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Apply for a full scholarship Apply today to Goldman Sachs 10,000 Small Businesses for the opportunity to grow your small business. Apply here: hccs.edu/10KSB
To be considered for the program, applicants must be the primary owner or co-owner of a business that generally meets the following criteria: • Business revenues between $150,000 and $4 million in the most recent fiscal year • At least four employees (including yourself) • Business has been in operation for at least two years • The potential and desire to grow and create jobs in the community Apply here: hccs.edu/10ksb
SMALL02172012.Dist783_GoldmanSachsSmBusAd.indd BUSINESS TODAY MAGAZINE APRIL1 2012 | PG 2
www.SBTMagazine.net 2/21/12 9:47 AM
SBT Houston Staff APRIL 2012
FROM THE
Publisher
STEVE LEVINE
Welcome to the "Premier Issue" of SMALL BUSINESS TODAY On behalf of our Leadership Team, Publisher’s Advisory Board, Editorial Advisory Board and staff, “Welcome” to the “Premier Issue” of Houston’s highest quality and (soon to be) “best read’ magazine that is specifically for and about Houston’s small business leaders. My name is Steve Levine and I have the distinct honor of being the Executive Publisher of this beautiful magazine. I can honestly say that in my 30+ years in publishing and advertising sales that I have launched many, many successful titles (i.e.: The Metro Houston Apartment Guide, Perfect Wedding Guides, The Greater Jacksonville Communities Guide, Real Estate Executive, Premier Agent Magazine, Profiles Magazine, etc) I have never been as excited about a title and its potential as this one…SMALL BUSINESS TODAY! The “centerpiece” in each issue of SMALL BUSINESS TODAY will be a cover story about a local business leader and how they developed their business into one of the top businesses in their industry. The cover honor will be determined by nomination by a Publisher’s Advisory Board member. The criteria for the cover nomination has as much to do with how respected that individual is the Houston business community, how much they give back to the community and/or their industry and how much of a role model they are for others. For this, our “Premier Issue” the Publisher’s Advisory Board selected Mr. Farouk Shami of Farouk Systems, Incorporated. Farouk Systems is “a company of hairdressers for hairdressers.” I had the opportunity to go one-on-one with Farouk and personally interview him for this issue. Farouk shared with me his insights in wealth, success and happiness. Thank you to our Publisher’s Advisory Board for the recommendation of Farouk for this issue. The magazine’s Publisher’s Advisory Board (on the right hand side of this page) represents some of most influential and powerful people in the Houston business community today. I am truly flattered that they have agreed to join John and me on this journey. Each has “invested” their name and reputation in our new magazine. Besides the terrific advice being shared in the cover story each month, you will be able to take advantage of some great mentoring from our Editorial Advisory Board as they share information that you need to know to “grow” your businesses through their columns and editorials. You will also have the opportunity to “meet” some incredible business people that we have chosen to spotlight in one of our many “Company Profiles”. These are individuals and companies that you not only need to know, but contact to help you with your business. Finally, I would be remise if I did not thank the many, many advertisers who joined us in this issue. Each of these companies truly is “the best of the best” in what they do and are worthy of your business. Please support them. It is now time to let you start enjoying this beautiful magazine (hard copy or digital edition). I would love to get your feedback on SMALL BUSINESS TODAY, please email me at Steve.Levine@SBTMagazine.net or call me at 832-419-2814. Good Reading, Good Business & Success to You, Steve Levine Executive Publisher
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President John Cruise Executive Publisher Steve Levine Business Development/PR Anthony Norris Bill Huff Graphic Design Vanessa Vara Photographers Eric Kleiman Contributing Writers Jamie Belinne Ron Consolino Barbara Davis Maya Durnovo Erich Fruchtnicht Ruben Gonzalez Adrian Garcia Sharon Jenkins Jeff Jones K.Pica Kahn Craig Klein H. Quincy Long Mike Muhney Amy Olivieri Carol Rhodes Monica Russo Rita Santamaria Jane Seaman Woodie Stephenson Jeff Solomon Alvin Terry Aimee Woodall Aaron Young Chief Advisor Hank Moore Publisher’s Advisory Board Debra Bann Cyndi Barnett John Cruise Maya Durnovo Leonard Faucher David Holt Richard Huebner Jeffrey Jones Craig Klein H. Quincy Long Imaad Mahfooz Hank Moore Yusef Muhammad Mike Muhney Dan Parsons Neil Polansky Rita Santamaria Allen Shapiro Doug Winnie R.D. Yoder Aaron Young Phone: 832-460-2020 E-Mail: Steve.Levine@SBTMagazine.net Or Write: Small Business Today 5380 West 34th Street, Ste 230 Houston, TX 77092 See us on the web at www.SBTMagazine.net
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 3
EDITORIAL FEATURE
Taking Fear and Self Doubt Out of Your Road to Success
THE BUSINESS OF REAL ESTATE
By Rita Santamaria Change To make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone. Dictionary.reference Why do people resist change? An article I recently read stated “we resist change when it occurs without our permission”. Change is inevitable and change is often out of our hands. In the changing world we live in, the change in technology is out of our control but we must comply to stay current. If one is not changing with technology, research, trends, then generally one is not growing. And the pace and degree of change in the world shows no sign of slowing. There are certain changes that a company or manager must make where the change can be given with a promise for a better end result. If you implement change in the office with a big stick, it is probably going to be met with resentment and resistance. This is also known as the extrinsic method or in layman’s terms, “do this or else”. Another method often used is a softer touch called intrinsic, where the change is implemented for “the good of the company and for you, the employee’s own good”. This is sometimes called the “eat your vegetables” approach.
to explain the expectations of the sales performance of each new agent, or experienced agent and to discuss performance levels that must be changed. This is certainly for the agent’s own good and for the good of the company if they should need to “change” and increase production. This conversation would also include acceptable performance, habits and timelines for meeting the company expectations and very important, the consequences if not met. Some of the best changes in an office or company come from the persons who are allowed to have the freedom and trust to suggest or implement a new habit. People are motivated to try new initiatives when they are not micro-managed. Extraordinary results can occur when people are informed of why change is needed, how much time
On the first meeting it is up to the leader
This is a changing world both globally and in our own corner of the world, our company and office. Those who embrace change tend to not grow stagnant and continue to have success. Change may not always be good but unless we have an open mind to change we may miss out on the good that it can generate. Rita Santamaria is the owner of Champions School of Real Estate. For more information on career in real estate, visit them on the web at www. ChampionsSchool.com
CHAMPIONS SCHOOL OF REAL ESTATE ®
The approach that tends to work when needing to implement a change in the office, with your team of agents, employees is the “parenting approach”. With this model team members ultimately change their behavior because they choose to do so and not because they feel threatened or forced. There are steps to bringing yourself and company associates around to whatever change is in store. The suggested method for instituting and accepting change is to start explaining at the first interview the expectations of the office in relationship to change. “We sometimes have to bring in new technology or new office policies for the benefit of all”. “How do you feel about your current level of technology skills and are you open to learning new habits?” The manager will get a clue as to how this person is going to react to change.
will it take to learn the new change, will it cost them money, what’s in it for me and just as important, “what if I don’t want to change?”
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 4
www.SBTMagazine.net
INSIDE
HOUSTON
Connecting Houston Home
“How Adversity, Opportunity and Passion led to a Billion Dollar Enterprise”
46
Newhomeprograms.com
10
GPS Wealth Management
52
CourthouseDirect.Com
30
G Ernest Designs
56
Encompass Lending Group - Katy
APRIL 2012 EDITION
38
IN THIS ISSUE Taking Fear and Self Doubt Out of Your Road to Success 4
6
Farouk Shami
Goldman Sachs 10,000 Small Businesses: Houston’s Extraordinary Small Business Growth Program 9
Christy Stratton It’s All About the Feeling
Milly Kammerdiener “Faith will Make it Happen”.
The Entrepreneur’s Tool Box! 12 Title: Take Charge of Your Marketing By Creating a Schedule 13 Protecting Data – Does Your Business Know What to Do? 14 How to Talk to a Web Designer 101 (Part 1) 15 Top 10 Things You Need to Know About Self-Directed IRAs 16 Buy-Sell Agreement for Small Business Owners 18
Cyndi Barnett - Navigating the Course of Wealth Building, Financial Security, and Economics
Marian Cones, CEO and Paul Cones, President A Revolutionary, Diverse Company - Eliminating Surprises
5 Steps to the Right Hire 20 The Power of One 22 How to Conquer Your Fear of Public Speaking 24 Running a Corporation by the Book 26 Title: Starting Email Marketing? Beware These 4 Roadblocks 29 You Are What I See, or Are You? 32 Social Media: The Friendliest Vehicle 36 Eliminating Your Obstacles 40
Gilbert Garza - Maximizing One’s Image with CustomMade, Old-World Quality Clothing for Executives-On-The-Go
Jeff Shealey - “Working Hands-On to Get Deals Done, Developing Long Term Realtor® Relationships”
Back to the Future for Small Companies 44 Doing Business with Harris County's Finest 48 Successful Thinking Yields Successful Results 50
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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.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 5
HOW ADVERSITY, OPPORTUNITY AND PASSION LED TO A
BILLION DOLLAR
ENTERPRISE
Farouk Systems, Incorporated, is “a company of hairdressers for hairdressers.” From immigrant to gubernatorial candidate. Only in America!
By Sharon C. Jenkins
F
arouk Systems Incorprated is the brick and mortar counterpart of its founder: stylish, sophisticated and passionate. Farouk Shami is passionate about hairdressers, their clients and their safety. He refers to Farouk Systems as “a company of hairdressers for hairdressers,” and as an outsider looking in from the other side of the beauty industry, history supports this premise. Immediately upon entering the building there is unexplainable electricity which bears witness to the fact there is an entrepreneurial “CHI” flowing throughout. And, it is contagious. Small Business Today Magazine’s executive publisher, Steve Levine, spoke with Farouk Shami for its premiere issue and the two men instantly formed a mutual admiration society.From the start, it is evident Farouk is a modest man who readily gives recognition for Farouk Systems’ success to his leadership team. He credits its positive energy to a well-oiled managment machine whose main mission is to provide a safe and prosperous work environment for both hairdressers and their clients. According to Shami, this is achieved through the
three E’s: Environment, Education, and Ethics. “Environment: We continually strive to produce safer products for a healthier salon environment. Education: We employ more than two thousand educators and offer continuing instruction at our CHI Academy in Houston. Farouk Systems has partnered with over two hundred schools to open CHI Environmental Schools of Cosmetology and anticipates the number will increase to five hundred in 2012. We train the teams and provide a full curriculum. Ethics: We are taking legal steps to protect our brands from diversion and counterfeiting, which gives the power back to the salon professional. Shami immigrated to the United States from Ramallah in Palestine, a suburb of Jerusalem, in 1965. In order to pay for his college education, he began working as a hairstylist. However, it was never his intention to make this his career. He jokingly commented, “Once you are around beautiful women, it’s like an addiction. If I
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 6
A young Farouk. am ever reincarnated, I want to be a hairdresser again. Creating beautiful women is a profession. God gifted Himself.” Shami started his career in Louisiana, then in 1978 moved to Houston where he opened a hair salon, Le Salon Farouk, in the early 1980’s. As a boy, he watched his mother make dyes for her tapestries and rugs and quickly also became a master of the art. He furthered his studies with www.SBTMagazine.net
(Cationic Hydration Interlink) brand. The most popular CHI product is the ceramic flat iron. This pioneering technology has revolutionized the beauty industry and has become a real customer favorite.
Farouk on the job in the 70s in his salon. a Palestinian pharmacist who loaned him books on hair care products. He soon became a specialist in hair color and design. In 1983, Shami was awarded first place in the USA National Hair Color contest by coloring 622 clients in eight days. In 1990, Hair Color USA recognized him for his accomplishments by naming him “Innovative Colorist of the Decade,” for his invention and patent of the first ammoniafree highlighting system, Sun Glitz.
was the first company to search for ways to eliminate unsafe chemicals, such as ammonia, found in hair colors, relaxers, and a myriad of other hair care products. When other manufacturing companies said it was impossible to produce hair color without ammonia, Shami was already busy developing his first line of ammonia-free hair products. “We were on a mission. . .committed to saving the lives of hairdressers and their customers.”
In 1985, Shami developed an allergic reaction to ammonia and was advised by his physician to give up the beauty business. After opening his first shop, he had already begun to study cosmetic chemistry, so now with his own health at risk, efforts to find a substitute for the use of ammonia became a top priority.
