Facing foreclosure, short sale or worse?

If you or someone you know is facing the possibility of having to get out from under debt tied to a house that has been drastically reduced in value, have lost a key source of income or just want to sell their house for various reasons, Alan Hoffman at Homegate Realty is the man that can help.

This was the second time that I've listened to Mr. Hoffman speak at a ProNet general meeting and he doesn't disappoint.  Above all, he makes it clear that he and his staff are there to help.  And in this odd time of people scrapping, Homegate is really showing themselves to be one of the "good guys".  A clear message was don't fall prey to someone who is claiming that they can readjust your mortgage.  Much of the work can be done yourself.  Or Homegate can help you with negotiating the banking waters.

Also, there is a process by which banks conduct short sales or foreclosures.  You need to do the homework as well as getting over the idea that you have to keep your house at all costs.  The financial hole that some people are digging for themselves, potentially ruining credit and adding unneeded stress in their lives all can be mitigated to some extent.  The answers may not be pretty yet the financial and family pressure can be eased somewhat.  And Homegate can help you with all this.

And there is certainly enough statistics and prognostications about the future of the housing market.  We could see another 20% reduction in values in Reno-Sparks market.  Prices may not come back for decades.  So what does this all mean?  Where my parent's generation valued home ownership, thought that prices would always go up and wanted a place for the kids to always come home to, our time will mean something completely different.  Where and how you live will be more and more a financial decision than one of the heart.  Attachment to a physical property will not mean as much.  This does make me sad when I think about my parents living in the same house for over 45 years and the sense of security that they have.  Will we as a society become more attached to a certain region because we can't be mobile anymore?  Or will we be renting more in order to be more mobile?  Will technology play a part in the rate of mobility of society?  Will foreign investors see an opportunity due to depressed prices?  At what point will the market begin to bottom out?  All good questions, yet one thing that has forever changed back to the way it was - real estate is once again a long term investment decision.  Long gone are the days of flipping property or moving up quickly or transferring to another metro area at the drop of a hat.

So many factors in buying real estate now compared to five years from now.  And because there are many more complications, I would highly recommend Alan Hoffman and Homegate Realty to help with understanding the constantly changing real estate market.  Especially if you are looking for someone with a "white hat".

No more political emails!

Please don't take this personally.  I emailed this to a bunch of people earlier.

I am declaring that I will not get any of my information on politics going forward from emails from anyone.  If I am sent an email that has a subject that hints at all that it is political, I will delete it without reading it.  If you must know why, please keep reading.  If you don't care, please know that you face the possibility of having all of your email labeled as spam.

So if you are getting ready to label me as an extremist, please understand that I am an American first with an independent affiliation.  I have been registered as a member of the Republican and Democrat parties at different times during my life and I am currently disgusted with politics in this country.  The problem is that the email sphere has become as unreliable, vicious, libelous and childish as I have ever seen it.  It has become the bane of my brain-space.  There are many other sources of information that I am choosing to use for my evaluation of political information.  And there are many other wonderful things about life that I am choosing at this time.

I would ask that you too take the time to think about what you send and whether or not it is truly something of value and not a ranting by someone who has no credible authority whatsoever.  In this era of instant gratification, wouldn't it be better to show some restraint or at least consider that others are not as rabid about a particular subject as you are?

This extends to social media as well.  With the impending 2012 presidential elections, this medium will be used and abused as much as email.  At least with social media, I can unfriend, unfollow and disconnect.  So forget including me in distribution lists, flash mobs, chain letters or petitions to get whoever recalled from office, whoever elected to office or solicit my vote.  Unlike our politicians, my vote is not for sale to the highest paying lobbyist.  No more political cartoons (I'll get mine from the Sunday paper, thank you.), no more quotes from supposed intellectuals, no more videos from talking heads, no more doctored pictures, no more commercials with information taken out of context, no more blather from cable/broadcast news.  To quote from the movie "Network", "I'm mad as hell and I'm not going to take it anymore."  And I don't want to hear about it for the next 15 months.  When I'm ready to vote, I'll do my own research without kibitzing coming from useless emails.

I encourage you to take this same pledge.  No more political email.  And I'm not talking about some phony political pledge that supports a platform that benefits a very small minority.  Think like an American.  What's good for all of us is good for each of us.  If you are going to take the pledge, please comment below.  And feel free to use this as a template for your own declaration to your email contacts.  And if this is all too much for you, please feel free to delete my email address from your contact list.

Patience, leadership and basketball

This is not a grand post about sports analogies or advice from playing a game that doesn't apply to your everyday life.  How you view this post hopefully will be one that helps you see that obstacles can be overcome with patience, persistence and having a good mentor by your side.

