LBI-Feb-2017

FEB 2017
FRANCHISE PLAYERS
Local business owners bring big business to South Plains
Why Lubbock? Why Now?
See why now is good time to invest in the Hub City
Startup Tips
Know what to expect during the early phases of business ownership
Social Media
Learn the advantages of paid advertising on Facebook and Twitter
OUR CITY. YOUR BUSINESS.


FULL PAGE AD


FULL PAGE AD


AT YOUR SERVICE
WE'RE ON A MISSION. There's no place like Lubbock and there's nothing like Lubbock Business Inc. serving the South Plains business community.
Our mission is to build a business network for business owners, CEOs and managers, and to provide useful, strategic content that works for you and your business.
JOIN THE CLUB Receive a mailed copy of LBI by lling out the form located here: http://lubbockonline.com/lbi - or if you would like to receive multiple copies for your business location, call Victor Uriegas at 806-762-8844.
IF YOUR ADDRESS CHANGES
contact us at (806) 762-8844 or email [email protected]. Don’t miss out on a single issue of LBI!
WE WANT TO HEAR FROM YOU
The purpose of Lubbock Business Inc. is
to provide information vital to your business or industry. Don't see it here? Suggest a topic, or submit information by calling Matt Cardenas at 806-766-8659, or email [email protected].
LOCATION, LOCATION, LOCATION. There's always room for you in LBI, and if you want to be where all the other business owners are, then advertise with us by calling
Shoni Wiseman at (806) 766-8631 or email [email protected].
A word from the editor
Matt Cardenas
Last month we took a look at a great amount of data that showed good things are happening in Lubbock. One of the most notable statistics was that Lubbock’s population will soon surpass a quarter of a million residents, making the Hub City the 11th largest city in the state.
When a city begins to reach the amount of citizens Lubbock currently houses, it creates an exciting time for new business. Simple growth in population means there is a higher demand for new goods and services, as well as variation and innovation.
In this month’s issue of LBI we take a look at people helping this demand on two fronts. First, we meet area business owners and investors who help bring franchises and name brands to town. When it comes to this type of development, it shows big business why Lubbock is a strong investment and a great place to conduct business.
Second, we take a look at area entrepreneurs and small business owners. We speak with area experts on how to market to the community, what to know when opening a second location, and what to look out for during the startup phase of a business.
As Lubbock continues to grow, only good things will follow in our business community. More big companies will see the city's value, and more hometown innovators will create great new products and services.
To your success,
Matt Cardenas
Niche Audience Manager
Special Publications & Digital Products
Brandon Hughes Publisher 806-766-8610
Darci Heiskell
Vice President of Audience 806-766-8700
Karen Brehm Associate Editor 806-766-8717
Matt Cardenas
Niche Audience Manager 806-766-8659
Shoni Wiseman Sales Manager 806-766-8631
Pili Linares
Vice President of Revenue 806-766-8615
Carrie Przeslak Designer [email protected]
Victor Uriegas Subscriptions 806-766-8792
FOLLOW US ON


FEATURES
10 COTTONMARKETLOOKINGUP Cotton economist John Robinson
let’s area cotton growers know that
the market is doing well both
globally and domestically.
12 SOCIALMEDIAADS
Learn what the best circumstances aretopurchaseasocialmedia advertisement on Facebook or Twitter with these 7 tips.
14 PROS AND CONS OF
GOING FREELANCE
Being your own boss is an enticing idea, but be sure to know all the facts whenconsideringbecominga full-time freelancer.
18 FRANCHISE PLAYERS
Meet area business owners who invest their money in bringing franchise businesses to Lubbock, helping outsideinvestorsseethevalue
of the South Plains.
24 Q&A: MARKETING LOCAL Kevin Jones, owner of Chili Dog Café, gives his incite on what it takes to market to Lubbockites and ensure your business’ success.
26 Q&A:WHYLUBBOCK? WHY NOW?
John Osborne, CEO of the Lubbock Economic Development Alliance, takes time to examine what makes 2017 a great time for the city’s business community.
28 TIPSTOEXPANDING
Adrien Bennings, Regional director of the Small Business Development Center, give 5 key tips that business owners should consider before expanding with new locations.
31 Q&A:THINGSTOKNOW DURING STARTUP
Area experts Ray Laurent of the Small Business Development Center, and Ron Mitchell of Rawls Business College, go over what to know during the startup phase of a business.
ON THE COVER
STANDING FEATURES
4 LETTER FROM THE EDITOR
5 TABLE OF CONTENTS
6 CONTRIBUTORS
7 BUSINESS PROFILE
8 MANAGING MILLENNIALS
29 BUSINESS PROFILE
30 BUSINESS CALENDAR
37 RIBBON CUTTINGS AND
GROUNDBREAKINGS
40 BUSINESS SEEN
41 MOVERS AND SHAKERS
43 DBAS
IN THIS EDITION
Hillary and Justin Sharbutt were photographed by John Weast with various props from their businesses. The couple own several Lubbock businesses including Dunkin Donuts,
Blo Dry bar and soon to be opened BurgerFi.
lubbockonline.com/business 5
FEB '17


7
Ron Mitchell
Ron Mitchell,
CONTRIBUTORS
1
2
3
4
5
6
7
8
9
1David Perlmutter, Ph.D. is a professor and dean of the College of
Media & Communication at Texas Tech University.
2Adrien Bennings, PhD. is the regional director at the Texas Tech
University Small Business Development Center.
3Denise Marquez is the business reporter for A-J Media.
4Josie Musico
is the agriculture and regional reporter for A-J
Media.
5Sarah Self-Walbrick is a mass communications
master’s student in
the College of Media & Communication at Texas Tech University.
6Phil Terrigno is an Adjunct Journalism Instructor and MBA
candidate at Texas Tech. Ray Laurent is the
Associate Regional
8John Osborn is CEO of the Lubbock Economic Development
Alliance.
9
Ph.D. is Professor of Entrepreneurship, and holds the Jean Austin Bagley Regents Chair in Management in the Rawls College of Business at Texas Tech University.
10John Weast is a freelance
photographer in Lubbock.
Not Pictured
Director of the Small Business Development Center and specializes in business plan development.
6 LUBBOCK BUSINESS inc.


Phillips brings new technology to the oil patch
Aaron Phillips
Age: 31
I am from: I have spent about one-third of my life in each of these places: Kansas City, Amarillo and Lubbock. Occupation: AmpliSine Labs founder, president & CEO, and the creator of SitePro
Website: www.sitepro. com
How I ended up in this business: My business partner, David, and I were both studying industrial engineering at Texas Tech. We talked a lot about possibilities of venturing out on our own instead of bowing to the normal ow of things. As I went through graduate school for my masters and Ph.D., it occurred to me that when you’re a broke college student the potential upside of a startup company far outweighs any downside. The tipping point was when I realized I can either give other people my best ideas or I can turn those ideas into action and eventually launch a
full-on business. Not too long after venturing out, David joined me and suggested we look at applying our software to the oil and gas industry, which was experiencing a solid boom at the time. After a very successful meeting with a prominent company in Midland, we ended up fully developing SitePro.
The one thing I enjoy most about my work: Watching the software we create in action. Whether it’s controlling a remote facility in South Texas or North Dakota, opening and closing pipeline valves in the middle of New Mexico,
or simply watching a truck driver sign in to one of our electronic ticketing products, as a developer it doesn’t get much better than witnessing the bene ts and user reactions from a product or software you had a hand in making.
My business philosophy is: Keep pushing and don’t lose the urgency that lead to
your current position. In the software industry, you have to believe every time you take a day o , you’re allowing your competitor to jump ahead by a full day. Technology, in general, is one of those modernizations that lends itself to surprise competitors. It’s imperative
to constantly work and make progress as though every competing business is always breathing down your neck. If you don’t feel them breathing down your neck, it’s probably because they’re ahead of you.
What Lubbockites may
not know about AmpliSine Labs: We actually beat out Google and Microsoft on our way to being the rst people to successfully create a new type of wireless network that is touted to be the next major breakthrough in internet and communications.
The best advice I’ve ever received: There’s plenty of room at the top of the ladder, just not enough to sit down.
The person I most admire
is: I admire a lot of people for various reasons, but I can’t say that there’s one in particular
I admire more than another. Everyone has good and bad qualities, and it all equals out over time.
My family: My wife Ashley and I have been married for four years. We recently had our rst child, Ezra, who was born at the end of August.
If I could be anything, I’d be:
Exactly what I am now. I feel I’m where I am supposed to be, doing what I’m supposed to do and headed to where I need to be going.
I wish I knew how to: Relax. I am not sure if this is learned or just happens eventually, but currently if I don’t feel some sort of progress or purpose in my surroundings, I get antsy. The last time I tried to sit around and do nothing over a holiday was last Christmas. I ended up grabbing my laptop,
setting up a make-shift work station and creating my own home security DVR system instead.
If I could change one thing about Lubbock, it would
be: The drainage system on the streets. I’m pretty sure somebody poured out a Sonic Route 44 size drink the other day and nearly ooded the intersection at 98th Street and Indiana Avenue.
When I retire, I plan to: I would love to say that I would take it easy, but that would probably only last a few weeks. In reality, I love the grind, the ups and downs and constant challenges that owning a business brings day-in and day-out. I imagine
it’s similar to how an athlete feels when contemplating retirement. It would be nice to recover from the whole process, but the minute you become bored or see somebody else do something great in your former profession, you’ll be wondering why you ever stopped.
lubbockonline.com/business 7
BUSINESS PROFILE


managing with
MILLENNIALS:
Part 3, How to TELL A WAR STORY
8 LUBBOCK BUSINESS inc.


