Businessuite Digital July 2012 by Blackslate Media Group (BMG)

THE VOICE OF JAMAICA’S EMPLOYERS, PROVIDING WORKPLACE SOLUTIONS

21 Million people are now victims of forced Labour, ILO says Geneva (ILO News) - Nearly 21 million people are victims of forced labour across the world, trapped in jobs which they were coerced or deceived into and which they cannot leave, according to the ILOs new global estimate. The Asia-Pacific region accounts for the largest number of forced labourers in the world - 11.7 million (56 per cent) of the global total, followed by Africa at 3.7 million (18 per cent) and Latin America with 1.8 million victims (9 per cent). The head of the ILOs Special Action Programme to Combat Forced Labour, Beate Andrees, says that the methodology has been revised and improved since the ILOs initial estimate in 2005 and the numbers are more robust now. We have come a long way over the last seven years since we first put an estimate on how many people were forced into labour or services across the world. We have also made good progress ensuring most countries now have legislation which criminalises forced labour, human trafficking and slavery-like practices.

June 25 – July 02

recruiter or employer, for example through violence or threats of violence, or by more subtle means such as accumulated debt, retention of identity papers or threats of denunciation to immigration authorities. Such situations can also amount to human trafficking or slavery-like practices, which are similar though not identical terms in a legal sense. International law stipulates that exacting forced labour is a crime, and should be punishable through penalties which reflect the gravity of the offence. Forced or compulsory labour of Guy Ryder was elected as the tenth children under the age of 18 years is Director-General of the ILO and one of the worst forms of child labour will begin his five-year term in as specified in the Worst Forms of Child Labour Convention, 1999 (No. 182). For further information on the ILO Global Estimate of Forced Labour 2012 (Executive Summary and Report) please visit: http://www.ilo.org/global/about-the-ilo/press-and-media-centre/ news/WCMS_181961/lang--en/index.htm

Forced labour in numbers - Three out of every 1,000 people worldwide are in forced labour today.

4.2 Growth Projected over Medium-Term

- 5.5 million (26 %) are below 18 years.

The Jamaican economy is expected to grow by at least 4.2 per cent over the medium-term. For the current financial year, growth is projected at one percent and increase to 1.3 per cent for 2013/2014, and 1.9 per cent for 2014/2015. Finance and Planning Minister, Hon. Dr. Peter Phillips, in presenting the medium-term growth prospects as he opened the 2012/13 Budget Debate in the House of Representatives on Thursday (May 24), said the forecast “only incorporates organic growth and known investment projects, which are conservative projections, which we expect to surpass."

The successful prosecution of individuals who bring such misery to so many remains inadequate - this needs to change. We must also ensure that the numbers of victims does not rise during the current economic crisis where people are increasingly vulnerable to these heinous practices.

He emphasized that while the macroeconomic and fiscal reforms will strengthen stability, sustained growth and prosperity will only be achieved by the “creative pursuit of strategies to attract investment and improve competitiveness."

- 18.7 million (90 %) are exploited in the private economy, by individuals or enterprises. Of these, 4.5 million (22 per cent) are victims of forced sexual exploitation and 14.2 million (68 per cent) are victims of forced labour exploitation in economic activities, such as agriculture, construction, domestic work or manufacturing. - 2.2 million (10%) are in state-imposed forms of forced labour, for example in prisons, or in work imposed by the state military or by rebel armed forces.

Forced labour is the term used by the international community to de- By Allan Brooks, JIS Senior Reporter note situations in which the persons involved - women and men, girls and boys - are made to work against their free will, coerced by their

Editorial

Service you can rely on! Starting a new business for anyone can be a daunting task. The risk is great but the reward so much greater. According to statistics published by the US-based Small Business Administration (SBA), seven out of ten new employer establishments survive at least two years and 51 percent survive at least five years. This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years. Many a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack the relevant business and management expertise in certain critical areas. Unless they recognize what they don’t do well, and seek help, business owners may soon face disaster. For some goods and services the needs are obvious and easy to pin point. It’s the other services that may not automatically come to mind like security and IT that can put the new entrepreneur in a bind. The reality is that many persons think about these services as additional expenses, not realizing that the expenses or losses can potentially be far greater in the long run. It’s the attention to detail, the research that can make the difference between an operation that is poised for success and one that is on the long slow path to ultimate doom. Herein we have put together some of the goods and services that small businesses or any size business for that matter, will or may require. We have also named some of the industry leaders in the respective fields such as banking and real estate. There are a number of companies that provide goods and services to SMEs. Ultimately the key is for new entrepreneurs to realize which service they require as this may be relative to the size, scope and nature of the business activity. Once that has been identified, enquiries can be made by asking persons in similar sized and type operations about their experience with service providers. It is also a good idea to visit company websites to get information about what they can do for you or visit companies to speak with an agent or customer service representative. We also look at a young and upcoming innovator and burgeoning entrepreneur who shows what it means to think outside of the box and go for one’s dreams. Finally, we encourage entrepreneurs to align themselves with business-oriented organizations such as the Small Business Association of Jamaica, that can provide them with the necessary information and technical expertise that they will no doubt find invaluable. Businessuite Magazine Special Edition May 2012

Credits: Publisher: Aldo Antonio - blackslateholdings@gmail.com Executive Editor: Damian Wilson- advertising.businessuite@gmail.com Graphic Design/Layout: MD Studio - www.mdstudioja.com Photo credits - Sourced from the internet and contributed Advertising Sales - businessuitemagazine@gmail.com

Find out what’s the latest SME business news and features from Jamaica, the Caribbean and around the world go to our online magazine at www.businessuiteonline.com For all information call 876-631-5418 (o) or 876-280-9192 (m) OR email businessuitemagazine@gmail.com

Publishers: Businessuite News Centre A division of the Blackslate Media Group For all information call 876-631-5418 (o) or 876-280-9192 (m) OR email blackslateholdings@gmail.com -------------------------------------------------------------------Corporate Information: Blackslate Media Group Limited, Kingston 19, Jamaica To learn more about Blackslate go to www.blackslateholdings.blogspot.com

Contents

Contents GENIUS OF AN IDEA:

BUDDING NCU ENTREPRENEUR TELLS OF PASSION AND BUSINESS LESSONS TAKING BUSINESS INTO ACCOUNT: DO YOU REALLY NEED AN ACCOUNTANT?

