Choosing an Attorney: A Matter of Timing?

How many lawyers does it take to change a lightbulb?  None.  They’d rather keep their clients in the dark.

The other day I was at my daily Extreme Boot Camp class in Claremont and quite frankly, my butt was getting kicked.  This is a good thing since I still have quite a bit of baby weight to tackle.  We had run and pushed up and sat up and jumped.  You know, all the things that a Boot Camp should require. 

I was yapping with another lady in the class and I said, “I am not not tired.” And she said something to the effect of “typical lawyer, just say that you are tired.  Always trying to make things complicated.”

Ah, sigh.  Most lawyers totally can handle a “lawyer joke” without needing therapy.  We knew when we went to law school that our profession was mocked.  I start off every single conversation with a prospective client knowing full well that they think I am trying to rip them off somehow. 

Now, this article is not going to try to bring down a rich history of lawyer jokes and general despise of attorneys to an end.  After all, some of the jokes are funny.  But, maybe, the problem is not the profession as a whole.  Maybe it is who clients choose and the timing of when the attorney is chosen that is the problem.

In terms of the choice of attorney, I can tell you one thing after talking to hundreds of people on the phone that are looking for an attorney.  Just in my own firm - some people respond better to me, some people respond better to my partner.  We have different personalities and ways of approaching situations. For example, he is more formal; I am more casual. 

So, why do people choose attorneys that they do not like?  Do you think that if the attorney is rude they will berate your opposition into disappearing?  Unlikely.  For the most part, you want things to settle quickly and that does not happen when a jerk is negotiating on your behalf.  Spend a little time.  Even if your issue is pressing, find someone that you like. 

You can bargain shop for the best deal, but remember that you get what you pay for. Look at where they went to law school and when the attorney graduated from law school.  This is public information – www.calbar.ca.gov.  (By the way, don’t even get me started on LegalZoom.  Long, painful sigh.)  Google them! 

Interview your attorney.  Call at least three people before you decide.  Ask lots of questions if you get a free consultation. We are ready for your questions.  Ask about flat fees, ask about billable rates, ask how quickly you will get your work product.  If you do not like the attorney from the start, the attorney will not grow on you when they bill you $300 an hour.  I promise.  Find someone who is a problem solver and not just an issue spotter.  Find someone who returns your call in 24 hours.

The other reason that I believe people hate attorneys is that people choose their attorneys (most of the time) when something has already gone awry and now they are angry that they have to throw money at a problem so that they can fix it.  Why not come to an attorney before the problem?  Why not show up when you are happy?  You will probably make a better choice if you are not angry that you have to be there.  Sometimes this is not an option, for example, car accident/personal injury cases.  But usually, you could have chosen when you did not have to choose.  For example, have a business attorney read a contract before you sign it to point out problematic clauses.  You may be happy you did in six months when you need to terminate or there is a dispute. 

Anyhow, after my Boot Camp class the other day, that lady came and apologized to me for giving me a hard time.  The apology was not necessary. I totally understand the preconception.   But, maybe all you clients out there should be looking now and getting while the getting is good.  What proactive steps are you taking?  Are you waiting?  Do you think you are savvy enough to do it yourself?  Maybe calling an attorney won’t be so bad. 

And so, in closing, how do you get a bunch of lawyers to smile for a photo?  “Say Fees.”
Sorry, couldn’t help myself.

Now, go and be productive and profitable.

Tina Loza is an attorney based in the Inland Empire.  Tina and her husband have their own legal practice specializing intellectual property law (patents, trademarks, copyrights, domain name disputes, etc.).  She also has three kids under the age of 3 and lives in Pomona, CA.  For more info, go to www.lozaip.com .

The 5 C's of Credit: What They Mean to Your Business

Businesses face any number of financial challenges. Often, it's as simple as needing financing to grow and stay competitive, expand business operations, purchase assets such as new equipment or a commercial building, or even consolidate and restructure business debts.
One of the most common questions among small business owners seeking financing: "What will the bank be looking for from me and my business?"

