REAL ESTATE

Three Things to Consider before Buying a Marina

Marinas offer a unique and exciting opportunity

for investors who want to live the dream of

working by the water. However, with this

opportunity comes the challenge of balancing

the numbers and living the dream. Before you

launch into this endeavor, it’s important to

consider the following three things.

Scarcity is one of the greatest obstacles to

marina ownership. Waterfront investment

opportunities are not plentiful in most areas,

and competition for existing sites can be high.

Potential owners may need to closely evaluate

whether upfront investment costs can coexist

with current investing strategies. Capitalization

ratios can be significantly lower than those of

more traditional real estate investment options.

Capital costs need to be fully understood

before you invest. These include line items

such as site upgrades, repair and maintenance

costs associated with maintaining the facility,

day-to-day operational costs, predicted income

from slip rates, and occupancy—with an eye

toward seasonal fluctuations in usage. For

safety reasons, maintenance must be kept up to

date without having a detrimental impact on the

use of the site. This includes covering

expenditures during the off-season when there

is less income.

Engineering assessments will ensure that the

marina you are considering is in a location that

will allow it to survive and thrive for years to

come. Marinas are highly impacted by severe

weather and the surrounding environment. A

detailed engineering report can let the potential

owner know how well the marina will stand the

test of time.

HUMAN RESOURCES

Navigating Nepotism: Stormy Waters Ahead

If you own or run a small business, you may be tempted to hire a friend or

family member—either because you actually need the help or because the

person needs a job.

While there are advantages to having a buddy on your staff, there are also

challenges. For starters, friends and family may assume privileges or try to take

advantage of their relationship with you. They may intentionally or

inadvertently undermine your authority or blur the boundary between personal

and professional realms.

Additionally, monetary discussions with friends and family members can be

extremely awkward, and performance reviews are often difficult. And even if

you try to avoid showing favoritism, other employees may perceive nepotism.

Of course, there are exceptions, and some family businesses thrive. But before

hiring a friend or family member into your business, be sure you are hiring for

the right reasons.

Additionally, be sure the person’s skill set, experience, and work ethic fit the

position. Always set performance expectations in advance and be frank and up

front about salary and bonuses. Lastly, go into the situation prepared to hold the

person to professional standards.

Ultimately, you should always hire the person who is best for the job. If that is a

friend or family member, be aware that the time may come when you have to

make a decision that they won’t like, and this may result in a damaged

relationship that lasts a lifetime.

Page 1

September 2018

How to Win Big in Today's Economy

The altered economic landscape

presents innovative and nimble

businesses with opportunities to

thrive.

Find out how by requesting my

free report “How to Win Big in

Today’s Economy” by emailing

me at

loans@sierracommercialcap.com

as specific interests, such as design,

advertising, IT, or nursing. If posting an

entry-level position, they can target

recent graduates using the “life

event” feature.

A/B testing is another adoptable

marketing technique, in which recruiters

post several versions of a job ad,

varying the wording, and then get back

statistics on which of those versions

worked best.

In addition to social media,

professionals should consider other

online channels. For business positions,

Quora is a good bet. If you’re recruiting

for software developers, look at Stack

Overflow and GitHub. New recruitment

sites like Glassdoor are also popular

with job seekers, especially younger

candidates.

Incorporating these innovative

strategies into recruitment plans can

enhance efforts and produce more

qualified candidates.

Page 2

The digital age offers tools and

platforms that can help HR

professionals identify and recruit top

talent in the same ways in which

marketers woo customers. Yet most

recruiters have not fully integrated

advanced tracking, analysis, and

measurement technologies into their

processes.

For example, while most recruiters post

job ads on social media, relatively few

track the responses or analyze their

results to see which ads and sites are

most effective. A simple tool called

UTM, used in conjunction with Google

Analytics, enables recruiters to see how

much traffic an ad generates. The

methodology is further enhanced with

Bitly, a tool that hides the UTM code

from users and provides data on how

often the link was followed.

Another marketing strategy that can aid

recruiters is “smart targeting,” offered

on sites such as Facebook and LinkedIn.