BY DAVID D. PERLMUTTER
On my very rst day as a dean I talked to a student who was just about to graduate. Of course, I asked him about his level of satisfaction with his educa-
tion. He was generally pleased and looking forward to his career to come with enthusiasm. He had one apprehension, however: he dreaded having to listen to “war stories” (my words, not his) from senior -- by his de nition “senior” was anybody over 30 -- workers and bosses.
I was curious and asked him to elaborate: Did he have some aversion to veteran professionals telling him about their past work experiences? Turns out he was not opposed to examples of business success and failures; he just chafed at the style, tone, and content of war stories along the lines of “how I landed that big client.”
In my many meetings both with alumni of our program
of all ages and with employers nearer to my age, I often
feel like a shuttle ambassador between two countries -- the younger and the senior. They are not quite hostile to each other, but tension, misunderstandings and frustrations abound. The war story, a favorite stand-up routine of people my age, is one point of friction. Based upon several hundred conversations with millennial (20-something) alumni, I sug- gest the following if you want to tell an instructive business story, be appreciated, and get your point across.
DON’T MAKE IT ALL ABOUT YOU
Resist the human temptation to make a war story self-ag- grandizing. If the point is to boast, then the only point you’ll make is that you have a big ego. Millennials want targeted news they can use.
KEEP IT SHORT
Fourteen-year-olds are reading 800-page Harry Potter novels, so their attention spans can’t be that short...but those novels are fast-paced and broken up into well-crafted vignettes. So must be your tales from the eld. The longer you go on, the less you are heard.
TREAT IT LIKE A BUSINESS CASE STUDY, NOT A “BIG BUCK” HUNTING SAGA
From their college years, millennials got used to the case study, a typical teaching module method, in elds as varying as public relations, engineering, accounting and physiology.
Try to structure, formally, your war story to have beginning, middle, and end, lessons, and takeaways. No rambling o message; if it isn’t incisive and on point, don’t include it.
DON’T COVER UP DOUBTS AND ERRORS ALONG THE WAY
If the war story is about how brilliant you were, never mak- ing a mistake, millennials will get bored, stop listening, and suspect its truth. Humanize by inserting your own doubts, stumbles, and uncertainties. Owning these bumps and mis- steps will enhance your credibility.
ADMIT TO THE “SUCCESS FALLACY”
Research shows that human beings make the mistake of assuming that when they are successful at something their own brilliance is what led to that success. Put your story in the context of luck, the help of others, and particular situa- tional context.
CONNECT THE PRESENT TO THE PAST TO THE FUTURE
Don’t tell a war story just to reminisce. Millennials might conclude that while you did great in the past you may just be ready for the nursing home now. If it’s one of those “in my day...” tales, you will probably lose your audience, fast. Speci cally bring up why you are telling it and how it ap- plies to the present situation and future.
ENCOURAGE THEM TO BUILD THEIR OWN CASE STUDIES
You can show your wisdom as a leader and mentor by helping millennials develop their own war stories. Follow the example of the military and their “after-action review” post-battle. Take some time after any signi cant event, sale, or project completion to review the lessons learned to apply.
Human beings are born storytellers. We recounted stories around cave res to teach our young to hunt and gather to survive. We tell stories today to advance the mission of our non-pro t, government agency or private company. But not all stories are created equal, recounted equally well, or win over an audience with equal strength. Think about how to tell a war story e ectively, for yourself and everyone who might be hearing it.
David D. Perlmutter is a professor in and dean of the College of Media & Communication at Texas Tech University. Perlmutter is the author or editor of ten books on political communication and persuasion, several dozen research articles for academic journals as well as more than 400 essays for U.S. and international newspapers and magazines. He has been interviewed by most major news networks and newspapers, from the New York Times to CNN, ABC, and The Daily Show. He regularly speaks at industry, academic and government meetings and runs workshops on personal and institutional branding via social media.
lubbockonline.com/business 9


Economist to Plains Cotton Growers:
Global market looking up
BY JOSIE MUSICO, A-J MEDIA
“Maybe the worst is over and it’ll get better from here.”
John Robinson
John Robinson is optimistic that the impact of China’s cotton stockpiling has already peaked.
10 LUBBOCK BUSINESS inc.


Robinson, a cotton economist for
Texas A&M AgriLife
Extension Service, told Plains Cotton Growers on Jan. 11 that when China sold 12 million bales from its stocks, that the release didn’t hurt prices the way he’d worried it would.
“Amazingly, the market went up,” he said. “That’s good — that’s a step toward resolving the problem of this thing hanging over the market.”
China was a heavy global cotton purchaser in 2011, 2012 and 2013, Robinson reminded his audience. Then, it slowed imports and began stockpiling millions of bales. That stored cotton made economists nervous — releasing that much cotton, as China would pre- sumably have to do eventu- ally, could create a surplus and lower global prices.
Robinson is not wor- ry-free, but he is pleased prices haven’t dropped yet.
“They’ll hopefully resume their place as a major im- porter,” he said. “I hope it’s looking up from here.”
But what about the rest of the world? The U.S has taken part of the export market share to Pakistan that India stopped, Robin- son said. And unfortunately for the U.S., Australia is producing some great-look- ing cotton.
“We’re gonna have some competition for our quality cotton, and that’s gonna a ect our export market,” Robinson said.
But in the South Plains at least, domestic cotton
isn’t looking bad, either. Producers and ginners reported pleasing yields; a few with record harvests.
“It’s just an excellent year,” Sudan farmer Brent Nelson said. “I don’t know where it came from, (but) we’re looking for another one.”
An exception is in Daw- son County. Shawn Holla- day told his fellow growers that elds in his area su ered either hail damage or lack of rain.
“Where it rained, it hailed, and where it didn’t hail, it didn’t rain,” he said. “Our particular area wasn’t good at all.”
Tom Sell, a local politi- cal activist with Combest, Sell &Associates, updated Plains Cotton Growers
in Washington, D.C. Just over two months ago, he’d been planning speeches encouraging conservative voters to stay positive after an expected disappointing Hillary Clinton victory.
“My, what a day Nov. 8 was,” he said. “It was an incredible election in that very few people were pre- dicting the outcome — Mr. Trump’s victory.”
President Trump select- ed Sonny Perdue, former governor of Georgia and onetime veterinarian, as his nominee for secretary of agriculture. The selection was made two days before Trump’s inauguration, and was his last cabinet vacan- cy. Perdue has a strong agricultural background having grown up on a farm and receiving his doctorate in veterinary medicine.
lubbockonline.com/business 11


socialmedia BY SARAH SELF-WALBRICK More Bang for Your Buck:
7Tips for Paid Social Media Ads
Anyone can create a Facebook or Twitter account for free. But for many businesses, organic reach is not enough.
Paying to promote chosen posts or your business pro le on these social media outlets can have a big pay o with little monetary investment. By choosing a targeted audience for your advertisement, you can expand your social media reach by thousands, which may expand your customer base as well.
Here are some tips for getting the most out of social media advertising budget:
1 You would be surprised at how much attention a $10 advertisement can get you. Test the waters by pro-
moting your page. See how many new followers you get, and continue to post engaging content to keep their interest.
2 Understanding your followers is essential to know- ing where you are doing well and where you can
improve. Each social media outlet o ers analytics that show demographics of your viewers and when they are looking
at your posts. Tailor your advertisements to this data or expand into a di erent audience.
3 The 120 character limit on Twitter works to your advantage. Shorter, concise posts perform better
across all social media platforms. Keep your social media text brief and include a link to longer posts on your website when necessary.
4 ADD IMAGES
According to both Twitter and Facebook, photo posts get more interactions than traditional posts.
Viewers especially like action shots. Post some behind-the- scenes pictures of how your business works to attract new customers.
5 PLAN YOUR CAMPAIGNS
Whether you have a social media professional on sta or not, planning your posts ahead of time can
help you budget. Create a social media schedule at the be- ginning of each month or week to help you stay within your means.
6 There is no need to promote everything you post. Save your money for things like important an-
nouncements or contests. Promoting each post will bring in new viewers, but putting money on more important things will be bene cial in the long run.
7 FOCUS ON WHAT WORKS
While it is wise to have a presence on multiple social media outlets, why waste time on a website
where you do not have an audience? If you have a strong following on one outlet, keep building it. Maximize your budget by using it where it works.
Sarah Self-Walbrick is a mass communications master’s student in the College of Media & Communication at Texas Tech University.
START SMALL
KNOW YOUR AUDIENCE
BUDGET RESPONSIBLY
WRITE TIGHT
12 LUBBOCK BUSINESS inc.
SOCIAL MEDIA


lubbockonline.com/business 13


Considering going
FREELANCE?
Here are the Pros and Cons...
Sick of the commute?
Co-workers too nosey?
Is the pasta served downstairs in
the cafeteria over-cooked? YUK!
It’s def high time to consider a career as a free-lancer, although...
That’s it, the gluey-pasta was the last straw!
14 LUBBOCK BUSINESS inc.


