January 2014 magazine final by Small Business Today Magazine

JANUARY 2014

D. REID MIDDLEBROOKS

APOLLO BBC / BLUE QUALITY SERVICES Volume 2 Issue 10

PUTTING A LOT OF ♥ IN ALL THEY DO

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SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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HAIRSTON AND ASSOCIATES INSURANCE 25 YEAR CELEBRATION Sharon Hairston King was born in Eden, North Carolina, and was the seventh of eight children in a family where her father owned Hairston & Sons Construction Company. From having her own hand-knitted crocheted blanket business in college to running Hairston & Associates today, Sharon has always possessed an entrepreneurial spirit. When asked who has been most responsible for her success, she credits her mom and her eldest sister, who first invited her to Houston for a summer visit. Sharon was hired as an intern with Shell Oil Company before enrolling in college the following fall. Sharon moved to Texas in 1982 and attended Prairie View A & M University where in 1984 she received the Miss Congeniality Award and in 1986 she received her BBA. After graduating from Prairie View A & M University, the spirited young woman started her career with Allstate Insurance. After realizing the need for an all-purpose insurance agency, she left to start her own insurance agency. Besides selling all types of insurance, Sharon prides herself on truly educating her clients and equipping them with information that make them repeat customers. Ms. Hairston-King is currently working on her Executive MBA, so that she can indoctrinate young female on the existing opportunities in the insurance industry. Ms. Hairston-King has been in the insurance business for over 25 years. She states, ‘We are insurance professionals with combined business experience and a common purpose to provide expert service to our clients. As a licensed and trained insurance agent, I am able to offer a variety of perspectives in which to analyze your personal and business needs. In all cases, we consider each client’s financial priorities and long term objectives as our first concern.” For more than a decade, Sharon Hairston -King, has called Houston her home while single handedly building Hairston & Associates Insurance Services Inc. Since 1991, the company has grown its clientele each year. Formerly positioned In Houston’s plush River Oaks community but now located on 249 and Gessner in Houston, Texas her boutique insurance agency provides standard and nonstandard insurance carriers at affordable rates. Hairston & Associates has been featured in many Houston publications and is one of the few minority and women owned insurance independent agencies in Texas to have an appointment with standard carriers like Travelers, AIG, and The Hartford. Because of the opportunities afforded to her after college, she realized the importance of an undergraduate degree and now does everything in her power to help others attend college. In recognition of her value, Hairston & Associates established the Hairston & Associates Scholarship Fund (HAS) for high school seniors who want to attend college. Because she realized that youth can be nurtured and matured with professional office skills, Sharon provided numerous internship opportunities to Lamar High School students. Besides contributing to Houston’s young adult work force, Hairston & Associates has also produced several insurance agents that have become licensed by the state of Texas and who are thereby ready to meet the insurance needs of the new millennium. Ms.Hairston-King, is an ambitious professional who is known throughout the Houston community for her zest for life, spiritual beliefs, and undying passion to give her clients the best insurance rates and service without sacrificing quality coverage. So if you ever see her laughing or grinning, please know that she is on a mission to become the world’s best independent insurance agent.

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SBT Houston Staff January 2014

FROM THE

Publisher STEVE LEVINE

ARE YOU READY TO “GROW” YOUR BUSINESS IN 2014? You must start with a “Growth Mindset.”

Happy New Year everyone! In December, we had the unique opportunity and privilege (along with HCC & Goldman Sachs 10,000 Small Businesses) to be one of the sponsors for their “4th Annual Small Business Summit” and hear some absolutely amazing presenters and panelists further empower aspiring entrepreneurs and small business owners. Most of you know what a “Huge Fan” we are of the HCC & Goldman Sachs 10,000 Small Businesses Program. Several of our past cover honorees have graduated from their program. Those cover honorees include Maria Rios, Kim Roxie, Jane Henry, and this month’s cover honoree, D. Reid Middlebrooks, Principal and CEO of Apollo BBC/BLUE Quality Services. I truly enjoyed one of the programs presented by Sandra Louvier, Director for the Center for Entrepreneurship at HCC, and found inspiration for this column in her program. I must tell you that I had been struggling with the right theme for this month’s column. There are just so many “A New Year with a New Start” ideas that I could have wrapped my column around. This issue was (quite literally) “ready to go to press” and I was still looking for something relevant and unique that I could share. Well, I found it in Sandra’s presentation and it now serves as the title of the column for this month! If you are ready to truly “grow” your business in 2014, you must start with a growth mindset and attitude. Sandra reminded us that “Intelligence and talent are not fixed and can be changed by self-direction.” So, forget your limitations in the areas of education, self-direction, and lack of opportunities. Please allow me to elaborate on one of Sandra’s points of a Growth Mindset and add one of my own. They are Education-Self-Education and Seeking Support through “Strategic Partnerships” and the advisors.

Education-Self-Education

We are “blessed” to be able to do business in a community with an incredible business climate like Houston, Texas. The entrepreneurial spirit is nurtured and can grow right here and right now. Education in entrepreneurship was first recognized and planted here at our own University of Houston by Mr. William Sherrill, one of our Publisher’s Advisory Board Members. Despite the negative resistance that he met early on, his program at U.H. has become the model and yardstick by which to measure others in over 4,000 campuses across the U.S. Lone Star College Systems (featured in an article in this issue) and is also an excellent place to find the subject matter that you need to empower you in your business.

Seek Support

I have shared with you several times in this column how important my Publisher’s Advisory Board is to me. It is a crucial part of my business model and has been an integral part of each of my publications in the past. With them, I can access expert information on a variety of subject matter. More importantly, they serve as my motivation to keep “raising the bar” on each issue and in everything we do. No man (or woman for that matter) is a success on their own. If you do not have strong people to advise you on growing your business in 2014, it might be time for you to enlist the services of those around you who believe in you and your mission and are available to you for consultation. Speaking of “support”, we are proud to shine the spotlight in this issue on two organizations that we are very proud to partner with. Each of these groups is there for you to support you success. The first is the Women Contractors Association and the other is the VIP-Lone Star College Alliance. SMALL BUSINESS TODAY Magazine is very proud to be a strategic partner to these organizations. With all of the great stuff in this issue, it is time to let you get started reviewing and (hopefully) putting it all to work! Good Reading, Good Sales, and Success to You! Steve Levine President & Executive Publisher

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Chairman John Cruise President/Executive Publisher Steve Levine Associate Publisher/Creative Director/Editor Barbara Davis-Levine Business Development/PR Sonia Guimbellot Aaron Kaplan Susan Repka Donna Rooney Stephen Zappala Art Director/Graphic Designer Malka G. Levy Photographer Gwen Juarez Contributing Writers Don Brown Barbara Davis Mila Golovine Lorraine Grubbs Bruce Hurta Jeff Jones Aaron Kaplan Mahlia Mian Syreeta Mitchell Hank Moore Amy Olivieri Mayor Annise Parker Rita Santamaria Alvin Terry Holly Uverity Jack Warkenthien Aimee Woodall Chief Advisor Hank Moore Publisher’s Advisory Board Shah Ardalan Cyndi Barnett Roger Burks Sonia Clayton Donna Cole John Cruise Dirk Cummins April Day Dr. John Demartini Maya Durnovo Kathie Edwards Leonard Faucher Mila Golovine Toni Harris David Holt Richard Huebner Jeffrey Jones Darryl King Craig Klein Wea Lee Bertrand McHenry Hank Moore Lisa M. Morton Mike Muhney Leisa Holland Nelson Mayor Annise Parker Maria Rios Susan Repka Grant Sadler Rita Santamaria Allen Shapiro William Sherrill Pam Terry Linda Toyota Jack Warkenthien Doug Winnie Aaron Young Phone: 832-460-2020 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today 5380 West 34th Street, Ste 230

Houston, TX 77092 See us on the web at www.SBTMagazine.net SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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magine coming from an environment where certain behaviors and poor choices were considered a normal part of your life. You have no role models from which to learn “right and wrong” from; no one to nurture your aspirations or instill confidence. Imagine all of this is happening during your pivotal, formidable teen years and even younger.

For more than 42 years, the dedicated team at Gulf Coast Trades Center in New Waverly, Texas has had one clear mission - To assist adjudicated or disadvantaged youth develop vocationally, academically, and socially so that they are capable in making positive contributions to society. The Center was chartered in 1971 by the State of Texas as a not-for-profit educational school. Tranquilly nestled in the Sam Houston National Forest is a 57 acre campus that includes a residential facility along with a charter and trade school. Since that time, the studies conducted and the many awards they have received have validated the quality and effectiveness of the comprehensive programs offered. Residential Supervisor Tina Cummings elaborated, “While we have had to make changes in order to adjust to the changing needs of the communities we serve, one thing remains constant - our desire to help at-risk teenagers recognize that they can break the cycle and become productive and successful adults who can go back and make a positive impact on the communities in which they live. This is the driving force to the work done by our gifted and selfless staff.” The GCTC team is passionate about the belief that disadvantaged and discouraged youth are resilient and that they possess inherent strengths that, once reclaimed, will lead to competency and success. “While our kids are most often guilty of committing a crime, we do not label our residents ‘criminals’ but rather victims of their circumstances. Some of our residents are victims of abuse, neglect, and even exploitation while others are exposed to drug dealing and gang activity at a very early age,” detailed Tina. Presently, the residents are referred through probation via the Texas Juvenile Justice Department and Texas Department of Family Protective Services. Ms. Cummings stated that the Center hopes to develop community partnerships in the future with those who share the same beliefs and passion.

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The centerpiece to all the efforts by the staff as they focus on helping these 15 to 18 year old boys and girls reclaim their inherent strengths is the “Strength Based Circle of Courage.” It is a model that highlights the five core needs necessary for an individual to be happy, content, and therefore successful. These needs are: safety, independence, mastery, belonging, and generosity. Everything that is structured at the Center is built on this model. With responsibility for coordinating activities on and off campus and close relationships with the residents, Tina’s reason for becoming part of this team is indicative of the rest of the staff. “My own personal experiences led me to the discovery of a passion for helping at-risk teenagers. I raised two sons as a single mom,” she shared. After her sons both joined different branches of the military at the same time, Tina found herself with an empty nest. “This job is an opportunity to do something significant with my life,” reflected Tina. The team at Gulf Coast Trades Center is most certainly doing something significant with their lives, but perhaps more importantly, is the significance they have in the lives of the youth they develop. To learn more about Gulf Coast Trades Center and how to become involved in the life changing activities taking place there, email them at gctc@gctcw.org, visit them online at www.gctc.us, or call them at 936-344-6677. The campus is located at 143 Forest Service Rd. 233, New Waverly, Texas 77358.

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“It’s That Time Again”

Engage Your Email Subscribers with Images

Gwen Juarez Photography

Committed to the Advancement of Women in Construction

D. REID MIDDLEBROOKS

WCA members, both Contractor and Associate Members, work together to make an impact in the Houston economy. WCA provides services and programs to members in all industries with a concentration in construction.

APOLLO BBC / BLUE QUALITY SERVICES PUTTING A LOT OF ♥ IN ALL THEY DO Volume 2 Issue 10

INSIDE

JANUARY 2014 EDITION I HOUSTON

Women Contractors Association

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IN THIS ISSUE Defining Moments

JANUARY 2014

SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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D. REID MIDDLEBROOKS

APOLLO BBC / BLUE QUALITY SERVICES

SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

PUTTING A LOT OF ♥ IN ALL THEY DO

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WOMEN CONTRACTORS ASSOCIATION COMMITTED TO THE ADVANCEMENT OF WOMEN IN CONSTRUCTION

Scaling 3 Customer Value Levels of Trust in Email Marketing

A Vision of Green for Houston

Partnerships – The Good, Bad & The Ugly – Part Two

Doing Business with Koreans

Developing Leaders Part Five: Coaching Case Study…Ego and the Leader

Ok Cupid. Let’s Get Down to Business

Determining the Right Kind of Tie-In Causes

The Role of Collateral for SBA Loans 23 End of the Year Legal Audits

The GCTC team is passionate about the belief that disadvantaged and discouraged youth are resilient and that they possess inherent strengths that, once reclaimed, will lead to competency and success. “While our kids are most often guilty of committing a crime, we do not label our residents ‘criminals’ but rather victims of their circumstances. Some of our residents are victims of abuse, neglect, and even exploitation while others are exposed to drug dealing and gang activity at a very early age,” detailed Tina.

How to Succeed In the World’s Oldest Profession

The Other Side

Getting Organized: 5 Steps to an Organized 2014

Disability Income Insurance: What Every Successful Person Needs to Know

Presently, the residents are referred through probation via the Texas Juvenile Justice Department and Texas Department of Family Protective Services. Ms. Cummings stated that the Center hopes to develop community partnerships in the future with those who share the same beliefs and passion.

SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

WOULD YOU OR YOUR COMPANY LIKE TO BE PROFILED IN OUR NEXT ISSUE? CALL STEVE LEVINE AT 832-419-2814

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GULF COAST TRADES CENTER

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

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D. REID MIDDLEBROOKS

APOLLO BBC / BLUE QUALITY SERVICES PUTTING A LOT OF ♥ IN ALL THEY DO

By Barbara R. Davis

hat do you get when two creative, independent thinking engineers who love buildings and the people building them join forces and start their own company?...Apollo BBC and Blue Quality Services, a unique company that works on commercial buildings from the outside in and from the inside out. They try to make them better, or when they fail, they try to figure out why it happened and how to fix them. That is the center of what they do. The inspiration of partners D. Reid Middlebrooks, a Mechanical Engineer and Gordon Shepperd, a Structural Engineer, the company’s motto is “We ♥ Buildings” because they truly love what they do and they do it with all of their heart. Putting their heart in all they do extends not only to the buildings they work on but to their clients and employees, as well. It is no wonder that Apollo BBC was named one of the “2013 Companies to Watch” by the Initiative for a Competitive Inner City. D. Reid Middlebrooks, Principal and CEO, grew up in Dallas, Texas and then attended college at the University of Texas in Austin where he graduated with a degree in Mechanical Engineering. After graduating, Reid went to work for Entex in Houston. While there, he realized that being a Natural Gas Engineer was not fulfilling; he wanted to do something where he could work more independently and design seemed to fit the bill. While searching for a job, Reid found a great one in Houston designing building construction mechanical systems, and that has been the area he has focused on ever since. Never satisfied working for someone else, Reid finally made the decision to open his own firm. After meeting Gordon Shepperd, Reid knew he had found the right business partner SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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who could complement his skills. Gordon was an engineer too, but instead of being a Mechanical Engineer like Reid, Gordon’s degree was in Structural Engineering. Reid elaborated, “Gordon was working on buildings from the outside in and I was working on buildings from the inside out. There was really no company in America doing that; that would partner in terms of failures. So we said, ‘Well hell, let’s do this ourselves’.” So, in January of 2005, Apollo BBC was incorporated. Starting out with no capital and no overhead, neither Reid nor Gordon took a salary their first year in business. Fortunately for them, they were able to rely on their wives who had jobs! Reid and Gordon marketed the good old-fashioned way, by pounding the pavement. There were times that they would eat two (business) lunches in the same day! They went to every networking event they could find. Reid recalled, “We joined societies and got on boards. We were out about four nights a week doing something. We were adding value, finding friends, and getting work. That’s how we did it.” When meeting potential clients, the first thing Reid would say was, “How can I help you?” Reid added, “We would give a lot away first because when you hire an expert, how do you know that they know what they’re talking about? You don’t know. So that helped to build our reputation even though that never ends.” Very ethically, Reid and Gordon did not pursue their previous firms’ clients so they had to work very hard in searching everywhere they could for new clients. “One of the hallmarks of our business is that we treat a lot of things differently than a lot of businesses that I’ve known and been associated with. We go out of our way to put energy into the system. Quite often, we actually help our competitors. That’s just how we’ve arranged our business,” expressed Reid. Based on their expertise, Apollo BBC provides expert consulting services for attorneys. One example of their very detailed work involved being an expert for the defense to help with a lawsuit involving the chilled water pipe at Minute Maid Park. Every square inch of miles worth of long chilled water pipe had to be evaluated. Everything had to be gone over and identified in minute detail including failures, bad construction, good construction, etc. “Very interesting work,” remarked Reid. Apollo BBC does a lot of historic preservation work that primarily involves structural work. Their main focus is always on the high performance of the building. They recently were hired to do some www.SBTMagazine.net

structural renovations by the architect who is working on the restoration of the Colorado County Courthouse in Columbus, Texas. Apollo has worked on several universities including the University of Houston, Rice University, and Texas State University. It is not uncommon for Apollo BBC to be hired by the builders or the designers of the buildings at the universities. They also have been hired directly by the universities. Part of the consulting Apollo BBC does involves Green Buildings. They do LEED (Leadership in Energy and Environmental Design) Green Building consulting and have completed over 3 million square feet of LEED Certified Green Buildings in Houston. Working for the designers of the buildings, they help them get the Green rating they desire. “We really enjoy Green Buildings because they must be high performance, and that’s what we’re all about,” exclaimed Reid! In fact, Reid’s fascination with them motivated him to be on the Board of Directors of the local USGBC (U.S. Green Building Council) and Gordon to later become the Director of the Board.

Gwen Juarez Photography

With Green Building, there is a rating system. There are points one can go for; the more points one gets, the higher the level. Apollo BBC helps the designers on the front end to figure out what

makes sense for them to pursue. There are lots of categories that the designers and builders can get points for, including: where the building is located, is there an infrastructure for people to commute to (such as local churches and banks), is it energy efficient, how is the indoor environment, are the materials they’re using sustainable materials. Not only does Apollo BBC help their clients choose the right strategy for achieving the Green Building Certification, they also make sure that it’s cost effective. Last but not least, they help their client document everything so that the submission of the Green Certification is a seamless process. “We started Apollo BBC to do expert consulting work for insurance companies and for attorneys but we kept being asked to go out on the construction site and make sure that the client was doing things right. That’s how Blue Quality Services came about. In their desire to clarify existing lines of services, Apollo BBC opened a new division in 2012; Blue Quality Services. Reid explained, “Do you want us to go out in the field regularly to look at things? That’s Blue Quality Services. Do you want us to look at your wall and do a technical analysis and see if condensation is going to be created inside of the wall? That’s Apollo BBC. The work Apollo BBC does is more hidden. The work Blue Quality Services does is a lot more visible.” Continued on page 40

Reid and his partner Gordon Shepperd work together to support their clients and grow their business. They have been working together since 2005.

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SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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EDITORIAL FEATURE

Defining Moments

THE BUSINESS OF REAL ESTATE

By Rita Santamaria

he definition of a Defining Moment is that point where the essential character of a person is revealed.

In every person’s life there are moments in time that literally stand still. Those moments can be brought forward by the instant recall in your brain. There are both negative and positive defining moments. Those events that entered your psyche or consciousness with an impact that changed your life direction are defining moments. There are times when the impact was so dramatic that it changed the core of who you are or your business direction. There are moments where those choices set you on a new path. Those choices may have determined who or what you have become.

that conference. It can be a career changing event. The person who has a serious illness and is counseled by their doctor to change their lives or the illness will get worse will generally have a defining moment. Turning away from bad habits could be the outcome of that defining moment. • Approach your defining moments straight on. • Prepare yourself for the change. • Approach your plan for instituting the change. • Define in writing how you will go about making the change.

Defining moments are not goals. Defining moments are the events that cause you to realize you need new direction and, therefore, new goals. Rita Santamaria is the owner of Champions School of Real Estate. She can be contacted at www.Championsschool.com or www. TheChampionsProfessional.com.

CHAMPIONS SCHOOL OF REAL ESTATE ®

Some people have specifically set out to establish a defining moment such as a time when you may have been very poor and in need. You might have made a promise to yourself that you will never be in need again. You can probably recall exactly where you were and what the day was like. There may be odors or smells that bring the instant recall to mind. I would also believe whatever commitment you made about whatever the issue, you have stuck to that promise to yourself.

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Managers have defining moments from time to time, whether they intended to or not. You believe people to be honest and have integrity. Then you discover an employee has violated that trust. Perhaps that trust was violated through a dishonest dealing or maybe out and out stealing took place. The manager is setting the direction for the business on a whole based on how they react to this moment of revelation.

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The employee who is involved in any conferencewhich has as the purpose a need for change will have a defining moment. A resolve of some type will be the outcome of SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

• Then enforce whatever you choose to do to make a change. Enforce means hold yourself to your personal commitment. Don’t make exceptions.

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West Campus

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www.ChampionsSchool.com Lone Star College Tomball Provider #0123

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EDITORIAL FEATURE

The Lone Star College - VIP Alliance a Unique Small Business Model in USA and in the World

As you walk into VIP’s office at Lone Star College –UP you will see a poster that reads: MOVING

YOUR COMPANY TO HOUSTON? WELCOME ABOARD. HERE, AT THE LSCS - VIP ALLIANCE, WE OFFER SHARED SERVICES AND SOLUTIONS THAT WILL HELP YOU MINIMIZE THE IMPACT OF YOUR OPERATIONAL RELOCATION AND REINSTALLATION BY 50%.

In 2012, Direct Energy Chief Executive, Chris Weston needed a new home for his company which provided electricity, natural gas and home energy services to 6 million residential and business customers across North America. The Toronto based firm considered as many as 15 cities for its new headquarters, but only one ever really had a chance. “Houston was the obvious answer in the end for us,” says Mr. Weston. While the rest of the country is struggling through one of the longest recessions in America’s history, Houston’s economy is gaining momentum. So, who is moving or expanding to Houston? • ExxonMobil www.exxonmobil.com office campus. On Track for 2014 move-in. The Energy giant shows off a massive and impressive 385-Acre facility where employees will start transitioning into one of North America’s largest development projects. • Expanding the two largest public companies in Houston, Phillips 66 (NYSE: PSX) and ConocoPhillips, also released their 2014 capital expenditure budgets this past week. Phillips 66 plans to boost spending by 40 percent to focus on growing its midstream and chemicals segments, and ConocoPhillips plans to focus much of its budgeted $16.7 billion on North American shale. www.SBTMagazine.net

Alfonso Ayala Photography Services

onia Clayton, President & CEO of Virtual Intelligence Providers, LLC (VIP), with official endorsement of the Lone Star College System, launched the Alliance. An innovative and revolutionary way to help expand or relocate corporations in Houston, by reducing cost and maximizing time and operational performance in areas such as: ERP Implementations (SAP & Oracle), Information Technology and Operations, Organizational Change Management, Marketing and Communications and End User Training while combining technical work force education and apprenticeship programs through Lone Star’s Energy and Manufacturing Institute. “The Alliance is the first Small-Business Brokerage Incubator Model in the United States where a minority woman-owned business, such as VIP, is the appointed leader and resides within an institution of higher learning. It has never been done before. The Alliance offers a wide variety of very unique IT/HR & OCM solutions, products and services targeting the Oil and Gas Industry and beyond. We strive to offer only those products and services that meet our highest internal standards of excellence, integrity and quality. Thousands upon thousands of new jobs and hundreds of corporations are expected to come to Houston in 2014. Lone Star College is bringing the world to Houston and Houston to the world and together with VIP, we are closing the gap between people and technology, accelerating performance, adaptability and the acceptance of change. We are providing our clients the best of both worlds in Education and Training, combining Lone Star’s leadership and state of the art facilities with VIP’s global reach across 5 continents, promoting innovation, creativity, affordability and effectiveness.” – Sonia Clayton. For information, please contact: info@vip-global.com or 713-560-5356.

– ABOUT VIP – Virtual Intelligence Providers LLC (VIP) is a purveyor of quality and ROI guaranteed solutions and services in Business Technology and IT Support since year 2001. Our strength resides not just in the specialized knowledge, maturity, poise and flexibility of our professional force, but rather in our permanent commitment to excellence, ethical behavior, flexibility and affordability of solutions offered. Our features make up a vast array of business fields, disciplines and areas of expertise, enough to satisfy the various technological expectations or necessities of small, medium or large size organizations: ERP Project Support/Management, Implementation Support, Change Communications, Business Technology Training, Employee Performance Improvement, Staff Augmentation, Curriculum Development, IT Application Development and Integration, Network Security, IT Project Management, DB Management, even Corporate Instructional Design and e-Learning Services. VIP, is thoroughly certified as a (Hispanic) minority, women-owned/operated, equal employment organization qualified to provide services at various levels, both for private and governmental organizations. Also, the firm is registered with the Houston Minority Supplier Development Council and with the Better Business Bureau.

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EDITORIAL FEATURE

“It’s That Time Again”

ENTREPRENEURS TOOL BOX

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

know that I am dating myself with my title heading. Growing up, I used to watch “Buffalo Bob Smith and Howdy Doody”, his trusted sidekick and marionette, talk about the topics and concerns of that day. For those youngsters who are reading this today, we are talking about the late 1950s and early 1960s. It may have been a variety of subjects, but the final message always ended with a positive message encouraging healthy mental development with being honest and positive in character. Hello January! We are back with you once again, starting over and reflecting back over the occurrences and influences that have altered our business strategies and forever changed our lives. It only seems appropriate that I once again touch on the bullet points that seem all too familiar to us all. This is small business which ultimately becomes big business if one can successfully navigate through the maze of: • Establishing new 12 months projections • Reviewing last year’s accomplishments and net revenue • Severing past relationships that were not productive to your bottom line • Comparing year end actuals vs. projections • Arranging, compiling, and collecting receipts for your CPA • Reviewing Contractual Agreements • Reviewing Banking Relationships, Investor Relationships, Equity Partner Relationships, Joint Venture Agreements • Past due accounts • Marketing Plans • Advertising Plans • Image Branding • IT adjustments • Social Media overhauls • Gearing up or gearing down • Embracing new prospects • Eliminating all activities that have proven to be non- productive • Reevaluating your current customer base SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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The list can go on depending upon your profession, your business model, your craft, your hobbies that have not become a business as of yet, your perceptions, and the realities that are associated with those perceptions. Stepping back and looking at the Economy over the last twelve months, we should be able to ascertain how it has affected our business’ performance. Most of us will have to go back to our drawing boards, review our individual business plans, and revise those plans based on the economic indicators of our local and global economies. Remember, most of the businesses in the World Economy are competing for the same dollars. If your business has not carved out that “special niche” which includes adding value above and beyond your competitors for the consumer, you are only operating in an average environment. Growth will never be realized to the level of your expectations or to your bottom line. Being in business as a “Small Business” can be very challenging. We should not be hoping and wishing that this idea just might work. By all means, compile your team of supportive professionals that can and will be professional, supportive, and possess the skills and capabilities to help you achieve your vision and your mission statement. There is a wealth of knowledge and resources with the writers in Small Business Today Magazine. Please reach out to those individuals for assistance, because they write from the sincerity of their hearts. I have read their articles and I know that they are willing and able to help the Small Business Entrepreneurs wherever they are. Once again, it has been a pleasure to write to you. Have a great New Year beginning.