Recruiters can target certain

demographics and geolocations as well

Worth Reading Don’t Want to Work Today? Just

Do This

By Bryan Collins

Forbes

We all know what it’s like to feel

unmotivated and unproductive. But

instead of feeling guilty or frustrated,

the key is to learn how to manage

these low periods. Strategies include

treating procrastination as a reward,

scheduling your day the night before,

and keeping an eagle eye on your

energy levels. More:

https://tinyurl.com/sept2018-bizread1

Is Podcast Marketing Right for

Your Business?

By Kate Harrison

Forbes

While radio advertising in the U.S.

has flatlined, podcast advertising is

forecasted to double between now and

2021. Why? Just look at the numbers:

24% of Americans are regular podcast

listeners, and more than 40% of

Americans over 12 years old have

listened to one. This offers an

incredible opportunity for prospective

advertisers, many of whom are now

experimenting with creating podcasts.

More: https://tinyurl.com/sept2018-

bizread2

How to Ensure Your Small Business

Isn’t a Failure Statistic This Year

By Kathy Caprino

Forbes

Did you know that 20% of small

businesses fail in their first year, and

that approximately 50% fail in their

fifth year? It’s clear from the data

there are plenty of risks when it comes

to starting a business. But don’t let the

numbers deter you. There’s plenty

you can do to avoid failure and

actually thrive. More:

https://tinyurl.com/sept2018-bizread3

HOT BIZ TRENDS

Digital Recruiting Has Arrived: Are You Reaping the Benefits?

Everyone talks about building a

relationship with your customer. I think

you build one with your employees

first.

Angela Ahrendts

When employees are happy, they are

your very best ambassadors.

James Sinegal

The magic formula that successful

businesses have discovered is to treat

customers like guests and employees

like people.

Tom Peters

Treat employees like partners, and they

act like partners.

Fred Allen

You have to empower your employees

to make their own choices and trust that

they will make the right choices.

Dara Khosrowshahi

Employees who can’t trust their leader

to be vulnerable are not going to be

vulnerable and build trust with one

another.

Patrick Lencioni

WISDOM

Quotes on … Employees

Page 3

Quick Quiz Each month I’ll give you a new

question.

Just email me at

loans@sierracommercialcap.com or

call 916-273-6844 for the answer.

This month’s question:

Officinaphobia is the fear of what?

How would you describe the atmosphere

in your workplace? Are relations good?

The answer to this question affects every

aspect of your business. Use the links

below to improve employee relations and

enhance your company’s atmosphere.

Certain factors can destroy employee

relations. Avoid these scenarios:

https://tinyurl.com/employeerelations11

Take a lesson from social media to boost

your employee engagement:

https://tinyurl.com/employeerelations1

LINKS YOU CAN USE NOW

This Month—Employee Relations What do employees really want from

you? The answer may surprise you:

https://tinyurl.com/employeerelations2

Improving employee relations requires

strategic efforts. Here are nine practices

you might not be following:

https://tinyurl.com/employeerelations3

Poor relationships in the workplace can

hurt your bottom line. Learn how to

improve interactions:

https://tinyurl.com/employeerelations4

Investment in commercial real estate

provides property owners with a unique

opportunity to enrich their greater

community as well as their investment

portfolio. Many cities have areas that

could benefit from revitalization

projects. Investors can play an integral

role in the transformative change

movement and turn around these oft-

struggling regions. For those who might

consider such an endeavor, there are

three key questions to ponder.

What is a revitalization project? A

revitalization project requires a focus on

investment in a struggling or

underutilized area to bring about

positive change that will benefit the

greater community. As an investor in

these areas, you can find undervalued

properties that have the potential to

increase in value.

Investment in a revitalization project

does not provide a quick return,

particularly for those who come in

during the first phase. The return for

investors increases exponentially during

the mid-phases, as other investors take

notice of the positive impact the project

is having on the immediate area and

look to get in on the action.

More interest in an area generates

increased market value. By carefully

allocating investment capital, a prudent

investor can put the equity earned from

investment in phase one of the project

toward the purchase of an additional

property during a later phase.

How does participation in a

revitalization project benefit an

investor’s portfolio? This investment

provides investors an opportunity to

enrich their community as well as

themselves. Investors can find good

value and lower competition in these

struggling regions. As the community

improves, the profits that the building

generates will also increase. This

process can be expedited by

repurposing the building for multiple

uses. The right mix of retail, office, and

residential space can accelerate

community growth by providing

additional opportunities for

employment, market stability, and

consumer confidence.

