ALPHA ATHLETES - The Sphinx Magazine

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BOOK REVIEW 100 When seeking a loan, the CEO should be familiar with types and practices of different financiers. Among the different financiers are: Commercial Banks, Leasing Companies, Factors, Venture Capital Funds, Investment Banks, and Public and Governmental Financing Programs. A financial dossier should be prepared. It should contain pertinent information about the business and the resumes of owners and key managers, and company financial statements for the most recent three years. Keeping an eye on so-called X factors is a pre-requisite for maximizing financial returns. X factors are those activities that are subject to change and stifle efficiency. CEOs must keep abreast of operating and administrative costs known as “financial drivers.” The CEO or the chief financial officer must identify key activities and assign an impact ranking to each one. To keep performance in a high range, the management team must evaluate and reassess financial drivers. Many times, new businesses are started without an adequate legal structure. Being saddled with legal ability in excess of insurance is serious. A judgment creditor will look first to be paid by insurance, then turn to business assets and still if not fully compensated, to the personal assets of the business owner. Limited legal liability provides asset protection to principal owners and outside investors. There are a number of ways to structure a business to provide limited legal liability. It is relatively simple for businesses of all sizes to incorporate as a limited liability company or corporation. Even a sole owner should not rule out incorporating. When numerous investors are involved, incorporation can also be used. The operating procedures of the corporation are proscribed by law. One should monitor the limited liability company. If a business fails to renew a business license or pay annual state and local taxes, the status of the company is forfeited. When this happens, by law a business may revert back to sole proprietorship with no protection. Regardless of personal confidence in colleagues, it is wise to draw a buy-sell agreement in the Operating Agreement. If death occurs or a company is offered for sale, the buy-sell agreement details how the assets of the company will be dealt with. Once a business has been established, the CEO should turn to how to avoid risking a loss of investment. It would be naïve to ignore the possibility of risks. Foremost among the ways to deal with risks is the matter of insurance, especially health insurance. Other types of insurance are: disability, long-term care, and loss of life. Personal financial planners recommend at least three months of insurance money. Also, assets of the company should be evaluated. The portfolio of the company should be regularly evaluated. This includes intellectual property such as customized software, patents, copyrights and licenses. Exit planning is critical in case the sale or transfer of a privately owned company is necessitated by illness, disability or premature death. In such cases, a well formulated exit strategy will be invaluable. Disaster planning is also critical. Whether disaster occurs because of the “Acts of God” or are man-made, prudent measures must be taken to restore the business. Fall • Winter 2008 The Sphinx: www.APA1906.net Strategic planning is necessary if a business is to grow. Seed money is needed by virtually every business. Seed money is needed to explore new markets and product development opportunities. The world’s population is growing and emerging markets provide a wealth of new opportunities for growth. Reinvesting dollars back into the company is wise. Companies in virtually every industry should consider the idea of setting aside some funds for replacement of equipment. The key is to set aside funds long before visible signs of financial deterioration set in. Then, there are so-called “pop-up” cases when financial obligations appear at seemingly inopportune times. For example, operating equipment under lease provides for a buyout option at the end. This is an example of a pop-up item that requires advanced funding. If the option price is a significant payment, it may cause a harmful effect on cash flow. One must provide payment for investors. A way must be provided to compensate investors without draining earnings and profits. In public companies, a board of trustees is empowered to set dividend policy and payment to investors. A business may establish a debt sinking fund to acquire sufficient funds to retire debt obligations such as mortgages, commercial term loans and investor buyouts. A debt sinking also enables a business to accelerate repayment of debt ahead of schedule. Every CEO is faced with the tasks of maintaining profitable growth. Profitable growth represents new business and contributes financially to the bottom line. A certain level of annual growth in sales is needed but there must be a critical mass in sales revenue. Critical mass is the point on the scale where a company can exercise influence gain more favorably with suppliers. Devising a profitable growth strategy does not mean planning to bring in all forms of new business. The quality of the business is important. A good way to plan business development is by the acquisition of another company that has the right stuff. Growth does not automatically translate into a greater financial return. Sound planning and oversight are important for consistent growth. During a peak growth cycle, one must be on guard for financial deterioration in the form of late payments to key vendors and build up of accounts receivable. Managing growth also requires upgrading the business structure. Preparing an updated business plan is recommended as well as making technology upgrades. Similarly, personnel recruitment, training, and development will be necessitated. The Road to MegaSuccess aims to help CEOs and business people redesign and improve their financial management. Brother Hutt discusses all aspects of business, including insurance and legal procedures. He emphasizes that the bottom line in a profitable business is the financial line. The Road to MegaSuccess is a guide for both new and seasoned business people. In its pages, one will find practical advice for starting, growing and maintaining a profitable business. Brother Dr. Joseph T. Durham is Book Review Editor of Negro Educational Review, Inc.; President Emeritus of the Baltimore City Community College; and a member of Delta Lambda Chapter in Baltimore, Maryland