Alvin E. Terry, MBA/Business Consultant for Dynamic Business Builders can be contacted by email at Alvin.Terry@rocketmail.com or by cell 713-392-9107.

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THE Organization Women-Owned Businesses rely on for Growth and Success.

Get certified and grow your business! Become a Certified Woman Business Enterprise (WBE) and make the most of your business potential. Women Business Owners can find the tools they need to take their business to a new level and reach their goals at the WBEA: • Double Revenue with Corporate Procurement • Exceptional Peer Support • Professional Networking • Executive Scholarship Programs

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SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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EDITORIAL FEATURE

Engage Your Email Subscribers with Images By: Amy Olivieri, Constant Contact Regional Development Director Amy Olivieri

ake a second to think about the latest breakout social media successes: Pinterest, Instagram, Tumblr, etc. What do these mediums have in common? They’re all highly visual. Images are compelling content that can communicate in a way that text alone cannot— and for this reason they are incredibly popular. Effective images have been helping marketers “speak” to their target audience for quite some time. That’s certainly the case when it comes to your email marketing.

4. An image really is worth 1,000 words. Even if you’re the most talented and experienced writer in the world, in the inbox, text alone can fall short when it comes to engaging your readers and sharing your message. Rather than pulling your hair out trying to come up with the perfect words, you can use an image to help demonstrate your point.

Still need further convincing? Here are a few reasonswhy you should start using images in your next email:

work and tell your organization’s story with images. Enhance an offer: Use an image to catch attention and inspire action. Promote your event: Use images to reflect the experience your event guest can expect. They’ll be more likely to go if they can visualize what the event will be like and picture themselves attending. Get recognized: Choose emails that your readers will easily recognize and associate with your brand. Show personality: Your business is unique! Use images to show why. Establish consistency: Sending out multiple emails around the same topic? Use the same image to visually tie these separate communications together. Be seasonal: People’s attitudes, interests, and needs change with the seasons. Make an immediate connection by using seasonal, current images.

1. Images catch attention, guaranteed. As a marketer, emails that fail to catch your readers’ attention could result in missed opportunities. Unfortunately, in today’s hyper-connected world, these missed opportunities are becoming all too common. Images give you the chance to stand out from the noise and make a more meaningful impression with the people who are receiving your emails. 2. Images are easy to find and create. With the prevalence of mobile devices and advancing photo technology, stunning marketing images have never been more accessible. You can store photos right on your phone, upload them to your desktop or laptop, or host them on social media sites like Facebook or Instagram right from the palm of your hand. 3. Images humanize your message. You want your emails to not only reflect your business, but to also reflect the experience customers will have when they walk through your door. An easy way to do that is by adding a photo of you or your staff. For readers who already know, like, and trust you, seeing a face they’re familiar with can help increase the amount of time they spend with each email. For those people who are new to your business, adding that small personal touch can be a bridge to a meaningful relationship. While they may not know you now, next time they’re at your store or in your office, they will. This means, they will be more likely to introduce themselves, ask questions, and hopefully share their feedback. SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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Ready to ramp up your use of images? Get started with these image ideas:

• Your business, in action: Show off your hard • •

• • •

•

Images bring emails to life. If you’re worried that your emails may be failing to make the type of impact you’ve been looking for, adding the right images to your emails could offer a simple solution to the problem.

Amy E. Olivieri is the Regional Development Director at Constant Contact. You can reach her by email at aolivieri@constantcontact.com, by phone at 713-401-2841, or visit her website at www.constantcontact.com/amy-olivieri www.SBTMagazine.net

EDITORIAL FEATURE

Scaling 3 Customer Value Levels of Trust in Email Marketing By Craig Klein, CEO of SalesNexus.com

usiness leaders are preaching the benefits of “content marketing” through email. Faced with the amazing statistical evidence of email marketing’s profitability, lots of companies are adapting to this new way of doing business. Unfortunately, many are broadcasting emails that do little to no good to improve the bottom-line profits for their business. Rather than recognizing their own shortcomings, they are more likely to feel as if they have been lied to and misdirected… again. For those who have found the “secret” to email marketing profitability, they will often scale three-tiers of customer values and trust to learn from each of them. You can take them one at a time, or implement your email marketing campaigns using the mistakes of others to guide your success.

Efficient Time Saver

Some CRM (Customer Relationship Manager) companies will paint a picture of blissful ease when you use their software. They promise that you will get your life back when you simply set up automated emails. Their description of email marketing sounds more like the difference between washing clothes by hand and using an automated washing machine. It is true that setting up your emails to be automatically triggered by actions of the consumer will save you a whole lot of time. However, the goal of saving your company time is a bit egocentric and renders very little trust from the buyer relationship. Most of your prospects and current customers can quickly detect a company-centric automated email. It looks very similar to the traditional advertising they would like to www.SBTMagazine.net

avoid. The primary message at this level is “Buy My Stuff”. It has very little value to the reader.

Buyer-Focused Messaging

At the second level of customer trust, email campaigns have changed the focus to the interests of the buyers. There are a number of ways to determine what a sales lead wants to hear from you. Sales Personas: When you know your best customers well, it becomes easier to target your message to sales prospects with similar interests. It is a great investment of time to search your CRM for clues. Ask your sales team and support staff about the customers you serve.

When your sales lead recognizes that you have nothing to gain directly from sharing this information, they will see you as a trusted advisor. From the description – called a persona – build your email campaign to meet the needs of the recipient. Recognize the struggle experienced in their lives and appeal to the emotions they feel. Make them feel as if you “get them” in a way that other companies don’t.

Widened Perspective

A counter-intuitive method for gaining customer trust is to include all of the market your buyer is considering in your communication to them. Comparison Charts: A tool for gaining this perspective is charts with indisputable facts about how your product or service compares to other options.

You must be careful to avoid your own prejudiced opinions in this type of email marketing. Although the sales lead knows you believe you have the best possible solution, if you cloud the information with opinion, it can quickly dissolve any trust you may have gained with them. Curated Content: One growing method for widening your company’s perspective is to curate content from a wide variety of resources. Seek out related content from other vendors and point to them in your articles and blog posts. When you find valuable content from a vendor that offers products or services to the same ideal client as your company, listen to what they are saying. It is usually best to actively seek out companies your client will want and need – but not direct competitors - for this method. When your sales lead recognizes that you have nothing to gain directly from sharing this information, they will see you as a trusted advisor. You will become a source of information rather than simply being viewed as someone wanting a piece of their pocketbook. When you have scaled all three levels of trusted customer value, customers become engaged and look forward to every single communication you send their way. Your buyers will look to your company first when they have a decision to make because they accept your expertise in your field and your authority in related fields.

Craig is the founder of SalesNexus. com, a leading provider of CRM, Email Marketing, and Lead Generation solutions to business 2 business sales teams.

SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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EDITORIAL FEATURE

A Vision of Green for Houston By Mayor Annise Parker

am thankful Houston voters have returned me to office for another two years. We have a lot to get done. Houston is the job creation capital of the nation and we are the place more people are moving to than anywhere else in the country. Jobs and a low cost-of-living are important, but we must also be able to offer a high quality of life if we are to keep Houston attractive for the future. One area I am so excited about and that we will see progress on during my last term in office is the Bayou Greenways 2020 initiative. This voter-approved program will create a continuous network of parks and hike-a-bike trails along our bayous. The effort received a big boost recently when Rich and Nancy Kinder, through their family foundation, The Kinder Foundation, announced plans to donate $50 million to the nonprofit Houston Parks Board to help fund the project. Their donation is the largest in the history of Houston’s park system and one of the largest grants to a public greenspace in the United States. I love this project not only because of the impact it will have on our parks system, but also because it will complete the 100-yearold vision of city planner Arthur Comey and many like-minded leaders who saw the potential benefits of integrating Houston’s waterways into our recreational system. The Kinders have made a major gift to the citizens of Houston and I am thankful for their generosity and commitment to the future of our city. The seven year Bayou Greenways 2020 project will be funded through a public-private partnership. In November 2012, voters approved a bond referendum allowing the City of Houston to fund $100 million to complete the project. The Houston Parks Board has committed to raising a matching $115 million. More than $70 million has been raised in private donations from the Kinder Foundation, Houston Endowment Inc., The Wortham Foundation, Inc., The Fondren Foundation, the Brown Foundation, multiple federal agencies, and individual donors. The Houston Parks Board is managing the private fundraising, design, and construction. In addition, the organization will be SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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responsible for maintaining approximately 4,000 acres of existing and new parklands in the completed Bayou Greenways 2020 project. Project segments along the bayous will be announced in phases and will be complete by 2020 creating ample opportunities for neighborhoods and communities to connect and explore both the existing trails and the new ones to come. Overall, the project is projected to generate $70 million annually in benefits which includes $10 million in economic health benefits (enhanced property values and company talent relocation and retention); another $10 million in environmental health benefits (flood/runoff reduction and enhanced water quality); and, last but not least, $50 million in physical and mental health benefits (recreation use value). The creation of parkland, trails, and natural areas along our major bayous will help protect and preserve water quality, atural habitat, and native wildlife while at the same time promoting the overall health and welfare of the city. Once Bayou Greenways 2020 is complete, Houston will have the largest off-street shared use path system in the nation.

PROJECT SEGMENTS ALONG THE BAYOUS WILL BE COMPLETE BY 2020 Houstonians love their outdoor activities. While residents in other cities are cocooned indoors during the winter, we are able to enjoy running, cycling, golfing, and many other recreational options. This project will put six out of every ten Houstonians within a mile and a half of a bayou, park, or trail. That’s definitely something to boast about! I am thankful to Houston voters for being able to visualize the benefits this project offers. It will definitely help Houston retain its current position as the best place to live, work, and raise a family for generations to come. www.SBTMagazine.net

EDITORIAL FEATURE

Partnerships â&#x20AC;&#x201C;

The Good, Bad & The Ugly â&#x20AC;&#x201C; Part Two By Jeffrey D. Jones, ASA, CBA, CBI

wning and managing a business can be a real challenge. Dealing with partners or shareholders creates a whole set of additional challenges that can be beneficial or detrimental depending upon the structure of the partnership, the relationship of the partners, and the documentation specifying operational procedures, management responsibilities, and buy/sell provisions. Part One of this series discussed the benefits of having partners. This article will review some of the negative aspects of having partners.

do are utilized in conjunction with litigation involving partnership/ shareholder disputes. The problems include an unclear understanding as to management responsibilities, disagreement regarding operational procedures, and unmet personal expectations. Jeff Jones is President of Certified Appraisers, Inc. and Advanced Business Brokers, Inc. located at 10500 Northwest Freeway, Suite 200, Houston, TX 77092. You can contact him by phone at 713-401-9110 or by email at jdj@advancedbb.com.

