I will not say who the cat belongs to (not me or my house) but I will say that yes, this is a true story and I’m still laughing because I warned these individuals many years ago about Reno.

A cat named Reno was sprayed by a skunk the other day…

He ran into the house through his little cat door to get away from the skunk…

He proceeded to run through the house…

He rolled on the rugs and the sofa. Then he bounced around the kitchen (probably knocking the garbage can over) and into the owners’ bedroom…

The moral ~ If you have a mean cat (Reno is very mean he hisses and scratches people for no reason) eventually he will create a stink.

Reno’s perspective is, I have battled with humans, dogs, other cats and now a skunk and I’m still standing.

To ask the question in a politically correct manner ~ How many of you vote for the owners to introduce Reno to new caregivers who run a home more compatible with his personality and antics?

I’ve also suggested tomato and lemon juice to get rid of the skunk smell.

What is the lesson learned here?

Is this a life lesson that we can take and apply to our everyday lives in business and at home?

I say yes because I’ve learned over the years that successful people are those who mind their own business. They might study their competition (whether it’s a co-worker or business down the road) but they understand the market, their competitive edge but spend the majority of their time taking care of their own “house” staying positive and inviting competition. Insulting their competition is deemed a no-no but marketing to their strengths is what makes them appear more together.

Reno did not stay out of harm’s way or do the right thing all the time even when no one was looking so he ended up with stinging eyes, burning skin and almost being evicted from his home by his owners.

He crossed the line and maybe he learned a lesson. We’ll see if he changes his ways.

Life is wilder than fiction

While others enjoy hobbies such as sports or crafts, I have enjoyed writing for a number of years now and asked one of my associates if he would let me author his biography because I felt he had a great story and I wanted to profile him and a number of associates across the country.

I was surprised by my associate’s answer as he looked me straight in the eyes and told me that he was not sure that I could handle the reality in which he lived.

He proceeded to explain that many times life is much wilder than fiction and I might just want to write a creative fiction piece.

WOW!

This actually scared me and as I continue to reflect on his comments (it’s been over 3 years since this conversation) I have become more curious and hopefully I’ll gather the nerve to ask again at some point in the future and ask him to elaborate.

Madoff an unwelcomed incident

The other day I actually heard a commentator say that the actions of Madoff was an unwelcome incident.

When did stealing money and destroying dreams become an “unwelcome” incident?

I can’t speak to the merits or details of the Madoff case, but all I know is one of my clients has good friends who have lost millions because of Madoff’s fraudulent behavior and certainly the staff members involved at his firm had to have been aware that something was not kosher if they had to create statements based upon nonexistent figures.

Across the globe, “spin” makes the world go ‘round and if you understand how to acquire wealth on a very large scale, you will find that there is a different world-view about unwelcome incidents you create or experience.

My advice, stay ethical 100% of the time even when you don’t think that anyone is looking and you should be ok.

Are you a survivor?

Are you like the cat, a survivor? Reno took his lumps and kept moving on and thriving. By the way, although Reno no longer smells he’s back to his old tricks but he’s much wiser now and has not had any additional run-ins with the skunk.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

Besides being service providers from the 1940s operating in various Houston communities, they all lived within their means and knew how to save money.

Why save money?

I never had a chance to meet Mr. Oxy Woxy, but from what I hear he was already into “green” initiatives by recycling rags and running a side-line vegetable business.

The other great thing about Mr. Woxy was that he did not use any fossil fuels to run his business because his horse-drawn carriage was used to reach his customers in the various neighborhoods.

If you save money, you free-up more funds to invest, enjoy your hobbies more often, expand your vacations, dine out more frequently and purchase more of you want.

Amazingly, the entrepreneurs of yester-year did not have access to credit so they lived within their means and paid close attention to their budgets.

These entrepreneurs were always looking for a “deal” or as we call it today a “hook-up.”

