PLOTTING A COURSE TO WIN:
STEERS LATTITUDE 30
ALSO INSIDE: JAXPORT IS
OFFn E R A U Q S s brow
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Business Accounting We understand the importance of financial information and cash flow management for our client’s business. Our proactive financial counseling will help you in the following areas: • Compilation • Bookkeeping • Financial Statement Analysis • Cash Flow Management • Quickbooks Training • Accounts Payable
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A Fresh Take on Normal Dear Reader,
Editorial Publisher/Editor-In-Chief Ethelbert Nwanegbo Marketing Director of Marketing and Public Relations LaTonya Lockhart Graphic Design Adam Price Web Design Eva Bailey Copy Editor Ryan Day Advertising/Sales Richard Holley Distribution Coordinator Frank Dinzey Freelance Journalists Susan D. Brandenburg Kelly Estes Contributing Writers Barbara English, Dianne Tribble, Dr. Carlton Robinson, Dr. Julius Demps, Jo-Ann Yau, Suzy Jackson, Twyla Prindle, & William Mora Subscriptions (904) 265-0765 www.entrepreneursanchor.com ©Entrepreneurs Anchor Magazine may not be produced without written consent.
There is no gain saying that you’ve experienced the harsh economic reality that has changed business decision making process, the way businesses is conducted, and the decision between choice and scarcity. This certainly isn’t the first time the economy has taken this pathway. There is a fundamental economic shift and a new wave of economic awareness taking place around the world. The United States is not alone in this; thus the decision of economic super-powers and the performance of emerging markets will dictate the length of this economic cycle. The economic performance broadcast on the media raises hope that consumers and business managers are ready to get back to the reckless business and economic decision that crumbled business empires, and put so many entrepreneurs out of business. Some are hoping that the economy will return to “normal”, the harsh truth is that the present economic state is the “new normal.” The game has changed! Only innovative business leaders and companies that are willing to accept the “new normal” and conduct business differently, will survive. Today, every business decision is faced with consequences and consciousness. Entrepreneurs Anchor Magazine will continue to help our readers attain this level of consciousness required for the present economic landscape. The choices we make under these constraints (time, budgets, and manpower) define the life and going-concern of our organization. This wave of consciousness will produce a new definition of consequences, impact consumer choices, and heighten customer satisfaction. All purchase decisions now require more time and more analysis. Being faced with the same constraints, Entrepreneurs Anchor Magazine rolled out a new strategy, “Our readers voice count.” We want to hear from our readers. We exist for our readers and we are fully ready to go to work for you. We know that your choice is no longer between alternatives but that of absolute necessity. Hence, we are re-branding and focusing on core business issues that you face on a daily basis. Entrepreneurs Anchor Magazine is full of success stories drawn from industry leaders who have taken advantage of the “new normal.” These nuggets of collected strategies from the finest entrepreneurs are meant to shine a light on your strategies. Remember, none of these strategies, decisions, and success-driven processes are silver bullet. No two businesses are the same, or should be the same, because you are unique and so are your business needs. Let’s hear from you! Your voice counts. As we strive to be every entrepreneur’s success guide, your voice will take us there. Happy reading!
Disclaimer: Entrepreneur’s Anchor Magazine is intended to provide general information about business topics, but does not provide legal business advice. The views and opinions presented on all articles and advertisements are solely those of the authors, and do not represent those of the company. Therefore, PowerHouse Anchor Management, and the management of Entrepreneurs Anchor will not accept any liability in respect to any incorrect, incomplete, or unacceptable statement on the magazine.
Vol. 2, Issue 2
FEATURED Latitude 30, Brent Brown
Learn how this former US Naval Officer began one of the hottest entertainment ventures in town. Latitude 30.
Jaxport is Jumping Ahead
The opportunities for Jaxport-related jobs are growing nearly as fast as the group’s global reputation for excellence
Jacksonville Mayor Candidates 27 answer tough question Both candidates were asked tough economic questions facing the First Coast and what they plan to do about should one of them win the election.
Articles Cover story page 12 photo by Danelle Platt
Finance, Accounting & Taxes 18 38
What innovative small business leaders are doing to win federal contracts Tax Evasion VS Tax Avoidance
Business Management & Compliance
Editorials 03 10 44
26 34 36
A fresh take on normal Ask the experts Is your business the best kept secret?
The ABC’s of ETF’s Social innovation of NE Florida Franchise law 101: Part 2
Mind, Body & Soul 19 24 43
Going Global Ethelbert Nwanegbo Publisher/Editor in Chief
Going international through international business development
Motivational quotes Encouraging young entrepreneurs Celebrating milestones, completing tasks
GoingInternational Abroad through International Business Going Through International BusinessDevelopment Development Words by William G. Mora
n today’s global economy, many companies cannot afford to live with misconception that their domestic markets will always be strong. For this reason, many companies should choose to market overseas as well. Very often, I encourage our companies in the United States by exporting their “Made in the USA” products. If you don’t offer enough services locally, now is the right time to do it.
It is also important to consider that training and support are essential to succeed in doing business in international markets...
The fact is that almost 96% of the world’s population (and potential customers!) are outside the United States, 75% of the world’s purchasing power is outside the United States and 70% of U.S. exporters have fewer than 20 employees. By venturing into international markets, a company can avoid seasonal fluctuations in sales and increase profits in general through exposure to a greater number of prospects. Furthermore, customers who themselves take advantage of the Internet look for suppliers of goods and services in foreign markets. The decision to go international must be made with care, as there are many risks and potential obstacles to consider. Cultural and language barriers are among the most obvious of these considerations. Variations in religious beliefs, societal norms, and business negotiation styles all have an impact on how business needs to be conducted when dealing with foreign counterparts. Language barriers may present an obstacle when trying to communicate the benefits and advantages of a company’s products and services. There are also inherent political and economic risks when expanding into foreign markets. Instability of some foreign 6
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governments can pose a threat to the security of a business. Natural disasters can occur. Foreign exchange might present an obstacle to getting paid when you sell abroad. However, the benefits of going international remain an advantage, even with all of the risks carefully considered. An organization that wants to go overseas needs to decide how to enter a targeted market, and prepare by developing a specific international marketing plan. An international marketing plan should outline and define the product or service to be sold and the country or countries in which it will be sold. In doing so, it is essential to consider whether a product that works in the United States will work in other markets. A company that wishes to expand internationally needs to be familiar with the target country’s culture and determine the feasibility of marketing its product or service in that environment. Market conditions must be assessed to ensure that a new company can win a share of the foreign market. Tariffs, duties and compliance with the export administration regulations of the United States are other important issues to consider as well. These considerations require some expertise in the financial and legal aspects of exporting. phanchor.com
Developing the required organizational processes and allocating appropriate resources to an international effort often requires creating a separate export department within an organization that is responsible for all aspects of dealing with foreign markets. Many companies attempt this by making a single sales manager and his or her assistants responsible for setting a budget, shipping goods and developing international growth. However, this can be an expensive alternative when overhead and liability costs are considered. On average, if a company chooses to go alone, it may need up to five years to develop a sizeable market share. In many cases, assistance from an outside source can dramatically reduce the time it will take to become established in foreign markets. The use of a consultant or a company with the “Know Who” and the “Know How” is often the most feasible way to break into an international market. These marketing authorities can manage your entire international sales 8
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effort more quickly and efficiently and provide localization services, which means adapting a company’s image to fit another culture. They can also get to work translating any and all materials to the desired language. Export management companies offer working capital, clearing customs paperwork, and trade insurance for a fee and commission. Beyond the obvious value of knowledge and access to extensive overseas contacts, they also offer sales support. A good export management consultant has years of specialized experience in negotiating with governments, freight forwarders and banks. Strategic alliances for a win-win situation are the best deal at the moment. Expanding into foreign markets by establishing a joint venture is an effective way to equilibrate any political or economic risks that may not be immediately apparent. Setting up a joint venture can also dramatically reduce the time it will take to bring a product into a new overseas market because the burden of marketing and sales
is shared with another company already operating in the foreign market. When establishing a joint venture, though, it is vital to find a trusted partner. This requires due diligence in researching the host market and performing checks and balances to ensure that foreign partners can sufficiently cater to the needs of both an organization and its customers. To be effective, the proposed alliance must bring enough value for both parties to invest directly in a joint venture. Sufficient financial, physical, and managerial resources must be available to manage a new marketing effort. It is also important to consider that training and support are essential to success when doing business in international markets. A website designed for the market place with a separate page for international sales is critical. Consider also a product demonstration made through video development and company and product’s documentaries. It’s important “to get in the right pipeline”, when managing any project overseas, . A counterpart that speaks the
languages of the host culture and has sufficient knowledge of your market demographic , is crucial for any company to succeed abroad. Someone who knows the markets and regions, who has the network, has the “Know How” and the “Know Who,” and the ability to partner will only serve to improve efficiencies and reduce costs for your venture. Your domestic markets will not always be strong. It’s not only important, but necessary, to expand overseas. William G. Mora an American International Entrepreneur, engineer with a MBA and a Consultant Business Specialist background with key assignments not only in the United States but in Latin America and Europe.
Ask The Experts
A?K THE EXPERTS Dr. Julius Demps II Dr. Julius Demps II, Assistant Professor of Management in the Davis College of Business, was born and raised in Jacksonville and has a deep commitment to the city. He has a Ph.D. in Education/Organizational Leadership from Northcentral University, a Master of Arts in Human Resources Development from Webster University, and a Bachelor of Arts in Sociology with a minor in Business from Florida State University.
