Rescue Meby Kenny Watts

The Doctor Is In: Tips For Developing Entrepreneursby Maureen Lofton

“Doc” Braswell’s

Tips for a Healthy Business

In This Issue..

Premier Issue 2011

THE PURPOSE OFMONEY

14 Rescue Me

Kenny Watts

Reality Check

Dana VanVeckhoven

7

The Doctor Is In: A PrescriptionFor Developing Entrepreneurs An Interview with Doc Braswell Maureen Lofton

16

Why Did You Choose To Make A Movie About Money?Katie Teague

10

What Do I Charge?

Clay Hamilton

22

4 Will You Still Need Me, Will You Still Feed Me, When I’m 54?Clay Hamilton

“Let’s get rescued together.”

“What is the purpose of money?” sounds like a rhetorical question. Everybody knows the purpose of money…right? But do we really? Is money a means to an end, and end unto itself or perhaps a measure of our value? When do we have enough money? Is there such a thing as too much money? Ironically, while the issue of money permeates our daily lives and has a profound impact on our decisions and life choices, very little discussion or dialogue is ever dedicated to serious exploration of the myriad complexities that envelop it.

The Purpose of Money is a publication dedicated to developing a framework for successful living that incorporates the wise use of money as a tool in achieving objectives; to create a forum for honest discussion about money and its value in our lives; to foster independence and creativity; to promote ambition without excess, excellence over quantity and growth without waste; and to identify meaningful strategies for living a life of dignity and grace.

The Purpose of Money was developed independently by a group of professionals representing diverse disciplines. Its publication is underwritten by Beyond Capital, a financial services firm; however, it is not intended nor will it ever be used as a sales tool for investments of any kind. All opinions expressed in TPOM are those of the writer or interviewee and are in no way subject to revision or editorial control by Beyond Capital or any other firm or agency.

Editorial Staff: Kenny Watts, Maureen Lofton, Katie Teague, Clay Hamilton, Doc Braswell. Administrative Coordinator: Nikki Doyal.Designer: Sharlyn Burton

The staff of TPOM strongly encourages the submission of articles, proposals and ideas for articles. All articles should be limited to no more than 3,000 words and should be accompanied by a brief explanation of the writer’s background and expertise as well as pertinent contact information. Articles cannot be returned; however, the authors will be notified if their submissions have been approved for publication by the editorial staff. Articles and story ideas should be sent to Beyond Capital, 2211 5th St. Suite 107, Meridian, MS 39301, Call Nikki Doyal @ 601-693-3007 or email Kenny Watts @ kenny@beyondcapitalinc.com or Nikki Doyal @ nikki@beyondcapitalinc.com

I turned 54 last year and I’m staring down the barrel of 55--the historic minimum retirement age--this year.

Except I can’t retire this year. It looks like I’ll retire when I expire and, as politicians bandy about the idea of raising retirement to 70 and continue to try to raid Social Security, the future’s not exactly so bright I’ve got to wear shades.

But, the future could be very bright.

It comes from understanding something I call the Five Accounts. It’s an idea I’ve worked on for years and it directly affects my perception of money because...

You’re going to be trapped on a deserted, remote island, and you can take any four of the following five items:

• A million dollars• A year’s supply of food• A well-stocked first aid kit• An easy-to-construct shelter from the elements• A way to purify sea water into potable water

See? Money in the absence of food, water, and shelter is highly overrated. That’s why people who constantly chant the mantra of supporting “business” should be the last people we listen to. Everything, and I mean everything, is less important than the main thing--life itself.

The Five Accounts as I’ve delineated them are:

• Money• Health• Knowledge• Relationships• Spirit

Will You Still Need Me, Will You by Clay Hamilton

Clay Hamilton is a self-employed, reinvented baby boomer. In the past, he has served as webmaster and IT manager for higher education and corporate America. He is currently the head geek of Nexus Hero, a program designed to help displaced workers find work on the Internet as well as help people start or expand a business on the Internet.

He also serves as a mentor to Netfishbowl.com, a female-owned Internet business that sells domain names, web hosting and web design.

Currently he is working on BABI, an online building and business inventory designed to help communities revitalize their downtowns.

He can be cranky if he doesn’t get one nap a week, is a vegetarian who occasionally eats chicken and is a practitioner of minimalism.

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I guess I’m saying, in my world view, money is a complete part of a nutritious breakfast but it really is the Count Chocula of the team. Go bankrupt in any of the other four accounts and watch how little money really matters. But this is supposed to be about money.

My colleague, Katie Teague (also a contributor in this publication) will tell you money is an agreement, an understanding. I’m going to add to that because I agree with her. Money is an

agreement between people, and people who want a lot of money are delusional, maybe even sociopaths.If someone got in their car and traveled the country killing people, they would be a serial killer--a sociopath. If someone runs an HMO and denies people needed care that costs them their lives all over the country when those same people could be saved is considered a “cost-cutting” businessman. It’s just the price of doing business. If you are going to make an omelet, you have to break a few eggs.

