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Business – Five Tips for Business Startups

Today’s article is a guest post from Howie Bick.

Howie Bick is the founder of The Analyst Handbook. The Analyst Handbook is a collection of 16 guides created to help current and aspiring Analysts advance their careers. Prior to founding The Analyst Handbook, Howie was a financial analyst.

Things To Keep In Mind When Starting A Business

Building or creating a business is an endeavor that incorporates a variety of different factors, and touches upon multiple different topics. Within the building of a business, there are lots of ideas to think about, like the amount of capital you may need in order to begin, the type of overhead or expenses you may have on a monthly basis, the type of market or demographic you’ll be catering to, and the type of competition that’s out there. The business landscape is one that requires business owners or managers to manage and handle a variety of tasks and wear multiple different hats at once. Keeping these things in mind, and having a good idea of what’s ahead, will be beneficial for anyone trying to build or create a business.

The Market or Demographic You’re Catering To

Each business or company has a particular demographic or market that they are looking to cater to. The market or demographic a company or business is looking to cater to, is often a group of people who have something in common, like a problem, an issue, or a desire they’re looking to solve. It can be something they need, desire, or want, but the business is looking to provide a solution or deliver the type of results their customers are looking for. Figuring out the market or demographic you’re looking to cater to, is a great place to start. That way, you can get an idea of the types of services they may be looking for, the type of products that may interest them, or the type of solutions they may be looking for. The way a business positions themselves, with their offerings to their customers, plays an important role in the way potential customers view them, and the way they’re viewed within the marketplace.

Competitive Advantages or Competitive Edges

Businesses that are able to carve out a particular niche, or area where they’re successful, often have a competitive edge, or a competitive advantage over the competition. A competitive edge is something that a business does better or more effectively than their competitors, or something that allows them to differentiate themselves within the marketplace. It’s an important element to any company or business, that’s looking to compete in a market where there are lots of options, and many parties looking to fulfill or satisfy their customers desires. Companies can develop competitive advantages through their prior experiences, the type of packages or services they offer to their competitors, or the type of knowledge or information they may have that others don’t. It’s something that’s important to keep in mind, when you’re evaluating whether you may be successful in a certain market, or whether you’re capable of differentiating yourself among the competition.

The Initial or Upfront Costs Associated With Starting

Every business requires a certain amount of investment, or capital in order to begin operating. Whether it’s getting a space and signing a lease, or acquiring the type of machinery you may need to operate, the costs associated with creating or building a business depend on the type of company you’re looking to build, and the types of products or services you plan to offer. It’s important to have a sense of the amount of capital or investment it may cost to create a business. It’s a tough situation when you decide to start a business and invest the capital or resources you do have, to later find out that you don’t have enough, or need to obtain more. By having an idea or a sense of the type of investment a certain business requires you can prepare or plan in advance or prior to creating the business and be better situated to develop or create the business you were looking to build.

The Monthly Costs or Expenditures

Similar to the amount of capital or investment you may need in order to start or build a business, having a sense or an idea of the types of costs or expenses that your business may accrue or cost on a monthly basis is an important metric to keep an eye on. The age-old business equation is revenue minus expenses equals profit. By having an idea of the type of expenses you may accrue, you’re able to get an idea of how much business you need to do, or how much revenue you need to generate in order to make money in a month. You’re also able to have an idea of how much capital or money you need to keep on hand to continue operating and continue running the business. The monthly costs or expenditures associated with a business is an important figure to keep an eye on, and to monitor during the operations of a business, and prior to starting or creating a business.

Personal Expenses Continue to Accrue

Whenever you’re starting something new, a new job, a new company, or a new business, it’s important to keep in mind that your personal expenses continue to accrue. In the beginning stages of building a business, it often takes a bit of time to get going, and to start making the type of money you’re looking to make. That’s why, it’s important to consider that even though you may be starting a new business or a new company, which is great and congratulations, that you’ll still need to find a way to pay bills and provide for yourself. It’s something that’s a bit of a struggle for a new business owner, who’s truly looking to build a business to support themselves, or to generate the type of income they’re looking for. Preparing and planning in advance is something that can be very beneficial to lightening the load and making the transition an easier process or ordeal for you financially.