SERVICE YOU CAN BANK ON: WHAT ARE BANKS DOING FOR SMALL BUSINESSES? A LONG AND LASTING UNION: CREDIT UNIONS AND SMALL BUSINESSES

First Global Staff Awards, THE BALL IS IN YOUR COURT: WHY YOU NEED A GOOD BUSINESS LAWYER

LOCATION, LOCATION, LOCATION! MAJOR PLAYERS IN THE REAL ESTATE SECTOR AND WHAT YOU NEED TO KNOW ARE YOU CONNECTED? IT AND YOUR BUSINESS

22 ARE YOU SAFE? SECURITY AND YOUR BUSINESS

COMING CLEAN! JANITORIAL SERVICES A MUST HAVE.

THE SMALL BUSINESS ASSOCIATION OF JAMAICA: SUPPORTING ENTREPRENEURSHIP IN JAMAICA

TECHNO-LOGIC: APPLE UNVEILS MACBOOK PRO WITH RETINA DISPLAY

Businessuite Magazine Special Edition May 2012

Feature

GENIUS OF AN IDEA:

BUDDING NCU ENTREPRENEUR TELLS OF PASSION AND BUSINESS LESSONS

hen most young persons think about starting a business it is often the flashier or tangible type of ideas that come to mind, computer services, fashion and clothing or electronics. But for Barrington ‘Barry’ Davis, and his partner Shaloy Morrison, their business outfit and the idea are typical. “E-Genius Creations is the complete Experiential Design, Event Management, and Strategic Marketing team based in Mandeville, Jamaica. Our foundation is firmly rooted in lifestyle marketing; combine that with the exuberance of creativity and youth, and what is produced is innovation that makes the impossible possible,” he explains. Their services include: Event Management and Architecture Consultancy, Wedding Planning, Strategic Marketing and Corporate Events. The man behind E-Genius Creations, Barrington Davis Jr. spent the first 14 years of his life in Kingston starting high school at Ardenne High then transferring to deCarteret College when his family moved to Mandeville. Barry is a final year Entrepreneurship major at Northern Caribbean University (NCU), while completing a Mass Communication degree concurrently.

Barrington Davis – Founder and operator of E-Genius Creations

“We can’t say we are for entrepreneurship and then stifling its appeal with such heavy taxes ” 6

A firm believer in giving back to the community, he has been a member of the Rotary organization for seven years, currently serving as President of the Rotaract Club of NCU (youth arm of Rotary) and Assistant District Rotaract Representative for Rotaract Jamaica Southwest, with direct responsibility for eight clubs spread across four parishes. He is also a volunteer in the Jamaica Inspired Youth Network. While the company itself is fairly new, they are no novices to the area. “My partner, Shaloy Morrison and I, have 8 years of experience between us in the services we offer. We have big and different plans for this industry and this business that other players have yet to explore.” Their strength he believes is that they don’t believe in last minute and rushing. “We ensure all occurrences and emergencies are covered so we never have to rush anything.” The idea for this enterprise came from Ms. Morrison, a friend of his who is also a member of the Rotaract Club. She approached Barry with the idea of a partnership and from there everything else fell into place. But why this kind of business Continued on page 7 >>>>>>>>>> Businessuite Magazine Special Edition July 2012

Feature >>>>> continued from page 6

one may ask? “We both have a passion for it and like to stand out. Plus we want to make a difference in the standard the industry currently ‘enjoys’. It is time the bar is raised.” In terms of the support, he credits a wide spectrum of persons including friends, family and lecturers. “Support has been coming in the form of advice and ideas, and trust me, that’s more valuable than cash,” he declares. He also credits the tertiary institution for the lessons he has learnt. “What I have learnt at NCU has been very helpful! We all know business textbooks are a culmination of past business experiences and practices put together for the purpose of making it theoretical. But at NCU the practicality that is applied to the courses, brings them to life and makes sense of all that theory. For someone like me, that is very imperative.” As for the biggest challenge he has faced thus far, as with most new businesses in this economic climate, that is capital funding. But they have managed to negotiate that with the help of friends and family. The burden of taxation has been the biggest lesson he has learnt that he didn’t know prior to starting out. “You always have an idea when it’s your salary that’s being taxed, but when you

Businessuite Magazine Special Edition July 2012

hear business owners speak on the gravity of the taxes levied on businesses, small business in particular, they are not exaggerating. Something really needs to be addressed, and quickly if as a nation we are genuinely pushing entrepreneurship as a way out of our economic situation. We can’t say we are for entrepreneurship and then stifling its appeal with such heavy taxes,” he declares passionately. In the next 10-15 years, Barry sees them breaking economic, geographical, language and demographical barriers. “The vision is to be recognized in the Caribbean by 2016,” he asserts. “To all budding entrepreneurs, my only advice is if you want to achieve something, then do it! Stop talking about it. It’s a risk, but that’s why we are entrepreneurs- we take risks! He also reminds entrepreneurs to remember charities, NGOs and Not for Profit Organizations. “Jamaica needs as many support services as possible right now and though we are all feeling the pinch, the ability of what we can do when we come together is limitless. Let’s “Embrace Humanity, Inspire Hearts, and Change Lives”.