Dear Dr. Demps: I am a small business owner in Jacksonville, Florida and I am having problems with motivating my employees. I have tried everything from incentives to discipline. This business is my dream and I do not wish for it to fail. I am losing my mind and my hair. What can I do? - Candace of Jacksonville
Hello, Candice! Thank you for writing. What I’m hearing from you are two separate issues: motivation and health. Before I can provide you with answers, we must first determine the true nature of motivation. There’s a certain myth surrounding this phenomenon that most people overlook when attempting to lead others. This myth primarily focuses on the belief that many entrepreneurs believe they can motivate anyone to do anything and any given time. In reality, people will only “buy what you’re selling”, if it interests them.
What is Motivation? The term motivation has actually become somewhat of a colloquialism over time and is frequently used out of context. There are several definitions of motivation in existence. J. M. Invancevich, a writer who specializes on human relations, defines motivation as “a set of attitudes that predisposes a person to act in a specific goal-directed way. It is an inner state that energizes, channels, and sustains human behavior to achieve goals.” Let’s take a look at this particular definition while mirroring it against a few events that you may have seen or experienced. Have you ever stopped to think about why certain employees who possess the necessary knowledge, skills, and abilities are not performing to their optimum capabilities? Why have organizations established progressive disciplinary action plans for those who refuse to perform? Even further, why do some companies feel the need to provide bonuses and incentives for goals their employees should try to achieve in the first place?
Understanding Free Will Human beings possess free will. They are driven by things that motivate them intrinsically. Think of it this way. If everyone in the world were doing the right thing, there would be no parking tickets, penalties, or prisons. Simply stated, these three consequences exist for those who are not intrinsically motivated to abide by the law. The same school of thought exists within organizations. As mentioned earlier, if all of your employees were performing as they should, there would be no need for progressive disciplinary action plans. You must understand that not everyone possesses the desire to perform 100% of the time or consistently follow organizational rules. Ultimately, people will only do what serves them best. The 10
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existence of consequences is proof that people possess free will.
Changing Our Perspectives on Motivation I know what you’re thinking: “This goes against everything you were ever taught about motivation”, and you’d be right. We, as a society, have learned so much about motivation and motivating others, that we sometimes cannot believe that we can fail when we attempt to engage in this process. Some readers of this article will even disagree with this philosophy, which demonstrates their free will to think independently – thus proving my point. This now brings me to the subject of your health. We all know how stress can impact the human body. I have several friends who are in leadership positions with the same problem. They cannot understand why they don’t possess the ability to get their subordinates to follow their requests and they have allowed their inability to motivate others to eat them from the inside out.
Persistence is Key From now on, I would like for you to approach motivation from this cynical viewpoint. Never stop trying to inspire, cheerlead, mentor, guide, or coach your employees because you can reach some of them. Additionally, provide all the training, support, and resources necessary to facilitate their success. The key for you is sustainability, which begins with a mindset. I would encourage you to remember that understanding the true nature of motivation is the first step. Understanding your follower’s decisions and free will to ignore the rules and not taking it personally is the next step. Your goal is to grow your business and maintain your health so that you may enjoy the fruit of your creation. Beyond this, if you cannot get your employees to follow after all of your efforts, you may need to search for new talent. I hope this helps! I’m excited to see where a fresh understanding of motivation and a renewed drive to succeed will take you.
A8K THE EXPERTS
We want to hear from you If you have questions regarding any of the following areas, please contact our experts at: email@example.com
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PLOTTING A COURSE TO WIN:
BRENT BROWN steers LATITUDE 30 TO SUCCESS words by Kelly H. Estes photos by Danelle Plat
rent Brown likes to win. A former high school football player and Jacksonville transplant, Brown is an entrepreneur who talks unabashedly about the hard work and strategies behind the business plan for Latitude 30, a new and successful destination entertainment center for Jacksonville, Florida. You’ve probably already heard of Latitude 30, an upscale one-stop entertainment place that aims to feed and entertain kids and adults alike. Brown’s aggressive use of social media has spread the word of Latitude 30 like wildfire. There’s no mistaking that the formal naval officer plots out his strategies to ensure business success. Adding to the attraction is the Latitude Grid app, which will be available soon for free on ITunes. Brown said he hopes this app will capitalize on the social media trend and revolutionize a night out. Brown is the first to say that Latitude 30 is not solely his success. The idea for Latitude 30 started a couple of years ago. Traveling around looking at different entertainment centers with his friend Greg Garson, who worked in the investment banking industry with him, Brown took the ideas that best fit Jacksonville’s needs, and formed a plan and partnership for Latitude 30. Initially, Brown said, the idea was to buy land and build the entertainment center from scratch. Then, he said, the housing bubble burst. As a result, The Brownstone Group (BSG), of which Brown is a managing partner, was able to buy the old Toys R Us building across from the Avenues Mall on the southside of Jacksonville. The build out wasn’t cheap, but Brown said the business plan all but assured success. phanchor.com
Latitude 30’s sports theater at it’s Jacksonville location.
Sow for success, reap the rewards Success was not left to chance. Brown and his partners at BSG collaborated with Trifecta Management Group, the Brunswick Corporation, and executives in the entertainment and restaurant industries to make sure the detailed business plan for Latitude 30 was headed for success. “This concept evolved through a lot of hard work,” Brown said, noting that the success of Latitude 30 came about from asking those who have the experience and expertise for advice. “We tapped into people who have been there and done that. It also took a lot of hard work from everyone involved.” Brown’s focus on social networking has truly paid off. Four months after opening, Latitude 30 has nearly 5,000 ‘Likes’ on Facebook, and its reputation as an upscale entertainment place is growing exponentially. Brown is quick to note that
Pennsylvania, he and his brother Kyle had a routine that kept them busy, since both their parents both worked. His dad was a department store salesman and his mom worked as a secretary. He recalls as a 14-year-old riding his bike two miles to get to the gym. He and his brother worked odd jobs while other kids played after school. “He (Kyle) instilled a great work ethic in me,” Brown said. Perhaps what has given him an unusual perspective is the closeness he shared with his older brother when they were teens. “Don’t go with the crowd. Be yourself. Focus on your goals,” his brother Kyle told him time and again growing up. Brown’s passion for winning is something he traces back to playing football in high school and his time at the U.S. Naval Academy. Brown is the first to credit his childhood for preparing him well. The U.S. Naval Academy is known for being academically rigorous and shaping men and women into leaders. Brown said he learned invaluable lessons about how to motivate people during his time at the Academy. “The biggest issue is leadership,” Brown said. “If leadership isn’t willing to go to battle for you, that’s a big negative. Surrounding yourself with good people is a must, regardless of the venture.”
Brown’s Rule: Surround yourself with good people When the idea to form a partnership came to him as an investment banker, Brown reached out to the people he knew to be honest professionals with integrity. He said he feels fortunate to have excellent partners who share his work ethic in The Brownstone Group. Greg Garson ,a former colleague in the investment banking industry, Ron Weaver, a friend he grew up with in Pittsburgh, Damon Brush, a Jacksonville native whom he met
I think your best education, unfortunately, is just being out there in the street and just working and meeting people,” he noted. “I’ve learned the most just by being observant and listening. business is also very good. “We couldn’t be more pleased with how we’re doing,” he noted. The hard work to get Latitude 30 from an idea to a 45,000 square foot entertainment destination has paid off. Plans for similar entertainment centers, each with their own unique Latitude number, are in the works.
Early experience shaped the entrepreneur Brent Brown is no stranger to hard work. “My brother practically raised me,” he said. Growing up in Pittsburgh, 14
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through real estate dealings, and his brother Kyle are all partners Brown works with every day.
Approach challenges with a strategy Every entrepreneur faces challenges and Brown said he is no different. His approach is to acknowledge the problem and address it. Instead of becoming overwhelmed, his approach is strategic. First, he said you have to focus on the bigger picture. Don’t get bogged down on the little details, Brown said. They’re little for a reason.
Latitude 30’s luxury bowling lanes at it’s Jacksonville location.
Next, list what is positive and negative on paper. Keeping a journal is a great way to process what is currently going on and practice self-reflection. Talk with trusted advisors and/or friends. The deeper you go into a project, the more you will need good, selfless advice. Only people you trust can provide that. Finally, get help from a consultant, if needed. Don’t always try to take the problem on yourself.