While each lending situation is unique, many lenders utilize some variation of evaluating the five Cs of credit when making credit decisions: 

 1. Character:

• What is the character of the management of the company?
• What is management's reputation in the industry and the community?

Investors want to put their money with those who have impeccable credentials and references. The way you treat your employees and customers, the way you take responsibility, your timeliness in fulfilling your obligations — these are all part of the character question.

This is really about “you” and your personal leadership. How you lead yourself and conduct both your business and personal life gives the lender a clue about how you are likely to handle leadership as a CEO. Your character immediately comes into play if there is a business crisis, for example.

As small business owners, you place your personal stamp on everything that affects your company. Often, banks do not even differentiate between “you” and “your businesses." This is one of the reasons why the credit scoring process evolved, with a large component being your personal credit history.

2. Capacity:

• What is your company's borrowing history and track record of repayment?
• How much debt can your company handle?
• Will you be able to honor the obligation and repay the debt?

There are numerous financial benchmarks, such as debt and liquidity ratios, that lenders evaluate before advancing funds. You should become familiar with the expected pattern in your industry. Some industries can take a higher debt load; others may operate with less liquidity.

3. Capital:

• How well capitalized is your company?
• How much money have you invested in the business?

Lenders often want to see that you have a financial commitment and that you have put yourself at risk in the company. 

Both your company's financial statements and your personal credit are keys to the capital question.  If the company is operating with a negative net worth, for example, will you be prepared to add more of your own money? How far will your personal resources support both you and the business as it is growing?

If the company has not yet made profits, this may be offset by an excellent customer list and payment history. All of these issues intertwine, and you want to ensure that the lender perceives the business as solid.

4. Conditions:

• What are the current economic conditions and how does your company fit in?
• What are the trends for your industry, and how does your company fit within them?
• Are there any economic or political “hot potatoes” that could negatively impact the growth of your business?

If your business is sensitive to economic downturns, for example, the bank wants a comfort level that you're managing productivity and expenses.
 

5. Collateral:

·         Primary Source of Repayment

·         Secondary Source of Repayment

Business cash flow will nearly always be the primary source of repayment of a loan. Lenders also look at what they call the secondary source of repayment such as business assets and the strength and financial support of guarantors.

Collateral represents assets that the company pledges as an alternate repayment source for the loan. Most collateral is in the form of hard assets, such as real estate, business assets or equipment. Alternatively, your accounts receivable and inventory can be pledged as collateral. The collateral issue is a bigger challenge for service businesses, as they have fewer hard assets to pledge.

Until your business is proven, you're nearly always going to pledge collateral. If it doesn't come from your business, the bank will look to your personal assets.

Keep in mind that when evaluating the 5 Cs of credit, lenders do not place equal weight to each area. Lenders are cautious, and one weak area could offset all the other strengths you show.

Debra Murphy is Vice President and Relationship Manager at Union Bank. She works with small to medium sized business in the Inland Empire and tailors financial products and services to help businesses grow, expand, and get to the next level.

5 Ways to Increase Profitability This Summer

It is officially summer. The weather is hot, the kids are out of school and many business owners are gearing up for some time off. But while you may be thinking summer is time to relax a bit because business will likely be slow, now is actually an excellent time to evaluate profitability and figure out ways to increase it.

Don’t get me wrong. I’m not telling you to give up your vacation or cancel summer plans. But after you enjoy your R&R, regroup and ensure that strategies are in place for your business to achieve the profitability you desire. Let me put it another way. It’s time to make money, reach sales goals and finish the year strong!

I’ve interacted with several incredibly knowledgeable women business owners over the past few months and they’ve shared some great ways for increasing profitability. I want to pass along five tips for boosting profitability this summer.

1.       Build profitability into your schedule.

Marley Majcher, CEO of The Party Goddess and author of “But Are You Making Any Money” says, “Look at your calendar and see what’s coming up. Block time for what gives you the highest return on investment.”

I love this tip, but if you’re like me, this may involve some shifting of a few calendar items, reprioritizing and perhaps simply saying no to requests that do not add to your bottom line. Or, as Majcher suggests, “Figure out what your goals are and get rid of garbage on your calendar.”