Still Feed Me, When I’m 54?

5

Photo courtesy of Steven Beger Photography (Beger.com Productions)

On that deserted island,

you can have

four of five

available items. Which four

would you

choose?

Right?As I approach that area of life where my “value” significantly declines because I am older and represent more health risks to companies already struggling to meet health care costs, I have to get up every day and mentally reject major pieces of our “monetary” system.

A long time ago in what we now know as Colombia, cocoa beans were a form of currency. Rather than carry around the beans, people carried a small piece of fabric called a quachtli that was equivalent to 450 hours of work. The work value of their currency suggests to me that the people who could participate in trade were the people who could actually “make” or “do” something, not just earn quachtli by speculating on cocoa bean futures.

There’s a great scene in the Kevin Costner film “Waterworld” where he trades three pounds of “dirt.” When the accountant tastes the dirt and realizes it’s pure, he says the community should count this as pure “hydro” (their word for water). They pay the Costner character 128 “chits” and he goes to buy things with them. When the world is covered with water, dry land is the most valuable thing on earth.

Which brings me to my point, I guess.

The people who have spun out their life based on making lots and lots of money will be devastated when the value of that monetary system collapses (and if it is not based on something of real value, it will). The people who have built a life around being healthy, having friends, having a spiritual understanding of existence, and constantly learning how to “make” things of value will probably fare as well as or better than those who, in their delusion, think l i fe is about wealth and excessive consumption.

See you next time.

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The people who have spun out their life

based on making lots

and lots of money

will be devastated when the value of

that monetary

system collapses

(and if it is not based on something of real

value, it will).

Money means many things to many people, but to a young person, it is everything. But, do they really understand what money means? If you have a lot of it, you can have a yacht and live like Jay Z. If you don’t have a lot of it, you live in public housing and work at McDonalds. But it is the in between that the majority of us live in and what young people have a hard time seeing-- the reality. For the past two years, Junior Auxiliary, a volunteer organization working for the young people of Lauderdale County, has set up a simulated life for high schoolers called Reality Check. Each student is given a random life scenario--- a job--including yearly and monthly salary, level of education, marital status, and children. He or she is given the monthly salary and works his way through booths to pay bills. The booths include: utilities, housing, transportation, insurance, groceries, clothing, childcare, bank, just for fun, second jobs, and back to school. After making their rounds, the students have had a taste of reality. The whole process is eye opening, not only for the student, but for the volunteers as well.

Watching these young people make their way around these booths always makes me reflect on what my

concept of money was when I was younger and even now. When I was growing up, my parents were not what I considered rich. I had rich friends with big houses with pools, and that is just the way things were. It never really bothered me, but I do remember hoping that, when I was older, I would be “richer” because that made you happier-- right? That is the Catch 22, if you will, with teaching Reality Check. Our goal is that, as students make their way around and pay their utilities, rent, and car notes, they realize that the more education they receive, the more money they make and in turn, the happier they are. Well, not happier, but better prepared. The concept of Reality Check is teaching the fundamentals of money and budgeting. And, even as an adult, the struggles in my life seem to stem f r o m m o n e y

Reality Check

by Dana VanVeckhoven

Dana was born and raised in Meridian, MS and graduated from Meridian High School. She went on to the University of Mississippi, where she received Bachelors and Masters degrees in Elementary Education. Dana taught elementary school in Brandon, MS and in Meridian. She is currently an active community member involved in Junior Auxiliary, where she served as president and in the Study Buddy program. She is an active member of The Church of the Mediator. Dana is married to Michael VanVeckoven. They have two children, Billy, 6, and Lucy Ann, 3. They are happy to raise their children in Meridian, MS

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or lack thereof. The key is budgeting and only spending what you make and leaving some to save. That is hard for most adults, so how will a young person understand?

In this simulation, the majority of students realize that, to make ends meet, they have to get a second job. Some have to use public t r a n s p o r t a t i o n instead of affording a car. Some look fo r roommates . The whole idea will hopefully resonate that a better job will allow for a more productive life and, in turn, will result in a better citizen. So, is it working? M y j o b i s t h e t r a n s p o r t a t i o n booth. They come to me to buy a car or buy a bus pass. I offer six new cars and six used cars from which to choose. The most expensive is a Cadillac Escalade for $900 a month and the cheapest is a used Ford Taurus for $220 a month. When a young person sees that they have $2000 a month to live on, it seems like a lot. A $900 car payment will leave a whole $1000 left! So, I was not surprised at all when students came to me and bought the expensive cars--the cars they hope to have one day. Of course, ALL of them come back to trade in, but initially it seems doable. But what I am surprised about is the number of them who come up and say, “I want the cheapest car.” What, I

think? Is this a real teenager! I would have never done that;after all, this is just a game-- right? A game that, in today’s economy, they hear a lot about.