Advice for budding entrepreneurs Entrepreneurs who don’t have a college degree but do have a great business idea and a drive to succeed can still find success. They would probably have an easier time getting into something that isn’t very capital intensive, Brown said, unless they have a source of capital. But for those entrepreneurs who already have experience, but perhaps no college degree, the road is a little easier. How much experience you have generally dictates how much capital you can raise, Brown said. “It’s all about the capital, trust me.” Brown acknowledged that there are a lot of people with good business ideas but that it’s the ones who make those ideas a reality that have a chance at a nice payoff. He advises entrepreneurs starting out to learn from others who have been successful. You can’t go at this alone and the farther you get into your project, the more of a reality that will become. Also, look at the industry you’re interested in and find a niche. Customers are always looking for something new and
The front exterior to Latitude 30 off Phillips Highway in Jacksonville.
something fresh. They want something they believe is tailored specifically for them. Next, you need to find out what your capital source will be. Projects begin and end with proper finances. It’s all about the money. Don’t be afraid to ask too many questions, only be afraid of asking too few. Keep moving forward. Don’t get weighed down by things that aren’t essential to the project. Get a mentor – It’s invaluable to have a great person to ask questions of who has the business experience and can be a sounding board. phanchor.com
Entrepreneurs need education too Reading books about business will not sufficiently prepare a budding entrepreneur for what starting a business is like, Brown said. “I think your best education, unfortunately, is just being out there in the street and just working and meeting people,” he noted. “I’ve learned the most just by being observant and listening.” Listening to what people want is part of Brown’s strategy as Latitude 30 evolves. It’s already a popular destination that offers comedy acts Thursday, Friday and Saturday nights. The restaurant, Sunset 30 Tavern & Grille, is the centerpiece of Latitude 30, around which all entertainment revolves. Brown also noted that very soon Latitude 30 will begin to offer lunch packages for kids on the weekend, which will include either a movie and a lunch, or a play and lunch. When it’s either too hot to play outside or kids just want to go see a movie, Brown said Latitude 30 will be providing some muchneeded alternatives for parents. About the same time the lunch packages become available, the Latitude 30 App will come online, and Brown said he is counting on the combination of all these things to continue to propel Latitude 30’s success upward.
Give back to the community and they’ll give back to you!
Mr. Brown can be confident in his plans to make Latitude 30 an enormous success.
Kelly Estes is a freelance writer, blogger, and co-author of Online Business Elements. She is a former award-winning newspaper journalist who is adept at penning feature articles whether in print or online. 16
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As Brown and his partners in The Brownstone Group have enjoyed much success, they’ve made it a priority to give back to the community. As Brown noted, giving back “was instilled in me by my parents. We’ve always been churchgoers; we’ve always tithed. We’ve always been respectful of people no matter who they are. It’s not always the popular thing to do. That goes back to surrounding yourself with the right people. Brown is co-founder of Hatua International, original funder of Project C.R.I.M.E. Jacksonville, and most recently, co-founder of Latitude Cares, a charity that funds cancer research. He hopes by offering an app that allows people to give a quarter to Hatua International when people pay their bill at Latitude 30, and learning about the Latitude Cares initiative, people will become more aware of the need to give back to the community through charities. Though successful, Brown has made his share of mistakes. One thing he would have done differently (if he had a crystal ball), would be to not go into real estate until a year ago. But, he said, “The way I look at it is the mistakes have made me a better person. You learn more from your mistakes. That’s life. You’re going to make mistakes. You’re going to get stronger.” Brown, who has three children with his wife Antonia, says he tells his kids about the risks and rewards associated with entrepreneurship. As for whether they will follow in his footsteps, Brown said he just wants them to be happy in whatever profession they choose. What is the secret to success as an entrepreneur? “Perseverance,” Brown said with confidence, “and surrounding yourself with the right people.” phanchor.com
Finance, Accounting & Taxes
MOTIVATIONAL BUSINESS QUOTES
“Leader ship is a poten combin t ation o f strateg and ch y aracter . But if you mu st be w ithout one, be withou t the strateg y.” Norman
What Innovative Small Business Leaders Are Doing to Win Federal Contracts words by Barbara English
dmiral Jonathan Greenert, Vice Chief of US Naval Operations, recently talked about how hard it is to operate under the federal government’s Continuing Resolution, saying, “The major problem of a continuing resolution is, we’re continuing. Everything that’s a new start, we can’t get started.”
of fiscal year 2011. Second, take the time to conduct in depth market research on the agencies you should target for business. This will give you a clear focus and cut down on your time and energy chasing opportunities that will not result in a contract. Third, market your business solely to the five or six agencies you targeted from your market research. Innovative
“ H ig h a c h ie v e me n t a lways t a k e s p la c e in t h e f r ame wo o f h ig h e rk x p e c t a t io n .” C h a r le s K e t t e r in g
ou t “N ob od y ta lk s ab as su r vi va l, bu t en trep re ne ursh ip t ha t it is an d w ha th at ’s e xa ct ly w g in nn th in ki ng . Ru nu rt ure s cre at i ve ss e ug ht me bu sin th at first sh op ta ien ce ; it’s ab ou t is no t fin an cia l sc d se lli ng .” tr ad in g: bu yi ng an An ita Ro dd ick
e asil y t h a t ’s p e o p l e’s , s s e “ Busi n o ther d - i t ’s e n i f e d .” mo ne y Pe t e r
Innovative small business owners in government contracting are implementing these strategies in frenzy. Join in the fray and jumpstart your federal government contracting business to the next level. Are you as a small business continuing? Did you make the right start in 2011 to win federal government contracts? As a 36-year-old former executive Contracting Officer who awarded contracts and small business official, my advice is simple: concentrate on business certifications, field research and concentrated marketing. Obtaining all the small business certifications you can is a priority. If you are eligible for 8(a) certification which allows you to obtain sole source contracts from the federal government contracts for nine years, make that your first start. There are other business certifications you should consider also: – Women Owned or Historically Underutilized Business (HUB) zone. Women-owned small businesses can participate in the new Women Owned federal contracting program. The U.S. Small Business Administration announced the new program in February. The new Women-Owned Small Business (WOSB) Federal Contract Program will be fully implemented over the next several months, with the first contracts expected to be awarded by the fourth quarter 18
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small business owners in government contracting are implementing these strategies in a frenzy. Join in the fray and jumpstart your federal government contracting business to the next level. The major problem of continuing resolution is, well, continuing. It’s about making sure the momentum stays and the obstacles are removed. Focus on business certifications, field research and concentrated marketing and you’ll be well on your way to a happy and healthy small business experience. Barbara English is guided by a 36 year meritorious federal contracting career with the Department of Defense. She has the knowledge, understanding, and insight necessary to be more competitive in the government contracting arena.
et go g so ur e sition, s o y t t o e e l p ’t n g ur t “Don e to yo positio doesn’ r s o g u o l e c if yo you that down, t sho ith it.” go w ll owe nt is lin P o C redie t and g n i l t itica our bu s as ’ y e cr “Th ng off hing. It t of i o t t l e t e m A here g at. ut t g so doin le as th ideas, b ng simp le have ethi som o peop ew d to ot f are decide now. N week. o x m h e e n t w t th a Not abou rrow. he true er, not o tom today. T is a do r But preneu e r t n ” e mer. ll drea shne n Bu a l o - N
er Dr uck
“Your mos t unhappy customers are your greatest s ource of learning.”Bill Gates “A man sh ould never neglect his family for business.” - Walt Dis ney “S el l lik e he ll an d de li ve r w el l! So w ha t do yo u ne ed to su cc ee d? ” Pa tr ic k Dr ie ss
“No ente rprise ca n exist f itself alo or ne. It m inisters some gre to at need, it perfor some gre ms at servic e, not fo itself, b r ut for o thers... failing th o r erein, it ceases t profitab o be le and ce ases to exist.” - Calvin Coolidge
“Busines s is neve r so hea when, lik lthy e a chic k en, it mu a certain st do amount of scrat around f ching or what it gets.” - Henry Ford
“In tr ying to be the be st and re ach my finit e goal, to re scind f rom risk is to choo se not to succe ed.” - Ethe lbert Nwa negb o
JUMPING AHEAD IN JOBS, JOBS, JOBS AND MORE!