At this week's ProNet general meeting, we had the distinct honor and privilege to have David Carter, the head coach of University of Nevada-Reno's men's basketball team speak about his journey to his current position, how he approached his goals and how he had a key mentor that helped him with perspective.  He also will be referred to as "Coach Carter" in this post, since that is what he has his long-time friends call him.  Yes, the ones that told him after his basketball playing days were over, that being a coach was a foolish thing, in so many words.

As a star basketball player for Crenshaw High School in Los Angeles, Coach Carter had many choices of top-notch colleges to attend.  But if it wasn't for his older brother, he may not have even had that opportunity.  With formidable competition for the point guard spot, this was one of the first times that Coach Carter relied on his military-trained brother for advice.  He heard that he should stick with it and do his best.  When he was picked for the team, his brother's response was one of a knowing expectation that Coach Carter would get the desired spot of point guard.  That quiet leadership that he experienced early from his brother, would become a touchstone for other major decisions in his life.

One other situation that is applicable to all job seekers out there was when as an assistant coach, paying his dues, he interviewed for a couple of head coaching jobs.  When he didn't get the positions, the response was that he needed more experience.  This begged the question, "How do I get the experience?".  He learned that in order to be considered for bigger responsibility that you need to show up, do your job the best you can and try to have empathy for the person currently in that position.

A great leadership question was asked related to bringing a group of kids that knew nothing but being a star at the high school level.  Coach Carter said that the key to success was to get the kids to understand that they all have a role to play at a specific time.  Seniors to freshman all had to know that each player has a role in order for the team to be successful.

And lastly, he was asked about interviewing for a job while you were still employed.  His comments focused on being where you are, doing what it takes to be successful where you are, don't go looking for it, but be open to the possibilities.

It was a real joy for this former high school basketball MVP to remember some of the lessons that I had been taught by my coaches.  Now it's time to pass those same lessons onto others.

Living in the Upper Loop: Being accountable vs. being the victim

At this week's ProNet general meeting, we were treated to an excellent presentation about the signs and impacts of our behavior, both in our personal and professional lives.  Jane Grossman, a self-described "Catalyst" (love the job description!) with A Sustainable Way, a consultancy focused on creating a competitive advantage, as well as being in collaboration with IMPAQ Accountability Business Solutions, showed us how to recognize when you are accountable for your actions and when you are playing the victim. 

So, first off, how did she describe the meaning of accountability? Using IMPAQ's Personal Accountability model, she first made the distinction between personal and organizational accountability.  Personal accountability was defined by taking action consistent with your desired outcomes.  Organizational accountability was defined as having a working environment where people can count on each other.  The benefits of staying in this "upper loop" are fantastic.  Who out there doesn't want greater success, improved relationships, increased self-confidence, more effective uses of resources and increases in teamwork, trust and morale?

And how do we know when we are in the "lower loop" and playing the victim?  We've all been there - by ignoring an issue, denying that an issue exists, blaming others, rationalizing our behavior, resisting help or just plain hiding somewhere in your bunny slippers.  And how do we begin the process of moving from victim to being accountable?  According to Ms. Grossman, it begins with "the ability, willingness and courage to renew attitudes and behaviors to achieve desired outcomes".  In the business world, this means that teams find ways to contribute to overall success and don't spend time blaming others or tuning out when things don't go their own way.

The first thing to do in getting out of the victim role and becoming accountable is to recognize that you are in a victim loop.  Just like other addictions, recognizing that you have a problem is always the first step.  One of the big steps is about forgiveness.  Ms. Grossman spent a good deal of time discussing that this is a big part of a highly personal process.  I like to say that forgiveness is all about "giving it up" or "letting it go" and this seems to be in congruence with the presentation.  We are entirely too hard on ourselves these days and I think that it's because there is a huge perception that we have so much to lose and there is no room for mistakes.  Sure many of us have made mistakes and paid the consequences but the learning opportunities are what life is all about.  (Just my humble opinion)

If you are looking for a unique, productive method of bringing a dysfunctional team together, I would highly recommend that you check out A Sustainable Way and have Ms. Grossman come in to help break a logjam of decreased productivity, distrusting relationships or lack of success.  You can reach her at 775-849-9755 or janeg@asustainableway.com.  To learn more about IMPAQ, the Personal Accountability model and their extensive strategy and leadership development programs, check out their website at www.impaq.com.

Are you getting ready to dip your toe into the hiring pool?