My parents never talked about money with me. I never knew when they struggled or when things

were good. I was never spoiled but also rarely to ld “No” when I asked for material things. I went to college with no worries of money or any kind of budget. I know my parents were proud to do that for me. But, if I were a y o u n g p e r s o n today, I think things would be different. A f t e r s e e i n g savings lost and b u s i n e s s s l o w,

t e a c h i n g m e t o budget would have been a must. And even before the idea of money changed

forever, I wish now as an adult that I would have had a foundation of how to handle money.

These young people today are overexposed to material items of all kinds. They want to be rich but they also know more about money than we did. The reality does sink in to them that having more kids is costly, a high school dropout struggles, and the more education means more money. And, in the end of our little experiment, they make it work, and some of them even enjoy their life. I walk away feeling refreshed a lot of times. These kids

8

Photo courtesy of carmichaellibrary's photostream

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are going to make it. Oh, and just a note, every once in a while, we have a student ask for the Welfare booth. Quickly we tell him this is a n- handout zone--you work. Whether or not this budget game will make a difference, time will tell. But it does what so many of us never had growing up. It starts a conversation about money, jobs, and growing up. At the end of our little game, we talk to them. Most enjoy this and tell us quickly that they are not having kids or that there is no way they will be a high school dropout or that they had a pretty good “life.”

These kids see that the whole idea of money is important, so important that a group of ladies from the community that they don’t know at all came to talk about their future. We have good conversations, and most are eye opening to both of us. The most encouraging thing I see is that these kids want to make it work. They play the game to get the final result. The reality is that they see money plays a direct role in their future. Now, whether money equals happiness, that is totally different experiment. But whether we like it or not, money is what drives these kids and all the choices they make. So, it is our responsibility as members of this community to show these kids we care about their future, a future that will affect all of us. We need to have more conversations about money with these kids. We need to be role models and examples on how to earn money and use it wisely. It’s hard as most adults struggle as well. But these young people are what could turn the whole system around. They are how the economy will change. Reality Check is one of many examples of how to shape these students into productive cit izens. Watching and participating in this with these kids has been rewarding for me and I think really made an impact. And even if it changes one or two s t u d e n t s ’ w a y o f t h i n k i n g , t h a t i s a n accomplishment. But most of all, it is hopeful for our future.

The most

encouraging

thing I see is

that these

kids want to

make it

work.

I had a nickel for every time I’ve been asked that question this

past year I would be rich…so they say. Therein lies the seed inspiration for taking this two-year plus still unfolding journey of creating the documentary film Money & Life.

As a youngster I always had a sneaking suspicion that real wealth was not denominated in dollars or even material accumulation and that our inalienable rights of “life, liberty and the pursuit of happiness” were not made secure by our financial portfolio. But as I grew into adulthood in the ‘80s and ‘90s something felt inherently awry in our modern culture that seemed to put money on the altar of all our aspirations. When did our lives become servant to the king of money? And at what cost? How d id the pursu i t o f happ iness transmute into the pursuit of money?

The financial crash in the fall of 2008 and the ensuing economic crisis (that we still find our country in today) felt like a siren song bringing this false god to light. Don’t get me wrong, I am not anti-money or promoting a return to the Stone Age. Money is one of the most brilliant human inventions ever developed to connect human gifts and resources with human needs. This original purpose has

enabled and advanced the human experience in ways whole books have been written about. But, like all technologies of human creation, its usefulness is based on its design and its design either becomes obsolete or must change with the changing of times.

I think it’s safe to say that we are living amidst a great changing of times. I was newly venturing into the field of documentary filmmaking as this truth was making itself ever more apparent to me through the rapid evolution of social networking and diverse media technologies, through the dilemmas of climate change and growing ecological concerns, and through the first African-American elected president, to name a few notable hallmarks. The financial crisis s e e m e d t o m e y e t a n o t h e r manifestation of these changing times and I thought it would be a shame to waste such a good crisis (written with great empathy for all the suffering it has caused for so many). In a nutshell, that is what motivated me to begin the project of Money & Life; to create a film that might inspire us to look at our relationship with money as individuals and as a society and begin to ask, “Is this what we really want?” And if not, how do we begin restoring our relationship to

Katie Teague is an independent documentary filmmaker working in the growing field of transformational media. In 2009, she founded Intentional Films, now Storm Cloud Productions, LLC, for the purposes of bringing forward Money & Life, a feature-length documentary film exploring the nature and potential of money and the possibility of leveraging the global economic crisis as our greatest opportunity for realizing our greatest human capacities. Storm Cloud Productions is committed to bringing inspirational educational media to the social change process.

Katie's post-graduate background is in developmental psychology. Prior to filmmaking, she had a counseling practice in Seattle, Washington, where she worked primarily with individuals in the realm of personal growth and finding a deeper fulfillment in their lives.

Katie brings years of study in psychology and human development from an array of orientations to her work as a social and spiritual change agent.

“Why Did You Choose To Make A by Katie Teague

If

10

money such that it serves the harmony and wellbeing of all life, and is once again the servant it was meant to be?

