Monday, September 8, 2008
Practicing to Become a Boss
During the sales course at UBC I realize that something I need to learn is public speaking. Every time I speak to the class I’m nervous and the instructor says, “Why not join Toastmasters after you finish this class?” During my search for Toastmasters I find a group called “Toastmistress” which meets for dinner twice a month at a hotel two blocks from the office. With all of these groups you can go to visit without joining, to see whether the group is a fit.
When I meet the group the women are friendly and helpful and make me feel right at home. The fee to join is reasonable and soon I’m a member. There is a big binder full of information on making different kinds of speeches – who knew there were so many? For instance, a speech that is extemporaneous means “off the cuff” (with no preparation at all). At every meeting there is a session to practice this and soon I’m learning to think on my feet. I’m also learning how to prepare a speech and deliver it in the time allotted. There is a lot to learn.
The good social atmosphere promotes making friends because most of us have similar interests. We all need public speaking skill to realize our ambitions.
Then one evening I’m assigned to give a speech at a large hotel function, with more than 100 people in the audience. How exciting and successful this goes, all because I’ve been taught to BE PREPARED.
A year later I’m asked to be President of the club. I’m surprised but don’t hesitate to take it on. Guess what this gives me – a chance to be the boss! And not to paid employees but to volunteers, which is ever more the challenge. I learn to lead and follow up to make sure everyone does their job. Now I’m practicing public speaking and being a boss. This includes learning that sometimes people mean well but don’t do what they say they will. Now it’s necessary to give them a nudge, but nicely because they aren’t being paid.
This experience is extremely valuable because some of our clients are non-profit associations and I’m working with volunteers all the time. I can see the support I need to give to the presidents of these associations. It’s good to have a view from the other side of the fence.
When I meet the group the women are friendly and helpful and make me feel right at home. The fee to join is reasonable and soon I’m a member. There is a big binder full of information on making different kinds of speeches – who knew there were so many? For instance, a speech that is extemporaneous means “off the cuff” (with no preparation at all). At every meeting there is a session to practice this and soon I’m learning to think on my feet. I’m also learning how to prepare a speech and deliver it in the time allotted. There is a lot to learn.
The good social atmosphere promotes making friends because most of us have similar interests. We all need public speaking skill to realize our ambitions.
Then one evening I’m assigned to give a speech at a large hotel function, with more than 100 people in the audience. How exciting and successful this goes, all because I’ve been taught to BE PREPARED.
A year later I’m asked to be President of the club. I’m surprised but don’t hesitate to take it on. Guess what this gives me – a chance to be the boss! And not to paid employees but to volunteers, which is ever more the challenge. I learn to lead and follow up to make sure everyone does their job. Now I’m practicing public speaking and being a boss. This includes learning that sometimes people mean well but don’t do what they say they will. Now it’s necessary to give them a nudge, but nicely because they aren’t being paid.
This experience is extremely valuable because some of our clients are non-profit associations and I’m working with volunteers all the time. I can see the support I need to give to the presidents of these associations. It’s good to have a view from the other side of the fence.
How I Learn to Set Goals
Now that I’m planning to eventually take over the company I realize that there is a lot to learn. I don’t know much about sales, or financial statements, or handling employees, or government regulations or payroll. It is a lot to learn but I do know where to start. One of our clients is Sales & Marketing Executives and they have a course at UBC called Vansec. It’s a 12 week course, and covers the sales process in detail – just what I need.
Since I’ve never gone to university it is exciting to be taking the bus to UBC every Monday evening. Our instructor stresses overcoming fear because most of us find it a fearful process to approach someone to sell them something. Half way through the course he asks us to set a goal; something we’ve always wanted to do but been afraid to tackle. We write a letter to ourselves, saying congratulations on doing this thing we’ve always feared. He distributes envelopes on which we write our own name and home address, then in the top right hand corner where the stamp will go, we write the date he is to mail it to us. We put the letter in the envelope and hand it in. After I hand in my envelope I have a tight feeling around my chest. I had said, “Congratulations Bernice on taking a parachute jump.” Right away it gives me a scared feeling, but then I remember that this is something I’ve always wanted to do so I’d better make plans.
The months go by and now it’s August and my letter will be delivered at the end of the month. So, I go to the PNE and take a ride on the roller coaster, something else I’ve never done, but that doesn’t do the trick. This means that I must do what I said I would do. That promise was to me. And now the letter arrives but I don’t open it because I haven’t earned it.
Two days later I take the bus to Horizon Aerosports. They are closed for lunch and I think, maybe I’m not meant to do this, maybe I’d better go home. But no, I walk up and down the sidewalk to get rid of the nervous energy while I wait for them to come back from lunch. When they open I go in, fill out the forms and give them the cash payment that they require. And I walk out of there with my head up and a good feeling that now I’m on my way. A week Sunday I will take my jump (but that’s another story).
