Featured Speaker at Leadership Essentials Summit

I will be speaking at the 2009 Leadership Essentials Summit, Dec. 8-11, 2009.  This is an audio conference and therefore, no travel is necessary.  All 10 sessions are included in the price and companies may take advantage of the audio format to benefit numerous employees for the price of one admission.  Please check out the details of those presenting and consider signing up.  All you need to do is follow the link provided by clicking the title of this post.  Alternatively, you may purchase an audio recording of the three days of sessions.  Opportunities for Q&A are included in the sessions.

Rethinking the Butterfly

By Brona Pinnolis ©2009

When I was a very young girl I wanted to add “Butterfly” as a second middle name. “Brona Ellen Butterfly Pinnolis” sounded much more uplifting, to me anyway, than my regular name. Everyone had trouble pronouncing Brona (rhymes with Donna), so perhaps it was understandable I sought to enhance it with something so appealing and at the same time so easily understood. As I buzzed silently around my backyard during the hot southern summers, arms outstretched and flapping as elegantly as a seven-year-old can flap, I imagined I was a butterfly, perhaps rescued from the straight pin fate of my older brother’s collection of monarchs and beautiful black swallowtails.

It was during my Butterfly stage I first decided the writing life was for me. Very little excited me more than taking pencil, crayon or chalk and turning a blank sheet into something. In those days our childhoods were lived fully outdoors, so writing took place under a shade tree instead of at a desk or table. I loved the crackling sound upon first opening a marble-covered composition book, its wide-ruled sheets just waiting for my bitten-fingered little hands to begin. Sometime during this phase I wrote my first rhyming poem called “Colors.” My mother’s excitement and joy at my accomplishment made me believe I was good at this and so I kept on doing it. I still remember the opening lines of that poem and remember thinking it was profound, although I had no idea what that word meant at the time; it was just the feeling of these words being really, really important.

I carried the commitment to a life of writing all the way to college. I had been a dutiful diarist, an A+ paper writer in high school, and thought I would become a journalist, all the while planning on writing “The Great American Novel.” I worked on my school newspaper for four years, but had a slamming realization on the way to fulfilling this dream: I was too shy and uncomfortable calling people to ask them questions they didn’t want to answer. It created a deep pit in my stomach. Once in a while I could muster the strength necessary, but on a daily basis? I just didn’t think I could do it. So I did what any self-respecting English literature major would do: I went to law school instead. If I wasn’t going to write, then I was going to talk for a living.

Occasionally during my long career as an attorney the writing bug would still arise. And, of course, there were plenty of writing opportunities in the legal profession. After I had children, I started writing short stories for them. We would illustrate them together and read them over and over again. But I kept on practicing law, earning a living, raising my family and started coming to the conclusion that perhaps writing as anything other than a hobby was really just a pipedream after all. I never forgot what one of my college professors said to me after class one day. I had the “potential to be a great writer,” but I would have to work at it every day without stopping, to become my potential. I began to think I was just too unmotivated to do this. I did have the occasional bursts when I turned my attention back to pure writing. I managed to sell a story to a national publication one time. But then again, life got in the way and the burst petered out.

There is something about turning 50, however, that makes one turn the focus squarely on your own being. The turning of the hands of the clock, the general gist of having lived more than half your life does grab one’s attention. So, as I turned my professional attention to the financial world at about that time, I decided to write. I developed opportunities to write informative articles and later decided to collaborate with two other women to write a book. Our “Women, Money & Cheesecake: A Fresh Approach to Finances” is just about ready for publication. I was finally writing again and with a purpose.

The irony of advancing technology? It is both ruining the written word and spreading it at the same time. All around me my old friends from college, the ones who did become journalists, are thinking about what to do with the rest of their lives now that newspapers are closing their doors. On the other hand, the web is an infinite ocean of writing, writing, writing. That ocean brings new opportunities, not to write “The Great American Novel,” but to write, to create and to communicate.