15 Ways to Save Money

Recently I had a conversation with a client who shared some ideas of how they save money and I’ve added several more easy to implement tips below:

1. Buy in bulk, separate into individual serving sizes and freeze.

2. Use coupons for dining out and to purchase retail products or services (don’t be ashamed).

3. Bundle utility services when you can (i.e. cable, internet, telephone, cell phone).

4. Have a utility check-up and replace inefficient pipes, windows, heating/air units (take available tax credits where possible).

5. Review all bills in detail especially those that change regularly including cell bills, credit card bills (look for extra fees and unauthorized automatic debits).

6. Car pool.

7. Bring your lunch to work.

8. Buy store-brand instead of name-brand products.

9. Take public transportation.

10. Use shared babysitting services.

11. Use the public library to read magazines and books.

12. Refinance your house.

13. Buy a used car instead of a new one.

14. Shop at consignment stores in upscale neighborhoods.

15. Search for grants and scholarships for college funding.

Visit this website to explore the many other tools available:

Where to start?
Take a look at where you are with what you own and what you owe (a summary of your assets and liabilities and the difference being your net worth). Secondly, use a spread sheet such as Excel or personal expense software such as Quicken to track your personal monthly expenses so you can determine where you might be able to save and re-deploy your funds for savings and other expenses.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

In today’s challenging environment employers are taking a hard look at which employees help generate income and which ones are what some refer to as fluff or puff.

Income generators are treasured because they are a critical part of the team relied upon to help the company stay afloat. Other key team members are those that produce the products/services, develop and implement procedures for company efficiencies (make things run smoother and save money) and those that help the company build strong working teams to position the company to attract investors and/or lenders to stay afloat.

Take former BET CEO, Robert Johnson or Apple Computer’s CEO (currently on leave), Steve Jobs. Their innovative ideas and income generation strategies put their companies on the map many years ago.

Johnson and Jobs had tremendous vision and dedication, but are there strategies for others who do not wish to take on the risks of business ownership?

Be worth more than what you are being paid
Make sure your employer can determine his/her returns on the salaries you are being paid.

In other words, understand what department your salary is paid from, how it is being justified (i.e. is it a percentage of the sales you generate or are you paid based upon the division’s overall performance or based upon some budget figure from several departments).

You are in a positive position if you have unique talents and skills that can’t easily be replaced and you take the time to research your options both within and outside of the company.

Bottom line, make sure you are adding value to the company that employs you and know your worth or rest assured you will not have to worry about scheduling vacations or punching a time clock ~ you will be on permanent unpaid leave.

Ethical behavior is back in style
With the Enron and many other scandals and the implementation of Sarbanes-Oxley and company-wide anonymous whistle-blower hot-lines, ethical behavior (at least on the surface) appears to be coming back in style.

It’s amazing that bad, unethical decisions companies made affected hundreds of thousands throughout the country and the world. Take the bad decisions that were made extending loans to individuals who the lenders clearly realized were not in a position to pay-off loans and often times used fraudulent documents to approve these loans.

Don’t be one to let commissions or a thought of continuing employment cloud your behavior. A simple fudge or oversight can easily be viewed as criminal intent in the eyes of a fraud investigator.

Clearly in many instances, this unethical behavior (maybe not illegal if they followed the actual rules in place at the time) has caused the markets to falter and we are still experiencing the fall-out from these bad decisions.

Do the right thing to avoid not just firing, but to maintain your solid positive personal reputation.

Remember, if you get released for unethical behavior this might prohibit or lengthen the time it takes for you to find new employment.

During challenging times whistle blowers are in full force and if the company offers rewards, this would be just the incentive needed to convince someone to tell (snitch).

Loyal customers stick around
Do you want to increase your chances of keeping your job in a down-turn market?

Help be part of the team who caters to the customers because loyal customers refer others and stick around, even when times are challenged.

It’s great if customers write in positive experiences they have with you as an employee and how this helps them spend money with your employer.

