10-Part Success eCourse, visit www.StartWinningMore.com or contact him at 832-689-8282.

EDITORIALFEATURE

The 5 Vital Components

of a System By Howard Partridge

ver the last two months I shared why systems are critical to your business. This month, I want to introduce you to the five vital components of a system. If you understand and apply the following components, you can systematize just about anything. These five systems components have been proven to work for any type of business or organization.

1. The Mission

Your company’s mission is the unique experience you are delivering every day. For example, the mission of my service company is “to provide the most outstanding service experience ever”. The mission of my training company is “to help small business owners stop being a slave to their business”.

2. Policies

Policies are the guidelines that help us carry out the mission. Policies are to clarify expectations on conduct issues, dress code, etc. A good example of a set of policies is what would be in your Employee Handbook. Be sure that your policies complement your mission rather than compete with it. For instance, if your mission is to provide the most outstanding service experience ever, don’t make policies that are going to frustrate your clients.

3. Procedures

Procedures are “how” each task is done. Each item that is on a person’s job description should be written down step-bystep. This way, everyone in that position does it the same way insuring that the mission is carried out every time.

4. Organizational Chart

Owning your own business can be overwhelming because of the number of “hats” you have to wear. Someone not only has to do the technical work of the business but someone has to market, someone has to go on sales calls, someone has to do the bookkeeping, someone has to order supplies, someone has to fix the equipment, and the list goes on. If you are a larger company and you have people actually doing some of these things, you are most likely overwhelmed as you try to manage them and end up being involved in many things that you don’t want to be involved in (and probably shouldn’t be). 26 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

An organizational chart for most companies looks like this: No wonder you’re overwhelmed! You’re in every box! Although this picture reveals why you are overwhelmed (and it can be quite depressing), here’s the good news – once you understand the five areas of business and the three levels of leadership plus you can see the different parts of your business and begin to develop policies and procedures for each area and assign them to someone other than yourself (assuming they are the right person for the position, that you train them properly, and they have the right attitude), you’re on your way to a more predictable, profitable, turnkey operation!

These are the five areas of business you need to understand:

Leadership – everything you do to lead your company Marketing – everything you do to attract prospects to your business Sales – everything you do to convert prospects into paying customers Operations – everything you do to serve your customers, clients, patients, guests, or members Administration – everything you do to track your stats These are the three levels of leadership you need to understand:

Directing – planning your business, developing your vision of what it should look like and where you are going Managing – supervising what happens every day and making corrections and improvements and protecting the assets of the company Doing – someone has to implement the work in each area

5. Position Results Descriptions

Once you’ve determined what positions you are going to fulfill in the business, you need to fill in the other boxes. Position Descriptions or Job Descriptions is the next component. Position Descriptions outline each of the roles and the duties required to fulfill that position. Howard Partridge, President of Phenomenal Products, Inc., is the author of 7 Secrets of a Phenomenal L.I.F.E. and 5 Secrets of a Phenomenal Business. You can contact Howard by phone at 281-634-0404 or visit his website at www.HowardPartridge.com.

EDITORIALFEATURE

Faster Government-

Guaranteed Loans for Small Businesses By Bruce Hurta

or small businesses that are in the market for an SBA 7(a) government-guaranteed loan, processing the loan request and funding the loan proceeds has become a much quicker process. The U.S. Small Business Administration (SBA) continues to focus on ways for participating lenders to deliver small business loans with more ease, efficiency, and speed. In fact, the SBA loan underwriting process has evolved to its present state whereby it is more efficient than many banks’ conventional small business loan underwriting processes. By uniformly evaluating loan requests through the use of SBA forms and procedures, participating SBA lenders, such as banks and credit unions, are able to quickly and efficiently serve their small business loan requests on a consistent basis for each lender. Indeed, the federal government fiscal year that ended September 30, 2014 promises to be another vibrant year for SBA loan production throughout the United States. Of great importance, for the efficiency of this program, is the PLP (Preferred Lender Program) for SBA 7(a) lenders. With a minimum amount of time, satisfactory experience, and demonstrated proficiency with the SBA government-guaranteed loan program, an SBA lender may now earn the PLP designation so that they are given the authority by the U.S. Small Business Administration to approve SBA 7(a) loans on behalf of the SBA. This program has created a group of highly experienced and proficient SBA lenders who no longer must wait for a second set of SBA processing and approval before funding the loan. As long as the lender remains in good standing with the SBA and its PLP requirements, they can continue to process, close, and fund SBA loans using only their own authority. One can draw the conclusion that working with a PLP lender assures the borrower maximum expertise in working with the SBA loan program and the quickest processing time available.

Why is the SBA PLP program important to small business owners?