Farouk Systems’ first product was SunGlitz, the ammonia-free lightening system, formulated in 1986. Following it was the BioSilk line of ammonia-free hair dyes plus a variety of hair styling equipment and accessories sold under the CHI
When asked if he chose the right time to launch a new business in the U.S., he responded, “If you are ready to do it, any time is a good time to start a business. I began my business in Texas during a recession, which gave me the opportunity for more focus and less competition. ” Reminiscing about his small beginnings he said, “It doesn’t take a lot of money to get started. I had only $1000.” He has since turned that figure into a billion dollar manufacturing company. Farouk Systems has created over one thousand new beauty products and holds ten patents for innovative work in the industry . . . not bad for a business which recently celebrated its 25th anniversary. In the early days, Bill McCarthy, a salesman for Armstrong McCall Professional Beauty Supply, called on Le Salon Farouk. Although Shami used a competitive color line, he was intrigued by McCarthy’s knowledge of the industry and invited him to come by the shop in the evenings to witness the development of SunGlitz. While looking for a distribution company for his new product, Shami approached Armstrong McCall, but without success. He then asked McCarthy to introduce him to John McCall, the company’s owner. McCarthy obliged Continued on page 37
Lacking a background in chemistry, he spent hours each night searching for practical solutions. The catalyst for his perseverance was to provide a safer work environment for salon professionals and their customers. He said, “Historically, hairdressers didn’t last long in this industry because of daily exposure to hazardous chemicals which caused such problems as silicosis, collapsed lungs, nose bleeds, and fatigue. They were victims of unscrupulous manufacturers who cared more about the hairdresser’s money than the hairdresser.” As a result of Shami’s own experience with harmful hair care chemicals, Farouk Systems, Incorporated, was founded. It
Farouk is seen here in the lab with Dr. Dennis Morrison www.SBTMagazine.net
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 7
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 8
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EDITORIAL FEATURE
Goldman Sachs 10,000 Small Businesses: Houston’s Extraordinary Small Business Growth Program
By Maya Durnovo / Executive Director, Goldman Sachs 10,000 Small Businesses Initiative, Houston Community College
T
he Goldman Sachs 10,000 Small Businesses Program is an extraordinary one. Houston is the fifth city in the country to host the program, an initiative that is designed specifically to help small business owners grow their business in revenue and employees. “Small businesses play a vital role in job creation for our city’s economy….The Goldman Sachs 10,000 Small Businesses initiative will have a real effect on the owners of these businesses,” announced Mayor Annise Parker at the program launch last year at City Hall. “This is a good opportunity for our city.” Small businesses do more than create jobs – they create opportunity. Into day’s economy, small businesses matter more than ever – they are America’s most powerful engine of opportunity and economic development. Small businesses create approximately 2 out of 3 new jobs in America each year, and drive American innovation and competitiveness. Goldman Sachs 10,000 Small Businesses is an initiative to unlock the economic growth and jobcreation potential of 10,000 small businesses across the United States through greater access to business education, financial capital, and business support services. The program is based on the broadly held view of leading experts that this combination of education, access to capital and support services best addresses the barriers to growth for small businesses. Goldman Sachs 10,000 Small Businesses partners with community colleges across the country to deliver this comprehensive program that targets the typical established small business owner: one who has been in operation for a minimum of two years, has four or more employees with revenue between $150,000 and four million, and is poised to grow. Houston Community College was selected to offer the program because it has solid entrepreneurial offerings and has strong ties to the local business community. Since launching the program, 98 small business owners have graduated from Houston Community College’s 10,000 Small Businesses program and their results are impressive. Graduates enthusiastically comment that they have a renewed
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and deeper understanding of their business, a strong new confidence to make the strategic decisions necessary to grow their companies, and a new network of supportive peers. Participants also say they gain valuable, tangible skills that are immediately applicable to their business, such as a better understanding of their finances; effective negotiating skills; a new appreciation for their role as leaders and decision makers; and an understanding of what factors are needed for business expansion. Participants are diverse in experience and background and represent every corner of our local business economy: food production, services, products, and goods. Marlon Brooks, owner of Brooks Family Foods and a graduate of the first class, says, “The instruction and advice that my fellow small business owners and I were given at the classes was top-notch. As a result of the collaborations with HCC and Babson College, we all emerged from the program with a sound understanding of the business world and what we need to do to not just survive or thrive, but excel!” Brooks Family Foods has seen growth of 25% over the past year. The business and management education includes approximately 90 hours of instruction in every facet of growing a business: identifying and evaluating business opportunities; constructing and aligning business operations for growth; analyzing financial statements and using them for management decisions; accessing financial capital; leading a growing business; hiring, developing, and retaining a team; building a healthy organization; developing an effective marketing strategy; and more.. In addition, a business advisor works in a coaching capacity with each business owner and provides guidance in the development of a customized business growth plan. Each business owner develops a growth plan specifically for his or her enterprise. This plan is an in- depth analysis of the key elements of the business with growth projections for business expansion. It is the guiding document that every business owner needs to build a business, and one that is helpful in approaching potential funders, if funding is needed. According to Tony Samper, owner of American
Services, an Air Conditioning, Heating and Electrical Company and a recent graduate, “As direct result of the skills learned I have hired three new employees, trained them in how their work is to be performed, re‐shuffled duties and responsibilities, including my own, and made significant changes in our operation that will result in increased profits. In addition, I am in the process of buying a company for $1,300,000 and the Business Growth Plan skills that I developed through the Goldman Sachs 10,000 Small Businesses program allowed me to write a 50-page document that made this venture bankable.” Babson College, the nation’s premier college for entrepreneurship education, developed the program curriculum and trains local community college faculty to deliver it. The Houston Community College faculty members are all entrepreneurs with expertise and experience in running a small business. Likewise, the program’s business advisors are also business professionals who bring talent and a deep understanding of the daily challenges every business owner encounters. The classroom setting is dynamic and interactive with a strong emphasis on peer learning and peer interaction. Everyone actively participates in the process of learning and applying the key business principles to their businesses immediately. Classes are held on Fridays and Saturdays on alternating weeks over the course of several months. Selected applicants to the 10,000 Small Businesses program receive a full scholarship. What a remarkable opportunity! HCC invites small business owners who meet the criteria (been in operation two or more years with a minimum of four employees and revenue between $150,000 and $4 million) to apply for an upcoming class. For more information and to download an application, visit www.hccs.edu/10ksb. As executive director of 10,000 Small Businesses at HCC, I am very proud to be a part of this extraordinary program because it is making a significant difference to each business owner and to our local economy. Maya Durnovo is Executive Director of 10,000
Small Businesses at HCC.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012
PG 9
Cyndi Barnett -
GPS WEALTH MANAGEMENT
Navigating the Course of Wealth Building, Financial Security, and Economics By Barbara R. Davis
C
yndi Barnett, a Certified Financial Planner™ and Certified Tax Specialist™ is the owner and CEO of GPS Wealth Management. After years of working for a large financial firm in the heart of Houston, she decided to open up her own firm in 2010. Cyndi has always been business-minded and interested in the pursuit of wealth and how it impacts people. She elaborated, “I went into finance to understand how the market works. I love economics. What's going on in the political environment and the global economy is extremely intriguing and it's like a slippery slope for people today.” As a result, she developed the concept of GPS Wealth Management in order to help others navigate their way through the treacherous path of conflicting information surrounding wealth, finance, and economics.
ERIC KLEIMAN PHOTOGRAPHY
A native Texan, Cyndi grew up in the Bay Area and attended the University of Houston where she earned a Bachelor’s of Business Administration Degree in Finance. She is also an alumni of the Wolfe Center for Entrepreneurship at U of H, which is the number one entrepreneurship program in the country. In 1985, during the mid-’80s recession, Cyndi entered the complex world of real estate and became a multi-million dollar producer by the early 1990s. Holding onto the love she has for the real estate industry, she still retains an active Texas Broker’s license even though she no longer lists or sells. Instead, she’s chosen to follow her true passion of helping others in the field of finance and wealth building.
Commercial Real Estate Broker for Keller Williams Pearland
There is so much media hype, it's hard to understand what's going on in the world of economics. All one has to do is change the station to get a different perspective. Cyndi’s role with her clients is teaching them how to decipher all of the conflicting information that bombards them on a daily basis. She enjoys explaining what’s going on without the sales pitch involved and feels strongly that the role of a financial advisor should be to educate and counsel clients based on their specific needs. In her own words, “It’s the client’s decision to take action. I treat everyone as if they are my family and I have to see them every week at Sunday dinner.” One of the key things that sets GPS Wealth Management apart from other companies is that they are a comprehensive financial planning company that deals with cash management, risk management, wealth accumulation, tax strategies, retirement planning, and estate planning. Another key point of differentiation that sets GPS apart is Cyndi's foresight in uncovering unforeseen areas that could possibly be a road block to a client's pursuit of wealth, including catastrophes, inability to work, sudden death, merged families or family dynamics, or what happens to their business if buy-sell arrangements are not in place. “People tend to think that their business, insurance, or taxes are stand alone deals. The truth is everything is inter-related,” explained Cyndi. Cyndi continued, “Nothing stands alone; it's one big machine What I often find is that people are getting advice from many different folks who do not have the big picture of what's going on in the client's life. So one of the things I do is spend a lot of time defining my client's goals, understanding what their challenges are as well as how their family dynamics work. That
way, I can address all the areas of risk they might have and put them on course for a realistic, manageable, and attainable strategy on how they can start saving or whatever else they need to be doing.” Cyndi strongly feels that people need guidance and GPS Wealth Management can help them navigate their way through the muddy waters of wealth, finance, and economics. Summing everything up, Cyndi states, "People don't want to be told what to do. They want to be informed so they can make educated decisions. That's why the G in the GPS acronym stands for guidance. The P in GPS stands for preservation. It's not just about building money and wealth; it's about preserving and protecting what our clients already have, especially in this crazy economy where the market is every which way and no one knows what to expect. Finally, the S in GPS stands for success. A lot of time is spent conversing and listening to our clients so that we understand how they define success and how we can help them get to where they're going.” Cyndi is truly guided by integrity and motivated by the success and satisfaction of helping others achieve their goals. If you are seeking to get on the “right path” to wealth and finance, please contact Cyndi Barnett for directions, by phone at 832-689-5746, by email at cyndi@gpswealth.net, or visit GPS Wealth Management on the web at www.GPSWealth.net.
ERIC KLEIMAN PHOTOGRAPHY
“When my husband Robert and I decided to invest some 'old money' he had, we chose Cyndi. We are in our mid 60s and my husband is ill. What we really like about Cyndi is that she took a lot of time explaining all of our options in 'layman's terms' so that we could make the maximum amount of money in the length of time we wanted to accumulate it with the least amount of risk.” ----Client, Sandy Viveiros,
EDITORIAL FEATURE
Entreprenuer's Tool Box!
ENTREPRENUER'S WORKBOOK
By Alvin E. Terry, MBA
B
usiness and Real Estate is my passion. This is my first of many articles to give you views on how we are being affected by our economy on a daily basis. Working in our community in Banking and Real Estate has been a passion of mine for over 25 years. Living it and experiencing it is the only way that I can genuinely give you my accounting and opinion on how I see the present day effects. I am experiencing what you are experiencing on a daily basis.
on the things that affect our businesses. Having a roadmap to guide us is very important. There may be many components to your business model, but the basic items will always be needed. • A Sound Business Plan • A Realistic Marketing Plan • A Business Attorney • A CPA • An Insurance Agent • A Banker
Having a realistic focus on business and real estate activities in real time has an effect on our lives on a daily basis. Business is constantly evolving. It is a dynamic process that is diverse which contains influences from all over globe. Its’ effect on us sometimes may not be realized until hours, days, months or even years to come.
• A thorough understanding of your customers and their needs
Understanding those experiences can either have a positive or a negative effect depending upon the receiver’s perception. Our personal attitudes will play a major role in our personal and business success. Many times we are forced to take a reality check
• A Can-Do attitude with the proper work ethics
• Adequate Startup and Working Capital • Corporate Branding • A Management Team • A Sales Team
work and do it. Before we know it the New Year will bring on other great challenges. The economy is evolving in a new direction, finally. Now is the time to assess and reassess our past and present relationships. In order to evolve and emerge as a business success story we have to position ourselves with the right posturing. This posturing will allow us to manifest our dreams of Entrepreneurship. Our desires are to be successful not just for a day, but for a sustained period of time. As this success is realized, we are not only benefiting our communities and our families but ourselves as well. I hope these words have touched a realistic cord in you, the readers. You can contact Alvin E. Terry, MBA directly at 713-392-9107 or by email at alvin.terry@rocketmail.com
• Time Management Skills • A Smile Once you have an understanding of the above components, then all you have to do is to get to
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 12
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EDITORIAL FEATURE
Take Charge of Your Marketing By Creating a Schedule
MARKETING STRATEGIES
By Amy Olivieri, Regional Development Director, Constant Contact
I
f you're like me, you have a few favorite TV shows you watch regularly. And even though, thanks to my DVR, I don't need to watch them at the time they originally air, I know exactly when I'll be able to look for them in the queue.
You may want to experiment at first with the exact times to see how your audience responds.
If you've been creating marketing content without a schedule, you could be missing out on a very powerful phenomenon: when people know when to expect the things they like, they look forward to them‌ and when they're not there they take notice .
3. Update your Facebook Page status at least once a day. Experiment with the different times to find out when you get the most engagement.
Why is a powerful?
regular
schedule
2. Email your list at least once a month. Experiment with days and times, then stick to something consistent.
need to create the content you share. Find interesting links from those within your industry, and include a comment with your point of view. Choose a schedule, and remain consistent with it. Then you'll be on your way to creating fresh content that helps you get and keep more subscribers, more readers, more fans, and more followers! Amy Olivieri is Regional Development Director at Constant Contact
4. Update Twitter at least three times a day. You don't always
Just like a TV show, you're able to promote something specifically. This allows you to generate interest and warm people up for the bigger conversation you're planning. Your marketing becomes more focused and engaging, which is exactly what works in the social media space.
The key is to choose schedules you can stick with. If the following suggestions don't work for you, adjust as necessary, but commit to whatever schedule you choose. 1. Post to your blog at least once a week, same day, same time. www.SBTMagazine.net
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 13
EDITORIAL FEATURE
Protecting Data - Does Your Business Know What to Do?
TECHNOLOGY TIPS
By Monica Russo
I
n times of escalating privacy and data breaches, customers expect every business — large or small — that collects their sensitive personal information will protect it. Better Business Bureau advises business owners to proactively address customer anxiety and takes steps to both prevent and prepare for a security breach. BBB has endorsed the Online Trust Alliance’s Data Protection and Breach Readiness Guide, recently updated for 2012 Last year, more than 125 million people were affected by data loss incidents. Increased awareness of these high visibility incidents, as well as aggressive data collection and sharing practices, have eroded consumers’ trust and online confidence, according to OTA.
The Internet has become the land of opportunity for scams and, unfortunately, we see thousands of them every year. Consumers need assurances that they can trust the companies they do business with to secure their data, and the OTA Data Protection and Breach Readiness Guide is a great tool to help businesses protect themselves and their customers. In the wake of a security breach, it’s important to take action quickly. Small and large businesses alike need to be able to readily determine the nature and scope of the data incident, and take all appropriate steps to contain and stop the attack. BBB recommends the 2012 guide and encourages all businesses to use its suggestions to help build a safer Internet for all.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 14
The 2012 Data Protection and Breach Readiness Guide reflects input from a wide range of stakeholders, including interviews with companies that have experienced breach and data loss incidents, and industry and breach analysis experts. For more data security advice you can trust, visit www.bbb.org/data-security , and for a complete OTA guide, visit https://otalliance.org/breach. html .