So, after working in finances for a few years and when I had the opportunity to teach at the university level part-time, I made the move. I left the financial office and instead dubbed myself a freelance writer. In the few short months since making this decision I am shocked to find that I am actually getting paid for doing what I love to do. I have thrown myself into the new endeavor like nothing before and jobs are finding me. I am now doing what my professor long ago told me to do, writing every day. I love it and hope my new business will continue to grow over time. With my kids almost grown I have no more excuses to let it peter out again.

Back in the halcyon days of childhood I envisioned myself as a writer. Today, at the age of 53, I finally am one. It is hard to describe the feeling of reconnecting with something I always imagined I would do. But I would have to say, if anyone asked, it might feel something akin to what I imagine the first flight feels like to my namesake butterfly.

Help! I Need Help! What You Need to Know Before You Hire

By Brona Pinnolis, Esq. c. 2009 All Rights Reserved.

Sometimes the only thing stopping you from growing your business is lack of time. As small business owners, many of us serve as sales manager, bookkeeper, administrative assistant, head of research and development and everything else that goes into making a business run. Even in a down economy, forward-thinking entrepreneurs may consider hiring help to create a competitive advantage. For those considering this move, there are some important things to consider before moving into the role of employer.

First, defining the role of a new person in the company is critical. Nothing creates more difficulty in working with an employee than confusion about job responsibilities. This is a great opportunity to find someone who is good at something that’s not your strong suit. We all have things we do better than others; using another person’s talents in this fashion makes for a good working relationship. You may want to consider that a family member may be a great resource for your needs; then again, he or she may not. Make sure you hire the right person for the job. If you hire a relative and they are not working out, you have put yourself in a difficult situation. So, make these critical judgments about fit before you bring your brother or niece in as your employee.

Second, it’s important to make a realistic assessment of how much time you can finance for another person’s work. Once you commit to hiring someone, you are committed to paying them for that work. Do you know how you are going to finance your payroll and over a sustained time period?

Perhaps one of the most important decisions is whether to hire employees or independent contractors. Many business owners are tempted to claim their workers as contractors to avoid paying taxes while, in reality, the worker should be classified as an employee. How do you know the difference? Form SS-8 from the IRS, used generally to justify a worker’s status as an independent contractor, takes you through a long series of questions to help determine if you must classify you worker as an employee. No one factor is determinative. The totality of circumstances is reviewed to make this classification. However, an employer must use extreme caution to avoid audits and reclassifications. Some factors considered include whether you set the hours for the worker, whether the worker is required to use your facilities and your equipment, whether you allow the worker discretion in determining how to complete an assigned task and the length of time the person works for you. Follow this link to IRS Form SS-8: http://www.irs.gov/pub/irs-pdf/fss8.pdf

Know the forms you will need. Once you start working with employees or independent contractors, human resources is a great area to outsource. Payroll services generally deal with all of these forms and make sure your obligations to the government are properly met, including the preparation of all quarterly or other IRS forms, in addition to cutting and issuing payroll checks. Even with a small business, this is a cost-effective method of avoiding big headaches, big interruptions in doing the actual work of the business and, potentially, big fines as well.

Finally, having employees creates responsibility to act in a lawful manner. Although employees in Tennessee are generally considered “at-will,” meaning you can hire or fire for any or no reason—so long as it is not an unlawful reason, be aware that those exceptions can consume the rule. Federal laws such as Title VII of the Civil Rights Act of 1964 guarantee equal access to employment regardless of race, color, religion, sex or national origin in any company with 15 or more employees. However, Tennessee’s Human Rights Act extends these same protections to companies with eight or more employees and extends protected status to the additional categories of age and creed. Additional protections are offered to employees with disabilities through the Americans with Disabilities Act of 1990, providing that employers with 15 or more employees must make reasonable accommodations for the disabled. Disabilities may be physical or mental.

This article reviews just a tiny portion of the laws impacting companies with employees. A great resource for anyone seeking more information on employment practices is the website for the Equal Employment Opportunity Commission, www.eeoc.gov.