Conclusion

Building a business is something that comes with lots of different ideas to keep in mind and brings in to play lots of different factors as well. The market or demographic you’re trying to cater to, is an important part of any business, as it’s the group of people or companies you’re looking to interact with and find a way to provide value to. The competitive edge or competitive advantage a company has, is important in a company’s efforts to stand out within a marketplace or find a way to differentiate itself among its competitors. By having a sense of how much capital or investment you might need to start a business, you can have an idea of whether you have enough to begin, or whether you need to wait longer, or figure out another way. Having that sense of how much investment it might require, can save you spending lots of your money on something that may not be feasible just yet, or a bit out of reach. The monthly costs or expenditures that a business requires, is important to know how much revenue you need to generate, and the type of capital or money you need to keep on hand in order to continue operating. A lot of what corporate finance is, is managing the finances behind a business, making sure that the business has what it needs to continue operating, and finding ways to continue to grow and develop the business as well. Even though you may be starting something new, and you need time to bring it into fruition, personal expenses are something that continue to accrue, and are important to keep in mind when building a business. All in all, creating a business is something that comes with lots of different factors, a lot more than the few we were able to highlight. We hoped this helped and shined light on some of the important factors to consider when starting or creating a business.

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my articles, please share them with others and subscribe to this blog.

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Personal Improvement – Habits and How to Change Them

I hope everyone is doing well. I am learning the ins and outs of being a REALTOR®. The kids are preparing to go back to school with a staggered schedule and a blend of virtual and in-person learning. AND, no extracurricular activities such as marching band, various band and choir competitions, etc.

This will be far different from what they are used to. They hesitant about their ability to do school work consistently outside of a classroom environment. We will have to help them to develop new habits to successfully reach their goals. Which brings us to our topic: Habits and How to Change Them.

Habits & Productivity

I recognized that habits are responsible for productivity at a young age. I grew up with undiagnosed ADHD and had trouble focusing on any given task. I would generally get bored and move on to something more exciting.

My maternal grandfather, whom I am named after, recognized this and pulled me aside to tell me a story one day. He told me of Bethlehem Steel and how they worked and worked, but just couldn’t seem to make progress. After continued diminishing profits and increased backlogs, the CEO brought in a consultant to tell him what the problem was. The consultant studied the company’s business and reported back to the CEO. His findings were that across the company, tasks were started, then paused, to jump to other tasks. This happened over and over again, delaying production.

His recommendation was to prioritize the tasks needing to be accomplished, with the most important task at the top of the list. But the biggest change was that they could not move on to another task until the current task was completed.

This practice was implemented and Bethlehem Steel went on to become the second largest steel company in the US.

This story had a big impact on me in that it drove me to develop the habit to focus on a task until either it was completed or nothing more could be done with it.

In researching the details of the Bethlehem Steel story, I discovered some interesting things. This happened over 100 years ago, (1918), Charles Schwab was the CEO, and the practice that turned things around is called “The Ivy Lee Method”. While Mr. Schwab may sound familiar, the ILM did not, but I recognized it as the basis for a lot of time management programs. Making a prioritized list is now a common approach for productivity.

The ILM requires that at the end of each day, you make a list of the six most important tasks that need to be accomplished the next day. Then you complete the first item before moving on to the next item. Any leftover items on the list move to the next day’s list.

This method is lauded as being simple to follow, so that makes it effective when practiced. But sometimes, having too many “To Dos” becomes daunting. It can become an impenetrable wall discouraging you from doing more.

Gary Keller ran across this when he was building Keller Williams Realty. What he realized, is that your list should only be comprised of one thing, as described in his book, The One Thing. That method involves doing the one thing that makes everything else in your day easier/better/more productive.

Knowing vs. Doing

Based on the ILM, The One Thing, and various models, it seems we have many models to follow to accomplish our daily goals. We know what needs to be done. Or at least can easily find out/figure out those things.

Some people find the real struggle is actually doing them. I find that it all boils down to what you are willing to do to achieve your goals. Excuses get made as to why you aren’t, can’t, or won’t do something. But they are just that: EXCUSES.