Little did I know at the outset what I was getting into. That’s a good thing, because absent the naiveté I probably would have turned my back on the challenging project. Standing chest deep in it now I wouldn’t trade it for any amount of money. Two years later, I realize I have been on an odyssey of experiential PhD proportions. It started with my own deep ignorance about what money actually is, how it is created, and how it has come to govern our lives by dictating unconscious beliefs and behaviors. I have had the incredible privilege of sitting and talking with cutting-edge thought leaders, economists, currency designers and spiritual teachers from around the world, each offering me a valuable perspective on the nature of money and the crisis/opportunity that faces us today.

Each interview has opened me to some new understanding and deepened my conviction that our greatest leverage point for creating a more sustainable and equitable world – a happier world – is through the portal of money. But it will only happen as we each become more aware and awake to the true power of money as rightful servant, and decouple it from its conflation with real wealth, which causes us to pursue money for its own end, often regardless of its destruction and

externalities. This awareness alone is no small thing. I’ve had my head in this stuff solidly now for two years, studying and learning while producing and directing and I would still profess to be only a beginner.

Speaking from direct experience however, the journey has been more liberating and illuminating than I ever could have imagined or designed. This is true whenever we take on the challenge of bringing the unconscious to the l ight of consciousness. And I think nowhere more do we

take for granted and sleepwalk through our actions than in our dealings with money. And we live in a world now – the modern world – that is pervaded and dominated by money, meaning that our lives have become more dependent on money than at any other time in history as we have monetized more and more of nature and more and more of our relationships with one another.

Money is virtually everywhere and in everything. And its power can work for good or bad.

What I took for granted at the outset of creating Money & Life included the truth that money is a human artifact based on human agreement. The artifact is the thing that we ordinarily think of as money, but it is given its power with human intention, with agreement between two or more people. We can see throughout time that the thing itself has changed (from cattle to shells to gold to paper to binary numbers) so the essence of money

Movie About Money?”

...money is a

human artifact

based on human

agreement.

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must be something else. Money & Life has become a quest to understand that something else and hopefully to bring that essence into common dialogue such that we re-awaken our citizenry from the stranglehold of identifying now as consumers and being valued by the volume of our consumption. How ultimately satisfying is it to be seen and see others as consumers? Surely we know in our deepest heart that we are each more than consumers and each more intrinsically valuable than our net worth. And yet we’ve devised an economic system that fails to account for the real wealth of being human or the real wealth of natural living systems.

What I simply did not know about the mechanics of modern-day money is that its creation – money is created by banks lending it into existence with

interest – manufactures a perception of scarcity where there need be none and puts us at odds with one another in a continual dash to service the ever-growing debt that is our money supply. If this is confusing to you, don’t worry or feel stupid because you are in good company. For people of this country it is astounding how many of us simply have no understanding on the basics of money, the single most influential “thing” pervading and dictating our lives. Realizing the depths of my own ignorance, while daunting, has inspired me even more to bring what I have been learning into a feature-length feast that I hope both educates and prompts a mobilization of

action that – from my vantage point – is clearly already afoot. Maybe you have heard the reference to the “new economy?” It’s a trickle-up, grassroots movement happening from the hearts of people like you, from the space of new magazines like this, from the efforts of life always seeking a more beautiful world. Not because where we have been is bad or wrong but because life seems to organically develop in a direction of ever-increasing wholeness and order, through cycles of breakdown and breakthrough. There are many who feel we are in the blessed and precarious space of breakdown that is harbinger to breakthrough. And the breakthrough will include new systems that reflect a new consciousness of this new age of the inter-connected planetary citizen. I feel that the money system will lead the way, and that we are right in the middle of this uncomfortable shift.

The complexities are many in connecting the dots between money, the economy, the financial world and the breakdown of social cohesion, the loss of community, and the crisis of ecological destruction. Maybe the economic crisis has created an awakening and growing awareness in you already. Certainly it has touched all our lives in one way or another. It’s my hope and intention that Money & Life plays a significant role in helping further the awareness of the dots that need to be connected. Suffice it to say here in this short article, it seems we have reached the limits of the money-game as we have known it the past several hundred years.

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As empowered citizens of the planet, in this most amazing time to be alive on the planet, we get to ask what is most important in our lives. What is the real wealth that enriches our lives? What gives us meaning in this human experience? Then how do we begin to re-design the brilliant invention of money to serve that, to serve the life we have been given so generously? I am in the very early stages of post-production on the film and am hoping for release far and wide by the middle of 2011.a continual dash to service the ever-growing debt that is our money supply. If this is confusing to you, don’t worry or feel stupid because you are in good company. For people of this country it is astounding how many of us simply have no understanding on the basics of money, the single most influential “thing” pervading and dictating our lives. Realizing the depths of my own ignorance, while daunting, has inspired me even more to bring what I have been learning into a feature-length feast that I hope both educates and prompts a mobilization of action that – from my vantage point – is clearly already afoot. Maybe you have heard the reference to the “new economy?” It’s a trickle-up, grassroots movement happening from the hearts of people like you, from the space of new magazines like this, from the efforts of life always seeking a more beautiful world. Not because where we have been is bad or wrong but because life seems to organically develop in a direction of ever-increasing wholeness and order, through cycles of breakdown and breakthrough. There are many who feel we are in the blessed and

precarious space of breakdown that is harbinger to breakthrough. And the breakthrough will include new systems that reflect a new consciousness of this new age of the inter-connected planetary citizen. I feel that the money system will lead the way, and that we are r igh t in the midd le o f th is uncomfortable shift.