This article will be published in the upcoming online edition of Memphis Minority Business Magazine, www.mmbmagazine.com.

In a Recession, "Panic" is a 4 Letter Word.

By Brona Pinnolis, c.2009, All Rights Reserved


No doubt, these are hard economic times. For many small businesses this may be the first recession in the history of the organization. If one looks to the stock market and the severe volatility over the past many months, many business owners may be wondering—or already experiencing—what these trends mean to the survival of their business.

In tough economic times, however, panic is a four letter word. Much of the volatility in the stock market has resulted from investor panic. What we do know, however, is that when sellers sell low, they are realizing their losses then and there in the hopes of not sustaining further losses. They are giving up the opportunity to ride the eventual, inevitable upswing. Business owners can take a cue from this behavior as to how to attempt to ride the recession. In four words: “Try not to panic.”

In my previous column in this magazine I wrote about the various sources of funding for small businesses. We all are too well aware of the shrinking credit market, however, and this tightened market impacts substantially on a small, newer business. If the big boys in Detroit and the major banks can’t get credit, how can a small business hope to do so? In short, for the time being it may be very difficult, but sound local businesses may have some hope in turning to sound local banks. However, now may be the time to set aside pride or stubbornness or whatever else may prevent asking for help and turning to family for bridge loans. As a business owner, you should extend to family the same standards you would to a bank: bring a solid business plan to the table, show your plan for weathering the next year or two of possibly lean times, and pay interest to them. In a volatile market this may even seem like an attractive alternative to some family investors. Be good to your word, but also put it in writing.

Look for new markets for your products. As the value of the dollar decreases, American goods become more attractive in foreign markets. Is there an opportunity to expand globally for the goods or services you provide? With such a great portion of the economy web-based, there is practically no market off limits. Do your research on what you sell or offer. Talk to folks in state and local government to find out what they are doing regarding international business opportunities that might fit with your business products or services.

Of course, make sure you are on the web. Any company not having a website and one that is easy to navigate is likely going to have severe problems in tougher economic times. People will shop on their computers, even for local businesses, and “do the walking” not through the old phone book but through the internet.

A slow down is also a good time to focus on existing customers. Don’t forget to remember them! Ask for their input on what they like about your company and what they would like to see different or in addition as far as your offerings. There are easy ways to set up web-based questionnaires, such as surveymonkey.com.

Finally, get out of the office and network! I personally belong to several good networking organizations including BNI (Business Network International) and Network of Memphis, a women’s organization. We all know word of mouth works in business; good networking may help you cut costs in advertising, saving precious resources. You can find BNI on the web at memphisbni.com and Network at networkmemphis.org for more information on these particular groups. The Memphis Small Chamber is an excellent resource and can be found on the web at smallbusinesschamber.com. For women who are interested in jumpstarting or re-energizing their business plan or taking their projects to the next level try Ladies Who Launch, a national organization with a Memphis presence. Find them at either ladieswholaunch.com for the national site with a link to Memphis or go directly to tammygunnels.com to connect with the local launching guru.

Readers, share your experiences about other local networking opportunities and let’s get a discussion going on what’s out there and what works. I will recap some of your comments in the next installment. Stay strong and don’t panic!

Business Management Challenge: Ethics or EthiX?

By Brona Pinnolis, c. 2009 All Rights Reserved

With financial and other business scandals making the headlines these past few months it might be easy to point the finger and dismiss this activity as the result of aberrant behavior. The scale and depth of these corporate disasters such as Peanut Corporation of America (nine confirmed deaths due to salmonella), Bernard Madoff (alleged Ponzi scheme), Stanford Financial (similar allegations) or political tribulations such as Rod Blagojevich’s alleged selling of President Obama’s Senate seat are startling, but are also nothing new. Think back to exploding Ford Pinto gas tanks, cigarette additives, oil spills in Prince William Sound, Enron, Tyco, Ivan Boesky, Michael Milken, and so on. I call this “ethiX” for obvious reasons.