Probably the most important reason is that small 28 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

businesses are finding fewer and fewer community banks who specialize in small business lending. As the banks are bought and consolidated into larger organizations, the business lending platform evolves into serving middle market and public companies. The SBA government-guaranteed loan program has become the new loan of choice for many small business owners who could not find their usual community bank accommodation. Additionally, SBA loans have lower down payments, longer repayment terms, and easier qualifying criteria than conventional bank loans. The partial government guaranty on the loan allows the lender to accommodate more risk in their small business credit decisions. In Houston, the SBA District Office accommodates 32 counties in and around Houston. The Houston office, like every other District SBA Office, maintains a list of SBA Preferred Lenders in that district along with the number and dollar volume of loans they have funded. This list is a good resource for small businesses trying to identify the most active and qualified SBA lenders in their area. SBA loans can be used for any legitimate business expenditure including but not limited to: • small business real estate purchases • small business real estate new construction • consolidating existing business debts • business expansion, new equipment, or furnishings • business acquisitions • partner buyouts • working capital SBA 7(a) government-guaranteed loans are available up to $5 million per borrower. You can learn more about SBA lending and small business finance on Bruce’s blog at brucehurta.wordpress.com. For more information about SBA real estate loans for small businesses, contact Bruce Hurta, Business Lending Manager at Members Choice Credit Union at 281-384-2595 or by email at bhurta@mccu.com.

EDITORIALFEATURE

Seasonal Philanthropists —

What Gives?

By Aimee Woodall

t never fails. Each year as we fast-forward though the Butterball Ham commercials and dodge the Salvation Army Santas that sprinkle the entrance of our neighborhood Target, we are reminded that the season of giving has arrived.

As our lives get busier and busier, we tend to compartmentalize activities to certain times of the year. We flood the gym in droves in January with high hopes of establishing a healthier lifestyle. We plan vacations during the summer months because things are slower and the kids are out of school. We stop wearing white after Labor Day. And, as the end of the year rolls around, we soften our hearts and whip out our debit cards. But does giving need be sequestered to the final quarter of the year and what are the benefits of giving earlier in the year? According to networkforgood.org, charitable organizations receive 30 percent of their annual donations in the month of December alone. Twenty-two percent occurs in the last two days of the year. Talk about procrastination! Our giving is fleeting. Just as quickly as we get into the giving spirit, we leave it behind once the holidays are over. Why not make it part of your company culture in giving year round? Corporate giving helps to set the example for employees and creates a sustainable, evergreen impact on our community. An easy step to create a company culture of giving is to offer employees paid time off to volunteer throughout the year. Research from the University of Exeter Medical School in the UK found that, “Volunteering is associated with lower depression, increased well-being, and a 22-percent reduction in the risk of dying,” according to Dr. Sarah Konrath, a researcher at the University of Michigan. Konrath found in her own studies that there could be several reasons for this. In The Huffington Post, she explains that any activity is good activity. By getting out of the house (or workplace in our case), people are becoming more physically fit, and physically fit people handle stress better. Giving back to the community also has social benefits, Konrath found. Creating peer-to-peer connections through a common

According to networkforgood.org, charitable organizations receive 30 percent of their annual donations in the month of December alone. Twenty-two percent occurs in the last two days of the year. Talk about procrastination! goal releases hormones that help people better deal with stress and bond with others. Having happier, healthier, more socially connected employees is essential to creating a positive company culture. To further this commitment to giving, consider providing employer matching for charitable donations. Offering this benefit will increase the opportunity to attract socially conscious employees who value community and who will be loyal and dedicated to your company’s mission. Identifying your company as a community leader in annual giving sets an example for your employees, your clients, and vendors. Walking the talk year-round is the best way business owners can promote corporate social responsibility. A positive company culture takes time to create which is prolonged by shrinking your giving window to the last two months of the year.

Why should you wait?

Short answer: You shouldn’t! It takes energy and resources but investing in your mission will inspire others, both internally and externally, and that will create engagement. They’ll believe in what you’re doing and join in. So let go of your preconceived notions of what “giving back” is supposed to look like. There is no time frame. There are no stipulations. You can make an impact, all season long. Aimee Woodall is the owner of the Black Sheep Agency, a Houston-based creative agency specializing in non-traditional public relations, social media, and experiential marketing. Contact Amy by phone at 832-971-7725, by email at aimee@theblacksheepagency.com, or visit the website at www.theblacksheepagency.com. [ NOVEMBER 2014 ] www.SBTMagazine.net 29