And now we’ll jump ahead to that Sunday night. When I come home I open my letter and read it. Now I’ve accomplished my goal! And I think that I’ll never again be afraid to do anything. What I really learned was that I can go ahead, even when I’m afraid, and accomplish what I set out to do.
Since I’ve never gone to university it is exciting to be taking the bus to UBC every Monday evening. Our instructor stresses overcoming fear because most of us find it a fearful process to approach someone to sell them something. Half way through the course he asks us to set a goal; something we’ve always wanted to do but been afraid to tackle. We write a letter to ourselves, saying congratulations on doing this thing we’ve always feared. He distributes envelopes on which we write our own name and home address, then in the top right hand corner where the stamp will go, we write the date he is to mail it to us. We put the letter in the envelope and hand it in. After I hand in my envelope I have a tight feeling around my chest. I had said, “Congratulations Bernice on taking a parachute jump.” Right away it gives me a scared feeling, but then I remember that this is something I’ve always wanted to do so I’d better make plans.
The months go by and now it’s August and my letter will be delivered at the end of the month. So, I go to the PNE and take a ride on the roller coaster, something else I’ve never done, but that doesn’t do the trick. This means that I must do what I said I would do. That promise was to me. And now the letter arrives but I don’t open it because I haven’t earned it.
Two days later I take the bus to Horizon Aerosports. They are closed for lunch and I think, maybe I’m not meant to do this, maybe I’d better go home. But no, I walk up and down the sidewalk to get rid of the nervous energy while I wait for them to come back from lunch. When they open I go in, fill out the forms and give them the cash payment that they require. And I walk out of there with my head up and a good feeling that now I’m on my way. A week Sunday I will take my jump (but that’s another story).
And now we’ll jump ahead to that Sunday night. When I come home I open my letter and read it. Now I’ve accomplished my goal! And I think that I’ll never again be afraid to do anything. What I really learned was that I can go ahead, even when I’m afraid, and accomplish what I set out to do.
Bringing in the Money
Now that I’m a partner in our business I’m really motivated to bump up our cash flow, because now I receive a percentage of the profits. And my portion of the profits is what I will use to buy more shares.
As I sit at my desk, talking to clients and taking in the work, I begin to see that some of our processes could be improved. We are quite generous in extending credit to new customers without asking them for any information. I decide to put all new clients on a cash basis until I can get to know them. Then if they ask for credit I’ll have them fill out a one page credit application.
There is a big job that Denize asks me to handle, and that is to accumulate all of the hours worked for each client (often in ¼ hour increments) plus services like photocopies and postage and then type up invoices. I could see why Denize needed a partner – this was way too much work for someone who was overseeing the whole business. There is a lot of detail and it had been taking her almost three weeks to finish the job each month. Now, by concentrating all my time on it, I can finish in three days. And a few days after the invoices go out in the mail, the cheques begin to arrive!
Then there is one more task that very few people enjoy; calling clients whose bills are overdue to ask for payment. I can see that this will really impact our cash flow and go to work on it. It is hard at first, but after a while it becomes easier. There are some people who are simply casual about paying bills and these are the easy ones; they just need a reminder. Others try to put me off and I have to stand my ground; always being respectful yet firm and keeping everything on a professional level (no matter how I feel about them personally). It won’t make sense if I alienate customers and they go elsewhere.
I still can’t understand financial statements but I learn that with more cash in the bank we never have to pay overdraft charges. Also we can take advantage of discounts that our suppliers offer us for quick payment. And when year end comes and it’s time to distribute the profits the money is there for Denize and I. That part is VERY clear to me!
As I sit at my desk, talking to clients and taking in the work, I begin to see that some of our processes could be improved. We are quite generous in extending credit to new customers without asking them for any information. I decide to put all new clients on a cash basis until I can get to know them. Then if they ask for credit I’ll have them fill out a one page credit application.
There is a big job that Denize asks me to handle, and that is to accumulate all of the hours worked for each client (often in ¼ hour increments) plus services like photocopies and postage and then type up invoices. I could see why Denize needed a partner – this was way too much work for someone who was overseeing the whole business. There is a lot of detail and it had been taking her almost three weeks to finish the job each month. Now, by concentrating all my time on it, I can finish in three days. And a few days after the invoices go out in the mail, the cheques begin to arrive!
Then there is one more task that very few people enjoy; calling clients whose bills are overdue to ask for payment. I can see that this will really impact our cash flow and go to work on it. It is hard at first, but after a while it becomes easier. There are some people who are simply casual about paying bills and these are the easy ones; they just need a reminder. Others try to put me off and I have to stand my ground; always being respectful yet firm and keeping everything on a professional level (no matter how I feel about them personally). It won’t make sense if I alienate customers and they go elsewhere.