Here is something else that stuck with me from when I was younger: a Stephen King short story called “Survivor Type”. The story is a bit disturbing and somewhat gory, as Stephen King stories are want to be.

Synopsys: A doctor is stuck on an atoll after some bad decisions that ruined his life. He is determined to live. He then proceeds to do disturbing things to survive.

When I read this story, the question that kept running through my mind was “What would you be willing to do to accomplish your goals?” To me, that is the take-away.

If you are in the habit of staying in your comfort zone and your focus changes like a leaf blowing in the wind, it will be hard to accomplish your goals.

Habits

The first step is to have a goal.

Then have a heart- to- heart with yourself to determine what you are willing to do to achieve your goal.

Start practicing a model that will help you reach your goal. Do it daily.

Eventually, the practice of the model will become a habit. This is how you succeed.

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my posts, please share them with others and subscribe to this blog.

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Automation – Fluids Automation: A Primer

This article was originally posted on SOURCEZON‘s Knowledgebase.

I was asked to write a series of articles covering Fluids Automation, real time hydraulics, and automated fluid property sensors for addition to the knowledgebase at a friend’s company. I decided to cross-publish it here and plan to do the same with the other articles in the series. Please let me know what you think about it.

This is the first in a series of articles on Fluids Automation and associated topics. The intent is to provide some background and a current state of the topic in the industry. The plan is to cover General Fluids Automation in this article, then follow with articles on real time hydraulics software and automated fluids testing equipment.

Fluids Automation is a subject that covers segments including equipment, software, and services. It is mainly focused on the automation and enhancement of manual processes of fluids maintenance and optimization with regard to drilling and completing oil and gas exploration wells. 

Fluids Background

Traditionally, fluids are maintained by a technician commonly referred to as a “Mud Engineer”, “Fluids Engineer”, or “Completion Fluids Engineer”. They are responsible for maintaining physical and chemical properties of the particular fluid(s) being used, tracking fluid volumes, wet and dry chemical inventory, and making recommendations for drilling operations to maintain downhole pressures within the “Goldilocks Zone”. 

The Goldilocks Zone is where the pressure is less the amount needed to fracture the formation, which could lead to fluid losses, and more than the amount needed to balance the formation pressure, thus keeping the formation fluids from entering the wellbore and potentially causing a catastrophic “kick” situation. 

Part of maintaining the physical and chemical properties involves conducting tests. Some are as simple as filling the cup on a mud balance, taking the temperature with a thermometer, or heating the fluid to a set temperature then using a rheometer to determine how the fluid reacts under levels of shear stress; whereas others are as complex as extracting filtrate from the fluid under pressure, then conducting various chemical titrations to determine the chemical properties. 

In addition to testing, Fluids Engineers also must run hydraulic simulations under various operational conditions to confirm that the fluid’s current property set does not cause an excursion of down hole pressures outside of the Goldilocks Zone. 

This does not take into account the time spent on doing reports, actually counting inventory, attending daily safety and operational meetings, participating in evacuation drills, overseeing fluid treatments, and any special rig operations like cement jobs or displacements. 

For a twenty-four (24) hour day, a minimum of six (6) hours can be taken up by conducting the basic tests for a non-aqueous fluid, assuming one check each of the fluid going in and out of the hole every twelve hours. That is twenty-five percent (25%) of the day consumed by just testing.

For those six hours, you get four snapshots of what is going on with your circulating fluid system. To possibly make things easier to visualize, imagine your fluid system as a timeline that repeats every twenty-four hours. You get to see what is happening at 08:00, 12:00, 20:00, and 00:00, every day. 

That would be fine if you had a homogeneous fluid system. The problem is that most systems are not. Whether caused by “dusting up too much” or dumping all of the treatment in at the end of the tour (shift) instead of continuously feeding it in, this causes a variation in the system. And with only four snapshots a day, it is hard to determine if this is going on. This could lead to over or under treating the fluid depending on the representative sample that was tested. If the treatment was put in all at once and the sample represented that situation, then the treatment recommendation might be to either not treat, because the properties tested where they should be or to treat to reduce the properties, because they are too high. In either situation, the rest of the fluid set does not represent the sample tested, it gets no treatment or the wrong treatment. Luckily, experienced fluids engineers conduct spot checks to verify specific properties in between running the full fluid checks.