The vast majority of Americans expect companies to act in an ethical fashion, not simply watch out for the bottom line. The fact is, however, that ethical behavior in a company is defined by managers and carried out every day—or not—by every person in the organization. While the culture of ethics starts at the top, most of us are familiar with the common rationalizations used to excuse unethical decisions by both managers and rank and file employees. These rationalizations include everything from the scale of the activity (“No one will miss a few reams of paper taken from the office supply room.”) to necessity (“We have to do this to be competitive.”) to peer pressure (“Everyone else does it.”). An embezzler might tell him or herself, “I’m just borrowing this money and will replace it before anyone even knows it’s gone.” They might intend to replace it, might believe they will replace it, and therefore consider it justified. However, we all know that it’s still wrong and in this latter case criminal.

Sound business management is therefore critical in creation of an ethical atmosphere in the workplace. When employees see management setting high ethical standards for themselves and creating an expectation of the same for each employee, a healthy tone is created. Conversely, if employees see management taking short-cuts, turning a blind eye to perceived ethical breaches, the company is likely to reap what it sows.

What does ethics mean in the workplace? Certainly, every profession and market sector have issues specific to their industries. However, other areas are common to any working environment. It starts at the top with good communication of company expectations for all staff.

Management can

• Set forth clear and concise behavioral expectations in an employee handbook, including a prescribed course of action for breaches of these expectations.
• Conduct team meetings and on-site training to reinforce the company values.
• Provide safe avenues for reporting of possible ethical violations. Most people do not want or cannot afford to bear the repercussions of being a so-called “whistle-blower,” but companies need and should want their employees to be able to sound the alarm if needed.
• Confer with their professional organizations or licensing boards to refresh corporate information based on developing laws, regulations or industry standards.
• Consider an “open-door” policy for employees to communicate concerns.
• Consistently and fairly discipline those, regardless of position, who breach the company’s ethical standards.
• Maintain an appropriate separation of functions among managers/principals of the company.
• Include independent audits of both financial transactions and quality and safety matters.
• Formalize job responsibilities for each individual to help define the job’s parameters.
• Stay informed about current events. The publicized ethical and possible criminal breaches in the news impact customers’ perceptions of all business. A savvy manager can take steps to allay customer concerns if you are in an affected industry.
• Solicit feedback from customers, clients, suppliers, etc. to make sure staff and management are meeting expectations on the front lines of the business.

There are numerous web resources regarding ethics in business. One excellent site is http://ethics.georgesmay.com. Bottom line, managing a company includes a responsibility to set the tone and expectation for ethical behavior from everyone.

This article is appearing in the March 2009 issue of Memphis Minority Business Magazine.

Long-Term Care Insurance: Providing Choices When we Need Them the Most

By Brona Pinnolis, C.2009 All Rights Reserved

Does this scene sound familiar? You and your husband decide to meet with a financial advisor to plan for the future. During the conversation, the advisor asks about how you expect to take care of yourselves when you become incapacitated and suggests looking at long term care insurance. “What is that?” you may ask. The advisor explains that long term care is “wealth insurance,” providing income to cover nursing home care or home assistance when you become unable to care for yourself, without regard to the size of your nest egg. Your husband turns to you and says, “Honey, we don’t need that. We’ll take care of each other.”

Such a noble sentiment, one lived out in reality by countless women who care for their spouses during the spouses’ disabilities and final illnesses. But here’s the thing: It’s very easy for a man to say, “We don’t need that,” because his long term care insurance sleeps next to him every night! He wants to stay home instead of going to a nursing home? Not always possible if you are physically unable to handle his weight and size. Paying for extra help to keep him home? You have no choice but to use your personal resources.

What happens when it’s your turn? We all know women live longer than men, about five years longer according to government statistics. So you’ve cared for your spouse and now he’s gone. Are there any resources left over for you to live on for the next five, ten, even 20 years, much less pay for your own end-of-life care? Do you want to spend all you money, leaving nothing as a legacy for your family or other meaningful causes? So, ladies, what about you? What about your mothers?