T h e c o m p l e x i t i e s a r e m a n y i n connecting the dots between money, the economy, the financial world and the breakdown of social cohesion, the loss of community, and the cr is is of ecological destruction. Maybe the economic cr is is has created an awakening and growing awareness in you already. Certainly it has touched all our lives in one way or another. It’s my hope and intention that Money & Life plays a significant role in helping further the awareness of the dots that need to be connected. Suffice it to say here in this short article, it seems we have reached the limits of the money-game as we have known it the past several hundred years. As empowered citizens of the planet, in this most amazing time to be alive on the planet, we get to ask what is most important in our lives. What is the real wealth that enriches our lives? What gives us meaning in this human experience? Then how do we begin to re-design the brilliant invention of money to serve that, to serve the life we have been given so generously?

I am in the very early stages of post-production on the film and am hoping for release far and wide by the middle of 2011.

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As a child, growing up in my Dad’s house, I could hear him whistling this tune almost every day as he returned home from work. Truth is, I believe this song influenced me to have a brighter outlook than most of my peers. What could go wrong in my house when my Dad was always so cheerful? Things seemed to come easily to my family. Little did I know how hard Mom and Dad worked to create my world. Life was good!

“I’ve seen fire and and I’ve seen rainI’ve seen sunny days that I thought would never end”

Fire and Rain, lyrics by James Taylor

Boy, could anyone argue that the past five to ten years has been anything but TOUGH? Faith, commitment, and determination are traits with a lot in common. They require discipline, optimism, and a firm belief in positive future outcomes. All of these traits sustain a person when times are tough. Our strategies have been questioned and our confidence severely diminished during the last few years. Trouble hasn’t been isolated to finance, but has extended to every aspect of our culture. We have laid an egg!

Money-- what is it? I’m hearing this question more and more, but phrased as, “What do we do now?” Doorways to opportunity are closing in the wake of the economic unraveling we have witnessed, possibly putting the American Dream out of reach for generations and taking security away from many today.

Kenny Watts is president & owner of Beyond Capital Financial Management Group, Inc., a full- service financial planning service firm. He has pursued a career in financial services for more than 26 years, making his home in Meridian, MS. Beyond Capital offices are located in Meridian at 2211 5th Street, Suite #107. Beyond Capital sponsors this publication, “The Purpose of Money”.

“You are my sunshine, my only sunshine; you make me happy, when skies are grey.You’ll never know dear, how much I love you, please don't take my sunshine away”

You Are My Sunshine, lyrics By Doris Day

Rescue Meby Kenny Watts

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Excellence has been trumped in favor of excess, veiled as success. Maybe we should rethink our assumptions about money and how we should relate to this instrument of trade. Our e-magazine is a project to do just that; examine our feelings about money and attempt to peel back the layers of hype and hustle that have caused so much trouble.

We have seen an overabundance and severe shortages of money leading to the widespread use of damaging financial practices. There is no one to blame, specifically, we are in this mess together.

Over the past 10-20 years, debt has been amassed to tremendous levels. We, individuals and our public entities are in debt to the extreme! We even have new terminology, definitions, and a lot more zeros to describe our indebtedness. I have little confidence that the financial infrastructure is as sound as we want to believe due to the imposing levels of debt. The presence of debt drives poor decision- making, while shifting control from the debtor to the creditor. The debtor becomes ens laved to the creditor. This type of servitude is not the American Dream and is inherently weak and volatile.

Debt is addicting. The use of debt financing to acquire cars, clothing, food, housing, and even businesses has contributed to economic growth, at times. The use of debt has also led to economic chaos at times. We must get debt under control and get out of debt in every instance possible if we are to reach any real freedom.

“Life is short, even in its longest days”

Longest Days, lyrics by John Mellencamp.

What is the purpose of money? We are presented with a moment, an unprecedented opportunity in our experience, to rewrite our understanding of money and the influence it plays in our lives. This “moment” is our catalyst for this e-magazine project. Technology today allows for innovative paths of communication. I encourage you to take advantage of this incredible resource to participate in this project. Let’s not become complacent if conditions appear to improve. Let’s avoid the temptation of returning to old habits. We know how that choice could end.

Instead, join us in taking a fresh approach to money and what it means. Let’s look at the instrument we call money, how we use it, and what our expectations are of money. We may find solutions to

o u r f r u s t r a t i o n s a n d opportunities to find a little peace. We could find that we can be more successful and satisfied than at any time in our experience.

