Secure Value

Secure Value by Understanding the Technology Your Business Depends On

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There's a map for that

I've been enjoying the heat generated by  AT&T (NYSE: T) and Verizon Wireless (NYSE: VZ) conflict that Verizon’s “There’s a map for that” TV ads started.  Verizon compares the two networks 3g coverage areas with a "There's a map for that" response to a number of questions in a series of funny commercials.

AT&T responded with a series of ads featuring actor Luke Wilson.  If you notice Wilson’s folksy attacks on Verizon fail to directly refute the "There's a map for that" attack.  Every time one interrupts a game on tv I want to shout “C’mon, Luke, is the blue map really that weak?!”

Who is right?

Not for me to settle out here.

The VZ v T battle highlights an information security issue for small and emerging business owners and executives.  The tech companies talk to us with cutsey ads instead of facts.  The facts are often highly technical and not a lot of fun to wade through.  And many of us aren’t knowledgeable enough in the ways of the bits and bytes to effectively do the wading.  So we (as in we entrepreneurs, business leaders, business owners and execs) make our decisions as much on emotion and "gut feel" as we do on cold hard facts.

In a situation like picking cell phone service we might just make a gut decision that costs us more or provides us poor services. 

In working with technology this way in our businesses, it means we make decisions without the knowledge of how that decision will affect the confidentiality, integrity and availability of critical information or how that decision will affect your compliance with government regulations.

TIP:  You have your account and your attorney for financial and legal matters.  Find your trusted IT advisor you navigate the technology map.  He doesn’t need to be a specialist in any specific area, but a generalist that can act as a sounding board for when you want to make IT decisions. The right pick will help you be more secure, while also helping you select and use technology more successfully in your business.

Here's to VZ and T both being honest about what 3G is, network quality, coverage areas v. coverage populations and other important facts.

Secure Value through Tabletop Exercises: Three Sample Scenarios - CSO Online - Security and Risk

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December 01, 2006 — CSO — A tabletop exercise is a great way to get business continuity plans off the written page without the interruption of a full-scale drill. Rather than actually simulating a disaster, the crisis management group gathers for three hours to talk through a simulated disaster.

via www.csoonline.com

We don't spend enough time thinking about disasters ... until they happen .. this is a great article on a technique to put your best brains in thinking through scenarios using a technique called "Tabletop Exercises".

Secure Value by Planning Ahead for Bad Things

Bad Things DO Happen ... Or We All Die Sometime ...

Securing your business value isn't just about keeping the hackers out.  It is also about managing other kinds of risks including the very real prospect, given that we all die sometime, that a senior resource might die.  Without thoughtful planning the business might die, too.  My business, Jacadis, recently committed to Sequent, a Professional Employers Organization (PEO), to help us manage our human resources risk.  Part of their services include succession planning.  What follows is an excellent write up by Pat Carpenter, CLU, CHFC of Sequent's Retirement & Benefits Group.

Do you expect your business to die when you do?

Do you expect your business to die when you do?  If your goal is for your business to thrive, how do you intend to harvest the investment you’ve made? If you want your business to provide a continuous income stream after you’re ready to move on, think out and plan the transfer of ownership. Whether the business is sold to a partner, a competitor, a group of employees or to family member(s), there are four elements necessary for a smooth transition. These four elements include:

• A business that has value independent of the founder
• A realistic market valuation of the business
• Willing buyers, and
• An agreement that compels the sale and the purchase at the agreed-upon amount

As your business has grown, you have developed products and services that your clients need. Vendors count on you for part of their business growth. Your management team helps determine, and employees execute, the business plan.  As the business’s life cycle matures, your role has evolved from technician to visionary.  Clients, vendors and employees have deepening relationships. You can move on now.

Setting a realistic market price for the business should be determined by a CPA certified in valuation. He or she will analyze the books, economic conditions, market segment and growth potential. There will be questions about anticipated revenue, and new niche markets. The CPA will select which valuation method is most appropriate for your business and set a purchase price and a formula for determining any future purchase fluctuations.

Evaluating a potential buyer is the next logical step in your succession plan. Often, key employees or family members will have already indicated interest in purchasing the business. Do they have all the skills, vision and drive necessary to be successful? To thrive in a competitive marketplace takes more than being a good technician. In addition to figuring out ‘How much?’ and ‘Who?, you might want to invest in training for any deficient skill areas.

The agreements that compel the sale usually take two forms.

The first option is an employment agreement that defines the conditions under which stock, or phantom stock, is transferred to the successor owners. This provides the current owner “golden handcuffs” and the key employees an incentive. Usually the transfer is contingent on reaching certain productivity goals.

The second option is the Buy-Sell document. This describes the transfer of stock upon the death, disability or retirement of the owner. It delivers assets to the owner’s family while removing them from the business. These documents should be prepared by attorneys who specialize in closely held corporations.

In addition, both agreements need to be funded in order to complete the final transfer. This is usually accomplished by purchasing life insurance and disability insurance on the owner, payable to the business or the successor owners. Insurance provides the funds to purchase the stock. In this way, non-participating family members are gracefully moved away from day-to-day operations and dividend expectations.

Good planning pays off for everyone:  your clients, your employees, your family, vendors and creditors. They all want to work with a company that will thrive, even through a key transition. With proper tax planning, the business will provide an annuity for the owner for the next five to ten years. Your investment in the succession planning process could pay dividends for years to come.

Patricia Carpenter, CLU, CHFC

Vice President, Business Development

Pat Carpenter has more than thirty years’ experience working for and with emerging businesses. A veteran of three start-ups, she has spent more than thirty years of her career working in the life and health insurance industries as a field underwriter, group representative, broker and consultant. Pat has worked closely with business owners to create custom-tailored succession plans and wealth accumulation programs. She has analyzed financial strategies, plan designs, and employee incentives. In addition, she has educated people from line workers to Board members about how to optimize their employee benefits. Pat has earned the Chartered Life Underwriter and Chartered Financial Consultant designations from the American College.

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Secure Value by Planning Now for H1N1 to Hit Your Business

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I have to confess I have had that same "it can't happen to me" attitude about the H1N1 pandemic.  I've scoffed at the sterilizers my wife Jodi put around the house, at being taught how to cough and at all of the concerns people have. 

But I've learned that if you think "It can't happen" it just might.

I've alluded to the fact that I coach football.  I run the defense for the Patriots, a team of 16 fantastic 9 and 10 year old boys, just learning the tackle game.  Tuesday night we were down to 9 kids.  About two weeks ago, one of our players was diagnosed with H1Ni and we lost his services for a game.  The abscenes steam rolled since then. Tuesday night we had 9 boys at practice with the other 6 at home sick.  Not all of them had H1N1, but the resulting impact got me to thinking.  What if 50% of our company was out sick or quaranteened because of fever?

Great question.  And this week we have begun to plan for it.  Over the next week or so our management team is going to ask soem questions:

• How bad could it get?
• Can we function in that environment?
• Can we service clients? Generate revenues? Shift risks?
• Depend on our critical service providers?
• Are there any effective prevention measures we can implement at a company level? Require of our employees?

As we go I'll through my thoughts and findings up here to help you along .. because as I have found out it can happen to anyone.

Some links of interest I've already discovered (and which I'll update as I find new ones):

• Flu.gov which has lots of information for businesses and indiviauals
• Center for Disease Control

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