Fluids engineers also do hydraulic simulations, based on fluid properties and current or proposed drilling parameters, to determine downhole pressures, cuttings loads, (the volume of cuttings drilled and still being carried within the wellbore), and safe tripping speeds, (how fast you can move the drill pipe or casing in the wellbore without getting out of the Goldilocks zone of pressure; think of it like a syringe plunger). This used to be calculated by hand many years ago, but is now simulated by software. The fluids engineer is able to do multiple snapshot simulations based on different inputs, providing options for a go-forward plan. This software has the ability to simulate how long it would take for cuttings being generated at the start of the simulation to be carried out of the wellbore. This allows users to “see ahead of the bit”, understanding what their hydraulics and cuttings loads might look like under the inputted parameters.

Fluids Automation

The idea for fluids automation has been around for years. Companies have tried to develop “black box solutions” at a time when the required computing power was just not there. This resulted in limited outputs and only narrow scoped scenarios being able to be handled. 

Fast-forward to the aughts (2000-2010), where significant progress was made on developing accurate real time hydraulics software. This software was able to provide the same information that a fluids engineer’s snapshot simulations could provide, but instead of repeatedly inputting minor changes to the drilling parameters, it received a real time data feed from the rig operations. This allowed for continuous simulation of down hole pressures that real time actual measurements from PWD, (Pressure While Drilling tool), could be compared to. 

These early versions would just run continuous snapshots based on manually entered fluid parameters. It would not reflect changes in density until the software operator received notice that the density had changed. This would lead to differences observed when comparing the measured down hole pressure to the simulated pressure because the actual measurement would change as soon as the density started to change, while the real time hydraulics software output would not change until a new density was entered. 

Another limitation was that only a single wellbore fluid could be simulated at a time. This presented issues when pumping sweeps or doing displacements, causing those situations to not be modeled correctly.

There were other issues in how the cuttings were treated in the simulation. Since results were a series of snapshots, it did not take historical actions into account. If the rig stopped pumping, the simulation assumed no change during that time, then started from where it left off when the pumps came back on. It did not reflect cuttings migrating down the wellbore during this lack of flow.  

More recent generations of real time hydraulics software have all but eliminated these issues. They can still provide the snapshot lookahead, but additionally track cuttings transport in the wellbore over time, taking into account migration when not pumping. They also handle multiple fluids in the wellbore, pipe rotation effects on ECD, and gel structure effects on rheology. 

As implied above, fluid properties have an impact on down hole pressures, otherwise known as ECD (Equivalent Circulating Density), the down hole pressure when circulating or ESD (Equivalent Static Density), the down hole pressure when static or not circulating. The biggest influencers are density and rheology. Changes to these properties have the biggest impact on downhole pressures. 

Having automated sensors for density and rheology allow for data frequency to better reflect how the fluid system varies as it is being circulated through the system. The key is to have accurate API-specific measurements that can be consumed by the real time hydraulics software. This allows for the measurements to be utilized by any software or calculation that relies on API density and rheology as inputs. 

This fluids data can also be combined with the rest of the real time data from the rig to determine several things: 

  • What is currently going on (on the rig)? 
  • Is it being done as efficiently as possible? 
  • Are there any hazards occurring or likely to occur in the near-term?

Currently, these things are determined by trained specialists who monitor the data twenty-four hours a day. This allows them to pay attention to a maximum of three jobs, when operations are running smoothly. This capacity drops as soon as operations or events become difficult, requiring more focus from the individual.

Eventually, when the right minds get together, these questions will be able to be answered by algorithms. This will allow a single specialist to monitor ten or more jobs simultaneously, increasing capacity and efficiency. 

Such is the state of Fluids Automation as of the summer of 2020.

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my posts, please share them with others and subscribe to this blog.

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Personal – I Passed!

As I have stated in previous articles, since leaving the oilfield I intended to move more into real estate. Part of working towards that goal is to become a real estate agent.

I began attending an online Louisiana Real Estate Salesperson course and successfully completed it over the course of a month while taking a week vacation during the same time period.

I have now completed the next step required to become an agent by passing the state and national portions of the exam.

