The Truth, The Whole Truth - … · verb “to be”: is, was, are, ... tense where possible; describe what you’re going to ... stole a dead women’s identity?

By Howard Temple

“Polygraph”…Mention the word polygraph to most peopleand they will not know what you mean. Explain that it isthe technical word for the “lie detector’ and they immedi-ately think its prime use is: questioning suspicious charac-ters or criminals. While it is indeed a valuable tool in Lawenforcement, FBI, CIA or military investigations, it has a farwider utility in today’s society and economy.

Lying is becoming epidemic in this country. Almost a quar-ter of our college students, and even some at our nation’s honoredmilitary academies, have submitted term papers as their own thatthey actually copied from the internet. Respected historians haveadmitted to plagiarizing other scholars’ work, and journalists fromorganizations as prestigious as The New York Times have beenexposed for fabricating news reports. New York’s governor, EliotSpitzer, was linked to a prostitution ring and could face felonycharges. As for Wall Street and Washington, hardly a day goes bywithout someone being exposed as a liar.

How do I really know who I am hiring? Even in large enterprises,human resources departments often outsource this task, but it isexpensive and time consuming. What has been your experience inchecking references? Has anyone ever given you a negative report?Probably not, because in today’s litigious society no one is going torisk being sued for defamation of character! The sad truth is that

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April 2008

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Bankers’ BoxState of Israel Bonds . . . . . . . . . . . . . . . . . . . . 11

Biz Wiz9 Keys to Powerful Copy . . . . . . . . . . . . . . . . . . .3Anterior Hip Replacements Get Patients Back

On Their Feet In Record Time . . . . . . . . . . . .12How To Build A Marketing Machine . . . . . . . . 13Connecting The Brand With The Customer . . .13Managing A Business Move . . . . . . . . . . . . . . .14The CEO Report Card . . . . . . . . . . . . . . . . . . . .15

Business BonusLunch Bunch Munch . . . . . . . . . . . . . . . . . . . . . 6

Business BookshelfWork Like You’re Showing Off . . . . . . . . . . . . 24

Charity AngelsFighting For Life And Against Diabetes . . . . . . . 5

Entrepreneurial EdgeSpice Up Your Kitchen...No Cooking Required . 8Catering To The Customer . . . . . . . . . . . . . . . . . 9

Location3Philadelphia Property Opportunities ‘08:

Stable Economy or “Doom & Gloom”? . . . . 16Schuylkill Banks: An Investment in Fun . . . . . .17Anatomy of a Like-Kind Exchange . . . . . . . . . .18CREW Newsflash: Philly Is Hot! . . . . . . . . . . . . . .19Development in Philadelphia . . . . . . . . . . . . . 20Repairing Credit . . . . . . . . . . . . . . . . . . . . . . . .21

The CPA CornerKiddie Tax: Filing For ‘07 & Changes For ‘08 . .9Compensation Planning to Attract &

Retain Key Employees . . . . . . . . . . . . . . . . . .10

The Human FactorFinessing the Interview . . . . . . . . . . . . . . . . . . .22Am I Nuts or What? . . . . . . . . . . . . . . . . . . . . . 23Sell Yourself...Without Triggering Their

‘Salesperson’ Radar’ . . . . . . . . . . . . . . . . . . .25

The Law and YouThe Ghost In The Deal . . . . . . . . . . . . . . . . . . . 6

Windows To WallStreet®The Problem Is Between Your Ears . . . . . . . . . . . 7

2 Business World Times

Charlotte B. GivenFounder & Publisher

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Howard TempleFeature Author

John SteeleReal Estate Editor

Sean B. Given Marketing

Jennifer R. NullArt Director

ColumnistsSharon Altman

Kerry Given, Ph.D.Gail Madison

Anna Sachs, CPA, CDFA™Thomas Wolpert, Esq.

ContributersJackie Borski

Marc BrownsteinFrank Felsburg

Lyn FisherChris FreindTom Grau

David M. Gorenberg, Esq.Dava Guerin

Frank HaarlanderKristina C.S. Harshany

Michael LadensonMike LiebermanSteve Martino

Bruce P. MurrayWade RobertsDebra Smith

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greetings from

Dear Readers,

As we all move into 2008 with our businesses and life goals,BusinessWorldTimes™ is committed to presenting you with qualityinformation to assist you on your business journey. I want to improveon the information that is available to you. The mainstream mediaprimarily paints with the one color of “gloom and doom”. The glassis always presented as half empty. We at BusinessWorldTimes™ arepositively focused on the potential for your business. Instead of“doom and gloom”, we want to emphasize the possibilities forgrowth.

At one time the journalist considered it his job to objectively reportthe facts and studiously avoided interpreting those facts – that wasleft for the editorial page. That is no longer true. The journalist’s per-sonal politics are often only too obvious in the print and televisionnews programs today. I challenge you to think critically and do yourown research; don’t allow the media to tell you what you believe.The recent drumbeat of recession talk is a case in point.Unemployment is near historic lows, but you wouldn’t know thatfrom the national news; I am not ignoring the seriousness of some ofthe economic problems facing our country, but we will not grow and prosper with whining andnegative thinking.

For this issue, we have chosen many articles highlighting the commercial growth of the greaterPhiladelphia area. Philadelphia is the 4th fastest growing city in the United States. There are posi-tive and negative ideas presented about the economy and its influence on the real estate market.Be sure to check out the “1031 Exchange” article and understand the possibilities for protectingyour business from capital gain taxes. If your business is ready to acquire another business toexpand or round out your product line, or you want to sell your business, be sure to read TomWolpert’s article in The Law and You section.

If you have an idea you want us to explore for you, email me at [email protected] or pose your question for our experts at: [email protected].

Enjoy this issue of BusinessWorldTimes™ and be sure to check out our advertisers to see howthey can be of service to your business.

Sincerely,

Charlotte B. GivenPublisher

Business World Times™

by Michael Ladenson

Writing good copy to advertise your product orservice is no big deal. Visuals and mailing lists aremuch more important. Don’t waste money or time onsomething that practically anybody can do.

Believe that? If so, I have some real estate youmight be interested in.

In fact, communicating what you do is one of themost important challenges you face in business.Without getting too pretentious, what is your business’soul? What are you offering to the world? If you makewatches, why should I actually buy and wear one?What about this timepiece makes it irreplaceable onmy wrist?

That’s what your words must convey. Writing copy is really telling a story, as much as

writing a movie, play or novel. You’re telling yourcompany’s story, and just as in those other media, youhave to keep your audience in your grip while youbuild to the desired effect. Here are some key ways todo that:

• Clarify – A good story clearly identifies the char-acters and makes it easy to follow them. Make sureyou lay the groundwork: who you are, what you do,and why we should care. Never let a reader finish yourpiece without knowing those things.

• Personalize – Your company is never “it” or“they.” It’s always “we.” People like to work with agroup of warm brains and bodies, like themselves…not a faceless organization. (I love the chance toinclude interesting personal stuff about the principalsin any company I’m writing about.

• Activate – Never say, “our watches are made toexact specifications.” Who makes them that way, thewatch fairy? It’s too passive. Always choose “wemake,” “our staff designs,” “our company does.” If peo-ple are going to trust you to outfit their wrists, theywant to know you’re a proactive concern that getsthings done.

• Back it up – Here’s a particular peeve of mine:empty superlatives. “Our matchless expertise”… “ourpeerless record”… These phrases mean nothing;they’re just a way of saying “we’re really, really good!”A single hard fact does more than a paragraph of

bragging: “physician-owned and operated”… “forty-five years of experience in the watch industry”… “ourproductions have won sixteen Barrymore awards andbeen acclaimed in such national publications as theNew York Times and Wall Street Journal.”

• Cut to the bone – If there’s a single word or sen-tence or paragraph you can cut, do it. (Keep a specialscissors in your toolbox for adjectives.) The shorterany piece of writing is, the better.

• Power your words – Always look for ways to kickyour words up in power, especially verbs. Don’t justchange something, transform it. Don’t fit that watch tomy wrist, customize it. And weed out forms of theverb “to be”: is, was, are, etc. These are the least pow-erful verbs you can use. Instead, look for action verbs:create, enable, achieve, manage, educate. Find poweradjectives (the only kind worth including): “hands-on”management, “white-glove” service. Avoid the pasttense where possible; describe what you’re going todo for your customer’s future. The idea: to show yourbuyer the kind of energy and ambition you’ll bring tothe project.

Now, every type of writing has its specific rules.The next three keys apply to advertising copy in anymedium:

• Always feature a unique selling proposition (USP).“M-and-m’s melt in your mouth, not in your hand.”That’s why you should buy our candy – it’s somethingno one else can say.

• Always include a compelling offer. “Call now andreceive our free booklet on watch care.” “Subscribenow and get one production free.” “Buy online andreceive a 20% internet discount.”

• Always end with a call to action. You want yourcustomers to call or click or drop something in themail. Don’t trust them to do it tomorrow or nextweek. They’ll forget. Get them to do it now.

A website or brochure or mailing that doesn’t makeuse of these tips is a waste of money. Your money. Butput these ideas to work for you, and you’ll turn moneywasters into razor-sharp sales tools. –BWT

Michael Ladenson is a freelance copywriter inPhiladelphia. He can be reached at 267-738-6997 [email protected].

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when you hire someone, youare taking him or her at facevalue and taking a big risk.Those risks include the possibil-ities of embezzlement, theft,loss of competitive information,drug sale and use on your busi-ness premises, a history of crim-inal activities, or fraudulentimmigration documents. Any ofwhich could result in large lia-bilities for your business.

To protect company assetsorganizations routinely screenjob applicants with a battery oftests, including the use of apolygraph.

It may be prudent to considerthe type of information thatmight be revealed in a poly-graph test. Would you want any-one of these applicants in yourorganization?

• An illegal immigrant whostole a dead women’s identity?

• A store manager who wasstealing in excess of $100,000in product and was responsiblefor the loss of a deposit?

• A man who robbed andmurdered a restaurateur?

• A security guard who wasinvolved in a major jewelry heistand who also stole large sumsof money?

Given the above referencedcases I think any businessper-son would be hard pressed to

hire any of these individuals andyet it happens and continues tohappen everyday. If not for apolygraph examination, howwould you really know who youare hiring?

A polygraph could be called atruth detector because its pur-pose, quite often, is not todetect lies but to verify the truth.When administered by a certi-fied polygraph examiner, sub-jects can be made to feel atease, engage in casual conver-sation, and calmly elicit all theneeded information. Informationgathered using the polygraphtechnique has been shown to beover 98% accurate, based onover forty years of data. For allof these reasons, businesses ofmany types, big and small, havebegun adding a polygraph testto routine employee screeningprocedures. The modern poly-graph examination is one of thebest tools you can use as part ofthe process in the search fornew employees who can betrusted to help you build yourbusiness. –BWT

Howard Temple, AccreditedPolygraph Service, LLC. can becontacted at 215-953-5100 oremailed [email protected].

CoverStory: Truth (cont. from pg. 1)

April 2008 5

by Chris Freind

Christine Grosse is a 30-year-old Drexel Hillwoman whose body, and life, has been rav-aged by diabetes. The disease has left hernearly blind in one eye and she has a sugarcount that often soars over 600 (150 is high).As a result, she is well known in EmergencyRooms from Temple to Shore Memorial.

But that's only the beginning. Her conditionhas deteriorated to the point where she nowhas a pressing need for a new kidney—-not aneasy task.

One of the consequences of diabetes is thatthe body's organs, and the vital functions theyperform, become so overly stressed that theyoften shut down entirely. This in turn createsa negative domino effect, further progressingthe adverse effects to the body, and puts theperson's life in jeopardy.

What is Diabetes?Christine was initial diagnosed by her

mother, who had noticed a number of telltalesymptoms, including an increased appetite(yet the result was weight loss), increasedthirst, frequent urination, and mood swings.While initially thought to be the effects ofpuberty, those symptoms were later discov-ered to be Type 1 diabetes. “In the beginning,my treatment consisted of insulin injectionstwice a day; blood sugar level (tests) fourtimes a day and a strict diet, consisting of fourmeals a day, at specific times and excludedfoods containing high amounts of sugar, andfat,” Grosso recounted. “Basically, I couldn’teat any junk food commonly eaten byteenagers. I would also have to eat at inop-portune times if my blood sugar was low, andI would not eat with everyone else if my bloodsugar was elevated,” she added. At the youngage of thirteen she realized that her life wouldnever be the same.

Type 1 diabetes results from the lack ofinsulin production by the pancreas. Sinceinsulin is a hormone required by all cells, adeficiency results in the depletion of energystores. This leads to significant weight lossand fatigue, and, left uncorrected soon leadsto metabolic imbalance (ketoacidosis), requir-ing hospitalization. The longer-term effectsare much more severe – damage to variousorgans and body systems, notably the kidneys,the eyes, the nervous system and the heart.Christine explained, “...in my case, I am dis-abled, unable to work and require assistanceto manage my condition. The significant phys-ical and emotional support from by parentsallows me to cope with my condition. Most ofall I rely on my spiritual faith and trust inGod.”

The need for a kidneyChristine's condition has steadily deteriorat-

ed over the last seventeen years. Whereas inhigh school she was able to involve herself innumerous activities, her lifestyle has beendrastically hampered due to the toll her bodyhas paid. Her body functions have taken atremendous blow, with the kidneys taking thebiggest hit. When the tiny blood vessels inthe kidneys become damaged by diabetes, thefiltering units of the kidney are less able to fil-ter unwanted substances from the blood. Withtime, as the kidneys continue to fail, thepatient will require a kidney transplant.