EDITORIALFEATURE

Today is the Perfect

Day to Fail By N.D. Brown

e have all been carefully trained to not fail. Yet, we all know failing is the best way to learn. Many businesses are like the Pushmi-Pullyu creature from Doctor Doolittle fame. Pushmi-Pullyu is an example of multitasking. Facing in opposite directions, Doctor Doolittle’s creation tries to move forward but in order for a Pushmi-Pullyu to move forward one side has to move backward. In spite of what seemed like a good idea, the Pushmi-Pullyu fails. It does not move forward; it stands still. How many companies do that? Management tries to move in one direction while the rules they have established pull them in another. They fail and everything stops. Moss Hart, who was a highly successful American playwright and theater director, said he never learned anything from a hit. He learned from each flop and he was involved in many. Today, in spite of his many flops he is thought of as a huge success. We all know the “Sultan of Swat”, Babe Ruth, hit the baseball 34% of the times he stepped up to the plate. But how many remember that he also failed getting to his objective 66% of the time. Okay, a sports analogy, but it makes the point. Can your business grow if you fail 66% of the time? The answer is, probably yes. The answer is, maybe your business should fail even more! During my career, I’ve made thousands of new business pitches. My team works for weeks putting together a presentation designed to convince our sought after prospects we were the best choice to help them market what they were trying to sell. We spend hours doing research and even more hours just plain thinking. After all that effort, we consider ourselves fortunate if we’re selected 10% of the time! One out of six presentations might be successful. We know we’re going to fail 90% of the time and we hate to fail! Finally, we woke up and realized all of our competitors were doing exactly what we were doing. Seems incredible that even though we thought we were smart and we knew the odds were against us we got very excited every time we were asked to take that meager chance. We would file into a conference room and do pretty much what the people before us did and the people after us. Then one day we didn’t fail. We used the past failures to learn. 30 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

The point! Failure is a good word. Failing is a good thing. I disagree with Mr. Hart because I think we learn from every success as well as every failure but I agree with him that we learn more from the flops. After a win, we all celebrate or at least we should. But what do we do when we fail? What does your company do? I am betting it is not a moment for popping champagne corks. It should be. When I review employees, I want to know about their failures. I want to know what they learned. I am always amazed how often that question gets a blank look. Success takes care of itself; failure requires serious introspection. When I counsel clients on how to hire a marketing and/or advertising firm, I tell them to insist that the companies show them failed work, the work the agency wished they hadn’t done. Then ask them what they learned. They all want to show their best, most successful work but as a possible client you want to know how well they learn because they are going to make mistakes while working for you. How many teachers work hard to keep a student from getting an F? The answer is “too many”. DO NOT FAIL is what we are taught. Yet failure should be the most acceptable word in our vocabulary. You’ve probably heard the famous line, “Failure is not an option”, that was attributed to NASA Flight Director Gene Kranz. We all get the point made; when human life is at stake, no one wants to think about failure. But the men and women Kranz spoke to had many failures before coming up with the successful solution. Failure was an option. Smart companies understand failure HAS to be an option. Small businesses have to be even more willing to accept the lessons of failure because no small business has the time or depth to ignore those lessons. Make up a list of things you are worried might fail. Then start doing them…today! N.D. (Don) Brown is a Principal of Brownchild Ltd., Inc. located at 3754 Sunset Blvd., Houston, TX 77005. You can reach him by phone at 713-807-9000-O or 713-822-8370-C. Email him at don.brown@brownchild.com or visit his website at www.brownchild.com.

EDITORIALFEATURE

Business Networking

and Social Media By Gail Stolzenburg

ou don’t have a choice. If you want to effectively promote your business or your ideas, you MUST be involved with social media. With 1.3 billion people on Facebook, 343 million on Google, 300 million on LinkedIn, and 255 million on Twitter, can you afford to miss connecting with them? Last year, I read a great article in Forbes by John Hall on “Networking Rules You Never Break”. Would you agree with me that there is no difference between connecting with people through social media or face-to-face? The same rules must be followed: • Give and you shall receive – find ways to help people first (the Law of Reciprocity). • No upchucking, telling people how great your business, products, or you are. • Be interested rather than interesting – ask questions and listen. • Watch your language and your ethics – what you say could end up on Facebook. • Always be prepared for a post, email, phone call, or conversation. • It’s all about influence – develop relationships with influencers. • Keep your word – it is the most important attribute you have. Another good rule to follow in posting on social media sites is to provide five or six informational or educational posts to every one post about your specific business. It’s common for people to skip over posts when they think the person is just making another pitch. There are two things you should provide when you are connecting - curiosity and surprise. Read the new book “Start SuperNetworking” by Keith Schreiter and Tom “Big Al” Schreiter. Just like face-to-face rather than introducing yourself as a banker, use the “Do you know how?” approach you learned in previous articles. And always give people a gift (a surprise), something they were unprepared for. It may be a referral, an article, or a way to network effectively.