Continue to perform quality service, even when there are reductions in staff adding to your work-load. You will hopefully be rewarded with continued employment and/or an opportunity to jump ship if someone views you as a team member they want to have at their company instead.

Try to document the value you bring to your clients and if you are able to increase customers and create more efficient ways to serve them. I’m not suggesting that you should waive a
flag and remind your employer everyday that you’re a great client attraction magnet, but certainly have relevant documentation of positive customer experiences ready to discuss during annual reviews.

Remember, creating efficiencies with the work you perform and helping the company make more money and cut expenses will help in the long-run and might save a job or two (hopefully yours).

Employee’s Loyal Tendencies
There used to be a time when employers expected employees to be loyal if they treated them fairly and provided a stable work environment.

Employers now evaluate employees on what some call “loyal” tendencies. In many management circles, an employee’s performance expectation is based upon whether you’re a short-timers or a longer team player. There is an understanding by most employers that the term loyal employee refers to someone who will not disclose trade-secrets, will hang around as long as they are making a competitive salary and have work and fellow co-workers who interest them.

During more positive economic times top performers are always being recruited by other companies so employers typically determine the status of a prospective employee during the interview as a:
- Job seeker who can’t find work elsewhere within their chose profession.
- Climber who is only interested in building a resume.
- Hard worker interested in finding a better opportunity.
- Name dropper impressed by the company and who he/she might be able to affiliate with if hired.
- Seeker who has evaluated the company and determined that he/she can add value and fit-into the company

Speaking to many clients they tell me that it’s the co-workers and office culture that attracts employees to a particular company and if you want to be successful you should seek to find an employment situation that is mutually satisfying and if you are in-between opportunities take what’s available and seek a better opportunity.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

Before she visited with me she had already gone through most of the grieving stages of a job loss including confusion, shock, anger, guilt and fear. Sue now felt hopeful that the time might be right for her to either start her consulting practice or sign-up to take a few more classes to obtain additional certifications to prepare her for a career change.

Sue finally asked the critical question, “What about the government’s stimulus package, should I wait because I have not had time to determine if I will benefit?”

Have you developed your action plan?
I’ve talked often about how critical it is to establish a direction for your professional life and create an action plan to handle your finances and income opportunities.

Establishing a Plan B or a fall-back plan is one segment of your action plan. You never know for sure if your initial projections and circumstances for your initial strategy will go as planned.

This process is not easy, but to start…

Rank where you are in your career considering your skills, education, training, etc… (using a scale of 1-5 with 5 being best ~ i.e. 5 meaning that you are at the top of your game).

If you are not employed, determine how you compare to other applicants (ask the recruiters to provide some feedback such as how your skills rank, if there are skills and/or education levels that appear to be missing for the jobs that you are applying). Also review in detail job descriptions for positions you feel you are uniquely qualified. As a side-bar, make sure you do not appear desperate when applying for positions as recruiters often share that they can sense this and depending on the job might have some reservations about hiring you.

If you are employed, how do you rank among other employees performing similar tasks in terms of income, responsibilities and feedback? Are you the go-to person that everyone in the department and/or company relies on for input, idea sharing, assistance with projects (i.e. you stay busy with real projects and not busy work)?
How much in assets, debts and income increase potential are you anticipating for the future?
Write out options of how you think you can achieve these future goals (i.e. starting a business, obtaining additional education, spending more time developing professional relationships inside and outside of your company).

Start developing a self bail-out plan today
Depending on where you are on the economic food-chain (i.e. whether you’re a student, clerk, entrepreneur or executive), establishing a solid personal plan of action will help especially when times are troubling.

Many are trying to determine whether or not the stimulus package or bail-out plan from our government will benefit them personally.

Let’s be honest with ourselves, do you really think that any plan will solve all of our woes? I don’t have that unrealistic expectation because there is no one-size-fit-all package.

We must all get involved to help the economy turn around.