words by Susan Brandenberg
Vol. 2, Issue 2
he Jacksonville Port Authority ( Jaxport) has good news for job-seekers: The opportunities for Jaxport-related jobs are growing nearly as fast as the group’s global reputation for excellence. According to a study conducted in 2009, more than 23,000 citizens of Northeast Florida have jobs that are directly dependent on the port. On a broader scale, an additional 43,000 jobs throughout the state of Florida are related indirectly to the activities of Jaxport. Robert Peek, Jaxport’s Director of Marketing Development, says that the port’s economic impact on the First Coast community is beyond measure, simply because of the ripple effect created by each new company that chooses to ship cargo in or out of Jaxport. “We have established a very large footprint outside the gates of Jaxport as companies have expanded their operations,” he said, giving the example of a new company locating in Jacksonville, opening a warehouse or distribution center that is not on port property, but moving their product through the port’s docks. In addition to the dozens of company employees handling the product, the ripple effect of that one company extends to employment for truck drivers, longshoremen, forklift operators, security officers and others creating possibly 100 to 150 jobs. “We are an economic catalyst in Jacksonville,” said Peek, explaining that, as an independent government agency created by the Florida legislature, Jaxport operates primarily as a benevolent landlord, managing the upkeep, improvement and expansion of Port Authority-owned facilities and coordinating their use by private companies. Additionally, Jaxport offers year-round cruise ship service aboard Carnival Cruise Lines’ ship Carnival Fascination. Private companies fund the port’s day-to-day operating expenses, paying for use of the port facilities, and the port has yielded a positive net income each year for the past ten years. Just last year in 2010, despite the slump in international trade, Jaxport was one of only a few U.S. ports to increase container handling by ten percent or fiscal year 2009. In fiscal 2010, Jaxport handled about 826,000 TEUs (twenty-foot-equivalent units). Jaxport was also recognized in 2010 as the second largest handler of vehicles in the nation, having experience a 24 percent annual increase from 2009, with approximately 519,000 vehicles handled. Certainly, jobs are a direct benefit derived by the community from the successful operation of Jaxport. Joanne Kazmierski, Manager of the port’s Community Relations and Environmental Advocacy, added that the benefits to the community go far beyond the immediate economic impact of employment. phanchor.com
“There are so many business opportunities created by our operations,” said Kazmierski. “Many existing businesses are expanding because of port-related activities, and we have created a website, JaxportJobs.com, to streamline the job search process for potential employees who want to work with businesses that work with or at the port.” Currently, JaxportJobs.com has over 100,000 registered users and more than 250 companies posting jobs and researching resumes. In addition to its job website, Jaxport actively supports the Employ Florida Global Banner Center for Logistics and Distribution, a consortium of Florida Community Colleges and Universities that links industry, economic partners and workforce partners and serves as a resource for education, training and professional development. Jaxport employees provide tours for students, schedule educational partner meetings and develop training and curriculum. “We’ve now established our industry cluster – career academies for students from 9th through 12th grades,” said Kazmierski, “and six high schools in our region
have Jaxport-sponsored international or career centers, enabling students to learn about international trade, finance, and hospitality job opportunities. Actively involved with the Mayor’s International Committee, and an employer of choice for high school and college students seeking summer internships, Jaxport also works closely with Junior Achievement world-wise on the JA GLOBE program. Students at Jacksonville’s First Coast High School interact with students at Born Jesus High School in Curitiba, Brazil, developing joint businesses ideas and learning to trade with one another. Enthusiastic about both the educational and environmental outreach of Jaxport, Kazmierski worked closely with Greenscape of Jacksonville, Reynolds, Smith & Hill, Duval County Public Schools and the City of Jacksonville on finalizing the Oceanway Outdoor Tree Classroom Project. Jaxport also sponsored Greenscape of Jacksonville’s Annual Flowering Tree Sale in 2010, having placed over 47,000 trees in the community during the past four years. On land and sea, the positive outreach of Jaxport can be felt. In December of 2009,
According to a study conducted in 2009, more than 23,000 citizens of Northeast Florida have jobs that are directly dependent on the port. On a broader scale, an additional 43,000 jobs throughout the state of Florida are related indirectly to the activities of Jaxport.
During the 12 months ended Sept. 30, 2010, JAXPORT facilities moved 826,580 twenty-foot-equivalent container units, up 10 percent from the prior record of 754,352 TEUs in fiscal 2009. 22
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Jaxport sponsored the first annual Right Whale Festival at Jacksonville Beach, already having supported the earlier launch of the Right Whale Protection and Ship Recognition Program off the coast of Northeast Florida. The Jacksonville Port Authority also has representatives travel all over the world to identify and bring companies to Jacksonville, including large shipping lines like Hanjin. “We want to attract the major shippers, the large companies manufacturing goods, to ship their products to Jacksonville,” said Peek. “We let them know that we have the network necessary to make the cargo move on and off the port. On the other end of the spectrum, we have employees whose full-time position is to help find markets and customers overseas for Florida companies that have products and services to sell.” Jaxport works with the Jacksonville Regional Chamber of Commerce Cornerstone Division, a strong network of the top non-profit and for profit business leaders in the community, all with the common goal to grow Jacksonville’s profile nationally and globally and establish the City as a leader of trade and commerce. In conjunction with a drive to expand internationally, Jaxport also partners with all of the local business alliances and chamber organizations, including The First Coast African American Chamber of Commerce, the
Jaxport employee’s hundreds of people across various job types. From security to load-masters, every job at Jaxport is vital. Not only to their operation, but the communities in which rely on them for their day to day goods and services.
First Coast Hispanic American Chamber of Commerce, the First Coast Asian American Chamber of Commerce, IndoUS Chamber Jacksonville Asian American Alliance, Brazil-Jacksonville Alliance of Northeast Florida, and the Puerto Rican Chamber of Commerce. In September of 2011, Jaxport will be participating in the first annual Experts of Industry Awards Ceremony sponsored by Entrepreneur Anchor Magazine. With two top business executives attending from each of seventeen countries, it is exactly the type of positive initiative that fits with the outreach goals of Jaxport. As to the Jacksonville Port Authority’s strong connection to the entrepreneurial spirit on the First Coast, Yetunde Oyewole, the port’s Small Emerging Business Program Coordinator, works to hire Jacksonville Small and Emerging Business (JSEB) certified business owners as Jaxport vendors in various projects. “When a procurement request comes through at Jaxport, I am allowed to look at it and determine if there is an opportunity for a small business to bid for it,” said Oyewole. In addition to JSEB, there are state/federal certifications available under the Minority Business Enterprise (MBE), the federal’s Disadvantaged Business Enterprise (DBE) or the U.S. Small Business Administration’s 8(a) JSEB or an 8(a). An expert at each of the certifications, as well as actively supporting several other small business related activities of Jaxport, Yetunde Oyewole participates in several outreach programs annually, including MED Week (Minority Enterprise Development), the Annual Florida Black Expo and the Annual Global Trade Symposium. Joanne Kazmierski has been a key Jaxport partner in working with all of the small business initiatives as well as with helping to develop the very successful International Trade Certificate Program – Export Series, launched in 2008 in partnership with the University of North Florida’s Small Business Development Center, Beaver Street Enterprise Center, the U.S. Department of Commerce and Enterprise Florida. In 2010, Kazmierski, received a
seven-state regional award as “Minority Small Business Champion of the Year.” The International Trade Certificate Program – Export Series has, since its inception, held six eight-week training sessions in the region with nearly two-hundred small business owners in attendance. When asked about the Jacksonville Port Authority’s community outreach programs, Kazmierski listed several charitable avenues of giving, including sponsoring the annual Big Brothers Big Sisters of Northeast Florida Mentor Christmas Party for more than one-hundred children, and bringing holiday cheer and gifts to nearly 75 children in Jaxport’s Talleyrand Marine District’s after school program, as well as supporting the program year-round. “We have five pillars of excellence on which we base our corporate outreach,” noted Kazmierski, listing Environmental Awareness, Education, Small Business, Jobs/ Economic Benefit and Community. As a committed team, Robert Peek, Joanne Kazmierski and Yetunde Oyewole are quite an effective threesome. On reviewing the many programs in which they are involved, and weighing those programs in relation to the vision and mission of the Jacksonville Port Authority, they must certainly feel a great deal of satisfaction. “We’re very concerned about supporting our community,” said Kazmierski. “We’re here and our job is to help people thrive and succeed in our local economy.” Susan Brandenburg is a freelance journalist, marketing writer and public relations professional with more than twenty years’ experience writing newspaper columns, feature articles, press releases, brochures and books for individuals, publishers, non-profit and for-profit organizations. phanchor.com
Mind, Body & Soul
and are influenced by their peers and the media. As parents we often hold our sons and daughters back from reaching their financial potential early because we think they are too young. According to Sharon Lechter, founder of Pay Your Family First, one of our biggest problems is protecting our kids. Self-confidence and life skills come from celebrating our successes and learning from our failures. It is at a young age where kids can learn and repair their mistakes. A young girl I know always wanted to comb or style everyone’s hair. By the time she was four, she would make comments on the hair styles of older women, offering advice such as, “That haircut doesn’t fit your face.” It’s no surprise that now, at the age of nine, she wants to be a hairstylist when she grows up. If you are watching your children and are not quite sure or don’t see a particular interest, consider purchasing a gum ball machine. Use the cash earned to teach them how to manage their money and show them the ins and out of a business. Pay Your Family First has a great business start up kit
right side list all the things you are good at or that people say you are good at. Then give yourself some time to begin to cross off one thing from each side. This should be pretty easy until you get down to about three or four on each side. This is where you and your children, or your children and their friends start a discussion and try to figure out what they should cross off on each side. Once complete, you should have only one thing from each side left. The left side is your passion and the right side is your talent. Your passion plus your talent is your purpose. For example a person who loves singing and would do it for free but is really talented at writing could be a song writer. A person who loves to be around kids and is talented with basketball could be a basketball coach or run a basketball camp. Once this activity is complete, we, as parents step in to educate teens on the paths they can take to fulfill that purpose. A great board game to play for teens is Thrive Time which was created by the Pay Your Family First organization. Books your teen will find interesting are Quick
But don’t think you have to set aside hours on a Saturday afternoon to teach kids about financial responsibility. Take time every day to talk to your kids about finance and entrepreneurship.
Encouraging Young ENTREPRENEURS words by Twyla Prindle
for kids that comes complete with a bubble gum machine. You could also purchase a bubble gum machine just about anywhere and use one of the following books to make the learning experience more fun. For kids under the age of 8, try Hilary’s Big Business Adventure by Lori Nelson Lee, or Alexander Who Used To Be Rich Last Sunday by Judith Vioist and Ray Cruz. Affirm the things they’re already doing
n today’s tough economy many of us are looking back, reflecting on the paths we could have taken or the choices we could have made. We can’t change what happened to us, but we can change what happens to our children. We want different for our kids because we love them and that starts with teaching them about their finances. As parents, we have to step up to the plate because personal finance is not taught in most schools. April is financial literacy month, making it a great time to teach our kids about finance and encourage the little entrepreneur within.