Another good rule to follow in posting on social media sites is to provide five or six informational or educational posts to every one post about your specific business. It’s common for people to skip over posts when they think the person is just making another pitch. Should you get personal? People do business with people rather than a brand or a company. They want to know about you, what kind of person you are, what your values are, and what you have in common. According to a study by CEB Marketing Leadership Council and Google, customers are 20% more likely to purchase when you use a personalized, emotional message. There is one major difference between social media and face-to-face and that is body language which we know provides a high percentage of connectivity. So, as soon as possible, consider converting your contacts to watching you on video, on Skype, on Google Hangouts, or get faceto-face. Would you like to learn the exact process I use in building a relationship through social media? Then be sure to read the next issue where we will discuss a Social Media Networking Campaign. Gail “The Connector” Stolzenburg can be contacted by phone at 281-493-1955, by email at Gail@GailStolzenburg.com, or visit his website at www.GailStolzenburg.com. [ NOVEMBER 2014 ] www.SBTMagazine.net 31

EDITORIALFEATURE

5 Key Ways to Increase Your Small Business Chances of Winning Government Contracts By Helen Callier, President of Bradlink, LLC

fter achieving success to a certain degree in the local and state government markets, it is a natural progression for many small businesses to then select the Federal Market as a growth opportunity. The Federal Market is the largest purchaser spending over $500 billion annually of goods and services where only one to two percent of all small businesses in the United States do business with. As your small business starts swimming in the Federal Market while continuing to grow on the local and state levels, know that there are key strategies required for success in winning contracts. To assist in landing work in the Federal Market and continuing to grow on in the local and state government markets, below are five ways to increase your small business’s chances of landing a contract:

1. Get a Mentor

Using a mentor is a proven method and game changer in helping many small businesses achieve success. Mentors can assist your small business in learning how to mitigate certain risks and obstacles ahead of time. This alone not only save costs but eliminates surprises and headaches as well. For the best experience, select a mentor that has been successful, especially in an area where your small business needs assistance and has similar business ethics.

2. Get Certified

Although certification is not required to do business or secure contracts with certain government agencies, certification is a strong strategy to increase your chances and position your small business to land government contracts. For example, on the Federal level, my technical services company received its Small Business Administration 8(a) Certification. The SBA’s 8(a) program provides mentoring, counseling, and access to sole-source or set aside contracts. Some other Federal Market Certifications include the Services Disabled Veteran-Owned Business (SDVOSB), small businesses located in Historically Underutilized Businesses Zones (HUBZones), and Women Owned Small Businesses (WOSB). Go to www.sba.gov for additional information.

3. Focus

The most successful small businesses in the government marketplace and especially in the Federal Market target two to three agencies that buy their particular products or services. To better 32 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

position your small business in achieving success, research several government agencies that could use your product or services and, once confirmed, begin your early game marketing efforts.

4. Market Your Small Business

Industry data shows that 3% of the marketplace is always buying. If you as the leader of your small business have decided to save costs by limiting your marketing budget then you run the risk of stunting the growth of your business. Many government agencies on the local, state, and federal level hold matchmaking events with agency small business managers and contracting officers. Participating in these events provides opportunities to introduce your small business’s offerings. Also, it gains the edge on those small businesses that have chosen not to attend such as event or do not understand the importance of positioning one’s firm through marketing activities. Go to www. osdbu.gov for upcoming Federal Matchmaking Events.

5. Identify Contracting Opportunities

Be proactive versus waiting passively for someone to call or email you regarding a contract opportunity. After selecting the few agencies that use your products or services, the next step is to sign up on their website to receive notifications about upcoming contracting opportunities and, most importantly, to review agencies’ fiscal year budgets and allocations for projects. Also, for Federal contracts, visit www.fbo.gov which lists all contracts out for bid and highlights information about future contracts via Sources Sought notifications. In closing, small businesses are the cornerstone of the United States economy creating approximately 65% of our nation’s jobs. When small businesses are successful in winning government contracts, the United States of America, your state, and community benefit. Stay tuned for my follow-up article next month about teaming to grow your small business through government contracts.

Helen Callier is President of Bradlink, LLC, a technical services firm. She is a radio show host, public speaker, and the best-selling author of “Your Money is in the Follow-up”. For more information, call her at 281-312-9981 or visit her website at www.yourmoneyisinthefollowup.com.

EDITORIALFEATURE

Be a Visionary

to the Core By Rick E. Norris, JD, CPA

hen I was 16, my girlfriend (and future wife) wanted an artist’s drawing table for her birthday. “Sure”, I said, “I’ll build one for you”. Despite her curious look, I sprang into action with my jigsaw and hammer to build a plywood structure on heavy-duty castor wheels (for mobility of course).