Start establishing your self bail-out plan concentrating on activities that will generate income, secure your job, help you advance in your career and save on taxes, expenses and bottom-line add additional funds to your personal coffers.

Don’t forget to get to work early, work late, communicate with your boss, read the company’s financial information, refer to previous Only Money blog entitled “Surviving the Economy, Part I.”

Are your true skills and talents going untapped too long, establishing a plan will help you start to realize, appreciate and expand your financial dreams.

If you’re like me you are working to establish a solid plan that allows for enough flexibility so you can take advantage of whatever government plan exists.

Current Conditions
Yes, we are currently in a recession. I personally do not know of anyone in today’s current economic climate that has not been affected in some way by the financial challenges of the market.

Companies have implemented RIFs (reductions-in-force ~ a polite term for lay-offs) and many of our governmental agencies have issued furloughs and cut-back in hours at all levels. Companies continue to seek outside investors including partners not based in the United States.

As a realist I am currently implementing short and long-term financial strategies so I can position myself to be better prepared when the economy turns around.

Over the years there have been times when the stock markets have experienced significant slides, commonly referred to as “bear” markets and normally a positive recovery follows. During these bad markets you will find a significant increase in unemployment with the great news again that there will be an eventual recovery so we have to be very patient.

Right before the economy starts to turn around there are always opportunities for those who have implemented an action plan and have taken advantage of some great deals during the hard time and held onto them.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

Your labor costs are 50% of sales, gross profit is 20% and net income is 1/2%.

What does that mean?

What’s wrong with posting a loan you received from your favorite bank to your books as income?

Last month’s column provided some tips and resources related to financial statements for publicly traded companies.

This month’s column highlights some ideas for small businesses.

If you’re in need of a loan, budget, taxes filed or potential investors you might feel that you need help in interpreting your data so you can make some better informed decisions.

Yes, it’s time to break out the financial statements that you’ve been keeping on your computer for your business and consider resources available to you.

How do you start interpreting your records?

If you do not have a professionally trained accountant internally preparing your financial records, consider having a CPA or qualified professional bookkeeper visit your financial records and provide the “clean-up” entries if needed or enter the adjustments for you.

Ask your accountant to walk you through the financial statements highlighting the key numbers you should be watching and trends to consider for your industry.

What if you’ve been keeping manual records or the 12 bag-method of accounting?

Quickly go on-line or to the nearest office supply store to pickup a software program to process your business records. Check with advisors or if you belong to an industry association such as the Bar, Realtors or others ask for recommendations and referrals.

Simple software programs such as QuickBooks, Peachtree or another industry specific program can help you process your data on a regular basis.

What might our records tell us about our company?

Imagine you’re a beautician, what makes you more money, a perm or a dye treatment?

If you’re a professional speaker, is it better to perform a customized session for fewer than 20 participants or a general gig for 100 participants?

It depends!

If you track your financial records to keep up with direct costs related to various revenue sources you can track data and create some budget models that will help you make a decision whether or not to accept certain projects and standardize your bidding and project cost projection process.

Gross revenues versus gross profits

Where many entrepreneurs have challenges is accepting too many low profit-margin projects.

Concentrate not just on the gross revenues collected from projects but the gross margins (difference between gross revenues and cost of goods sold/direct costs).

Are you a low-cost leader or a high-end provider?

Again, understand what a project costs you internally including time deployed and associated supplies and make informed decisions on your strategy.

Hopefully the take away for this segment is that as a small business you don’t have the ability to float very long without taking action to plan for profits. Unless you have angel investors available to provide unlimited funds, you must remain profitable and positioned for growth.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

YES! The squirrel started running along-side my car like you see dogs doing from time-to-time. Laughing hysterically, I swerved and almost ran my car off the road.

When I gained my composure and avoided the potential casualty I looked in my rear-view mirror. In the middle of the road again was that cute little squirrel, mocking me and preparing himself for the next potential victim.