TRIALS AND TRIBULATIONS As a sole owner, you have total control over business operations. Giving up a portion of this control to others can sometimes be traumatic. Change is always difficult. The benefits have to be very lucrative for people to want to change. I have had many discussions with business owners regarding acquisition of their business and/or offering a merger or partnership arrangement. Initially, I often get a positive response when we talk about the benefits we could obtain together; however, having to give up some degree of control over business operations and to accept some limitation on fees and profit splits often overrides the perceived benefits. While short sighted, the fear of change and the unknown often causes the death of a lot of deals. When all partners in a firm have an equal ownership interest, company benefits are usually equal and disputes over business operations can usually be resolved quickly. However, having both majority and minority partners in a firm can create some unique challenges. Minority partners often want the same benefits as the majority partners. Disputes can arise over salaries, company paid benefits, and company paid operating expenses such as advertising, clerical support, and lead distribution. Majority partners tend to think of the companyâ&#x20AC;&#x2122;s profitability and future growth, whereas minority partners tend to be more interested in their personal benefits first. As a business broker and business appraiser, I have had the unique opportunity to see many businesses with partners or shareholders. Partnership problems are a common reason for a business to be for sale. Many of the business appraisals that I www.SBTMagazine.net

SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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EDITORIAL FEATURE

Doing Business with Koreans By Ludmila (Mila) Rusakova Golovine

n terms of economic success, it would be hard to find a country as impressive as South Korea. As the only country to have five consecutive decades of economic growth in excess of five percent, the prosperity of South Korea is a testament to both the peoples’ work ethics and the government’s sound economic policies. Although the business opportunities in South Korea are quite attractive, the differences between Korean and American culture can make one quite apprehensive about engaging in business there. Nevertheless, with proper effort and cultural study, one can be quite successful in Korean business. The most important aspect that distinguishes Korean culture from the American one is the concept of “face”. This concept can be loosely defined as respect. However, it is a little more than that. In Korean culture, “face” can be both given and lost. “Face” is given through compliments and praise. Conversely, it can be lost by disrupting harmony or if someone publicly points out a mistake that someone has made. You must always keep this concept in mind, for it is very common in American culture to bring up mistakes and think nothing of it. Put quite simply, anything negative will have an adverse effect on your business venture. Another aspect closely related to “face” is the idea of harmony in relationships. It is imperative to remember that in Korean business, maintaining a good relationship with each other means more than any business deal. This sentiment is also the reason why the initial meetings usually will not even concern the actual business deal. Koreans want to know the person with whom they are potentially doing business, which is why in the beginning they will want to find out more about their American counterparts than the potential business deal itself. SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

Punctuality on the part of guests is important to the Koreans. You should never be late for a meeting. Should you find yourself in a situation where it is unavoidable to be late, call your Korean counterpart immediately and explain. This should mitigate the situation. Nevertheless, do not be surprised if your Korean counterparts arrive late as they are not held to the same standard of punctuality as foreigners. When meeting with the Koreans, it is imperative to recognize that they are from a formalistic culture. Therefore, proper etiquette is very important. In most cases, your counterpart will still give a small bow when meeting you. You should reciprocate in kind with the same length and depth of bow. A handshake will most probably follow. Please make sure that your handshake is firm but not aggressive as that will be badly perceived. Business cards are just as important in Korean business as they are in most Asian countries. Unlike in American culture, they do more than just provide contact details. They are viewed as an extension of the person they represent. Therefore, you must treat the card with respect. Upon acceptance of the card, examine it carefully, read the person’s name and title out loud acknowledging the person’s status, and carefully place the card in your shirt pocket or preferably in a special card case. It is imperative that you not put the card in your pants pocket, for this is disrespectful and dismissive. When negotiating with Koreans it is of the utmost importance that you remain patient. As stated previously, Koreans like to do business with people that they know and trust and this can only occur over time. Any attempt to rush the negotiations will be greeted with mistrust as there is a common

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misconception among the Koreans that Americans are only interested in a quick profit. You will want to demonstrate to them that you are in the deal for the long-term. This will put their minds at ease and actually speed along the process. If business negotiations are proceeding well, your Korean counterparts will probably invite you out to dinner. Usually drinking will be involved. You must bear in mind that drinking is not viewed as negatively in Asian culture as in American culture. Typically the later you stay out will indicate how well the negotiations are going. Here again, this shows that the Koreans are comfortable with you and relationship building is progressing well. If you really want to demonstrate to your Korean hosts that you are sensitive to their culture, it would be a good idea at some point to toast to “the peaceful reunification of Korea.” This toast will signify that you are cognizant of the painful division of the Korean people since 1945, something that weighs heavily on the Korean psyche. It is true that there are many subtle differences between Korean and American culture. However, this should not discourage you from attempting to engage in business dealings with these dynamic people. With just a modicum of study and cultural awareness, you can succeed in Korean business.

Ludmila (Mila) Rusakova Golovine, Founder, CEO, and President of MasterWord Services, Inc. can be reached by email at mgolovine@masterword.com, by phone at 281-589-0810, or visit her website at www.masterword.com. www.SBTMagazine.net

EDITORIAL FEATURE

Developing Leaders:

Part Five: Coaching Case Study…Ego and the Leader By Lorraine Grubbs

In last month’s article, I talked about a business scenario where I took the tools I introduced in earlier articles and applied them in a real-world coaching assignment. John, the newly appointed Chief Pilot for a small aviation company, was lacking basic leadership skills and his boss had retained me to teach him how to be an effective leader. During our first meeting, John strutted in, cocky and arrogant, and proceeded to let me know what he needed to do. In addition, he didn’t listen, take notes, or engage in any two way conversation. After giving him feedback that this was not a good start and he admitting that he needed help, we wiped the slate clean and started again. I gave John the Myers-Briggs (MBTI) Personality Assessment. I also asked him for the names of 6 people that he worked with so we could distribute a 360-degree leadership assessment to them about John. So, here we were, a month later, with the results of John’s MBTI and the 360 in hand.

As we concluded the MBTI assessment review, he was excited to apply the information to the team. “Remember,” I told him, “learning about your preferences does not give you the right to judge others…it’s about appreciating the differences your followers have and adapting your style to theirs for better communication. Now, are you ready to review your 360 leadership effectiveness survey results?” “Sure,” he said, confident that his scores would be high and the comments his team gave him glowing.

People don’t care how much you know until they know how much you care!

“Good morning, John,” I stated, as he walked into the Starbucks and sat down. “Good morning!” John said, and then reached into his briefcase to take out a pad and pen. “How’s it going?” I asked. “Well, it’s going okay, I guess, but I have so much going on, I’m still trying to sort things out,” he replied. “That will continue to be the case,” I said, “for quite a while. You see, learning to be a good leader is a long road and the student just starting out has much to learn. So, are you ready to start?” “Sure,” he said. I placed the Myers-Briggs results in front of him and we went over each area. As an ENFJ, he would need to understand his own preferences and then learn to appreciate that other people’s preferences would be different…not wrong, but different. I explained that in order to be an effective leader, www.SBTMagazine.net

he first needed to know himself. The MBTI assessment was critical in helping him understand how he communicates, how he takes in information, how he makes decisions, and how he lives his lifestyle.

As I pulled out the report, it showed the areas he excelled in, but more so, it showed many more areas he needed to improve. “What?!” he said, “Look at that low score…Steve must have given me that low number! He’s never liked me and….” “John,” I gently interrupted, “this is not about who said what. Further, you have no idea who said what because these results are anonymous. I want you to consider the bigger picture. If you want to grow as a leader, you’ve got to accept that you are doing some things wrong. Many times what I find is that someone may do something without intending any harm, but because they don’t know any better, they come across the wrong way. Perception is reality. Whether you intended to come across as harsh, not caring, and arrogant is not the issue here. The reality is that they interpreted your actions as such and obviously, you need to learn to do things differently so you can dispel that perception.” “Wow,” said John, “this isn’t easy.” “No,” I said, “it’s not. You have just been ‘told’ by your team that you are not as effective as you thought. Now, what are you going to do about it?” And, humbled, John said “Ok, coach, I’m Continued ready…. on what do I page 43 need to do to change this?” “Well, I said, “let me give you a 17 3 couple ofBUSINESS suggestions. want you toJANUARY avoid going and SMALL TODAYI MAGAZINE 2014 back I PG

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EDITORIAL FEATURE

Ok Cupid. Let’s Get Down to Business By Aimee Woodall

ccording to a recent Pew Report, one in ten American adults has used an online dating service and a full 42% know someone using an online dating service. If you’ve been with your loved one for fewer than ten years, there’s a good chance you met them on the Internet. At this point, it’s fair to say that online dating works, and there’s a lot that businesses can learn from these websites– but it’s probably not what you think. Each time my team and I sign a new client, we hold a kick-off meeting. We use this time to get to know each other, talk about goals, and pose some fairly standard questions. Throughout the process, I start mentally pouring cement into the potholes of my new client’s current marketing efforts. Social media, events, and media outreach are just a few of my favorite pothole salves. But those are all tactics and they don’t represent a full-bodied strategy. We still need to figure out what we’re going to say, and to do that, we need an identity that will set the stage for every communication, event, and detail we put forward. It’s at this point that I turn to my enthusiastic, unsuspecting client and ask, “What exactly distinguishes your business from its competition?” Without skipping a beat, and almost without fail, my client will proudly reply, “Customer service. We have great customer service.” “Customer service” is the “nice” of the dating profile. No wonder it’s commonly served with a smile. Of course you want your company to have good customer service; just like you want anyone you’re dating to be nice. But that’s not enough. It can’t be “your thing.” It’s too broad and too hard to see at a glance. Customer service may keep people coming back, but it doesn’t get them in the door the first time. That’s where your brand’s identity comes in. If you are a successful online dater, it’s not because you’ve said you’re nice. People are attracted to each other because of their interests, ideals, senses of humor, and (we can safely admit it), their looks. In fact, if your online profile says nothing more than “I’m nice,” potential suitors probably assume you are boring (at best) and unattractive (at worst). The same rules apply for your business. Your brand should be just as robust and interesting as a Match.com profile. Anyone www.SBTMagazine.net

who comes into contact with your brand should be able to tell at a glance if you’ve got a future together. There should be a reaction - Rapid pupil dilation. - Sweaty palms. There should be chemistry. The next time I meet with this client, we’ll pretend we’re on a first date. I’ll ask them to personify their business by telling me, if their business were a human, where they would go on vacation, what they would order at a bar, what song they would pick on the jukebox (or Spotify), and how they would spend a rainy Sunday afternoon. These may seem like silly questions, but quality brand development merits this degree of detail. Our process informs every future brand decision. My team will then help develop backstories that really flesh out the character. These decisions take some thought, but at the end of it all, our client will have a fully-formed identity. Brands aren’t just about logos and colors – good brands create a visceral connection for the people they’re trying to reach. By becoming “human,” brands also become interesting. And that allows marketers like us to talk with customers instead of at them. Eventually, customers will start to see themselves in the brand and with the brand. They can decide if this company appeals to them, and the company can communicate to them with a genuine voice. In your spare time, spend five minutes sketching an imaginary Match.com profile for your business. Is this someone you’d want to get to know better or a total turnoff? It might be time to step up your profile – and your brand.

Aimee Woodall is the owner of The Black Sheep Agency, a Houston-based creative, non-traditional public relations and social media agency specializing in experiential marketing. You can contact Amy by phone at 832-971-7725 or by email at aimee@theblacksheepagency.com. Visit The Black Sheep Agency website at www.theblacksheepagency.com, follow them on Twitter @shearcreativity, and “like” them on Facebook at Facebook.com/theblacksheepagency.

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EDITORIAL FEATURE

Determining the Right Kind of Tie-In Causes

BIG PICTURE OF BUSINESS

By Hank Moore / Corporate Strategist™

usiness marries the community that it settles with. The community has to be given a reason to care for the business. Business owes its well-being and livelihood to its communities.

I recently stopped for lunch at a franchise restaurant. Nobody was at the register. A crew member told me to wait then later took my order. She started selling donations to some cause which I declined. When the regular cashier returned, I saw her peddling donation sales. People were blindly making donations without understanding what they supported. The sales of those promotional pieces caused the line to grow out of the restaurant door. People were just buying the promotion in order to get through the line. I support cause-related marketing and have advised many corporations on setting up such programs. However, peddling sales for some “foundation” that is named after your product and which supports only one cause is not appropriate. The store was littered with stickers. The process of selling the stickers made the waiting line longer. As a result, the iced tea had run out and nobody checked it. I went to their website, where franchise chains allege they want customer comments. I stated, “Having a foundation to support the community across the board is great. Who is to say that a sales promotion tied directly to your products is right? I say it is not, and I’m an expert on cause-related marketing. You people need to revise your service lines. Peddling the sales of stickers in a tackily littered store is inappropriate. I’m gravely concerned about this practice of badgering customers in support of some phantom charity; how this store does it is not right.” The franchise owner later called. He talked all over me in a defensive manner. His voice was high-pressure, probably the result of sales training classes. Rather than addressing my concerns, he rifled over them and questioned my ability to assess community relations. I asked if he had ever heard of “Thousand Points of Light”. He said no. I explained what it was and that I was an adviser to the President of the United States in fostering the program. Still, he questioned my interest in community relations. “We’re a franchise,” he admitted. “This was dictated to us by corporate. I’m sorry that you feel that way because we do SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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so much good. You’re invited to attend when we present the donation.” I replied, “No, I’m not going to be a prop in your photo opportunity for you to sell product.” I reminded him that it was customer donations that enabled the attention, not a corporate initiative for which they were taking the credit. He was not listening. He was simply rationalizing a corporate marketing initiative. So too was the corporate person who later called to argue with me for daring to state my opinions. Sadly, people like that don’t care or even get that re-thinking their strategy is an option. There are many wonderful ways where companies support the community: • Give percentages of sales to approved charities. • Offer certificates for product when people make legitimate donations. • Coupon book activities with schools. • Allow non-profit groups to present on their premises. • Advocate community causes in their advertising. • Sponsor noteworthy community events. • Recognize that executive time spent in the community is good for business. No company can cure community problems by itself. Each company has a business stake for doing its part. To prioritize which spheres or causes to serve, business should list and examine all of the community’s problems. Relate business responses to real and perceived wants/needs of the community. Set priorities. There can never be a restraint upon creativity. My advice to companies as they create charity tie-in, cause-related marketing and community relations activities includes: • Don’t say that you want customer input unless you are prepared to hear it. • Franchisers should not sell sure-fire promotions to build sales as part of the worth of the franchise. • Community support is not a one-cause (vested interest) matter. • If you seek customer comment, do not talk over the customer. www.SBTMagazine.net

EDITORIAL FEATURE

• Do not keep rationalizing flawed strategies to your customers. • Realize that customers’ opinions matter and that they have more buying choices than just your store. • If you purport to have a foundation, it cannot or should not be named directly for your product. • Do not run your “foundation” out of a corporate marketing department. Every community relations program has five steps: 1.

Learn what each community thinks about the company and, therefore, what information needs to be communicated to each public. Conduct focus groups. Maintain community files. Organize an ongoing feedback system.