Business

Taking Business into ACCOUNT: Do you really need an Accountant? “An accountant or accounting skills are critically important to the success of any business”

ne of the many aspects of running a small and medium enterprise that surprisingly few entrepreneurs consider is the need for a skilled, professional accountant. Most entrepreneurs jump head first into their businesses without giving a second thought to just how necessary proper accounting or book keeping is and the additional skills an accountant offers. An accountant or accounting skills are critically important to the success of any business. Ms. Carlene Chin, Manager of the Consulting Department of Accounting and Managing firm BDO – insists that small and medium enterprises do in fact need accountants. Ms. Chin notes that her company has a mix of small and larger firms as clients, lending credence to the fact that small enterprises do in fact need and appreciate the need for accounting services. According to her, the main reasons a small or medium enterprise would need an accountant includes “to ensure proper 8

accounting is maintained and recorded, ensuring tax compliance, business planning and forecasting including cash management.”

or has any problems with the Tax Administration Department. Also they offer advice on specific transactions, such as whether it’s better to lease or buy or when it is feasible to seek a loan to grow There are several other important func- the business or obtain a new piece of tions that an accountant would see to. capital equipment. Accountants help SMEs to understand their financial statements. One should A good accountant will always be on utilize their accountant’s expertise to top of the changing laws and regulahelp analyze financial statements so tions and, more importantly, will know he or she can understand what is hap- what applies. This is particularly impening. If an entrepreneur neglects to portant when new tax regulations are do this, it may be difficult to know what announced, as recently done by the exactly is going on internally and where Minister of Finance in his Budget prethey stand at any particular point in time. sentation. These changes can and will have implications for the business and Accountants also advise companies on a trained and experienced accountants deductions and how to separate per- must be aware of these and act accordsonal and business expenses. This is a ingly. It’s also important to ask your accommon mistake entrepreneurs make countant’s advice before you take action – a failure to separate personal assets or make important financial decisions. It from business assets. Accountants de- is almost always easier and cheaper sign and set up accounting systems so to structure things properly upfront, inthat year-end financial reporting will be stead of trying to take steps to remedy easier. They can also offer advice and them later on. Continued on page 10 guidance if a business is ever audited

Businessuite Magazine Special Edition July 2012

Need help in securing your financial future? Just ask. Scotiabank Group offers the widest range of financial services. Just call us today and we will guide you in making sound financial decisions. Commercial Banking • Demand Loans • Letters of Credit • Lines of Credit • Trade Finance Retail Banking • Savings & Chequing Accounts • Term Deposits • Debit Cards • Short/Medium/Long Term Loans • Credit Cards • Electronic Banking & Merchant Services • Home Improvement • Purchase Land • Build a House • Buy a Home Small Business • Executive and Business Credit Cards • Credit Line for Business • Chequing Account for Business • Demand Loans • Electronic Business Banking Services Wealth Management • Securities Trading • Pension & Asset Management • Stock Brokerage • Capital Markets • Unit Trusts & Mutual Funds • Private Client Group Services Insurance • Life Insurance Products • Long Term Savings • Creditor Life Protection • Retirement Planning

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Group

Technology

Business Continued from page 8.....

The bottom line is to make sure he or she completely understands the business and its goals, and can be trusted to help the company attain those goals. If an entrepreneur can take that advice in confidence, he or she will be a valuable long-term partner.

ment cost would vary with the nature and particulars of the engagement. She however opined that a small or medium enterprise can reasonably afford the services of a top grade accounting firm or services such as theirs. Certainly, it can be more costly not to use an accountant in the long run.

As far as the cost factor, Ms. Chin points out that engage-

SERVICE YOU CAN BANK ON:

WHAT ARE BANKS DOING FOR SMALL BUSINESSES?

anks are often times the first place to which the budding entrepreneur will turn when contemplating financing for a small or medium enterprise. However the range of goods and services that a commercial bank can offer far exceed merely loan offerings. The role of the SME in Jamaica and the Caribbean is so large that its importance to the economy cannot be overstated or ignored. The statistics are well known and often cited. In most developed countries around the world and in the Caribbean, Small Businesses or Micro and Medium Sized Enterprises are estimated to account for anywhere from 50% to 70% of total employment. While large corporations make news and get the media attention, it is small businesses that drive the economy, innovation, entrepreneurship, risk taking and employment. This fact has not been lost on the commercial banking sector,

which has led them to expand the range of goods and services they offer to SMEs to the point of offering dedicated and specialized services to SMEs. Some are among Jamaica’s biggest and most instantly recognizable commercial banks including National Commercial Bank, The Scotia Group and the Jamaica National Building Society (which has both commercial banking and building society core functions). The National Commercial Bank credits itself as the first commercial bank to focus on small and medium enterprises and asserts that they can assist them to achieve growth. NCB’s SME Unit offers a wide variety of products and services including financing, cash management, credit cards and electronic banking. The SME Unit is comprised of locally based business bankers, who are supported by Branch Managers in NCB’s branches islandwide. Continued on page 11 >>>>>>>>

Businessuite Magazine Special Edition July 2012

Business

The facility is intended for borrowers who are classified as small or medium sized businesses. Its suite of business targeted loan options include: NCB Business Grow, NCB Merchant Advance, SME Development Access Facility, NCB Receivables Financing and NCB Merchant Advance. These all offer a variety of benefits, tailored to specific needs, business sectors, loan amounts and criteria. The Jamaica National Building Society is another entity that offers specialized services to the SME community. The Jamaica National Small Business Loans Limited (JNSBL) started in 2000. Since then it has disbursed 274,393 loans valued at approximately $13 billion. The JNSBL also used its partnership with the Development Bank of Jamaica (DBJ) and the National Insurance Fund (NIF) to distribute $5.2 million and $25.5 million respectively in loans from funds provided by both institutions to the small business community in the last financial year. Its BizGrow is offered to individuals who have been in business for at least six (6) months, whereby they are able to access a minimum ofÂ $60,000 up to a maximum of $400,000.00. In February 2011, it launched The Tourism Enhancement Fund (TEF) Loan Scheme, specifically designed for individuals and companies, (including new businesses) with a minimum of 30% of their businesses committed to providing goods and services to the Tourism Sector. The TEF loan provides access to funding of up to $5 million. Scotiabank Jamaica created the Scotiabank SME Development Programme to offer goods and services to the SME community. The Scotiabank MSME Alliance Fund, which is part of the Scotiabank SME Development Programme launched in September 2008, is accessible by registered members of the MSME Alliance. The Scotiabank SME Development Programme provides loans at con-