You can never start too early The first question is – how do we do this and at what age should we start? Many financial experts agree that the earlier, the better. Kids model behavior, understand relevance, 24
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For kids in their pre-teen years, their interest may be more apparent. A child drawing pictures a lot may desire to be an illustrator or graphic designer. If your son or daughter loves taking care of animals, maybe they want to be a veterinarian. I remember it was in elementary school that I developed a love of writing and thus became an author and publisher. At this age a bubble gum machine could work as well. Also consider lemonade stands, bubble gum machines, pet sitting, mowing lawns or washing cars. Some great reads for these kids to assist in entrepreneurship and money management are Lunch Money by Alexander Clements, Escape From The Rat Race by Robert Kiyosaki and Sharon Lechter and African American Entrepreneurs by Jim Haskins. Identify your child’s interests and passions The passion test is a fun activity for your teens to complete with a group of friends or in a family setting. Simply make two columns and number them one through ten. On the left side list all the things you would do for free. On the
Cash for Teens by Peter Bielagus and The Teen Girl’s GottaHave-It Guide to Money by Jessica Blatt. Every day moments can be significant But don’t think you have to set aside hours on a Saturday afternoon to teach kids about financial responsibility. Take time every day to talk to your kids about finance and entrepreneurship. Some great conversation starters could be: Is the owner of Dave and Busters a franchisee? Who supplies them with food and supplies and how do they keep it all consistent? Who invented the Nintendo Wii? How did they get the idea? Remember, our kids are our future and it is our job to empower and educate them. What better way than to start with sound financial education? If another recession hits, they will have us to thank for the preparation. Encourage the entrepreneur inside your children and you will encourage a better tomorrow. Twyla Prindle is President and founder of Kash Kids. Through her foundation, Twyla teaches children basic financial and entrepreneurial principles such as learning the difference between assets and liabilities, learning the importance of goal setting and finding your passion to fulfill your purpose. phanchor.com
Business Management & Compliance
The ABC’s of ETF’s words by Suzy M. Jackson
y now you have probably heard about the great new thing in investments – Exchange Traded Funds (ETFs). I call them new because ETFs have only been around for 18 years and because many people don’t know how they work or if they might benefit from adding ETFs to their portfolio. ETFs began trading in the U.S. in 1993 on the American Stock Exchange (AMEX) by State Street Global Advisors. Named the Standard & Poor’s Deposit Receipt or SPDR (pronounced spider) it enabled investors to purchase a basket of securities inside one investment vehicle that would track (act like, or move with) the S&P 500 Index. As with any investment tool we need to learn a few basic so we don’t get hurt. So, let’s get to it – the ABC’s of EFTs!
Asking the questions First things first: What is an ETF? Some people think ETFs are the same as mutual funds. Not so. Mutual funds are pools 26
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of money gathered from many investors and those funds are used to purchase securities of a certain type, strategy or focus. What your dollars purchase are shares of the fund, not the various stocks or other financial instruments purchased by the fund manager. When you are ready to sell or redeem your mutual fund shares you have to wait until the end of the trading day because the fund has to determine the fund’s value based on the worth of the investments it owns, less the investment companies expenses for managing all that money. The value of your share is the Net Asset Value (NAV). The ETF is also a fund that gathers money, but when it purchases a stock/security you are partial owner of that stock/security. ETFs do not have ongoing management fees like a mutual fund. You only pay commissions for a buy or sell trade, just as you would to purchase individual stocks. The main difference between mutual funds and ETFs is in what they hold in their funds. Mutual funds can have any number of investment philosophies, goals and targets. We normally refer to these investment choices as asset classes – large cap, small cap, international, emerging, utilities, etc. Each ETF tracks a particular security index. An index is a predefined set of financial instruments that attempt to set a benchmark or standard for measuring how well a group is performing. The S&P 500 Index is a list of the 500 leading U.S. companies. Because it is tracking the largest U.S. companies, regardless of industry, it is a good indicator of the overall performance of the U.S. market. Because the ETF does not have to decide which security to buy, they are considered passively-managed.
segments, areas or strategies you are not as familiar with. Want to buy government/credit bonds, coffee, livestock, or the Russian Ruble? There’s an EFT for that!
Concerns that come with ETFs There are some disadvantages to ETF investing that you should consider. Even though ETFs don’t have the ongoing internal fees of mutual funds, there are commission fees that can really add up if you are a frequent trader. Also if you are doing small trades the commission fees could take a large piece of your profits if you are only getting small price movements. There are no load mutual funds that invest in the market segments you are interested in that could be a better deal. ETFs cannot reinvest dividends. One of the benefits of mutual funds investing is the automatic dividend reinvestment features. Your mutual fund dividends can be immediately reinvested at no cost to purchase more shares which can increase your opportunity for asset growth. You have to invest your ETF dividends and that involves commission fees. The investments inside of an ETF are weighted by the securities’ capitalization (number of shares in the market times the individual price of the share). This can make the fund top heavy with certain investments if they are over weighted in a particular stock or industry. If something happens to that stock or industry it could drag the ETF down with it. When investing in international ETFs make sure you know
I believe that Jacksonville is uniquely positioned to create a business environment unlike any other in America, one that fosters entrepreneurship and small enterprise. Benefits to owning an ETF There are several benefits to owning ETFs. Because of this direct ownership you can sell at anytime during the trading day. You are not forced to wait to the end of the business day if the market is in free fall or you want to take profit because of an unusual upward trend. Because of the passively management nature of the ETFs they are less expensive to own or sell. The fund sponsors do not have the expense of researching the market for investment opportunities. Their investment strategy is the index they follow. By buying ETF’s you can cover virtually all of the stock markets because there are many indexes that measure different market segments. Here’s an example. Are you interested in small companies? Take a look at ETFs based on the Russell 2000 which measures the performance of the approximately 2000 small U.S. companies. The EFTs also allows you to spread your risk. Instead of buying 2 or 5 individual small company stocks, you can purchase the entire group with one phone call or a few key strokes. Do you want to invest internationally, take a look at MSCI Brazil Index Fund (EWZ) or MSCI Japan Index Fund (EWJ). ETFs can also be a great way to invest in new market
about any tax implications. Tax laws vary from country to country. Depending on your situation or the composition of other parts of your portfolio this can be another drag on your profits. Always work with your tax advisor before pursuing new investment strategies. ETFs can bring new opportunities for growth and diversity. So continue to receive education and you’ll make smart choice and hopefully increased returns.
Suzy M. Jackson has spent 12 years in the financial services industry in small practice management and as a financial advisor. As a personal financial advisor she specialized in investment portfolio design, retirement planning, and small business financial management strategy. phanchor.com
JACKSONVILLE ECONOMIC IMPACT QUESTIONS FOR
Jacksonville Mayor Candidates words by Entrepreneurs Anchor
$1 Million Savings - Downsize Public Relations Office by 50% • department heads will work directly with the Mayor’s Office to ensure timely deliverance of media inquiries and public records requests $300,000 Savings - Eliminate Use of Paid Lobbyists • The City of Jacksonville pays Washington lobbyists $300,000 per year to lobby the federal government. • I will work closely with our legislative and congressional delegations to advocate for Jacksonville’s best interest in Tallahassee and Washington Brown: I would focus on looking at ways to streamline government and concentrate more on public-private partnerships, finding more partners in the private sector to support such things as our parks, our libraries, our senior centers and the Jacksonville Journey. Getting the private sector and national foundations to adopt a park or a program, or getting the private sector and foundations to give funding to Jacksonville Journey, since it helps with kids and the whole notion of after school programs, getting private sector dollars to support it, which would mitigate our cost. I would also look for more savings by streamlining the government and initiating a strict purchasing policy. I would look at freezing our equipment and vehicle purchases, trying instead to extend the life of such things as vehicles, equipment and computers, but being careful not to hurt productivity oreffectiveness. 2. Describe two areas within City Government which, if reformed, would have the most economic and material impact in closing the budget deficit? How would you approach these areas?