I will begin onboarding next week with a local office of a national franchise.

That’s all for now. I just wanted to let everyone know about my progress.

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REI – How do Outsource Your Property Search

I hope you are all well during these crazy times.

We are still doing fine and have been able to go back to the gym, so that is a nice expansion on our workout routine from the lockdown.

I have completed my 90 Hour Real Estate Salesperson training course and will be taking the national and state exams this week. #WishMeLuck

Today I wanted to talk about outsourcing. As a real estate investor focused on expanding, you continuously search for properties. There are numerous ways to accomplish that on your own, whether it is “Driving for Dollars”, (drive around looking for vacant properties), searching the MLS, tax sales, or any of the other numerous ways to find properties.

There is an issue with all of these methodologies in that if you are doing them, what aren’t you doing to work on your business?

So, why not outsource your search for properties?

Put in a little effort to document your criteria in a Property Search One Sheet and share it with anyone and everyone. This allows other people to identify properties that meet your criteria and bring them to you, thereby increasing the input into your funnel.

The people you share it with can be family, friends, acquaintances, and even property wholesalers.

Here is something I put together as my Property Search One Sheet.

If you are an investor, let me know how your business is going in the comments or you can contact me directly here.

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my posts, please share them with others and subscribe to this blog.

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Personal – Why Didn’t I Retire Sooner?

As I’ve stated in another article, I was given an early retirement package recently. And if you have read other articles I have posted, you also know that I have been preparing for retirement for a few years now. I am currently 52 years old and planned to be retired from the oil and gas industry by the age of 55.

But I wasn’t sure that we truly had enough saved and/or invested to cover things. So I kept on working.

Now, don’t get me wrong, I enjoyed most of the aspects of my job, but I was starting to get aggravated with the things I could not change or impact. And in one of my last positions, the amount of administrative busy work that was not HABU, Highest And Best Use, of my skillset.

With all of that said, being told that I was being retired early was a wonderful blessing!

Working from home for the last couple of months of employment and the subsequent five weeks or so has been a revelation. I see and hear people complaining about weight gain and complications from their chronic medical conditions during the pandemic lockdown. I did not experience any of that. In fact, my glucose levels are now sitting at a normal level, with fasting readings mostly below 100. They used to stay between 130 – 180. I have lost approximately 15 pounds.

I was also dealing with migraines due to some nerve issues in my neck. They were exacerbated by the constant stress of work.

Now, those are pretty much gone!

What I have realized over the last few days is that the stress from work was driving a lot of the issues I was experiencing. When I was still working, I would get to the end of each day and be too exhausted to do much of anything else. I would feel mal de ventre, (sick feeling in my stomach), due to worrying about the latest “crisis” occurring. It was so bad that for the last ten years or so, I rarely even had a casual drink because that would just add to the general malaise feeling, in addition to upsetting my glucose levels.

Now, I have none of those worries. I am content. I am spending more time with my family. I am preparing to take the real estate salesperson license exam to become a licensed realtor. I am continuing with real estate investing, looking for quality cash-flowing properties.

It begs the question, why didn’t I retire sooner?

Ultimately, the real answer is that I was not prepared to. After my job was changed and relocated in December, I started to figure out the HOW? of leaving the company. I have some answers, but not all. And that is OK. We have more than enough buffer to get the rest.

Cheers! from semi-retirement!

And, as always, let me know what you think in the comments. Ask questions, tell your story. If you like my posts, please share them with others and subscribe to this blog.

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Personal Finance – Due to…Your Position is No Longer Needed

The “R-word”.

Twenty-seven years.

For twenty-seven years I worked for a company.

In the span of these last five months I have had two meetings with my manager(s) and HR to let me know that due to market conditions, among other thing things, my position was being eliminated.

The first conversation was a choice between an early retirement package or working in another state. The second gave no options.

This is how I joined the ranks of the recently unemployed. It may or may not differ from yours, but that is not the point. I will lay out some guidelines to point you in the right direction, especially if you are feeling overwhelmed and not sure what to do.

What next?

“What next?” is the question you may be asking yourself. The first thing you should do is understand that this situation is not a reflection on you. This is not an indication of your self-worth. Especially at this time, thousands of people are being laid off.