After an exhausting process, Christine hasqualified to be a kidney recipient. But that isjust the beginning. If a suitable donor is notfound quickly, she will be forced to begin dial-ysis – never a sustainable long-term solution.“My transplant time line is as soon as possible

since I am being evalu-ated for dialysis. If a livekidney donor is notfound, I will have to waituntil a kidney becomesavailable by an organdonor upon his or herdeaths. This could take 1to 6 years.”

Finding a kidneydonor is a very personalprocess. “In my case, Ibegan as soon as I wasinformed that I needed akidney transplant. Thiswas accomplished by composing a one pageGift of Life letter in which I described myselfand asked if anyone would be interested inbeing tested as a compatible donor. I circulat-ed it to friends, churches, schools, businesses,and newspapers. For me, a donor profilewould include someone between the ages of21 to 60 years of age, in good health, withblood types A or O, and without a history ofcancer, diabetes or high blood pressure.” If thepotential donor is either rejected by the center

or by the recipient, the process starts all over. Through it all, Christine's attitude and drive

have kept her spirits high. “My faith hashelped me to deal with most of my medicalproblems, by trying to find positive reasons formy condition.”Wanting to help others, “I have begun tocounsel young diabetics, and this helps me aswell as them. In searching for a live donor, Ihave become reacquainted with old friends,and met complete strangers who are selflessenough to offer a part of them to help me. Itis so overwhelming to meet these amazingpeople. My illness has also brought me somuch closer to my parents. It is an honor tohave them as parents.”

Christine's story of courage, determinationand heartwarming attitude almost makes oneforget how perilous her situation has become.She displays an uncanny ability to remaincalm, and her selflessness knows no bounds.

–BWT

Chris Freind is a freelance writer who alsodirects a crisis management corporation. He canbe reached at [email protected].

CharityAngels

Fighting For Life And Against Diabetes

Christine Grosse


TheLawAndYou

Montgomery CountySula’s 347 at The Marriot, in West

Conshhoken. Sula’s 347 has great buffets every-day that include an omelet chef and waffle grillwith all the toppings. Beautiful fresh fruits andjuices. Assorted breakfast meats, muffins andbreads. Brunch served 6:30am to 11:30amMonday through Friday. With private boothsand large tables available for a power breakfastmeetings.

Rating:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Bucks CountyPat’s Colonial Kitchen located at 127 South

State Street at the Whitehall Building in charm-ing Newtown. Great for the early morningmeetings with breakfast served anytime, day ornight. The grill is always hot, meeting time isanytime, and so is breakfast. YUM YUM YUM!Open from 6:00am to 1:45am, 7 days a week.

Rating:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Delaware CountyNudy’s Cafe, 292 East Conestoga Road,

Wayne, PA. My favorites include banana walnutFrench toast and the delicious pumpkin spicepancakes. You can have eggs just about anywayyou chose but don’t miss the fabulous omelet’s.Friendly great service, this café is really popularso don’t be surprised if there may be a wait.You can start your meetings at the picnic tablesin the front. Just remember it’s well worth it!

Rating:

Philadelphia CountyCafé Estelle, 444 North 4th Street. In the

neighborhood of Spring Garden and NorthernLiberties the new Café is open Monday throughFriday, 7 am to 4 pm, Saturday and Sundays, 9am to 4 pm. Plenty of parking! They are locatedon the ground floor of the 444 Lofts. This café’smenu reflects the creativity of the owners.Fresh, tasty, and warm with the most mouthwatering menu, good luck making a choice!Not to mention the coffee bar and fab espressomachine. Just about everything is created inhouse from scratch. Don’t miss the in-housesmoked grilled turkey breast it was divine. Youcan’t make a mistake at Café Estelle, everythingthey have on the menu is sensational. They alsohave big comfy cushion seats and a beautifulcouch to lounge on and enjoy a large cup ofcoffee while you meet with your client. I amsure Estelle is smiling down at her namesake.

Rating: DON’T MISS!!!

Ratings are based in a ‘globe’ scale with fourglobes being the highest rating.

by Thomas Wolpert, Esq.

One of the most significant acts you will evertake as a business owner is to buy or sell a busi-ness. In order to buy or sell successfully, you needto understand the difference between formal legalrights, and practical negotiating leverage.Generally, the mind set of most business peopleruns along the following lines: Cliche 1: negotiat-ing leverage determines the basic economicstructure of the deal (how much money for thebusiness, how long to pay on the PromissoryNote, etc.) and that structure becomes reflectedon paper in legal agreements which the parties

are legally compelled to follow. In my estimation, that assumption is fre-quently inaccurate to the point of being just plain risky, in the same waythat driving a vehicle without insurance is just plain risky.

The short explanation of why the first italicized statement is risky iscaptured by the following rule-of-thumb, which is so common it is also acliché: Cliche 2: law suits are so time consuming and so expensive that nobusiness owner ever wants to start that process.

Comparing the first cliché (negotiating leverage and legal agreements),to the second (never litigate) reveals the problem. The only way a lawyercan ‘make’ anyone do anything – like follow a written agreement – is bystarting a lawsuit, which violates the second cliché. But this contradictionis rarely contemplated by business people buying and selling businesses –rather, they retain the belief that somehow, the law compels people to actin certain ways, even without a lawsuit - the “ghost” referred to in the titleof this article. Business deals are made without the deal-makers thinkingabout how it will be enforced, because they believe that putting it in writ-ing is self-enforcing – but nothing in a business deal is self-enforcing.Agreements are kept and followed because it is in the parties’ interest todo so, and lawsuits to compel performance are initiated only when all elsefails.

That’s where negotiating leverage comes in. Negotiating leverage is notonly a reflection of whether a particular buyer is more motivated to buy, orthe seller is more motivated to sell. Leverage also plays through the entiretransaction, from initial investigation of the business – the due diligenceperiod – through the entire time period when payments are being made,often through a Promissory Note calling for monthly payments over a peri-od of several years.

At the very beginning of a transaction, the prospective buyer shouldhave most of the negotiating leverage, and it ought to be used to obtain asclear a picture as possible of the real economic value and problems of thebusiness to be acquired. Negotiate a period of time (the due diligence peri-od) adequate to do an exacting investigation of the seller’s business.Examine bank statements, especially the primary business checkingaccounts for at least the previous twelve months, customer lists (if possi-ble, call a few customers), vendor and trade creditor accounts, businesstax returns, business borrowing (how much and when), etc. Even if thebusiness being purchased generates substantial cash revenue, the cash hasto be going somewhere – the buyer needs to find out where, how much,how often. At the beginning of a deal, the buyer has little invested but hisor her time and has a lot of options (there are always other businesses tobuy), so leverage is simply a matter of the buyer saying “I need to seethese documents, or there is no deal.” Whether a letter of intent is used, ora negotiated purchase agreement, a seller’s failure to provide complete

documents for review is almost always going to constitute a legally ade-quate and practically effective reason for a buyer to walk away from pur-chasing a business whose prospects are being exaggerated.

Once the business terms are negotiated, and adjusted to reflect any dis-coveries about the business the buyer may have made during the due dili-gence period, then leverage begins to shift. If the buyer is satisfied with thebusiness, the seller has to be satisfied that the buyer can make the initialpayment on the purchase price when the time comes to close the transac-tion, and can continue to operate the business effectively to continue mak-ing the payments which are typically required as part of the purchase price.This is where the seller has to show foresight – if the buyer cannot comeup with the initial payment, the transaction isn’t going to close at all. Inlarge mergers, companies often demand a ‘break-up’ fee if a proposedmerger fails to happen. A seller may well bargain for a type of break-up feeif the buyer fails to come up with the initial cash to close. However, atleast the seller has the business back, albeit that it probably has not beenrun as aggressively as it might have been.

But what if the buyer doesn’t run the business effectively after the dealcloses, or doesn’t make timely payments on the Note? The deal may alsocall for the seller to have access to business records, collect certain openaccounts receivable, or require other types of participation and disclosurefrom the buyer, but what if the buyer doesn’t cooperate? Does the sellerhave any negotiating leverage left? Legally, one thing the seller can do inPennsylvania is bargain for ‘confession of judgment’ clauses on thePromissory Note. Confession of Judgment clauses are powerful becausethey allow a judgment to be entered without a lawsuit, but the rulesregarding execution on a confessed judgment are complex. Another sub-stantial type of bargaining leverage a seller may retain is the right todemand mediation, or arbitration, or the right to file a preliminary injunc-tion with an award of attorney’s fees possible for the prevailing party, tocompel a meeting of the parties or disclosure of business activity. Theimportant issue for the seller is to think about enforcement and leverage tomake the agreed-upon events happen without a lawsuit, before the pur-chase agreement is signed and the deal closes. The seller should start byasking himself, ‘how realistic are my requirements of the buyer after he orshe gets the business – what are my steps if the buyer isn’t cooperative?’The idea is to have some ‘in-between’ types of remedies – more substan-tial than merely asking the buyer to cooperate and sending unpleasant cor-respondence if he or she does not, but less drastic and expensive thanengaging in full-scale litigation.

The same forethought is required of the buyer, if obtaining the seller’scooperation after the deal closes is important (e.g., if the seller has to stayon to consult and assist and work with customers, or if the seller hasagreed to a non-compete provision which is important). Since the buyerusually has continuing payment obligations under the Note, often simplenegotiation can permit the buyer to withhold payments (a setoff) if the sell-er is in substantial breach of his or her post-closing obligations.

As a sage once said of marriage – and I say of the purchase and sale ofa business – proceed in haste, repent at leisure. Optimism is a wonderfulbusiness characteristic which you can retain, without sacrificing the fore-sight necessary to protect yourself. Once the potential problems are identi-fied, usually skilled negotiation will bring about a business posture thatallows either party to bring pressure on the other to perform what wasalready agreed to, without the necessity of the ‘big, expensive lawsuit.’

–BWT

©2008 Law Offices of Thomas Wolpert, P.C. with locations in Royersfordand West Chester, Pennsylvania and can be contacted via email at:[email protected]. All rights reserved. This article is for informa-tional purposes only and not intended as legal advice. Speak with a licensedattorney about your own specific situation.

The Ghost in the Deal

April 2008 7

by Kerry W. Given, Ph.D.

Perhaps the most critical characteristicshared by successful investors and tradersis their psychological approach to the mar-ket. All forms of financial investments havefoundational knowledge that is essential tosuccess in that area. I am not suggestingthat you can simply think the right way andtrade stocks, commodities or any othermarket successfully. But you could be theworld’s foremost expert on the commoditiesmarket and still not be able to translate thatknowledge into monetary success.

Two emotions, fear and greed, can belethal to your financial success.Developing an unemotional, systematicapproach to your trading and invest-ments is crucial for success. Thefollowing ideas will help youcontrol your emotions andimprove your trading results.

Develop a Trading SystemMany people approach the

market in a very unsystem-atic fashion. One day theyare buying blue chip stocksthat pay dividends; the next day they areplaying tips from their nephews on biotech-nology start-ups. Develop a system thatsuits your personal style, risk tolerance,knowledge level, and time available todevote to this activity. Decide what marketyou will trade and exactly how you willtrade. Simply saying I will buy and sellstocks is not a trading system. Write downyour rules. For example, for a stockinvestor, what criteria will stocks meet foryour consideration? At what price will youbuy? Will you short stocks? Where will youset your stop loss price? How much will youinvest in any single position? How muchwill you diversify among industry sectors?Will you rotate in and out of sectors as theyfall out of favor with the markets? Whereverpossible, back test your rules and ensureyour system has a reasonable expectationof profitability.

Have a Written Plan for Every TradeBefore you buy that stock or option

spread or other investment, you must makesome critical decisions. Write down youranswers to the following questions: Why do

I think this is a good idea? At what pricewill I admit my idea is not working andclose the trade? If appropriate for this trade,at what price will I make some adjustmentsto the position? At what price will I take myprofits? The answers to these questions andothers constitute your trading plan. Be sureyou have a plan before you establish thetrade.

Follow Your PlanThis may be the hardest aspect of trading

you must master. Once you have your plan,you must have the discipline to follow theplan unemotionally. Don’t allow yourself torationalize how the stock is going torebound or allow your ego to refuse toadmit the mistake. When the stock pricedips below your stop loss price, close theposition.

Don’t hope. Don’t rationalize. Followyour plan.

Evaluate Your ResultsDevelop a routine of reviewing your trad-

ing results periodically. When I review mytrades each month, I make an importantdistinction between my “losing trades” and

my “bad trades”. Bad trades result when Ibreak my own rules for entering the tradeor lack the discipline to follow the plan.Losing trades are those where I followed allof my rules, but the trade just didn’t workout as planned. These losses are simply a“cost of doing business”. It is critical to treatyour investing as a business, not a hobby. Inany business, there are necessary expensesto keep the business open. Trading lossesare an expected, necessary part of anyinvestment activity. Developing a tradingsystem and then following the individualtrade plans ensure that your profitabletrades will outweigh your losses.

This Isn’t GamblingA common misperception holds thatinvesting is akin to gambling. In fact,

when you closely analyze the actualtrades of many investors, they areindeed gamblers. They are follow-

ing tips and hunches, invest-ing large amounts on expect-ed turnarounds, anticipatingmergers, betting on start-ups, and so on. But considerthe business of gambling –

not the gambler, but the casino. The casinoestablishes a game where the casino holdsa statistical edge; depending on the game,that edge may be rather small, of the orderof 1-2%. The casino owner knows that hemay have a big winner today at one of theblackjack tables, but that doesn’t concernhim because he knows he has an edge.When averaged over all of the differentplayers and games, and over the long term,the casino will come out ahead.