Businessuite Magazine Special Edition July 2012

cessionary rates to small and medium sized businesses for the purpose of starting up, as well as, for the improvement of business operations for entities that are already in operation. The Scotiabank MSME Alliance Fund applies only to businesses already in operation. The facility is intended for borrowers who are classified as small or medium sized businesses. To qualify, businesses should not have more than 25 employees and not more than J$135 million in annual revenues. Loan amounts are between $5 million and $500,000. Some of the general requirements that either one of these banks/institutions may require include: business registration documents, bank statements, cash flow projections, tax compliance certificate, valuation or surveyors report for asset being pledged as collateral, certificates or titles being used as collateral. With banks continuously seeking new areas of growth and to capitalize on niche markets, the relationships between the banking sector and the small business sector is one that is sure to continue to thrive.

Business

A LONG AND LASTING UNION: CREDIT UNIONS AND SMALL BUSINESSES “With a credit union, a small business owner may start a business or expand an existing one”

t the very genesis of the credit union movement in Jamaica and elsewhere is a need to have a system in place which can assist the poor and the most vulnerable in society. Spurred by the 1938 mass riots against poor wages and inhumane working conditions, Father John Peter Sullivan and the Catholic Young Men’s Sodality (CYMS) decided to form a credit union, which would assist in relieving the myriad of social problems. On September 12, 1941, they pooled together their shares, giving birth to Jamaica’s first credit union; the Sodality Credit Union. This credit union operated under the motto, ‘Not for charity, not for profit but for service.” Credit unions were subsequently formed for rum workers, barmaids, policemen, store clerks, factory workers and civil servants. While the scope of the Credit Union has morphed and expanded since those early years, credit unions at heart are a means of uplifting and inspiring people to achieve. A credit union is a co-operative financial institution, which is owned and controlled by its members. They exist to provide a safe, convenient place for members to save money and obtain loans and other financial services at competitive rates. Members of credit unions may share a common bond, such as their occupation, where they live or attend church.

The Jamaica Co-operative Credit Union League Ltd. is the National Association of Credit Unions with responsibility for the overall direction and co-ordination of the National Credit Union Movement. According to the JCCUL, as at June 2011, the Credit Union in Jamaica had a membership of 900,000, assets of $62 billion, savings of 49 billions and loans of $38 billion. Credit Unions offer a wealth of services such as savings, insurance and loans. Some offer additional services such as money management or financial counseling, standing order services, remittance services and Easi Access ATM and debit point of sale service, which also includes access to withdrawal services, deposits, account enquires, transfers and loan repayment. For a small and medium enterprise, these are all useful and even necessary services. However, access to affordable, easy to obtain, convenient small business loans is probably one of the most accessed credit union service by entrepreneurs and prospective entrepreneurs. With a credit union, a small business owner may start a business or expand an existing one. He or she may also secure a loan to create working capital to buy equipment or inventory. Some of the basic requirements to obtain a small business loan include: a viable business plan; at least one third equity in the business and security or collateral for the loan.

The loan terms and options differ from institution to institution. For example the St. Catherine Co-operative Credit Union (SCCU) offers what it calls the Micro Business Loan and the Micro Power Loan. The Micro Business Loan is geared towards start up business that may need small but accessible capital. It is a secured loan on which access to the loan is based on the amount in savings and collateral. The maximum loan amount is $80,000.00 and $40,000.00 for first time borrowers. The maximum repayment period is 36 months/3 years. The Micro Power Loan is an unsecured loan facility available to persons with existing or expanding businesses. The maximum loan amount is $200,000.00 with a repayment period set at six to twelve months. Other well known credit unions in Jamaica include the Churches Co-operative Credit Union, AAMM Co-operative Credit Union Ltd, The Jamaica Teachers’ Association Co-operative Credit Union Ltd and COK Sodality Co-operative Credit Union Ltd. The Credit Union Movement is Jamaica is firmly entrenched as a safe and secure source of capital that rivals banks for trust and reliability. They have endeared themselves to not only small businesses but middle income earners looking for saving and loan options.

Businessuite Magazine Special Edition July 2012

First Global Staff Awards, held at the Wyndham Hotel on Saturday, May 12, 2012.

These new employees made enough of an impact to be awarded Rookie of the Year in 2011. Congrats Denise Williams (left) and Fonnique Miller! (Missing Kadian Johnson)

Our customers have spoken and these branches have delivered excellent customer service! The winners of the Best External Customer Service Award are FGFS Mandeville in third, FGFS Montego Bay in second and FGB Manor Park in first!

FGFS’ Department of the Year…Invesments! Congrats to Melissa Spence, Jason Chambers, Keisha-Ann Morgan and Dowhene Clunis (l-r).

Congratulations are in order FGB’s Treasury Department for winning Department of the Year award! (l-r) VP Treasury- Mark Anderson, Trading Manager- Jolie Hayle-Parker and Jade Harrison, Treasury Officer.

Seen here, winners of the Complaint Resolution Awards, FGB Mandeville in third, FGB Montego Bay in second and first place winners, FGB Customer Care Centre!