... although you might want to think this option carefully through rst, before you make a rushed decision based centrally on that disgusting pasta.
BY KIM LERCHE JobGo
Going it ALONE.
"Alone".
That in so many ways is the keyword here: freelancing is lonely, or at least much "lonelier" than being part of the regular gluey-pasta club. You carry the responsibility for your life fundamentally alone. If you’re sick, you
are not paid; you’re alone.
If there is no work on o er, you are going to face that prospect alone. Working at home, you’re alone. "Alone".
OK, true, being a free- lancer you may also have a role that is in e ect being an extension of the in-house team. You may even share
the same o ces on a proj- ect, eat pasta and hang out, until the gig is over. Then you’re alone again.
I’m purposely making "alone" sound rather bleak here, but OK: it ain’t neces- sarily so. There are ways to decrease the loneliness, like partnering up to share risks and responsibilities, and in any case even the increased "loneliness" comes with some silver linings.
Let’s run through some of the main up and down sides of going freelance, and the elements and issue involved.
"Freelancing it": UP & DOWN sides
+ If you’re good at what
you do, and if your client company’s products remain in demand AND you play your cards right, you may make more money AND have more freedoms than your former employee col- leagues. "If" and "may."
– To state the obvious, this opportunity comes at a price: insecurity.
One could even put an Oscar Wildian spin on that last sentence to:
"The added element of the free-lancer’s employment insecurity, comes at a price".
If you’re an employee, you cannot be left without pay during the fallow months of your employer’s business cy- cle; as a freelancer, you can.
– Because of this (and plenty of other valid reasons) you’ll need to ensure that as a free-lancer you always have more than one client.
Now this is central. Sure, freelancers sometimes end up working for just one client, and in the best of cases it can even work quite well, but... I would not feel safe. Say your main sponsor in the client-company dies; what then? Do you know his/her successor? Do they appreciate your work as much as their predecessor? They may already have people they know and like
to work with, that they’ll bring along with them to their new position... the myriad scenario possibilities
lubbockonline.com/business 15


include many versions that are not favourable for your continued freelance employ- ment.
Thus, to be at the mercy of one client is just not a good situation. Ideally, no business should ever be run so that one client represents more than 25% of your turn- over (and even that is a high number; the bigger the biz, the lower that percentage should be).
Why should we avoid having a large chunk of our income being tied up with just one or even two compa- nies? Do the math: losing 25% of your biz overnight can be unpleasant; but losing 100%? "Vere sugit" as the ancient romans used to say: "really sucks" (I checked... google translate ;-) )
And yes BTW: by becom- ing a freelancer, you are in e ect running a business. It thereby follows that you need to adopt the mindset that this entails. Pro t/loss,
costs, pricing, margins, mar- keting, accounting, insuranc- es, pensions, promotion...
all unavoidable facets of life as a freelancer; you need
to master them all, or pay people to do so for you.
+ Widening your client base might bring other unexpect- ed bene ts. Perhaps one of the companies you work for will value your input more than the company you just left. You know... the one with the gluey-pasta?
This new client might be so charmed by your services they might even o er you an obscene amount of money to work for them fulltime, the famous "o er you can’t refuse" device. Stranger things have happened. Did
I hear the words "stock op- tion"...? I’m ALL ears! :-)
Yes, IF you’re recognized as being really good at what you do, your brave decision to go it alone may lead to a situation where your know-
how becomes the object of
a bidding war. In the best of circumstances, you may nd yourself on the receiving end of increasingly attrac- tive propositions. Caution: even this hypothetical "mul- tiple-job-o ers situation" will require careful navigation (don’t want to o end people or burn bridges), but WOW, congratulations; being ap- preciated and sought after is always pleasant, no?
+ You can also, on your own, decide you deserve a long vacation. If you’ve been a successful freelancer, you might even be able to a ord a vacation.
+ Normally you will have more freedom regarding when and where you work.
– Do you actually know how to work alone?
Seriously, have you ever done it? Aye, no boss sounds great, but can you
get yourself out of bed in the morning, and deliver a day’s worth of productive input motivated purely by "your own whip"? Can you do this consistently 5 times a week?
Many people nd working at home a huge challenge. For one, if you have a family, they’ll have trouble under- standing you’re at work even though you’re at home. Your wife and kids will come and chat to you casually whilst you’re producing a report that requires you to plumb the very deepest recesses
of your intellect. Working at home requires routines and rituals just like working at a "real job" ;-)
Some people go as far as wearing a suit and
tie in their own home to help them step into their professional persona and mindset. Having a regular work schedule (eg. "9 to 5") is a good idea, as it gives a familiar structure to your work-rhythm, and
16 LUBBOCK BUSINESS inc.


also clearly designates time when you are NOT working (which is another mine to
be avoided if working at home; some people nd they are constantly in an inef- fectual "work limbo state", neither properly at work or "at home"; not good. Prefer working pre-determined hours regularly and e ec- tively, do overtime if you have to, and then step outof your professional role when you’re done. Having a sepa- rate home o ce room helps keep the "work" and "home" facets of your personality separate and focused.
Remember these!
You need to learn to PLAN AHEAD.
You’re running a business. How are things going? What needs to be improved? Where are you making the best margins? What needs to happen for you to be able to increase the most pro t- able types of jobs you get? What do you need to invest in? Do you need new train- ing or skill updates? What is next year going to look like? When are you going to go on vacation? Do your clients know you’re going to be gone then? What extra costs might you be facing next year? Think, plan, execute, follow up. It’s basic, but you need to do it, because you’re alone; ain’t nobody else going to take care of this if you don’t!
Time really IS money.
Really, take this to heart. You need to think in terms of billable hours. You need to keep a precise record
of your work input hours. Not only. Also travel, phone
calls, meetings, etc. You need a record of where your time has gone. You also need to run your own com- pany, and that is administra- tive time you need. Once you have a good record where your time has gone, over time you will develop a more re ned sense of how to price yourself, AND follow those hours and costs. Most new freelancers don’t factor in all their costs e ectively, and end up short-selling themselves on the market. To price yourself out of the market is not the objective here, but a realistic apprais- al of your income and input is centrally important for your business. Also, if your client asks questions about your invoicing, you need to be abe to answer what you did during all those hours.
A well-kept billing report removes elements of con- tention and doubt. Lots of cheap/free software avail- able to keep track of billable hours, use them!
The "project" nature of free-lancism
Free-lancers usually get hired to do "a job". These jobs usually have a clear
set of goals that need to
be achieved, and the jobs usually have a start and
an end date, making these jobs essentially "projects".
If you are not familiar with Project Management (PM), you might want to consider getting familiar with this approach. Milestones, stake- holders, Gantt charts — you need to learn about these. Using a functional PM software (say wrike.com or similar) will help you keep on top of things, and also
make sure other possible stakeholders are doing their jobs according to plan.
Ensure you get paid!
A good contract is helpful here, use a lawyer. You don’t want to spend unbillable time to get monies owed to you, so do everything you can to make sure getting paid does not become an is- sue. Breaking payment into several parts is a good idea, that way you will nd out early if your client is going to be a problem-payer.
Invoice "extras"!
When clients change the project halfway through
the job, or add elements, these are extras and need to be BILLED. Your contract needs to deal with these contingencies pre-emptively, and in no unclear terms. It is also good that your clients don’t come to expect you
to hand out "freebies" too generously; if you do, clients will come to expect them, and seeing as they entail real work, they can ruin your bottom line.
Always be punctual. ALWAYS.
In everything you do for the client. Just being a punctu- al deliverer of service will make up for other de cien- cies you may have. Cultivate a reputation for ironclad reliability. This may be the single most valuable piece of advice you get from this article. I’ll say it again: BE PUNCTUAL!
Communicate and assimilate
Make sure you communi-
cate a lot with your client’s team. These are the people who will also have a huge say if you are used again or not. Listen to them, learn the company’s culture and internal language, hang
out with them occasionally, adapt, t in, contribute and be generous with praise and sharing credit.
These are key elements to your success as a freelancer. Make yourself a positive and indispensable part of "The Team", and you will have a long and good relationship with the client.
So... go solo or stick to the steady dough?
It’s a Big Decision, not to be taken lightly. Take your time, don’t rush into a decision. Talk to the spouse/partner, make sure the fam-team is on board. If you go solo, you’re going to need all the support and understanding you can get from those close to you.
Is this free-lance idea you have a knee-jerk reaction
to an unpleasant situation, or is it something you have been mulling for a long time? As a point of depar- ture, assume that freelanc- ing will increase your work load, NOT decrease it. Consider that perhaps your possible frustration at work can be resolved simply by switching jobs?
Did you know that 85% of employees are ready to switch jobs?
Just the fact that you are even considering these mat- ters, places you squarely in this majority.
Perhaps you are not so alone after all... ;-)
lubbockonline.com/business 17