Mike Hogan - Republican www.hoganformayor.com
Alvin Brown - Democrat www.alvinformayor.com
1. What solutions do you have to fix the structural problem with the City of Jacksonville’s budget? Hogan: I have a detailed plan to cut more than $62 million in wasteful government spending: $30 Million Savings – Aggregate 5% Reductions in all Department/Agency General Fund Budgets • flatten organization hierarchy • eliminate vacant positions that are funded each year • combine job responsibilities • combine department and division functions $28 Million Savings - Implement Common Sense Purchasing Procedures: • harness the purchasing power of state and other local governments • utilize best and final offer contracting where applicable • eliminate restrictions on internet and discount store purchasing • implement telecom expense management • evaluate every existing contract These steps will save at least 7% of the $400 million the city spends in purchasing each year. $3 Million Savings – Reduce Mayoral Appointees by a Third • there are currently more than 200 paid mayoral appointees in city government at a cost of more than $12,000,000 • reducing mayoral appointees by a third will save at least $3 million 28
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Hogan: As outlined above and also below, I believe there is at least a $30 million savings to be found by creating efficiencies in structure and function across city government and a $28 million savings to be found by implementing common sense purchasing and contracting procedures. $30 Million Savings – Aggregate 5% Reductions in all Department/Agency General Fund Budgets • flatten organization hierarchy • eliminate vacant positions that are funded each year • combine job responsibilities • combine department and division functions $28 Million Savings - Implement Common Sense Purchasing Procedures: • harness the purchasing power of state and other local governments • utilize best and final offer contracting where applicable • eliminate restrictions on internet and discount store purchasing • implement telecom expense management • evaluate every existing contract Brown: The budgetary process must be changed. As soon as the FY 2011 budget is passed, the process of developing the new budget should begin. The process of developing the budget should gather input from all the stakeholders ‐‐ the public, Council Committees, City Council, and City Staff. I would hold town hall meetings to hear the voters’ concerns and explain the challenges that the City faces. There are a number of areas that would have a significant economic impact. Using direct deposit and emailing the pay stubs instead of sending them by regular mail would save several million dollars a year and not adversely impact any program or service. My approach to cuts will be to first look at areas that would have the least impact on programs and services to the public. Two areas in City Hall that might provide significant savings are the Motor Pool and Information Technologies. The city could save money by privatizing some of those services. 3. If elected into office, how do you intend to approach the rising unemployment rate in Jacksonville? Hogan: I believe that Jacksonville is uniquely positioned to create a business environment unlike any other in America, one that fosters entrepreneurship and small enterprise. Small business entrepreneurs create more jobs and more opportunities than large employers. They tend to be self-starters and less dependent on government assistance. My administration, like none before, will concentrate efforts on proven fundamentals that are known to help existing small phanchor.com
businesses prosper while also attracting new employers. We must: • reduce burdensome regulations • improve resources and information for small businesses • ensure the availability of a skilled and educated workforce in our market • focus on the return on investment for every dollar spent • aggressively expedite crucial improvements at JaxPort A detailed description of our plans for supporting local small businesses is available to download and review at: www.HoganforMayor.com. Brown: Simply put, the next mayor of Jacksonville must be a jobs mayor. The world must know that Jacksonville is open for business. The first step is to retain our existing businesses. Second, we must recruit new firms, new investment and new talent to come and stay in our city. A top priority is targeting the industries identified by our Chamber of Commerce as ripe for growth in Jacksonville: Life Sciences/Medical; Finance and Insurance Services; Logistics and distribution; Aviation and Aerospace; Advanced Manufacturing; Information Technology; and Headquarters Location/Relocation. Additionally, the city needs to work with the business community to create an environment that allows businesses to grow and flourish. This includes ensuring that we have a workforce attractive to businesses, which we can achieve by working with our local education system and colleges and universities.
I will not raise taxes or fees. In hard economic times like these, we should not raise taxes, city fees or add any new fees. - Brown 4. Would you be willing to raise taxes to meet the shortfall in the budget? If not, how do you intend to balance the budget and also boost business performance in Jacksonville? Hogan: Continuing to balance our city’s budget on the backs of hard-working tax payers is not an option. I commit to you, without reservation, that I will not support any tax increase or new fees during my term as mayor. Others will make this promise to get your support, but I have a proven tax-cutting record – Working with Governor Jeb Bush, I voted to cut Floridian’s taxes during my time in the legislature nearly $700 million. Jacksonville’s families and business owners are already overburdened with millage increases, the doubling of our garbage fees, JEA rate increases along with storm water fees that have stretched the incomes of those who can least afford it. I will only fund essential services ...all non-essential budget items are fair game; EVERYTHING is on the table! Brown: I will not raise taxes or fees. In hard economic times like these, we should not raise taxes, city fees or add any new fees. In November, unemployment in the Jacksonville metro area reached 11.6 percent according to The Florida Times Union. Financial activities lost 1,200 jobs, manufacturing declined 1,000 and construction dropped by 700. Foreclosure rates are at record levels. In a recent report by the Brookings Institution, Jacksonville’s economy ranked among the lowest out of 100 U.S. cities. When so many residents and businesses in our city are having a tough time making ends meet, the focus at City Hall should not be on raising property taxes and higher fees, but instead on taking concrete steps to stimulate economic growth. 5. How do you intend to tackle the demise of higher paying jobs in Jacksonville? What specific steps will you take to attract companies to relocate to Jacksonville? Hogan: Government doesn’t create jobs. Businesses create jobs. Incentives in the form of tax breaks for new and expanding businesses are key to making Jacksonville competitive. By balancing our budget and cutting wasteful spending we can prioritize investments in job creating incentives. Brown: The next mayor must embrace the importance of JAXPORT and champion its potential. The mayor needs to serve as a leader working with the state Legislature and Congressional delegation to ensure that funding for the port is a top priority. The mayor should also seek to create a public‐private partnership to accelerate the resources needed to accomplish 30
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the following objectives: 1) channel depth improvements; 2) terminal development and modernization; 3) on‐ or near‐ dock intermodal rail connections to enhance connectivity to inland markets; 4) efficient highway access and motor carriersupport facilities; and 5) local distribution center development.
I believe that Jacksonville is uniquely positioned to create a business environment unlike any other in America, one that fosters entrepreneurship and small enterprise. - Hogan 6. Small business owners and entrepreneurship has been the driver of net job creation in Jacksonville, Florida. Please describe your strategy for enhancing small business owners’ chances of success and creating a sustainable ecosystem of entrepreneurship in Jacksonville. Hogan: I believe that Jacksonville is uniquely positioned to create a business environment unlike any other in America, one that fosters entrepreneurship and small enterprise. Small business entrepreneurs create more jobs and more opportunities than large employers. They tend to be self-starters and less dependent on government assistance. My administration, like none before, will concentrate efforts on proven fundamentals that are known to help existing small businesses prosper while also attracting new employers. We must: • reduce burdensome regulations • improve resources and information for small businesses • ensure the availability of a skilled and educated workforce in our market • focus on the return on investment for every dollar spent • aggressively expedite crucial improvements at JaxPort A detailed description of our plans for supporting local small businesses is available to download and review at: www.HoganforMayor.com. Brown: There are areas where smart investment by the city will yield excellent results for Jacksonville, and as mayor, I would seek to encourage the best leveraging of our resources. For instance, a $5 million fund ought to be built up over the next 2‐3 years for business investment and economic development. The funds would be given to projects based on factors such as the possibility for job creation, the need for the use of the funds to secure the business opportunity, and whether QTI or brownfields funding applies. I would also seek to work with Florida Governor Rick Scott and the Florida congressional delegation to make sure Jacksonville becomes a top priority for state and federal economic development activities. 7. What would you do to diversify Jacksonville’s economy and encourage internal trade? What specific steps would you take to encourage trade between Jacksonville and Brazil, Africa and other emerging markets of the world? Hogan: The key to encouraging trade is Jacksonville’s Port. We have known about the value of the Port to our economy for decades and now at the brink of the most significant opportunity in our lifetime we are scrambling to catch up. The river channel must be deepened to attract the post-Panamax vessels and the navigation problems at Mile Point must be resolved. This issue is the Port’s largest obstacle to growth because it reduces the Port’s competitiveness and prevents its new Asian terminal from handling the cargo it should be handling. We have in our favor the best geographical and logistics position on the Eastern Seaboard. The wealth the Port could provide for this city could be incalculable. I believe the Port should be our primary focus as it relates to economic development. As mayor, I will better capitalize on the tremendous job growth potential in our port. I will work with state and local officials to find dedication funding to solve the issues holding our port back. Brown: The mayor must serve as a tireless ambassador for Jacksonville. The world must know that Jacksonville is open for business. To take Jacksonville to the next level, the mayor needs to provide an aggressive, deliberate and strategic plan. However, all stakeholders must be engaged so that the city can find new ways to retain and attract businesses. Working with the Jacksonville Regional Chamber of Commerce, the mayor must work to remove “red tape” and streamline the process for international businesses to operate here. The mayor must leverage the city’s current assets – JAXPORT, logistics, healthcare and education – to position Jacksonville for future opportunities with potential trading partners around the globe. phanchor.com
I would work closely with the state Legislature and Congressional delegation to ensure that funding for our port is a top priority. Even though money is tight in Washington and Tallahassee, I’m confident we could obtain the necessary funding to complete channel depth improvements; develop and modernize the terminals; and complete on or near‐dock intermodal rail connections because expanding our port will eventually create 35,000 jobs in Jacksonville after the Panama Canal project is completed. The governor recently approved funding for the port of Miami, and I’m confident that Jacksonville will be able to obtain both state and federal funding. Don’t forget, the Navy plans to base a nuclear carrier at Mayport and will need to deepen part of the channel for that. I would also work to create public‐private partnerships with firms interested in doing business in the port to help finance improvements. 8. What is your position with regards to the monopoly of electricity supply and its rising cost in Jacksonville? Hogan: Unreasonable JEA rate increases are paramount to tax hikes on Jacksonville families and businesses. As your mayor, I will appoint JEA Board members committed to rates that make sense and I will hold them accountable. Brown: Throughout the campaign, one of the most often cited issues around the city is the high cost of electricity from JEA. Since JEA is an independent authority, the mayor has a limited ability to directly address the cost problem. However, as mayor I would appoint people to the JEA board who are sensitive to the needs of the community. 9. Are there any cities in the United States that you intend to match economically or use as a benchmark for future economic progress or impact measurement? Hogan: Jacksonville is unique in that we are a consolidated government, but I do believe there are best practices to be learned from cities like St. Petersburg, Charlotte and Charleston.
BUSINESS TODAY With 20,000 copies published bi-monthly, our readers depend on us as a resource for cutting-edge information that will give them the upward momentum necessary to gain a competitive advantage.