The night was topped off with a spectacular performance from the ‘Doctor’ himself, Moses ‘Beenie Man’ Davis...truly stars among stars!

These winners of Excellence in Execution awards recognize individuals who display dependability, efficiency and timeliness in completing tasks, Eldin Reynolds and Annmarie Walker.

The ultimate star of the night, Precious Garrick, recognized here for 15 years of service to the organization.

The Winners of the Branch Award… Suzette Dawkins (left) and FGFS Mo Manager-Charlott

Congratulations to First Globalâ&#x20AC;&#x2122;s High Achievers!

A decade of service! These employees have given 10 years to First Global and are recognized for Long Service.

Some stars of the night pose with their trophies at the recently held First Global Staff Awards ceremony at the Wyndham Hotel in Kingston.

â&#x20AC;ŚFGB Liguanea Branch Managerontego Bay, Business Development te Mason-Vidal.

These winners represent those Department with the highest Employee Satisfaction, in third, FGB Montego Bay (Courtney Wilson-centre), second FGB Retail Banking (Denise Williams-left) and in first place the Human Resources Department (represented by Marcia Henry)

First Global recognizes All-Stars with the Service Excellence Awards.

We are indebted to these individuals for the commitment to First Global throughout their Five Years. (Long Service Award)

A bevy of beauties from FGB New Kingston offices!

A proud Robert Drummond, President-FGFS accepts the Company Award on behalf of First Global Financial Services!

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Best Banking Group (jamaica) 2012 Award from

The Award, from the London-based international publication, is prestigious recognition of the fact that

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Technology

Law

THE BALL IS IN YOUR COURT: WHY YOU NEED A GOOD BUSINESS LAWYER “For Businesses and Entities that are in Media, Design or other Creative-type Areas, “

hether it’s in-house or retained on an as-needed basis, a good attorney is crucial to any successful business. Hiring a business attorney may not seem obvious or necessary from the outset but a good business attorney will provide important assistance in almost every aspect of a business, from basic zoning compliance and copyright and trademark advice to formal business incorporation and lawsuit liability. Like doctors, lawyers are becoming increasingly specialized. Someone who does mostly wills, house closings and other “nonbusiness” matters is probably not a good fit for a business, small or large. At the very least, the lawyer one selects for a small business must provide a certain set of acquired and specialized skills. The first skill a lawyer must provide is dealing with contracts. Businesses usually need an attorney who can understand the business quickly; prepare the standard form contracts needed with customers, clients and suppliers; and help the entrepreneur respond to contracts that other persons will want him/her to sign. The second service an attorney will need to provide is for business organization. Businesses will need a lawyer who can help decide whether a corporation or limited liability company (LLC) is the better way to organize the business, and prepare the paperwork accordingly. 20

Real estate is also a specialized area that may often times require the trained skills of an attorney. Leases of commercial space such as offices and retail stores can be highly complex and are always drafted to benefit the landlord. Because they tend to be standard documents, one may be tempted to think they are nonnegotiable. However an attorney can have a standard “tenant’s addendum,” containing provisions that benefit the business owner, that can be added to the standard lease document. The area of taxes is one that tends to get overlooked in terms of attorney’s services. Although the accountant will prepare and file business tax returns as necessary, it is the lawyer who should (also) know how to register the business for tax identification numbers and understand the tax consequences of the more basic business transactions in which the business will engage. For businesses and entities that are in media, design or other creative-type areas, it is certainly a bonus to have an attorney that can help register products and services for trademark and copyright protection. Generally, these tasks are performed by specialists who do nothing but ‘intellectual property’ legal work. If a lawyer specializes in small businesses, then he or she should have a close working relationship with one or more intellectual property specialist.

a rule of thumb it is also always good to secure legal advice or legal service to avoid or certainly before the entity is in legal trouble with another party or the state. These issues are often the result of ignorance of the law and the ramifications of certain actions, which an attorney could have advised on.

Also one must consider whether to seek the services of a large firm or a small firm. While larger firms are more costly, they have two distinct advantages. Firstly, they usually have all the legal skills in the various specialized areas. They would more likely be able to effectively handle lawsuits, negotiate lease of office or retail space, file a patent or trademark, draft a software license agreement and advise on terminating a disruptive employee. Secondly, larger firms have more clout in the local and regional legal community. A terse letter from a “powerhouse” law firm with offices in more than one country is a lot more intimidating than a nasty letter from a solo practitioner with limited experience. Much like accountants, their services are often underappreciated and overlooked. Again, much like accountants the question is not if you need and can afford legal services, but can you afford to not have legal services - if even on an ‘as needed’ basis.

Businessuite Magazine Special Edition July 2012

Real Estate

LOCATION, LOCATION, LOCATION!

MAJOR PLAYERS IN THE REAL ESTATE SECTOR AND WHAT YOU NEED TO KNOW “ Whether the young, upstart entrepreneur is interested in buying, leasing or renting, he or she will need the services of a real estate agent, “

eople conduct business in, call into and walk through stores and business outlets everyday. Businesses vary by size and the nature of the goods and services they offer. However all non-cottage/work-from-home sets-ups are facilitated by the real estate industry and its related services. Whether the young, upstart entrepreneur is interested in buying, leasing or renting, he or she will need the services of a real estate agent, firm or property management services to get started. These services are provided by a number of industry players who offer a gamut of real estate services. One such company is real estate giants RE/MAX. RE/MAX which stands for ‘Real Estate Maximums’ is a USbased, local industry player. “RE/MAX Platinum Properties Ltd. offers a suite of services to the small and medium enterprises including but not limited to valuations, appraisals, property management and rentals,” according to Lambert Johnson, one of the company’s directors. The network’s red, white and blue hot air balloon logo is familiar to persons in the industry for over 80 countries. The emphasis for RE/MAX is the acquisition, training and re-