When you work hard to develop theknowledge of the market you are trading,develop a trading system, have a writtenplan for every trade, follow your plan withgreat discipline, and learn from your mis-takes, you have positioned yourself as thecasino owner, not one of the customers.

–BWT

This article is presented for educationalpurposes only and does not constitute invest-ment advice. Consult your financial profes-sional before making any investment.Kerry Given is the Managing Director ofParkwood Capital, LLC and may be contactedat [email protected]

The Problem Is Between Your Ears!


Three years and two dreams ago, Paul Smith and VladimirYurovskiy bought a machine to make bevel edge to customize lam-inate and solid surface countertops. Located in Huntingdon Valley,Pennsylvania, BE & M’s offices house a showroom and manufac-turing facility available for customers Monday through Friday andby appointment on weekends and evenings.

Several months after they began operations, Paul observed thatthere was a need in the marketplace for a countertop manufactureras well. Vladimir’s extensive experience working with laminateand solid surface products came in handy and the countertop divi-sion opened. They soon expanded their product line to includegranite and manufactured stone. Providing the finished product ontime and within budget became their calling card and has led toincreased business.

Soon after, BE & M began offering MidContinent Cabinetry andthey have never looked back. Today the two partners and theirstaff work with homeowners, contractors and property managers todesign dream kitchens and bathrooms. Their showroom allowsthe customer to choose floor tiles, sinks, facets and appliances. BE& M will customize the cabinets, counters, closet organizers andfurniture for any room.

Vladimir continues to oversee the manufacturing and installationwhile Paul sells and manages the finances. The growth of BE & Mcontinues to be on a fast upward plane.

Explaining their steady growth, partner Paul Smith says, “Thekeys are our knowledge of the industry, superior customer service,honesty and the high quality of our craftsmanship and products.”

Ask Paul and Vladimir to be creative…and “spice up your

kitchen…no cooking required!”Visit Bevel Edge and More, L.L.C at 2727 Philmont Avenue, Unit

305, Huntingdon Valley, PA 19006; T: 215-947-9960. –BWT

EntrepreneurialEdge

Spice up your kitchen…no cooking required!

Reach 60,000 readers!For more advertising information, call: 610-940-6869

by Anna J. Sachs, CPA

Many taxpayers may be familiar with the “KiddieTax” but may not know much about it, or may not befamiliar with the changes that are in effect for taxyears beginning after May 25, 2007. (For most calen-dar year taxpayers that means the changes wereeffective January 1, 2008).

What is the Kiddie Tax?The kiddie tax applies to children under age 18

that have investment income of more than $1,700.Investment income is calculated by taking totalincome less earned income. Earned income includeswages, salaries, professional fees, and otheramounts received as compensation for personal

services rendered. If the child under age 18 has investment income inexcess of $1,700, that income is taxed at the parent’s marginal tax rate(unless the child’s rate is higher). For purposes of the kiddie tax, the sourceof the income producing property is irrelevant.

In 2007, for children under 18 with unearned income only, the taxabilityof the unearned income breaks down as follows:

Income under $850 is not taxable. Income from $851-$1,700 is taxed atthe child’s rate. Income over $1,700 is taxed at the parent’s marginal taxrate. (unless the child’s rate is higher)

There is an $850 standard deduction; certain children may have item-ized deductions exceeding $850. For children with both earned andunearned income, a formula applies to determine the tax rates on eachtype of income depending upon the amounts of earned and unearned

income, and whether the child will use standard or itemized deductions.The end result is usually a blend of a portion of the income taxed at eachthe child and parent’s rates.

Two manners exist in which the kiddie tax can be calculated and report-ed. The child can file his or her own return and attach form 8615. Form8615 is titled Tax for Children under age 18 with Investment Income of Morethan $1,700. Form 8615 computes the child’s tax based upon the taxableincome of the parents. For families with more than one child subject to thetax, the investment income of all children is combined with the parents’ todetermine the applicable tax rate. The second option is for the parents toreport the child’s income on their tax return using Form 8814. Form 8814 istitled Parent’s Election to Report Child’s Interest and Dividends. This form canbe used if the child’s only income is from interest, dividends, and capitalgain distributions, and the child’s gross income for the year is under$8,500. Additionally, there cannot be any estimated payments applied to2007 under the child’s name and social security number.

Some advantages to electing to use Form 8814 include the need not tohave to file a separate return for the child, and an increase in the parent’sinvestment income, which may allow for a greater investment interestdeduction. However there are disadvantages to consider as well. Forexample, by using Form 8814 any deductions that the child would be enti-tled to take on his or her return are lost. Additionally, the increase to theparent’s adjusted gross income (AGI) may reduce or eliminate credits ordeductions based upon the AGI such as medical expenses, itemized deduc-tions, child tax credit, education tax credit, and personal exemptions.

For 2007, the kiddie tax will apply if the child was under age 18 on

April 2008 9

by Frank Felsburg

Housed in a two-story, freestanding, historicalbuilding in the heart of Huntingdon Valley, The Mensand Boys Store is a destination location. Staffed witha diverse group of seasoned salespeople and ownedand operated by Bonnie Greisler, they do their bestto give their customers what they want.

Need to find something to wear for that specialoccasion? They’ll be glad to help. Celebrating a FirstHoly Communion, Bar Mitzvah, prom or wedding?

Start here. The Mens and Boys Store creates a family atmosphere thathelps guys celebrate milestones in their lives.

Their customers include lawyers, doctors, business owners, politi-cians, sports figures and everyday people. A specialty store open sevendays a week, the store clothes males from head to toe. They ship allover the country and go out of their way to satisfy their customers.They recently celebrated their 11th anniversary.

Greisler a single mother with two sons loves what she does. Anexpert marketer and a member of Eastern Montgomery CountyChamber of Commerce and Le Tip. She does charity work and likes togive back to the community that’s supported her over the years.

She speaks with passion about her industry not getting upset whenIBM said men were not wearing suits to work anymore. She musesabout how it’s gotten to where the world dictates the appropriatenessof dress. “Years ago,” she said, “you used to walk into certain restau-rants and they used to have jackets hanging up behind the counter soif a man walked in without a jacket they would put the jacket on theman. Now you can go to The Palm and eat in jeans.”

But, she emphasizes, the business is about the customer. “Trendshave changed. Fashion has changed. And I, in this business, havelearned to change with the fashion. And if my customers want jeans, Iwill give them jeans. If they want suits, I will give them suits. So Ihave, across the board, a very nice selection, in pretty much all cate-gories.” She later reiterates, “We’re here to cater to the customer thatwalks in the door.”

“Fashion comes from the music industry. It comes from movies,” shesays. She suggests that the current trend toward blue ties started withPresident Bush, saying “A lot of men are into blues, where in the past,they wore reds. There was a cycle of yellows in neckwear. We’re nowin a blue cycle.” She will be interested to see what this year’s upcom-ing presidential election reveals from a fashion standpoint. BarackObama is becoming known to not wear a tie on many occasions. AndHillary Clinton certainly won’t be wearing one.

Regardless of how the political winds shift, the store is versatile. TheMens and Boys Store carries all kinds of apparel, from boardshorts totuxedos. People travel from Scranton, Princeton, Allentown, the Jerseyshore and Delaware to buy their dress clothing here. And they keepcoming back. They define themselves as a “One-Stop Shop for Fine

Clothing and Sportswear Collections for Men and Boys from aroundthe World.”

So, guys, if you have a special event coming up and you’re not surewhat to wear, check them out. Or, if you’ve forgotten (or neverlearned) how to tie a tie, visit their website (www.themensandboys-store.com). It includes instructions on the four-in-hand knot, the halfWindsor knot, the Windsor knot and the bow tie. –BWT

Frank Felsburg teaches communication skills for Cogent Training &Consulting in Narberth, PA (www.cogenttraining.com). He can be reachedat 610-938-2616 or via email at [email protected].

EntrepreneurialEdge

Catering to the Customer

CPACorner

Kiddie Tax: Filing for ‘07 & Changes for ‘08

(cont. on page 10)

CPACorner: Kiddie Tax (cont. from pg. 9)

by Frank Haarlander, CPA

Employers often desire to attract and retain keyemployees by providing them with “golden hand-cuffs” incentives. While stock ownership in theemployer company may be an acceptable strategyif it is through an Employee Stock Option Plan(ESOP) and the owner is looking for an exit strate-gy, most employers do not want their employees tobecome minority owners. Thus, employers havelooked for alternative ways to financially rewardkey employees.

Before the enactment of The American JobsCreation Act of 2004 (P.L. 107-204) (AJCA) which

added Internal Revenue Code Section 409A, many employers offered itskey employees a nonqualified deferred compensation (NQDC) plan.Whereas qualified retirement plans must be offered to all employees ona non-discriminatory basis, NQDC plans could be offered to a selectgroup of employees. For those key employees who remained in theemploy of the company as per the NQDC plan requirements, they wouldreceive a supplemental retirement benefit. Many times these plans wereunfunded, i.e., there were no funds set aside and the employer wasmerely making a promise to pay a future benefit. These plans werestructured so that the key employee would pay income taxes uponreceipt of the payment, supposedly when the employee was in a lowerincome tax bracket. This future benefit was subject to the creditors ofthe employer. High profile business failures, such as Enron, clearly illus-trated the risk to participants in a traditional NQDC arrangement.

The AJCA resulted in dramatic and fundamental changes that imposedrestrictions on funding, distributions and elections to participate in aNQDC plan. While the purpose of this article is not to address thechanges required by the AJCA and subsequent IRS announcements, it isnecessary to understand that this law is a major impetus for employersto seek alternative ways to compensate key employees.

While an employer can always increase the compensation of a keyemployee to retain her/him (him), employers are generally loathed toincrease an employee’s base pay. Thus, many employers resort to pro-viding the key employee with an annual bonus. While bonuses areappreciated by the key employee, the bonuses are immediate taxablecompensation to the employee and do not satisfy the employer’s objec-tive of retaining the employee (at least until the bonus is paid). Theemployer is also out-of-pocket for the cash bonus paid, i.e., there is nocost recovery.

Due to the fact that the annual bonus was taxable compensation tothe key employee, and thus less attractive because of income taxes paid,employers offered double-bonus plans. The second bonus payment wasto “reimburse” the employee for the taxes paid on the first bonus andoften for the taxes on the second bonus. In essence, the company ismaking a compensation payment to the key executive that is “grossed-up” so that the net amount received after taxes is the target compensa-tion. These double-bonus plans are very expensive for the employer, donot retain the employee beyond the current bonus payment, and againprovide no cost recovery to the employer.

Realizing the dilemma faced by employers, the financial marketsoffered a leveraged bonus plan (LBP) product. With a LBP, the employerprovides the key employee with a bonus and the employee purchases anindividually owned universal life insurance policy. The employee entersinto a non-recourse loan agreement with the financial institution to bor-row money to pay the income taxes due. With this type of loan, theemployee makes no personal guarantees or pledges any of his assets torepay the loan. The lender relies solely upon the insurance policy as col-lateral. The employer’s second bonus payment to the employee allowsthe employee to pay the loan interest on the employee loan. Although

this type of plan offers no cost recovery to the employer, it does signifi-cantly improve cash flows. With the LBP, the employer receives animmediate tax deduction for the bonus payments and since the employ-er’s second bonus payment is for the interest on the loan rather than forthe income taxes due as with the typical double bonus arrangement, theemployer’s cost is significantly decreased. Since the employee owns theinsurance policy, it is not subject to the general creditors of the employ-er. If the employee had purchased a life insurance contract using hisbonus, his affordable premium would be net of the income taxes paid.With the LBP, since the lender is loaning the key employee an amountequal to the income taxes paid, the employee’s premium payment isequal to the pre-tax bonus payment. The larger premium payment bene-fits the employee because of the tax deferred compounding of the poli-cy’s increased cash value. When the employee withdraws money fromthe policy’s cash value, he can take the withdrawals as policy loans tofund his retirement, college education of a child, medical emergency,etc., and these loan withdrawals are not subject to income tax. The LBPalso provides the employee with death benefit protection that is paid tothe employee’s beneficiaries income-tax free and may be an integral partof the employee’s estate plan.

While the above alternatives are fairly well-known, a technique ofusing a limited liability company (LLC) structure has the advantage thatit provides the employer with a full recovery of its cost. This alternativerequires the employer and key employee becoming owners of an LLC.Rather than providing the employee with a bonus each year, the employ-er contributes the “bonus money” to an LLC. The employee is alsorequired to make a nominal contribution to the LLC. After the LLC isfunded, it purchases two life insurance policies. The first policy is gener-ally a universal life policy with a minimal death benefit that accumulatesthe maximum cash value to fund the employee’s supplemental retire-ment benefit. The second policy is used to repay the employer for itsinvestment in the LLC plus a guaranteed rate of return. The employee isthe insured on both policies. By way of example, assume that the com-pany contributes $100,000 for five years and a portion of that money isused to purchase a policy on the key employee. The employee makes a$10,000 contribution to the LLC for five years and a portion of thatmoney is used to purchase the second life insurance policy. (Perhaps thedouble bonus plan is used to provide the funds needed by the executiveto make his contributions to the LLC). The employer can better retain thekey employee by promising to make the contributions to the LLC for aspecified number of years providing the employee remains in theemployer’s employ. The employer’s net book value is not materiallydecreased under this type of arrangement. And upon the employee’sdemise, the employer receives a death benefit to recover the full cost ofits LLC contributions plus the time value of money. Upon reaching retire-ment, the executive can make policy loan withdrawals from the policythat he will receive income-tax free to supplement his retirement. TheLLC provides certain asset protection benefits, and the key employee’sbeneficiaries will receive a death benefit free of income taxes should thekey employee pass away before his planned retirement. –BWT

Frank Haarlander, CPA, MBA, MS-Tax, CWPP™, CAPP™ is the presidentof Keystone Financial Solutions, P.C., a CPA and consulting firm located inExton, PA. He works with individuals and businesses to implementadvanced tax-planning, wealth preservation and asset protection strategies.Contact him at (610) 594-2601 or [email protected]. This article is pro-vided for general information only and should not be construed as taxadvice for any specific situation. Always consult your tax advisor for specifictax guidance. In compliance with tax standards prescribed by the U.S.Treasury, please be advised that any tax advice in this communication is notintended or written to be used, and cannot be used, by any person or entityfor the purpose of avoiding U.S. tax penalties that may be imposed on anytaxpayer.