Brown: During my service in the Clinton Administration, I had the opportunity to identify and develop best practices in cities around the country. While our city is unique in many ways, I would look to the successes of cities such as Houston and Charlotte which feature mayors that I have personally worked with over the years. 10. What are your views on Governor Rick Scott’s recent rejection of federal funds for high speed rail? Do you propose anything different? Hogan: Projects of this magnitude must have a reasonable return on the tax payers investment and this project does not. Rejecting the federal funds was the right thing to do. Brown: I believe the governor’s decision cost Florida 20,000 jobs and an opportunity to develop a 21st century high speed rail system. It would have enabled Florida to have a world class system. With the right leadership, Florida can develop a public-private partnership that would see the project completed on time and on budget without putting taxpayers at risk.
VOTE MAY 17th 2011 32
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Call our Marketing Department at 904-240-4292 to design a cost-effective advertisement that will increase your revenue Visit us at entrepreneursanchor.com
Business Management & Compliance
A united platform for leveraging social innovation is needed in every community. A major value to social innovation is that it can be created and leveraged by government, non-profits, for-profits, and individuals thereby making each of us a community stakeholder. Northeast Florida has the resources to promote social innovation at a high level, we just need an incentive to do so.
Knowledge is power In many cases, what we may lack is a person or group of social entrepreneurs with enough social capital to achieve broad acceptance. Through that acceptance, innovative solutions relative to our most pressing social problems like education, unemployment, and small business development may emerge to supplement some of the losses due to deteriorating finances at the government level. Losses in social services and the government sector tend to warrant more community engagement and private sector participation. What makes social innovation both distinctive from other initiatives is that it provides a platform to leverage our region’s best and brightest minds toward a triple bottom line
The second step is converting the Northeast Florida region to a supplier of its own innovation through individual participation. The third step is increasing the volume of socially responsible businesses and individuals Northeast Florida has in order to most effectively address social issues. The fourth step is for the region to create a metric, action or set of activities that tells the community that social innovation is having an impact. Getting out there and doing it For example, over the past few years I have been meeting with a group of entrepreneurs and executives here on the First Coast who feel that they are contributing to some of the steps but would like to see more contributors (individuals) and more evidence of socially responsible businesses toward complimenting steps. In particular we are seeking to augment the way in which we promote small business and entrepreneurship in Northeast Florida. Social innovation is more than just improving our individual way of life. It is about improving society as a whole.
Social innovation is about meeting an unmet need. Strong businesses, lower unemployment rates, and higher qualities of life are needs that need to be met.
SOCIAL INNOVATION in North East Florida words by Dr. Carlton Robinson
ocial innovation is about meeting an unmet need. The desire for social innovation in Northeast Florida is greater than ever due to changing economic conditions. In many ways the term “social innovation” is foreign to local communities, but innovative initiatives are happening everywhere but at home. Much of this perception is because few understand social innovation. Social innovation is the development of new concepts, ideas, and /or strategies that have the ability to meet social needs relative to community and economic development.
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for our community. The triple bottom line means outputs that are good for people, the environment, and profits. And while large scale programs and processes are often pursued, it’s the smaller ones that actually get innovation started.
Getting started with social innovation
The first step towards building social innovation in Northeast Florida is understanding where you fit in the value chain. Ask yourself this question: Which of the following elements do you represent and what issue can you contribute to? • Businesses: Business generates jobs and profits, pays taxes, and allows philanthropy provides useful goods and services… • Socially Responsible Businesses: Business can be done in a more socially responsible way – meeting social goals builds a better business • Social Enterprises: Social goals are primary, business is a way to achieve them – meeting business goals creates more social impact • Public Services: Government essential to provides nonmarket public goods at scale which neither voluntary sector nor business can. • Volunteerism: Giving culture underpins efforts at public good creation in all sectors, new wave of voluntary solutions.
If we can improve the framework conditions in Northeast Florida for small business and entrepreneurship we have the potential to build more sustainable businesses, alleviate unemployment, and enhance the quality of life for many of our citizens. Social innovation is about meeting an unmet need. Strong businesses, lower unemployment rates and higher qualities of life are needs that need to be met. Dr. Robinson is a scholar practitioner who has published articles in the area of entrepreneurship and social entrepreneurship. He has served in a variety roles in local chambers of commerce in Northeast Florida. He is a graduate of the inaugural 2009 Jacksonville Political Leadership Institute.
Dr. Robinson is a scholar practitioner who has published articles in the area of entrepreneurship & social entrepreneurship. He has served in a variety roles in local chambers of commerce in Northeast Florida. phanchor.com
Business Management & Compliance
FRANCHISE LAW 101: how to be in business for yourself, not by yourself
FRANCHISING YOUR BUSINESS words by Jo-Anne Yau
ost franchisors will admit that when they started their small business, they did not intend--or even consider--that their concept would blossom into a franchise. Many franchises were “Mom & Pop shops” with modest beginnings. While not every business concept can be franchised, the operations that do become coveted business opportunities share common themes: they have recognizable brands, they have operational procedures that are efficient and effective, and consumers consistently demand the products or services they provide. The first step towards franchising is relatively simple: identify and protect trademarks. Although logos are the most popular way to go from emblems to empires, common trademarks include business names, domain names, and slogans. This list, however, is not exclusive; almost anything that consumers use to identify the source of a product or
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service is a trademark. For example, people know that a person in a blue uniform delivering mail works for the United States Postal Service, and not another private carrier. When they watch television, they associate the sound of the three distinct chimes to the NBC network. And when their cars run on empty, they expect that when they pull into a gas station with a gold, red, and white canopy, they can depend on a certain quality of product that only Shell guarantees. In addition to uniforms, sounds, and the “look” of the retail location, other trademarks can include unique packaging, shapes, scents, or colors. Once trademarks have been registered, businesses aspiring to be franchises must focus on their operational procedures. This means setting a goal, coming up with the most efficient way to achieve that goal, and using that procedure consistently. Goals must be established in every facet of the business, whether it be for bookkeeping, personnel management, or product delivery. When the most effective means of achieving a goal has been determined, that procedure should be recorded. In theory, straying from “the best way” to achieve a goal will prevent the business from achiving its full potential. A simple, uniform protocol will pay off in dividends, since it facilitates the training of multiple franchisees and it becomes the foundation for enforcing quality control. Finally, a business becomes an ideal candidate for franchising when it offers a goods or services that have widespread appeal and demand. A small business owner often feels the pull towards franchising upon encountering two milestones: 1) despite multiple efforts to expand, the owner becomes overwhelmed with catering to growing consumer demand, and 2) upon recognizing the success and appreciating the potential of the business opportunity, entrepreneurs approach the owner to ask, “Are you selling a franchise?” Realistically, how many retail locations can a business owner effectively open and manage? Three? A dozen? Two hundred? An owner simply can not spread operational efforts and investments infinitely. A franchisor does not have to. The franchisee, as an independent business owner and operator, takes over the management and day-to-day operations. Once the franchisee has been trained in the secrets to success, the franchisor’s involvement is essentially reduced to quality control. While franchising offers a tremendous operational benefit, there is an even more attractive advantage: the franchisor makes money with other people’s money. The franchisee pays an initial franchise fee. The franchisee invests in equipment, purchases inventory, and leases or purchases commercial space. The franchisee pays royalties to the franchisor on a regular basis. In this relationship, since the franchisor holds the keys to success, the franchisee bears the financial burdens. With the right business opportunity, however, both the franchisor and the franchisee will both benefit from this relationship. Franchising has often been described as the realization of the American dream. Even without significant business
experience, ambitious entrepreneurs can go into business for themselves, but not by themselves. In the face of staggering numbers of failed businesses, a franchisor’s history of success and role as a resource offers franchisees a better chance of survival. By the same token, franchisees play a vital role. They drive market recognition, cater to consumer demands, and are the vehicle that transforms a franchisor’s emblems into empires.
The Franchise Disclosure Document. The Federal Trade Commission outlines 23 items of information that every franchise must disclose to prospective franchisees: 1. The Franchisor: background information 2. The Franchisor: business experience 3. Litigation 4. Bankruptcy 5. Initial Fees 6. Other Fees 7. Estimated Initial Investment 8. Restrictions on Sources of Products and Services 9. Franchisee’s Obligations 10. Financing 11. Franchisor’s Assistance, Advertising, Computer Systems, and Training 12. Territory 13. Trademarks 14. Patents, Copyrights, and Proprietary Information 15. Franchisee’s Obligation to Participate in the Actual Operation of the Franchise Business 16. Restrictions on What the Franchisee May Sell 17. Renewal, Termination, Transfer, and Dispute Resolution 18. Public Figures 19. Financial Performance Representations 20. Outlets and Franchisee Information 21. Financial Statements 22. Contracts 23. Receipts
Jo-Anne Yau is an attorney at the Yau Law firm. Her areas of practice include Personal Injury, Patents, Trademarks, Franchising, Business Law, and Criminal Defense. phanchor.com
Finance, Accounting & Taxes
words by Entrepreneur’s Anchor
lot of business owners and tax payers confuse tax avoidance and tax evasion. Confusing the two concepts can cost you! As you know, the Internal Revenue Service (IRS) law implies that you are guilty until proven innocent. I don’t want to be audited; hence, going nuts with iffy deductions that will result to an audit has never been on my agenda and it shouldn’t be on yours.