I still can’t understand financial statements but I learn that with more cash in the bank we never have to pay overdraft charges. Also we can take advantage of discounts that our suppliers offer us for quick payment. And when year end comes and it’s time to distribute the profits the money is there for Denize and I. That part is VERY clear to me!
Creating a Partnership
Now that I’ve found the money to become a partner it is time to set up a formal agreement. The company accountant offers advice on how to do this. He suggests that we each set up a holding company and gradually transfer the shares from Denize’s holding company to mine. He also suggests that we each take out an insurance policy on the other. Hmm, this is more complicated than getting married.
Here’s something new to learn; how to set up a registered company. At the government office we pick up the forms and filling them out becomes a task for the next week-end and includes specifying a financial year end. Then one evening we meet again with the accountant. He checks the forms and tells us about the next step; mailing the applications and wait to see if our name has been accepted. To make it more likely we both set up our holding companies with our own names plus Incorporated; mine is M. B. Davidson Inc. Once our names are accepted, all transactions now go through the two companies and we each set up a bank account in our new company name.
Next step is taking out life insurance, which the company will pay for. Because of the difference in age, Denize’s is more expensive and I am glad I don’t have to pay for it personally. A woman comes to the office to check us out physically and says that I’ll likely never have high blood pressure (a good thing when you work under stress a lot). Once the insurance is in place, if anything happens to Denize, I will receive the proceeds of the policy which will enable me to buy out her heirs. And the reverse works for Denize.
Now I legally own 30 percent of the shares in the company and any distribution of profits is paid directly to my holding company. It is time to set out my intention to purchase the remainder of the shares over the next four years, at which time Denize will retire. We have an efficient way for me to accumulate shares and pay very little income tax. Also I have the benefit of knowing that if anything happens to Denize the business will be mine.
Having a good accountant is a wonderful thing and I did not need to hire a lawyer, saving several hundred dollars. Everything is done properly and now we can get to work.
Here’s something new to learn; how to set up a registered company. At the government office we pick up the forms and filling them out becomes a task for the next week-end and includes specifying a financial year end. Then one evening we meet again with the accountant. He checks the forms and tells us about the next step; mailing the applications and wait to see if our name has been accepted. To make it more likely we both set up our holding companies with our own names plus Incorporated; mine is M. B. Davidson Inc. Once our names are accepted, all transactions now go through the two companies and we each set up a bank account in our new company name.
Next step is taking out life insurance, which the company will pay for. Because of the difference in age, Denize’s is more expensive and I am glad I don’t have to pay for it personally. A woman comes to the office to check us out physically and says that I’ll likely never have high blood pressure (a good thing when you work under stress a lot). Once the insurance is in place, if anything happens to Denize, I will receive the proceeds of the policy which will enable me to buy out her heirs. And the reverse works for Denize.
Now I legally own 30 percent of the shares in the company and any distribution of profits is paid directly to my holding company. It is time to set out my intention to purchase the remainder of the shares over the next four years, at which time Denize will retire. We have an efficient way for me to accumulate shares and pay very little income tax. Also I have the benefit of knowing that if anything happens to Denize the business will be mine.
Having a good accountant is a wonderful thing and I did not need to hire a lawyer, saving several hundred dollars. Everything is done properly and now we can get to work.
Finding the Money
Here I am at 44, a single mother with my youngest daughter still living at home, and the opportunity of a lifetime dangling just out of reach. My boss has offered me a partnership in the company where I’ve worked for the past year and all I have in savings is an RRSP of $1,000 (with the loan for it only half paid).
A year ago I left an abusive husband and changed my name so that he couldn’t find me. Even though I’d been working full time for the past 14 years I now had no credit record. This is why I went to the bank at the end of last year and borrowed $1,000 for an RRSP. There was absolutely no risk for the bank because they hold the RRSP, and as I make regular payments I gradually build up enough credit record to apply for a Visa card. I am making baby steps but now need a giant one to take advantage of this opportunity.
About all I can do is to make sure that I’m on time with payments on my loan and to Visa. Also, I put away thoughts about buying a car, which I had hoped to do before year end. The office is just a 20 minute walk away so I can manage without a vehicle.
But where am I going to get $30,000? It seems like a fortune and as time goes on I’m afraid that someone else will come along.
It is a long year later when my parents come to visit and my father mentions that he’d just sold two houses. If he hadn’t said that I never would think to ask him for a loan. After a couple of days I do tell him that I have an opportunity to buy into the business. He asks me several questions and says, “I’ll talk it over with your mom”. After they discuss it he says they will lend me $15,000 and tells me that the bank will probably lend me the rest. And he is right!