Two days later, her response to the rough draft was…well… hysterical laughter. After catching her breath, hands firmly holding her aching sides, she apologized and thought it was cute that I wanted to make her something. Still, it looked like an unfinished pulpit on wheels that had been made by a western missionary in the deepest part of Africa during the 1800s who only had tree sap as glue and sharp rocks as tools. The problem was that I had stepped out of my core competency and didn’t have a realistic vision of the end product. As a CPA business consulting firm, we find that small to medium-sized businesses often lack vision. They have not developed a strategic vision and times are spread out so far from their core competency that they end up doing many things poorly. Most small businesses don’t understand that they need a strategic plan. However, businesses of many sizes seem to misunderstand the nature of a strategic plan. They often confuse it with a business plan. But these are very different things. Oh sure, there could be components of a strategic plan in a business plan but the goals of each are not the same. A business plan is a management document. It usually is a five year projection of building a business. For example, let’s say a company creates a business plan to build a car. In this case, the business developer would secure the financing, set out a plan to procure all auto parts, and hire the labor to build the vehicle. The end result is an automobile. We now have an automobile but we still don’t know the car’s destination. Where are we going to drive the car? For that we need a map or a strategy. The strategy will guide us like a road map to prevent us from turning down dead end streets. Most businesses, however, just drive the car out of the garage and hope it doesn’t run into a ditch. They never strategically plan where to drive. 34 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Strategic plans have a number of steps, but what I want to emphasize here is only one step - the vision. Think of your vision as a human circulatory system. Using Walt Disney’s 1957 vision, his “heart” was the creative talent in the studio producing theatrical films. Now this was Walt Disney Studios’ core competency. Anything that his company did focused first on his “heart”. The second aspect of Walt Disney’s vision was his profit centers or “organs”. These profit centers were TV, merchandising, publications, comic strips, music, and, of course, theme parks. Mind you, these were not additional competencies but instead profit centers that operated with the “blood” provided from the motion picture division. But what connected these items? It was the “circulatory system” - Disney’s characters. Yes, Mickey, Donald, Pluto, and Goofy were among those joining not only the “heart” to the “organs” but the “organs” to the “circulatory system”. The “heart” created the movies that pumped the “blood” of the characters to the different “organs” like the theme parks, the music, the television shows, the merchandise, and the publications. If Disney were to focus on any one of the “organs”, his core competency would change and throw off the entire “circulatory system”. Small to medium-sized businesses can learn from this model when conducting and implementing their strategic plan. The stakeholders must accept their core competency and leverage it to breathe life into other profit centers that are not as central to what the company does. However, this is just one step in a strategic planning process that small businesses should undertake. I can imagine that Walt Disney did not build his own drawing table but he used one to draw the characters that became the life-blood of his company.

Rick Norris became a CPA in 1982 and in 1985 earned a JD from Southwestern University School of Law. In 1992, Rick founded the Rick E. Norris Accountancy Corporation. Rick is a member of the California CPA Society Entertainment Industry Conference Planning Committee and is also a board member of the L.A. Chapter of the Association for Strategic Planning. He speaks frequently at various events in the area of personal and business financial matters. You can contact Rick by phone at 310-216-7632, by email at rnorris@ricknorriscpa.com, or visit his website at www. ricknorriscpa.com.

EDITORIALFEATURE

Financial Astrology for

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

ARIES (March 21 - April 20)

SCORPIO (October 24 - November 22)

TAURUS (April 21 - May 21)

SAGITTARIUS (November 23 - December 21)

You will find that your joint resources are very tight this month due to the influences of Venus and the Sun. Use your creativity to assist your balance sheet with investors and partners in making them feel comfortable and trust you. The New Moon is found in your investment zone and temptations to spend on your investments or to spend in socializing will be very strong. Choose wisely.Think about your future income status.

GEMINI (May 22 - June 21)

Mars is creating frustration due to slow moving projects. Pluto is in your joint resources zone giving you an opportunity to get new support and business relationships. Do not spend more than your budget will allow.

CANCER (June 22 - July 22)

Jupiter enters into your income zone so take advantage of new opportunities. Create new business relationships that can help you in the future. Stop emptying your bank account and allow it to build.

LEO (July 23 - August 22)

Now is the time to seed for future income flow and be creative with your new plans. You have invested much in a comfortable, safe home. Make new plans to continue that comfort well into the future.

VIRGO (August 23 - September 23)

Mercury is in your problem-solving zone so take advantage of that and prepare for financial difficulties and unexpected situations in the near future. Use your intuition and creativity to create the value and worth you bring to any project. LIBRA (September 24 - October 23) Seek to see through your friends and find the ones that are real. The Sun is in your earnings zone and you will tend to party maybe too much. Create a new list of friends that you can count on as financial resources.