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EDITORIAL FEATURE
How to Talk to a Web Designer 101 (Part 1) By Erich Fruchtnicht
S
o you're in the market for a website. This is a momentous occasion! Your options are nearly limitless when it comes to the wide world of websites, and many new comers can be overwhelmed. To help you navigate what can be a maddening array of information, I plan to use the next few columns to address some of the most common areas to cause consternation. Firstly, before you can even begin the process of picking colors or planning dynamic features, you need to find a web designer. There are many to choose from and they are of varying quality, capabilities, and experience. I believe that the two most important characteristics of a successful web designer are communication and responsiveness. If you can not communicate with your designer, then you are sunk before you begin. By communication I mean that you and your designer share a common language. I have had the opportunity to help many frustrated website owners who had first directly contacted a foreign design firm
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with the hopes of saving money. While there may be a perceived initial savings, you may end up spending much more time trying to resolve miscommunications and ultimately have to end up starting over. Additionally, if your designer is not responsive you will have difficulty correcting errors or completing the design process on time. By responsiveness, I mean that you can not reach the designer by phone or email and that they do not return your calls in a timely manner. Both of these troubles can end up costing you the precious time that, as a small business owner, needs to be spent on growing your business. Another consideration is whether you look for a designer locally or expand your search across multiple cites and states. Having a local designer may be something you wish to consider as it makes faceto-face meetings a possibility, but in today's age of video conferencing and conference calls you may find that a designer who is farther away physically may be easier to communicate with and a better fit for your long term design goals. Ultimately, on
this issue, I would recommend that you examine the portfolio of the designer to see if they can produce the quality you require. Checking the BBB records is also a good idea. Consider that when you pick a website designer you may be working with them for many years. Be sure to pick someone who can provide what you are going to need over the long term in terms of support and expansion. It is always better to build a relationship with someone you can trust to treat your website like their own, and who takes pride in how your site looks online. Next time I will write about, "now that you've found your website design, how do you talk to them?" I will cover some "lingo" and provide you the tools to communicate your vision to the designer so that you end up with the website of your dreams! Erich Fruchnicht is President of Trinity Group Design.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 15
EDITORIAL FEATURE
Top 10 Things You Need to Know About Self-Directed IRAs
FISCAL MANAGEMENT & RESPONSIBILITY
By H. Quincy Long
T
here is a lot of confusion over self-directed IRAs and what is and is not possible. In this article I will discuss some of the most important things you need to know about self-directed IRAs. 1) IRAs Can Purchase Almost Anything. A common misconception about IRAs is that purchasing anything other than CDs, stocks, mutual funds or annuities is illegal in an IRA. This is false. The only prohibitions contained in the Internal Revenue Code for IRAs are investments in life insurance contracts and in “collectibles.” Since there are so few restrictions contained in the law, almost anything else which can be documented can be purchased in your IRA. A “self-directed” IRA allows any investment not expressly prohibited by law. Common investment choices include real estate, both domestic and foreign, options, secured and unsecured notes, including first and second liens against real estate, C corporation stock, limited liability companies, limited partnerships, trusts and a whole lot more. 2) Seven Types of Accounts Can Be Self-Directed, Not Just Roth IRAs. There are seven different types of accounts which can be self-directed. They are the 1) Roth IRA, 2) the Traditional IRA, 3) the SEP IRA, 4) the SIMPLE IRA, 5) the Individual 401(k), including the Roth 401(k), 6) the Coverdell Education Savings Account (ESA, formerly known as the Education IRA), and 7) the Health Savings Account (HSA). Not only can all of these accounts invest in non-traditional investments as indicated above, but they can be combined together to purchase a single investment. 3) Almost Anyone Can Have a SelfDirected Account of Some Type. Although there are income limits for
contributing to a Roth IRA, having a retirement plan at work does not affect your ability to contribute to a Roth IRA, and there is no age limit either. With a Traditional IRA, the fact that you or your spouse has a retirement plan at work may affect the deductibility of your contribution, but anyone with earned income who is under age 70 1/2 can contribute to a Traditional IRA. There are no upper income limits for contributing to a Traditional IRA. A Traditional IRA can also receive funds from a prior employer’s 401(k) or other qualified plan. Additionally, you may be able to contribute to a Coverdell ESA for your children or grandchildren, nieces, nephews or even my children, if you are so inclined. If you have the right type of health insurance, called a High Deductible Health Plan, you can contribute to an HSA regardless of your income level. With an HSA, you may deduct your contributions to the account and qualified distributions are tax free forever! All of this is in addition to any retirement plan you have at your job or for your self-employed business, including a SEP IRA, a SIMPLE IRA or a qualified plan such as a 401(k) plan or a 403(b) plan. 4) Even Small Balance Accounts Can Participate in Non-Traditional Investing. There are at least 4 ways you can participate in real estate investment even with a small IRA. First, you can wholesale property. You simply put the contract in the name of your IRA instead of your name. The earnest money comes from the IRA. When you assign the contract, the assignment fee goes back into your IRA. If using a Roth IRA, a Roth 401(k), an HSA, or a Coverdell ESA, this profit can be tax-free forever as long as you take the money out as a qualified distribution. Second, you can purchase an option on real estate, which then can
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 16
be either exercised, assigned to a third party, or canceled for a fee. Third, you can purchase property in your IRA subject to existing financing or with a non-recourse loan from a bank, a hard money lender, a financial friend or a motivated seller. Profits from debt-financed property in your IRA may incur unrelated business income tax (UBIT), however. Finally, your IRA can be a partner with other IRA or non-IRA investors. For example, one recent hard money loan we funded had 10 different accounts participating. The smallest account to participate was for only $1,827.00! 5) Caution: There Are Restrictions on What You Can Do With Your IRA. Although as noted above in paragraph 1 the Internal Revenue Code lists very few investment restrictions, certain transactions (as opposed to investments) are considered to be prohibited. If your IRA enters into a prohibited transaction, there are severe consequences, so it is important to understand what constitutes a prohibited transaction. Essentially, the prohibited transaction rules were made to discourage certain persons, called disqualified persons, from dealing with the income and assets of the plan in a selfdealing manner. As a result, disqualified persons are prohibited from directly or indirectly entering into or benefitting from your IRA’s investments. The assets of a plan are to be invested in a manner which benefits the plan itself and not the IRA owner (other than as a beneficiary of the IRA) or any other disqualified person. Investment transactions are supposed to be on an arms-length basis. Disqualified persons to your IRA include, among others, yourself, your spouse, your parents and other lineal ascendants, your kids and other lineal descendants and their spouses, and any corporation,
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partnership trust or estate which is owned or controlled by any combination of these persons. It is essential when choosing a custodian or administrator that the company you choose is very knowledgeable in this area. Even though no self-directed IRA custodian or administrator will give you tax, legal or investment advice, the education they provide will be critical to your success as a self-directed IRA investor. 6) Some IRA Investments May Cause Your IRA to Owe Taxes – But That May Be Okay. Normally an IRA’s income and profits are exempt from taxation until a distribution is taken (or not at all, if it is a qualifying distribution from a Roth IRA). However, there are three circumstances when an IRA may owe tax on its profits. First, if the IRA is engaged in an unrelated trade or business, either directly or indirectly through a non-taxable entity such as an LLC or a limited partnership, the IRA will owe tax on its share of Unrelated Business Income (UBI). Second, the IRA will owe taxes if it has rental income from personal property, such as a mobile home not treated as real estate under state law (but rents from real property are exempt from tax if the property is debt-free). Finally, if the IRA owns, either directly or indirectly, property subject to debt, it will owe tax only on the portion of its income derived from the debt, which is sometimes referred to as Unrelated Debt Financed Income (UDFI). This may sound like something you never would want to do, but a more careful analysis may lead you to the conclusion that paying tax now in your IRA may be the way to financial freedom in your retirement. For example, one client made a net gain of over 1,000% in less than four months after her IRA paid this tax. This is definitely a topic you will want to learn more about, but it is not something you should shut your mind to before investigating whether the after tax returns on your investment would exceed the return you might otherwise be able to achieve in your IRA. 7) An Inherited Roth IRA Can Give You Tax Free Income Now No Matter What Your Age. Many people know that a qualified distribution from a Roth IRA is tax free. To make the distribution qualify as tax free, it must be distributed after the IRA owner has had a Roth IRA for at least 5 tax years and after one of four events occurs – 1) the IRA owner is over age 59 ½, 2) the IRA owner becomes disabled, 3) the IRA owner dies and the
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distribution is to his or her beneficiary, or 4) the distribution is for a first-time home purchase, either for the IRA owner or certain close family members. Although the neither the original Roth IRA owner nor his or her spouse has to take a distribution (assuming the spouse elects to treat the IRA as their own), non-spouse beneficiaries of a Roth IRA do have to take distributions, normally over their expected lifetimes. However, once the five year test is met, those distributions are tax free, regardless of the age of the IRA beneficiary! Even a $100,000 Roth IRA left to a 6 year old beneficiary may generate as much as $80,496,367 in lifetime tax free distributions if the IRA can sustain a yield of 12%, which is very possible with a self-directed IRA. 8) 2010 Brings an Incredible Gift From Your Government. Most people who understand the benefits of a Roth IRA really want one, but many people have not been able to qualify for this incredible wealth building tool because of income limitations which restrict the eligibility of a person to contribute to a Roth IRA or to convert pre-tax accounts like Traditional IRAs into a Roth IRA. In 2010 the rules for conversions will change so that anyone, regardless of income level, will be eligible to do a Roth conversion. Beginning in 2010 anyone who has a Traditional IRA (including a SEP IRA), a SIMPLE IRA which has been in existence for at least two years, or a former employer retirement plan such as a 401(k) or a 403(b) can convert those into a Roth IRA and can then begin to create tax free wealth for their retirement. Even if you do not currently have an IRA but are eligible to contribute to a Traditional IRA, the contribution can be made and immediately converted into a Roth IRA. This truly is one of the most exciting tax planning opportunities to come along in a very long time! 9) There Are Millions of Dollars Available to Finance Your Real Estate Deals Right Now. We are in a very exciting time for wise real estate investors. There are a lot of super real estate bargains out there right now, but it can be very difficult for investors to get financing – unless they know the secret of private financing. There are billions of dollars of lazy IRA money sitting on the sidelines waiting for the right investment, because many people are very afraid of the stock market. Included among the many things people can invest in with a self-directed IRA are real estate
secured loans or even unsecured loans. Shakespeare wrote in his play Hamlet, “Neither a lender nor a borrower be, for a loan oft loses both itself and friend, and borrowing dulls the edge of husbandry.” I believe Shakespeare was wrong, but he might be forgiven since he did not have the advantage of knowing about selfdirected IRAs. You can benefit from your knowledge of self-directed IRAs either by having your IRA be a private lender or by borrowing OPI – Other People’s IRAs – for your real estate transactions. Networking is the key to success in the area of private lending or borrowing, but there are things you must know to do it properly. 10) Use Options to Dramatically Boost Your Small IRA. Options are one of the most powerful and under-utilized tools in real estate investing today, and they work beautifully within a self-directed IRA. The consideration for the option and the property being optioned can be almost anything, not just real estate. Once an IRA owns an option, it can 1) let the option lapse (which at times is the right answer), 2) exercise the option and acquire the property, 3) assign the option for a fee (assuming the option agreement allows for assignment) or 4) agree to cancel the option for a fee with the property owner, thereby getting paid not to buy the property! Options are very flexible and can be designed to fit almost any situation. One client paid $5,000 from his Roth IRA for an option which he later canceled for a fee of over $35,000. Then he took that money, bought a property at a foreclosure auction for cash, and later sold the property for $70,000 with $5,000 down and a $65,000 seller-financed note. By using the option he was able to take his $5,000 Roth IRA and turn it into a $70,000 Roth in less than a year! Truthfully there are many more things that you should know about self-directed IRAs. To learn more, attend one or more of Quest IRA’s many free networking and educational events. You can get the entire schedule of events in addition to playing pre-recorded webinars by going to our website at www.QuestIRA.com. Happy investing! H. Quincy Long is CEO of Quest IRA, Inc. You can reach him toll free at 800-320-5950 or 800501-1228 or by email at Quincy@QuestIRA. com. The website for more information is www. QuestIRA.com
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 17
EDITORIAL FEATURE
Buy-Sell Agreement For Small Business Owners By Jeffrey D. Jones, ASA, CBA, CBI
O
ne of the critical documents a business owner should have whenever there is more than one partner/ shareholder in a small business is a Buy-Sell Agreement. Over the years, we have had the opportunity to read many Buy-Sell Agreements. Virtually all of the Agreements have three things in common: a. They are generally written under the implicit assumption that the other guy is going to die first b. The valuation procedures are unclear, unworkable or grossly unfair to at least one of the parties c. The mandated periodic valuations by the shareholders are rarely kept current In my capacity as a business appraiser and business broker, I have discussed the valuation problem inherent in Buy-Sell Agreements with numerous attorneys. The following business issues and suggestions may be helpful, when you are called upon to prepare a Buy-Sell Agreement for your company or a client. A Buy/Sell Agreement should cover the four D’s of Shareholder/Partner involvement which are: 1. Death (who wants to deal with the spouse or family)
2. Divorce (Do you want the spouse as a partner?) 3. Disability (What happens when a Partner/Shareholder can no longer work for an extended period of time. 4. Dissolution (What to do when a Partner/Shareholder wants out). The valuation results may vary greatly depending upon the use of the appraisal. Furthermore, the standard of value to be used when valuing less than 100% contract becomes an important issue. Are minority ownership interests to be valued based on Fair Market Value (which may require a large discount from company value) or Fair Value (usually meaning pro rata of company value)? These issues should be spelled out in the Agreement. The company should consider paying for Key Man Insurance to insure that the funds will be available to buyout departing Partners/ Shareholders. The mandate for the Key Man Insurance and procedures for determining value should be included in the Agreement. Determining the market value of a company and/or a partial ownership interest is an important element of any Buy-Sell Agreement. Many agreements use Book Value as a basis of valuation, while others use a formula or "Rule Of Thumb" method. Book Value may be
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 18
representative of the company's tax basis in its tangible assets, but it is rarely representative of the company’s Fair Market Value. One or more of the parties to a Buy/Sell agreement is bound to be treated unfairly when Book Value or a fixed formula method is used to determine value. Formulas and "Rules Of Thumb" methods are usually mathematical computations that often do not take into consideration the unique aspects of the subject company. These methods do not specify the procedures to be used in the computation nor fully state which assets are being included or excluded. A few of the agreements we have read state that the company's accountant should conduct the appraisal. This presents a major conflict of interest for the company's account because he will have difficulty being independent when required to represent all parties. Furthermore, the accountant may not be trained or qualified to conduct the appraisal, which would likely result in a faulty value. Left to chance, the courts are likely to rule on the strict interpretation of the agreement, regardless as to the fairness for the parties. Some agreements call for each side to a dispute to hire an appraiser and if they can not agree, then a third appraiser is hired to either www.SBTMagazine.net
do another appraisal or render a decision after having reviewed the first two appraisals. The cost of hiring 2 to 3 appraisers can be very expensive. There are better methods of determining value. Several of the attorneys we have met are solving these valuation issues by putting a provision in the Buy/Sell agreement that a qualified independent business appraiser shall be hired by the respective parties to determine value. A provision in the Buy/Sell agreement can set out a procedure wherein the parties agree to hire an independent qualified business appraiser having specified appraisal qualifications. The following language is for concept only and should be rewritten by counsel to insure compliance with applicable laws and procedures, as well as the intent of the Partners/ Shareholders.