Lubbockites see VALUE in FRANCHISE OWNERSHIP
BY DENISE MARQUEZ
AJ MEDIA
PHOTOS BY JOHN WEAST


In the past several years, franchise businesses have opened across the
Hub City along the Loop, Milwaukee Avenue and the Marsha Sharp Freeway.
Lubbock is attracting national franchise chains, such as Dunkin’ Donuts, Baskin-Robbins, Louisiana-based Walk-On’s Bistreaux & Bar, Panera Bread and In-N-Out Burger. These national franchise names are attracted to Lubbock’s growth, friendly community and the city’s a ordability,
according to local franchisees.
Walk-On’s Bistreaux & Bar manager Ron Tuttle (left) and owner Josh Allen. Walk-On’s is one of several new businesses open at the West End development.
Lubbock franchise owners have shared tips on how they have
successfully opened a fran- chise business in the Hub City, and explained why fran- chise corporations agree to expand its businesses into the South Plains. Those Lubbock franchise owners include, Justin and Hillary Sharbutt, Blo Blow Dry Bar, Tide Dry Cleaners, Dunkin’ Donuts, Baskin-Robins and BurgerFi franchise own-
ers, Johnny Qubty and Josh Allen, Walk-On’s Bistreaux & Bar and Cantina Laredo
franchise owners, and Laura Neinast, DEFINE body & mind franchise owner.
LUBBOCK:
“THE FRANCHISE CAPITAL OF TEXAS”
When Lubbockites decide they want to pursue the opportunity of opening a franchise business, one of the rst tasks they tackle is selling the city to a franchise corporation, which can
be di cult until corporate owners visit the city and are typically sold.
The Sharbutts opened Blo Blow Dry Bar, 4511 98th St., in May 2016 after Hil- lary experienced the hair sa- lon’s services in Austin. She said the Canadian-based company was at rst hesi- tant in opening a Blo Blow Dry Bar in Lubbock.
“They’re so big on foot tra c and they want to know where is your foot tra c, where is your down- town, where are the work- ing woman,” Hillary said. “I’d tell them we don’t have that here — they’re thinking of (Lubbock) as this small
town. But I’d say you don’t understand, we may not have foot tra c but you can get anywhere in 10 minutes. It’s this thriving, booming town.”
Hillary said she invited Blo’s corporate team to Lubbock, and after their visit she said they told her she could open the business wherever she wanted.
“Literally, within 10 minutes they said you could put it wherever,” Hillary said. “They weren’t going to question me. Once you can get them to get past the idea
lubbockonline.com/business 19


From left to right: Barndt Stravlo, Max Roesh and Justin Sharbutt pose at the recently opened BurgerFi. All three are franchise partners.
20 LUBBOCK BUSINESS inc.


of being this little town in West Texas, which we really aren’t anymore, (Lubbock) is so appealing.”
The Sharbutts have also brought in Tide Dry Clean- ers, 4511 98th St., three Dunkin’ Donuts, 7723 Mil- waukee Ave., 7901 Univer- sity Ave. and 4328 50th St., one Baskin-Robbins, 7901 University Ave. and Burger- Fi, 4210 82nd St.
Justin said Lubbock’s a ordable real estate
and the ease of the city’s construction system also helps pull in new franchise businesses.
Lubbock has that other places don’t is we’re very di- verse and we also service an enormous amount of peo- ple. Lubbock looks extreme- ly good on paper. If you just look on the internet, the population of Lubbock is be- tween 240,000 to 250,000. On any article you can
look at on what Lubbock improves on and it’s about 550,000 people. Whenever you see all the universities that are in our area and you see all the agriculture and the medical district ... we’re comparable to some areas of the metroplex where
there is million population stores. (Franchise corpo- rations) have to come here because they don’t believe it’s going to be like that.” When Neinast was in search of where she wanted to open DEFINE body & mind, 4413 82nd St., she considered Oklahoma and Amarillo but decided on a Lubbock. She decided on the Hub City, because of it’s recent franchise business boom.
“I chose Lubbock because a lot of people say Lubbock is like the franchise cap-
ital of Texas, which it is,” Neinast said. “You have all these local businesses that are opening, trying to make a great success for them- selves and Lubbock has all these franchises that come in and ood the market. Most of the franchises here have been successful.”
A FRANCHISE BUSINESS THAT’S LUBBOCK’S FIT
The local franchise owners said their businesses are
a success because they brought in services and products that the Lubbock community needs. They
also thank their businesses’ success to the franchise companies methods of run- ning a business.
“If somebody is looking
at franchising, probably
the No. 1 thing is to really research who your franchis- er is, who that corporation is and are they going to help you — do they have a track record of helping you,” Allen said. “Or are they ying by the seat of their pants. If we’re going to bring fran- chises to Lubbock those people that are bringing those franchises need to make sure that they are sol- id companies that way those owners are set up for suc- cess because the corporate store and the franchiser put in a good model. Franchis- ers set you up for success. They want to get to know your area and they want to make sure you are in the best place in Lubbock.”
Qubty, Allen’s franchise business partner, said they had their ups and downs with franchise corporations, but have been pleased with the e ort and time Walk- On’s and Cantina Laredo franchisers have put into the Lubbock locations.
“Real estate is pretty easy here in Lubbock,” Justin said. “(Corporate officials) are used to seeing outrageous prices or there are land locks and they've got to find something and redo it.
Where we can say we’re going to build it ourselves and make it the exact way you want it. That helps a lot. They’re seeing lower rent costs
and lower construction costs.”
Allen, co-franchise owner of Walk-On’s Bistreaux & Bar, 2630 W. Loop 289 and Cantina Laredo, 114 W. Loop 289, said Lubbock’s almost 300,000 population, plus it’s more than 200,000 visitors makes the city the perfect place for franchise businesses to expand.
“We’re the largest city be- tween Dallas and Albuquer- que — we’re the hub of the South Plains,” Allen said.
“I think the thing that
Laura Neinast in owner of DEFINE body & mind and also teaches cycling classes. Neinast was a customer of the Midland DEFINE, which inspired her to start her own branch. Lubbock proved to be her best choice when picking a location.


“When you get a franchise sometime the franchisers are really good people, they really work with you and they help you a lot, Qubty said. “And others they do not help you and they demand things. You learn to really look at the franchiser and the people running it and see what their values are. You have to pick the right franchise and you have to
check the people that run it.” Neinast said during her
market analysis of Lubbock she found that the city had a lack of boutique tness studios and said she knew DEFINE would be success- ful.
“What we had here for boutique tness studio-wise was Pure Bar and Orange Theory — two great studios, and Lubbock needed more
places like those studios, which is why I brought DEFINE here,” she said. “Corporate was like, if those studios are doing good we can de nitely do just as well as they can. They did their own market analysis and made sure that DEFINE was capable to be here and once they did their own studies and reviews they realized it would be a good t.”
Hillary said she also re- searched the needs of Lub- bock before she and Justin brought in their franchise businesses they visited other location to get a feel of how those franchisers did business.
“There is a lot of due diligence that is done,” Hillary said. “We’ve gone to Phoenix and di erent places to walk through and talk to
Above: Josh Allen is part owner at Walk-On’s Bistreaux & Bar. The Lubbock location was the first in Texas. According to the company’s website, four more Texas locations are planned.
Left: Allen, and manager Rob Tuttle (right) check in on the kitchen in preparations for a days work.
22 LUBBOCK BUSINESS inc.


another franchisee and see how their experience is deal- ing with corporate. Each one is so di erent as far
as how much help and on going resources they o er, all the way down to what the franchise fees are and loyalties and all that kind of stu . There is a lot of home- work that needs to go into it. It may be a great idea but if they’re not always striving to be the best in change and bring new things we kind of are failing in what we are o ering the community.”
Justin said when opening a franchise business the best thing to do is follow what the franchise company has done in order to run the business successfully.
“They already have alot of the tricks and trades already gured out and they have a lot of the procedures done for you,” he said. “That’s what you’re paying for, is the proof and concept.”
Allen said investing in a franchise business takes
a lot of work and funds so making sure you have a company that supports its business and franchisees is the most important key to running a successful fran- chise business.
“You are going to make your largest investment of your life into a franchise,” Allen said. “You’re going to pay franchise fees, you’re going to make a commit- ment to them, you’re going to have to build or nish a building out and you need
to make sure those people aren’t going to throw you under the bus. If they do, you’ve lost everything you have. But if you make sure they’ve got your best interest at heart you are going to be
set up for success. Success lies with how you run with the ball. You just have to do what they say. Don’t reinvent the wheel.”
The keys to running a suc- cessful franchise businesses
Research is the best advice those in the local franchise biz said they could give when planning on bring in a new business to Lub- bock.
Do your research, make sure your business plan is thorough, talk with other people before you open one and get advice from an existing business owner
or someone that has done this before,” Neinast said. “Know that you have a lot of work ahead of you. You will be successful if you stay on top of things. Set goals daily, accomplish those goals and talk to yourself about how you’re going to get to those goals. Anybody can be a business owner if you’re determined enough. And know what market you’re entering.”
Hillary and Justin said they talked to others in the franchise business to get an idea of what they were getting into.
“Go visit and go talk to other franchisees,” Hillary said. “There are always sur- prises but that way you can go in with your eyes wide open. You know corporate may not help so much here, but they really provide this here. Don’t be afraid to ask for help. Use mentors with those people who have been there and done that. This town has so much of that and there are smart people that built their businesses and built their livelihood tap into that.
“Talk to the best and those that are struggling in the same franchise,” Justin added. “They all like to talk they are proud of themselves. Find out what’s working and what’s not working.”
Qubty said hiring smart is also a key in running a success- ful franchise business.
“For us, we have to hire the most ethical and right person for the job,” he said. “A lot of our success depends on those people running it. We keep tabs of course but we’re not there all the time. You’ve got to have the people you trust, unless you are the owner and working in it. You better hire the right people because that makes a huge di erence whether that place works or not.”
FRANCHISE BUSINESSES SUPPORTING THE LOCAL ECONOMY
With the hundreds of franchise businesses that have opened and are opening in Lubbock, local franchise owners want to remind the community the impact these businesses have on the local economy.
“As small as people think we are,
we are pulling in these big guys,” Allen said. “The good thing about that is if
a Dallas franchise comes to Lubbock they’re not going to pull employees from Dallas, they’re going to pull employees from Lubbock. And if they are structured properly only a small portion of that money is going to go back but everything else is going to stay here. The biggest thing for our economy
is that workforce is from here,
buys here and stays here.”
Hillary said many times she hears that the money made from her franchise business goes back to the corporation, but she said a percentage does go back to corporate as a royalty fee, but much of the money stays in the city.
“The money truly is here it’s with us,” she said. “You got maybe this tiny percentage that goes to corporate. It may be a franchise but that’s just a concept — it is buying some- thing that works so that we can be providing this amazing (business). I think that just because it has a name that you can see in an other town doesn’t mean that it’s not local.
lubbockonline.com/business 23