Thank goodness I did not have to explain this accident to my insurance agent.

You’re thinking, squirrel?

Well, obviously this animal thought I was invading his space.

Where are you on the food chain?

Do you understand where you stand at your company, how the budget affects your division or even how to read your company’s financial statements?

This segment is devoted to those employed at large enterprises and companies. In the second part of the series I’ll devote attention to non-public enterprises.

If you work for a U.S. company that is publicly traded, much of the financial data is readily available via the Internet at the U.S. Securities & Exchange Commission’s website. Also, public companies have an “investor section” on their websites which includes required public filings there as well.

So where do I start?

If you are not part of the team responsible for reviewing financial information including company-wide budgets, acquisition strategies, new-business lines or products, you might want to first start by perusing 8-K filings.

8-K documents are filed with SEC for significant events affecting your company. Events warranting a report filing would include changes in the executive suite such as CEO or CFO, regulatory matters, division spin-offs, merger/consolidation announcements, etc…

I suggest starting your review with the 8-K filings because they tend to give you a big-picture perspective of what’s going on with your employer. You might know part of the puzzle relevant to your department or small division, but these reports provide more insight to what information is being shared with the public.

Ready to visit the numbers?

My next suggestion is to peruse the 10-K annual reports for the past couple of years. These reports provide your company’s annual consolidated financial information along with footnote explanations, your external CPA firm’s report and again a big-picture of what your company is doing.

The best place to start is to review the segment at the beginning that discusses the business to see if the description is consistent with your understanding of who and what you do as a company.

The key reports you want to peruse are the consolidated balance sheet, consolidated income statement and consolidated statement of cash flows, which would have comparable figures from the prior year. If you start here this will provide an overall idea of where your company is (financial position), what was generated in revenues, net profits, earnings per share and other relevant business ratios and what was done with your cash.

If your company’s data is shared internally (and especially if it is broken down by sales department) you can also check out some calculations yourself such as gross revenues as well as net profits per employee. Check out to see if your company’s numbers have improved and if there have been significant downsizing.

There are a number of other reports that might be helpful including the 10-QSB (the quarterly report filings with SEC) as well as Form 4 (a statement of changes in beneficial ownership of securities).

Take away

Next month we will explore more details about checking out your company’s financials.

Hopefully the take away for this segment is that you become more familiar with major events affecting your company, review current and historical profits, department consolidations and acquisitions.

Pay close attention when the “numbers” people in your company make presentations. If you have a better understanding of how the company’s activities will affect your department and eventually your personal bottom-line you might feel more engaged or inclined to help come up with improvements.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

If you understand basic economics, complexities of the corporate structure and leadership models, you realize that it is impossible for such a small group (albeit powerful) to be responsible for all of this nations and the international communities’ financial problems. We must consider the effects of individual and corporate (including the international community) dependence on financial assistance from our government, a multi-year war, no bid national contracts, significant funds to repair and maintain foreign counties, criminal activities at all levels, wastefulness of natural resources, etc…

There are many players in this game of economic roulette.

Even our most conservative citizens have some socialist tendencies. Consider those who claim to be capitalists believing in the free market to determine what services and goods should be produced and supported, but government assistance to those who due to unfortunate circumstances can not do for themselves. These same individuals tend to accept governmental assistance for businesses through special tax breaks (credits) and sometimes direct corporate financial support. It seems we as a nation have challenges in determining who should receive government assistance.

The corporations are but a part of the entire economic pie, government infrastructure and decision making is key to moving towards an antidote to these economic woes plaguing our nation.

Basketball lesson

Let’s consider this analogy. You have a basketball team with a captain, coach and well trained squad. The team plays a game using great offensive and defensive plays, keeps fouls respectable, shooting percentage commendable, but still loses the game. Who’s to blame for the loss, the coach or the team captain? The coach and the team captain are held responsible, but in reality it’s the entire team. All must take responsibility for both the success and failures of the team.