CPACornerCompensation Planning To Attract & Retain Key Employees

January 1, 2008. The tax does not apply if both parents were deceasedas of December 31, 2007 or if the child files a joint return. For 2008, thekiddie tax will apply if the child is under age 19 on January 1, 2009 or afull-time student under age 24. However, the tax will not apply if thechild’s earned income exceeds half of their support for the year.(Scholarships will not count in the support test for this purpose.)

The increase in the age limitation was a part of the Small Businessand Work Opportunity Tax Act of 2007, passed in May 2007. One impactof this change is that for 2008, college age students will no longer beable to sell off appreciated investments in accounts in order to pay fortuition.

Parents may wish to consider setting up a Section 529 Plan to savefor college for their children, as the investments in a 529 Plan are notsubject to the kiddie tax. Another strategy to minimize the kiddie tax isto invest custodial accounts in tax deferred instruments to avoid creat-ing current income subject to the kiddie tax. At a minimum, parents thatsuspect their children will be subject to this tax should monitor the

income level in their children’s accounts carefully, so they are aware ofthe tax implications and can plan accordingly. Decisions about children’sinvestment accounts cannot be made without taking the entire familyfinancial situation into consideration, as some of these decisions couldalso impact eligibility for various loans or financial aid, as well as thefamily’s overall financial plans and goals.

Additional info on the kiddie tax can be found in IRS Publication 929Tax Rules for Children and Dependents, www.irs.gov, or your tax advi-sor. –BWT

Anna Sachs,CPA,CDFA™ is a Principal with Savran Benson LLP, BalaCynwyd, PA and can be contacted at [email protected]. Tax infor-mation for this article compiled in part from IRS Publication 929.This article is provided for general information only and should not be con-strued as tax advice for any specific situation. Specific rules and exceptionscan apply to the taxability of children’s income. Consult your tax advisor forspecific tax guidance.

April 2008 11

Bankers’Box


As baby boomers age, some are finding theneed to undergo hip or knee replacements inorder to regain quality of life. However, manyboomers are in the prime of their careers andtaking extended time away from work torecover from surgery can be a burden.Fortunately, due to demand and advances intechnology, new techniques allowing patients aquicker return to normal activities are becom-ing the norm for many procedures that couldonly have been done as open surgical proce-dures as recently as 10 years ago. Unlike gen-erations before them, this active group has

many options, one of them a new approach to total hip replace-ment.

Introduced to the region by Andrew Star, M.D., director of JointReplacement Surgery at The Human Motion Institute of AbingtonMemorial Hospital in Abington, PA, is a new technique for total hipreplacement surgery called the anterior approach. This approach tohip replacement surgery is allowing patients to resume normalactivities sooner than traditional hip replacement surgery. Withthis approach, the patient is lying on his or her side, and the sur-geon makes an incision in the front of the hip joint. The anteriorapproach allows the surgeon to replace the hip without detachingthe muscle from the pelvis or femur.

Most patients need only two to three days in the hospital, as

compared to three to four days for traditional hip replacement sur-gery. Return to normal activity with the anterior approach is two tosix weeks, far less than the six to 12 weeks needed for traditionalhip replacement surgery. With the anterior approach, manypatients can return to driving in just two weeks, as opposed to fiveweeks with traditional hip replacement surgery.

Why is there such a difference in return to normal activity? “Theanterior approach creates much less trauma to the muscle,” saidStar, “whereas in the traditional approach, muscles are cut from thebone. The incision size for the anterior approach is also muchsmaller – it’s four to five inches versus 10 to 12 for traditional hipreplacement surgery.”

Dr. Star has performed more than 40 anterior hip replacementsand is teaching the technique to other orthopaedic surgeons.

According to Dr. Star, “The ideal candidates for this surgery areactive patients who maintain a healthy weight.”

For more information, call The Human Motion Institute at (215)481-8969 or visit www.amh.org. Abington Memorial Hospital is anindependent, 570-bed, acute care teaching hospital with a medicalstaff of more than 900 physicians and 5,500 employees. These pro-fessionals provide medical care and health services to residents ofBucks, Montgomery and Philadelphia counties. A regional provider,Abington Memorial Hospital has the only Level II accredited traumacenter in Montgomery County and offers highly specialized servicesin cardiac care, cancer care, maternal child health and surgery.

–BWT

BizWiz

Anterior Hip ReplacementsGet Patients Back on Their Feet

in Record Time

Dr. Andrew Star, M.D

April 2008 13

by Mike Lieberman

The machine is one of the great mar-vels of the industrial age. The mostamazing ones feed raw materials in oneend and produce a final product out theother. It’s a bit like magic to the untrainedeye.

Wouldn’t it be great if there were amachine like that to help you with yourmarketing? You could feed in your rawmaterials -- like messages and suspects -- from your target market, and out wouldpop leads and sales. Actually, there issuch a contraption. We call it theMarketing Machine™.

To explain how the Marketing Machine™ works, let’s start at thebeginning with what we call the “Triple Play.” The Triple Play repre-sents the three primary ways your target market hears about you –advertising, public relations and referrals. The problem is, a lot of com-panies use the Triple Play, but then don’t do anything after a personhas heard about your company. It’s sort of like loading the raw materi-als into your machine and then failing to turn it on.

Here’s an example of what we mean:We once worked with a replacement window company that adver-

tised extensively in TV, radio and print. The ads generated tons ofphone calls. Unfortunately, the company only wanted to deal with peo-ple who were interested in immediately purchasing windows. If callersjust asked for a quote or for more information (about 75% of all callers)the company didn’t want to spend time dealing with them. In fact, thecompany didn’t even capture the prospects’ contact information for aprospect database. In essence, this company was throwing away 75%of its leads!

Your prospect database is a company asset. Treat it as such. Protectit, grow it, and nurture it. It will do you service for years to come if youhandle it accordingly.

Moving the potential customer from A to Z is a marketing exercise.What most marketers and almost all business owners don’t realize isthat the potential customer is in control of the process. Big ad agenciestell you that the more you advertise, the more likely it is that peoplewill buy, but it’s really just a wing and a prayer that your traditional

radio, print or TV ad will land in front of apotential customer at the same time thattheir “pain” becomes acute.

Because we never know when that painis going to be acute, it's imperative to keepregular, more personal conversations withall prospects so that you have mindsharewhen a decision to change is required. Alot of companies don’t do this. They startto work on their marketing, get a couple ofbig orders, and then say, “I don’t needmarketing.” That is the wrong approach.

Consider an architect client of ours.Let’s say he met with a potential clientabout an addition to her house. When the

prospect found out the cost would be $20,000, she backed off. Her painwasn’t acute enough yet to understand that an investment of $20,000is required for the addition she envisions.

As the family continued to live in the house, however, it becamemore and more cramped. All the while, the architect kept marketing tothe client on a regular basis through personal, rhythmic communica-tions. One day, the client’s aunt passes away and leaves her a niceinheritance. Suddenly, the client has the money for an addition – and issick and tired of her cramped living space – and is ready to return tothe architect. If the architect hadn’t been communicating regularly withthis client, he would have risked losing her to a competitor.

We’ll conclude by coming back to our replacement window installa-tion company. Today, instead of letting 75% of its prospects disappear,the company collects their information and adds it to a database.Throughout the year, the company communicates regularly with thislist, and consequently has more customers – customers who may haveotherwise forgotten about the company and given business to a com-petitor when they finally were ready to buy.

Think about it in dollars. If they just added one more order a dayfrom the prospect database at an average order per customer of$4,000, they would generate an extra $1.2 million in revenue.

Could you use an extra million? –BWT

Mike Lieberman ([email protected]) is president of Square2 Marketing. More info and free resources to help your business can befound at www.square2marketing.com.

by Marc Brownstein

Many companies struggle to wade through thecomplex waters of the marketing spectrum.Despite the array of marketing mediums at theirdisposal, they are still finding it difficult to reachtheir target audiences, and when they do, theyare often unsuccessful in gaining customer loy-alty.

The most common problem is that com-panies confuse branding and marketing withtraditional advertising. They are thinking of theirbrand as an image and not as the reality of whothey are. They are not giving their customers

anything to identify with.What these companies need to know is that a brand is the experi-

ence customers have when they walk in the door and the impressionproducts make on their lives. It is the promise organizations make andmust keep, and it is demonstrated in every customer interaction.Successful brands focus on delivering positive customer experiencesthat are reliable - just look at the global community the Starbuck’sempire has created.

To effectively brand any product or service, you must consider twodistinct yet equally important elements. First, advertisers must define aclear positioning and, second, they need to communicate that posi-tioning to their target audience. A brand should be what comes tomind when customers hear your name. When you think Volvo, youthink safety. Volvo is the company. Safety is the brand.

In order to define your positioning, you must first identify your tar-get audience and what they are looking for. You then need to uncover

what it is that you do differently and better than everyone else.Differentiation is vital to the success of any brand. In the end, yourbrand should have a distinct and recognizable identity that portrays aclear understanding of who your customers are.

Target is an excellent example of clearly defined positioning atwork. As consumers were growing frustrated with the quality of dis-count department store products, Target stepped in and revealed a lineof cheap, chic products and coined the term “Expect more, pay less.”By offering affordable products from top designers such as IsaacMizrahi and Liz Lange, Target created its own niche in the retail indus-try and has been able to attract and retain loyal customers.

Apple has climbed to the top by making products that are simple.They are not only simple in design but in productivity and use as well.When you plug one Apple product into another, they just work. Everyaspect of an Apple product owner’s experience is simple, and loyalcustomers rely on Apple to continue to provide easy-to-use, cutting-edge technology. Even more than 20 years after Apple released itsfamed 1984 ad, people are still producing spoofs of it to emphasizetheir own messaging, www.youtube.com/watch?v=6h3G-lMZxjo.

With a strong positioning in place, consumers will be watching toensure that you are living your brand in everything you do. It’s anextremely difficult task, but the most successful companies have mas-tered the art. It is more evident now than ever before that a strongbrand lives in the minds of consumers. The more memorable a brandyou have, the more likely you are to attract and retain loyal customers.

–BWT

Marc Brownstein is president of Brownstein Group, a Brand communi-cation’s company in Philadelphia and Seattle. He can be reached at:[email protected]

Connecting the Brand with the CustomerBizWiz

How To Build A Marketing Machine


By Debra Smith

In a study published by a leading relocation service, moving wasnamed as one of the most stressful events in the average person’s life.That study was based on moving individual households. Imagine thestress of moving an entire company.

As a business communications firm, we often work with clients inthe process of moving. Here are proven practices to make your moveas painless as possible.

Develop a PlanThe most important part of any large project is advance planning.

Moving is no different. Developing a plan and sticking to it will lessenwasted time and effort. A good, detailed plan will also save your com-pany money.

Before You Sign the Lease, Think About…Space: Take a good look at your space to determine if your current

furnishings and equipment, such as copiers and fax machines, will fit.Take detailed measurements or get a floor plan, if possible.

Utilities: Sure, the building is going to provide electricity, but willthere be enough outlets in the places you need them. If the outlets areinsufficient or are poorly located, you can negotiate with the landlordbefore signing the dotted line. If the landlord can’t make the adjust-ments, line up a good electrician who can make the corrections beforeyou get there.

Moving Requirements: Most building owners have specific rules andregulations for new companies moving in. They may want to minimizethe disruption to existing tenants by having you move after 5:00pm.They may require that you use freight elevators that may not be closeto your space. Keep this in mind when hiring your mover.

The Facilities Manager: This person is going to be your best friendfor a few months so meet him or her upfront to build a relationship.The Facilities Manager wields a lot of power and can either help yourmove go smoothly or throw speed bumps at every turn. You’ll needhim to provide access to the building, give you the grand tour, provideyou with important contact information and handle emergencies, espe-

cially on moving day. After You’ve Signed the LeaseYour Communications Equipment: Your business can’t run if your

voice and IT services aren’t functioning. With the right planning how-ever, it is possible to have a seamless transition. Most businesses havemultiple vendors for voice and data with different rules regardingchanging or terminating services. Make sure to contact all of yourproviders at least three months in advance. Using a communicationspartner that manages not only your phone system but your carrier andnetwork services is a way to save significant time and money. It canalso help ensure this transition is relatively unnoticed by your cus-tomers.

Hiring the Mover: Interview several companies and let them knowthey’re in competition. Find out their past experience and bring themto both your new and old space so they can clearly estimate theamount of time and manpower needed for the job. Getting some goodreferences couldn’t hurt.

Heavy Equipment: Computers, copiers and other sensitive equip-ment can’t be moved as easily as a file cabinet or coffeemaker. If youlease anything, check your lease agreement. Your warranty may bevoid if you damage anything during a move. The company you leasefrom may even provide moving services at a nominal fee.

Labeling: The next step, probably the most tedious, definitely impor-tant is labeling all your existing “equipment” for placement in the newspace. Make sure every box, desk, painting and pencil sharpener isclearly marked with its new destination. In your new space, make surethe office areas also clearly labeled. For example, “Office A” makes itsimple for movers when you’ve got a mahogany desk with the samelabel. The more thorough you are the less time it takes the movers.That saves on moving costs and the cost of downtime for your staff.