VALUATION PROCEDURES Upon the occurrence of an event requiring a determination of value under this Agreement, the Partners/ Shareholders agree to engaged an independent business appraiser to provide an opinion of the value utilizing standards of value specified herein on a (minority interest) (controlling interest) (enterprise) basis as of the date specified in the agreement. In preparing its valuation opinion, the appraiser will be provided with such access to the books and records of the Company and its management as is customary in appraisals of this type in the course of due diligence procedures. The valuation conclusion of the appraiser will be binding upon the Partners/Shareholders individually, as well as upon their estates and beneficiaries, and the Company (if it is a party to the Agreement). Said appraiser must be acceptable to all parties concerned and have senior designations from one or
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more major national business appraisal organizations, such as the American Society of Appraisers and the Institute of Business Appraisers). The normal and customary fees and expenses for an appraisal shall be split equally between the involved parties.
procedures for determining value. When the need arises, contact a business appraiser who meets the above criteria. Jeff Jones is President of Advanced Business Brokers and can be contacted via email at JDJ@AdvancedBB.com
It has been our experience that the procedures stated above are far less expensive and results in less litigation than most other
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Listed by The Scotsman Guide in the Top 200 Loan Professionals in the country. 8400 N. Sam Houston Parkway W. #160 Houston, TX 77064 © 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in the following states: AK, AR, CO, DE, FL, GA, HI, ID, IA, KS, KY, LA, MN, MS, MO, MT, NE, NV, NY, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WV, WI, WY. Licensed by: AL State Banking Dept.- consumer credit lic no. MC21004; AZ Dept. of Financial Institutions- mortgage banker lic no. BK 0907334; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act- lender lic no. 4130996; CT Dept. of Banking- lender lic no. ML-13649; D.C. Dept. of Insurance, Securities and Banking- dual authority lic no. MLO13649; IL Dept. of Financial and Professional Regulationlender lic no. MB.6760635; IN Dept. of Financial Institutions- sub lien lender lic no. 11169; ME Dept. of Professional & Financial Regulation- supervised lender lic no. SLM8285; MD Dept. of Labor, Licensing & Regulation- lender lic no. 11058; Massachusetts Division of Banking– lender & broker license nos. MC5404, MC5406, MC5414, MC5450, MC5405; MI Dept. of Labor & Economic Growth- broker/lender lic nos. FR 0010163 and SR 0012527; Licensed by the New Hampshire Banking Department- lender lic no. 14553-MB; NJ Dept. of Banking and Insurance-lender lic no. 0803658; NM Regulation and Licensing Dept. Financial Institutions Division- lender license no. 01890; ND Dept. of Financial Institutions- money broker lic no. MB101786; RI Division of Banking- lender lic no. 20102678LL and broker lic no. 20102677LB; TX OCCC Reg. Loan License- lic no. 7293; VT Dept. of Banking, Insurance, Securities and Health Care Administration- lender lic no. 6127 and broker lic no. 0964MB; WA Dept. of Financial Institutions-consumer lender lic no. 520-CL-49075.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 19
EDITORIAL FEATURE
5 Steps to the Right Hire By Jamie Belinne
F
inding the right people to help you grow and manage your business is one of the hardest and most important tasks you will face as a business owner. Yet most people rush through this process and either get lucky with a good hire, or pay a tremendous price in lost business and productivity with a bad hire. One of the best investments you can make in the future of your business is taking the time up front to make sure you hire the best candidate for your company. 1. Write a Job Description Let’s face it – writing job descriptions isn’t very fun, which is why we avoid doing it. In reality, it will probably take you less than an hour if you focus on the task, and the investment of time will save you many more hours of misunderstandings and missed opportunities later on. When writing the description, be sure to include: a. Primary responsibilities of the role b. Outcomes for which the role may be responsible c. Specific skills, qualities or competencies needed to do the job well d. Specific training or experience needed to do the job well 2. Determine Compensation The easiest way to start this process is to look at similar job postings that have the salary listed. If the job requires specialized skills, you can often find salary surveys through professional
organizations related to those types of skills. Also, determine how much compensation, if any, should be in the form of commissions, bonuses, options or even ownership. Benchmarking job postings is a good start for this, but looking at your current financial situation and the importance of the position you are filling is necessary as well. 3. Advertise Correctly Broad-based newspaper and web advertising doesn’t hurt, but it’s often a really big net to catch just one fish. For entry-level positions, you can generally post your positions for little or no money through local universities. For instance, the Bauer College of Business posts jobs to students for free through hirebauer.com. For more experienced positions, you can sometimes have your job advertised for little or no money through professional associations relevant to your industry or the position being hired. Linked In groups are a great way to spread the word without spending a lot of money. For very specialized positions, you might even look at the web page of similar companies with similar roles and call their specialized employees to ask for referrals of qualified candidates. 4. Screen Carefully and Objectively Based on your job description, develop a list of the training and experience required for the job. Resumes have lots of information designed to distract you from the qualifications you need, so the more focused you are in your screening, the more likely you are to get a qualified employee.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 20
Your first pass through the resumes you receive should be based solely on your list of required training and experience. Your next pass should be based on whose skills and experience are the most directly relevant to your position. The third pass, if one is needed, should be based on the more subtle aspects of their resumes, such as longevity in positions, experience in startup environments or demonstrated leadership in the community. Two of the simplest screens you can do on a resume are for typographical errors (demonstrate poor attention to detail) or badly worded descriptions (demonstrate poor communication skills). 5. Use Competency-Based, Behavioral Interviews Research has shown time and again that the best predictor of future behavior is past behavior. Your interview questions should leverage this understanding. For instance, rather than saying, “What would you do if you had to deal with an angry customer?”, asking “Tell me about the last time you dealt with an angry customer and how you handled it?” will give you a much more telling response. After all, some job candidates are just charming, nice people. They’re easy to like and fun to have around. That doesn’t mean you want the success of your business to depend on them. Some of the nicest people in the world can still be completely incompetent, so you can play golf with them, but don’t hire them! Focusing on competencies
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and behaviors is the best way to avoid the “nice guy” trap. Start by looking at the skills, qualities and competencies you selected for your job description, and use those as the basis for your questions. All of the questions should be designed for the candidate to give you a specific example of how he or she has used this competency in the past. Most of your questions will start with “Tell me about a time. . .” or “Give me an example of when. . .” For instance, some great, competency-based, behavioral questions are given below: Teamwork skills: Tell me about a time you were in a team where there was a disagreement on how to handle an issue and how you handled it. Leadership skills: Give me an example of a time you were leading a project and people weren’t doing what you wanted and how you
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handled it. Ability to handle stress/failure: Tell me about a time you failed. Dealing with ambiguity: Give me an example of a time you were asked to reach a goal, but you couldn’t get any information on how anyone wanted you to get there. Initiative: Tell me about a time you saw a problem and took the initiative to fix it. There are three keys to using this kind of question when evaluating the answers: a. Make certain the candidates give you specific examples. Do not allow them to give a hypothetical situation. Allow them time to think or to come back to the question if they have trouble coming up with a specific situation they were in. b. Make certain the candidate tells you about the specific action that he or she
took in the situation. Do not allow them to talk about how other people solved the problem for them or how they were not accountable. c. Don’t let them finish their story without an ending. Make sure they tell you the outcome of the situation and their outcomes, as this information can be extremely telling, as well as their reactions to the outcome. Using a defined job description, with correct compensation and advertising, competency-based screening and behavioral interviews will help you find the right person to make your business successful. The “what a great guy” hiring approach is much simpler and faster on the front end, but the financial and time costs after the hire can bring your business to its knees. Jamie Belinne is Assistant Dean at Rockwell Career Center, Bauer College of BusinessUniversity of Houston. For more information go to http:hirebauer.com
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 21
EDITORIAL FEATURE
The Power of One By Mike Muhney
P
oet John Greenleaf Whittier once wrote, “Of all sad words of tongue or pen, the saddest are these: It might have been.”
Who of us at one point or other in our lives hasn’t felt that way about something? If we had only done that one more thing. Can you relate to any of the following? I’m missing only one piece of the puzzle… One more minute would’ve made the difference… If only I’d had that one extra piece of information… One more inch and we would have come in first place… I lost the golf tournament and a $xxx purse by one stroke… Whether in sports, in school, or in business, no doubt, we can all relate. Not only does the power of that one detail make all the difference in terms of results, but it’s YOU who can make that difference with an understanding of what it takes to capture its power. If it’s your goal to be the very best, most successful version of yourself, then the power of one is the distinguishing factor between second best and very best. The power of one has an even greater application for the personal interactions of professionals in relationship-centric industries. When it comes to dealing with other people,
they can accept or dismiss you based on that power of one. The power of one can be the difference between success and failure, between yes and no, between moving forward or not moving at all. At the temperature of 211º water is extremely hot, but at 212º it boils. That one-degree difference produces steam that can be captured as energy. That energy can be used to power machinery, even huge locomotives. But reduce the water temperature by one degree and you won’t move that train an inch. The same holds true for the powers of persuasion, inspiration, and motivation. If you remove that power of one from the equation, what might have been an otherwise compelling interaction fails to move hearts or open minds. In each of us is the potential to produce that difference of one. And that one thing can make all the difference. That extra gesture of kindness, that extra effort, that extra perk you weren’t contractually obligated to provide, that extra minute when a customer shows up at closing time, that extra phone call answered after hours. The list is endless. But the difference is infinite. A single idea can launch an entire company, some of which can pioneer entire industries, technologies, resulting in benefits for us all. The power of imagination may be that one thing that leads to your discovering a new solution that makes the
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 22
difference between survival of your company and overwhelming success. Finding your power of one as it relates to each and every one of your personal interactions will provide favor and opportunity previously unattainable. As I like to always say, there is no traffic jam on that one extra mile. Raising the bar of your own standards, even those proven successful in the past, is the only way to continue surpassing your competition. Don’t settle for beating your competitors. Strive to be better than the best you’ve ever been. Washington Allston said “The only competition worthy of a wise man is himself.” And the source for constant improvement comes from the power of one. That means that it first and always must come from within. Without seeking to accomplish that one degree of difference, you’ll likely find yourself wondering, “What might have been….” There is infinite value in closer relationships. And that one understanding can make all the difference. Mike Muhney is the CEO & CoFounder of VIPorbit. To learn more about Mike visit www.MikeMuhney.com
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 23
EDITORIAL FEATURE
How to Conquer Your Fear of Public Speaking
EMPOWERING PEOPLE
By Pam Terry
W
hy is it that public speaking is the #1 fear of the majority of people? Fear and anxiety are caused when you focus on yourself with all of your self-worry and self-doubt. You may have good reason to doubt yourself or be worried – but it’s important to get the distinction about what’s causing it: YOUR FOCUS. Once you get that distinction, you are no longer victim to it – you can choose to knowingly focus on your self-worry and self-doubt or you can focus on taking action. What’s the opposite of fear? Confidence. To gain confidence, you need to take action and act in the face of your fear. Acting in the face of fear, takes courage, faith and passion for a future that is calling you forth. Your passion for your topic and what it will do for people is a future that you are stepping into. By cultivating your passion, courage and faith will be your partners and carry you through while you build your confidence. Here are 7 tips to virtually eliminate your anxiety and fear of public speaking: TIP #1: Put your focus on the value
that your information will provide for people. Focus on what they want and how the information that you have can make their life better in some way. Become passionate about that focus. The more you focus on your audience’s needs and how you can fulfill on those needs, the more rewarding for you both. TIP #2: Use relaxation techniques to calm yourself. Get plenty of rest the day before and leading up to the talk. Drink lots of water. The day of the event, practice deep breathing, loud sighing (YES), and visualizing a successful event. Yoga (or any form of exercise) and meditation are great for calming nerves. TIP #3: Schedule a hypnosis session the week of your event if you feel super anxious about speaking.
So what if you fail? Can you be with that? Thomas Edison failed 5,000 times in creating the light bulb. Every time you fail, you become more of an expert. TIP #6: Look at any failure to see what you could do differently to be successful and commit to that particular failure never happening again! TIP #7: To build confidence, use this framework for success: Passion, Power (Knowledge of your topic, audience and delivery styles), Preparation and Practice. The best thing you can do is to improve your speaking skills. Eliminating anxiety and fear is all about building confidence. You can do it. Pam Terry is a Speaker Coach and Trainer. She can be reached at Pam@ PamTerry.com
TIP #4: Can you look in the mirror and say “I Love You?” If not, do it. Loving yourself is a key step in building confidence. TIP #5: Ask yourself: “What is the worst thing that could happen?” Whatever you can’t BE with has control over you. Conversely, whatever you CAN BE WITH, you will have a sense of mastery over.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 24
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 25
EDITORIAL FEATURE
Running a Corporation by the Book
MENTORING & EXECUTIVE DEVELOPMENT
By Aaron Young
F
or me, the old adage, “If it looks like a duck, and quack likes a duck, then it must be a duck!” brings to mind the importance of running your corporation like a real corporation. I have seen too many business owners fall into the trap of running their companies the same way they did before they were incorporated. Incorporating has its benefits, but in order to receive the privileges, you must meet the obligations! Although your company may be run like a corporation to you, is it a real corporation under the guidelines of the law? You may not already know this, but in order to be treated like a corporation, your corporation must look and act like one. If you don’t treat it like a corporation, no one else will. You might be thinking, “But I am a one man show! How can I act like a corporation if I’m the only person working in my business?” This is a good question! The difficult part of a one-person corporation is that you must remember at all times which function you are serving in. To give you a quick breakdown of how you will represent the many hats you wear from day to day, here’s a brief guide to follow. Roles in a corporation: (examples)
• You can be a stockholder, a director, an officer and an employee of the same corporation. • When choosing yourself as director for the corporation, you are acting as
a stockholder. • When drafting corporate resolutions, you’re acting as a secretary. • When signing contracts or other documents, you’re acting as an officer. • When sweeping the floor you are acting in the capacity of an employee. In one-person corporations such as this, corporate formalities become the crucial element of proof that you are in fact doing business as a corporation, rather than as a sole proprietor. “Corporate formalities” is a term which encompasses certain functions within the operation of a corporation which prove that a corporation is acting properly. Corporate formalities include annual meetings of stockholders and directors, minutes of meetings, Board of Directors resolutions (which document the directors’ thinking), and proper appointment of officers. Small, one-person corporations have the greatest difficulty with corporate formalities. They experience difficulty, not because corporate formalities are difficult, but rather because many business people forget to observe them. The best way to avoid problems is simply to keep up with your corporate records, hold your annual meetings, and stop and think which role you are playing at any given time. Entrepreneurs who do so seldom find this to be difficult or onerous. More on Corporate Formalities
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 26
Now let’s talk about the most important thing regarding the operation of your corporation. What are corporate formalities? They are, simply stated, the responsibilities of keeping your corporate records in compliance with all laws and regulations. You’ve probably heard about lawyers “piercing the corporate veil”—going around the corporation to hold the owners personally liable for its debts. This is tragic, especially since it’s so easy to prevent. You may naively assume that because you’ve incorporated and followed the standard protocol to form your entity that you’ve taken of everything and now you can sit back, relax, and reap the rewards. Wrong! Like that old saying about the duck—if you want the liability and asset protection of a corporation, you must run your company (no matter how big or how small) like a real corporation. How do you make sure a corporation looks and acts like a corporation? Well, the first thing is to make sure all of your letterheads, stationery, business cards, statements, etc.— anything you write or say about your business—should say “Inc.,” “Corp,” “Co.,” or “LLC.” Then your business looks like a corporation and you are presenting it to the public as being a corporation. Furthermore, when you set up a corporation, you should give it a reasonable amount of money to carry out its purpose. You can do that by buying stock in your corporation.