2.       Become more efficient.

Sounds simple but this again may require you to really roll up your sleeves and dig deep to discover the things that are making you inefficient and limiting your profitability. Majcher recommends that as business owners, we should track our time. Time, after all, is an expense. So for every project you take on, track the time spent. Another tip for being more efficient is “Batch your tasks and don’t spend all day on email,” says Majcher.

3.       Develop a rock star social brand.

Wouldn’t you like to have clients and customers clamoring for your products or services like fans enamored with a rock or rap star? According to Lisa Steadman, bestselling author, results coach and CEO of Woohoo, Inc., rock star branding is the next evolution of personal branding. To begin building a rock star brand, you need to embrace and celebrate your big mission—the premise behind your business—and then broadcast your message widely and frequently. Steadman says, “Shift your messaging to be more engaging, inviting and enrolling.”

4.       Add multiple revenue streams.

Once you’ve established a rock star brand, leverage it and create multiple revenue streams. One idea is to consider writing a book. The fastest way to become an instant expert is to add “published author” to your resume. Whether you sell one book or a million books, simply having written the book catapults your credibility and leads to more sales. Another way to parlay your brand and make more money is to do speaking engagements. You’ve shown expertise online, so why not offer it in person? Consider adding training to your platform by offering seminars/webinars and workshops. With a celebrity-like brand, people will want to learn from you.

5.       Ask for the business (or more business).

Seems obvious, but women often have an aversion to selling. We like the developing, creating, coordinating and managing, but selling, not so much. The trick is to not look at it as selling. Julie Steelman, Selling Mentor and author of “The Effortless Yes” says, “It’s a conversation and problem solving.” Your potential client has a problem and you can solve it. If the potential customer gives you an objection, don’t freak out. Steelman says, “An objection is just a vocalized thought about where the customer is in the decision process.”

I love that. And speaking of decisions, while you’re relaxing in the sun this summer and sipping fruity drinks with cute umbrellas, don’t forget to make the decision to be more profitable by year-end and put a few strategies in place.

Joan Burke Stanford, founder of Jazzy Pen Communications, is more than a professional writer/editor. She’s a communications stylist who ensures that business owners rock the marketing runway with their best words forward. She writes the content they need to get the results they want. For a jazzy article, blog post, newsletter, tagline or other communications project, visit www.jazzypen.com

HourGlass Art & Wine Open House Tomorrow

NAWBO-IE to Honor Amazing Women in the Inland Empire

Hosted by Inland Empire chapter of the National Association of Women Business Owners (NAWBO-IE), the Amazing Women Event awards banquet is an inspiring event that honors women business owners and community leaders who have achieved the success that many only dream about. The event takes place on Wednesday, April 27 at 6 p.m., at the Eagle Glen Golf Club, 1800 Eagle Glen Parkway, Corona.

KSGN 89.7 radio personality Brandi Lanai will be the AWE Mistress of Ceremonies.

Register today at www.nawbo-ie.org

Event News: Intellectual Property Workshop Tomorrow

NAWBO-IE Corporate Sponsor Metropolitan Water District of Southern California presents “Intellectual Property and Business Law,” an exciting workshop designed for inventors that want to promote their ideas while protecting their legal rights. You'll not only learn what the differences are between patents, trademarks and copyrights, but you'll learn where each is valuable and how it plays into building your business. Networking follows the workshop.

Date: April 14, 2011
Time: 6:00 p.m. --9:00 p.m.
Location: Metropolitan's Headquarters at Union Station, 700 N. Alameda St., Los Angeles, CA
Registration: Click here.

The workshop is part of the “Managing Your Innovation” Series is a component of Metropolitan's Business Outreach Program. The workshops and networking events were developed to provide an opportunity for business, entrepreneurs, innovators, funding community, academia, students, scientists, universities, government agencies, engineers, emerging technologies, and the general public to network, discuss ideas, gain access to the funding community, and local, state, national and international government agencies, and discover new technology on a global scale.

Exciting Lead-Generation Workshop Tomorrow