Congratulations! You are settled in your new space and the transi-tion was seamless all because you made a plan and stuck to it. –BWT

Debra Smith is the Vice President of HR and Finance at ExpertTechnology Associates and can be contacted at [email protected].

BizWiz

Managing a Business Move

April 2008 15

BizWiz

By Wade Roberts

Just like the fans of the localpro football team, when askedhow the coach or quarterback isexecuting, everyone has an opin-ion about how their CEO is per-forming. Unlike football followers,where their team experiences awin or a loss every week, theaccomplishments of a CEO can beconsiderably more objective andsubtle.

Even for a public company,where the daily movement of thestock price can provide an indica-tor of CEO performance, stockprice behavior can be misleading.In fact, as a consequence ofserved market behavior, a compa-ny’s stock price may trend up ordown in sharp contrast to theeffectiveness of the CEO. As thecurrent beneficiaries of highercommodity prices, CEOs of oil,natural resource, and specialtysteel companies have seen theirshare prices soar while thoseleading companies connected tothe North American residentialconstruction and mortgage mar-kets have experienced plummet-ing share prices. Does this reallyconvince us that CEOs in thecompanies blessed by cooperativemarkets are superior to thoseserving the hemorrhaging mar-kets? I think not.

With private companies, thereare even fewer and sometimesless reliable indicators of CEOperformance. Maybe those com-panies listed as preferred placesto work and having low employeeturnover while winning awardsfor their rapid growth or flashy,more technically advanced prod-ucts, deserve our adulation and inturn alert us to superior CEO per-formance. But, might these sameoutcomes be a consequence ofterrific technological break-throughs or finding yourself in asuddenly wonderful market suchas a meaningful telecom supplierat the turn of the century, whenthe market suddenly booms?

How does the CEO Report Cardlook? Is grading the CEO impor-tant?

In my experience as CEO,President and COO as well asmany years as a consultant work-ing for CEOs, the key roles of aCEO can be distilled into five: 1)Keeper of the Culture; 2)Leader/Selector of the People; 3)Chief Strategist; 4) StructuralArchitect and 5) UltimateFinancial Steward.

Let’s examine these vital rolesin more detail. Even though it canbe argued that each of these rolesare most critical, the truth is theimportance typically ebbs andflows depending on the chal-lenges facing the company at anymoment in time.

As the “Keeper of the Culture,”the CEO decides what the culturewill be and articulates what that

means. This articulation can bewritten or spoken (preferably bothand often expressed) but mostimportantly, will govern allactions. Fundamentally thismeans, “Walking the Talk”. Inthis vein, the CEO’s personalactions will always be consistentwith the stated culture. Further,those either uncomfortable withthe culture and/or unwilling toaccept it are encouraged to “moveon”. Also, preserving the culturerequires subordinating all “busi-ness decisions” to the importanceof maintaining the culture.

In functioning as the“Leader/Selector of the People”, anumber of styles or approacheshave proven effective over time.Little dispute exists that the bestleaders are empathetic, solidcommunicators who encouragecourageous conversations androbust dialogue, and lead byexample. However, in selectingpeople, especially the key individ-uals, there can be no debate thatsignificant CEO involvement iscritical. In the cooking vernacular,“If you are expected to prepare anexcellent meal, make sure youselect the ingredients and ensuretheir quality.” The selected indi-viduals don’t need to be clones ofthe CEO but they certainly need tobe well suited for the roles andtasks for which they are responsi-ble. Careful succession planningalso constitutes another impor-tant aspect of this role.

Frequently, many companyconstituents (Board, TopManagement, Customers,Suppliers, and Employees) play arole in crafting strategy. The“Chief Strategist” is necessarilythe CEO. This doesn’t mean thatonly the CEO decides. But recog-nize, the best execution of strate-gy occurs when the leadershipbelieves it to be a “winning strate-gy”. Without a meaningful role inarchitecting the strategy, thisbelief may be lacking in the CEO.Additionally the CEO must under-stand exceedingly well the marketspace in which the company par-ticipates and how to serve it. Thisawareness and knowledge willnecessarily cast the CEO as the“Head Rainmaker” from time totime.

Although the debate has ragedfor generations, the question stillexists today of which comes first -strategy or structure. Most impor-tantly, the two must fit together.Dramatic changes in one are like-ly to necessitate changes in theother. As the “StructuralArchitect,” the CEO must ulti-mately decide on an appropriatestructure and ensure an accept-able fit to the company’s strategy.

The likelihood that financialoutcomes will be acceptable isremote if the first four responsibil-ities are not handled effectively.Acting as the “Ultimate Financial

The CEO Report Card

(cont. on page 19)


Commercial Real Estate experts gather to dis-cuss the American economy’s troubles and itsimpact on the Philadelphia Commercial RealEstate market.

by Steve Martino

All you have to do is look at the ever chang-ing skyline in Philadelphia and you wouldassume that the Commercial Real Estate mar-ket in Philadelphia is thriving. New buildings

such as The Comcast Center, Cira Centre, Murano and SymphonyHouse, to name a few, have added to an all ready impressive sky-line. But industry experts speaking to a group of real estate profes-sionals at the Sheraton Philadelphia Center City painted a differentpicture.

The cost to build has increased significantly due to rising steeland energy costs. Union labor costs dramatically more than non-union labor and has an impact on construction deadlines becauseof “specialized construction skills”. Also, there is increased pres-sure, and rightfully so, to “Go Green” when constructing new build-ings. Put simply, the cost of building is out of control.

The credit crunch, driven in part by the home building sector andthe residential mortgage market has significantly increased the costof capital to fund new projects. This has put a squeeze on capital-ization rates so that some of these projects don’t even pass musteron the financial analysis. This will also impact the commercial realestate market because the cost of capital should drive down theprices of existing properties for sale.

In addition, there was a common concern by many at the confer-ence that Philadelphia’s business privilege tax and wage tax is pro-hibitive to business, something that needs to be addressed by thenew administration.

But there were some positive takeaways for those attending theconference. The most significant of these is the completion of theComcast Center. When the Comcast Center was first proposed,there was a lot of negative reaction surrounding how this projectwould impact the commercial property market. The addition of 1.2million square feet of commercial property on the market wouldsurely cannibalize tenants from other buildings. But that was notthe case. The Comcast Center is generally regarded as a positive,bringing new life to the Philadelphia commercial market by bring-ing in new tenants.

Take a look at the re-development of West Philadelphia aroundthe University of Pennsylvania campus by Brandywine Realty Trustand you’ll see a vibrant growing economy. University graduateswho years ago sought jobs in other cities (brain drain) are lookingat Philadelphia differently as a place to live and work.

A new trend in commercial real estate called mixed use develop-ment is taking shape in Philadelphia. Mixed use developmentincludes a combination of residential, office and retail space.Grasso Holdings will be breaking ground at 16th and Vine on a 46story mixed use development which should revitalize that area ofthe city. Dranoff Properties Inc. will be breaking ground at Broad &Fitzwater on apartments and multi-family units. The waterfrontdevelopment is getting closer to being a reality.

There are other positive indicators that the market is doing well.Since 1998, there are over 11,000 new housing units inPhiladelphia, over 150 new restaurants. Office vacancy rates are at7.6% while apartment vacancies are at 4%. Apartment rents areincreasing faster than inflation. And average lease lengths haveincreased to 7 years which indicates a confidence in the market.

Another reason to be optimistic is the new administration ofMayor Michel Nutter. Mayor Nutter has talked about the need toexpand the Convention Center and wants to take a look at the busi-ness privilege tax and its impact on the city’s economy. This admin-istration has shown a desire to get things done and is “pro-busi-ness”.

Although there will be considerable challenges in the year(s)ahead with regard to the American and local economies, there is abright future for the Philadelphia Commercial real estate market.

–BWT

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Philadelphia Property Opportunities 2008:

Stable Economy or“Doom & Gloom”?

April 2008 17

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by Dava Guerin

What was once a run down tract of industrial landis now a hot, new urban waterfront destination. Inaddition to more than 16,000 people who visitSchuylkill Banks each week, businesses, too, are dis-covering that the Banks’ popular kayak and river toursare helping to build morale and contributing to the bot-tom line. Their employees like it too!

As Joe Syrnick, president and CEO of the SchuylkillRiver Development Corporation (SRDC), the non-profitagency charged with the redevelopment of the lower

banks of the Schuylkill River, recalls, the first real discussions about revi-talizing the river took place thirty years ago. One of the city’s leading land-scape architects, John Collins, believed that the city could literally trans-form the under-utilized space into a viable urban, waterfront destination.His vision, along with the support of Philadelphia Mayors Rizzo, Green,Goode, Rendell and Street, and now Mayor Nutter, as well as city agencies,foundations, and the private sector, laid the groundwork for what wouldbecome, “A dramatic change in the way we think about the river,” accord-ing to Syrnick.

“When SRDC first began its master planning for the river nearly fiveyears ago, we knew we wanted to be more than just a trail,” he said. “Ourvision was to fully realize the potential of the eight miles from just belowthe Fairmount Water Works, all the way south to the Delaware River. If wecan create a space that improves the quality of life for people and busi-nesses, and give them an enjoyable, new way to experience the river, thenwe will have realized our dream.”

What Syrnick was pleased to discover, was that Schuylkill Banks wasnot only being utilized for walking, hiking, bicycling and running, but alsoby people who wanted to experience the river by boat or kayak. Two yearsago, Schuylkill Banks launched river tours, where people could experiencethe Schuylkill by boat, on a six-mile loop, learning about the waterway andits history through professionally narrated tours. To complement the boatprogram, kayak tours were added to the mix. Individuals or groups couldlearn the basics of kayaking from professional instructors, and then trytheir hand at paddling on the river from the launch site to the Waterworksand back.

“What we found was that many businesses were booking both the boat

and kayak tours for their employees, with the purpose of team buildingand giving them a little fun on the job,” Syrnick said. “We’ve been able tocustomize the experience to meet the company’s objectives and they allworked out very well.”

Jerry Sweeney, CEO of Brandywine Realty Trust, the developer of theCira Centre office complex, and chairman of Schuylkill River DevelopmentCorporation, said that the public programming and river and kayak tourshave been a real draw for businesses as well as individuals.

“Years ago, no one thought of the banks of the lower Schuylkill as anasset. It was a non-event,” Sweeney said. “We now have the ability to dosomething unique, and create a regional asset that people talk about. It’salso a place where people can create memories, a physical space that fos-ters an emotional attachment. What’s been very interesting to me, as abusiness owner, is that companies are also booking the boats and kayaksto give their employees a sort of Outward Bound experience. That hasbeen one of the unexpected benefits of developing the Banks,” he added.

Sweeney said SRDC has received support from the City of Philadelphia,the Fairmount Park Commission, Bartram’s Gardens, and numerous uni-versities, corporations and foundations, to complete the $62 million river-front development project. “Many business leaders, especially those of uswho have development projects along the lower banks of the river, see amultiplier effect,” added Sweeney. “The Cira Centre has had a huge, posi-tive impact on the area, and is a catalyst for residential river development.The benefit to anyone who lives there is having Schuylkill Banks right intheir own back yards.”

For more info, or to book the River Tours or Kayak Tours, visitwww.schuylkillbanks.org. –BWT

Schuylkill Banks: An Investment In Fun

by David M. Gorenberg, Esq. &Kristina C.S. Harshany

Real estate investors frequentlyare not fully advised of themechanics and benefits of §1031exchanges by their tax or realestate advisors. Section 1031exchanges permit the non-recogni-tion of capital gains, when invest-ment or business property is“exchanged” for other investmentor business property. Non-recogni-

tion of capital gains means simply that the taxes that would otherwisehave been due on the profits have been postponed to a later date. So,how does an investor properly structure a §1031 exchange, and whatwill it look like?

The non-recognition provisions of §1031 have been part of the taxlaw for more than eighty years. For the first seventy years, there wasno formal guidance from the Internal Revenue Service, leavingexchanging to the most adventurous investors, or those with the mostaggressive tax counsel. In 1991, the Service issued Regulations provid-ing detailed guidance in the form of “safe harbors.”

The first thing to keep in mind is that it is important for the taxpayerto discuss the benefits of a tax-deferred exchange with his tax advisor.Further, it is imperative that the client make the ultimate decision toparticipate in an exchange before the close of title on the relinquishedproperty. The Regulations require that the taxpayer enter into anexchange agreement with a qualified intermediary at or before closing.Prudent investors, therefore, typically engage the services of a rep-utable qualified intermediary days or even weeks before the scheduledclosing date. The ideal time to do so is immediately upon the signingof contracts for the sale of the property. This enables the intermediaryto coordinate with the attorney and other professionals associatedwith the transaction.

At that time, it is wise to provide the intermediary with a clear copyof the real estate contract. The intermediary will use the informationcontained in the contract in a myriad of ways during the exchangeprocess. The first is to obtain the names of the taxpayer and of thebuyer, as well as the address and price of the relinquished property.The intermediary will typically contact the attorney at this point toinquire about any details that may be unique to the transaction

Further, the intermediary will prepare the exchange agreement, pay-ing particular attention to language and terms specifically required bythe Regulations. Additionally, the taxpayer must assign his rights underthe real estate contract to the intermediary.