In my mind, the same is true for the corporate board. Within a business structure, the board of directors takes the responsibility for the success and failures of the company. Each are responsible for being accountable to the shareholders/owners, company and team but again, in reality, others on the team play a critical role, including executive management, staff, customers, vendors and even media.

Citizens and jobs

Just think if every citizen in the U.S. was very cautious and had no auto accidents for 3 years. You would not need car insurance, car body repair shops, insurance appraisers, etc… Many of our citizens would have to beat the pavement and look for new jobs.

Insurance companies exist to help us cover risks, but if these companies did not exist most likely the citizens would look to our government for help.

How would our stock market look today if the average citizen for years did not speculate on stock based upon their gut instincts or something they heard in the locker-room at the gym? What if instead individuals traded based upon basic fundamentals using a long-term focus considering the financial condition of the company, strength and sophistication of the management team, current/projected/historical profits, new product innovation, etc…

We can all remember the telecommunications bubble and tech stock explosion when speculators were running the price of stock up 5 and 10 fold. Anyone who was bold enough to pull together a professional looking business plan, and put on a good presentation could obtain venture capital funds of $ 5 or $ 10 million without any proof that the product/service had any shelf life. Many of these companies ran for years without ever making a profit, but continued to receive cash injections and be able to sell additional stock until the bottom fell out.

Our nation

Innovate, expand or die is what corporations are always told is needed in order to survive in this “capitalistic” market. Our government will need to do the same with solid fundamentals and measured, planned growth.

I look forward to a U.S. where the government supports its citizens on infrastructure and implements “best practices” procedures, teaches those who need help how to fish and hold everyone accountable versus dependent.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

CONCERNS OVER MONEY
During our most recent strategic planning session, we spent time identifying the top four concerns that most people have about money. We came up with the following list of desires that most seem to have:

• Achieving full career potential (i.e. climbing the corporate ladder, successfully changing careers and/or becoming an entrepreneur. All options intended to lead to a comfortable retirement).
• Enough money to provide for family in case of an untimely death.
• Getting paid adequately and what you’re worth.
• Generating enough money to live the desired lifestyle.

WHAT ARE YOUR FINANCIAL PRIORITIES?
Rank in order 1 – 11 (1 being the most important)

________ Church/Favorite Charities (monetary donations)
________ Current credit card debts
________ College bills (i.e. student loans/continuing education)
________ Financial support of Child(ren)/Parent(s)/other relatives
________ General living expenses (food/rent or mortgage)
________ Hobby (i.e. golf, sailing, deep sea fishing, hiking, tennis)
________ Luxury Items (i.e. high end vehicle/new car, 1st class accommodations)
________ Personal Pampering (Hair cuts/perms, Spa, manicures/pedicures)
________ Retirement Savings [IRA/Roth IRA/401(k)]
________ Vacations/Homecomings/Out of town trips
________ Weekly entertainment (i.e. movies/social events/dining out)

WHAT ARE SOME OF THE NEXT STEPS?
After you identify your priorities, perform some research to help you start to develop your plan and some strategies. For those on the web, you can visit a number of websites including: www.aaii.com; www.aicpa.org/financialliteracy; www.blackenterprise.com; www.cambridgeadvisors.com; www.financial-planning.com; www.kiplinger.com/personalfinance; www.masteringyourmoney.com or www.wealth.bloomberg.com.

If you are not on the web, you can visit your local library and checkout any number of books including some of the following to get you started:

• Facing Financial Dysfunction: Why Smart People Do Stupid Things with Money, by Bert Whitehead, JD
• Girl, Get Your Money Straight: A Sister’s Guide to Healing Your Bank Account and Funding Your Dreams in 7 Simple Steps, by Glinda Bridgforth
• Rich Dad Poor Dad, by Robert T. Kiyosaki and Sharon L. Lechter, CPA
• The New Retirementality: Planning Your Life and Living Your Dreams…at Any Age You Want, by Mitch Anthony
• The Millionaire Next Door, by Thomas J. Stanley, PhD and William D. Danko PhD

DO YOU NEED MORE HELP?
Although many people handle their own taxes, estate/legacy planning, financial and business planning, how do they know if they’re identifying the most relevant data for their circumstances or taking advantage of the best practices?