2. Plan how to best reach each public...which avenues will be the most expedient. Professional strategic planning counsel performs an independent audit and guides the company through the process. Get as many ideas from qualified sources as possible. 3. Develop systems to execute the program, communicating at every step to public. All employees should have access to the plan, with a mechanism that allows them to contribute. If others understand what the company is doing, they will be part of it. 4. Evaluate how well each program and its messages were received. Continue fact-finding efforts, which will yield more good ideas for future projects. Document the findings. When planning, reach for feasible evaluation yardsticks.

5. Sharing professional and technical expertise. 6. Tutoring, counseling, and training. 7. Promotion of the community to outside constituencies. 8. Moving others toward action. Publicity and promotions should support community relations and not be the substitute or smokescreen for the process. Recognition is as desirable for the community as for the business. Good news shows progress and encourages others to participate. The well-rounded community relations program embodies all elements: accessibility of company officials to citizens, participation by the company in business and civic activities, public service promotions, special events, plant communications materials and open houses, grassroots constituency building, and good citizenry.

NO BUSINESS CAN OPERATE WITHOUT AFFECTING OR BEING AFFECTED BY ITS COMMUNITIES.

5. Interpret the results to management in terms that are easy to understand and support. Provide management with information that justifies their confidence. Companies should support off-duty involvement of employees in pro-bono capacities but not take unfair credit. Volunteers are essential to community relations. Companies must show tangible evidence of supporting the community. Create a formal volunteer guild, and allow employees the latitude and creativity to contribute to the common good. Celebrate and reward their efforts. Community relations should be action-oriented and should include one or more of these forms: 1. Creating something necessary that did not exist before. 2. Eliminating something that poses a problem. 3. Developing the means for self-determination.

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4. Including citizens who are in need.

Never stop evaluating. Facts, values, circumstances, and community composition are forever changing. The same community relations posture will not last forever. Use research and follow-up techniques to reassess the position, assure continuity, and move in a forward motion.

No business can operate without affecting or being affected by its communities. Business must behave like a guest in its communities...never failing to show or return courtesies. Community acceptance for one project does not mean that the job of community relations has been completed. Community relations is not “insurance” that can be bought overnight. It is tied to the bottom line and must be treated accordingly...with resources and expertise to do it effectively. It is a bond of trust that, if violated, will haunt the business. If steadily built, the trust can be exponentially parlayed into successful, long-term business relationships.

Hank Moore has advised 5,000+ client organizations, including 100 of the Fortune 500, public sector agencies, small businesses, and non-profit organizations. You can contact Hank Moore by phone at 713-668-0664, by email at hankmoore4218@sbcglobal.net, visit him on the web at www.hankmoore.com

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EDITORIAL FEATURE

The Role of Collateral for SBA Loans? By Bruce Hurta

like to tell small business owners that SBA loans offer them lower down payments, longer repayment terms, and easier qualifying criteria than conventional bank loans because I think that is a concise description of the government guaranteed SBA 7(a) loan program. Sometimes, conventional bank financing is not available to a small business due to the newness of the business, due to insufficient capital investment by the owner(s), due to unstable cash flow, or just because the bank does not have an appetite for long-term small business loans. There are other times, however, when the banker requires more collateral. Because the SBA loan program was designed to provide financing to small businesses which have a promising future but which do not have the resources a conventional bank lender may require, the following guidelines govern the SBA lender’s collateral requirements: • A loan request is not to be declined solely on the basis of inadequate collateral. In fact, one of the primary reasons lenders use the SBA-guaranteed program is for those Small Business Applicants that demonstrate repayment ability but lack adequate collateral to fully repay the loan if the loan • defaults. • SBA does not permit its guaranty to be used as a substitute for available collateral. SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business assets do not fully secure the loan, the lender must take available personal assets of the principals as collateral. • When loan proceeds will be used to purchase assets, a first security interest in those assets must be obtained. When loan proceeds will be used to refinance existing debt, the loan must be secured with at least the same security as the debt that is being refinanced. • SBA considers a loan as “fully secured” if the lender has taken security interests in all available assets with a combined “liquidation value” up to the loan amount. “Liquidation value” is the amount expected to be realized if the lender took possession after a loan default and sold the asset after conducting a reasonable search for a buyer and after deducting the costs of taking possession, preserving and marketing www.SBTMagazine.net

the asset, less the value of any existing liens. Further, if there is a collateral shortfall on the SBA-guaranteed loan and there is other available collateral, the lender will be required to take such collateral including personal assets of the principals. There are other details and exceptions to policy which an SBA lender can identify for the small business loan applicant when applying these guidelines. A borrower in Texas, for instance, cannot be required to pledge a lien on their personal residence due to homestead laws in the state which prevent business lenders from taking liens on personal homes. Texas lenders can, however, place liens on personally-owned investment real estate to shore up an insufficient collateral position for the SBA loan. We are also aware of other collateral requirement changes being instituted by SBA as of 1/1/14: • For loans of $25,000 or less, SBA lenders are not required to take collateral. • For loans over $25,000, up to and including $350,000, the lender must follow the collateral policies and procedures included in its credit policy for its non-SBA guaranteed loans, but at a minimum, the lender must obtain a lien on the applicant’s fixed assets to secure the loan. • For loans over $350,000, the SBA lender must collateralize the loan to the maximum extent possible up to the loan amount. If fixed assets do not fully secure the loan, the lender must take available equity in the personal real estate of the principals as collateral. • As you can see, the SBA lender must stay abreast of the latest SBA directives for the program; yet, the small business borrower can almost always count upon more liberal guidelines for loan approval and terms than with conventional bank financing.

For other articles on SBA lending, please see my blog at brucehurta. wordpress.com. For more information about SBA real estate loans for small businesses, please contact: Bruce Hurta, Business Lending Manager, Members Choice Credit Union. You can reach him at 281-754-1112 / 281-384-2595 cell or by email at bhurta@mccu.com. SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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Gwen Juarez Photography

Women Contractors Association

Committed to the Advancement of Women in Construction WCA members, both Contractor and Associate Members, work together to make an impact in the Houston economy. WCA provides services and programs to members in all industries with a concentration in construction.

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Gwen Juarez Photography

WCA provides services and programs to members in all industries with a concentration in construction.

Three of the founding members of WCA. The collective voices of the WCA founders prevented the City of Houston from removing the WBE goal from the construction contracts in the early 1990s. These ladies are still active within the organization and serve as advisers to the current Board of Directors.

By Barbara R. Davis

WCA

is a non-profit organization composed of women owners and decision-making executives within the construction industry. Their informative meetings provide networking opportunities and valuable information specific to the construction industry and its business owners. Committed to the advancement of women in construction, WCA has been a force to be reckoned with dealing with legislation advancing women business owners as valuable partners in the industry. WCA is committed to the advancement of women in the construction arena through education, political involvement, and networking. In 1993, a group of Houston women who owned construction companies were informed of the possibility that the city of Houston and the state of Texas were considering the elimination of goals for women as a minority from the Certification and Goal Program. Although these women owners were members of other associations, they recognized that there was no association that represented women owners in construction at that time. Women in construction had the same issues as others in construction, including banking, contracting, human resources, procurement, and bonding. Unfortunately, there was a misconception that they did not have these issues and that was the reasoning being used to justify the legislation eliminating the women. Those who were women owners in construction stood up and said, “Wait a minute! That’s not true!” So they began speaking out and voicing their opinion to politicians and legislators in an effort to stop their removal from the program. They began meeting weekly at a local restaurant and researched national associations as part of

their plan to establish their own association. Eventually, they made the decision to become a chapter of the Women Construction Owners and Executives (WCOE) and began holding organized meetings. Their first installation of officers was held on September 29, 1994 with Carole Keeton Rylander as the guest speaker and the Texas Department of Transportation (TxDOT) as a major sponsor. Officers installed were President Debra E. Daniel of D.E.I. Construction; Vice President - Patricia Oakes, the Barricade Lady; Secretary - C.J. Farley of C. J. Construction; and Treasurer - Frankie Snead of Red Rose Excavation, Inc. Also sworn in were Board Members Alicia Jimerson, of Jimerson Underground, Karen Patterson of El Dorado Paving, and Helen Hodges of SSCI Environmental. In 1996, the association separated from WCOE National and became Women Contractors Association (WCA) because the organization had grown greatly and required more local control. After hiring an executive director, Cheryl Knox, they began to work for change. The WCA met with other women associations and city officials, including Houston Mayor Bob Lanier, to work on salvaging and improving the program. They presented their problems and also provided solutions to those problems. Due to the efforts of the WCA and many other women’s associations, the decision was made to keep the women in the program. The best part of all was that seven out of their ten solutions were included in the Mayor’s new program!!! One of the problems addressed was that contracts were very slow to pay. That would

always put companies in jeopardy. Other goals included figuring better ways for women contractors to become general contractors and to be utilized by general contractors. They wanted to be seen as people who were viable, who did know how to do the work, who did the work, and who gave a good product in the end. All seven founders of WCA worked in areas of heavy construction. For example, Debra Daniel was an underground utility contractor; Patricia Oakes was in traffic control; Frankie Snead did heavy excavation; Helen Hodges did environmental; Alicia Jimerson did underground utilities; C.J. Farley did heavy duty construction; and Karen Patterson was a paving contractor! Participation in the goals allowed these companies to perform larger contracts and prove themselves and thus became more successful and valuable assets to the industry. The battle to protect the WBE (Women Business Enterprise) status is never-ending. When the program was dropped again by the city, it was the WCA who kept up the fight. When the various women’s associations stopped fighting, WCA remained strong and vigilant, even when they were threatened with repercussions by the construction industry in Texas. The threats were, in fact, real; and many of the women contractors were put out of business for fighting for women’s rights. 2012-2013 Vice President, Heather Kelly of Dominion Air & Heat, is one of those WCA members whose presence was regularly known as one of the army of women wearing hot pink hard hats and shirts who religiously attended Houston City Council meetings so that the

Committed to the Advancement of Women in Construction I

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The Women Contractors Association truly lives up to their commitment to the advancement of women in construction in all they do, including:

WCA 2014 Board of Directors and the WCA legendary pink hard hat. WCA Board of Directors recognizes new members at their monthly luncheons by presenting them with their own pink hard hat. council would rescind their decision that excluded women from minority status. In her address to City Council, Heather’s speech stated, “I am here today to represent the women contractors in the Houston area in support of the efforts of reinstating WBEs back into the goals for construction and specifically strengthening compliance of the Policies & Procedures of the OBO.

I have 3 Issues-

CAPACITY: There is an issue around capacity building and direct contract work. Put on your boots, dig in your heels, and back your programs. My business, Dominion, has been a mechanical contractor in the Houston market for 24 years. Our largest single project has been $1.7 million and our average project size has been $150,000. Since women have been removed from the program and certified as SBE, Hire Houston First, and Section 3, the largest project we have been awarded with the city is under $20,000. As a subcontractor, my capacity to grow is limited if not awarded more work as a prime. What we are asking is to unbundle contracts, where possible, to reduce the dollar amounts of contracts, making it possible for MWSBEs to grow their capacity. PAYMENT COMPLIANCE: As a sub, I am forced to kick up dust to collect funding. General Contractors receive funding on projects and 70% of the time the sub’s payment is held to finance the General Contractor’s business. This practice is abusive to the (subs) small businesses which are the lifeline of America. I have personally seen many small businesses in my industry have to drastically reduce the size of

their companies and staff or, in some cases, even shut their doors because of delayed payment or non-payment. My company has faced these issues. The worst case took us 7 years to collect after legal action and still we received only 25% of what we were owed. This is a violation of the Texas Government Code, Section 2251, which has no teeth due to non-enforcement by owners. These financial burdens hinder our growth and capacity. We are specifically asking the City to revise their Policies & Procedures to require its contractors to pay subs within 10 days of the GC receiving the funds for the sub’s work and that it be enforced. If you would like me to expand about a specific example, please request additional time. GOAL COMPLIANCE: We would like to see this monitored more closely. The non-compliance of MWSBE contracts is so deep that I wear boots daily to walk through it. Large General Contractors have abused Dominion’s certifications by submitting us on their bids because we are woman-owned. Once they are awarded, they either don’t use us on the project or they try and negotiate our price down to the lowest denominator; so we have to back away from it. We as small businesses spend our time, energy, and resources to bid a project like everyone else and deserve to be awarded projects for the price submitted at bid time. What we are asking is for strict compliance on the city’s effort to support MWSBEs by same day notice in the form of a Letter of Intent. This is currently being done by other entities.” Heather Kelly, Dominion Air & Heat

Business Opportunities Their online member access allows them to view bid opportunities from prime contractors, subcontractors, and local entities on upcoming construction projects. Networking and Camaraderie WCA holds two special events and monthly luncheons throughout the year that provide a wonderful opportunity to interact with other business owners and women owned businesses in the industry. Resources Industry-related events are posted on the WCA website’s member section which allows members to participate in events that provide valuable information for them personally and for their business. The WCA also participates in local Construction Expos throughout the year. As a member, one has opportunities to participate in these construction expos at no cost by being a WCA booth volunteer. Legislative Updates WCA stays on top of legislative issues affecting the industry and women-owned businesses with their Governmental Affairs Committees. The goal is to keep members informed. Educational Programs WCA monthly luncheons are known for bringing quality and informative speakers to their members, providing them with valuable information specific to the construction industry and the small business owner. They also offer quarterly educational programs and/or trainings at little or no cost for members. Leadership Leadership provides continuity and life for the WCA members. They are leaders and visionaries in their businesses, communities, and within the Women Contractors Association. The members share the belief of communicating and reinforcing their direction in order to succeed in changing the future for the better. WCA believes it is necessary to be respectful to earn respect. They demand integrity and professionalism within themselves

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Professional & Personal Growth WCA believes in the adage, “When we grow personally and professionally, we build a stronger foundation for the Women Contractors Association and our respective companies to proceed into the future. We believe personal and professional growth builds self-confidence and self-esteem which, in turn, provides us the tools to gain respect and success.” WCA provides opportunities for members to learn about themselves and how to lead and manage their companies more effectively. Those who take advantage of the learning opportunities will then branch out to learn from others, inside and outside of the industry, and be able to achieve their goals. Financial Stability, Growth, & Responsibility WCA encourages and educates members to manage their finances with responsibility and accountability. This means getting the most value for every dollar spent with the collective future of the WCA and its members in mind. WCA will effectively manage all contributions, costs, and budgets as well. Commitment WCA believes they will make a dramatic impact on women’s positions in the construction industry because the association follows through on both individual and group commitments. Members and those outside membership know that they can depend on the WCA organization.. Impact & Making a Difference The WCA is not satisfied with the status quo of acceptance of women within the construction industry. To make an impact, they are committed to promoting women in leadership roles, educating outsiders about the successful role of women in the industry, and creating strong role models, mentors, and leaders for future women to enter the construction arena.