As closing approaches, the intermediary will contact the closingagent to determine familiarity with the exchange process, and toensure that the closing procedures comply with the Regulations. At theclosing, the purchaser will acknowledge that the taxpayer hadembarked upon an exchange and had assigned his rights to the inter-mediary. Closing costs, attorney fees, mortgage payoffs, and otheritems routinely paid from the seller’s funds are paid at the closingtable. Any remaining funds that would otherwise be paid to the tax-payer are, at this time, paid to the intermediary on behalf of the tax-payer. This is crucial, because the taxpayer must avoid even “con-structive receipt” of the proceeds in order to protect the validity of hisexchange.

During the exchange, with very few exceptions, taxpayers may have

no access to the exchange proceeds. The taxpayer may receive theexchange proceeds upon the 46th day, if he has not previously identi-fied replacement property. (More on this later.) The taxpayer may alsoreceive the exchange proceeds upon the 181st day, if he does not actu-ally acquire all of the previously identified replacement property.Between the 45th and 181st days, the taxpayer may only receive hisexchange proceeds upon the occurrence of a material contingencyrelated to the acquisition of the replacement property, that was provid-ed for in the purchase contract, and which is beyond the control of thebuyer and seller. An example of such a contingency would be thedenial of a zoning change request. Failure to obtain financing on termssatisfactory to the taxpayer, or the seller removing the property fromthe market are not regarded as such contingencies.

From the date of closing on the relinquished property, the taxpayerwill have 45 days – called the identification period – within which toidentify his replacement property. The Regulations impose some rathernarrow restrictions regarding the identification of replacement proper-ty. First, the replacement property must be identified with specificity, inwriting and signed by the taxpayer. While a “metes and bounds” legaldescription certainly provides the specificity referred to, it is not neces-sary. Rather, a simple street address or other description such as “theMayfair Apartment Building” is clearly adequate. There are also restric-tions on how many properties a taxpayer may identify. For example,while identifying “a unit in the Bayside Condominiums” may seem spe-cific, there are likely to be dozens of units within that complex.

Most taxpayers are able to constrain their identification to three orfewer properties. In that case, there is no restriction on the fair marketvalue of the replacement properties. However, if they choose to identi-fy four or more properties, they must be careful not to identify propertyworth more than 200% of the fair market value of their relinquishedproperty. Finally, if they are unable to comply with either of these firsttwo rules, they must actually acquire 95% of the fair market value ofthe identified properties. Simply put, if a taxpayer is considering identi-fying more than three properties, it would behoove him to discuss theramifications with his attorney or accountant.

The taxpayer must actually acquire the replacement property by thesooner of: 1) 180 days after closing on the sale of the relinquishedproperty, or 2) the due date of his tax return, including any extensions,for the tax year in which the exchange began – called the exchangeperiod. The exchange period and the identification period run concur-rently, include Sundays and holidays, and may not be extended for anyreason.

It is also important to keep in mind that the same taxpayer whosells the relinquished property must actually buy the replacementproperty. For example, if Bob Smith sells property for $100,000 as anindividual, he cannot buy $100,000 replacement property with hisbrother also on title. There are some very narrow exceptions to thisrule, generally regarding business entities, which are well beyond thescope of this article. Should questions on this issue arise, discuss themwith your tax attorney or accountant.

The rationale for all of these restrictions is that the taxpayer isessentially “letting his investment ride,” rather than selling one proper-ty and later buying another. In order to take full advantage of this legalfiction, the taxpayer must also remember to: 1) reinvest equal or up intotal value; 2) reinvest equal or up in equity; 3) reinvest equal or up indebt; and 4) reinvest only in like-kind replacement property.

Like-kind property, when discussing real estate, is very broad.Virtually all real estate is like-kind to other real estate. Your personalresidence is never like-kind to investment property, however.Conversely, you may exchange raw land for commercial property, anda multi-family residential building for a retail shopping center. Thepossible combinations of properties are virtually limitless.

At this point, the taxpayer has properly identified his replacementproperty, and has successfully negotiated a contract for its purchase.Again, he will provide the intermediary with a copy of the contract.The intermediary will again contact the attorney and closing agent,and will prepare an assignment of this purchase contract. At closing,the seller will acknowledge that the taxpayer had participated in anexchange and had assigned his rights to the intermediary. Closingcosts, attorney fees, and other items routinely paid from the buyer’sfunds are paid at the closing table. The intermediary will forward all ofthe funds it is holding on behalf of the taxpayer. Any additional fundsnecessary for the closing must come from the buyer’s funds or fromloans acquired by the buyer. –BWT

For comments or further information on 1031 Exchanges, contact JohnSteele at [email protected]; or, to learn more aboutLandAmerica, 1031 Exchange Services, contact Kristina Harshany [email protected].


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Anatomy of a Like-Kind Exchange

April 2008 19

by John Steele

The message delivered at the Commercial RealEstate Women (CREW) luncheon and panel discus-sion on January 15th at the Union League wasloud and clear. Philadelphia development is boom-ing and the City and its surrounds seem to havebecome a “hot property”. (See sidebar for list ofdevelopments). The discussion was led by KarenRandal, Manager of Commercial Development ofthe City Commerce Department along with LoisMurphy from the Governor’s Action Team and Val

Chavenson with the Central Philadelphia Development Corp (CPDC).This was underscored by the fact that Phila has gone from nowhere to# 6 on Money Magazine’s “Best Big Cities” list.

The panel delivered a dazzling report of development downtownthrough the collaboration and strong working relationship amongState government agencies, the City Commerce Department and othercity agencies including Center City District, Select Greater Philadelphiaand the development community. They emphasized the sense of strongmomentum, growth, opportunity and excitement due to numerous suc-cess stories including, among many others, the Comcast Tower, at 973feet the tallest tower between NYC and Chicago; Cira Center and CiraCentre South with potential to link Center City with University City;and, the Convention Center expansion at $700 million – theCommonwealth’s largest capital project ever – with potential to createover 2000 new hospitality industry jobs and over $350 million annualeconomic effect in the region.

The environment that encouraged this expansion, particularly in theCenter City District where CPDC is very proactive (including a plannedbeautification and development of over 3.5 miles of subterranean con-course), has created surrounds that are safe, clean and attractive, andhas helped spur the success of the Avenue of the Arts and a vibrantnightlife. Drivers for Philadelphia’s development in the “New Day” in2008, according to the panel’s report, include:

• A young educated workforce who want to live in urban areas suchas Philadelphia with arts, culture, nightlife, workability.

• The affordability of Philadelphia compared to New York, Boston,DC and other overheated markets and the opportunity for growth evenwith an economic slow down.

• The city’s attractiveness to European and other foreign companyinvestors – walkable City, direct flights, more manageable and afford-able than New York City.

• Increasing reliance on public transportation, walking, and bicy-cling, making Philadelphia, with its extensive transportation, parks andother systems, an attractive “green” city.

• Development expanding out beyond the core of Market West andSouth Broad Street to North Broad Street, Market East, and UniversityCity with major projects throughout the area.

The forecast is further growth by securing more overseas investorsand businesses that can bring jobs and economic opportunity to thecity and by helping nurture existing companies seeking to grow. Thealternative energy sector – poised for rapid growth and development –is attracting both homegrown and overseas companies to the city andregion. For example, Gamesa of Spain recently established U.S. head-quarters here, Rotem USA, Seoul, Korea opened a major facility andothers are considering the move to the area. Green buildings, whichare of more interest to local developers as energy savings and produc-tivity increases are proved and demand for LEED certified office build-ings grows, will increase, as will demand for locations close to goodquality public transportation and accessible by walking and bicycling.

This informative and encouraging CREW Philadelphia event wassponsored by Cushman & Wakefield and Liberty Property Trust(Skyscraper Level Sponsors); Bedford Capital, Commerce Bank, N.A.,Fidelity National Title, Goldenberg Rosenthal, LLP, Land Services USA,Inc. and Stradley Ronon Stevens & Young (High Rise Level) ; Asher &Company, Ltd., Citizens Bank, Constantine Commercial, GrosvenorInvestment Management US Inc., Nason Construction, Inc., StructureTone, The Emlin Group and WHPounds Commercial Real Estate(Groundbreaker Level).

CREW Philadelphia, a founding chapter of Commercial Real EstateWomen, a national network of successful professional women in com-mercial real estate, is committed to the cause of women and children.CREW’s important, achievable goal is to create a world where womenand girls of diverse backgrounds have unlimited opportunities for eco-nomic and professional success. The group’s credo is: “Women andgirls should dream big, aim high and succeed!” Learn more aboutCREW Philadelphia at www.crewphiladelphia.org/. –BWT

John Steele is with Prudential Fox & Roach, Realtors and specializes incommercial, industrial and investment real estate. He can be contacted at:[email protected].

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(L. to r.) Debbie Gilmore, Royal Bank of America and Events Chair for CREWPhiladelphia; Lois Murphy, The Governor's Action Team; Karen Randal, City ofPhiladelphia Department of Commerce; and Valerie Chavenson, Center CityDistrict.

CREW Newsflash: PHILLY IS HOT!

Steward,” the CEO knows financial outcomes can be enhanced ifthe key financial metrics of the business are well understood andconstantly monitored by the entire organization. Training employ-ees as to the importance of these measures and how to improvethem when coupled with regular discussions where the outcomesare shared and discussed with everyone (even in private compa-nies) aids progress. This especially holds true when individual andgroup financial incentives are tied to these metrics. Additionally,ultimate accountability for the company’s financial results restswith the CEO and consistently unsatisfactory shortfalls can onlylead to the CEO’s departure.

So how does your CEO grade out in these five critical roles? Can

improvement be made? And how do you the answer the question,“Is CEO effectiveness important?” Many would say, if your businesslacks a meaningful, sustainable competitive advantage, the effec-tiveness of leadership and caliber of people will determine yoursuccess relative to the competition in the marketplace. Who, morethan the CEO, bears responsibility for this leadership and peopleselection?

Prepare the Report Card! Ask if CEO compensation aligns withthe grades. –BWT

Wade Roberts is a partner with The Tomorrow Group. He can becontacted 610-659-0185 or emailed at [email protected].

BizWiz: CEO Report Card (cont. from pg. 15)

Have a question for our BWT Experts?email: [email protected]

Watch for your answers in upcoming issues


Starting from the East side of town, East of CityHall Market East Area

• Market East:~ The City of Philadelphia is aggressively work-

ing on the redevelopment of Market East~ Trinity Capital Advisors – Plans are pending to

develop the Girard Estate site from Market East toChestnut, 11th to 12th into a dense mixed-usedevelopment and in the meantime they are re-ten-anting their retailers.

• Midtown Village/East of Broad betweenChestnut and Walnut, 13th to 11th – Developer TonyGoldman’s patience is paying off with a host ofunique shops, restaurants and residential conver-sions.

Convention Center Expansion (1MSF) andhotels

• W Hotel pending ground breaking at 12th andArch

• La Meridian – Ave of the Arts North at Archand Broad is moving forward

• 4 Points by Sheraton at 12th and Race isunderway

• In total there are 18 hotel projects in variousstages of development

Moving North of the Convention Center there isthe Convergence of Center City and Avenue of theArts North• 1500 Spring Garden – Day & Zimmerman, TheGranary, IBX, CBS have all taken space there• 1601 Vine – Grasso Holdings – Whole Foods andBest Buy will be retail tenants in thisresidential/hotel mixed use project. The operator ofthe hotel is rumored to be the Intercontinental.• 640 North Broad, the home of the restaurantOsteria (famed chef Mark Vetri) in the retail spaceof Eric Blumenfield’s residential development• This area is in a transformational state and theCity is eager to attract more retail venues to thearea

Temple University• The University has its own development plans

and the area overall is very active inclusive of stu-dent housing and retail development

• The new school of medicine is under construc-tion

• The site at Lehigh and 17th and 18th by theNorth Philadelphia Amtrak station owned by JosephWilliams are being looked at for two potentialmixed use developments

• An investor group has acquired the 300 unitPhiladelphia Regency at 1220 North Broad and willinvest $3M in upgrades

Moving East again to Olde City and Society Hill• Demolition of the building at Market and 5th,

SE corner is nearing completion, making way forthe new National Museum of American JewishHistory which received funding from the City as partof the Cultural Corridor Grants program

• The Constitution Center and the IndependenceVisitors Center are two recently completed culturalvenues on Independence Mall

• Many in-fill condos are at various stages ofdevelopment which started with the conversion ofThe National on 3rd Street, developed by Matrixand Toll Brothers

• Pearl Properties has converted Waverly Courtinto condominiums at 13th and Pine Street

• On Washington Park in Society Hill:~ Ayer Condo Conversion – Brown Development~ Lippincott Conversion – Domb~ Dilworth Condominium – Turchi

Northern Liberties• Pioneer, Bart Blatstein’s initial development

commitment to this area has spurred further devel-opment

• High rise Waterfront Square Condos, threetower gated community developed by Isle of CapriAssociates

• Many smaller developments but consistentmany being developed sustainably by Onion Flats

• Movement from the Northern Liberties over toGirard is vibrant aided by the City’s CommunityCorridor/ReStore Initiative

Delaware River Waterfront• Foxwood’s Casino• Sugarhouse Casino• Delaware River TrailJumping back to Center City:The Avenue of the Arts South from City Hall• The Residences at the Ritz Carlton located at

City Hall and Penn Square, a 48 story, 300 unit con-dominium is under construction and sales arereportedly proceeding as planned

• Mariner Commercial Properties is in the pro-posal stages of a mixed use hotel and condominiumproject at 1441 Chestnut with a total of 348 rooms.They anticipate construction to begin by 2008.