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The corporation’s thinking is done by the Board of Directors. Therefore, when the corporation has a thought, those thoughts must be reduced to written form and contained in the corporate records as proof that it was, in fact, the corporation that thought and acted. Each time a corporation makes any major decision, it should be noted in the corporate record book in the form of minutes or resolutions. When this is done, the corporate entity is preserved and safe! In fact, the fewer stockholders a corporation has, the more important this becomes. Certainly in the case of a one-person corporation, it is literally all important! You will often hear stories of outsiders “penetrating the corporate veil.” That is why it is all important to observe corporate formalities. Courts look at the corporate records to determine if the corporation acted as a corporation or as an individual. If it acted as a corporation, all decisions are documented as proof that it was the corporation acting, not the individual. Therefore, if the corporation documents its acts by minutes or resolutions, then the individual is insulated from the acts of the corporation. The bottom line is—to be treated and recognized as a corporation you must observe the corporate formalities which are as follows: a. Required Meeting: Annual meetings are not always required of the stockholders and directors, but these meetings help to document the actions of the corporation as well as provide proof of the ongoing pursuit of the purpose for the corporation to exist. Therefore, they should be properly recorded in the corporation record book. b. Minutes of Meetings: When a meeting is held for any purpose, it is important to observe the corporate formalities and document said meeting in the corporate record book. c. Resolutions:
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Aside from the
required annual meetings, the easiest way to govern and observe corporate formalities in a small, private corporation is by resolutions signed by a quorum of its directors or stockholders (as applicable). Put many resolutions in your corporate record book concerning everything you do, and you will be protecting both the corporation and the individual stockholders. d. Articles/Bylaws: The Corporation must comply with the rules and regulations set forth by the corporation in these documents. Study them closely, comply with them, and again, you will be observing corporate formalities. Nothing about a corporation is irrevocable. If you as a majority do not like either of those documents at any time, or you think they should be changed, it’s very e. Comingling business and personal funds: The corporation must have its own checking account for business purposes only. Do not pay personal expenses out of the corporate checking account. For instance, do not write a corporate check for groceries. Do not write a corporate check for cash, without an explanation as to where the cash went. Keep your accounts clean. Also, for tax reasons, it is vital to put adequate explanations on the corporate checks you write and to have receipts or cash tickets to back them up. For example, in the case of a company car, the corporation pays all the expenses, and the checks must be made out so this is readily ascertainable. You, as an individual, may be reimbursed by the corporation for cash tickets for gasoline, oil changes and so on. So, when the corporation writes you a check for those items, the check should be identified as “Reimbursement for cash tickets attached”, and they should be listed. This procedure keeps personal and business monies separate and helps to keep your accounts clean and your records straight.
delivery receipts, contracts or other items of indebtedness, always sign everything “XYZ Corporation, by John Doe, President” (or Secretary, or Treasurer, or whatever your capacity is). This gives public notice you are signing as an officer of the corporation and not as an individual. This is one of the formalities that prevents piercing of the corporate veil. If you sign as an individual, anyone can say they thought that’s what you obviously intended, because that is what you wrote. By signing as an individual, you are standing alone. Ultimately, please know that in order for your company to be treated like a corporation, your corporation must look and act like one. You can easily attain this type of asset and liability protection through maintaining sound corporate records on a consistent basis. In conclusion Remember to keep all of your business records including receipts, financial documents, major purchase agreements, documentation of hiring and firing employees, and any other records related to the tax deductions you plan to take, in a safe place preferably in a binder where you can prevent exposure to wear and tear from happening. Also, word to wise—back up your documents on your computer or flash drive. And, for triple protection, take a picture of your records and receipts! This way you are fully protected from a natural disaster, losing documents in a home or office move, or an honest human error. Start implementing these important tips today and you’ll be well on your way to preventing yourself from experiencing a devastating audit or lawsuit. Don’t learn something like this the hard way. Protect yourself, plan ahead, and be prepared before the storms hits.
f. Proper signatures: When you sign anything on behalf of the corporation, such as invoices, SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 27
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EDITORIAL FEATURE
Starting Email Marketing? Beware These 4 Roadblocks By Craig Klein / CEO, SalesNexus.com
B
usinesses that have a human to human sales interaction with other business customers can be somewhat traditional in their marketing approaches. Many B2B sales teams live and die by old school sales strategies – cold calling, networking and relationship building.
you squarely into the premium category of most email marketing providers’ pricing structures. A business that starts off with the entry level package from Constant Contact, Swift Page, iContact, or Vertical Response will quickly be faced with upgrading to much more expensive packages.
capabilities but, there are additional charges and limitations apply.
Those sales teams that choose to dive into the world of technology to improve their results usually start with a contact management system or CRM (Customer Relationship Management), dabble with LinkedIn, Twitter, etc. and perhaps even try some modest email marketing.
Who Is In Charge of Email Marketing?
Opting Out of Your Email Marketing Service is NOT Easy
Plus, most of these systems are limited to one user. That means only one person on the staff can take advantage of the service. Adding access for another user can sometimes double the cost.
A business cannot simply discontinue service with one email marketing service, export their contact list, then import it into a new service and hit go. In most cases, the new email marketing provider will require the entire list to “Opt-In” again. This is a significant risk in many ways. It will be an annoyance at best to the recipient. It may result in a diminished opt-in list and it’s a big, time consuming hassle.
The email marketing tends to be limited to something like a quarterly newsletter. The e-newsletter is much like a “toe in the water”. However, a newsletter is not likely to generate tangible opportunity for sales people very often. What’s worse, those bold enough to jump into the email marketing pool quickly learn that the $20/month email marketing service they signed up for gets very expensive when they start to send a lot of emails.
How Many Emails Can You Send? If a business has 1,000 customers they may want to send an email to them once a month. Plus, they typically have 250 prospects in their sales pipeline at any given time. After a few months, they may have built up a list of potential customers that’s easily 1,000 or more contacts and prospects typically get emailed more frequently so, within 3 months the overall email volume desired could be 3,000 to more than 10,000 emails. And surprise! This type of volume puts
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So, all of a sudden, if you’re going to make it work, there’s someone on the staff spending hours per week moving in information from the sales team, creating campaigns and managing them. For a sales driven business, there is still a great challenge in simply keeping the email marketing system lists up to date based on changes in client and prospect status and new leads as the come in.
How Do I Manage Leads from My Website? For the businesses spending money to increase the visibility of their website online and in search engines and capture leads from the website, the challenges and limitations mushroom. Constant Contact, Swift Page, Vertical Response, iContact and virtually all email marketing providers can capture leads from your website but, additional charges apply. In addition, most businesses investing in online lead generation quickly learn the value of on-going lead nurturing campaigns. Some of the vendors mentioned above have “auto-responder”
For B2B sales teams, the lead nurturing emails need to be coordinated with sales activities. That’s very time consuming and difficult in most simple email marketing systems.
Of course, every sales person is sending emails to prospects and customers every day. Businesses can improve sales results quickly by starting with managing and automating those “sales emails” and building toward more sophisticated email marketing campaigns. SalesNexus just released an ebook called “Grow Sales with Emails, 7 Ways Sales Teams Win with Email Marketing ” that provides some simple examples of how to start leveraging email marketing to grow sales, simply and affordably. Craig Klein is the founder of SalesNexus.com. For more information visit www.SalesNexus.com
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 29
Gilbert GarzaG ERNEST DESIGNS Maximizing One's Image with Custom-Made, Old-World Quality Clothing for Executives-On-The-Go By Barbara R. Davis
S
hopping for suits was kind of a nightmare for Gilbert Garza. When he would go into a men's clothing store in search of a suit for business or a special occasion, there was usually only one or two he could select from. Then the salesperson would say, “Let's go pick out your shirts.” The shirts would always fit poorly. With the correct collar size, the shirt was usually too baggy and the sleeve length invariably too long. Gil again would find the choices quite limited. How many men go through the same experience when shopping for a suit and accessories to go with it? It is no wonder that Gil Garza eventually became an expert custom clothier/wardrobe designer who makes “house calls” to the executives-on-the-go in Houston, helping them create their individually designed, custom-made wardrobe with old-world standards of quality at the best price possible.
ERIC KLEIMAN PHOTOGRAPHY
Gilbert Garza grew up in Corpus Christi, Texas and graduated from the University of Texas with a degree in Psychology. When he graduated, he was offered a job working as a real estate appraiser, which he did for four years. During that time, he had a gentleman call on him whose company specialized in custom clothing for men. Gilbert was thin as a rail and had difficulty finding clothing that fit him properly, so he loved the concept and convenience of the service that the gentleman offered where he would meet with Gilbert at his office, make recommendations for his wardrobe, and then custom tailor all of his clothing to his exact measurements. For the next two years, Gilbert purchased clothing from him because it saved a great deal of his time by not having to go shopping. On the last visit to his office, Gilbert expressed a desire to be doing something other than real estate appraisals, so the gentleman suggested that Gil come and work for his company. Gilbert thought to himself that the concept was unique and different and he liked the benefit of custom-made clothing. In addition, he liked that he would have the opportunity to rub shoulders with people he would not normally have the opportunity to meet with such as community leaders, successful businessmen, corporate executives, and professionals at their office. So Gilbert joined the company that following month and continued to work for them for the next nine years.
“I love that I no longer have to spend my day shopping with my husband for a new suit and then also having to find the right shirt and tie to go with it. G Ernest Designs is a wonderful service that is convenient and time-saving. In addition, Gil has great taste! Retail stores fit a man based on his pants size or his chest size but usually not both. My husband is 5'7” but his girth is on the larger spectrum, so he has to get a suit that is meant for a much taller man. There is no comparison in how an off-the rack suit fits him even with alterations compared to one of Gil's bench-made suits which are 'to die for!' My husband looks so great wearing a G Ernest Designs suit that many men come up and compliment him at the many events we attend and all the ladies come up and flirt with him as well!!!” ----Barbara Davis-Levine, wife of Small Business Today Magazine Executive Publisher SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 30
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interlining in the world so that the shirt can be worn 50 to 60 times before it has to be disposed of from being worn-out as opposed to having shrunk.”
In 1990, Gilbert decided to start his own company, G. Ernest Designs, and continue on with that particular service but take it to a whole new level. This February marks Gilbert’s 30 year anniversary in the custom clothing design business. His company tailors high quality bench-made suits, sport coats, custom shirts, slacks, tuxedos, top coats, and just about anything else his clients desire.
Gil's concept is to work with an individual over the course of their career to make sure they always have the right clothes in their wardrobe for whatever lifestyle event they are attending; important board meetings, inter-office business meetings, dinner meetings, business casual luncheons, or a formal event. Their wardrobe is always balanced based upon their individual lifestyle. Gil also takes into account the image that the client feels is important to convey to the people that they do business with. For one client, it might be a wardrobe of suits. For another client, it may be something a little bit more business casual with an emphasis more on sport coats with slacks or even jeans. Gilbert goes to great lengths above and beyond the standard in getting accurate measurements for his clients. Whether the client desires very high-end clothing or is someone who is more “value conscious,” Gilbert's quality standards are always the highest in the industry. Everything that he delivers to his clients is the highest quality product at the best price, so he is extremely competitive with men's clothing stores but he doesn't cut corners with the end product. In the age when most manufacturing companies are taking shortcuts in the manufacturing of their products which inevitably affects the quality of the garment, Gilbert still provides world-class quality bench-made www.SBTMagazine.net
ERIC KLEIMAN PHOTOGRAPHY
Gilbert calls on 95% of his clients at their office and the other 5% at their residence. He elaborated, “In addition to the clothing being custom -made to my clients’ individual measurements, together we select fabrics for their suits, sport coats, shirts, slacks, top coats, and formal wear like tuxedos and dinner jackets. These are successful business owners, professionals and corporate executives whose time is so valuable. My clients do not have the time to shop and most of them dislike going shopping, so having a custom clothier go to their office and be able to attend to their wardrobe needs is a great value to them.”
When someone is making an investment in the building of a business wardrobe, it is imperative that the quality selected insures its longevity. G Ernest Designs always provides expert help in giving the client the best quality fabric at the best price from the finest sources such as Holland & Sherry (England & Italy), Dormeuil (England), Vitale Barberis Canonico (Italy), E. Thomas (Italy), and others that individually select only the finest wool supplier and mills of the world to produce their fabrics.
garments. There are no shortcuts. Horsehair, floating canvasses are used in the chest piece of the coats and single needle stitching in his custom shirts. The highest quality materials are used for the fabrics, threads, trimmings, and linings for each garment.
The bottom line is that G Ernest Designs provides time-saving convenience, expert consultation, and a custom tailored fit for their clients. G Ernest Designs gives the client a vast selection of fabrics to choose from which allows Gil to better coordinate outfits for them so that they are perfectly dressed from head-to-toe.
To have the right shirt; to have the right suit; and everything fit correctly is so important. Clothes do make the man. When a man In today’s market, designers are taking wears a custom fit garment, people will walk shortcuts in the manufacturing process. In up to him and tell him how great he looks. order to keep their prices competitive, they're When he looks great, he feels great, and fusing their garments; they don't put a performs better! Wearing a fine quality floating canvass in their suits that sell under garment is a true experience that no words can $1,700. Suits made with fusible backings describe. It's the “Wow Factor.” It's sexy to can break down more rapidly in the cleaning women and its power to men. It upgrades and pressing process. Also, the majority of one's image. That is the difference between shirts are made with fusible interlining in the off-the-rack and custom-made. No longer collars and cuffs. When one of these shirts does one have to settle for what's available; is laundered, it can experience excessive shrin- the choices are unlimited. No longer does one kage since the cleaners do not tumble dry on have to dress like everyone else in the the medium heat setting nor do they medium marketplace. One can choose to convey the heat press it. image they desire based on whatever their imagination will allow! Instead, they take the shirt out of the spin cycle of the washing machine while it is still damp For those desiring a “house call” to and then press it at a much higher temperature than what the manufacturer calls for that maximize their image with the finest quality cotton fabric. This process dries the body of clothing at the best prices, please contact the “master-of-style,” Gilbert Garza, by the shirt but can leave the collars and cuffs phone at 713-206-4555 or by Email at slightly wet and because the collar and cuffs gilgarza@gernestdesigns.com. are fused, they have a tendency to shrink as they dry. This shrinkage continues with every cleaning. After 15 to 18 cleanings, the shirt’s collars and cuffs will shrink ½” to as much as ¾” beyond it’s listed size. Imagine the fit after being laundered 20 to 25 times; pretty snug! Gil states, “When we custom tailor a dress shirt or casual shirt, we do not use a fusible interlining in the collars and the cuffs. We use the finest quality woven Swiss cotton
You can also visit G Ernest Designs on the web at www.GErnestDesigns.com SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 31
EDITORIAL FEATURE
You Are What I See, or Are You? By Jane Seaman AICI FLC
A
n important initial connection can be made when we meet someone for the first time. In seven seconds we can make up to eleven impressions purely based on what we see. When visual contact is made we will immediately start to decide if a person is credible, likeable, trustworthy or, capable. People may be attracted to the eyes, or a smile, however, the majority of our decisions are based on visual contact formed by the clothes we see. We will make more decision with our eyes, than we do with our ears! We may have read about a person's skills and achievements, or heard the same through a colleague or networking group, but the ultimate decision as to whether we want to connect with someone will be based on what we see, not what we hear.