Photo by Jonathunder

Ah, summertime.  When the eatin’ is good and the cotton is high!  Graduations are done and a whole new crop of eager beavers are out there looking for their first great opportunity to make a difference in this great world of ours.  Many have their heads filled with new ideas and the passion to make them happen.  So how many of them are knocking at your door?  Do you really have a need or an opening?  Are budgets set for the year and “it’s just not a good time”?  Are you looking for someone to provide that spark of innovation that could kick your accomplishments (and profitability) into high gear?

Sometimes it feels like a curse to have seen so many ways not to run a business.  One gigantic mistake that I have seen frequently is that business owners and managers underestimate the value of the people they hire as employees.  Yes, we live in a time when corporate and employee loyalty are not what they used to be.  Yes, there is pressure from overseas to outsource American jobs that no one dreamed would happen.  Yes, there is increased competition and costs putting constant pressure on profitability, both long-term and short-term.  So, as someone in the position of hiring new employees, how do you go about filling key positions and identifying the kind of people you need?

Willie Mays - NY Giants - 1954

First decision you probably have to make is cost based.  Based on the skill set required and the supply and demand for that skill set, you try to set a salary level, advertise for the position and sift through the resumes.  When you’re sifting, what are you looking for?  You typically have two choices: hire the veteran or hire the rookie.

With the veteran you hopefully are getting a seasoned professional who can make an immediate impact.  This is also the person who is going to cost you more.  The rookie will be a smaller hit to your budget and will most likely require more training and handholding to get them up to speed.  Ideally, this should be a classic “you get what you pay for scenario”.  There are distinct advantages and disadvantages in each scenario.  The veteran may be the “rainmaker” you need and there may be baggage or skeletons from previous experience that may negatively impact performance.  The rookie, on the other hand, will be cheaper yet their inexperience will require training time and effort that you may not feel you have.  The value proposition is whether the time invested in training the rookie and the funds saved in compensation will pay off over the expected length of time the new employee is with the company.

In either case, whether you hire the veteran or the rookie, it is key to find out what their level of commitment will be to the new position.  Again, without much loyalty on either side of the table, as the business owner you need to know how much you can rely on the prospective employee, especially if they are going to be in direct contact with your customer.  Which brings up another extremely important point.  If you are trying to find someone for an open position in sales or customer service, this is the time to be extremely selective.  While other positions in the company are important to the operation of the company, you can make an unbelievable impact by hiring the right people for customer contact positions.  This is where the image and culture of the organization will be in contact with the outside world.  This is where your style as the business owner will be reflected and duplicated to your customers.  Many companies require personality testing when looking for customer contact employees.  While I’m not a big fan of categorizing people into neat psychological cubbyholes, this is one area where I would consider making an exception.  During the interview process, you want to hear phrases like, “I love working with people”, “I’m calm under fire” and “I like to help others in developing solutions”.

One thing to remember: that while products and services are sold to generate revenue, it’s the people that make it happen.

The Debt Ceiling and our Two Party System

Okay, so I can't keep my big, fat mouth shut on this issue any longer.  First off, please know that I am not affiliated with either of the major parties.  I am at times disgusted, yet find myself agreeing with some issues on both sides.  So I guess that makes me the definition of today's independent voter.

With all the gnashing of teeth in Washington on whether or not to raise the debt ceiling, it is plain to me who will be to blame if we get to August 3rd without coming to a resolution.  That would be the party of 'no', the Republican party.  Please don't get me wrong, I agree with many of the ideas regarding bringing the national debt under control.  Let's keep this part simple.  One party says yes.  The other says no.  It's the one that says no that keeps the ceiling from being raised and will be responsible for holy hell breaking loose in the financial markets.  So my message to the leadership of the Republican party - your legislative body knows that the real work happens in negotiating the budget, so do it.  Their is no upside to holding the debt ceiling over the heads of every American citizen, only downside.  Quit being childish and walking out of meetings.  By the way, this sets a great example for our children - if you don't like the game, you just take your toys and go home.  Real nice.

And here's the other part that the Republican party does not seem to see or hear - the middle class is suffering more than the 9% official unemployment rate indicates.  Many more are under-employed, using savings and scraping the bottom of the barrel just to get by.  Some economists are saying that we are really in a depression.  But that news doesn't seem to be getting to the GOP.  They steadfastly refuse to close loopholes for the rich and are willing to threaten any chance that we have for a real recovery in the short-term.  Yes, I understand the long-term goals of less government, less taxes and all.  We all want more in our pocket.  Yet, no one wants to pay for any of it, especially the rich ones who who paid for the loopholes and can more than afford some of it.  Remember this, 40% of the nation's wealth is held by 1% of the population (Wall Street Journal).