• The Kimmel Center, a major cultural venue inthe heart of Philadelphia designed by internationalarchitect, Rafael Vignoly, spurred development onthe Ave of the Arts South

• Symphony House just south of the Kimmel is amixed use condominium development by DranoffProperties that also houses the new SuzanneRoberts Theater, the new home of the PhladelphiaTheatre Company

• 777 S. Broad, a 146 unit residential rentaldevelopment with ground floor retail, is moving for-ward and is also being developed by DranoffProperties

• Pinnacle Hospitality has teamed up with Dr.Joseph Williams to develop the site at Broad andFitzwater

• Kicking off the gateway to the Ave of the ArtsSouth at Broad and Washington:

~ A mixed use development by Rimas Propertiesat South Broad and Washington - $500M project onthe NE corner

~ Pending mixed use development on the NWcorner which will include a new cultural ventureRittenhouse Square

• 10 Rittenhouse – ARC Wheeler is developingthe luxury condominium that is currently underconstruction. Barney’s Coop will be a 10,000SFretail tenant – this is Barney’s first move into theCity of Philadelphia. Talks are continuing with othernationally recognized retail users for their addition-al retail space along 18th Street

• The Sheraton Hotel conversion into the ParcRittenhouse condominiums at 18th and Locust isnear completion, developed as a joint venturebetween Alan Domb and Amerimar. Restaurateur,Steven Starr will be opening an authentic FrenchBistro on the ground floor called Parc Bistro

• Scannapieco Development’s plans for a luxurycondominium project at 1706 Rittenhouse SquareStreet are coming together and construction isplanned to commence in the months ahead.According to Tom Scannepeico, this project isdesigned for the high end market and sales aremoving along steadily

• The AIA building at 17th and Sansom is beingconverted by Kimpton Hotel into a 230 room bou-tique hotel

• Castleway Properties is developing a $36.7Mproject at Walnut, Sansom, 18th and 19th Street.Preliminary plans include high-end residencesand/or a hotel with ground level retail. This will bea gold LEED certified development

• New retailer leases that have been signedinclude Barney’s Coop, Juicy Couture, ArmaniExchange and LaCoste all on Walnut Street, and thehigh end restaurant, Dil Fresco’s will be going intothe Packard Building at 15th and Chestnut

Moving a few blocks NorthMarket and JFK West• The new 1.2MSF Comcast US Headquarters

building, designed by world renowned architect,Robert A.M. Stern is 98% leased with talk aboutPhase 2 moving forward. This building, developedby Liberty Property Trust, when completed will bethe tallest LEED project East of Chicago. The projectwill also include 23,000SF of retail space, a gourmetfood hall at the concourse level and a new restau-rant, Table 31, created by famed chef of the 5 StarLe Bec Fin, George Perrier

• 18th and Arch Street from 17th to 18th wasrecently acquired by Walnut Street Capital and willbe developed as a dense mixed use, Class AAdevelopment. The internationally renowned archi-tectural firm, Kohn Pederson Fox has been retainedas the architect and initial retail tenants have beensecured. This project will include an office and hotelcomponent and will be designed to achieve a TBDLEED certification level

• Philadelphia Management in joint venture withThomas Properties Group is developing TheMurano, a $165M, 42 story luxury condominiumtower. Currently under construction, the project willalso include 9,000SF of retail space. PMA andThomas formed an earlier partnership to convertthe old factory at 22nd and Market into 168 apart-ments. These two developments are helping createa market for housing on West Market.

• Turchi Development has converted the formerAAA Mid-Atlantic garage at 23rd and Market into110 condominiums.

Schuylkill River Waterfront Development

• Tremendous progress has been made in thecreation of a waterfront park from Locust Street tothe Art Museum with new trails and landscaping.Progress which includes the development of PainePark, a unique skateboard park, continues as art ofthe overall master plan. Their fundraising efforts arewell underway, having just received $1M from theCity of Philadelphia

Crossing the River to University City• The University of Pennsylvania has completed

its comprehensive Master Plan with real projects invarious stages of design and construction

• Drexel University is also actively developingnew projects, and Binswanger is currently handlingan RFP for a mixed use development on the Drexelcampus

• Brandywine Realty Trust was given develop-ment rights by the University of Pennsylvania todevelop a 24 acre site planned as a mixed use proj-ect that will include a 1MSF office, hotel and luxurycondominium tower and second residential tower.The University of Pennsylvania has already commit-ted to 100,000SF in the office tower. This develop-ment includes the conversion of the Main PostOffice building into the new home of the IRS. Thiswill be a LEED certified development

• Children’s Hospital of Pennsylvania (CHOP) iscompleting their expansion of the $400M eight storyresearch tower

• The Perelman Center for Advanced Medicine atThe Hospital of the University of Pennsylvania(HUP) is a $232M facility under construction at thecorner of 34th and Civic Center Boulevard

Ben Franklin Parkway/Logan SquareNeighborhood

• The famed Barnes Museum will be relocatingfrom the suburbs to Philadelphia to be located onthe Ben Franklin Parkway and Callowhill. TheBarnes has chosen renowned architects TodWilliams and Billie Tsien to design its new home

• The Free Library expansion continues with itsfund raising efforts. Land has been cleared andinternationally recognized architect, Moshe Safdie,has been retained for the design of the expansion.In addition to the expansion the original buildingwill be restored

• Pearl Property’s development at 19th and 20thand Callowhill is in conceptual development and isengaged in conversations with other venues beingdeveloped along the Parkway

• Parkway 22 at 501 North 22nd, a luxury condo-minium, is moving forward

• The Art Museum expansion at the main build-ing designed by Frank Gehry is under construction.This is part of a comprehensive, $500M master planthat will increase the museum’s size by 60% or80,000SF. In addition, the Ruth and RaymondPerelman Gallery across the street in the newly ren-ovated Fidelity Insurance property recently had itsgrand opening

• Moving Northwest to Fairmount Park, thePlease Touch Children’s Museum is undertaking themajor restoration of Memorial Hall, a NationalHistoric Landmark built for the 1876 Centennial.Scheduled to be open fall of 2008, the Please Touchis expanding to become one of the most significantchildren’s museums in the US. As a result of theircommitment a new district has been created in thearea, the Centennial District

• Please Touch’s project is directly impactingtheir surrounding neighbors in the Parkside area ofPhiladelphia. East Parkside has an initiative under-way to become the first LEED designated urbanneighborhood in the US.

Heading South to the Delaware RiverThe Navy Yard• 70 companies, 7,000 employees and growing• Urban Outfitters relocated their US headquar-

ters to the Navy Yard, 5 buildings on 11 acres. Theyrecently won the highest national award given bythe Urban Land Institute (ULI) for their develop-ment. Their move to the Navy Yard has significantlyspurred growth and as a result they are looking oexpand by 5 to 6 buildings

• The groundbreaking ceremony for the USheadquarters for Tasty Baking took place onOctober 31, 2007. Tasty Baking selected the NavyYard for both their headquarters office and manu-facturing facility

• Plans for Liberty Property Trust’s second specu-lative office building is moving forward on CrescentDrive

• Rotem, a South Korean manufacturing compa-ny, has relocated its US operations to the NavyYard, leasing 290,000SF on 11 acres. The facility isbeing developed by Rimas Properties

Stay tuned – there’s more to come!SOURCE: City of Philadelphia, Dept. of Commerce

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Development InPhiladelphia

April 2008 21

by Jackie Borski

Potential homebuyers andhomeowners, needing to refinance,but have credit imperfections thatmake them a high risk for approvalof a loan are finding the solution tothe problem. Credit ReportAdvocates, located on Main Streetin Manayunk has the program tohelp borrowers meet their qualifica-tions for the loans.

Jackie Borski, of Credit ReportAdvocates, is helping borrowersimprove their credit scores whichenables them to qualify for the pro-gram they need at the lower inter-est rate, which in turn, is a lowermonthly payment. “Many realtorshave a list of potential homebuyerswho were turned down. After con-tacting us, they have been able tobuy their dream home,” says JackieBorski.

Anthony Panto, of Century 21Crest Real Estate and MortgageProfessional with Precision FundingGroup LLC said, “Jackie’s CRA busi-ness is the main reason I have beenable to get my borrowers into theirhomes. I referred them to her, sherestores their credit while they shopfor the perfect home, and by thetime they find the home, CRA is fin-ished on their credit report. When Iam working with someone thatcannot refinance due to credit,‘right to CRA they go’! The top rea-son my applications are denied isdue to the borrower’s fico scoresbeing too low and imperfect creditrepay history.”

Jackie comment were, “workinghand in hand with PrecisionFunding Group has been anabsolute pleasure. Often times bro-kers are hard pressed to find thequick sale. Not PFG. They take thetime to educate their borrowers andgive them the tools to obtain home-ownership. Restoring an individ-ual’s credit is not an overnightprocess. Many brokers do not wantto wait and allow the potentialclient to fix their credit and get to aplace where they have the borrow-ing power to get into their “dream”home. In addition to allowing indi-viduals to achieve their goal ofhomeownership, PFG advisesclients who are in high interest rateloans to reach out to CRA and gettheir credit restored allowing theclient to borrow money at a lowerinterest rate. The improved creditalong with homeownership allowsincreased cash flow to the borrowerconsequently improving their wayof life. The patience and advicegiven to customers of PFG is out-standing. No one is kicked to thecurb. The individuals are either putinto a loan that fits their personalneeds, or advised to restore theircredit, wait out a prepay, pay offsome debts, etc. The clients arecoached on ways to improve andincrease their borrowing power. Inthese turbulent times it is refreshingto see a mortgage branch that caresand takes their clients interest toheart.”

Some of the recent facts aboutcredit is the median fico score inthe U.S. (according to myfico.com2/1/2008) is 723. It is estimatedthat 70% of the US adult populationhas some negative credit on theircredit reports. Credit ReportAdvocates works on the following:late payments, charge offs, collec-tion accounts, court records, bank-ruptcy, repossessions and foreclo-sures

Once the negative items getreported to any of the three majorcredit bureaus, they generallyremain there for seven years, withthe exception of bankruptcy, whichremains there for ten years! Thegood news is, there is no legalrequirement for any of these itemsto appear on your credit report. Youhave State and Federal laws thatprotect your rights. Jackie Borskiand CRA utilize these laws to helpyou improve your credit report. Bygoing through the process you canimprove each of your credit reportsand increase your ability to obtainmortgage loans, credit cards, andall types of consumer credit. CRAprovides the opportunity for you toget back into the credit system.

Since there are no laws thatrequire the credit bureaus to reportany negative information on you –with the exception of past due childsupport – you may wonder why thebureaus often refuse to removenegative information. It is becausethat negative information is ownedby the creditor or collection agencythat reported it. These creditors andcollectors are the customers of thecredit bureau. So they have a mon-etary relationship with each otherand their allegiance is with eachother not you.

I cannot believe the amount ofpeople my loan officers were ableto help after going through the CRAprocess. It is an extremely simpleprocess and the results are aston-ishing. So many times we comeacross those people we want tohelp but simply cannot place theirloan due to credit blemishes. Whenwe found CRA, our customers maynot have been approved for a loan,but we could show them the lightat the end of the tunnel. CRA dis-putes inaccurate information andcoachs the client on how to buildand keep an excellent credit profile.The purpose of the program is toassist credit worthy individualsregain the scores they deserve. Afterthe credit clean up process, ourcustomers were not only approved,they also found that PFG inManayunk is a mortgage companythey trusted and deeply appreciat-ed. –BWT

CRA & Jackie’s contact info iswww.mainstreetCRA.com and [email protected] office. PFG &Anthony Panto iswww.mainstreetPFG.com [email protected] office.

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Repairing Credit


TheHumanFactor

by Gail Madison

The New Year isupon us and manypeople are dreadinganother year in theircurrent job. Why dowe do that to our-selves? My guess isthat it is easier to staywith what we knowas change can befrightening. Changecan also be liberating,uplifting and often

just what we need. Hindsight is always 20/20.How often have you said to yourself, “I wish Ihad done that sooner?” I have always liked thequestion: “If you could do anything youwanted and knew you could not fail whatwould you do?” Most people do not answer,“Exactly what I am doing now”. This is the timeto dream that dream and find the job that willallow you to thrive not merely survive.

If you are thinking about making a careerchange in 2008, here are some interview tipsthat will help you succeed in the interviewprocess. Shakespeare said, “The readiness isall.” In these competitive times you cannot just“wing it”, preparation is critical.

Interview Prep: Do Your Homework onYou!

• Get to really know yourself. What are yourstrengths and weaknesses? If you do not know,I recommend a diagnostic tool such as theMyers Briggs assessment. There are manyavailable and they are very useful.

• Evaluate the impression you make on oth-ers. What is your image? Do you appear profes-sional and confident?

• Are you “dressing for success”? Aside fromthe all important appropriate business attire,are you well groomed, hair, fingernails, shoesthat are polished? Plan what you will wearahead of time.

• Is your handshake firm and confident?Men and women shake hands the same way inbusiness. You do not want your handshake tobe memorable for any reason; too strong or tooweak.

• How would someone “read” your body lan-guage? Do you make strong eye contact andsmile? Do you appear open and friendly keep-ing your hands at your sides? Please rememberto refrain from fidgeting and other nervous ges-tures that may undermine your positive impres-sion.

• How do you sound? Do you speak clearly

and confidently? Slow your speech down andenunciate so that your communication style isstrong. Always avoid slang and profanity asthese make very negative impressions. Correctgrammar is also very important.

Research, Research!• Research the company that interests you

and carefully consider whether you will be agood “fit” with their corporate culture.Recruiters want to know that you will workwell within their culture and that you areenthusiastic about the specific position they areoffering. This preparation will enable you torespond more intelligently to those difficultinterview questions.

Role Play and Practice Answering DifficultQuestions.

Consider the following questions and prac-tice responding to them. Role playing prior toan interview will strengthen your confidenceand the impression you make.