Your love life is soaking up too much of your earnings. Use your magnetic personality to contract negotiations, deal with sales, or ask for a raise. You now have people that will rally to your side to support your moneymaking endeavors. Do not insist on conducting risky business when reckless Mars is being influenced with a destructive Pluto in your income zone. Impulsive Uranus is in your gambling zone and you may lose your shirt.

CAPRICORN (December 22 - January 20)

Venus and the Sun make you want to impress others. Mercury is manipulative and will make you want to show-off. This can end many relationships for you that could be helpful in the future. Consider the feelings of others; this can hurt you financially in the near future.

AQUARIUS (January 21 - February 19)

Neptune is in your earning zone. Do not try to buy your friends. Remember, people can see through your false attempts to buy their companionship. Hold on to your funds or invest them instead.

PISCES (February 20 - March 20)

The New Moon will be in Venus and your colleagues will be incredibly supportive of your success, including any monetary windfalls that can occur. Uranus at the end of the month will slow your luck down. Be proud of your accomplishments, but be humble to avoid hurting the feelings of those who are not doing as well.

Christi Ruiz is an expert in spiritual and intuitive sciences. She uses these skills to assist with one’s success in real estate, business, and personal matters. In addition, Christi’s many years of experience working for banks and mortgage companies gives her an extra edge in understanding the world of finance. You can contact Christi by phone at 713-773-0333-O or at 281-904-2658-C. Her website is www.christisportals.com and her email addresses are christiruiz722@gmail.com and christiruizchristi@yahoo.com. [ NOVEMBER 2014 ] www.SBTMagazine.net 35

EDITORIALFEATURE

Speaking the

Unspeakable – Part 2 By Kim Sawyer

ast month, the article in Speaking the Unspeakable, Part 1 addressed difficult conversations as a general concept along with some key concepts and perspectives that set the stage for how to handle them in a good way. Situations involving difficult conversations usually involve pretty intense emotions and ones personal emotions tend to hijack their ability to think clearly. Part 2 will build on that foundation by providing a valuable practical model called “Clearing” that is a simple, powerful five step communication process to help a person keep their ears and mind open to taking in information and respond in the best possible way. Here is an example of a conversation one can use to deal with a conflict between you and someone else. Start by saying,“There is something going on with me that I really would like to clear up with you because it’s is getting in the way of me having the relationship with you that I would like to have. Are you willing to have this conversation?” With each step you will build the interaction a little safer and a little stronger to support the increasing level of intensity of the subsequent steps. The following are the five powerful steps you can follow in dealing with the conflict:

us make decisions to live. More neutral language might be, “What meanings am I attaching to that data? What are the stories I am telling myself about you, about me, and about this situation?”

• The way you interpret the data is what gives you those emotions. So here, you must state your relevant judgments as honestly and cleanly as you can about how you feel about the other person, about how you feel about yourself, and about how you feel about the situation.

Step 4 – Own Your Part • This part of the entire process is pivotal to a positive outcome. What is your contribution to this situation and what part of your reaction stems from things about yourself that have nothing to do with you in this present situation? All of what has been shared notwithstanding, you always play a part of every situation you are in.

Step 5 – Make Commitments and Requests for Change

• Now you must take a look at how things might be different going forward. What are your commitments for change, what are your requests for change, and what are the results • Share your emotions about what you are going to talk about. you desire? You want the listener to own what is true about them so start out speaking the truth about yourself. This way, you are opening them up to you a little bit allowing the start of • At this point, it is valuable to set a time to come back together personal connection to begin. again to talk about how it has been going from each of your perspectives. Did you do what you said you would? How has that been working for each of you and what’s next? Step Two – State the Data

Step One – Name the Emotions

• Now you want to share the bare facts about what was said or done at what place and time to make sure the two of you are on the same page. Quite a number of difficult conversations arise because people have different data so they are arguing about something that doesn’t exist as a real problem.

Step Three – Share the Judgments • As soon as most of us hear the word “judgment”, we automatically think that is a bad thing. In some cases that may be true but the fact is, we judge all the time whether it is done well or poorly, we can’t help it. It’s what defines us and helps 36 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

Perhaps you have a situation right now with someone in your life. I challenge you to have that conversation - to speak the unspeakable but in a good way using the Clearing Model and the 5-Step Communication Tool. What’s the risk of doing it that would be worse than the current state of affairs which might remain the same or worsen over time if left unresolved?

Based in Houston,Texas, Kim Sawyer is a highly respected executive coach, business facilitator, and professional speaker. To find out more about Kim’s firm, theWeathSource, visit his website at www.theWealthSource.com.