The Women Contractors Association Committees make a big difference: LUNCHEON & EDUCATION COMMITTEE The Luncheon/Events Committee is responsible for planning quarterly educational events and monthly networking luncheons for the association. www.SBTMagazine.net

2012 Woman Business Owner of the Year, Vicky Reynolds. Vicky passed away in February 2013 after a long fight against Cancer. The Annual Hard Hats & Heels event includes a casino night, holiday music and silent auction. The event raises funds for the Houston Food Bank and to support the programs of WCA.

GOVERNMENTAL AFFAIRS COMMITTEE The Governmental Affairs Committee is responsible for meeting with local and regional government officials to influence the formation and implementation of policies that will support and advance women in the construction industry. The committee coordinates the exchange of information with government officials to execute disparity studies, analyze existing and proposed legislation and/or regulations to determine the impact on WCA members, and provide recommendations to the WCA Board of Directors as to what position the association should take on such matters. MEMBERSHIP COMMITTEE The Membership Committee develops and manages the association’s membership recruitment and retention programs. This committee is responsible for planning happy hour/member mixers for potential new members. FUNDRAISING COMMITTEE The Fundraising Committee supports WCA goals and efforts to raise annual corporate sponsorships for the association. OUTREACH & MARKETING COMMITTEE The Outreach & Marketing Committee is responsible for building platforms and processes that are self-perpetuating for continuity. In order to achieve this goal, the committee reviews their website consistently to provide ongoing feedback as an idea source, coordinate newsletter topics and content, and conduct outbound call campaigns in support of all WCA events. SPECIAL EVENTS COMMITTEE The Special Events Committee is responsible for planning WCA’s two biggest fundraisers throughout the year, “Boots & Bling” and the “Holiday Hard Hats & Heels.” STUDENT CHAPTER COMMITTEE The purpose of the Student Chapter Committee provides mentorship between Student Chapter members and WCA women business owners.

To find out how you can become a member, partner, or sponsor of this dynamic organization that is committed to the advancement of women in construction – Contact Executive Director, Susan Repka by phone at 713-807-9977, by email at director@womencontractors.org, or visit the WCA website at www.WomenContractors.org.

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Courtesy of Linda S Drummond

and those with whom they conduct business. Through their actions, WCA members provide a positive role model for others.

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EDITORIAL FEATURE

End of the Year Legal Audits By Maliha S. Mian, Attorney

s the end of the year approaches, small businesses must evaluate their policies and procedures governing various legalities. More often than not, small business owners do not realize the importance of running legal audits on their policies and procedures. The list below identifies critical internal audits to conduct for legal compliance.

Business I-9 Compliance: Please note that Employers need to retain Form I-9, Employment Eligibility Verification (“I-9”) for all applicable Employees. The I-9 has been updated this past year and now entails two (2) pages. A proper I-9 policy should be drafted and retained in company files. Most small businesses neglect I-9 compliance. It is im-

portant to be consistent in maintaining I-9 compliance and policies. Be sure to provide the Employee with the List of Acceptable Documents when requesting the Employee to complete the I-9. It is the Employer’s or their legal representative’s responsibility to carefully examine documents provided by the Employee to ensure the documents are unexpired and are acceptable documents before signing the Employer’s part of the I-9. Try to make a goal to schedule annually a date to evaluate all I-9 files to update or implement a system that reminds you to update the I-9 files for employees at time of re-hire and/or time of exit. The fines for not being I-9 compliant can take a toll on some small businesses. These fines can easily be avoided with proper planning.

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Contact@MianLawFirm.com Phone: 713.785.1313 • Fax: 713.785.1911 10998 S. Wilcrest Drive, Suite 198 • Houston, Texas 77099 www.MianLawFirm.com SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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E-Verify: In addition to maintaining proper I-9 files, if your company has used E-Verify in the past, use the end of the year to audit your company’s policies relating to E-Verify. One thing to check includes whether or not all new hires for your company have been processed through the E-Verify system. In addition, when completing an E-Verify case, be sure to only use documentation provided by the Employee when he/she completed the I-9. Corporate Documents: Whether your business is an LLC, Corporation, or a type of Partnership, take the time now to review your Operating Agreement, Articles of Incorporation/By-Laws, or Partnership Agreement and check for significant changes within the business (i.e. change in ownership: members, shareholders, and/or partners). Federal & State Labor Laws: Hopefully, your small business has policies and procedures in place to assist with federal and state labor laws. If not, take the time to draft and implement a set of policies and procedures. In the event, that your business has policies and procedure in place, check to see whether or not your business has been abiding by those policies in practice. In the event of litigation, customary practices not aligned with set policies can be detrimental to your case. Contracts: Ensure all existing contracts are being satisfied and not either in breach or near breach.

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We need YOU to be a Judge 2014 State Leadership Conference: Houston - March 5-8 HYATT REGENCY HOUSTON 1200 Louisiana Street

Business Professionals of America, a student leadership organization, is looking for business people to volunteer to judge at the 2014 state leadership conference. Judges assess student projects and presentations in a small setting. Your assistance in this endeavor allows our students to experience real world business practices. Event Schedule – Hyatt Regency Junior Ballroom – second floor Thursday Events: 1:00 p.m. – 5:00 p.m. – complimentary lunch orientation at 12:00 p.m. Friday AM Events: 8:00 a.m. – 12:00 p.m. – complimentary breakfast orientation at 7:00 a.m. Friday PM Events: 2:00 p.m. – 6:00 p.m. – complimentary lunch orientation at 1:00 p.m. Saturday Events: 8:00 a.m. – 12:00 p.m. – complimentary breakfast orientation at 7:00 a.m. For complete information and sign up opportunity, go to www.texasbpa.com and click on “Be a Judge?” link. Questions? Please contact Stefni Kueht – skueht.bpa@gmail.com or Robin Goff – robingoff@ymail.com.

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EDITORIAL FEATURE

Your Next Step

How to Succeed In the World’s Oldest Profession By Jack Warkenthien

his morning, I received my suggested daily talk radio stories, from Jeff Crilley, who publishes “The Rundown”. It’s a topics for talkies blog. As the former business talk show host on The BizRadio Network, you listened to my show every morning, on the way to work, “Where Wall Street Meets Main Street”. Jeff offers relevant, important, and entertaining topics for the day. This article was inspired by one such story: “SURVEY: Fewer Men Are Paying For Sex-Could the Oldest Profession Be Losing Its Customers?” Now before you think this is gonna be a titillating article, I’m sorry to disappoint. This is the wrong magazine for that. Instead, I want to take issue with the Los Angeles Times reporter, who contends—“Prostitution is the world’s oldest profession.” Sorry. They’re wrong. SALES IS THE WORLD’S OLDEST PROFESSION! Prostitution is but another form of a Sales call. Think about it. Who is the first Sales person in history? Eve! What was she pitching? Apples! Did she get the sale? Sadly, yes. Do I now have your attention? I hope so.

Do you also agree that everyone is in Sales? I hope so. Regardless of the title on your business card, YOU are in Sales. Whether it’s a product, service, opinion, cause, or any decision you seek, nothing happens until you sell something. And, in the world of business, nothing happens until someone sells something! Now, would you like to learn The 5-Part Code that virtually guarantees you can “up your game” and become more effective in Sales? Before I share the Code, the FOCUS will be on two types of readers: those who Sell SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

for a living--and those who don’t. That narrows down the field, right? Ready? 1. A Sale is a Relationship, Not a Transaction. The Sales Model has changed significantly in recent years. Selling today is collaborative or consultative, not confrontational. There is a misperception that Sales Professionals must be pushy. It is not necessary. Today, your job BEGINS with the Sale; it doesn’t end with one. In fact, the whole notion of closing is a misnomer. You are really “opening” a relationship, not “closing” a deal. In Relationship Selling, we emphasize serving first and selling second. You’re better off establishing rapport and making Friends. The sale usually follows.

SALES IS THE WORLD’S OLDEST PROFESSION! 2. People Don’t Care How Much You Know, Until They Know How Much You Care. Every day, we are meeting new and interesting people. If you really want someone to warm up to you, be interested and not interesting. You know the type. The interesting person can’t wait to tell you who they know, what they own, etc. If you get them to talk about their favorite subject--themselves--they’ll tell you

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everything you need to know about building the relationship. And, you’ll be considered “engaging” by the other party. Remember, the key to showing interest is asking strategic questions. 3. The Depth of your Convictions is More Important Than the Length of your Knowledge. You don’t have to know everything there is to know about your product, service, or company. In fact, by NOT knowing something, you have a chance to prove how responsive you are, and it gives you a reason for the next meeting. Since a Sale is an emotional decision, justified by logic, you always try to win their heart-and the mind will follow. Deep convictions always trump lengthy knowledge! 4. Have Fun and a Sense of Humor I believe it was Confucius that said, “If you enjoy what you do, you never have to work a day in your life”. Think about it. Bring fun to your office--and your approach to work. Chuck Coonradt, an author who I’ve shared the stage with, in his best-selling book, “The Game of Work”, opines that people pay to work harder at play than they work when they are paid. Hundreds of people pay over $100K to climb Mt. Everest--excluding the Sherpas. That sounds like hard work to me. While you’re at it, don’t take everything so seriously. Lighten up--and your working environment will as well. 5. Stand Out and Be Memorable The bar has been raised. There are tons of outstanding people and companies around today--in fact more than ever www.SBTMagazine.net

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before. Outstanding is no longer good enough. Now you must find ways to stand out and rise above the crowd. Learn to finish the following sentence: “We’re the ONLY ones that.........” Be like the Loretta Lynn song and find where you’re first, best, or different. When you do, your Customers will walk away from an engagement with you, saying to themselves, “I’d have to be an absolute fool to NOT buy from (insert your name)--regardless of price--because (insert your company name) is the ONLY one that.....” What’s YOUR Unique Value Proposition? Now that you acknowledge that you’re in Sales and Life’s A Sales Call (sounds like a GREAT name for a book), appoint yourself the Crusader for your firm. Consider yourself an emissary and spread the good word about your company and the value you deliver to your Clients. Give yourself a hand for being part of the World’s oldest profession! Best of luck on that Sales call known as life.

National National Association Association of of Women Women Business Business Owners Owners Houston Houston Chapter Chapter Connecting Connecting Women Women Who Who Mean Mean Business Business Why NAWBO? • Women own an estimated 10.6 million businesses in the United States • They employ 19.1 million workers (1 in 7) • Their businesses account for $2.5 trillion in sales • Women business owners are philanthropically active: seven in 10 volunteer at least once per month; 31% contribute $5,000 or more to charity annually; 15% give $10,000 or more. Shouldn’t you be involved in an organization that takes www.nawbohouston.org or call 713-487-8475

Jack Warkenthien, CEO, NextStep Solutions, can be contacted by email at jwarkenthien@nextstep-solutions.com or call him at 832-344-6998. You can also visit his website at www.nextstep-solutions.com.

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EDITORIAL FEATURE

The Other Side By N.D. Brown

ne of the fun things about being an entrepreneur and starting a small business is you get to break the rules. Of course, the other side of breaking rules is that you can easily fall into the trap of making your own rules which can lead you back to where you were before you became a rule breaker. Vicious cycle? Maybe. The trick is to always keep looking for the other side. All of us need to remember there is another side to everything.

flies, the tiny, weak-looking tailor lived through a series of adventures, each requiring him to look at the other side of giant problems for a winning solution. He knew he could strike seven with one blow. As a people, we tend to root for the underdog and when the underdogs are successful, it is invariably because they looked at another side. Fresh out of college, I was interviewing for a position I really wanted. Finally, the

When you find yourself looking at a problem from the usual and obvious side, it’s time to step back and look for the other side.