Another benefit involves utilizing the

equity from properties obtained during

early phases. This can be used to either

fund later phases or purchase additional

properties to further accelerate project

growth. In turn, the investor is rewarded

with a balanced monthly cash flow,

increased reputation in the community

for future development projects, and a

solid portfolio.

What methods are used to measure

the positive impact of the

investment on the community?

Community improvement can be

tracked using several metrics,

including crime rate, unemployment,

and median wage. These statistics can

provide a measurable basis on which

to quantify the impact your

investment is making in the area.

Another method used to measure the

impact of your investment within the

community is to follow market trends

in the surrounding areas. As the

stability of the phase-one community

continues to increase, adjacent

properties will become more

appealing to new investors who may

not have the capital to invest in the

immediate project area.

Furthermore, municipal investment in

the supporting infrastructure is

another key indicator of the success

of your investment within the

community. It is important to work

with municipal figures throughout the

project. By showing key decision-

makers quantifiable statistical

evidence, you can reduce the time

and money required to clear up any

metaphorical roadblocks to project

growth.

REAL ESTATE

Giving Back Can Mean More Than a Strong Balance Sheet

This newsletter and any information

contained herein are intended for

general informational purposes only and

should not be construed as legal,

financial or medical advice. The

publisher takes great efforts to ensure

the accuracy of information contained in

this newsletter. However, we will not be

responsible at any time for any errors or

omissions or any damages, howsoever

caused, that result from its use. Seek

competent professional advice and/or

legal counsel with respect to any matter

discussed or published in this

newsletter.

Page 4

Sierra Business Bulletin

Brought to you by: Sierra Commercial Capital

Inside This Month

• Navigating Nepotism:

Stormy Waters Ahead

• Three Things to

Consider before

Buying a Marina

• Digital Recruiting Has

Arrived: Are You

Reaping the Benefits?

• Giving Back Can

Mean More Than a

Strong Balance Sheet

About News You Can Use

All rights reserved. The publisher and Ready to Go Newsletters make every effort to ensure the accuracy

of information contained in this newsletter. However, we will not be responsible for errors or omissions or any damages, howsoever caused, that result from its use. If you would like to publish your own

newsletter, please contact Ready to Go Newsletters at www.ReadyToGoNewsletters.com.

Sierra Business Bulletin is brought to you free by: Marty Sharp, Commercial Loan Broker Sierra Commercial Capital 3257 Folsom Blvd. null Sacramento, CA 95816 916-273-6844 loans@sierracommercialcap.com www.sierracommercialcap.com www.cabizloans.com License # CFLL 60DBO69962

FORECASTING

Want a Strong Q4? Pay Attention to These Biz Trends

Fueled by technology, business is changing more rapidly than ever before.

Entrepreneurs should be aware of key trends and predictions that will affect small

businesses for the rest of this year and into 2019.

Cybersecurity: Small businesses have become prime targets for ransomware and

attacks on mobile banking and card transactions. As cashless payments continue to

grow, mobile wallets like Apple Pay, Samsung Pay, and Google Pay are seeing greater

adoption, as are various app, browser, and person-to-person payment platforms.

Marketing: More and more, consumers are seeking customized content and offerings.

Advances in technology, such as individualized email messaging, allow small business

to provide the personalization their customers desire.

Social: Social media advertising has become more competitive and more expensive.

SMEs can benefit by using apps to link single posts to multiple sites. This will

streamline their postings to reduce time spent on social media marketing. Partnering

with micro-influencers—those with under 100K followers—has also proven beneficial

for SMEs.

Gen Z: This generation is beginning to make its presence known in the consumer and

workforce spaces. Gen Zers are independent and tech-savvy. Personalization is key to

attracting the attention of this cohort.

Finance: The economy is doing well, but uncertainty around tariffs and the threat of a

trade war loom large. Also, look for interest rates to tick up.

The workplace: More and more employers are turning to mobile workforces and

freelancers for noncore tasks. A large number of SMEs allow employees to work

remotely. This strategy can reduce payroll costs and increase the employee pool to

include nonlocal talent. For in-house employees, SMEs are offering wellness programs

(both physical and mental) and bolstering anti-harassment policies.

Putting strategies in place that address these key business trends will help you stay on

top of your game and ahead of your competitors, in 2018 and beyond.