BUSINESS Q & A
Marketing Local Q&A
Kevin Jones, 32 Owner of Chili Dog Café 5903 82nd Street www.facebook.com/chilidogcafe
1. HOW DO YOU MARKET YOUR PRODUCTS TO A LUBBOCK AUDIENCE?
Kevin: At rst, I was disappointed when Facebook made you start paying for ads. But now I’m really seeing the bene t in it. It just depends on the content that you post on there. It’s getting to where it’s a lot more a ordable. It’s getting to where I can get the same response spending $300 a month on Facebook ads as I could as spending $1,200 on radio. You’re touching di erent people.
2. HAVE YOU SEEN MARKETING TRENDS SHIFT RECENTLY?
Kevin: I was working for Chili’s and it has a very well- established brand. We had a huge payo with stu we did in the newspaper. We knew when a newspaper ad was hitting. We knew our sales were going to increase 20 percent over the next few days.
Moving forward, it’s all about social media.
3. IS THE LUBBOCK FOOD SCENE AS CONGESTED AS IT APPEARS TO BE FROM THE CONSUMER PERSPECTIVE?
Kevin: It is, but that’s nothing new. If you look up restaurants per capita, Lubbock is consistently in the
top 10. We’re a huge test market for corporations. Food chains, whether they are fast casual or full-service casual dining or just quick service, they look at a market like Lubbock and they open it up here as a test.
24 LUBBOCK BUSINESS inc.


4.DOYOUTARGET COLLEGE STUDENTS SPECIFICALLY?
Kevin: Us being as far away from campus as we are, the students
that typically come in here are upperclassmen. People that live a little further away from campus are a little more established. I don’t spend
a whole lot of time trying to focus on the younger Tech kids. But if there’s a basketball game, I can do a Facebook post to target speci cally an age range that can only be students that are liking Tech basketball.
Opposite of that, if I’m going for a senior citizen crowd, that message is going to be totally di erent. I might want to showcase the healthier items that we have. And that we do a whole lot more than just chili dogs. The call to action is going to be di erent with them because there’s a di erent value associated with their dollar.
5.DOYOUEVERLOOKAT OTHER BUSINESSES AND OBSERVE A PRACTICE OR BEHAVIOR THAT YOU TRY AND IMPLEMENT IN YOUR OWN BUSINESS?
Kevin: Going back to when I opened,
I was a lot more close-minded and thought I knew everything. Didn’t pay too much attention to what other peo- ple were doing and what other people’s ideas were. That was totally not how you want to operate. You want to listen to everybody. It’s like, there’s no bad questions. No bad ideas. Just bad ways that they are implemented.
You see how (other businesses)
are using pictures in their Facebook posts. Or, even specials. Like the beer specials that people are running. I like seeing what they’re doing and I try to get more aggressive than what they’re doing.
6.DOYOUMAKEITA POINT TO INNOVATE?
Kevin: It’s all about getting people in that rst time. I don’t care if I have to give away the whole house. I have to get them in here one time because I know I have a good enough product that it's going to have them coming back.
Before I opened, I did a lot of research on other restaurant’s menus that also served hot dogs. I borrow their ideas and I make them my own. And I make them better. To make them t what our guests like. What works in Phoenix, Arizona on a hot dog might not work here. We tweak it a little bit. That’s how great products are made. You have to do what you have to do to stay above the pack.
lubbockonline.com/business 25


WHY
LUBBOCK?
John Osborne, CEO of the Lubbock Economic Development Alliance, discusses what makes Lubbock attractive for both small businesses and large corporations.
1Lubbock has recently seen exponential business growth. What
factors have contributed to this?
With a growing population and nearly 6 million visitors every year, Lubbock has experienced an exponential amount of business
growth as a result of the development of Texas Tech University, Texas Tech University Health Sciences Center, as well as our other universities and the nancial services sector.
2Beyond things like population increase, why would a business
choose to expand into the Lubbock market?
A business would choose to expand into the Lubbock market primarily because of our local talent, access to research through
our universities and the a ordable cost of doing business in the city.
3Why is this a particularly good time to join the Lubbock
business community?
Due to the shared vision and goals within the leadership of the city, universities, businesses and community leaders, now is a good time to be a part of the Lubbock business community.
4There has been a recent boom in large, national companies
opening locations in Lubbock, like Panera and P.F. Chang’s. Why are these businesses choosing Lubbock now?
National businesses are moving into the Lubbock market for access to our growing population, as well as the nearly 6 million visitors who travel to our city on average each year.
26 LUBBOCK BUSINESS inc.


5Lubbock has always been a great place for small businesses. Why is
Lubbock conducive for small business owners?
As a city primarily made
up of small businesses, Lubbock is conducive for small business owners because of the strong network maintained by existing businesses. They show one another support and value the independent spirit of West Texas and the South Plains.
6What are some things companies looking to build in Lubbock should
know about the city?
For a company looking
to build in Lubbock, they should be aware of the
fact that there are people wanting to move to Lubbock and are looking for good jobs. Our community’s mindset is pro-business and boasts a strong network
of local businesses, which makes getting things done easier.
7Every market is different, meaning companies will likely
use different marketing strategies in different locations. What are some tips for reaching Lubbockites specifically?
When it comes to engaging the Lubbock community, it is important to remember these are hard-working, hospitable people, who sup- port themselves, their family and enjoy life here in West Texas. It is vital to reach them across multiple chan- nels, from print to digital and social media e orts.
8What are some of your hopes for Lubbock’s business future?
My hope for Lubbock’s business future is continued growth and prosperity.
We want our existing companies to ourish and new businesses to see the opportunity available to them in the “Hub City.”
lubbockonline.com/business 27
NOW?
WHY


READY. SET. GROW!
Can you afford to open another location and maintain sufficient cash flow to sustain operations? How will the expansion be financed? Here are a few costs to consider:
1. Expenses
2. Addional equipment, fixtures, supplies, etc. 3. Facility lease vs. purchase
4. Staffing needs
03 Location
Location is one of the most important things to consider. A list of factors include:
1. Space/Facility needs
2. Competition surrounding the proposed location 3. Accessibility to target market demographics
4. Traffic count for the proposed location
04 Market Research
Do your homework. Market research can be most valuable when considering the feasibility or demand for business expansion. It provides various insights such as:
1. CompetitiveAnalysis 2. Industry Trends
3. Demographics
05 Timing
Now that you‘re prepared to expand make sure you stick to the plan and are able to meet any required deadlines. Proper timing is key to minimizing disruption to existing business operations.
Information provided by Adrien Bennings, Small Business Development Center
01 Plan, Prepare, Plan
Start with the basics. Consider why you want to expand or open another location. Planning and preparation are critical to ensure that you conduct a thorough analaysis before making a final decision.
02 Price Tag
Effe5
ctive Business
Expansion Tips
28 LUBBOCK BUSINESS inc.


Schroeder new chief medical officer at Covenant
Dr. Brian Schroeder
Age: I’m old enough to know better than to answer that question!
I am from: A small town in South Dakota. Although I spent a decade in Galveston, for the last 20 years I’ve lived in Michigan. Website: covenanthealth. org
Occupation: Physician executive. My role is to provide a medical perspective to the other (non-medical) hospital administrators, and an administrative perspective to the physicians. While I no longer do much clinical practice,
I’m trained in internal medicine, the care of adults with chronic illnesses.
On the side, I’m also a ight surgeon with the Air National Guard.
How I ended up in this business: I went to college to study music, but one day, after a particularly dreadful lesson, one
of my instructors suggested that I didn’t “have the chops” to make a living as a musician and that I should consider another eld of study.
I elected to go to nursing school, and after a few years as a critical care nurse at the University of Texas Medical Branch in Galveston, I
was encouraged by a number of residents and attending doctors that I should consider going to medical school. I’ve since discovered it’s a
lot easier to be a doctor who plays
a little music on the side than it is
to be a musician who does some doctoring on the weekends.
The one thing I enjoy most about my work: The personal interactions I get to have with patients, with physicians, sta and students. Despite its challenges, being a physician is still immensely gratifying. Patients let us into
their lives at their most vulnerable moments, looking to us for answers and help. We are present at the most crucial moments of their lives. Our eyes are the rst eyes that a baby sees when it is born; we share di cult news
with them, such as frightening diagnoses; and we comfort them as they say their nal farewells to their moms and dads. It remains a very sacred responsibility.
My business philosophy is: To make care more e ective, and to make more e ective caregivers.
What Lubbockites may not know about Covenant Medical Center: How fortunate they are to have such high-quality physicians, nurses and facilities right in their own backyard. I’ve been impressed by both the caliber of the providers I’ve met, but also in how dedicated Covenant is to its Christian mission of providing care and
service to everyone. No exceptions, no excuses.
What are your goals as Covenant’s new CMO: To listen and learn about Covenant’s people and processes before doing anything else. Other priorities
will emerge once I’m better in tune with “the how and the why” of how things are done here presently. Health care is a complex and changing environment, and the worst mistake one could make would be to fail to appreciate
the current environment before suggesting improvements.
The best advice I’ve ever received: Measure twice; cut once. Over the years I’ve learned that one can apply that adage in any number of aspects of life: be mighty sure of what you’re doing before you commit yourself!
The person I most admire is:
Whomever I’m reading about at the moment. I tend to read a lot of biographies. The most recent was about Capt. Lance Sijan, a Vietnam-era ghter pilot and the only medal of honor recipient
to graduate from the U.S. Air Force Academy. He was shot down over Laos in November 1969 and survived in the jungle for 46 days with a skull fracture,
a broken femur and a mangled hand. He was eventually captured and endured frightening torture before succumbing to his injuries. During his time as a POW, Sijan continued to plot ways of escape and served as an inspiration to other prisoners. Today there’s a cadet dormitory at the Academy named after Sijan, the same hall in which my son lived while he was
a cadet.
My family: I’ve been blessed to have my wife, Nancy, at my side for 29 years (who, incidentally, somehow still looks 23 to me). She still lives in Michigan until
our youngest nishes high school in the spring; at that point they’ll move to Lubbock. Our oldest
and his wife are stationed in Southern California where he puts satellites into space. Our second son studied astrophysics and is working in the IT eld until he makes decisions about grad school (Yes, two of our kids are rocket scientists). Our oldest daughter is a sophomore at a junior college in Oklahoma, studying agri-business; we’re hoping she’ll consider Texas Tech for her last two years. Our youngest daughter is unsure of where she wants to go to school next year, but wants to study foreign languages and business.
If I could be anything, I’d be: Just a little bit better at what I do today than I was the day before.
I wish I knew how to: Build guitars. I love the idea of creating an instrument that others might be able to play and enjoy for many years, even after I’m long gone.
If I could change one thing about Lubbock, it would be: Would it be too much to ask for a few more trees? While I don’t miss the Michigan winters, I do appreciate the foliage.
When I retire, I plan to: Fly. Play more music. And spend more time with my 23-year-old wife.
lubbockonline.com/business 29
BUSINESS PROFILE