tention of a qualified and professional team of agents, which it does through online and in-person training courses. While their name is linked mainly to the insurance industry, the Sagicor Group also has within its portfolio, Sagicor Property Services (SPS). The Real Estate arm of Sagicor is a wholly owned subsidiary of Sagicor Life Jamaica that provides a range of residential and commercial real estate services including buying, selling, renting, leasing, and property management, according to Mr. Pierre Shirley, Real Estate Sales Manager. Coldwell Banker is another well known and reputable real estate powerhouse. In February 2001, Andrew Issa, Broker and Managing Director of Executive Property Service Ltd, a real estate company since 1991, officially launched Coldwell Banker Jamaica Realty, becoming part of the international franchise brand, Coldwell Banker Real Estate LLC. Anyone familiar with real estate is familiar with the maxim location, location location! The cost to rent, buy or lease a property is based not only on the size and condition of the property, but also location. However on average, a small office space of approxi-

Businessuite Magazine Special Edition July 2012

mately 1,000 square feet would rent in the range of US$1,200 per month plus GCT according to Mrs. Lorraine Levy-Finlason of real estate firm Valerie Levy and Associates. Entrepreneurs must be cognizant of the fact that Real estate agents must be licensed to practice. The Real Estate (Dealers and Developers) Act regulates and controls the practice of those who engage in the real estate business as agents, auctioneers, appraisers, estate managers and salesmen. Registration depends on attainment of prescribed levels of professional qualifications and on ethical standing. Agents should prove useful as they provide specialized knowledge in research, marketing and negotiations to help buyers, sellers and renters meet their goals. Whether renting or buying – it is a good idea to do your research by registering with one or more reputable real estate firm such as those mentioned here. These firms work with small, medium and larger clients. Once registered, you will be assigned to a qualified and experienced real estate associate who will contact and guide you through the entire process of securing real estate.

Technology

ARE YOU CONNECTED? IT AND YOUR BUSINESS

hen starting a new business, particularly a small business, it can be difficult to know what your IT requirements are. For the typical new business, the checklist includes a few PCs with internet access and the Microsoft Office package for general word processing, accounting and other routine tasks. Used properly IT can be a small business’ greatest asset - enabling growth and creating efficiency and a competitive advantage. While a more basic approach may work for a small enterprise with a handful of employees in a relatively simple industry that provides a single service, that may not always work. For a larger firm with more employees that provides a range of goods and services to a diverse market over a larger geographical area, it will require a more dynamic approach to the use of information technology. That is why small businesses must consider and factor in the need for the services of an IT professional. This may come from a proven IT service provider such as Fujitsu or Illuminat. These two companies are among the myriad of IT service providers who can provide the necessary IT infrastructure to match the business activity of the firm while allowing them to keep pace with the changing technological environment. While the full gamut of the services these companies and companies like them provide is quite expansive, they can be summarized as follows: •

Advising on system requirements,

software, hardware, suppliers and facilitating internet connections, email, software setup and maintenance, organizing your website, design and maintenance; •

Linking internal systems such as accounts, customer relationship management, staff worklogs and correspondence, document management, project and resource control systems and creating a single seamless system

•

If your business is centred around an online service or a software product, an IT professional can also help with design development and implementation services.

Quite simply, the IT component of many small businesses do not fit the business needs or utilize the most effective and useful solutions. Take accounting for example. It is all too easy to overlook accounts and many new businesses fall into the trap of using Excel for invoicing early on as it is easy to create your own template and there is a level of familiarity with the programme. However, for more complex accounting tasks, a new business owner may consider using a programme such as QuickBooks right from the start. There is more of a learning curve but with tax reporting requirements it is a good idea to track expenses, account transactions, bills and enter invoices all from the same system. QuickBooks can also grow as your business does. With reminder functionality you can track the status of all

receivables and keep on top of cashflow which is often the biggest challenge for small businesses. Another invaluable IT service that a small business needs is website, design and hosting. Most people transact business over the internet now and having a website that is easily found in popular search engines is a must. Paid advertising through Google and other popular search engines can drive traffic to your website and from there result in sales providing the website is properly structured to encourage conversions. There are several persons and companies who offer web design, maintenance and hosting. Other IT services provided by a number of reputable service providers include: personal computing, servers and storage solutions, printing and imaging, telecommunications, point of sale solutions, tech support and outsourcing in addition to hardware and software needs. The bottom line is, as your business grows, even more complex systems will be needed. Each specialized activity focuses on one small area of your business and often this results in many details being kept in multiple systems. Business reporting becomes more difficult and systems maintenance becomes more and more costly. If you haven’t before, it is often a good idea to consult an IT service provider or expert to streamline your systems and tailor it to your business needs.

Businessuite Magazine Special Edition July 2012

Business

ARE YOU SAFE?

SECURITY AND YOUR BUSINESS

ecurity is peace of mind! When we do not feel secure, we lose our focus. Investors, entrepreneurs and consumers must feel as if they operate in a safe and comfortable environment. In much the same way they must feel that their money is safely invested in a secure banking and regulatory environment, the same goes for their personal. That also extends to the safety of their work force and their assets – goods and machinery as well as the property they rent, least or buy. This must therefore be taken into consideration when persons decide to set up a business from which to operate. There are a number of local companies that offer a range of goods and services in the area of security to the small and medium enterprises in addition to larger entities. Hawkeye Electronic Security Limited is one such company. The company states its vision as being the company most trusted to provide security services and solutions that protect people and property in Jamaica and the Caribbean. Its myriad of services includes courier services which safely and securely transfers lodgments to and from banks – which is a need of many businesses, large and small. Their trained security officers will guarantee pick-up and delivery of cash in a timely and secure manner.