I am a fan of writers like Malcolm Gladwell who has written ‘change your thinking’ books like “The Tipping Point”, “Blink”, “Outliers”, and Steven D. Levitt and Stephen J. Dubner who have co-written “Freakonomics” and “Superfreakonomics”. I admire them because they look for and at the other sides. Gladwell’s latest book, “David and Goliath”, examines how the supposed weak can persevere because they don’t think themselves weak. They see another side. The fact that you are reading this magazine is proof you do not think of yourself as one of the ‘also rans’. You, and others like you, think yourselves strong and thus use your skills to overcome what conventional wisdom says you probably can’t. Conventional Wisdom is NOT the other side. Remember when you were a kid reading “The Valiant Little Tailor” who struck “Seven at one blow”? After smacking the seven

human resources person told me that my final interview would be with the CEO. As we rode up the elevator, he explained that I would be allowed no more than fifteen minutes. He warned me that the CEO would ask me where I would expect to be in five years if hired by the company, so I should be thinking about my answer. After a few idle moments of formally stiff chatter about my resume, I asked the CEO if I were to be hired where I might expect to be within five years. With a surprised look, the CEO told me that no one had ever asked him that question before. Of course not; all of the candidates had been prompted to answer the question. The other side was to ask it.

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The interview went from a stiff formal Q and A to an informal conversation that lasted for more than thirty minutes; and yes I got the job. Steve Jobs saw the other side. His original partner, Steve Wozniak, was a wizard at the technical stuff and Jobs was a wizard at making the inexplicable purchasable. Jobs realized beauty sold. If Apple could make things that looked good as well as worked good* then they could outsell the other clunky guys. It worked. (If you have not read STEVE JOBS by Walter Isaacson, do so. The book will not make you like Mr. Jobs, in fact it will probably do just the opposite, but you will admire many of the things he did. He knew how to take risks and how to fail.) Gordon Bethune used the other side. Bringing Continental Airlines from worst to first, he used very available data to reach an important goal. Mr. Bethune knew people do what is measured. Think about it - Why do we count strokes when we play golf? It is a good way to get outdoor exercise while enjoying a group of friends; but without the score we’d think, “What’s the point?!” So we agonize over our score, doing what is measured. Continental’s goal was to reverse its poor on-time arrival and departure schedules. It was merely one of the things passengers complained about but it was a critical reason why many business passengers flew more reliable carriers. Continued on page 45

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EDITORIAL FEATURE

Getting Organized: 5 Steps to an Organized 2014 By: Holly Uverity CPO®, Office Organizers Holly Uverity

If you’re like many people, getting organized will be one of your top resolutions for 2014. It doesn’t have to be a chore if you use the 5Ss to organize your office. The 5Ss is a proven method of organization and productivity that anyone can use in any environment and may be just the tool you need to get you back on your organizing track. Simply put, it’s a system of steps that not only get you organized but keep you organized. Using the 5Ss will help you stay focused; you’ll have a simple system to follow and by keeping your ultimate goal in mind, you’ll discover that it’s easier to make decisions daily.

Sort

Begin by doing a Sort. Sort out your necessary items from the unnecessary ones and only keep what you need, not what you want. It can be tough to make those decisions so feel free to do a preliminary sort and then go back and sort again. I can guarantee you that the process will get easier as you go back through your piles. How many pens do you really need? How many scratch pads? How many magazines?

Simplify

Once you’ve sorted out what you don’t need, next Simplify access. Put those things closest to you that you use the most. If you get stuck trying to figure out what goes where, use your kitchen as a model; most kitchens are well organized because the everyday dishes are the most accessible and the holiday dishes are further away. Simply take that principle and apply it your office. Are your current project files close to you? Do your desk drawers hold the work that you are currently doing - the work that is the most important to you? Or are they holding old, outdated files or even junk?

Sweep

The next step is to do a visual Sweep of your office. If you put your project files in your lower left hand desk drawer, visually sweeping your office each day will ensure that they end up back in the correct drawer at the end of the day. Do you take SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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the time each day to put your items back where they belong? Or do you leave them out because it’s too much trouble to put them away?

Standardize

Consistency is vital in staying organized so the next step is to Standardize your locations and procedures. In many ways, this is the hardest part of the process because it means you have to do things differently than you’ve done them before. If your client files have always been scattered and now you’re keeping them in a desk drawer, it can be difficult at first to remember where they are. There can be a great temptation to go back to your old, ingrained habits but it’s important that you stop and remember that your old habits didn’t work. How much simpler would your work life be if when you reached for a specific item, it was always there?

Self-Discipline

The last step is Self-Discipline and for many people, that is the challenge. I encourage you to think of it as only the daily routine practice of the previous steps. Practicing the self-discipline step maintains the momentum that you started. You already do certain things automatically and without thinking about them (daily and routinely); it’s just a matter of transferring those automated habits to your office and beginning a routine of work habits that sustains and supports you. What can you sort out every day? What can you simplify access to every day? What space can you visually sweep each day? What procedure or location of an item can you standardize?

Office Organizers is The Entrepreneur’s Organizer. Founded in 1993, they work with business people to create solutions to their organizational challenges. Contact them at 281.655.5022, www.OfficeOrganizers.com, or www.fb.com/OfficeOrganizers.

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EDITORIAL FEATURE

Disability Income Insurance: What Every Successful Person Needs to Know By Syreeta Mitchell

ave you ever engaged in any of the following forms of financial and insurance planning?

1. Purchasing life insurance 2. Estate planning 3. Designing an investment portfolio 4. Retirement planning 5. Setting up a savings plan

Of course you have, because you’re already aware of the need to protect your wealth. But despite all of your careful strategizing, you may have overlooked a very important piece of protection. None of these plans or products will protect the source of your wealth - your ability to earn an income. That’s why, in addition to all of the above, every successful person also needs the very best disability income (DI) insurance possible. No matter how young or careful you are, a disabling accident or illness can happen to you; a car accident…a serious fall or other mishap…or a heart attack, problem pregnancy, or other long and serious illness. Any of these situations could result in your inability to work for a significant period of time, during which you would not be drawing a paycheck. Few people, no matter how well off or careful, are fully prepared to rely solely on their savings to carry them through a prolonged recovery period. According to the U.S. Social Security Administration’s February 2013 Fact Sheet, 64% of wage earners believe they have a 2% or less chance of being disabled for 3 months or more during their working career. However, the Fact Sheet shows that the actual odds for a worker entering the workforce today are about 25%. Furthermore, it’s not safe to rely completely SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

on a group policy your employer, business, or practice may have purchased. While group DI is often relatively inexpensive and easy to administer, it can also fall short just when you need it most – leaving you in for some unpleasant surprises when it’s too late to correct the situation. Want to be better prepared? Consider the following: Learn to speak the lingo. The right disability income insurance (DI) policy can help you keep your household going if you suffer a long-term disability. But before you go shopping for a DI policy, you need to know what features to look for—and the language the insurance industry uses to describe them. The following terms are part of the language describing high-quality policies, and are what you should look for to get coverage you can count on:

• Non-Cancellable and Guaranteed

Renewable: To avoid the possibility of losing your coverage just when you need it most, choose a policy that’s noncancellable and guaranteed renewable to age 65. This will also guarantee premiums until age 65. With group or association coverage, you run the risk of being dropped and left unprotected at a time in your life when, due to your age or to a change in your health, it would be very difficult to qualify for coverage from another provider. The premiums for your entire classification can also be increased at any time.

• Conditionally renewable for life: Al-

though premiums may increase after age 65, your policy should be renewable for life, as long as you are at work full time.

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• Definition of “Total Disability”: The

core of any disability income policy is its definition of “Total Disability” which outlines what constitutes being “totally disabled” and therefore eligible for benefits. This definition is in every carrier’s policy; however, it does not always mean the same thing. For example, some policies pay benefits if you are unable to perform the duties of your own occupation, even if you are able to work successfully in another occupation, while others pay only if you cannot work at all.

• Residual Disability coverage: Through

a rider, a good individual DI policy can provide you with a benefit when you suffer a loss of income as a result of partial (residual) disability—even if you have never suffered a period of total disability. This kind of residual coverage is not available with most group plans.

• A choice of riders: Riders offer op-

tional additional coverage such as Future Increase Options and Cost of Living Adjustments (COLA).

Protect your business or practice, as well as yourself. If you own your own business or are a partner in a practice, you will also want to protect that business, as well as yourself. Special business DI policies, available from the same DI providers who offer high-quality individual coverage, offer your business protection while you recover from a disability. To help meet the expenses of running the office while you are disabled, consider a separate type of disability insurance coverage known as Overhead Expense (OE). Benefits reimburse your practice www.SBTMagazine.net

EDITORIAL FEATURE

for expenses such as rent for your office, electricity, heat, telephone, and utilities, as well as interest on business debts and lease payments on furniture and equipment. Overhead expense insurance specifically designed for professionals pays some additional costs not included in most overhead expense policies—including the salaries of employees who are not members of your profession and have no ownership interest in the business. While salaries for the support staff would be covered, for example, the salary of your fellow professionals would not. However, with a high-quality professional overhead policy, at least part of the salary of a professional temporary replacement for you – retained to fill in during your total disability – would be covered. In addition… If you are a partner in a firm or your business has more than one owner, you will also want to consider a policy known as a Disability Buy-Out (DBO). In much the same way that life insurance benefits can be set aside to fund a buy-out by the remaining partner (or partners) if one partner dies, DBO is designed to fund the healthy partners’ purchase of the disabled partner’s share of the business. With the proper agreement in place before disability occurs, hard feelings and the conflicts of interest that result from a partner’s disability can be avoided.

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You’ve already done so much to protect your financial wellbeing. Won’t you take the time today to consider protecting the source of your income? With the right DI coverage, your family’s economic security is safeguarded. Also, by purchasing the best disability income coverage you can find, you can be rest assured that you’ve added a vital component to your financial protection package.

Syreeta Mitchell is a licensed Financial Advisor at the Wealth Design Group. For a complimentary financial check-up, please email her at syreeta_mitchell@wealthdesigngroup.net or call her office at 214-734-9422. Disclosure: Registered Representative of Park Avenue Securities LLC (PAS), 3040 Post Oak Blvd., Suite 400 Houston, Texas 77056. Securities products and services are offered through PAS, a registered broker-dealer, 713-622-0192. Field representative, The Guardian Life Insurance Company of America (Guardian), New York, N.Y. PAS is an indirect, wholly owned subsidiary of Guardian. Wealth Design Group is not an affiliate or subsidiary of PAS or Guardian. PAS is a member FINRA, SIPC.

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Gwen Juarez Photography

assurance program far outweighs the expense a company would spend on undetected problems and losses. Both Reid and Gordon are always finding ways to give back to the community. Reid has volunteered for the National Historic Trust and went to New Orleans right after Hurricane Katrina to help preserve historic homes.

Reid and Gordon are very proud to work with a very talented staff at Apollo BBC.

Blue Quality Services is the division where they provide a third party quality assurance program to help builders tighten up the design and construction of their commercial buildings and avoid problems. Builders hire them to come out and do inspections on a variety of areas including assuring them that their windows will not leak and that their roofs work correctly. Recently, Blue Quality Services became an accredited laboratory with the American Architectural Manufacturers Association (AAMA) and have increased their testing credentials for windows and roofs. This is a very special designation, especially since there are only a few accredited laboratories in the state of Texas. This is how the two brands have delineated the types of services; one involves field personnel examining facts and the other one deals with experts giving opinions. For example: The big, multi-family, mixed-use development, West Ave, located on Kirby at Westheimer, was built by Gables which is one of Blue’s larger customers who hired them to come out and do site inspections, making sure the windows and walls didn’t leak. When a builder contacts Blue Quality Services, Blue goes out to the site and makes sure that everything has been installed correctly. That way, if there’s a problem, they can fix it early, which helps speed up construction. In addition, they can discuss with the designer or the owner alternate ideas to prevent problems. It is better to find out before the project has been built instead of having to do a warranty callback after the construction has been completed, or worse, end up with a lawsuit!

PUTTING A LOT OF ♥ IN ALL THEY DO

Continued from page 7

Reid is a graduate of the Goldman Sachs 10,000 Small Businesses Program, which was a great experience for him. Before the Program, Reid had been evaluating how his role and his partner Gordon’s role needed to change, but after the Program, he recognized that he needed to make their roles clear and specific. Even though Reid is still involved with some projects, now, his role mainly deals with the management of the business. Gordon’s role deals more with the management of the projects and supervising technical personnel. Apollo BBC hired their first employee in 2006. “We have the most creative, interesting group of people that I have ever worked with. We have a lot of fun. We play hard together but we also work hard together,” remarked Reid. They currently have a total of 15 full-time employees divided between their two Houston locations and Denver. Apollo BBC is in one Houston office and Blue Quality Services is in the other, a laboratory and training facility. Reid expressed, “From the beginning in 2005, our strategy was to start in Houston and then have smaller sized offices throughout the country. We would like to eventually expand to four or five more locations with about five to ten employees at each spot.” The company just completed its first expansion and now has an office in Denver. As usual, Reid is putting all of his heart and effort into working on ways to assure the success of their new satellite office. One of his innovative ideas is to always be available to help, no matter the distance, through video conferencing. The year of 2008 was their best year ever and then the economy changed. In spite of the change, they never had to lay anyone off, which says a lot about the heart of the company and why they continue to be a success in all that they do.