THURSDAY, FEB. 23
Business After Hours - 5:30 - 7p.m., Hilton Garden Inn, 6027 45th Street. Unwind and make new connections. Be sure to bring plenty of business cards. For more information, contact the Chamber of Commerce at 761- 7000.
TUESDAY, FEB. 28
Chamber University – 8 a.m., FirstBank & Trust Operations Center, 9816 Slide Road.
The theme of this seminar will be “HR Hot Topics: Newly Revised I-9, Newly Increased Penalties... Is Your Business in Compliance?” For more information, contact the Chamber of Commerce at 761-7000.
TUESDAY, MARCH 7
Young Professionals of Lubbock First Tuesday Networking – 5:30-7:30 p.m, Lubbock Moonlight Musicals, 413 E Broadway Ave. Come meet fellow young professionals in
Lubbock. Bring plenty of business cards. For more information, contact the Chamber of Commerce at 761-7000.
THURSDAY, MARCH 9
Business After Hours – 5:30-7 p.m., Golf Headquarters, 5004 Frankford Ave., Suite 100. Mingle and network with the Lubbock business community. For more information, contact the Chamber of Commerce at 761- 7000.
Business Calendar of Events
30 LUBBOCK BUSINESS inc.
BUSINESS CALENDAR


Business Start-Up
Q&A
lubbockonline.com/business 31


The first steps of starting your own business can be intimidating. Regardless of your situation, it is important to do your research before you start to get things off the ground. Area experts Ray Laurent, Associate Regional Director at the Small Business Development Center, and Ron Mitchell, Ph.D., professor of Entrepreneurship at Rawls College of Business, discussed several key things to consider during start-up.
1)
HOW IMPORTANT IS SAVINGS BEFORE STARTING A BUSINESS?
RAY LAURENT (RL): Very important. Unless you have a wealthy benefactor ready to provide you with 100% of the funds necessary to start your new busi- ness, bankers and/or investors will almost always require you to have some “skin in the game”. The idea is that if you are asking someone else to take a risk by investing their money into your new venture, they will expect you to do the same. Typically, the more equity you are bringing into your business,
the better, but typical amounts range from 20 to 30% of the total project costs. Additionally, to be on the safe side, it’s a good idea to have additional personal funds available, as a cushion in case revenues don’t materialize as quickly as you anticipated.
RON MITCHELL (RM): When we talk about savings, we are talking about only one of many re- sources. Most people think it’s all about the money, when actually the equally important kind of savings is the experiences and observations of a market- place. There are three things that drive pro tability in a startup: promotion, infrastructure, and the production process. It’s simplistic to think that it’s all about saving money. What you really should be
saving is the knowledge and connections to those three aspects. Once you have that, investors and money will come.
32
LUBBOCK BUSINESS inc.


FULL PAGE AD


2) WHAT ARE THE MOST COMMON WAYS TO GET STARTUP FUNDING, AND WHICH DO YOU RECOMMEND MOST?
RL: Probably the most common funding method for small businesses is called “bootstrapping”. In essence, the en- trepreneur uses their personal savings, and maybe limited funds from friends and family. This typically requires the project to be relatively small, which limits the risk. How- ever, starting a business on a shoe string budget can lead
to potential cash de cits if initial results don’t quite match expectations, so do not underestimate those start-up ex- penses. Other common ways of funding include commercial lending, for instance SBA guaranteed loans, as well and as angel investors. Crowdfunding is also growing in popularity. The only start-up funding method I recommend is the one that matches your needs; there is not a single method that stands out as the best for all case scenarios.
RM: The most common way to get startup funding is suppli- er credit. The second is family and friends, which you can consider as personal funding. After that, people use credit cards to get loans for funding. If your desire is to “hold” the business, then you want to use debt to fund it. If you want
to take the business public, like the stock market, then you want to have equity investors do the initial funding. The best type of nancing depends on what funding result you want from a startup.
3) WHAT FACTORS GO INTO CHOOSING A LOCATION FOR YOUR BUSINESS?
RL: If visibility is important for your type of business, in re- tail stores for instance, nding that perfect location can be quite challenging. It usually comes down to what the owner perceives to be the best compromise mix of pros and cons. Factors typically include the adequacy of the facility for the business and its potential for growth, pricing, foot and/or vehicle tra c, location demographics, competition proximi- ty and type, ordinances and signage constraints, etc.
If visibility is not as important, then price and facility characteristics, including accessibility, are the main criteria to consider.
RM: For location to best contribute to pro tability, the
big three factors (as previously noted) are: connection to customers, infrastructure, and production process. When you talk about location, that’s about infrastructure. It’s about being in a position where all the stakeholders that you need are around. You look for what are the minimum things you need for your infrastructure. If you are a walk-in customer driven business, then geographical location really matters. In retail, it’s huge. If you’re in something like Ag, then you want to be in place like Lubbock near the experts at Tech. Intellectual property businesses (like high tech) tend to cluster. If production and delivery can be managed by some other means like the Internet, or FedEx, then location isn’t going to matter as much.
4) HOW MUCH ATTENTION SHOULD YOU PAY TO THE INDUSTRY, AND “COMPETITION” AT THE START?
RL: First, being an expert in your industry is a must for all business owners, not only to understand what your custom- ers value, but also to identify potential opportunities and threats in your particular sector.
Second, existing and future business owners should de nitely pay close attention to their competition (direct and indirect), primarily with respect to understanding
their respective positioning. For example, how do your
main competitors compare in terms of price, quality and convenience? What are their strengths and weaknesses? In business, being di erent is often better, therefore knowing how you can di erentiate from the competition can help you compete better.
RM: Competition is about connection to the customer: who gets to the customer, and who does the customer choose. When you break that down you get two types of connection: imitators and substitutes. Attention to the imitators is real important because if they do the same thing the same way, then they can cut your business by increasing supply. With substitutes, you have to compete in a di erent way, because substitutes decrease demand, and so you need to nd a way to share the demand. You should be very concerned com- petition, but you should also know which kind so that your response is appropriate.
34 LUBBOCK BUSINESS inc.