Life is good. But we have seen fire and rain. We have seen sunny days we thought may never end. Life is short even in its longest day. It is time to get over the influences tempting us to spend excessively. There is

room for ambitious goals without excess. There are means to grow without waste. We simply have to make better choices. Put away the phones, get away from the television, and develop outdoor hobbies. I am not suggesting settling for less, but perhaps we will discover that what we have is all right.

Thank goodness for these hard times. I can’t wait to hear from you. Let’s get rescued together.

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We must get debt

under control and get

out of debt in every

instance possible if

we are to reach any

real freedom.

The Doctor Is In: A Prescription An Interview with Doc BraswellMaureen Lofton

Maureen Lofton is herself an entrepreneur, having started her own writing, editing and marketing firm, To The Point Communications.

“To me, it’s an assignment from God. Whether or not I’m getting paid is kind of irrelevant. I’ve always been interested in business. My degree is in business. I recognized there was a real need for people to know how to do business and most of them don’t know how to start a business. I’ve developed a lot of skills and I know how to do this. God puts us on earth with certain abilities. We then develop the skills that position us to do His work. This is my area, someth ing that ’s desperate ly needed. I’m now trying to discover someone I can groom—mentor might be a better word—to take on this job. I’m 82 and I know I can’t do this forever but I will as long as I’m able to do it. Life has meaning in direct proportion to the contribution you make to other persons’ lives. I know how to do this and I know it’s needed.”

In 25 years, what are the one or two constants you can define—the challenges, questions or issues that haven’t changed?

“The availability of capital is one of the main things, especially to people who don’t have access to capital or have credit problems. They may have good ideas, skills and a market for the product, but just can’t get the money together.

“In the operation of a business, there are a few key things. Doing taxes right is one of those. Few people r e a l i z e w h a t a n a w e s o m e responsibi l i ty that is. They’re responsible for collecting all kinds of taxes and paying all kinds of taxes. A lot of them try to ignore it or just avoid it and they get themselves into trouble. Several good businesses that I have known didn’t do their taxes right and lost it all. Failing to pay taxes may result in fines and fees and, sometimes, what you end up owing can be twice as much as the original tax liability.

“Another weakness that I frequently see is the financial management of a business. Many of them don’t know anything at all about accounting. It overwhelms them and intimidates them and they don’t really look at the numbers. I use a simple tool to teach them about accounting—the profit and loss statement. I tell them, ‘This is a management tool. You need to

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After a full career, why did you decide take on the job of developing entrepreneurs, first at MSU and then for free at the EMBDC? What makes this particular work so valuable and rewarding to you?

for Developing Entrepreneurs

look at this every day. If you fail to do this and are profitable regardless,, it’s probably going to be an accident.’ When starting a business, you’ve got to determine what your gross sales need to be and what your expenses are expected to be. Do the market research. There are many sources available to assist in financial forecasts.

“Another weakness is managing employees. Some of these bosses have never been a boss before. I was a manager at AT&T for many years and they taught me that competent management of employees is crucial. So, taxes, accounting and managing people are critical factors in any business.

“Another major factor is giving excellent customer service. If you don’t realize the customer is the most important person to your organization, you will fail. The customer is not always right but they’re always the customers. They’re the only reason you have to exist. This is the most important relationship that you have.”

Concerning the lack of capital, how do you work through that with someone, especially if they have a credit issue?

“I haven’t found a way to do that. I’m not the one who makes the decisions about the money and the banks have some pretty hard and fast, canned formulas they look at. If you don’t meet the formula, they don’t have a lot of flexibility. I remember one guy—a machinist here in Meridian—making tools and parts for a company in

D.G. “Doc” Braswell enjoyed a successful career as a manager for AT&T. Upon retirement, he had the opportunity to share his skills and expertise with others, working for almost another quarter of a century nurturing fledgling entrepreneurs through a program at the Meridian Campus of Mississippi State University. When he grudgingly retired again at the age of 81, he wasn’t through yet. He decided to continue to put his wealth of knowledge to work –this time as a volunteer at the East Mississippi Business Development Corporation. He shared his observations and experiences during an interview with Maureen Lofton.

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Seattle, Washington. In talking and hearing what t h e i r n e e d s w e r e , h e recognized that one of the things this company was not making was a little clevis [Editor’s note: a u-shaped device with a pin; used to

attach one thing to another.] He told them, ‘I can make that’ and they said, ‘Okay, get tooled up to do it and we’ll buy it.’ I think the annual sales when we looked at it were going to net him somewhere around $65,000-$70,000 a year for a part-time operation and the only thing he needed was a little machine shop in his back yard. He needed money to buy that equipment. But he couldn’t get it. I remember he and his wife both came in. Between the two of them, they were making about $75,000 a year but they had credit card debt somewhere around $30,000. About all they were doing was paying interest on the credit card and their credit history was crazy. He missed an opportunity and there wasn’t anything I could do for him and, of course, the bank couldn’t. He missed the opportunity to really make himself a lot of money very easily. He had the skills to do it, he had the market given to him, but he couldn’t do it because he didn’t have the money.”