Success by Instinct: What Animals Already Know to Boost Your Career By William E. Boswell Dallas, Texas: Brown Book Publishing Company, 2006 (225 pages). Reviewed by Dr. Joseph T. Durham Can man—Homo sapiens— learn anything from animals? William Boswell, an Alpha Brother and a long-time executive with major companies, thinks so. In his book, Success By Instinct, Brother Boswell lists 14 animals from which humans can learn. He is on good scriptural ground. Proverbs 6:6 of Holy Writ says: “Go to the ant, thou sluggard, and learn from her ways.” Ants are among the animals that Brother Boswell lists. He says “Ants’ actions have often been described as resembling human civilization. Their daily activities rank extremely high on the scale of intelligence” (p. 32). He says that ants identify, organize themselves and diligently pursue the accomplishment of their goals. Humans should take a lesson from ants and establish goals and work diligently to achieve them. The ant is tenacious in achieving its goals. Human beings must be just as focused in the achievement of their goals. The other animals that humans should observe, according to Brother Boswell, are: elephants, chameleons, peregrine falcons, beavers, dolphins, hornbills and mongooses, geese, white-tailed deer, crocodiles, whales, dogs, alpha wolves, and prairie dogs. In this short book, Brother Boswell examines the behavior of the animal and makes application to human endeavor. He does not supply any justification for why these particular animals were chosen; and one has to wonder why they were chosen while others were left out. For example, why not the horse; or the bear; or the lion—the king of the jungle? Success By Instinct discusses 14 principles that the author has gleaned from his study of animals. These principles are not unique but Brother Boswell shows how each principle applies to human behavior in the business world. The first principle, “Know Yourself,” has been widely written about but Brother Boswell takes this principle and makes it interesting by describing the behavior of elephants. For one thing, elephants recognize and accept their physical attributes and potential for dominance but they avoid using these characteristics for that purpose. Brother Boswell admits that he had a tremendous fear of speaking in public but he overcame this fear once he realized that it was keeping him from reaching his goal in the professional world. He enrolled in Toastmasters International and took courses at Dale Carnegie and overcame his fear. He says, “Recognizing and accepting your personal weakness is necessary; however, developing a purpose to remove it is essential” (p. 8). Brother Boswell further states that elephants “practice activities such as recognitions, awareness and acceptance of their environment” (p. l6). Self-knowledge, self-acceptance, selfimprovement, and self-fulfillment are all important if an individual desires to fulfill his goals. A study of chameleons furnishes the second principle of success. Chameleons use their natural color to hide or blend into their surroundings. To accomplish one’s goals, you must be as adaptable as chameleons. The process of adapting to a new environment is called the acculturation process. It is a survival skill for chameleons and for humans. The BOOK REVIEW Brother Joseph T. Durham degree to which we adapt to a new environment will determine the level of success we achieve in a professional organization. He cites an individual who failed to adapt to the environment of an agency in which he worked. In spite of repeated counseling sessions, he could never make the adjustments necessary and so, he finally left the organization. Like chameleons, even though one may excel in an academic environment, one must make the paradigm shift and adapt to the new environment of the professional world, or one will fail. Peregrine falcons are cited because of their tremendous speed but less is known about the huge preparation they undergo to search for food to sustain life. Brother Boswell says that we “must demonstrate the same level of dedication and commitment to self-development as the falcons” (p. 48). Such investment is the key to success. Just as peregrine falcons do, he asserts, we must learn other skills based on environmental and other considerations. “Busy as a beaver” is an often quoted saying. The unyielding determi- The Sphinx: www.APA1906.net Fall • Winter 2008 101
Page 1 and 2: OLYMPIC GOLD MEDALIST BROTHER JESSE
Page 3 and 4: ALPHA ATHLETE: ALL AMERICAN PENN ST
Page 5 and 6: Above: Brother John Woodruff. Photo
Page 7 and 8: onships while attending Seton Hall
Page 9 and 10: citizens home, known as Brookline,
Page 11 and 12: gave remarks and presented certific
Page 13 and 14: Louis community. The mission of CTO
Page 15 and 16: NU MU LAMBDA Decatur, GA Mentoring
Page 17 and 18: the Dallas Morning News and feature
Page 19 and 20: FRATERNITY’S FIRST CAUCASIAN BROT
Page 21 and 22: Editor’s Note: Thirty-second Gene
Page 23 and 24: “ I am told that this group of me
Page 25 and 26: “ America knows we are here. Amer
Page 27 and 28: CONVENTION HIGHLIGHTS 3 4 8 9 8 Bro
Page 29 and 30: 102ND ANNIVERSARY CONVENTION NBC’
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Page 33 and 34: 102ND ANNIVERSARY CONVENTION Brothe
Page 35 and 36: 102ND ANNIVERSARY CONVENTION Army C
Page 37 and 38: GOING WHERE WE SHOULD BE Editor’s
Page 39 and 40: What scientists will also tell you
Page 41 and 42: Board, was applauded by the March o
Page 43: need for cash. The first test of fi
Page 47: members to be supportive of other t
Page 50 and 51: OMEGA CHAPTER Brother Kermit H. Bos
Page 52 and 53: OMEGA CHAPTER tice in Portsmouth in
Page 54 and 55: CORPORATE DIRECTORY 110 The Seven J
Page 56 and 57: LEADERSHIP DIRECTORY ALPHA PHI ALPH
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