June 2004, Issue No. 4, Page 1 of 2

HOUSTON BUSINESS REVIEW

WHY YOUR SMALL BUSINESS ISN’T GETTING MEDIA ATTENTION, PART 3 IN A SERIES, by Kevin J. Price

Kevin J. Price is Host of the Houston Business Show and Editor of the Houston Business Review. He is the author of several books and worked as a policy analyst in Washington, D.C. during many of the Reagan years. Mr. Price is available to speak to your group or organization. Please call him at 713.984.0235 for more information.

Last week I discussed the basic elements of a press release and some of the helpful services available online, at no cost, to promote your business. To recap, they include PR Web, HoustonBusiness.com’s media release service (contact press.releases@houstonbusiness.com), and Gebbie Press (which provides a great source for finding media outlets). Furthermore, I discussed the basic elements of a press release that you really must become familiar with. A great summary of “how to write a press release” is available on the PR Web site. This week I’m going to focus on a quick and easy way to get exposure, some of the best places to get the word out on your business, some of the things you need to know about the local media in order to get your story published, and some of the other elements for pursuing a successful media presence.

One Sure Way to Get Exposure. The Houston Business Journal, and Houston Chronicle (as well as the Houston Business Review) are always eager to mention “people on the move in business.” By simply sending a photo by either email or snail mail to these publications and providing a short explanation of the change that has taken place ("Joe Smith to Become Partner of the CPA Firm of..."). These are quick and easy to do and publications are always desirous to share such this type of information their audiences.

Some of the Best Places to Get Your Story Out. For the Greater Houston area I suggest you focus on the Houston Business Review (yes, a plug for this publication). This is for of a couple of reasons. First, we have a mission of being devoted to smaller and microbusinesses. This is an objective that other publications don’t always share. Second, we are not particularly interested in businesses outside of Houston. When we mention stories of businesses outside Houston it's because they specifically affect Houston businesses. Another great source to get the word out is Houston Community Newspapers. They are exclusively interested in local businesses and I know from visiting with their people that they are always looking for local business stories. Many of the local radio stations, particularly Business Radio 650 and News Radio KTRH 740 AM are looking for stories with a business approach. Finally, on television, News 24 Houston has a huge mandate of providing 24/7 local news. They, too, would be open to your story. Send the word to everyone, but focus on these outlets particular.

What You Need to Know About Local Media. Neither the Houston Chronicle or the Houston Business Journal are owned by local companies, and this is reflected in their approach to the news. The Chronicle is a Hearst publication and receives a continuous feed of stories from all over the country. This is fine in Section One, but you see this in virtually every section of the newspaper. This is particularly true of the Business Section which gives the impression that all is required is one or two token stories on local businesses each week. I know they have a hard time finding local stories (we all do), but a paper with its resources is perceived as being more capable to provide such than it is demonstrating. The same is true with HBJ. The Journal is one of the many publications produced by Biz Journals out of Atlanta and, other than a single front page story and its industry reports, the vast majority of the paper could be found in business publications around the country. The bottom line, it is simply too easy for these publications to not write about Houston business.

In sum, the opportunities are there for your business to be seen, you simply need to pursue them. The result will be an excellent professional presence and exposure that will help build your bottom line.

HBR Note: Kevin Price will be conducting a seminar the Houston West Chamber of Commerce on this very issue. The seminar is going to take place in August and will deal with the basics of media and will be a hands on approach to public relations.

FIVE CHARACTERISTICS OF A SUCCESSFUL BUSINESS OWNER, by Jim R. Sapp, special to HBR

Mr. Sapp was a guest on this week’s Houston Business Show to discuss his book Starting Your First Business. The book is an excellent reference tool and a great resource for anyone facing the challenges of creating their first business. Find out more information about Mr. Sapp and his book by visiting his website.

You must possess the following characteristics if you want to be successful owning your own company.