“For persons in the retail business, surveillance systems and other detection systems are important to discourage and stop shoplifting.“

They also have a technical support department who are trained in the installation, operation and maintenance of the electronic security systems. Their senior technicians also receive factory training overseas in specialized areas and systems from their overseas partners. Additional services they offer include Roadside assistance and medical alert. Their products are also wide ranging and include: panic systems, video surveillance systems, tracking systems, anti-theft systems, smoke detectors, intercom systems, gate automation and metal detector systems. The Guardsman Group of Companies is another that offers a full slate of trusted and reliable top quality security packages for businesses. The Group operates Guardsman Alarms, Guardsman Armored and Marksman. Marksman has been providing security to hundreds of homes, hospitals, schools and businesses island-wide for over 25 years. They also offer everything from investigative services and security consultation to armed and unarmed security guards, canines and handlers. They also offer 24hour mobile patrols to ensure vigilance and the peace of mind of the owners and business operators. Guardsman group also provides personal security and protection in the form of Guardsman Elite

Businessuite Magazine Special Edition July 2012

which provides trained bodyguards for close and constant protection. Other well known and reputable security firms include Atlas Protection Ltd, Movac Protection Ltd, Mica Security Co. Ltd and Quest Security. These firms and others like them also offer armed and unarmed security that will man entrance and exit points, monitor and regulate parking to ensure soothe and organized operation and allow your customers, clients and staff to feel like they are in a safe, worry-free environment. For persons in the retail business, surveillance systems and other detection systems are important to discourage and stop shoplifting. Retailers suffer millions of dollars in losses every year, coupled with employee theft. In 2001, it was claimed that shoplifting cost US retailers $25 million a day. Security services also help to minimize risks of lawsuits and liability from loss or harm that customers may suffer while on the premises of your business. It is therefore essential when persons consider the location of their operation, they seek or consider properties that offer a level of security and safety provided by a skilled and trained security outfit such as those listed above. They can be contracted to provide the particular security need or a set-up tailored to the particular business and its environment.

Business

COMING CLEAN!

JANITORIAL SERVICES A MUST HAVE. So you’ve rented or constructed a new property from which your small business will operate. You’ve thought of everything. You’ve read all the books, did the necessary internet searches on the goods and services you’ll need to get started and stay up and running. Accounting, legal, security, IT, check…all these have been accounted for and taken care of. However in only a couple of weeks, a very real problem begins to manifest itself. A foul odor emanating from the garbage bin in the lunch room, the skip outside is overflowing with refuse that hasn’t been collected in days and dust mite from the carpet is affecting staff members’ sinuses. All because you overlooked one common need - janitorial services. While the US janitorial services and carpet cleaning industry consists of about 50,000 janitorial companies and about 9,000 carpet and upholstery cleaning companies with combined annual revenue of about $35 billion, the Jamaican industry is much smaller but no less just important. With commercial real estate occupancy growing, there is an upward demand for cleaning and janitorial services. Janitorial work includes general services, such as cleaning, trash pickup, floor polishing, and 24

“If workers operate in an environment that is unclean and invariably unhealthy, they are less likely to be able to perform at their optimal level. “

the specialty services of cleaning carpet and ducts and washing windows. Operations may consist of crews cleaning commercial and industrial buildings by hand or with the help of basic equipment like floor polishers. While the companies in this industry are not as expansive as say the legal or IT sector, janitorial services have enough players to keep any office, large or small looking and feeling clean. Perhaps the biggest and most instantly recognizable of these is Manpower and Maintenance Services Limited. MMS offers the full range of janitorial and office maintenance services such as: general cleaning and garbage removal, for offices and businesses of all sizes and floor and carpet cleaning. They also offer landscaping services, post construction clean up, pest control, window cleaning, and cleaning supplies such as toilet paper and hand towels, soaps, air fresheners etc. Manpower lists among its clients prominent organizations in various industries including the Norman Manley and Sangster International Airports, the University of the West Indies, the Spanish Town Hospital, Wray and Nephew, Jamaica Broilers, Grace Kennedy and Company Limited, Independence

Park, Sabina Park, Wyndham Rose Hall Golf and Beach Resort, among others. Other firms in the growing industry include Lamasa Limited, Super People Janitorial and Maintenance Services Limited and Arcadia Enterprise Ltd. Like so many of the services discussed in this issue, the cost of these services is based on the size and scope of the work needed and the resources required. They can also be contracted on a retained basis or called in on an as-needed basis. Like security, persons prefer to conduct business or operate in an environment that offers peace of mind. If workers operate in an environment that is unclean and invariably unhealthy, they are less likely to be able to perform at their optimal level. Likewise clients and customers are unwilling to conduct business in such an environment. It is especially true of the hospitality, healthcare and food and beverage industries. Much like other goods and services that you would automatically give consideration to when starting a new business, the question is not can you afford janitorial services, but can you afford to not consider janitorial services?

Businessuite Magazine Special Edition July 2012

The success of your business depends on the efficiency of your relationships. Kingston Wharves is your gateway to over 15 major Caribbean and Latin American ports.

Kingport Building, Third Street, Newport West, P.O. Box 260, Kingston, Jamaica Telephone: (876) 923-9211 Fax: (876) 923-5361 www.kingstonwharves.com.jm

Technology

TECHNOLOGIC:

APPLE UNVEILS MACBOOK PRO WITH RETINA DISPLAY “First among the computer’s major new features is Apple’s super-high resolution ‘Retina’ display, which the company says has more than 5 million pixels - 3 million more than an HD television.”