One of the most challenging concepts is identifying what you don’t know or where there is a gap between theory and practice. Most professional advisors will agree that the value they normally add to their clients is the wisdom gained through years of experience.

Knowing what questions to ask and what definitely does and does not work puts your advisor at an advantage without you having to be the first guinea pig.

Remember, your best friend’s brother’s cousin (who you are not paying) might provide some direction but most likely will not be engaged throughout the entire process, that’s not his job and free advice is just that, free and not customized to your unique situation.

Remember, if you decide to have a checkup with a professional, you want to have a brief phone conversation to determine if his/her knowledge meets your needs. It is especially important to ask around the community about reputation and read materials generated by the office such as brochures, websites, articles, etc. If you need financial planning including investment advice, it is recommended that you use someone who is a registered investment advisor and holds a certification such as Certified Financial Planner (CFP), Personal Financial Specialist (PFS), Chartered Financial Consultant (ChFC) or other licensed individuals. The key is selecting an experienced individual who continues to study in the financial planning arena and has taken the time to become a licensed professional.

Always remember, knowledge is power!

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis

Apparently yes according to a client who builds mixed commercial/residential real estate developments up north.

According to him, not all real estate is in the dumper. He shares that as long as you have time on your side (i.e. can hold onto the properties for 3-5 years), adequate capital, access to credit and the “right” real estate inventory, you will survive this major market correction.

I checked with another client, a successful commercial real estate broker, who shared the same sentiment.

MARKET CORRECTION?
Your interpretation of the market depends on how you are personally positioned.

You probably feel that the economy is moving towards a recession if you are over-leveraged and can’t wait out the real estate market pull-back. Many real estate investors used the “no-money” down strategy or did not take the time to calculate the estimated amount of funds needed to make repairs or maintain the properties in case of vacancies. Unfortunately, some have also lost jobs and not planned for this contingency to cover negative monthly cash flow properties.

On the other hand, you might not be feeling as much pressure and interpret that the economy is experiencing some pull-back or a major market correction if you are holding onto properties that have positive cash flows and manageable debts. Your lifestyle has probably not been altered significantly.

WHAT IF YOUR 9-5 IS SUBSIDIZING YOUR SIDE-LINE REAL ESTATE BUSINESS
Don’t panic. If you are not in foreclosure but starting to feel the stress of your real estate investments, you must take action. immediately.

At a minimum, do the following:

• Assess where you are (i.e. determine the estimated fair values of all of your real estate, loan positions, cash flows, vacancy rates).
• Establish a realistic plan of what you feel you should do, based upon your current and most likely future personal situation (i.e. you want an exit strategy if you can’t afford to continue to operating in this manner).
• Communicate with your lenders if you are behind on your mortgages or think that you will be become delinquent soon to renegotiate.
• Contact your real estate broker if you are not an experienced or savvy real estate investor.
  If you want to check out a few sources for real estate investors, visit your library and pickup the following books: “The Peebles Principles: Tales and Tactics from an Entrepreneur’s Life of Winning Deals, Succeeding in Business and Creating a Fortune From Scratch,” by Don Peebles; “The Weekend Millionaire’s Secrets to Investing in Real Estate: How to Become Wealthy in Your Spare Time,” by Mike Summey and Roger Dawson; and “Beyond the Bubble: How to Keep the Real Estate Market in Perspective and Profit no Matter What Happens,” by Michael Thomsett and Joshua Kahr.