Most people can relate this point to selling a house. Who hasn't heard about 'curb appeal' or 'staging'? We may hear from a professional realtor that a house, based on our needs, is a perfect size, and in a perfect location. But if the curb appeal, or staged interior, does not
appeal to us visually, then what we hear from a professional becomes irrelevant. We will make an important purchase based more on what we see, rather than what we hear. So, when it comes to a professional presence; how's your 'curb appeal' and 'staging'?
with professional. Poor fit, poor grooming. We associate both with lack of care. Clothes too casual equate to casual attitude. Too many accessories, extremely high heels, novelty ties. These items are all distracting and take the focus away from one's professional ability.
You are what I see, or are you? It is important when considering our professional presence that we are aware, and understand, the messages our clothes project and that those messages are consistent with our abilities. There is a thin line between ability and credibility! We know our own abilities, but are they recognizable to another's eye when they see us for the first time? Can our credibility be seen? Clothing is a tool we can control, and use to help us achieve a consistency between visual credibility and our actual ability.
There is a simple test you can do to note the messages your clothes project. Dress in your professional attire and stand in front of a full-length mirror. Close your eyes. Count to five. Open your eyes. What do you see? Ask yourself, "Do I see my abilities and values reflected in front of me?" Are you what you see? Our clothes tell our story. You have the opportunity to be a bestselling author. To learn more about Jane Seaman, visit www.imagineconsultancy.com
The Harvard School of Business did a study on how we lose credibility through what we wear. Some of their findings were: large or floral patterns. We tend to be distracted by these and we do not associate them
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 32
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 33
Fidelity National Title
TM
Fidelity National Title – Galleria
“Exceeding Everyone’s Expectations with a Big Smile!”
PHOTO BY HERBERT HOCHMAN PHOTOGRAPHER
®
By Barbara R. Davis
F ew title companies have the financial strength that Fidelity National Title
Company does. A lot of title companies have come and gone but Fidelity has been around over 150 years and is still going strong. They insure approximately 46% of all transactions in the US with nearly a 31% national market share. The most important aspect that sets Fidelity apart from other title companies is their people and the Galleria office is truly the crème de la crème! Their goal is to exceed everyone’s expectations, always putting the needs of everyone involved in the closing first, and treating them like family. Everyone who enters is sincerely greeted with a big smile and a plateful of goodies! Each closer at the Fidelity Galleria office has a minimum of 15 years experience in the industry. They understand that every customer is different, so they tailor their services around each individual client’s wants and needs including Spanish-speaking closings. They do the preliminary HUD’s for the Realtors® and send out questionnaires to both sellers and buyers to avoid any surprises at closing. They utilize any materials that the client already has to avoid any additional costs including existing surveys when possible.
“The moment I first walked in, I felt like I had just returned home to my family after being gone for awhile. They immediately acknowledged my arrival with a big hello and smiles on their faces. They introduced me to each of their staff and made me feel like I was important and that my clients were equally important. I love that they are so warm and friendly and that they are so detailed in every little thing they do...the snacks, the warm cookies, the ambiance.� They did everything they possibly could to accommodate me and my clients achieve a stress-free transaction.” ----Yvonne Walker, Realtor® for RE/MAX Space Center
In addition, they do mobile closings and can even do them on site at the property being purchased! They also provide each client with a complimentary one year credit
monitoring service through Experian. Last but not least, Client Relations Specialist, Yvonne Cooksley communicates with each agent before, during, and after the transaction to assure every aspect exceeds their expectations. Branch Manager, Kelli Owens, shared, “I believe in family first and my office is an extension of my family. These are the people I am responsible for. I love them dearly and I want to make sure they are cared for and are happy. We do a lot of things together including sponsoring a family for the holidays.” Kelli is extremely thorough in training her team so that they stay on top of their game. Every week, everybody picks one of 500 cards that are a study aid for Realtors® getting their license. They learn it and then teach everyone else in the office about it. Kelli regularly has “Lunch and Learns” for the office teaching them about credit repair, how to read surveys, title commitments, appraisals, etc. Realtors® are always welcome to attend these classes, too.
For more information, go to www.FidelityGalleria.com or contact Kelli Owens by phone at 713-966-4050 or by email at kelli.owens@fnf.com. Become a fan of their FaceBook Community Page at www.facebook.com/#!/pages/Fidelity-National-Title/210076055718002 3005 W. Loop South, Suite 250, Houston, Texas 77027. | PG 34 www.SBTMagazine.net SMALL BUSINESS TODAY MAGAZINE APRIL 2012
PHOTO BY HERBERT HOCHMAN PHOTOGRAPHER
Permanent Life Insurance from Northwestern Mutual stands the test of time. It’s an asset that offers protection, along with cash value that’s guaranteed to grow. All from the only company in the industry that has paid more than $70 billion in dividends over the last 25 years. That’s a foundation for life. Austen Spoonts Financial Representative (972) 980-2000 nmfn.com/austenspoonts
05-3024 © 2012 Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) (life and disability insurance, annuities) and its subsidiaries. Austen Ryan Spoonts, Insurance Agent(s) of NM. SNL Financial 2011 & A.M. Best (Historical 1987 to 1996). Limited to ordinary and group life insurance dividends. Dividends are reviewed annually, subject to change and not guaranteed.
EDITORIAL FEATURE
Social Media: The Friendliest Vehicle
SOCIAL MEDIA
By Aimee Woodall
I
f you think about the words “social media,” they roughly translate to “friendly, outgoing vehicles or means.” And, with that definition in mind, smart businesses are adopting these “friendly vehicles” to augment their marketing efforts. It’s inexpensive, easy and a great way to reach a large number of people quickly. But there’s more to social media than creating an account and speaking in 140-character increments. As with anything else, to make the most out of your tweets, posts and updates, you have to be strategic.
Frequency You wouldn’t watch a TV show that came on once a year. You wouldn’t be close friends with someone who called you every six months. It will be hard to see the benefits of social media (and there are many) if you don’t use it regularly. The crux of effective social media is the relationships that it fosters – relationships that keep your business top-of-mind and connected to its target audience. Lack of communication on your end will cause online relationships to dwindle rapidly, and everything you say will fall on deaf ears.
Tone and Voice We’ve all heard the heated political debate about whether or not a corporation is a person. While corporate personhood has plenty of opposition in the broader realm, in marketing, it is uncontroversial. If you’re doing things right, your company has a voice, a personality, likes, dislikes and interests – just like a living, breathing human. So, in all of your marketing collateral, but especially in social media, use a distinctive (professional, yet distinctive) tone and voice to illustrate the factors that distinguish it.
Content You already know that your business is a “person” (at least on social media). What’s even more important is that your business becomes a very interesting person – and an industry expert. Share articles about your trade, comment on relevant current events, provide an intelligent opinion and give your followers insight into you the inner-workings of your company. Speaking entirely in the first person is an easy way to lose followers, so make sure your posts are packed with things that will make people click, share and engage.
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Crisis Communications and Customer Service Tone, frequency and content all contribute to relationship building, and as with any relationship, it will truly be tested when the going gets tough. Disaster is inevitable, but it doesn’t have to be insurmountable, as long as your company maintains transparency. Social media provides an excellent platform for public apologies, troubleshooting and the management of a potentially destructive story. Remaining honest and responding gracefully to questions and complaints give people the impression that your business’ cards are on the table and that you care about their satisfaction.
As your social media strategy evolves, don’t hesitate to explore new online platforms using photography, video and images. The heart of social media is found in the connections you make with your clients or customers, fellow colleagues or unexpected vertical markets, so remain open to new ideas and changes. Follow these rules, and social media will be the friendliest vehicle you’ve ever driven.
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over one hundred countries, and proud to give back to the community, the state, and the country which gave me the opportunity . . .the U.S.A. In fact, I am proud of everything in my life, my family, my team, and being on the board of directors of the National Defense University Foundation.” This love of country was the driving force which prompted him to become a candidate for governor of the State of Texas in 2010.
Farouk giving a speech on the campaign trail while running for governor and arranged for the two men to meet. Shami arrived at the meeting with Beverly Morrison, the “First Lady of SunGlitz” and two boxes of the product. Having been allotted only fifteen minutes, Shami made his pitch and then left the SunGlitz with McCall. The head of education for Armstrong McCall at the time was Tawanna Durham, who stayed up all that night so she could experiment with the hair color. “It was an instant hit and the rest is history. A lot of people will start out with a new product, but very few have the success that Shami has had. Because of his main interest being the health of hairdressers, he has developed products which are also environmentally friendly. More recently he has developed a hair smoothing procedure, CHI Enviro American Smoothing Treatment, using formulas which do not contain formaldehyde. Product brands such as Brazilian Keratin, Cadiveu, and Marcia Teixeira, contain high amounts of formaldehyde which are extremely hazardous for hairdressers,” stated McCarthy. After his meeting with Shami, John McCall was so impressed with Shami’s products www.SBTMagazine.net
that Armstrong McCall, one of the largest distribution companies in the country, began delivery of the products to local hairdressers, quickly expanding into seventeen other states. McCall introduced Shami to other distributors nation-wide and has since become his business partner.
Farouk Shami sincerely believes it will take dedicated business owners to re-build the economy. He has now assumed the role of statesman and will continue to create jobs for Americans and provide philanthropic support on a worldwide scale. As evidenced by his history, if there is a need in the world, Shami will be there to lend a helping hand.
Shami’s passion transcends the walls of Farouk Systems. He loves being an American. When asked what he is most proud of, he stated, “I am proud to be an American, a Texan, a hairdresser. I am proud to be able to create jobs, to export my products to
This photo was taken of Farouk with Kim Kardashian and Kris Jenner and associates at the home of Haitian President Michael Martelly during a recent relief trip. SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 37
Connecting Houston Home
PHOTO BY GWEN JUAREZ PHOTOGRAPHY
Christy Stratton “It’s All About the Feeling”
Christy Stratton - Connecting Houston Home By Barbara R. Davis
IN
the highly competitive real estate market, it can be challenging for Realtors®, Builders, and Developers to properly market to potential home buyers and get the desired results. Over the years, marketing has changed and buyers and sellers are deluged with a plethora of information and mediums. Christy Stratton, who has been a marketing director for builders and developers for nearly 20 years, saw the need to connect consumers to homes in a genuine, inviting way and “Connecting Houston Home” is the fresh, new approach she has developed that makes the consumer feel “at home.” Explains Christy, “Through video and social media, I felt I could create something that would be more personable about communities and about homes.” Christy makes the viewer feel like they’re friends chatting about the house and the community. Having been a Realtor® and marketing professional for many years, Ms. Stratton knows what should be conveyed in the video and personally researches and writes each script per the buyer profile. These ‘experiential video promotions’ are extremely different than a virtual tour. They are also quite different from the videos made by companies that send out a ‘face’ who's just reading a script. The difference is that Christy talks from the heart about something she loves. In addition, as a well-experienced real estate professional, her ‘third-party’ testimonial is very credible.
website. They can also cover events and interview those who are on the scene and follow up with a QR code that goes to a specific landing page. The great thing that they bring to the table is marketing strategy and the understanding of the real estate market.
“As more and more people choose or ‘watch’ the web rather than ‘read’ the web, it’s refreshing to have a resource like Connecting Houston Home to create content that adds value to our marketing dollars.”
in outlets such as Facebook and YouTube as well as our own managed website." If you would like to ‘connect home’ with Christy, she welcomes the opportunity to sit down and talk about what works best for you… something that fits in your budget, something that makes consumers feel at home, and ultimately helps you sell your home faster.
----Todd Frederking First Texas Homes Houston Sales Manager
It's a great PR tool that is not only affordable, it's cost efficient, and it has a long shelf life. Ms. Stratton’s clients receive the files and a link of their videos that are posted on YouTube. The beauty is that when they're posted on YouTube, Google loves video, so your natural-born SEO is right there! As long as it’s placed right, you get to the top of the list much more quickly. It can also be included in a QR code in print media, broadcast email, your email signature and more.