hether you’re an Apple product user for life or simply in the market for a new laptop, Apple’s new MacBook Pro has some attractive new features for business users. Many persons in the field of graphic design, media and production rely of Apple products for its dependability and risk free operation. The tech giant unveiled the new iteration of its popular laptop on Monday June 11, at its Worldwide Developers Conference in San Francisco, California. Although Windows plays host to a score of Adobe’s multimedia content creation software, the Mac has been home to these applications for a long time. Many professionals who need to create studio-quality content will opt for MacOS because of both its history and community involved in this field of work. The Mac has been long touted as an artist’s choice. First among the computer’s major new features is Apple’s superhigh resolution ‘Retina’ display, which the company says has more than 5 million pixels - 3 million more than an HD television. Spread out over the laptop’s 15-inch display, that computes to about 220 pixels-per-inch. The screen also has 75 percent less reflection and almost 30 percent higher contrast than the previous generation. What this means is that the new MacBook Pro has an incredibly sharp display that rivals Apple’s new iPad Retina screen. So if you haven’t made the jump to an iPad yet, the new MacBook Pro’s display can be a useful new upgrade for entrepreneurs who make business presentations on-the-go. The laptop started shipping June 11, 2012 and starts at US$2,200. That’s compared to the non-Retina 15-inch display MacBook Pro which retails for $1,800 and the 13-inch MacBook Air for $1,200. Apple has upgraded both current generations of those models with faster processors and new graphics. But if the high resolution display is what you’re after, the $2,200 price tag might be worth it. There are no local carriers of the machine at the time of writing, however you can contact Innovative Systems Limited Superstores or Royale Computers in the Pavilion Mall for future availability. What’s also immediately noticeable about the 15-inch MacBook Pro is its new form: It measures a slim 0.71 inches wide and weighs 4.46 pounds. But the laptop’s smaller frame doesn’t hinder its processing power. The $2,200 model comes equipped with Intel Core i7 quad-core processors with “turbo boost” speeds up to 3.7 GHz, 8 GB of memory and 256 GB of flash storage. Another 15-inch model with up to 16 GB of memory and flash storage up to 768 GB costs $2,800. The MacBook Pro comes with Apple’s Lion operating system but purchasers will be eligible for a free copy of OS X Mountain Lion when it becomes available, Apple says. Other features include an HD camera, a full-size backlit keyboard, HDMI and dual microphones. The battery is expected to last about seven hours.

Businessuite Magazine Special Edition July 2012

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Businessuite Magazine Special Edition July 2012

Business

THE SMALL BUSINESS ASSOCIATION OF JAMAICA: SUPPORTING ENTREPRENEURSHIP IN JAMAICA

any entrepreneurs underestimate the power of strength in numbers. A strong business grouping offers a range of services and specialized skills and knowledge that can greatly improve the chances of survival and success for a small business. That is why it is important for entrepreneurs to become a part of associations such as the Small Business Association of Jamaica. Micro and Small Enterprises (MSE) are considered to be the main source of employment in many economies and serve as a training ground for honing entrepreneurial skills. Therefore the strategy for a vibrant MSE sector is integral to the growth and development of the Jamaican economy. The small business sector accounts for 33.9% of Jamaica’s total workforce and this should be even higher today owing to the fact that this survey was conducted in 2003. It also accounts for one third of the gross domestic product (GDP) of Jamaica’s economy The Small Businesses Association of Jamaica (SBAJ) is a private non-profit business organization registered in 1974 to foster the growth and development of businesses and professional groups and to represent the entire small and micro business sector in Jamaica. The SBAJ represents businesses employing one to fifty (1-50) employees with an income turnover not exceeding five million US dollars per annum ($US5M). One can become a member of the Association by visiting its offices at 2 Trafalgar Road, Kingston 5 and speaking with an officer. You will be asked about your business, its size, the number of persons employed

and registration documents. A membership sheet is completed and a fee requested. If you are not a registered entity, the Association can guide or assist in getting you registered as a sole trader, partnership or limited liability company. According to the mission of the SBAJ, the organization aims to “support the economic and social advancement of the membership through: The provision of technical advice, training, consultancy and trade services and the promotion of the principles of private enterprise and initiative. The association will also represent the views of the membership to the wider public, encourage the spirit of collaboration and cooperation and build positive examples of enthusiasm, dedication, consultancy and leadership. Its objectives are to foster, encourage and develop small businesses in Jamaica thus contributing to national and international development. It also offers networking and a solution oriented platform whereby small business entrepreneurs can meet for discussions, and find solutions to their common problems. They also serve as a corporate voice though which small businesses can make their views known to the Government and the public in general, in a variety of areas by pooling efforts and resources for the benefit of all. Richard Kildare is First Vice President of the Small Business Association of Jamaica and CEO/Managing Director of CAIL Group. According to Mr. Kildare, the impact of the SBAJ has been significant. He believes the high points of the group include: having over six hundred members and spearheading the development of National Develop-

ment Fund of Jamaica (NDFJ), a pre runner to the Jamaica Business Development Corporation (JBDC). “We have also affected and/or influenced macro economic policies relating to the sector, we work along with the PSOJ, JCC, JMA and many others to advance the interest of businesses and train members in business planning, accounting, marketing, sales, etc.” He also noted the development of their new cloud system MERIT as one of their many and more recent successes. “It will be offered to MSMEs to assist in their accounting, human resource, inventory, marketing and sales efforts. This is accessible globally and can be integrated into e-commerce,” Mr. Kildare explained. The products and services of the SBAJ includes: The Incubator, The Business Clinic, The Entrepreneurship Training Centre, Regulatory support and Advocacy. They also collaborate with the Management Institute for National Development (MIND), The Jamaica Manufacturing Association (JMA) The Mona School of Business and The Private Sector Organization (PSOJ). According to Mr. Kildare the SBAJ is also looking to expand its role and services. “We hope to assist the government in crafting a MSME strategy and policy document that will set the framework for the local, regional and international expansion and facilitation of the Jamaican MSME sector. We have crafted a SBAJ Sponsorship document that we are sending around to corporate Jamaica and the government, through this we can get the necessary funding to embark on an expanded [loan] programme”.

Businessuite Magazine Special Edition July 2012