The bottom line is that Blue Quality Services provides a level of liability control for builders and designers. It is better to pay an independent third party to verify everything works or identify issues before they fail. If a builder or designer is able to communicate that there is a problem before construction has occurred, they have far less liability. The cost for their quality SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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Gwen Juarez Photography

“Leaks in walls, windows, and roofs are huge litigation sources. We often see issues with the design and construction in how the wall meets the roof. Better designers hire someone to do a review and that’s one of the purposes that we serve. We look at everything that will affect performance such as air conditioning, plumbing, and electrical. We are creating a process that alleviates failures,” conveyed Reid.

Blue Quality Services is the lab technician arm of Apollo BBC.

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Gwen Juarez Photography

Reid’s eclectic office reflects his many passions.

REID ’S TAKE-AWAY NOTES ON SUCCESS 1. Find time to take care of yourself. It’s a big lesson that I’ve learned. Spend time with your family; take a day off; disappear for an hour; go to a movie. If you don’t do it, you will stop being effective, your health will suffer, and you will burn out quickly. 2. Take a stand. If you don’t know what you stand for, how will anyone else? I stand for the success of everyone on my team, both personally and professionally. 3. Take great advice; but you know better! As an entrepreneur, you get a lot of advice from friends, family, colleagues, peers, and people you don’t like. It’s important to listen to them; but at the end of the day there aren’t many people who know better, who have gone out on a limb and worked for themselves. 4. Be a fence post. An important part of being a leader is being the part of the fence that can stand up on its own and that other parts of the fence can lean on. 5. Doing it once is not good enough. You can’t just do it once to be successful. You have to keep doing it over and over and over and over! 6. Don’t be afraid to spend lots of money; it comes back. Every investment that I’ve made in the busi-

ness has paid for itself over and over again. Overpaying for talent pays for itself. Buying expensive pieces of equipment pays for itself. 7. Learn how to hire better. It’s the biggest lesson I’ve learned in running a business. What I thought were good interview and hiring practices didn’t get the talent I wanted. We have completely changed the way we hire. We have actually adopted a behavior-based interview strategy. The goal of that is to learn the automatic behavior that people have. 8. Be an expert at everything. You need to know enough about everything involving your business, even if you’re outsourcing them, such as computers, printing, and marketing. This way, you’ll know when you’re being pulled in a direction that isn’t successful. 9. Seek great advice. You need to have mentors in your life. 10. Never tire of the fight. Once you get fatigued or you stop doing sales or you stop improving management, whatever you stop doing, that’s the start of the ending. You just have got to keep fighting. 11. You’ve got to be crazy because it’s long hours and very hard to do!

P U T T I N G A L O T O F ♥ I N A L L T H E Y D OI

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EDITORIAL FEATURE

The Essence of Effective Transformational Leadership By Aaron Kaplan

ames MacGregor Burns sparked a new era of study and practice of leadership with his groundbreaking book â&#x20AC;&#x153;Leadershipâ&#x20AC;?. His conceptualization of transactional and transforming leadership was revolutionary thinking about the role and purpose of leadership. Transactional leadership is when someone takes the initiative to contact others for the purpose of an exchange of valued things. Transformational leadership occurs when someone engages with others in such a way that leaders and followers raise one another to higher levels of motivation and morality. Authentic, transformational leadership impacts all organizations because they have goals that transcend their own selfinterests and work toward the common good of the followers. Research evidence from around the world suggests that transformational leadership provides a positive augmentation in leader performance beyond the effects of transactional leadership. Our society is in critical need of effective, transformational leadership from both individuals and organizations themselves. Any individual or organization, regardless of stature and size, has the capacity to exhibit transformational leadership. The following are what I consider to be 10 of the most important functions of transformational leadership:

1. Help interpret the meaning of

touching every part of our lives and organizations. Effective leadership interprets the events, provides understanding of their relevance, and identifies emerging threats and opportunities.

OUR SOCIETY IS IN CRITICAL NEED OF EFFECTIVE, TRANSFORMATIONAL LEADERSHIP FROM BOTH INDIVIDUALS AND ORGANIZATIONS THEMSELVES. 2. Create alignment on objectives

and strategies. Effective performance of a collective task requires considerable agreement about what to do and how to do it. Effective leaders build consensus about objectives, priorities, and strategies.

3. Build commitment and optimism.

Effective leadership increases enthusiasm for the work, commitment to task objectives, and confidence

events. This is important because the pace of change is accelerating and

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that the effort will succeed, even in the face of obstacles and setbacks.

4. Build mutual trust and coopera-

tion. Effective performance of a collective task requires cooperation and mutual trust, which are more likely to exist when people understand each other, appreciate diversity, and are able to confront and resolve differences in a constructive way. Effective leaders facilitate this dynamic.

5. Strengthen collective identity. The

effectiveness of a group or organization requires at least a moderate degree of collective identification. In this era of fluid teams, virtual organizations, and joint ventures, boundaries are often unclear and loyalties are divided. Effective leadership creates a unique identity for an organization.

6. Organize and coordinate activi-

ties. Successful performance of a complex task requires the capacity to coordinate many different but interrelated activities in a way that makes efficient use of people and resources.

7. Encourage and facilitate collec-

tive learning. In a highly competitive and turbulent environment, continuous learning and innovation are essential for the survival and prosperity of an organization. Members must collectively learn better

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EDITORIAL FEATURE

ways to work together towards common objectives. Effective leadership facilitates this process.

8. Obtain necessary resources and support. The survival and prosperity of an organization depends on favorable exchanges with external parties such as clients, customers, and funding agencies. Effective leadership promotes and defends the interests and reputation of their organization and assists in obtaining necessary resources and support for it.

9. Develop and empower people. The performance of a group or organization is likely to be better if competent members are actively involved in solving problems and making decisions. Relevant skills must be developed to prepare people for leadership roles, new responsibilities, and major change. Effective leadership requires empowering people to become change agents and leaders themselves.

10. Promote social justice and morality. Member satisfaction and commitment

are increased by a climate of fairness, compassion, and social responsibility. Maintaining such a climate requires active efforts to protect individual rights, encourage social responsibility, and oppose unethical practices. Effective leadership models moral behavior and then takes necessary actions to promote social justice.

These basic functions of effective leadership are of great value; however, these leadership functions comprise only part of the leadership that organizations need now and in the future as they meet the challenges of the 21st Century.

Aaron Kaplan, Founder/Director of The Kaplan Project, LLC can be contacted by phone at 832-831-9451, by email at AKaplan@thekaplanproject.com, or visit the website at www.thekaplanproject.com. call 800.558.1010 and use webcode 422189.

Continued from page 17 Developing Leaders: Part Five: Coaching Case Study…Ego and the Leader

pointing fingers and trying to find out who said what. That would be one of the worst things you could do. You need to build the trust of your team. I would start out by meeting with each one and letting them know that although you did not like what you saw in these results, you want to thank them for being honest in their assessment and here’s what you’re going to do to improve from this moment forward.” “Okay,” said John, “I’ll do it but should I meet with them as a team or on an individual basis?” “I would suggest you meet with them one on one,” I said. That way, if they want to give you more examples, they can, since it’s more of a private setting. And, since your scores in some critical areas like trust and support were pretty low, you don’t want them ganging up on you in a team meeting.” “Okay. It won’t be easy, but I’m willing to do this. I can’t believe my team thinks I am this ineffective. I need to change this right away. And I’ll start tomorrow,” said John. “Great!” I said. “If, in any of those meetings, something comes up that you need help with, call me. That’s what I’m here for. And, remember, John, the ONE THING that will get you in trouble is thinking that this is about you. It’s all about THEM, not you. There is no use in having a leader who cannot be a resource to his people. Good luck and I’ll talk to you in a couple of weeks.” Stay tuned for John’s continued journey in next month’s article.

Lorraine Grubbs is the president of Lessons in Loyalty. You can contact Lorraine at 281-813-0305 or by email at lorrainegrubbs@gmail.com www.lessonsinloyalty.com

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Continued from page 30 End of the Year Legal Audits

Immigration Public Inspection File: If your business staffs employees from abroad via the H-1B nonimmigrant process, take the time to ensure your Department of Labor required Public Inspection Files are properly maintained at the correct location and updated with any changes. Audit File: If your business petitions for an immigrant visa (i.e. the Green Card) on behalf of the foreign employee, it is critical to ensure the audit file is properly retained for five (5) years and includes all the necessary recruitment records.

Procurement Requirements Check: If your business has been awarded a government project, check to ensure that you are still in compliance with the requirements for the project. Are you maintaining the proper insurance, staffing the project with the correct type of employee, meeting the required deadlines, and providing the correct information according to the government’s required format? Have you missed a deadline or erred in some way? If so, do you know how many errors are permissible for the awarded project before the contract is considered breached?

WE BRING OUR LEVEL BEST TO EVERY REPRESENTATION.

Regulations Check: Government projects, especially at the federal level, involve several regulations. Keep in mind that each project has its own applicable regulations. It is important to stay compliant to the regulations.

Conclusion The end of the year is a great time to conduct legal audits for your business and prepare You for a successful new year. Remember to safeguard your business to realize your goals.

Maliha S. Mian, Attorney is with the Mian Law Firm P.L.L.C. located at 10998 S Wilcrest Drive, Suite 198, Houston, Texas 77099. You can reach her by email at Contact@MianLawFirm. com or visit the website at www.MianLawFirm.com.

Terry Bruner Law Office is a Houston-based law firm that helps small businesses, entrepreneurs and nonprofit corporations bring their creative ideas to market, protect their brands, and achieve sustainable results. We free you up to optimize outputs and focus on the blue sky possibilities of your ventures.

Protect your brand. I N T E L L E C T UA L P RO P E RT Y L AW COPYRIGHTS

TRADEMARKS

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Bring your creative ideas to market. BU S I N E S S L A W BUSINESS FORMATION & COMPLIANCE

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TERRY C. BRUNER, Principal & Founder 3730 Kirby Drive, Suite 1200 Houston, TX 77098

EMAIL WEB OFFICE DIRECT

tbruner@terrybrunerlaw.com terrybrunerlaw.com 713.834.1175 713.242.1661

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Continued from page 34 The Other Side

Continental published its own data but employees mistrusted anything management did or said. Mr. Bethune changed the rules. The easy thing he did was to give employees a financial incentive to improve arrivals and departures. Then he measured the statistics using Federal Aviation Authority data giving the record keeping to the US government. Management went from its untenable position as untrustworthy bad guys to the transparent and trustworthy good guys…on the other side.

Gigantic Heating Oil bought more and checked Excellent Weather. Hearing another affirmation, the CEO asked how the weather services could be so sure it would be a record setting winter. “Because Gigantic Heating Oil is buying oil like mad.” * Not correct grammar but like the much maligned advertising slogan, ‘Winston tastes good like a cigarette should’, it works.

When you find yourself looking at a problem from the usual and obvious side, it’s time to step back and look for the other side. We are deep into the information age and our tools gather and sort and analyze an ever increasing stream of data. We have now entered the realm of Big Data. So much data that the data has grown to a point that its size and speed requires the data to manage itself. Seriously, in spite of the volume, there is always another side. After a brutally cold winter, Gigantic Heating Oil’s CEO wanted to make sure the company had a good supply in case it happened again. After adding to the reserves but still not sure, the CEO called Good Weather to check their forecast. They said they predicted another severe winter. So the CEO added more. Still unsure, the staff called Best Weather and they also said it would be a very cold winter; perhaps setting records.

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N D Brown is a Principal of brownchild ltd inc, 3754 Sunset Houston TX 77005. You can reach him by phone at 713-807-9000 or cell 713-822-8370, by email at don.brown@brownchild.com, or visit the web at www.brownchild.com.

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– Advertiser’s Index – Aaron Kapan......................................................... 43

MCA....................................................................... 28

Advertising Design Systems.................................. 22

MJWJ Talk Radio................................................... 35

Business Professionals of Americ......................... 31

Main Street Chamber of Commerce MasterWord... 44

Body Restore......................................................... 33

Masterword Services............................................. 15

Champions School of Business Development........ 1

Mian Law Firm....................................................... 30

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

NAWBO................................................................. 33

Clunn Acoustical.................................................... 28

Nerium................................................................... 29

Copy Source.......................................................... 28

Navarro Insurance................................................. 29

Dominion Air & Heat.............................................. 29

Sales Nexus.......................................................... 18

Dosey Do............................................................... 48

Small Business Today Magazine Radio Show ............................................Back Cover

Gwen Juarez Photography.................................... 22 Hairston & Associates Insurance Services, Inc....... 2

Terry Bruner Law Firm........................................... 44

Holes, Inc.............................................................. 28

Texas Lone Star Mechanical................................. 29

Houston Minority Supplier Development Council................... Inside Back Cover

WBEA.....................................................................11

Jimerson Underground.......................................... 29

WDG...................................................................... 39

VIP......................................................................... 46

Westpark Communications...........Inside Front Cover SMALL BUSINESS TODAY MAGAZINE JANUARY 2014

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