Do people frequently come to see you and, as you talk about the profit and loss statement, a business plan and a financial spread sheet, say “Hey, this is complicated. I thought this was going to be fun” and you stick a pin in their bubble?

“That most frequently happens in my two-hour seminar. Out of 200-300 people or more who attend these seminars annually, only 10-15 percent of them will return for further assistance. However, I’ve had people working on their plan for 10 years or more. I’ve been working with one lady for 12 years. She wants to start a day care center and I think

she’s going to do it this time. She needs money but not much. She’s going to rent a place and she’s saved up $10,000. The banks are talking to her and she’s very excited.“Approximately 70 percent of the businesses that start up in this country fail within the first two years. My track record is a heck of a lot better than that. Of the people I’ve worked with, only about 10 percent have failed. I don’t really know how many I’ve helped start—probably 600 or 700. One gift shop I worked with failed and, in my opinion, it was because of their religious convictions. They worshipped on Saturday and wouldn’t open their store on Saturday. Saturday is the biggest sales day for any kind of business. Another example is electing not to sell beer in convenience stores. In convenience stores, beer and gasoline are the big draws. You don’t make a large profit on the sale of gasoline and beer, but it brings people in. “Of ten , peop le come in w i th unrea l is t i c expectations. They really haven’t looked at the profit and loss statement projections objectively. Sometimes after we finish with projections, I say to them, ‘Go home and think about it. You might want to make some adjustments. As it looks now, it’s probably not going to work.’ I don’t just help people start businesses; I help people make informed decisions regarding starting a business. Avoiding a failure is just as important as starting a successful business.”

So, is it a good idea to start small?

In most cases, I think so. I’m working with a lady whom I’ve been dealing with for a couple of years off and on. She’s got wonderful recipes for cookies. She knows she’s got something that’s kind of special. You can’t make food in your home kitchen and sell it. It’s against the rules. But she’s decided she’s going to go for it and has found a place that’s a good investment. She’s going to open a cookie house, a gourmet cookie house. She has a good plan and I believe it will work. Another person came

$

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to me and talked about opening an upscale market. I had some serious doubts about the potential success of this venture and expressed my concerns. However, this business has been extremely successful and is continuing to grow. This person recognized a niche and has really worked hard to fill that niche. It is working.

“A number of people have tried to start businesses on the internet. Generally speaking, they’re not very successful but, at least, they didn’t have a lot of investment, so they didn’t lose a lot. You have to have an understanding of how to do it. There are a lot of skills and strategies you need to know to be successful selling on the internet.

“No matter how you start a business, don’t invest in anything that’s not going to produce revenue for you. I remember a person who wanted to start a business and decided to purchase a building and land in which to start a business. I advised him against buying the real estate. Most of the building space was not utilized for his business. His business was not successful, due partly to the huge mortgage payments that he had on the real estate. If you can find an appropriate place to lease, that is usually a better decision. When you buy real estate, you’ve gotten yourself into another business--real estate. Borrowing money to purchase real estate to start a business is generally not a good idea.

“For retailers, you do want a good line of inventory. The more inventory you have, the more likely you are to sell it. Also, absentee management doesn’t work. Don’t start a business and assign someone else to manage it. And don’t quit your day job. The business will probably not provide a lot of profit to in the beginning stages. I hammer away at this. If you’re thinking that becoming self-employed is an easy way to become rich, enjoying a lot of free time, not working so hard while making more money, you’d better not try it. That is usually not the case. In many cases, you’ll work harder than you

ever worked in your life f o r l e s s m o n e y . However, on a positive note, many people that I know have become wealthy operating a small business. It is p robab l y t he bes t opportunity that we have in this country to become wealthy on our

own initiative in our own lifetime.”

Then you should look on the new business a s a p a r t - t i m e income?

“In most cases, you can’t expect a start-up business to even break even the first year. I’ve

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seen exceptions to that. A local auto repair shop is an example of that. The owner had been a salesman and manager of a similar business for several years. He had established an excellent relationship with customers and he gives great customer service. He borrowed $30,000 as working capital to start his store but he never used it. A few months later, he paid it off. He never needed it because he hit the ground with such force. It was

such a good business that, in a year or two, they decided they didn’t have enough space, so his son opened up another business across the street. That’s a good example of knowing your market and knowing how to build a loyal customer base.

“In most cases, if you’re starting a business from scratch, it’s probably not going to pay enough to live on for the first year or so, so you’d better have another resource. If you’ve got a job paying good benefits, people sometimes fail to consider the

value of that. If you go into your own business, you don’t have a benefit plan except what you provide for yourself. A lot of people don’t ever stop to think about that.”

Of the people who succeed, how many of them still love what they’re doing a year or two or three later?

Most of them do, or they’re not successful. I think entrepreneurs are born to be. There are certain traits, quirks and characteristics that need to be a part of the entrepreneur’s personality. If you’re a hard worker, if you’re focused and passionate about it, then I believe that you have a greater chance to succeed. But you also need to know how to manage, although you can learn how to do that. You need to know how to make decisions, good decisions, and be able to deal with innovation and the changing market and the competition.