1) Ability to Make Decisions. You will have to make decisions on hiring, pricing, location, operations, marketing, advertising, even the size and style of the lettering on your business card. The list goes on and on. If you have trouble picking out your clothes in the morning, stay with your current employer. Owning your own business requires that you make literally hundreds of decisions every week, some big and some small. Can you decide whom to hire, whom to fire, what to buy, what to sell, and how to price it? Many decisions are not black or white. Some decisions will be extraordinarily difficult, even controversial.

When faced with a difficult decision, my policy has been to ask myself this question, “What is best for my company?” When you have that answer, you usually know what to do. Making decisions is not easy. You won’t make everyone happy with every decision you make. Sometimes, your decisions won’t make anyone happy. But as the owner, you must make the decision and go on. Get all the facts first, but the final decision is yours—not another employee’s, not a committee’s. The buck stops in your office.

If the issue is serious, never make a decision on the spot. Think it over for an evening or a weekend, and then go into the office with your answer. Waiting a day or two to consider all the facts is fine. Waiting a month is too long for most decisions. You have other sales objectives and issues to handle.

Remember, as the company owner, it’s OK to change your mind about something as your company grows and changes or new information becomes known. But precious few businesses are successful if the boss can’t make a decision.

2) Ability to Say “No.” You will have to not only make decisions but also know when to say “no.” It isn’t easy. There will be times when, for the good of the company, you will have to override the demands or desires of your employees, customers, vendors—even family members. You must have your heart in your business, but you must manage with your head.

3) Ability to Multitask. As a new business owner, you must wear many hats—especially in the beginning. You won’t start your company with a big staff, so you will have to be the one to make telephone calls, order inventory, deal with customers, design advertising brochures, pay the bills and—most importantly—sell the product or service you’ve developed! Sales and production should always be at the top on your “to do” list. You will have to perform many jobs in tandem, and be able to set priorities along the way.

4) Ability to Negotiate. You must possess the ability to spar with staff, vendors, and customers in a manner that wins you service or allegiance. If you are either unable or unwilling to negotiate fairly with people, you won’t be able to successfully manage a small business. As you negotiate, remember to focus on your main goals of increasing sales or production. If you are discussing price with a vendor, for example, keep in mind that a slightly more expensive but superior raw material will give you the edge when selling your product.

5) Leadership Skills. You must be the role model for your company and its employees. Others will watch what you do and say, how you speak and dress. Employees generally will attempt to follow your lead. If you arrive at work every day at 8:30 A.M., but your business opens at 8:00 A.M., you will be hard-pressed to encourage employees to arrive on time or early. Your staff, customers, bankers, and even the local community will take note of your actions. If you’re a perfectionist on production and services, your staff will understand that there is no room for sloppiness and will try to produce an excellent product.

This isn’t to say that if you work hard, everyone around you will, too. You will still need quality controls and work review to produce a superior product or service for your new company. But remember that what you do and say is very important. Business ownership is a great opportunity to show your leadership skills.

TWO TOOLS TO HELP YOU TO FIGHT HIGH GAS PRICES

People are scratching their heads in shock over the massive increase in gasoline prices. Most feel relegated to merely complaining about it, others are calling their member of Congress, and others are considering digging their own wells. However, a rapidly growing segment of the population is using the World Wide Web to find a way to keep their prices under control. One way is through using these two websites: GasPriceWatch.com and GasBuddy.com. For the next few months, these sites might be a consumer’s and business owner’s best friend.

We Houstonians are spoiled. With gas at around $1.75, we feel the Second Coming is upon us. However, according to GasPriceWatch.com, the Houston area enjoys some of the lowest prices in the country, with Katy's prices being around $1.65 a gallon (on the date this was written). Rosemead, California, on the other hand, has the nation's highest prices at (gulp) $3.00 per gallon. The national average is now pushing over $2.00 a gallon.

Both sites have enjoyed a boom of interest in recent months and both of them are helpful. However, my personal preference is GasBuddy. Below is my assessment of the sites.