Oh and the Democrats are not without blame either.  Yes, some of the spending was necessary to keep the economy from falling into a 1930's style depression.  The money wasn't coming from the consumer or business sectors.  That said, now is the time for true long and short term planning.  Now is the time for real efficiencies to be put in place.  Now is the time to get rid of redundancies.  Now is the time to look at real cost benefit of everything, including defense and entitlements.  Unfortunately, a few got us into this mess, but all will have to sacrifice at some level.  Oh and by the way, what is really being done to keep this from happening again?  Not much I'm afraid.  Between the toothless SEC and the timidity of Congress to enact real reform legislation, we are in danger of all this happening again when real recovery occurs. 

True reform is going to take real compromise.  The majority of the country is in the middle.  I suggest that both parties meet us there.  It's only together - united we stand - that we will be able to get through these most devastating economic times.

Time to listen to Chicken Little?

Gas Prices Going Through the Roof!  Interest Rates are Climbing!  Inflation on the Horizon!  Social Security Going Bankrupt!  Health Care Unaffordable! Chicken Little Says, “The Sky is Falling!”

It’s bad enough that you are constantly worrying about the revenue side of your income statement when the expense side is just exploding.  The pressure from competition to keep your prices low and higher expenses squeezes your profit.  As a small business owner, you are left with trying to make hard decisions that affect your customers, employees and suppliers.  It’s times like these where it’s a good time to look at the overall strategy of your business.  So where do you start?

Taking a business plan approach to your business is a great place to start!  Look at your marketing plan to see if your strategies are still relevant.  Are your customer acquisition methods still working?  Is customer service still the best it can be?  Look at your financial plan.  Are your margins holding or are they under pressure from suppliers and vendors?  Do you have sufficient cash to meet your obligations?

Revenues are generated by demand for your product or service.  There are many questions to ask about what is changing about your customers during uncertain times.  We haven’t experienced inflationary times in a generation.  Price sensitivity is a key concept that will be talked about as if it is a new idea. 

As your costs increase, many businesses need to determine if some or all of those costs can be passed on to their customers.  You, as a small business owner, need to make the determination if you will lose any customers if you institute a price increase.  If you will lose a significant number of customers with small price increases, this means your customers are very price sensitive.  Also, if your product or service is not a commodity, odds are your customers will be less price sensitive.  Conversely, if your product or service is a commodity, the more likely that customers will shop around to find a better price, hence a higher price sensitivity.

What if your customers are very price sensitive and you cannot raise your prices because losing any customers would be a disaster?  Your only choice is to take a hard look at your expenses.  The trick to making these hard decisions is to minimize the affect on your business’s ability to service your customers while maintaining good relationships with suppliers and employees.  Unfortunately, the reality is that someone will not be happy.

With fuel costs skyrocketing, you may be able to get away with a fuel surcharge.  There are many businesses that are freight-oriented and are having to consider this change.  If you are considering a fuel surcharge, consider that it be used only temporarily.  When gas prices settle down (and they will), your customers will perceive that you should incorporate the added expense into your pricing.

Annual increases in health care costs have been outpacing increases in all other business expenses for quite a while.  Even large companies that spend billions on health care for their employees, are considering drastic measures to reign in the cost of this benefit.  You may have to consider health plans that are not as rich in coverage or require that your employees share in the premium cost.  If health care has been a bigger part of the overall compensation package, the harder it will be to make these changes and not affect the motivation of your employees.  One option that is becoming popular among small businesses is to offer a fixed dollar benefit for health care premiums and let your employees find an insurance plan that fits them best.  The general trend is that the more that employees have to pay for their own medical care, the more they will be discriminating with their medical expenditures and look to prevention options, such as a better diet and exercise.

With all the feathers being ruffled over changes to Social Security and the harbingers of doom being broadcast by both sides of the political fence, it is still extremely important to keep making contributions to your retirement plan.  As a business owner, if you feel that you have to cut back retirement benefits, one way would be to cut your match of the employee’s contribution in a defined benefit plan.  If you are considering eliminating a retirement benefit or plan, always consult your CPA and your financial advisor to discuss the ramifications, both with the IRS and with your employees.

If you got this far, it's hard to believe that I wrote most of this article for The Business Times in Grand Junction six years ago!  Yes, 6 years ago!!!  While things change, some things stay the same.  What's that tell you?  Keep at it!  Focus.  Know that you have control over some things, yet it doesn't pay to spend your energy worrying about others.