Take a breather, relax, or, if possible, a mini-vacation. Let your mind recuperate from the stress.

Stay the Course or Change Direction?

The next step is to decide if you want to continue doing what you have been doing. Some of you have knowledge, skills, and talents that easily transfer to other industries while others may need to adapt their skills to new areas.

If needed, don’t be afraid to train for something new. We will discuss training in more detail below.

The point is, from my perspective, the oil and gas industry will not be booming soon, so don’t wait around for it to pick back up.

How Much Do I REALLY Need to Spend?

At this point, it is a good idea to review your finances. If you have not done so already, put together a personal balance sheet. This totals all of your assets and all of your liabilities. This will help you to visualize what resources you have and what debt you owe.

Then tally up all of your expenses. Look at this long and hard to decide what is essential and what can be cut or reduced. Examples can be premium movie channels, cable TV, any type of subscription that is not essential.

See posts on spending and saving money in the Personal Finance section.

What About Income?

File for unemployment benefits if you are able. The weekly payment amount varies from state to state and also depending on other factors like recent salary. In my case, I am eligible for $247 per week in unemployment benefits.

There should also be an additional federal benefit of $600 per week on top of the state benefit due to the pandemic. Your state employment website should allow you to indicate that the pandemic was partially or wholly the cause for your being released.

Now What?

At this point, you should have a thorough understanding of where you are financially, what assets you have, what bills you owe, and a good  idea on whether or not you will continue  doing what you were doing or establish a career in a  new industry.

If you are an IT Professional, it’s easy to transfer your capabilities to a different industry because the requirements are relatively similar, no matter what industry.

If your career was more specialized, say Drilling Fluids Technical Professional, that job description won’t show up in other industries.

Start to look at training opportunities for your new career choice. Your state employment website should have a section on training to prepare you for a different job. Pretty much every major job search engine provides you with a list of free training resources. Use them. Take advantage of the opportunity to add to your skill set.

You will get through this. You have the choice to be better for this. Seize control and be the best you can be!

Remember, if you have a real estate need, whether buying or selling, give me a call or shoot me an email. It doesn’t matter if you are outside of my area, I can connect you with a Rockstar Real Estate Agent!

Clint C. Galliano, REALTOR® 985.647.4479

And, as always, let me know what you think in the comments. Ask questions, tell your story. If you like my posts, please share them with others and subscribe to this blog.

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Personal – More Change – Opportunity Awaits!

The oil and gas industry is in turmoil and service companies, in particular, are reducing their footprint in an attempt to weather the double-pronged attack of oil price wars and pandemic lockdowns.

Until yesterday, I worked for one of those companies, as some of you long-time readers may know.

I received a phone call from my manager, and HR, telling me that due to the current environment, my position was being eliminated.

It is not a bad thing. I only took the position back in January because I was unsure of what I wanted to do when my regional position was eliminated. I figured that they went through a lot of effort to keep me in the company and I didn’t have an immediate alternative plan, so I worked the job in Houston.

Then the pandemic hit and everyone was on lockdown. Luckily, I was able to continue working, from home.

BUT, during this time, I realized that I did not want to go back to Houston for work. We decided that I would continue working, as long as I could do it from home, and as soon as I was told that I needed to show up in Houston, I would resign.

It seems things have worked out for the best, because instead of just resigning, I am leaving with an early retirement severance package!

Because of this, I am now free to explore other opportunities…One will be to continue to be involved in real estate, but to a larger degree. I will continue to invest, but now I am pursuing a realtor’s license.

I will also be available to consult on any innovation projects that might come my way. This will allow me to flex my mental muscle “coming up with cool shit” as a colleague is fond of saying.

I will also look for small businesses that the owners are preparing to retire with no one to take them over. I will only pursue them if they are profitable. It should be easy to make a good deal on something like that when the options are sell at a discount or shut it down.

Here’s to the future!

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Personal Finance – What Level of Concern Have You Reached?

Galliano’s Hierarchy of Concerns

I want to start out this article by asking, how are you? No, REALLY…How are you holding up with all of this unprecedented turmoil? If any of you readers need to talk, have questions, or need advice, please reach out to me here. (Link will take you to a contact form. Your information will not be shared or used to sell you anything.)