Client Pulte Homes shared, "Connecting Houston Home has been a wonderful partner to work with as we introduce the world of video as a means of PR You can reach Christy by into our marketing mix. Through phone at (281) 658-2335 or very well-executed video, commenConnecting Houston Home also drives the tary, and photography, the product by email at consumer from the video to the client’s provides us a compelling voice www.SBTMagazine.net SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 38 christy@connectinghoustonhome.com
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EDITORIAL FEATURE
Eliminating Your Obstacles
WINNERS CIRCLE
By Four-Time Olympian Ruben Gonzalez
S
uccess is about getting from point A to point B. It's about knowing where you are and knowing where you want to end up. Success simply means you set a goal and you reached it. Success is simple but not easy. Most people allow fear of failure to keep them from even attempting to pursue their dreams. They don't understand that failure is part of the price of success. You need to expect to fail and fall short many times before you reach your goals. That's just how life is. Since you will have many failures on the road to success, it is very important to learn how to remove the obstacles, roadblocks, and bottlenecks that are between you and your goals. Once you have decided upon a goal, write down all the obstacles that you think might be slowing you down. Now focus on finding solutions to your obstacles. This might sound simplistic, but the fact is that if you focus all your energy into attacking your obstacles, you WILL eliminate them and will accelerate your progress. Einstein said that you cannot solve your problems with the same level of thinking that created them, so you will need help. This
is where having a mentor or a coach can help you win more. Successful people don't quit. They simply focus on finding solutions to their problems. If you want the outcome bad enough, you'll figure out a way. And every time you find the solution to a problem, your 'solution-finding' muscles get stronger. Solution finding is a skill that will improve with use. There are bottlenecks on the way to every goal. Your ability to look ahead and remove bottlenecks will help you reach your goals faster than you can imagine. You can anticipate bottlenecks either through your experience, or through the experience of your mentors. Typically, 80% of the bottlenecks will be within you. You are the biggest barrier to reaching your dreams. Successful people understand this. That is why they invest so much time in selfdevelopment. Successful people understand that the better they become, the better their results will be. Fear and doubt are the two things that keep most people from having the courage to succeed. Most people simply don't believe in themselves. That is why the books you read and the people
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you associate with can have such a huge impact in your life. One way to overcome fear and doubt is by acquiring knowledge and skills. If you know how to do something, you become more confident. The knowledge comes from what you read and from who you associate with. Once you determine what obstacle is holding you back, set a goal of overcoming that obstacle. By setting a goal to remove an obstacle, you are taking control of your life and your results and confidence will improve. Don't just set a goal. Set a deadline, come up with a plan, and get to work. Once you remove the major obstacle that is holding you back, you will start making quantum leaps towards your goals and dreams. Put it into action: Identify bottlenecks that are keeping you from achieving your goals and tackle them one by one. Consult with your mentor or your coach on the best plan of attack. Ruben Gonzalez is an award winning keynote speaker and author. You can contact him at 832-689-8282 or visit his website at www.StartWinningMore.com
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EDITORIAL FEATURE
Back to the Future for Small Companies By Jeff Solomon
D
uring the last Century, economic growth in the United States was unparalleled. A large portion of that growth came from the explosion of capital formation for small companies. It is high time that America gets Back to that Future. In the U.S., we’ve been on a search to find the right financial regulation necessary to ensure markets operate properly, protect investors and provide for growth. There’s no question that regulation is essential – we’ve seen the consequences of allowing for markets to operate without proper controls. However, in recent years we’ve also seen unintended consequences from the burden current regulations have put on America’s biggest job creators – new public companies. Today’s regulatory environment has made it difficult, and often financially disadvantageous, for small companies to go public, reducing the number of public companies in the U.S. significantly over the past decade. So, it’s time to modify and evolve financial regulation to encourage capital formation, foster job creation in the U.S. and lessen our dependence on fiscal spending to reposition the country as an emerging growth economy. Now, more than ever, the U.S. needs to allow for capital formation to thrive again. The President’s Council on Jobs and Competitiveness recently released a report recommending that the government reduce regulatory barriers and provide financial incentives for small and mid-sized companies to go public so that they may have better access to stable and secure financing to support growth. Importantly, the report noted that 90% of job creation for public firms occurs after they’ve gone public.* It doesn’t matter where you are on the political spectrum – capital formation through IPOs is just plain good for the economy. Over the past decade, the price of becoming or remaining a public company has become unnecessarily burdensome – especially for small and mid-sized companies. The IPO Task Force’s October report to the Treasury Department estimated that “…the average cost of achieving initial regulatory compliance for an IPO at $2.5 million, followed by ongoing
compliance costs once public of $1.5 million per year.”** While that may not seem like much money for large organizations, the report also noted that the cost of being public can significantly reduce cash and market cap size of smaller companies. This, in turn, has negatively impacted job creation in the U.S. by stifling private companies on the verge of expansion into the public markets. I speak with private companies and their investors on a regular basis about their frustration of not being able to access public capital markets for growth. Despite opportunities for sustainable growth, given the right financial resources, these companies are incentivized to be acquired by larger public organizations. As the Jobs Council report notes “…fewer high-growth entrepreneurial companies are going public, and more are opting to provide liquidity and an exit for investors by selling out to larger companies. This hurts job creation, as the data clearly shows that job growth accelerates when companies go public, but often decelerates when companies are acquired.”* Not only do regulators need to re-examine the environment to allow companies to go public, we need markets that support small companies so that they can sustain themselves as public entities. Market liquidity is a major concern for investors in small-cap stocks. Conversion to a decimal system from a fraction system made sense for some in 2001, but it’s an area where we once again find a set of unintended consequences. Reduced profit potential from trading in smaller increments and a lack of transparency has made it less profitable and more risky to be a market maker in the small cap companies. What was meant to reduce execution costs for investors, by forcing brokers to make markets in pennies rather than fractions, has actually had the effect of reducing liquidity in the small cap universe. In turn, this lack of liquidity, which has increased single stock volatility and made it less attractive to invest in small cap stocks, has pushed institutional investors away from small cap growth markets. These investors are the foundation of capital formation as
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buyers of small cap IPOs. Without adequate profit incentive for buyers and sellers of small cap stocks, it will be difficult to return to the days when IPOs were aplenty and capital formation was prevalent. As David Weild, former Vice Chairman of Nasdaq and overseer of capital markets research at Grant Thornton said in a recent interview, “One-size-fits-all stock trading has become a disaster for all but our nation’s largest companies…” as trading volumes in small capitalization stocks has declined precipitously in recent years. The good news is that there are solutions to these problems – modify Sarbanes-Oxley to scale back the requirements and costs associated with being a small-cap public company. Small cap companies should not be expected to incur the same compliance and expense burden as mid or large cap companies. Coupled with a small cap exchange that trades in wider increments than pennies, which will bring necessary liquidity back to the small-cap marketplace, there is a real possibility to enhance capital formation efforts in this country by re-igniting the IPO engine. Making these changes will also stimulate job growth by allowing small companies the opportunity to become large, public organizations that can advance their businesses in the U.S. It is time for the regulators to make public markets more attractive for small companies that are most in need of support for growth. In doing so, America can finally get Back to the Future. *Source: The President’s Council on Jobs and Competitiveness, Interim Report Taking Action, Building Confidence **IPO Task Force Presentation to Treasury Department, October 20, 2011, Rebuilding the IPO On-Ramp – Putting Emerging Companies and the Job Market Back on the Road to Growth Jeffrey Solomon is Chief Executive Officer of Cowen and Company. Currently, he is also a member of the Committee on Capital Markets Regulation.
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Making Connections Count
Linking women business enterprises (WBEs) with corporate purchasers, government agencies, and other women-owned business for the primary purpose of creating connections and building strong business relationships. As an attendee you’ll have the opportunity to meet qualified suppliers and establish business relationships and partnerships that will help grow your company’s supplier diversity programs.
The two-day event features: • Various business workshops • A wine and hors d’oeuvres reception the evening prior to conference • Over 150 exhibitors and 1,200 event attendees • One-on-One sessions with potential WBE suppliers and corporate buyers • An Awards Luncheon that recognizes WBEs and corporate members for their accomplishments • A silent auction that includes procurement luncheons with some of Houston’s top corporations.
Reliant CenteR / may 16-17, 2012 / RegisteR now!SMALL wbea-texas.org/conference BUSINESS TODAY MAGAZINE APRIL 2012 | PG 45 www.SBTMagazine.net
Milly Kammerdiener— Newhomeprograms.com “Faith will Make it Happen”. By K Pica Kahn
She is driven by faith, and the result is new homes for many who thought they could never qualify. A Realtor® just over two years, rising star Milly Kammerdiener, has closed more than $7 Million dollars in real estate while building up a national real estate brokerage. Milly B. Kammerdiener Real Estate Broker/Owner Newhomeprograms.com part of this job and the reason I wanted to become a Realtor®, is seeing the joy that owning a home brings to people”, she said. “I am from Venezuela, and I believe in the American dream. This motivates me, not the money. The money is to share through tithing and community involvement.” Kammerdiener, who worked for a development company in the Woodlands before working in mortgage lending, brings that experience to real estate.
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“I walked in looking for a home, and I walked out feeling as though I had found a friend and and a place to worship. Thank you Milly and everyone at Newhomeprograms.com, who played a part in my owning a home. God bless.”
Within 32 months of starting her career in real estate, she completed her Texas Real Estate Brokers license, Florida Salesperson license, Graduate REALTOR® Institute "GRI" & Accredition buyer Representative "ABR" designations which affords her clients a higher level of customer satisfaction. In the near future she will be obtaining the Certified International Property Specialist “CIPS” designation which will allow her to fulfill her desire to expand her business throughout the Latin Americas.“I tell my clients, have faith and perseverance and you will obtain your dreams.”
--Kenya and the Kater family
Recently this year, she and her husband Cory have opened their second brokerage office which serves the needs of first-time home buyers in Houston, TX and now in Tampa, FL. “My finance background has helped me the most. I have seen miracles happen concerning credit issues for people who never dreamed they could buy a home. I tell them it isn’t me; it is God.” It would seem that Milly is the instrument used by God to make dreams come true.
With previous hopes of studying medicine, she now sees that real estate is her calling to serve God while helping others.
888-907-3334
Milly.Kammerdiener@Newhomeprograms.com www.Newhomeprograms.com
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EDITORIAL FEATURE
Doing Business with Harris County's Finest! By Sheriff Adrian Garcia
of every nature and description. In an effort to stimulate competition, we want to provide all interested vendors an opportunity to offer their products and services. We are constantly looking for new sources of supply and encourage vendors to register with a Harris County Purchasing agent, at www.hctx.net/ purchasing.
As the Sheriff of Harris County, I have serious responsibilities such as protecting citizens that live in an area which includes 1.5 million residents; protecting the criminal and civil courts; overseeing the County Jail that holds a daily average of 9,000 inmates; and managing an approximate $400 million operating budget. However, the Sheriff’s Office is also a vital economic development center as well. Our 4,000 employees work and live in and around our county and make purchases that help our local economy. The Sheriff’s Office engages in contracts and agreements for a variety of products and services. Further, when I became the Sheriff of this great community, one of my main goals was to run the Harris County Sheriff’s Office (HCSO) like a business as much as possible. As a result, many good business people with good products or services have helped me keep the community safe and stay on budget! My office works to engage the local business community as often as possible when contracting opportunities present themselves. I developed a Small Business Advisory Group and through them I work to inform the local businesses on how to do business with the HCSO. Understanding that much of our work is very industry specific and that local capacity sometimes may not exist, nonetheless, we do work hard to identify opportunities that may be of interest to our local business community. Those opportunities have included food products, personnel services, and uniforms just to name a few. The following are the basic steps and the processes by which an interested business can go about to compete for a contract with the HCSO: • The demand for goods and services within the Harris County Sheriff's Office results in a continuous need for items
• Harris County encourages all segments of the business community to participate in its purchasing program. • This is intended solely to provide general summary information to those wishing to do procurement business with the County and all procurement activity is performed in accordance with applicable laws, Code, and other applicable rules and regulations. •
The Harris County Purchasing Agent is responsible for all HCS0 purchases in accordance with TX LGC 262. Informal purchases are prepared by HCS0 Purchasing staff for final approval by the HC Purchasing Agent.
• The HCS0 Commissary Purchasing Agent is responsible for all Jail Commissary purchases in accordance with TX LGC Chapter 351.0415. The Jail Commissary purchases consumables and other hygienic products that are provided for resale to the inmates. • If you would like to have your product considered for resale in the Jail Commissary, please contact the HCSO Jail Commissary Buyer at (713) 755-5675 or via email at commissarypurchasing@ sheriff.hctx.net.
follow all instructions and conditions. Failure to do so could result in rejection of your bid. • Submit your bid before the specified closing date and time. Late bids CANNOT be accepted. Initial in ink all erasures and corrections in bid documents prior to bid opening. If the intent or legibility of the correction is not clear, the bid may be rejected. • Include Bid Deposit with Bid Response, if required. Include supporting literature with bid response or quote. • It is important to understand that the Purchase Order is the county's official means of procurement notification. It is the policy of the purchasing agent to consider total cost when making an evaluation to determine the lowest and best bid. • Care should be taken when completing the formal bid package. Award recommendations are available through the Harris County Commissioners Court agenda published on the Friday preceding the Tuesday court date, at http://www.hctx.net/agenda. • Harris County does not certify vendors for Historically Underutilized Business (HUB) status. For more information, contact an agent with the Harris County Purchasing Office at (713) 7556695.
• Be sure that written quotations, requests, and bid documents are signed by an authorized member of the firm – otherwise they are not acceptable. Read bid documents thoroughly and
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EDITORIAL FEATURE
Successful Thinking Yields Successful Results By Ron Consolino
S
uccessful small businesses come in all sizes and specialties, but their leaders all share one essential attribute—positive, can-do attitudes that transcend everything they do. Believing in yourself and your ability to succeed does more than simply sustain you through the challenges of getting your business started. It also spreads through your company and beyond. When you “walk the talk” and follow through on your commitments, your managers and employees perform their jobs with more confidence. Vendors, customers, and prospects know that you’ll come through for them as well. Among the ways you can make successful thinking contagious in your business is by emphasizing long-term potential over shortterm thinking. Leaders of highperformance business innovate rather than hesitate, and shun the status quo as they seek to spark new interest and enthusiasm inside the business. They also encourage their staff to take risks, capitalize on
successes, and make and learn from mistakes. Sure, working productively will help build your business. But generating creativity and passion for what your business does, no matter how seemingly mundane, is a hallmark of a high-performance business. But these don’t need to be grandiose concepts. Simply going out of your way to help a customer in an unusual fashion qualifies. Emphasize the collective success of your business as a whole, not of any individual person, project or product. This will accelerate success by identifying a few profitable activities and making them happen more quickly.
The traditional thinking is that you shouldn’t tinker with something that isn’t broken. But in today’s competitive environment, you should always be looking for ways to improve your business – even “if it ain’t broke”. Be open to new ideas, even those that sound silly or outlandish. That off-the-wall suggestion just might be your “next big thing.” Make sure you reward people for extra effort with cash or noncash incentives—like time off or a company lunch. And, what’s the best way to find those preferences? Ask them!
Open the lines of communication. Generally, those around you need more information, not less, in order to feel successful. Let people know where you think the business needs to go, the problems it faces and what keeps you up at night. That makes it easier for you to involve them in finding solutions to your biggest challenges. Ask their advice about what you are doing right, what hurts and what needs fixing.
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est described as an electronic, online courthouse, CourthouseDirect.Com is a website that provides public records online for approximately 900 counties nationwide. Realtors®, Title Agents, attorneys, and individuals can eliminate surprises, cut costs, and save time associated with obtaining public records in a fast, affordable, and accurate manner by utilizing the services of CourthouseDirect.Com. In addition, for those who don't want to use the online service or who need more help in abstracting and researching land, the company has on-staff abstractors who can do the work for them. Not only is CourthouseDirect.Com committed to revolutionizing the delivery of courthouse information nationwide through the use of the internet, it is also a constantly evolving company with a diverse array of services. Beginning in1982, Paul Cones started an abstracting company called Courthouse Specialists. Over the years, it has evolved into one of several facets of parent company, CourthouseDirect.Com. These divisions include: Courthouse Specialists, which is their in-house abstracting company; Integrity Title Records, which is their database company that provides databases for Title Agents; Integrity Title Company, which is a licensed Title Agency that is quite unique because it doesn't do closings; and last but not least, CourthouseSquare.com, which is a way for real estate and legal professionals to network nationwide. Since Courthouse SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 52
Direct.Com began, Paul, who is the company President, along with his wife, Marian Cones, who is the CEO of the company, have united together in making CourthouseDirect.Com the unquestioned leader in their field. With over 60 full-time employees at the Houston-based headquarters, CourthouseDirect.Com has offices in Texas and Colorado. In Texas, the emphasis has been on building grantor/grantee indexes that one would find in courthouses and for the title insurance community, they build databases - title plant facilities. Using technology,CourthouseDirect.Com has essentially pushed the envelope on how people receive information online. If one was to look at the client list of those who use their databases to do searches, they would see that it's kind of the “who's who” in the real estate, engineering, surveying, and legal community. The fact that CourthouseDirect.com are abstractors and researchers really gives them an advantage in understanding what needs to be extracted from the record and makes their job of building the database really that much better. “CourthouseDirect.com are experts in the industry. They are the best source for land title information in Texas. I have a 30+ year relationship with Paul Cones, the President of CourthouseDirect.com, and I have a great deal of respect for him and the job that he does.” ----Walter Bering, Realtor® Martha Turner Properties www.SBTMagazine.net
MICHAELS PHOTOGRAPHY STUDIO
By Barbara R. Davis
Paul Cones, President and Marian Cones, CEO celebrating 30 years in the real property information and land title industry.
Integrity Title Records is the largest Title Plant provider in Texas and is b u i l t b y a n d f o r La n d Ti t l e professionals. Integrity Title Records provides databases for Title Agents because access to a Title Plant (also known as an Abstract Plant) is a requirement for licensed Title Agents in the State of Texas. An Abstract Plant is used as the basis for the issuance of title insurance policies in the State of Texas and consists of fully indexed records showing all instruments of record affecting lands within the county for a period beginning January 1, 1979. The indexes pertaining to land are arranged in geographic order. Integrity Title Records provides reasonably priced Title Plant access for the following Texas counties: Bexar, Brazoria, Cameron, Collin, Comal, Dallas, Denton, El Paso, Fort Bend, Galveston, Guadalupe, Hays, Harris, Jefferson, Johnson, Kaufman, Matagorda, Montgomery, Nueces, Parker, Potter, Randall, Rockwall, Smith, Tarrant, Travis, Victoria, Williamson, Wise, and more are in the works!