Let’s take a brief look at the numbers. Average costs of a skilled nursing facility run about $60,000-$75,000 per year. These numbers are not necessarily a one price covers all, as there may be additional charges depending on the fee structure of the particular facility. Average prices of unskilled home aide assistants range from $15-30 per hour (through an agency), times up to 24 hours per day. At $20 per hour, round the clock care could cost more than $175,000 per year. If the aide was coming in the home only 10 hours a day the annual cost could mount to $73,000. It’s easy to see how end-of-life costs plow most people under and they end up in Medicaid facilities with the government paying the tab.

Long term care insurance is really choice insurance. If and when the point comes in your life that you are unable to do the so-called Activities of Daily Living (ADL’s)—and your physician certifies your inability, long term care insurance covers having someone help with those needs. Depending on the specific policy, LTCI can provide a monthly or weekly benefit for in-home aides. These aides can be qualified to help with meals, cleaning, companionship, bathing, dressing, toileting or remembering to take medication. They can be there to make sure the stove is unplugged if necessary or help you take a walk. In other words, LTCI can provide just the level of help you need to stay home if you want for as long as possible. As stated above, this type of help doesn’t come cheap. That’s why many more people than would like to end up in nursing home facilities, where government benefit programs like Medicaid pay the freight if you can’t afford it otherwise.

LTCI also covers, up to the limit you decide to buy, skilled nursing home care or even assisted living. Again, qualifying for coverage depends on your ability to care for yourself and a doctor’s certification of the need for the care. And let’s face it: there is a wide variety in the quality of care out there in nursing home land. Just ask any friend who’s been down that road with their parents. Many families want to hire private aides for their loved ones even when in a nursing home because of the chronic lack of attention too often seen in some of these facilities. Ever wonder why there seems to be a whole new niche in personal injury law advertising devoted to nursing home neglect? Remember, those lawyers have to win their cases to make money. LTCI can help stave off the need for a facility, can get you higher quality care and can help you stay where you are most comfortable for a longer period of time.

Like any other insurance, you may or may not end up using it. We buy homeowner’s insurance and may never make a claim but it is there if we are unlucky enough to have a house fire. We buy automobile insurance in the hopes we never make a claim on it. We buy trip insurance in case we have to cancel a flight. LTCI is no different and you may feel the same way about it…hope you never use it, live a long, lucid and active life up to the moment you go to sleep one night and never wake up. Of course, reality is different for most people, who do become ill from cancer, stroke, diabetes, heart disease, dementia, Alzheimer’s, chronic respiratory disease, or just plain frailty. Let’s face it. Everyone dies from something.

For many people, there is an end-of-life reality that is not easy. LTCI can help ease this period of time both for you and the family around you. It is not a panacea. There are limits in the lifelong benefit you purchase and the number of years. The more you want, the more costly the policy. And this type of insurance has a higher premium profile than you may be used to seeing. Why? Because most people who have made it into their 50s have a pretty good chance of living into old age, with all that it brings, so there is a higher chance of payout for the insurance company. Rates, thus, reflect that reality. Some people feel they can self-insure, i.e., not buy the policy, stick the premiums they would have paid into an investment account, and use that account as a resource when the need arises. Your financial advisor can run a self-pay illustration to show how far that can take you versus the reality of two to three years in a nursing facility.

Many of you may have dealt with or are dealing with these very issues with our elderly parents. That first-hand experience with the ins and outs of Social Security, Medicare, Medicaid spend down requirements, finding good care, worrying about what your parent may be doing in their condo alone, all is invaluable in planning for our own futures. It’s one more lesson we can learn from our parents. Having an opportunity to create more options for our own end-of-life needs…that is why I call Long Term Care Insurance, “Choice” insurance.


This article is an excerpt from the upcoming book, "Women, Money & Cheesecake: A New Way to Talk about Money." It first appeared on the web at womenetcetera.com in July, 2008.