Avoiding or Minimizing Taxes
First Things First – Tax Planning
Most tax payers do not pay attention to their future tax bills or plan to reduce their tax bills using tax planning. Hence, tax planning is never on their to-do list. Tax planning is the process of looking at various tax options in order to determine when and how to eliminate or reduced huge tax bills. Understanding the tax system is the key to solving the puzzle. How do I reduce my tax liability? What deductions am I missing? How do I avoid crossing the line with my deductions? The answers to these questions are embedded in the understanding of the difference between tax avoidance and tax evasion.
Income deferral is a practice of postponing the receipt of income until after midnight on December 31st which allows the income to be taxable for the New Year and need not be claimed on the current year’s tax returns. An effective use of this strategy requires a comprehensive understanding of the timing of your cash inflows.
Tax Avoidance Strategies Tax avoidance is legal. It is the practice of avoiding paying too many taxes or reducing your tax bill. The tax system is very thorough but there are always chinks in the armor. These chinks are referred to “tax loopholes” and tax avoidance is using existing tax laws to find these loopholes. Understanding the tax laws or engaging accountants who understand the tax laws is the key to an effective use of tax avoidance mechanism. The IRS clearly distinguishes between legitimate tax schemes and abusive tax schemes. Legal tax avoidance schemes are intended to generate income in a tax-preferred way. 38
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These are few ways by which you can reduce or minimize your tax liability. The list or strategy below is not exclusive or exhaustive, but can help you minimize or even avoid paying more taxes than necessary: • • • •
Income Deferral Tax Deductions Charitable Contributions Retirement Contribution
Tax Deductions Tax deduction is another key way to reduce or minimize your tax bill. Expense items incurred within the tax year that you can deduct from the subtotal of taxes to be paid. There are both “above-the-line” and “below-the-line” deductions which include the following: • • • • •
Casualty and Theft Losses Interest Medical and Dental Expenses Miscellaneous Itemized Deductions Other Taxes
Charitable Contributions A tax payer may deduct contributions to qualified charitable
Above PhotographMake sure you pay and prepare your taxes properly and legally or else you could owe the IRS more than
organizations as long as the deduction does not exceed 50% of adjusted gross income. Excess deductions can be carried forward to the next five taxable years. Your adjusted gross income includes your income adjusted downward by specific deductions, but not including standard and itemized deductions.
Retirement Contribution Tax Payers may use retirement contribution to shelter their income. Some common retirement funds used as tax shelter include IRAs, 401(k), SEP, and 403(b). This is why retirement plans have contribution limits.
paying the true tax liability. Tax evasion schemes involve an individual or corporation misrepresenting their true income to the Internal Revenue Service. Misrepresentation may take the form either of underreporting income, inflating deductions, or hiding money and its interest altogether in offshore accounts. As long as you know the difference between tax evasion and tax avoidance, you’ll be sure to evade paying too many taxes and avoid paying a hefty fine or going to jail. To avoid confusing the difference between tax avoidance strategies and tax evasion schemes, please visit the IRS website at www.irs.gov or contact your local tax accountant. Neglecting effective tax planning will cost you by resulting in a tax bill.
Tax evasion is the use of illegal or illegitimate means to avoid the payment of taxes. It is a practice of intentionally avoiding phanchor.com
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Mind, Body & Soul
Celebrating Milestones, Completing Tasks words by Dianne Tribble
nowing what you want and setting a course of action in place to obtain your desires are important. While forward-thinking will assist you in reaching your desired end, far too often the tendency is to get caught up in the end-product. Learning how to celebrate the journey to your desire can make the process more bearable and enjoyable. Self-reflection is necessary for success Consider your answers to the following thought-provoking questions: “What do you want? What are you doing to obtain it? What’s your plan? How’s your business? Where are you with your goals?” These questions are not meant to intimidate. The goal of asking these questions is to promote strategic thinking. This type of thinking consists of components such as capturing the vision, developing an action plan, time-management, paying attention to details, assessment of the project, learning from experience, and developing a regular check and balance system. If you are able to answer these questions to one extent or another, you are headed to your desired end. Why not couple your progress with celebration? Celebrating the journey from setting a goal to obtaining it could prove to be advantageous. Shouldn’t you be happy? Is it wrong to be proud of your progress?
meaning to you; therefore, you can reach the new goal you would like to reach.
If you’re stuck with how to start, begin with setting goals Let’s say you want to learn how to build a website. You know there are numerous businesses available to do this for you in return for a fee. However, you would like to build your own site. You set a realistic goal to learn to do this task within a six week period. Knowing you have no prior experience in this field, you enroll in a four week course to learn how to build websites. As you attend each class, learning all you need to know in order to build your own site, you begin to build a working knowledge of the process. Following each class, you put into practice what you have learned. Award yourself as you make marked progress. How you choose to do it is entirely up to you – the important thing is that you do it! This will make the journey to reaching your goal enjoyable. Falling short of reaching goals is primarily the result of unrealistic goals or lack of commitment to the finished product. To alleviate these factors, be sure to do some strategic thinking. This will help ensure your goals are S.M.A.R.T. (Specific, Measurable, Attainable, Realistic, and Timely). If you are unable to check each of these components off when setting
Falling short of reaching goals is primarily the result of unrealistic goals or lack of commitment to the finished product. Keep that carrot of motivation dangling! As I write this article, I am reminded of my college days. I was enrolled in a challenging Statistics class and was intrigued by the class. It was, however, difficult. I studied diligently, read and completed my homework assignments, paid careful attention in class and asked many questions. As a result, week after week, I gained a better understanding and did well. When the papers were returned following one difficult assignment, I had a near-perfect score. I was so proud of myself! I went shopping and purchased a double-heart gold necklace. This was my way of commemorating my success. Award yourself as your reach major milestones. Celebration, similar to laughter, can be a good dose of medicine. Celebration can inspire and motivate you to stay focused, not giving up along the way. It can help you build momentum towards reaching your goal. It can encourage you. It also serves as a reminder that you have accomplished something which holds significant
goals, revisit your goals, tweaking and fine-tuning them. Once you have determined your goals are S.M.A.R.T., set your course of action in place and proceed. Celebrate your progress as you enjoy the journey to your desired end. If you know what you want, it won’t be long before those goals you set for yourself begin to evolve into a finished product! Dianne Tribble is a certified Christian Life Coach with more than 20 years of leadership experience in various roles including mentor, focus group discussion leader, women’s development and empowerment group leader, employee development manager, supervisor, counselor, and life development coach. phanchor.com
IS YOUR BUSINESS THE BEST KEPT SECRET?
IT SHOULDN’T BE words by LaTonya Lockhart
adj \ˈsē-krət\ kept from knowledge or view, hidden, marked by the habit of discretion, not acknowledged, conducted in secret, remote from human frequentation or notice. As a professional marketing consultant with over ten years of experience in non-profit and private sector businesses, I have developed a passion for selling. In connecting people with the resources they need, I have developed a thick skin and most things don’t annoy me. Most things. Frequently in business, I will hear a struggling business owner try and sound as encouraging as they can about their venture, twisting the facts to make failures seem like successes. Glass half-full type stuff. But when other professionals tell me their business is “the best kept secret out there” my blood starts to boil. It makes my hair stand on end. Truthfully, if I ever develop pre-mature wrinkling, I will blame it on this one tiny declaration. Do I sound dramatic? Good! Maybe I won’t hear it as often. Business owners spend almost every waking hour investing into the success of their venture, yet the vitality of a business will be measured by its visibility in a community. For many entrepreneurs, it’s the fear of not being able to afford a marketing budget that results in a high return on a low investment. But through strategic thought and design you can increase the visibility of your business or organization and reap the benefits that you deserve. Check out these five low cost tips that can get you out of the secret underworld of the business unknowns, and into the light of success: Utilize social media tools – Social media is a great way to increase visibility and customer interaction. Through professional networking sites, such as LinkedIn and Facebook, you can help you market your business and attract more customers. Include your personal touch – From stamps and stickers to handwritten notes, these personal touches make your 44
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business stand out. Use this tool on your direct mail campaigns and get the impact of a mini-billboard. Your potential customers read this message first. Make it short and readable within 10 seconds. Always have enthusiasm and energy – Enthusiasm is contagious! Announce special offers when you answer the phone. Corporations can invest in pre-recorded voices, but no one cares more about your business than you do. Allow your personality to shine through vibrantly when you greet potential business contacts. Host an open house or special event – Think about hosting an open house at your business or plan a special event. This gives you the opportunity to show off your business and gain face time with potential customers. Have a seminar or guest speaker share insightful information with your guests. Remember that presentation is everything. Limit the number of attendees and charge a small fee. Free events often carry an unintentional undertone of a potential sales pitch. Barter, trade and wheel and deal – Bartering services with another company allows others the chance to utilize and recommend you to other professionals. Look for opportunities where people can experience your product or give it in exchange for advertising space or other services. Both companies sow only half the labor and reap the budget-saving benefit. If your business is the best kept secret out there, only one thing is for sure: it won’t be out there for very long. La Tonya Lockhart is the current Director of Marketing and Public Relations at Brain Media Group. Since 2002, she has worked in several management capacities in northeast Florida and abroad. She offers innovative marketing and fund development strategies to assist non-profit organizations and entrepreneurs in meeting their strategic goals.
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