EDITORIALFEATURE

How to Avoid A Million Dollar

Hiring Mistake By Paul Marcus

n recent years, the number of negligent hiring lawsuits filed against employers has increased. These lawsuits are normally filed by a third party who is injured by your employee. Most claims are made charging that the company (you) did not do the proper due diligence of conducting a thorough background check before hiring the employee, and if a proper search had been done, the employee would not have been hired. By not performing a complete and comprehensive background check, you are leaving yourself and your business open to the following: • Unsafe business environment • Embezzlement and dishonesty • High employee turnover rate • Workplace violence • Negligent hiring lawsuits

The average cost to employers of a negligent hiring lawsuit is $1 million and can exceed $40 million. In addition, 79 percent of negligent hiring lawsuits are lost by the employers. Following the recommendations below will assist you in setting up an effective screening process. To run a complete and thorough background check you must do the following: 1. Validate the social security number. 2. Run a good alias multi-jurisdictional criminal check as a supplemental check. (Some sites will advertise these as a “National Check” but never run these as a stand-alone search. 3. Check every county the person has lived in for the past seven to ten years under all names. This check should be done onsite at the county seat of the jurisdiction. 4. Check the Federal Criminal Records Database. 5. Do an Employment and Education Check on the applicant. 6. If needed, run a Motor Vehicle Records Check. 7. Run a reference check on the applicant. Before the interviewing process starts, the company must create a job description clearly defining the essential function of the job. Having a clearly defined job description can provide legal protection for claims of discrimination or noncompliance with the ADA. Below are seven critical items that every application needs as suggested by the Safe Hiring Audit written by Mike Sankey and Les Rosen:

1. The application needs to clearly state that there will be a background check or a background check will be performed. 2. There should be the broadest possible language asking about convictions and pending criminal cases. 3. A statement which says that any misstatements or omission of material facts may result in discontinuing of the hiring process or termination of employment. 4. The form should clarify that a criminal conviction is not automatic grounds for rejection. 5. The form should indicate the applicant consents to a background check being done. 6. The application form must ask for all employment for the past 7-10 years. 7. The application form should ask for addresses for the past 7-10 years. It is also very important to ask the correct questions in the interviewing process. In the book, “The Safe Hiring Audit”, the authors suggest using behavior-based questions and open-ended questions in the interviewing process. Behavior-based interviewing is one of the newest and most effective methods for establishing if a person is a good fit for the job and organization. The following questions are questions that should be asked in every interview: 1. Do you have any concerns about a background check being done? 2. Do you have any concerns with us checking for criminal convictions? 3 When questioned, what will your previous employers say? 4. Will your past employers tell us that there were any issues with tardiness, meeting job requirements, etc? 5. Tell us about any unexplained gaps in your employment history. Using the correct application form, asking pertinent questions in relation to the position, and running a complete and thorough background check will help you hire the very best people.

Paul Marcus is a licensed Private Investigator, TX License Number A13506. He is the owner of Affordable Searches, LLC, a licensed Investigations Company in the state of Texas, License Number A17778. For more information, contact Paul by phone at 281-494-6691, by email at pjm@affordablesearches.com, or visit his website at www.AffordableSearches.com. [ NOVEMBER 2014 ] www.SBTMagazine.net 37

EDITORIALFEATURE

Time to Review your

Business Plan, It’s Year End By ALVIN E. TERRY

ow is the time to look back over the past 10 months of your business activity and analyze the findings that you have compiled. It’s time to see if your projected sales and expenses were anywhere close to the actual performance that you experienced. If you were diligent and followed your plan on a monthly basis with appropriate recordings, you should have been able to make the appropriate adjustments to keep your business on course. At the beginning of the year, if your business was a start-up, you should have been recording all of your start-up costs including required items such as: • Deposits • Equipment Purchases • Tenant Improvements or Building Purchases • Legal and Accounting Expenses • Advertising • Signage • Website Design and Hosting • Miscellaneous Purchases • A Safety Net “Contingency Fund” All of the money you invested (Owner’s Equity) coupled with other capital infusions you may have done, such as Investor Capital or a Bank Loan or Line of Credit, put your company in the position of doing business. If you are not a start-up, you have the previous year’s numbers to work from. Those numbers are now the benchmarks in which you will begin the New Year that are realistic because they have historical value. The focus now is to drive more revenue, realize exponential growth, hire more employees, and expand into more markets. All businesses go through the same business cycles at various times in various stages. “Cash Flow Management” has become the real focus because you are now in a growth mindset. If your company is in year two and you have survived the “shock and awe” of what it takes to meet some sort of weekly payroll and kept the doors open, now is the time to expand your sales staff by hopefully recruiting seasoned sales professionals that really know how to close the sale and get the order. Of course, this is based on the premise that you have a brick and mortar business 38 SMALL BUSINESS TODAY MAGAZINE [ NOVEMBER 2014 ]