Real estate investing can be a great investment vehicle to include as part of your portfolio as long as you plan, track and make realistic decisions.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com or call (919)544-0398.

ShareThis

If both service providers perform custom auto washing and detailing, the second operator is probably more successful at attracting clients willing to pay for the custom level of services offered.

YOU CAN’T BE EVERYTHING TO EVERYTHING
Unless you have an unlimited amount of time to learn new skills or funds to hire workers with the expertise you lack, you can not service everyone successfully.

Working to attract the right opportunities that complement your talents, skills and background are critical to becoming successful. Valued experts are paid top dollars for their expertise. Take the IT professional who specializes in one or two software packages. If this individual understands the market and remains on the cutting edge of technology he/she can most likely bill out at the higher end of the market because being selective allows him/her to concentrate on obtaining experiences and training critical to becoming known as an expert.

In corporate America, as in small business America, if you have a background in a specialized area you can not assume that because you are bright and a quick study, you will automatically be able to successfully transition into a new department or run a division without additional training, coaching, etc.

BE CAREFUL OF WHAT YOU ASK FOR, YOU MIGHT GET IT
According to marketing experts, you should attempt to narrow your message to attract qualified opportunities. Remember, some prospects or job opportunities simply are not a good match for you and would be better served by someone else. A general message might attract a crowd that includes clients you can not serve. But, a narrow, more focused message will attract opportunities that better match your desired outcome.

Take a friend telling a colleague (outside of his firm) that he was interested in finding a new job. He failed to define exactly what he wanted and ended up with a number of offers and word got around the community (because he was in a specialized industry) that he was looking. His supervisor approached him to find out why he was interested in leaving the organization. What would have served him better was to have defined his desired opportunity, directly approached organizations that had positions of choice and directly pursued those or used a professional head hunter to provide leads specific to his desires.

MANAGE EXPECTATIONS
One of the greatest experiences as a professional has been staying at nice hotels while traveling for business. If the hotel has high performance employees they tend to spend a considerable amount of time managing your expectations. Positive experiences at these hotels have occurred because employees clarify in detail what to expect, ask for constant feedback and provide additional options.

Remember, if you are an employee, the best gift you can give your boss is a plan of action for the unexpected (contingency plan) and dialog to help manage expectations of your performance.

Take the example of a wig shop owner who provides high-end wigs to women of distinction in the $250 plus range. If someone wants a quick wig for a masquerade party or a run-around wig, this is not the shop for her. The successful wig shop owner will have clients who understand that wigs in her shop are custom and will willing to pay more money and expect a certain level of service.

TAKE THE MONEY HOME

Things are not always as they seem. Don’t get caught up thinking that just because you’re busy, your company is making money or you are adding value to your employer.

Take charge of your business and your career to determine what path you wish to pursue to succeed. Send the right message to those who can make a difference and attract qualified opportunities to help you take the money home.

Walter Turek, Vice President of Sales and Marketing for Paychex, makes the point in the foreword of the book, “Make the Leap: From Mom & Pop to Good Enough to Sell,” that growing your business requires at least four steps:

1. Know where you are now and how you are currently viewed in the market.
2. Define what you want to be.
3. Study and evaluate the demand for your intended market growth.
4. Start promoting the company with the vision of what it will be.

Be patient–you must be disciplined in your growth. Take it in steps. When you reach a plateau, make a business decision and take the next step based on facts, study, test marketing, and experience. As a result, you’ll be able to justify your decision and determine how to tweak it, when necessary.

Genevia Gee Fulbright, CPA is President & COO of Fulbright & Fulbright, CPA, PA, a business strategist, tax advisor and author of Make the Leap: Shift from Corporate Worker to Entrepreneur and most recent book Make the Leap: From Mom & Pop to Good Enough to Sell (Infinity Publishing). Her sound financial planning advice tips can be read regularly on www.urbanthoughtcollective.com. Visit Fulbright at www.makeleap.com.

ShareThis