• Describe your strengths and how they havehelped you in life and work.

• What do you see as a weakness and howhave you overcome your weaknesses withregard to work in the past?

• Tell me about the positions you have heldsince graduation led you to accept those posi-tions.

• How do you define “success”?• What is your communication preference?

Email, written, telephone, etc.?• What are your hobbies or passions?• Have you ever worked with or for someone

that you did not like? How did you handle your-self?

• Would you consider yourself a team player?• Tell me about a team project. What were

your responsibilities and what was the out-come?

• Describe your work ethic and on whom orwhat it is based.

• Why do you think you would be successfulin this job and why should we hire you?

When contemplating your responses, alwaysthink carefully about how you will apply yourcurrent skills and tailor your answer to thecompany and the position for which you areinterviewing. When the interviewer asks if youhave any questions, many people make themistake of saying, “No, I think you have cov-ered just about everything.” This is your time toshine. Have some thoughtful questions pre-pared such as:

• Is this a new position? If not, why has theprevious employee moved on?

• What project do you think I would be wellsuited for in the next six months?

• Will travel be required?• To whom does this position report? What is

their management style?• Are there opportunities for advancement?• How long have you worked here and what

do you like/dislike about the company?• When will you be making a decision and

when may I expect to hear from you?• Are there any additional questions that I

can answer for you?• Never ask about compensation until the

interviewer brings it up. • While it may be appropriate to inquire

about the hours in a typical work week andabout a requirement of overtime, it is never agood idea to ask about vacation or time off.

• If you feel that you are asked a questionthat you know to be illegal; about your race,religion, age, etc., you may respond by askingthe interviewer why they would ask that ques-tion or you may say that you are not comfort-able answering the question at that time.

• Finally, be careful not to ask questions thatshould have been answered in your researchingthe company. The company will respect yourknowledge about it and your effort to matchyour skills with the position available.

After the Interview:• Be sure to shake the hand of whoever

interviews you and thank them for their time.• Leave the company premises immediately

as you are not yet an employee.• Send an e-mail thanking the interviewer

immediately and then write a handwrittenthank you note on a business correspondencecard such as those made by Crane & Co. This iscritical! Writing a hand written note in additionto an email will set you apart from your compe-tition and many employers have told me thatthe note was the final positive impression thatcaused them to hire one person over anotherwhen two people were equally talented. Youmay be asking, “Is this really necessary?” Mysimple answer is “YES”. The handwritten noteis worth its weight in gold!

I often talk about the five “P’s”: PriorPlanning Prevents Poor Performance. Best ofluck and let’s go from good to great in 2008!

Be sure to look for next month’s article: TheInterview Lunch or Dinner. I will be dis-cussing critical dining etiquette skills and howimportant they are for business. –BWT

Gail Madison is director of The MadisonSchool of Etiquette and Protocol and can be con-tacted at [email protected]. Ask ourexpert your questions on etiquette!

Finessing the Interview

April 2008 23

by Bruce Murray

Bob from Cherry Hill, NJ asks, “Could my employ-ees be driving me crazy? I’ve been yelling at workand end up looking stupid. Some days I would swearthat they are purposely trying to ruin me and mybusiness.”

Your question has two parts Bob; “Am I crazy”and “do one or more of my employees have it in forme”.

First let’s discuss whether you might be losingyour mind. Your state of sanity is very important tothe running of your company and certainly does

impact the company’s bottom line. Many big businesses require execu-tive’s to get annual check-ups that include mental health evaluations forthis very reason. If your outbursts are new and your stress has causedyou some symptoms, the following story may be helpful.

Only with Ron’s permission can I tell his story. He permits it, “Becausesomeone else might get help in time to turn around their business andsave their equity“. Ron O. owned printing businesses for 33 years. Hislast company, R&S Graphics was selling about $1.75 million a year whenhe and I were introduced in 2003. He was suffering personally at thatpoint and thought he might be “going nuts”. Profit margins were slippingand cash flow was tightening up.

Ron was told by a friend that introduced us that I provide executivecoaching and HR strategy advice for private business owners. In mostbusiness situations my license and credentials in professional counselingdo not matter to my clients, but this is one of those times where it was akey to our success.

You may not recognize “the signs” where stress becomes more signif-icant distress than a weeks’ vacation will solve. Ron didn’t either. Someof those signs are: problems going to sleep or staying asleep; a darkmood nearly every day for more than two weeks; losing concentration;becoming indecisive; a loss of interest in pleasurable activities; restless-ness or being on edge for weeks at a time; inability to relax or stop wor-rying; fatigue; loss of energy; irritability or anger (with or without out-bursts); sadness and frustration (that may or may not be accompanied by

crying); feeling worthless; being disgusted, guilty or ashamed of your sit-uation. If you have any of these going on for more than a month, thenyou have trouble that deserves and needs professional help.

One of my recommendations for Ron was to go talk to a doctor abouttreatment options, which he did. We met weekly to address his personaland business issues. In time, Ron was able to correct his business prob-lems with simple solutions; he raised prices to a profitable level andpushed back deadlines with customers when the company simply need-ed more time for production. Both of these are things he would not con-sider doing when I first suggested them. After his mood improved hebecame more interested in leading his business, regained his assertivebehavior and improved his management style overall.

Now that you have more information, you need to decide if you thinkyou have any signs that you are “over the edge”. Are any of your prob-lems on the symptoms list above? If you answer “yes”, you need to con-tact someone who has the professional skills to help you, ASAP.

Let’s get to the second part of your question. It is important for you toanswer my next question honestly. Have your angry shouting and threatsbeen going on for a long time? If the answer is “yes”, then you wouldhave to expect “the employees to have it in for you”. Your employeesmay be rebelling against a commanding style, if that is what’s going on.Whether the shouting is recent and a sign of your stress or is a long-term style, your business needs you to make a firm resolution to takeproper action to get momentum heading again in the right direction.

If you decide the employees are taking advantage of you, then youwant to think about whether your company is providing the three essen-tials of supervision: 1) Are expectations clear for each person? 2) Do youcheck on them, provide accountability and feedback regularly? 3) Do youor your supervisor’s relationships with each employee guide them in thedirection of developing and improving performance? It is the company’sresponsibility to provide performance guidelines. Communication aboutwhat is expected of a new employee should start in the orientation andcontinue weekly through the initial period (60–90 days), then continuewith monthly discussions and formal annual performance reviews.Without these essentials in place, some type of dysfunction is inevitable.

I hope that I have provided enough information for you to look in amirror and decide who and what needs your attention; your-self or yourmanagement and supervisory style. –BWT

Bruce P. Murray, LCSW, Dip.CFC, is a trainer, mentor-coach, speaker andfounder of Success Support. You can reach him at [email protected].

TheHumanFactor

Am I Nuts or What?


by Lyn FisherPresident of Financial Forum, Inc.

BOOK: Work Like You’re Showing Off! The Joy, Jazz and Kick of BeingBetter Tomorrow than You Were TodayAUTHOR: Joe CallowayJohn Wiley & Sons 2007, 142 Pages, $14.95 USD

In his newest book, Work Like You’re Showing Off, Joe Callowaygives new meaning to the term “showing off.” No longer a negative,it’s now about bringing the best you have to any situation. This bookwill help you open doors to professional success, while at the sametime helping to improve every aspect of your life in the process.

With a strong “kick” of motivation, the book reminds us that eventhe best can get better. After all, Calloway reminds us “Tiger Wood hasa coach,” leading us to the point that you should never be as good asyou’re going to be. So, it’s time to live life like you’re “showing off.”Don’t let people tell you your ideas are stupid and that you can’t bewinner. Instead, he challenges us to “Get stupid. Get absurd. Get busy.Show off!”

Work Like You're Showing Off was written to encourage the read-ers to identify what truly matters most to them, and to empower themto align their daily routines in a way that allows them to follow theirpassion, dream or area of interest.

Calloway has a unique gift for stating the obvious in such as waythat you may say, “Oh yeah, I get it now.” He tells the old joke: A guygoes into the doctor’s office. He moves his arm back and forth andsays, “Doc, it hurts when I do that.” The doctors responds, “So don’t dothat.” The point Calloway is making is that if the way you look at yourlife doesn’t work, then don’t do that. If you want to change your world,

change your mind first.Another key point to support

this notion is that we all tendto see things, not as they are,but as we are. In other words,we automatically impose ourown limiting beliefs to a situa-tion before ever giving credit tothe fact that there may bemany different solutions to aproblem, rather than just theones we assume.

This book is a very quickread and the payback for thetime invested is very highindeed.

Joe Calloway is an expert onhigh-performance organiza-tions and individuals, theowner of an award-winningrestaurant, and a member ofthe International Speakers Hallof Fame. His clients reads likea Who’s Who of Business –from newspapers in Sweden,hotels in Great Britain, andcomputer companies in SouthAfrica to world brands like BMW and American Express.

To order this book and receive a 20% discount, go to www.ffbook-store.com and enter discount code BDJ88942 (case sensitive). –BWT

by Tom Grau

A sales development expert shares his top tenlist for selling products, services, and your ownabilities.

10. People love to buy…but hate to be sold.Each day I carry with me a wallet full of credit

cards in case I see something I might want to pur-chase. I love the experience of buying things.However…if I sense someone is trying to sell mesomething…my defenses immediately go up. How

do we sell ourselves without setting off the other person’s ‘SalespersonRadar?’ That’s the foundation of what the rest of this list addresses.

9. I am financially independent and I do not need the job.If you could trick your brain into believing the above were actually

true…you would not need the rest of these tips. YOU WOULD DOTHEM AUTOMATICALLY! However…since this is not true for most ofus…anxiety takes over and causes us to struggle with the remainder ofthe suggestions.

8. Sell like a doctor.Pharmaceutical companies know that doctors are THEIR frontline

sales people. However…when you are in a doctor’s presence…you donot get the sense that you are being ‘sold to.’ Consequently…your nat-ural defense against being ‘sold to’ never makes you defensive…andan open and honest conversation is possible.

Why? The main reason is doctors sell you what you want tobuy…not what they want to sell. They listen and then offer you a solu-tion to your pain. If you want to avoid looking and sounding like asalesperson…avoid pre-mature presentations! Do not ask anyone to beinterested in what you have to say before you have shown that you areinterested in what they have to say.

Ask questions until YOU understand the issues they arefacing…now, ask questions that help THEM discover that you will bevaluable in solving those issues…finally, ask if they would like yourhelp solving the issues?

7. Become an expert.You will no longer need to sell yourself…once you become an

expert…on anything! It is amazing in our society how little it takes tobe viewed as an expert. Write an article…and distribute reprints.Make a video presentation…and put it on YouTubeTM. Use one of theinstant publishing web sites…and create a book with the vast knowl-edge you have accumulated. Accept a public speaking invitation…andinvite one of your satisfied customers to introduce you to the atten-dees.

Position yourself as an accessible expert and the battle is half over.6. Seek the other person’s trust and respect.Too many sales people have bought into the following phrase: If

they like me…they will buy from me. Experience shows that suchfaulty thinking often causes us to lose the component we need themost from the other person…their trust and respect.

The Road To Trust And Respect Does Not Go Through Like! How many people do you like…who you would have trouble giving

your full trust & respect to? Can you think of anyone you trulyrespect…who you do not like, at least on some level?

When we seek the other person’s trust and respect…first…we willprotect the win/win nature of the conversation. We will keep the con-versation reciprocal…both parties will get a chance to ask…andanswer…questions. We will evaluate them…as much as they are eval-uating us. We will avoid the temptation to ask for…or offer…unilateralconcessions. Simply put…we will play win/win…or no deal!

5. Leave your enthusiasm outside the door.Nothing trips a person’s ‘Salesperson Radar’ quicker than enthusi-

asm on the part of the person trying to sell.Enter the conversation with the best interests of the other person as

your primary focus. Frame the conversation as an interview in whichthe two of you are merely trying to figure out whether or not you havea ‘fit.’ No enthusiasm is required for that approach.

4. Be ready to say ‘No’ first.If you sense that what you are trying to get the other person to buy

is not in their best interest…be ready to say ‘No’ first. There is nothingthat will earn another person’s trust quicker than when a salespersonis willing to say ‘No’…even before the prospective buyer says ‘No.’ Ifyou are not a fit for the job…be the first to say so.

3. No begging allowed.Nothing will lose the other person’s trust and respect faster than

begging. Preserve your dignity throughout the conversation.2. If you sense it…say it.Find the courage to ask the person what they meant by that sigh?

When they rolled their eyes…what did that mean? Do not assume thatyou know! We tend to always assume the worst…give them a chanceto elaborate…knowing for sure will make you both more comfortablewith the outcome.

1. Do not allow wishy-washy words.Do not fear the truth so much that you hold onto false hope. Listen

for those phrases like ‘maybe,’ ‘possibly,’ and ‘we’ll get back to you.’With sincerity…ask what the other person means by each phrase…andif they are just too nice to tell you ‘No’…help them say it.

If it is going to be ‘No’ you will want to know it that day. Do notwaste you time, but rather get on with finding someone who willappreciate…and will be willing to pay a fair price for what you have tooffer. –BWT

Tom Grau is a Partner at The Training Center for Sales and BusinessDevelopment and may be contacted at 610.940.0600 [email protected]. For the schedule and sign-up info forupcoming workshops please visit www.TheTrainingCenterInc.com.

April 2008 25

TheHumanFactorSell Yourself…Without Triggering Their ‘Salesperson Radar’


April 2008 27


Documents

The Truth, The Whole Truth - … · verb “to be”: is, was, are, ... tense where possible; describe what you’re going to ... stole a dead women’s identity?