and you need someone to get out and shake some hands and look at some eyeballs. This is the old-fashioned way of selling and still is the best way to establish relationships that will last. If you have an Internet based business, then you need to hire IT professionals that can help you achieve dominance in the social media arena whether it is B2B or B2C. Either way, you are going to hire someone to help achieve the growth in sales that you will need to compete in the marketplace. You will have to design several compensation packages that will appeal to the freshmen sales professionals and also to the seasoned pros. Your goal is to capture and retain the best talent that you can afford at this time. While you are working on the sales and marketing strategy, you will also have to focus on building your “Mid-Level Management Team”. This team of professionals will be composed primarily of individuals that have the following skill sets: • Operations • Sales • Accounting • Finance • Customer Service • Logistics • IT As the company grows, so will you. It’s inevitable. You must evolve, you have no choice. You are still the one with the original “Vision and Mission”. It’s natural that all businesses evolve whether small, medium, or large. It’s time for you to go back to school and learn the traits of leadership by taking specific courses, seminars, and workshops that will help you manage your company more effectively and efficiently. The decision of “letting go” and delegating is a very liberating act. If you go down the path of “I must keep control and micromanage everything”, it will definitely become a hindrance to exponential growth. Relax, stay focused, get a mentor, and move forward. I sincerely hope that this message will serve as an inspiration and education tool for you as a small business owner. Alvin E. Terry, MBA, President of Dynamic Business Builders can be contacted by email at alvin.terry@rocketmail.com or by cell at 713-392-9107.

»Continued From Page 12

How to Become and Remain a Good Leader

Leaders don’t need to impress their staff by talking over them or under them. This means when writing and talking, the communication should be in simple terms for better understanding of the information. Most believe the world reads, understands, and absorbs on an 8th grade level. Plain words and simple notes do not make the leader look uneducated but using larger words incorrectly certainly does make the leader look silly. “For whom much is given, much is expected”. This Biblical statement means different things to different people. JFK used it in his speeches as a guide to the American people for wealth sharing. A leader of a company who has great people working for them shows their thankfulness of the associates and team members by being a generous boss and leader. Generosity is a must for a happy work environment. Generosity does not mean only monetary generosity but also encompasses time, positive comments, help, training, and focused attention. “Walk the walk, talk the talk” is another mantra that holds true for leaders. A leader must look like a leader in dress, manners, and conversations. One may look awesomely professional but if the first few statements out of the leader’s mouth are disenchanting, the leader has lost credibility. First impressions are important but following up the first impression with a solid core of values, ethics, and honesty are the long-term expectations of someone in leadership. Be interested in the other person. Telling associates about your interests, family, trips, purchases, and promotions sends a message that you as the leader are self-centered and self-absorbed. Remember your team’s stories about their interests, their families, and their trips. Then always inquire about their current trip, family achievement, or interest that they had previously shared with you. The leader should always be leading the way with current information concerning the subject matter that binds the company, group, team, or associates together. This means that the leader is always learning and educating their self. Taking time away from the present tasks at hand to contemplate growth, direction, and current data are mandatory for informed approaches in leadership directions. When you think of people whom you emulate or admire, the true bottom line is they were probably “very nice”. Being a leader who has a steady temperament and is genuinely kind will be rewarded by associates who are loyal and dependable. Rita Santamaria is the owner of Champions School of Real Estate which was founded in 1983 and is a five time national award winning school. The Champions School of Professional Development was founded in 2012 and has grown in a short time to be a leading development venue for individuals and companies. For more information, visit their websites at www.ChampionsSchool.com or www.TheChampionsProfessional.com

ADVERTISER S INDEX NOVEMBER 2014 EDITION HOUSTON 25 .................................Affordable Searches, LLC 39 .................................Alvin Terry 2 .....................................AutoShopper.Biz 1......................................Champions School of Business Development 12....................................Champions School of Real Estate 23...................................Clinic 45 40..................................Facility Interiors, Inc 25...................................Gwen Juarez Photography 4......................................Houston Minority Supplier Development Council 27................................... Howard Partridge 17..................................... Main Street Chamber of Commerce 17.....................................Murrah & Killough, PLLC 33...................................Nerium 39..................................Prosperity Real Estate Group 25...................................Rush Med Pharmacy 11......................................Sales Nexus BACK .........................Small Business Today COVER Magazine Radio Show 19....................................Sunshine Personnel Solutions 23...................................The Bougainvilleas 17.....................................Virtual Intelligence Providers INSIDE ......................Westpark FRONT COVER Communications

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