While I am classifying this under Personal Finance, it also has a lot to do with Personal Improvement. We are in the fabled “Interesting Times”. In the midst of a viral pandemic, with an oil price war going on, in addition to the main response in the USA to the pandemic has been to shut down most small businesses. This is not good for individuals nor the economy as a whole. And yes, there have been attempts by the government to provide support, with individual stimulus checks and various SBA (Small Business Association) loans with potential options for loan forgiveness, the implementation was far from ideal. There were large corporations receiving small business loans in the millions of dollars. Some people believe this is the fault of the government. In a way it is, but ultimately, it was left up to the banks who administer these SBA loans to underwrite and approve them. With some understanding of the underwriting process, it seems only natural that the businesses with the best chance of paying back the loans would get approved first and for the largest loan amounts.

OK, now that I have that off of my chest, on to the main topic.

What is your level of Concern?

Where are you with regards to your level of concern? I feel there is a hierarchy, more or less paraphrasing Maslow’s Hierarchy of Needs. I’ll call it Galliano’s Hierarchy of Concern. Depending on your situation, you should be able to relate to the level of concern.

Maslow’s Hierarchy of Needs

Each step in the pyramid parallels Maslow’s, so technically, it is Maslow’s, just through a different lens.

Survival

At this level of concern, you are just worried if you will live through the virus, if your immediate family will be able to eat, and you will continue to have a place to live.

Employment

This level is fairly obvious, but with a little more. Do you have a job? If you do, is it paying you enough to cover your needs? And if you have a job, is it one that makes you worry about level 1 concerns, like your health and wellbeing?

Savings

The next step up is Savings. Are you able to save enough on a regular basis? Are your current savings enough to carry you through should you become unemployed?

Retirement

This step assumes that you have the previous three steps in hand and under control. It is where you become concerned about retirement. Typically, this step is reached later in life, but not exclusively so. The main questions are “Am I accumulating enough to support me through retirement?” and “How soon can I retire?”.

Reallocation

Similar to the previous step, this step assumes you have the underlying foundation of the other steps under control. Reallocation should be a regular practice for your portfolio to ensure it is optimized for your goals, but in times like these, your concern can also be directed at weathering the volatility and what is the best investment for the current economy.

My advice with all of this, no matter what level of concern you are at, is to take action to improve your current situation. There are no quick fixes, only perseverance of spirit. If you are looking for motivation or direction, checkout my book recommendations. There are more than a few ideas on how to improve your situation.

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my posts, please share them with others and subscribe to this blog.

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Personal Improvement – Learn Some New Skills During the Down Time

If you are like a lot of people, you find yourself with a bit of down time thanks to stay at home orders and social distancing keeping people from gathering. I am lucky enough to be able to work from home. With it being a 14 day on, 14 day off rotation, I have had time to add a few skills to my tool belt.


Add something useful to your arsenal that will help you in the future. Some examples are videoconferencing, livestreaming, CRM, Marketing.

Below are some of the things I worked on:

  • Livestreaming – I learned to use StreamYard to allow me to livestream up to six webcams and screen sharing to multiple locations like YouTube and Facebook. My last two posts have links to the videos. It is a nice platform with professional tools.
  • Videoconferencing – While I was pretty familiar with videoconferencing, I was not that familiar with Zoom. I was able to learn a bit about it.
  • CRM – I use HubSpot’s free option for CRM (Customer Relationship Management). Though I previously only used it to track email opens & reads. I learned to manage lists, forms, newsletters, and marketing emails with it. This is going to make managing my local REIA a little easier!
  • Writing an eBook – As part of digging around in my CRM and learning more about it, I ran across a service that helps you to put together an eBook from existing blog posts to use as a lead magnet. I didn’t like the output, so I decided to tackle the project in earnest from a different direction. Look for it in the near future. He working title is “A Small Business Startup Primer”

What types of skills have you added to your bag of tricks so far?

Let me know in the comments or email me directly.

Be safe and take care!

And, as always, let me know what you think in the comments. Ask questions, tell your story.

If you like my posts, please share them with others and subscribe to this blog.

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