MICHAELS PHOTOGRAPHY STUDIO
For quite some time, Courthouse Direct.Com basically handled non-insurance type work including doing research for road widening projects, for pipeline projects, for cell towers, telecommunications companies, and just anytime there was need for any kind of land research. In 2003, they decided to provide these services to title companies, so they formed Integrity Title Company, a licensed Title Agency. CourthouseDirect.com is considered to be a different kind of Title Agency because they don’t focus on closings, rather a focus on land research catering to Title Agencies… They strictly focus on providing services to the Title Agencies doing title commitments - the title examination part of what a Title Agency does. For about 40 to 50 years, a few major title companies controlled the Title I n s u r a n c e m a r k e t o f Te x a s . Previously, in Dallas County, 14 title agents dominated that market. To be a Licensed Title Agency in Dallas County at that time, cost $25,000 a month for title plant access alone. When CourthouseDirect.Com came into the picture, they built a competing database and reduced the cost to about $1,500 a month in Dallas County. Now, the number of Title Agents there has increased from 14 to about 63! www.SBTMagazine.net
they they would go to the county, scroll down to that specific service that they want do business with, and then place an order with them immediately. They're also able to request a quote online. For instance, if one needed a quote on a ten-acre tract that they were surveying, they could ask three or four surveyors to send them a quote. Now that's an innovative way to do business!
Paul Cones, President and Jack Kelly, Systems Administrator at their TIA Tier IV Certified data center. “The courthouse that never closes!” “CourthouseDirect.com is a critical real estate data provider to our title agency. Not only do they provide the necessary title plant access to search real property courthouse records in an efficient, accurate manner, but they also provide data and documents for all of the other real estate research projects we do. CourthouseDirect.Com serves as one of the most comprehensive statewide solutions for real estate information, thus providing our title agency a broader reach than ever before.” ----Steven D. Black, President of The Accurate Group of Texas, a Title Agency
A Revolutionary, Diverse Company - Eliminating Surprises In the desire to push forward and provide the best resource for public records and title information, a new service was recently rolled out called CourthouseSquare.com. It was developed as an excellent source for real estate and legal professionals to network nationwide with one another with free access on a county by county basis. Traditionally, the Courthouse Square was the place where business was conducted. At the local Courthouse Square, one could find an attorney, a Title Company, or a Land Office along with the local cafe or barber shop. CourthouseSquare.com is where one goes to do business today. So, if one was trying to find a local real estate or legal professional in a county,
CourthouseDirect.com has the foresight to use technology in a way few have considered, garnering themselves a spot at the top. They're fortunate to have very talented computer programmers on their team to interpret what is needed by their researchers and abstractors. Realtors® and Lenders have an opportunity to own an interest in their own title agency through an Affiliated Business Arrangement and CourthouseDirect.Com can help them by showing them how to do it. In addition, CourthouseSquare.Com’s website allows Realtors® to list their services for free. They can also find other service-based companies on the website that they can do business with, saving them a lot of time by immediately getting quotes and comparisons. With CourthouseDirect.Com's revolutionary, diverse online services, a Realtor® can eliminate surprises and provide a great service to their clients by making it a practice of going on CourthouseDirect.Com and doing an adverse lien search. Whether the Realtor® gets a contract or is listing a property, a search early in the process will help make sure there aren't any surprises at closing or even after closing and sometimes the problem can be resolved upfront. The best thing of all is that searching is free. It pays to not only prequalify the buyer but to prequalify the seller, too! For more information on the diverse
services of CourthouseDirect.Com, contact Paul Cones by phone at 713-683-0314 or 713-683-0491, by Fax at 713-683-0493, or email at
pcones@CourthouseDirect.Com. You can also visit them on the Web at CourthouseDirect.Com.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 53
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Integrated Communications in Texas | Pierpont Communications, Inc. www.piercom.com Pierpont Communications knows how to influence the way people think about you and your brand — and this helps you grow your business. With offices in Houston, Austin, Dallas and San Antonio, Pierpont understands how businesses communicate in the Texas market.
Find out how Pierpont can help your business grow and flourish. Visit www.Piercom.com for more information.
Pierpont Communications, Inc. Houston Office 1800 West Loop South, Suite 800 Houston, Texas 77027 Phone: 713 627-2223 Fax: 713 627-2224 www.piercom.com
Pierpont Communications, Inc. | Public Relations www.piercom.com/Public-Relations.aspx At Pierpont, we know that being a market leader isn't about having the most press releases, or the most colorful brochures.
Pierpont Communications, Inc. | Public Affairs www.piercom.com/Public-Affairs.aspx Public Affairs—Civic Engagement—Community Relations—whichever term you prefer, the simple truth is that people do business with companies they know and like.
Pierpont Communications, Inc. | Marketing www.piercom.com/Marketing.aspx Pierpont Communications offers a variety of marketing and corporate communications services to companies in the technology, health care, ...
Pierpont Communications, Inc. | Investor Relations www.piercom.com/Investor-Relations.aspx Pierpont Investor Relations offers a comprehensive portfolio of services designed to provide public companies and those engaged in the IPO process... SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 54
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SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 55
Jeff Shealey-
Encompass Lending Group - Katy ““Working Hands- On to Get Deals Done, Developing Long Term
By Barbara R. Davis
[ [
JEFF SHEALEY, BROKER/PARTNER with
Encompass Lending Group has been in the mortgage industry for 10 years and developing Realtor® relationships to assist with the home loan process is what he does best. 97% of his business is Realtor® purchase transactions meaning Realtors® return to him time and time again to use his services because they trust him with their clients. Many Realtors® have been loyally referring business to Jeff since he got into the industry in 2002. Several title companies refer him business as well due to his diligence in managing the transaction.
Jeff is a multimillion dollar producer with Encompass due to his ability to get transactions done quickly and with ease. His average closing date is 22 days from start to finish. This is important to the Realtor® because they can focus on obtaining more business and to the borrower it means they can move into their house in a timely manner. Another reason Realtors® do so much repeat business with Jeff is because of his extensive product knowledge. He works with their clients to make sure they understand and receive the best product for their particular scenario each and every time he does business with them. Jeff gets return business because he attends all closings. He is there to answer any questions that may arise at the last minute as well as assist with the funding of the loan. His goal is to make sure that the keys are in the buyer’s hands, a check is in the seller’s hands and everyone is happy. To Jeff, the closing is a time of celebration for buyers, sellers, and Realtors® alike!
“When I need to get a deal done, Jeff Shealey is the kind of guy I can count on. I have tried out several different people but he’s been above and beyond all the others. He always gets the deals done extremely quickly and he’s great about communicating throughout the whole process. I recommend him to all my clients. I trust him so much; I had him do my brother’s loan and a couple of my close friends’ loans.” James Krueger, Broker/ Owner of Krueger Real Estate
Shealey Family
for himself but others around the country. Additionally, Jeff is an active participant of Living Water International, a non-profit organization that drills water wells to provide clean water to poverty-stricken communities around the globe. Living Water’s website is www.water.cc. Encompass offers a variety of loan products for the first-time homebuyer to the seasoned investor. Always thinking outside of the box, Encompass gives Realtors® free tools to improve their business including social media training, marketing tools and tips, Partner Pages, and assistance from a marketing representative who helps the Realtor® come up with a social media plan of action. All of these free benefits are offered to add value and promote the Realtors® they do business with.
A loyal family man, Jeff has been married for 10 years to wife Monica and they have a 7 year old son named Triston. They’re actively involved with the Cub Scouts, Pack 1626 out of Cypress and Jeff and Monica are members of Cy-Fair Christian Church. Jeff is part of Discover Leadership Training where he helps develop leadership skills not only
For more information, go to www.ELGloans.com. Contact Jeff Shealey by phone at 832-867-6747 or by email at jshealey@ELGloans.com. You can also visit the Encompass Lending Katy office at 23108 Seven Meadows Parkway, Suite 100, Katy, Texas 77494.
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 56
MICHAELS PHOTOGRAPHY STUDIO
Realtor® Realtionships”
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VIPorbit
MICHAELS PHOTOGRAPHY STUDIO
CONTACT MANAGER FOR IPHONE & IPAD VIPorbit is everything you need to manage your contacts and calendar. It’s the only full-featured contact manager app for the iPhone and iPad. From the co-inventor of ACT!, it’s an affordable, easy-to-use solution that helps you manage your business relationships effectively.
www.viporbit.com
BUILD RELATIONSHIP VALUE
ANYTIME, ANYWHERE — Start at the Dashboard for your daily activity summary and database stats. — Manage your contacts with customizable fields to track the info you need. — Build spheres of influence and organize your contacts in groups with Orbits. — Schedule activities by contact, Orbit, or individually selected contacts. — Instantly review relationship details with automatically generated history logs. — Connect with contacts by phone, email, text, Twitter, Facebook, and LinkedIn. — Leverage relationships between contacts with vipLinks to extend your network. — Access your vital contact data with powerful search functions. — Create quick, customized reports summarizing relationship details. — And much, much more.
www.SBTMagazine.net
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 57
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 58
www.SBTMagazine.net
By Woodie Stephenson
PHOTO BY ARCHETYPE
eneral Contractor and experienced home remodeling specialist Charlie Williford prides himself in the level of
Charlie, who started with a local paint contractor when he was 18 years old, left after two years of experience to start his own contracting operation. Williford and Company has grown immensely over the last 30 years to becoming one of the most-trusted operation serving the real estate industry as well as private homeowners. “We work all over town; wherever they call for us, we go. I stay in contact with my customers, practice good communication. That is the key to a successful business. There is always someone on the job, checking on the quality of the work and maintaining good supervision as well as communication throughout the entirety of the contract. I’ve always said: ‘you’re only as good as your employees’, and we only hire the best.”
decorator that assists homeowners if needed. “We will do anything from replacing a simple water faucet to a complete remodel or build-out. Even when the market has been as tough as it’s been, we have continued on with our level of in-house service because we survive on 100% word-of-mouth and referral business. Quality speaks for itself, and when you do a good job, you’ll get the continuing referrals.”
[
Specializing in full build-outs, remodels, room additions, foreclosure renovations, and quotes on insurance reports, Williford & Company works in the residential and commercial real estate markets, helping agents provide their clients with the best quotes and personal service; however, Williford & Company also works directly with homeowners, insisting no job is too small. The company also has an on staff
"You can depend on Charlie Willford! You can depend on him to be there when he says he is going to be there. You can depend on him to answer his phone or return a call promptly and to do a great job at a fair price. We have used him for our home and our business and have had great feedback from others that we have referred to do business with Charlie!"
[
“You can depend on Charlie Willford! You can depend on him to be there when he says. he is going to be there. You can depend on him to answer his phone or return a call promptly and to do a great job at a fair price. We have used him for our home and our business and have had great feedback from others that we have referred to do business with Charlie!”
“My guys and I take pride in our work. We love to stand back at the end of the day, after the job has been completed and pride ourselves in the quality of what we provide and the smiles the clients provide us with.”
--LeAnn Jochec/Cy-Skape Inc.
Charlie insists, that he gets no greater pleasure than a job well done.
For more information and Williford and Company and their services, contact Charlie Williford directly at (832) 250-2825
Discover how you can‌ Ward off potential lawsuits Dramatically slash your taxes Greatly reduce your chances of an IRS audit Gain a more credible business image Protect your assets and family for the future Since 1972 we’ve made it our business to make sure you get the most out of your small business. Reap the rewards. Savor your privileges. Join the ranks with the mega successful. Start now with a complimentary consultation from a Laughlin Associates business advisor today.
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Advertiser’s Index 1 Source SEO.................................................................49
GPS Wealth Mngt...........................................................55
Adhere Creative..............................................................23
HCC/Goldman Sachs......................................................2
Advanced Business Brokers..........................................28
Jeff Sheely/Encompass Lending Group........................56
Better Business Bureau...................................................1
Laughlin Associates.......................................................60
Buffalo Bayou Brewing Co.............................................42
Milly Kammerdiener/Newhomeprograms.com.............46
CHI.....................................................Inside Back Cover
Murphy & Vickers Law................................................13
Champions School of Real Estate................................4
Northwest Mutual...........................................................35
Charlie Williford / Williford & Co......................................59
Pierpont Communications..............................................54
Churchill Mortgage.............................Inside Front Cover
Prime Lending................................................................19
Connecting Home Houston...........................................38
RAC Conference Center.................................................39
Courthouse Direct.........................................................52
Rice Epicurean..................................................................5
Cyndi Barnett/GPS Wealth Managment........................10
Sales Nexus....................................................................51
CRE Credit Services.......................................................14
Stewart Title....................................................Back Cover
DSI Net..........................................................................33
Technocycle...........................................................41
Dovarri..............................................................25
T.G.Design............................................................43
Eric Kleiman....................................................................21
VIP Orbit.........................................................................57
Fidelity National Title - Galleria......................................34
WBEA Expo 2012..........................................................45
Fiterman Sports..............................................................47 G Gilbert Designs...........................................................28
SMALL BUSINESS TODAY MAGAZINE APRIL 2012 | PG 60
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After more than 100 years, we’re still a perfect fit.
Another reason why Stewart Title is the right title company for you. At Stewart Title, you’re going to feel right at home. That’s because, just like you, we’re locals. Stewart has been serving the title needs of the Houston area for well over a century – and while many things have changed over the years – our commitment to providing you with the best service possible has always remained the same. Contact us today to learn more about why Stewart Title is the right title company for you. HArriS CounTy Betty Warren Houston Division (281) 481-3327 Debbie oder Atascocita & Kingwood (281) 359-1280 Patty Tyrell Clear Lake (281) 488-6683 ryke Matlock Fine Properties (713) 625-8626
Ann Schneider Jones Rd. & Cypress (281) 890-8521 Carla Schraub Memorial & Royal Oaks (281) 558-3005 Sandi reese Tomball (281) 357-8277 Laura Deyo Katy (281) 392-8844 Lynn Stryker Kirby (281) 558-3005
stewart.com/houston
© 2012 Stewart.
GALveSTon CounTy
ForT BenD CounTy
BrAzoriA CounTy
Heidi Crenshaw League City (281) 332-3521
Marian Walters Sienna & Sugar Land (281) 491-7050
Lisa espey Angleton & Lake Jackson (979) 849-6453
Texas City (409) 948-1771 Santa Fe (409) 925-3800 Galveston (409) 763-4641 West End (409) 737-1542 Friendswood (281) 819-4280
stewart.com/galveston
MonTGoMery CounTy Sherry Smith Magnolia & The Woodlands (281) 367-5454
Debra Leroy Pearland (281) 412-6900
Lisa Shaver Conroe (936) 441-2743
stewart.com/montgomery-county
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