FULL PAGE AD


5) WHAT ARE SOME SMART MARKETING TIPS TO USE THE FIRST 3 MONTHS OF STARTING YOUR BUSINESS?
RL: First, you should have drafted your marketing plan well in advance. If you wait until opening day, it’s too late. Therefore, plan your marketing campaign carefully, and early. Start by obtaining some market research (all SBDCs in the US have access to some great resources, by the way, and they’re free), and pick a strategy that focuses on your target customers. Additionally, develop your 30 second “elevator pitch” and re ne it until it’s perfect. Then, become a shameless promoter; learn how to become a better sales person if that is not your innate personality type. Finally, watch your budget; do not assume that the more you spend on marketing, the more you will sell. Oftentimes creativity can go a long way in getting the word out, while saving that precious cash.
RM: The smart marketing tactics are guring out how you get the most information to the most relevant people, the fastest. What you really need to know is the extent to which a medium actually gets your message to your customer. What I would do with a startup is get the focus groups of the target customers and see how their attention is spent. From there you prepare your message to t the medium that gets the most attention.
6) WHAT IS A REALISTIC TIME FRAME TO START SEEING PROFIT?
RL: Many entrepreneurs state that it’s ok to start seeing
a pro t in their second or third year. What truly matters
is cash, though, more so than pro t (yes, a company can
be pro table and yet run out of cash). For a typical small business, generating positive cash ow quickly in the rst year is crucial, especially if the new business owners are looking for a commercial loan to start their enterprise. In this particular case scenario, lenders will typically want to see positive projected cash ow the rst year, and a lim- ited amount of cash ow negative months. It is therefore extremely important to work with a professional on devel- oping nancial projections, in order to identify the di erent cash ow scenarios during the rst few months of a busi- ness venture.
RM: A lot of that depends. If you’re in pharmaceuticals, then it takes years to deal with things like FDA approvals. If you have a lemonade stand, then it should take less than a day. If you’re going to have a little too much of something in busi- ness, have some exibility to buy extra time when needed.
7) HOW IMPORTANT IS TIMING WHEN STARTING A BUSINESS? ARE THERE TIMES OF YEAR TO BE MINDFUL OF?
RL: Timing is important for many business startups for one major reason: seasonality. Most businesses are seasonal, meaning that they might lose cash during slower months, and then make it up during their high season. Consider
the example of a business that is reliant on holiday sales in order to have a good year. In that case, it is paramount for that business to start operating in August or September, with enough start-up inventory, in order to capture those early holiday sales and take advantage of the full season. Imagine, if you will, the case scenario of a Christmas store that is only able to open in January, and the importance of timing becomes obvious.
RM: The old saying “timing is everything” really matters. You need to plant when it’s planting season. In the big picture, there’s business, industry, and customer season- ality. You need to be in the spring of an industry’s lifecycle, and not its late fall. You don’t want to be the rst of the rst, or the last of the last. But you need to be pretty close at
the front end, and ride the growth curve. As far as actual seasons go, the big thing to just have is awareness of the big picture.
36 LUBBOCK BUSINESS inc.


8) WHAT IS THE MOST COMMON MISTAKE PEOPLE MAKE DURING THE STARTUP PHASE OF A NEW BUSINESS?
RL: When the SBA conducted a survey of business failures a few years ago, failure to plan was number one. Other culprits included insu cient start-up capital and lack of experience. Those three main reasons remain true today. Before investing into the time and money necessary to start a business, do your research, ask for help, and take your time: do not start a business before you’re reqady. Care-
ful planning will go a long way towards preventing costly mistakes. Second, get some experience in the industry to con rm that this is something that you want to do, and
that you understand it. Lastly, do not underestimate all the expenses that come with starting a business. When creating your start-up budget, overestimate your projected expenses, and underestimate your revenues.
RM: Certain kinds of people make certain kinds of mis- takes. The most common mistake in the inventor pro le is to keep tinkering with the invention past the time it should have been produced and delivered to the customer. The most common mistake in family businesses is to start to bring the family baggage into the business. In businesses that have multiple founders, the most common mistake is what I call ‘dividing up the future’. Everybody’s ghting over who gets what, and there is no what (yet). yes, when you lay out the business, you need to determine who owns what, and who gets what share—but don’t let it distract you by turning what primarily should be an “outward” focus, to one that’s “inward.” Lastly, one of the most common mistakes with money, is not planning for enough money for success. I’d say not having enough cash is most common in all pro- les.
lubbockonline.com/business 37


Ribbon Cutting – Edge / Lifestyle Homes Lakewood Subdivision
Address: 10404 Grover Lubbock TX 79424 Holding Scissors: Roger Billingsley - Owner Holding Ribbon: Chamber Ambassadors
L: Kim Davis and R: Bart Bartholomew
Chairman of the Ambassadors: Mike Lambert
Other: Re/Max Scott Toman Team, Sales Rep-Haley Roach, CFO-Tim Rapp, Project Manager-Cody Baker, Allen Carson-Commercial State Bank, Family, Friends, and Chamber Ambassadors
Ribbon Cutting - Archery Shack Address: 7113 Santa Fe Dr Lubbock TX 79407 Holding Scissors: Chad Trumble, Jack Shannon, Bruce Beal & Roy Sebesta - Owners Holding Ribbon: Chamber Ambassadors L: Chris Lambert and R: Scott Cain Chairman of the Ambassadors: Mike Lambert Other: Staff,Family,Friends,andChamberAmbassadors
Ribbon Cutting - Huntington Learning Center Address: 8004 Quaker Ave Ste C Lubbock TX 79423 Holding Scissors: Andrew Beck-
Director and Haley Beck – Managing Director
Holding Ribbon: Chamber Ambassadors
L: Lee Adams and R: Brad Davis
Co - Chairman of the Ambassadors: Kim Davis
Other: Staff,Family,Friends,andChamberAmbassadors
38 LUBBOCK BUSINESS inc.
u
o
s
r
G
n
d
B
r
e
a
n
g
s
g
n
&
R
i
b
kio
b
n
C
u
t
t
i


Ribbon cutting - Law Of ce of Nathan Ziegler and Associates New of ce Address: 12413 Quaker Ave Lubbock TX 79423 Holding Scissors: Nathan Ziegler - Attorney Holding Ribbon: Chamber Ambassadors L:Victoria Braun and R:Amy Riggan Chairman of the Ambassadors: Mike Laughlin Other: Attorneys – Sharma Moriarty, Andrew Gray and Jonathan Galley, Of ce Director- SondraZiegler,President &CEOoftheLubbock Chamber of Commerce- Eddie McBride, Staff, Family, Friends, and Chamber Ambassadors
GROUNDBREAKINGS & RIBBON CUTTINGS
Ribbon Cutting - Four Bar K 25th Anniversary Address: 302 E. 82nd St Lubbock TX 79423
Holding Scissors: Chuck Kershner - Owner
Holding Ribbon:Chamber Ambassador L:Kim Davis and R:Janie Zuniga
Chairman of the Ambassadors: Mike Laughlin
Other: Staff, family, friends and Chamber Ambassadors
Ribbon Cutting – Covenant Medical Group – Northwest Clinic Address: 611 N. Frankford Ave Lubbock TX 79416 Holding Scissors: Dr. Stan Garrett, Dr. Shital Popat & Dr. Porntip ChungchansatHolding Ribbon: Chamber Ambassador L: Kim Putman and R: Libby King Chairman of the Ambassadors: Mike Laughlin Other: Steve McCamy-CEO Covenant Medical Group, Richard Parks-President/CEO Covenant Health, Bishop Robert Coerver, Sandy Ramos – Manager, Kelly McDaniel – Covenant Health Vice President, Kristen Kothman – Covenant Medical Group Vice President, Mayor Dan Pope, Boulder Associates, Petra-ICS, Lee Lewis Construction, TTU Masked Rider and “Fearless Champion”, Staff, family, friends and Chamber Ambassadors
Ribbon Cutting – ABWA-Lubbock Area Lights Chapter Christmas Basket Fundraiser
Address: 1500 Broadway STE 101 (Chamber Of ce) Holding Scissors: Kim Davis
Holding Ribbon: Chamber Ambassador
L: Mike Laughlin and R:Victoria Braun Chairman of the Ambassadors: Mike Lambert Other: ABWA - Lubbock Area Lights members, friends and Chamber Ambassadors
lubbockonline.com/business 39


Escobedo business SEENBy Sara
Community Appreciation Lunch - December 9, 2016
Chris and Nico Flores
Edward and Frances Ochoa
David and Rosie Carrillo
Henry and Mary Castellano
Henry and Patsy Gonzales
Sylvia and Joe Leos
Joe and MaryAnn Rodriguez
JR Chadis and Cindy Ybanez
Juan and Sandra Chadis
Lorena Tarango and Gilbert Gloria
Margie and Juan Diaz
Noe and Esther DeLeon
40 LUBBOCK BUSINESS inc.


Cochran named UW chairman
session,” said Cochran. “I look forward to continuing to work with our volunteers and sta to help make lasting changes in the communities our local United Ways serve.”
Cochran has served as CEO of the Lubbock Area United Way for 22 years. In November, the local organization announced that it had surpassed its annual campaign goal and received more than $6 million in contributions for the rst time.
announced David Miller, McDougal Construction president, has been named 2016 Texas Association of Home Builders Developer of the Year.
Duncan started his career selling luxury homes in 2005 in the Hill Country of Texas after graduating from Abilene Christian University. He is a father of two girls and husband to Rebecca. His focus is recruiting leadership candidates and training real estate agents.
Miller has traveled the state representing the residential construction interests at local home builders’ associations, school district meetings, state legislative hearings and business forums. Since House Bill 5 passed in 2013, Miller has been an advocate of its necessity and importance in local schools
and students. Currently, he is volunteering his time as TAB’s Association Planning Committee chairman where he works with the volunteer leadership and sta to develop a future road map for the association.
Workforce Solutions awarded at conference
The West Texas Intermediate Sanction Facility received the Local Employer Award of Excellence for the Workforce Solutions South Plains area at the Texas Workforce Commission’s 20th Annual Texas Workforce Conference held Dec. 7-9 in Houston.
“The TWC Annual Conference celebrates and recognizes exceptional performances by employers who have not only partnered with Workforce Solutions South Plains but also contributed to their community,” said Martin Aguirre, Workforce Solutions South Plains CEO. “Awards are presented to local
Glenn Cochran
Glenn Cochran, Lubbock Area United Way president and CEO, was recently elected board chairman of
United Ways of Texas and will begin his term in January.
United Ways of Texas serves 70 local United Ways across the state. Each year, the Texas United Way network makes total nancial investments of more than $347 million. More than $297 million comes from local fundraising campaigns. United Ways of Texas focuses on policy issues related to education, nancial stability, health and the nonpro t sector.
“It is an honor to chair this organization, especially at a
time when there are so many important issues to be considered in the upcoming Texas legislative
Duncan new VP; Miller gets honor
McDougal Companies also
Marc McDougal, McDougal Companies CEO, recently announced Doug Duncan
as vice president of McDougal Realtors.
Doug Duncan
lubbockonline.com/business 41
MOVERS & SHAKERS