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“The rapid change in technology is a significant factor. The electronic and photography industries are good examples. Years ago, I worked with a lady who opened a shop to sell recorded music—CDs. She had a great business and knew the market. But there came a point where people were downloading all that stuff from the internet. The market changed and she was smart enough to just get out of it. She had the skills and she knew how to buy what the public wanted, but she also knew when to quit and she did. You do need to be sensitive to changes in the market, and you either adjust or you exit.”

How important is it to have a spouse, parents and children behind you?

“I believe that is very important. When I begin advising them about becoming an entrepreneur, we talk about some of those factors. I also tell them there are other considerations. Education, experience, health and a family and other network of support are all very important.”

So is the message that you can make a lot of money but that really shouldn’t be the reason you go into business?

“The first reason you go into it is because you are a dyed-in-the-wool, passionate entrepreneur. Then discover something that you love to do, something that you know how to do, and something that fills a need. Following that, you need to build a network of relationships and then develop a plan. As I tell them, your idea today may not really work but, if you’re really an entrepreneur, you’ll be back and you’ll be looking for other ways to do this. If you’re really a passionate entrepreneur, you’re probably eventually going to start a business.”

Doc’s  Tips  for  Healthy  Businesses

1. You  must  LOVE  what  you  are  doing.              A  large  percentage  of  businesses  fail  within                            the  first  two  years.  Enjoying  the  experience                is  cri<cal.2. You  must  KNOW  what  you  are  doing.              Know  the  marketplace,  know  the  industry,              know  how  to  manage  a  business.3. There  must  be  a  MARKET  for  your  product  

or  service.              There  must  be  enough  poten<al  customers              who  are  willing  to  spend  sufficient  money                to  jus<fy  star<ng  the  business.4. You  must  be  able  to  build  a  network  of  

good  RELATIONSHIPS.              Customers,  employees,  vendors,  bankers,              accountants,  compe<tors,  other  businesses,              etc.5. You  must  have  a  PLAN.              If  you  fail  to  plan,  then  you  plan  to  fail.

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hen you start out in the freelance world, the most agonizing moment is when a potential customer looks at you and says, “How much will it cost?”

”In my experience, people starting out (myself included) always low ball the answer to that question. The result? You get burned up trying to deliver a project, all the while knowing the harder you work on it, the less you make.

Clay Hamilton is a self-employed, reinvented baby boomer. In the past, he has served as webmaster and IT manager for higher education and corporate America. He is currently the head geek of Nexus Hero, a program designed to help displaced workers find work on the Internet as well as help people start or expand a business on the Internet.

He also serves as a mentor to Netfishbowl.com, a female-owned Internet business that sells domain names, web hosting and web design.

Currently he is working on BABI, an online building and business inventory designed to help communities revitalize their downtowns.

He can be cranky if he doesn’t get one nap a week, is a vegetarian who occasionally eats chicken and is a practitioner of minimalism.

What Do I Charge?by Clay Hamilton

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So when you take on a job where you don’t bill on it by the hour, let me give you some guidelines on how to figure out what number you want to throw out.

First, you want to figure how much you ideally want to work. The American work ethic is 40 hours a week for 52 weeks and you get only Thanksgiving and Christmas off. So that would be expressed:

Hours Per Week X Weeks Per Year = Total Work Hours

Adjust this to your taste. For me, 30 hours a week for 40 weeks of the year is PLENTY. So for me:

30 X 40 = 1200

That means I want to work a total of 1200 hours a year.

Next, you want to figure how much it costs you to live for a year. This can be involved, so you may want to fire up Google Docs or Microsoft Excel to come up with a number.

You want to add up your expenses. Common examples are groceries, rent, car payment, student loan, computer payment, health insurance, car insurance, etc. If you pay monthly, just make a list of the monthly amount and multiply it times 12.

Monthly Expenses X 12 = Yearly Expenses

I’m going to use $1,500 as my monthly expenses and that means I need $18,000 to make it through

the year. It’s important to list all the expenses.

Now I have my base rate. If I divide my yearly expenses by how much I want to work:

Yearly Expenses / Hours A Year = Base Rate

So for me $18,000 divided by 1200 hours means I have to make $15.00 an hour just to cover my expenses. Let’s face it just covering expenses is not living. (Were you surprised at that number?)

Now it’s time to figure how much profit I want to make. I’m not crazy giddy, but I think clearing $20,000 a year for my effort is reasonable. That goes into my stash for the future.

So I add my desired profit to my yearly expenses:

Yearly Expenses + Desired Profit/Hours A Year = Desired Rate

So for me, $38,000 divided by my hours equals $31.50 an hour.

Now when I go to take a job I know I need to quote between $15.00 and $31.50 an hour, depending on how badly I want the job.

The important thing is to make sure you cover your actual expenses when quoting a price and include a reasonable profit for yourself.

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