GasPriceWatch.com. Visually, the site is less than attractive and it requires quite a bit of digging before you get to the information you desire. There is a section where one can put in his zip code and the radius they desire to locate gas stations. I put in mine and asked for it in a 20-mile radius and received almost 2,000 matches. Furthermore, there is a color-coded legend that explains how old the information is, a feature that made me even more confused. I clicked back in put in five miles and got over 300 options. Still too many, back again to one mile and finally I had a number I could work with: 20 stations. But, the question of whether I had the best options hung over my head. This was getting old real quick. Then I noticed that there weren’t any prices for those stations listed on the page. I was ready to check out GasBuddy.

GasBuddy.com. In addition to being more visually attractive than GasPriceWatch.com, GasBuddy.com enables you cut to the chase much quicker. On the home page is a map of the United States (and Canada). Navigate to Texas Texas, then click on your city. In our case, clicking on Houston takes you to HoustonGasPrices.com.There are two tables on this page, one listing the lowest gas prices in the previous 24 hours, and the other listing the highest prices. The site is a little cumbersome to navigate. First you must scroll down to find the option that is closest to you. Stations are broken down into geographical areas (Northwest, West Houston, etc.) and cross streets. The lowest price on the day I visited the site was $1.67 per gallon at Sams Club, 1615 S. Loop West. GasBuddy.com is more user-friendly and contains more information than GasPriceWatch.com.

We will keep links to both of these sites available to you as we weather this current crisis. Hopefully, by bringing this information to you we can help provide a little relief and make driving a little more affordable.

NEED A GREAT SPEAKER?

Don’t look any further than the Houston Business Show Speakers Bureau, sponsored by HoustonBusiness.com™. The Speaker's Bureau features award-winning writers, nationally recognized experts, and entertaining speakers. Perhaps best of all, we provide these speakers free of charge to qualified organizations and speaking engagements receive free publicity for the event in this newsletter, on the HoustonBusiness.com™ Business Calendar, and on the Houston Business Show.

Members of the Houston Business Show Speakers Bureau will be speaking at several events in the next two months. Kevin Price, host of the Houston Business Show, will be speaking at the Services Cooperative Association ("SCA") about the Houston Business Climate for the SCA's 15th Annual Entrepreneurial Workshop. Mr. Price will also be speaking at the Ravenaux Breakfast Club on July 16 on business megatrends. Get more information about this group by calling 281.469.1800 and ask for Arch Payne. Richard Sonnier of Nimble Services will be speaking at another Ravenaux breakfast meeting. Mr. Sonnier is a Houston Business Show Commentator. Details on his presentation will follow. For more information contact Stacy Walston at 713.984.0235.

EMPLOYER BEWARE by JP Magill

Houston Business Show commentator JP Magill, a principal of the Achilles Group, provides weekly commentary on HR issues for the Houston Business Review. The Achilles Group is a leading HR consulting firm and can be reached at 281.469.1800

For the last year, attorneys have been telling any one who would listen that the next wave of employment lawsuits are going to involve Federal Labor and Standards Act ("FLSA"). The FLSA is the legislation that has been in the news recently because it is the law that defines and dictates overtime requirements. Overtime requirements protect, in theory, those employees who do manual labor like turn a wrench or lift boxes. The issue that is being struggled with today is that when the law was written the country was had an economic base of agriculture and manufacturing. Today, our jobs have expanded into technical and service type jobs. For years employers have been trying to use these antiquated rules to classify employee positions that the creators of this law had no concept.

Because FLSA has this gray area, many employers err by classifying a position as salaried and exempt. The employee was normally all right with the salary classification because they had been elevated above a laborer. Owners and managers were happy because they had a fixed cost that they could work over 40 hours and not have to pay additional wages. Everybody was happy. Until the separation.