workforce boards such as ours for exceptional achievement in various categories. We were honored to represent the South Plains and receive the two cash awards that will enhance our activities.”
West Texas ISF is a for-pro t correctional facility housing 289 inmates and employing 55 sta members. The facility’s correctional philosophy is to rehabilitate through education and it o ers a cognitive intervention program to assist o enders in understanding the negative impact of poor behavioral choices and gain employment upon re-entry into the community.
South Plains was also recognized for outstanding Board performance, receiving a $75,000 Child Care Quality Incentive award. The TWC Performance Incentive awards recognize boards that display increased accountability and improved e ciencies. South Plains was recognized for outstanding board performance, receiving the Industry Sector Outreach award for positive impact helping employers address workforce shortages in targeted occupations. South Plains was awarded $30,000 to support services in this area. Monetary awards for achievement in these categories will be used to enhance workforce and child care service programs during the next year.
McDowell named Centennial Bank VP
and stakeholders. Speaking on behalf of our executive management team and board directors, we are proud to welcome someone of Kathy’s caliber to the Centennial family.”
McDowell graduated from Texas Tech with a bachelor of arts in public relations. She has more than six
of her 10 years in the eld in the marketing department of another Texas community bank. She and her husband Dustin are the parents of Brody and are actively involved with the Cooper West Teacher Parent Team. A member of the Lubbock, the McDowells own a local home theater, automation and security systems business.
“Upon learning of this opportunity, I was eager to make the partnership
a reality,” said McDowell. “I was ready to return to the community banking world to get back into the business of impacting markets across Texas while raising my family here in Lubbock.”
Wayland marketing
has worked as a marketing and business development consultant
for Pforym WELL in Lubbock.
He has also served as City Bank’s senior vice president/human resources director, as well as working as Wayland’s Lubbock campus director of development from 2014-15. From 2004-14, Owens
was United Supermarkets director of communications and public relations and served as Covenant Health System director of marketing and public relations for six years. Owens worked in media and public/ community relations jobs at St. Mary of the Plains Hospital for nine years.
Peoples Bank announces
Kraig Kern
Jake Mahan, promoted to vice president, joined the bank in 2009 and serves
as a lender Shallowater branch.
Kraig Kern has been promoted to vice president. Kern joined Peoples Bank in 2014 and runs the credit analyst department. Jamie White, promoted to assistant vice president, began working for the bank
in 2012 and serves as a credit specialist. Chad Sauceda, promoted to banking o cer, joined the bank in2013andisa credit specialist.
Kathy McDowell
C. Brett McDowell, Centennial BANK chief lending officer, recently announced Kathy McDowell was hired as vice president/ director of
marketing.
“After a thorough search for just
the right t for this critical role, Kathy emerged as our leading candidate and was de nitely worth the wait,” said McDowell, the chief lending o cer and no relation. “Her banking and entrepreneurial experience will be key in enhancing the presence
of Centennial BANK in each of our markets for the bene t of our clients
director named
Owens will oversee the O ce of Communications and the O ce
of Communications and the O ce Web Services, and will work with many other areas in the university, including enrollment management and institutional advancement. He said Owens will be responsible for promoting the university, its people and its programs at all of Wayland’s 13 campuses.
“He will lead an integrated, system-wide initiative to plan and execute marketing e orts across all Wayland campuses,” Hall said. “Throughout his career, Eddie
has demonstrated excellence in
his profession as well as a strong commitment to community service. We are thrilled to add him to the Wayland team.”
For the past year Owens
Wayland Baptist University recently announced the hiring of Eddie Owens as executive director of integrated marketing.
Bobby Hall, Wayland president, said
Chad Sauceda
Eddie Owens
Lubbock organization earns Pinnacle Award
The Lubbock Chapter of the Society for Human Resources Management was recently awarded the Pinnacle Award.
This is the highest honor given to SHRM chapters for highly notable contributions to the human resource profession.
The LSHRM chapter was honored for their Young Professionals Recruitment and Engagement initiative for the Texas Tech Student SHRM chapter. The initiative
focuses on the upcoming generation of human resource professionals
for students in a higher education environment or recent graduates.
staff promotions
William Booe
Sonia Arismendez
Chelsea Salazar
Jake Mahan
Larry Allen, Peoples Bank CEO and chairman, recently announced promotions
for seven employees. William Booe, promoted to executive vice president, joined Peoples Bank in 2005 and is the
chief operation o cer. He recently received the O cer of the Year award. Sonia Arismendez, promoted to senior vice president, has been with the bank for 14 years and is the lobby services manager. Chelsea Salazar, promoted to senior vice president, joined the bank in 2007 and is the marketing director for all branches.
Jamie White
42 LUBBOCK BUSINESS inc.
MOVERS & SHAKERS


FROM JAN. 20
 The Farmhouse; owner: Steve Gonzales, SEJG, LLC.
 MCTA Properties, LLC Series C; owner: MCTA
Properties, LLC Series C, Maria Dominguez Del Rayo
 It’s Just Jen; owner: Jennifer Rigdon, George Rigdon
 C&H Delivery Service; owner: C&H Delivery Service
 Benham Auto Sales & Service; owner: Tim Benham
 One Guy from Italy; owner: Gabevitela Enterprise
 Alpha and Omega computers; owner:
Dudley P. Barber II
 Yug-Ryb Youth’s under guidance; owner: Sarah Garcia,
Margaret Garcia, Adrianna Villarreal
FROM JAN. 19
 Lubbock Real Estate; owner: Deryl Hoodenpyle
 Select Supplies; owner: R&L Houston Investments, LLC
 10107 Venita Avenue LLC; owner: Paul Dowell,
Dowell Rentals, LLC
 614 N. Bangor Avenue, LLC; owner: Paul Dowell,
Dowell Rentals, LLC
 PWD Management, LLC; owner: Paul Dowell,
Dowell Rentals, LLC
 3510 46th Street, LLC; owner: Paul Dowell,
Dowell Rentals, LLC
 Hub City News; owner: Paul Bjerk
 Brian Sikes DBA Lubbock Appraisals & Inspections;
owner: Brian Sikes
 T-Crystal Nails; owner: Quy Nguyen
 Mobile Auto Repair; owner: Keith Martin
 Johnny’s Automotive Wrecker Service; owner: Fink
Johnnys Automotive Wrecker Service Johnny, Fink Johnnys Automotive Wrecker Service Angela
FROM JAN. 18
 Art Sandoval Landscape; owner: Daniel D. Gibson, AGME Enterprises, LLC.
 A 1 Service Electric; owner: John C. Myres Jr. FROM JAN. 17
 Smitten Handwriteen; owner: Adrienne Cope  Cheers; owner: Mark Garland
• Chemtec Pest Control; owner: Teresa Graham,
Billy Younts
 V’s Alterations; owner: Veronica Portillo
 Synodic Creations; owner: Kamryn Cammack,
Madeline Fondren
 Smokers Choice; owner: Rudy Trevino, Smokers Choice  Paris Nails; owner: Lam Tran
 Gutierrez Roo ng and Construction; owner:
Ricky Gutierrez
 Missy Lou’s Cleaning Service; owner: Michelle Conner  Precise Pressure Cleaning; owner: Ronald Hall/
Precise Pressure Cleaning
 The Wood Studio; owner: N/A
 Womens Group – Ministeria Tierra De Promesas;
owner: Brenda Macias, Dalila Iniguez
 2911Lifecoaching;owner:Jennifer Randall  Kate McKee Consultant; owner:
McKee Specialties, LLC
 Alpha and Omega Computers; owner: Dudley Barber,
 Carlos Adkins; owner: Stain the Picket Fence
 J&G Tree Service; owner: J&G Tree Services
 L.A. 28 Customs & Collision; owner: Lara/ L.A. 28
Customs & Collision Nathaniel
 Caprock Carpentry, LLC; owner: Steven Morton
FROM JAN. 11
 K&C Enterprises; owner: Clint & Kristi Conner  Heirlooms in Bloom; owner: Susan Beard
 T.O.F.S. Trailers; owner: Lacy Lusk, Zach Edwards  Z Ranch Services; owner: Aldo Almanza
 24 HR Care; owner: Subodh Patel
 Haden Signs of Texas; owner: Lindsey Craft,
PMG Digital, Inc.
 Natural Massage Care; owner: Ma Li Jie  Texas Outlaws; owner: Steve Thurman
FROM JAN. 10
 Dragon Buffet; owner: Sizhu Yuan
 Ashley’s Own Eats & Treats; owner: Ashley Smith
 Sarah Nall Bookkeeping Services; owner: Sarah Nall  Hard Body Bustoms LLC; owner: Richard Grif n,
Robert Grif n
 M.O.S.; owner: Melissa Lucero
 Crystal Nails; owner: Quy Nguyen
 Parker Detailing Group; owner: Dennis Parker  Structural Moving Specialist (SMS); owner:
Dennis K. Kirk
 Capwell Legal Support Services;owner:
Joelle McGougan
 WoodshedGifts;owner: JerryMoriearty, Sarah Moriearty
FROM JAN. 13
Lisa Barber
 CloudTrainingServices;owner:DarlaCloud
FROM JAN. 12
lubbockonline.com/business 43
DOING BUSINESS AS


FULL PAGE AD