Two big lessons I learned in this transaction. It’s easier to borrow half of what you need and the bank will listen to you if you have some money to invest. Just as important; the interest I’m paying to dad and the bank is a tax benefit and for several years I will pay very little income tax. Instead I am investing in my future. And with no money of my own I’m buying a successful business, based on my ability to be trustworthy, responsible and hard working.
A year ago I left an abusive husband and changed my name so that he couldn’t find me. Even though I’d been working full time for the past 14 years I now had no credit record. This is why I went to the bank at the end of last year and borrowed $1,000 for an RRSP. There was absolutely no risk for the bank because they hold the RRSP, and as I make regular payments I gradually build up enough credit record to apply for a Visa card. I am making baby steps but now need a giant one to take advantage of this opportunity.
About all I can do is to make sure that I’m on time with payments on my loan and to Visa. Also, I put away thoughts about buying a car, which I had hoped to do before year end. The office is just a 20 minute walk away so I can manage without a vehicle.
But where am I going to get $30,000? It seems like a fortune and as time goes on I’m afraid that someone else will come along.
It is a long year later when my parents come to visit and my father mentions that he’d just sold two houses. If he hadn’t said that I never would think to ask him for a loan. After a couple of days I do tell him that I have an opportunity to buy into the business. He asks me several questions and says, “I’ll talk it over with your mom”. After they discuss it he says they will lend me $15,000 and tells me that the bank will probably lend me the rest. And he is right!
Two big lessons I learned in this transaction. It’s easier to borrow half of what you need and the bank will listen to you if you have some money to invest. Just as important; the interest I’m paying to dad and the bank is a tax benefit and for several years I will pay very little income tax. Instead I am investing in my future. And with no money of my own I’m buying a successful business, based on my ability to be trustworthy, responsible and hard working.
Opportunity of a Lifetime
How could I know that this was the night that would change my life? Denize Callaway, my boss, has invited me to have dinner. She owns Tri-C Secretarial Services Inc., which operates a downtown packaged office with 16 furnished offices rented to clients. Our staff of five women works hard every day; so it’s always a relief to leave the office, take a deep breath and get ready to relax. As we drive to the restaurant we chat about our clients, Denize’s favourite topic. This woman lives and breathes her company.
Once we’re seated with a glass of chardonnay, waiting for our dinners, Denize steers the conversation in a different direction. She asks, “Have you decided to stay in Vancouver?” A year ago she had hired me when I was newly arrived from Revelstoke and I guess is now checking to see if I have ties back there.
“You bet I’m staying – I love it here!” Originally from the Toronto area, with winter snow and summer humidity, the coastal climate is very seductive, and when I yearn for snow all I have to do is go to a ski hill. But…the next question floors me.
“I’m hoping to retire to my place in Pemberton in a few years, and I’m wondering if you’d like to come in as a partner and eventually take over the business?”
My eyes widen and I don’t know what to say – and I can’t say what is in my heart (I’m just staying here ‘til I find something better. I really want a job with benefits so I can have my daughter’s teeth straightened.)
Instead what comes out is, “I don’t know Denize. I guess the biggest thing is that I don’t have any money to invest. I’ve just barely managed to furnish my apartment over the past year. I’ll have to think about it.”
And now I have a whole new perspective. The job that’s been a fill-in looks more promising. As I see it from new eyes, we do well whether the economy is up or down, and that’s an advantage that few companies have. But I haven’t a clue about where I can find funds for a down payment for this very successful business.
Once we’re seated with a glass of chardonnay, waiting for our dinners, Denize steers the conversation in a different direction. She asks, “Have you decided to stay in Vancouver?” A year ago she had hired me when I was newly arrived from Revelstoke and I guess is now checking to see if I have ties back there.
“You bet I’m staying – I love it here!” Originally from the Toronto area, with winter snow and summer humidity, the coastal climate is very seductive, and when I yearn for snow all I have to do is go to a ski hill. But…the next question floors me.
“I’m hoping to retire to my place in Pemberton in a few years, and I’m wondering if you’d like to come in as a partner and eventually take over the business?”
My eyes widen and I don’t know what to say – and I can’t say what is in my heart (I’m just staying here ‘til I find something better. I really want a job with benefits so I can have my daughter’s teeth straightened.)
Instead what comes out is, “I don’t know Denize. I guess the biggest thing is that I don’t have any money to invest. I’ve just barely managed to furnish my apartment over the past year. I’ll have to think about it.”
And now I have a whole new perspective. The job that’s been a fill-in looks more promising. As I see it from new eyes, we do well whether the economy is up or down, and that’s an advantage that few companies have. But I haven’t a clue about where I can find funds for a down payment for this very successful business.
Subscribe to:
Posts (Atom)