A year ago a client of mine separated a man from his business and offered him a sizable severance. The then former employee refused the package and sought legal action. The former employee had requested to be paid a salary and worked in a hybrid position of administration, outside sales and inside sales. He even referred to himself as an outside sales person. The opposing counsel sued the employer for unpaid commissions and unpaid overtime because he was an “inside sales person”. (Special Note: An Inside Sales Person is a non-exempt position.) The employer was represented by one of the top labor attorneys in the country. It was decided that both parties were to attempt to solve the dispute with mediation. At mediation the claim for unpaid commissions seemed to go away and the focus paid on the overtime claim. The mediation was not successful and the battle began. The employer spent more than $40,000 in legal fees and costs over the next six months. The judge demanded that the parties return to mediation. At mediation, the employer was told that it would easily cost him $60,000 to just get the case to court. The employer, worn down by the legal process, conceded to pay the former employee over $30,000. In reality, I speculate that the former employee had to pay his attorney 50% of the judgment plus legal fees. This would leave the former employee getting less that the employer had offered at the beginning of this process.

Bottom line: FLSA cases are going to continue to rise as the media continues to talk about the possible new changes. And secondly, as my client found out, being right does not mean you will win. Do you know how your employees are classified?

WHO SAYS YOU CAN’T AFFORD A BILLBOARD?

Businesses pay thousands, sometimes tens of thousands, of dollars to advertise on billboards in Houston. We think these businesses are wasting serious cash. On the other hand, businesses interested in saving money to reach the same-sized, qualified consumer audience rent a billboard from HoustonBusiness.com™. From between $155 to $180 per day, your business can seen by hundreds of thousands of people daily. Learn more by visiting our Outdoor Division. You'll be glad you did.

COST EFFECTIVE IT: IT AUDITING, by Richard Sonnier

Houston Business Show commentator Richard Sonnier, of the Information Technology Services firm Nimble Services, Inc., provides weekly information on our show about information technology issues. Mr. Sonnier can be reached at 281.445.4800 x 250 or rsonnier@nimbleservices.com

This week I will discuss the Sarbanes-Oxley Act and IT auditing.

The Sarbanes-Oxley Act

Here in Houston, we are all too aware of the Enron collapse resulting from an accounting scandal. Enron's auditor was Arthur Anderson, at the time one of the largest accounting firms in the world. They are out of business as a result of the Enron scandal. Sarbanes-Oxley is legislation passed by Congress in the wake of Enron and other corporate scandals. The legislation mandates higher controls and certification of the financial reports of publicly traded companies. You should be aware that the Act is also setting new standards for IT security. Since it is a public standard, many feel that even private or not-for-profit companies will have to comply with its requirements or face litigation for negligence.

IT Auditing

As noted in previous articles, IT is integral to most company operations espcially accounting and financial reporting. Therefore, Sarbanes-Oxley is causing all companies to evaluate the controls and security of their IT systems. Ultimately, this takes the form of an IT audit where the auditors will look much deeper into the IT systems than in the past. The key areas being examined are:

IT Control Environment;
Computer Operations;
Access to Programs and Data; and
Program Development and Program Change

From this top level, the auditors want to see a framework of company policies and the specific controls that implement those policies. It can be time consuming and expensive to meet all the requirements.

Next week, I will discuss IT security.

AFFORDABLE HEALTH INSURANCE?

Who says you can’t afford health insurance? Truth is, you can’t afford to not have health insurance. With measures for cost containment that have been implemented, today health insurance is more affordable than at has been at times in the past. Contact the Benefits Division and ask for information on how to offer health insurance through your business at no cost to the employer, how to reduce your tax burden through your health insurance, or inquire about the most affordable and convenient ways for the unemployed to get coverage (hint: it isn’t through COBRA). Call 713.984.2431 and ask for Stacy to request more information.

NONE OF THE OPINIONS EXPRESSED HEREIN ARE THOSE OF HOUSTONBUSINESS.COM™, THE HOUSTON BUSINESS SHOW, THE HOUSTON BUSINESS REVIEW, OR ANY OTHER FIRM OR COMPANY REPRESENTED OR REFERENCED HEREIN. FOR ADVICE OR OPINION, WE SUGGEST YOU CONTACT A QUALIFIED PROFESSIONAL OF YOUR OWN CHOOSING.