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Decision Vision Episode 129: Should I Sponsor a Foreign Employee for a Work Visa? – An Interview with Karen Weinstock, Weinstock Immigration Lawyers

August 12, 2021 by John Ray

Weinstock Immigration Lawyers
Decision Vision
Decision Vision Episode 129: Should I Sponsor a Foreign Employee for a Work Visa? - An Interview with Karen Weinstock, Weinstock Immigration Lawyers
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Weinstock Immigration Lawyers

Decision Vision Episode 129: Should I Sponsor a Foreign Employee for a Work Visa? – An Interview with Karen Weinstock, Weinstock Immigration Lawyers

When a business has an opportunity and need to hire a foreign employee and sponsor them for a work visa, what issues and obligations does that decision raise?  Having immigrated from Israel over twenty years ago herself, Karen Weinstock of Weinstock Immigration Lawyers not only has personal experience with this question, but over two decades of experience assisting companies with the complexities of sponsoring and hiring an employee from outside the U.S. Decision Vision is presented by Brady Ware & Company.

Weinstock Immigration Lawyers

Weinstock Immigration Lawyers is a premier immigration law firm, helping immigrants achieve their American dream by securing work visas and green cards to the USA.Weinstock Immigration Lawyers Weinstock Immigration Lawyers offer legal services to companies and individuals to obtain all their immigration needs to the USA, including all work and family visas, green cards, citizenship, and defense from deportation.

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Karen Weinstock, Managing Attorney, Weinstock Immigration Lawyers

Weinstock Immigration Lawyers
Karen Weinstock, Managing Attorney, Weinstock Immigration Lawyers

Karen Weinstock is the Managing Attorney of Weinstock Immigration Lawyers, one of the best immigration law firms in Atlanta, Georgia. With over two decades of experience, she has substantial expertise representing U.S. and international companies to secure global talent and ensure a successful transition for foreign employees and their families. Karen has represented Fortune 500 and publicly traded companies in both the U.S. and abroad. Indeed, she has helped many European, Asian, and Latin American enterprises and international investors achieve their American Dream. As such, she is also a sought-after speaker on immigration law in forums, conferences, and the media.

Born and raised in Israel, Karen immigrated to the United States in 2000. Her passion for immigration law is a direct result of her personal experience. Karen’s compassion for clients and commitment to excellence distinguishes her as one of the best immigration attorneys in the nation. Karen is trusted not only by her clients. Atlanta’s largest corporate law firms and other immigration attorneys consult her for advice in complex immigration matters on a regular basis. Legal and business communities across the country regard Karen as a true leader in immigration and a role model among women entrepreneurs.

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Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the host of the Decision Vision podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms, and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

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Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth-minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

Decision Vision is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision-maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the Decision Vision podcast.

Past episodes of Decision Vision can be found at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

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TRANSCRIPT

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions. Brought to you by Brady Ware & Company. Brady Ware is a regional full service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:21] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:40] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:17] Today’s topic is, Should I sponsor a foreign employee for a work visa? And in the last few months, we’ve had a couple of topics on alternative sources to employees. We’ve had a conversation about using or hiring people with criminal records. We’ve had a conversation about hiring the handicapped and disabled. And another source now might be employees that do not currently have authorization to work in the United States.

Mike Blake: [00:01:52] And just as before, when we covered these topics a couple of months ago, we remain in an unprecedented economic scenario in the United States, at least in my lifetime because I was born in 1970 so I go back as far as the gas shortages. And, you know, I think the same concept applies that, you know, as we need workers, frankly, we can’t afford to leave any stone unturned in the search for talent. And I understand that immigration is a very politically and ideologically charged topic. I’m not going to engage in that discussion today.

Mike Blake: [00:02:39] All we’re going to do is address the situation, or the question, the decision, of when one has an opportunity or a need to hire a foreign employee for a work visa. What goes into the decision to actually moving forward with that? Because I’ve only seen it from afar. I don’t get the sense that it’s easy. Of course, every government prefers that we hire or that employers hire their own citizens and permanent residents first, because they’re taxpayers, they are, at least from a citizens perspective, voters, and that’s their obligation.

Mike Blake: [00:03:32] But America has been in a place for a long time where we have, in many cases, relied on foreign workers in one form or another to get jobs done. And one thing I don’t see talked about a lot – which is kind of interesting – with all the discussion of shortages of labor, for example, in the hospitality industry, is that, many of those jobs have historically been filled by people who have come from abroad. And now that we have been more vigilant in our enforcement of immigration policy, I think it’s hard to argue that that hasn’t reduced the supply of available labor in that particular sector.

Mike Blake: [00:04:14] And, of course, now that we’re seeing employment extended or enhanced employment benefits start to expire, it remains to be seen what impact that’s going to have on the labor market. And as I counsel people a lot or frequently, economics is a slow science. You cannot just take a couple of weeks or a couple of months of economic data and draw meaningfully intellectually driven conclusion. It takes six months or a year for that to happen. But I can say this, that, one data point as of recording this podcast on August 9th, 2021, we had on historic jobs report last year – I’m sorry – last week where roughly 915,000 jobs were filled in the United States.

Mike Blake: [00:04:59] So, there’s job availability and labor is coming back. But, again, it’s one data point. I’m just not going to draw a conclusion. But even in good times, we have needs and desires to hire foreign workers, not just because there’s a broad labor shortage, because there is a mismatch of skillsets in the available labor pool versus skillsets in the labor demand.

Mike Blake: [00:05:29] And coming on to speak with us is my friend, Karen Weinstock, who is managing attorney of Weinstock Immigration Lawyers. With over two decades of experience, Karen has substantial expertise representing the U.S. and international companies to secure global talent and ensure a successful transition for foreign employees and their families. Karen has represented Fortune 500 and publicly traded companies both in the United States and abroad. Indeed, she has helped many European, Asian, and Latin American enterprises, and international investors achieve their American dream. As such, she is a sought after speaker in immigration law in forums, conferences, and the media.

Mike Blake: [00:06:05] Born and raised in Israel, Karen immigrated to the United States in 2000. Her passion for immigration law is a direct result of her personal experience. Karen’s compassion for clients, a commitment to excellence, distinguishes her as one of the best immigration attorneys in the nation. Karen is trusted, not only by her clients, but the largest corporate law firms and other immigration attorneys consult her for advice and complex immigration matters on a regular basis.

Mike Blake: [00:06:31] Weinstock Immigration Lawyers is the premier immigration law firm helping immigrants achieve their American dream by securing work visas and green cards to the United States. Karen Weinstock is also the author of Matched: From Dating Disasters to Dream Relationships. So, if you’re looking, go buy that book on Amazon, or maybe there’s an audible version as well. Karen Weinstock, welcome to the program.

Karen Weinstock: [00:06:52] Thank you, Mike. It’s a pleasure to be here.

Mike Blake: [00:06:56] So, Karen, you’ve been doing this a long time. You’ve been in the situation of immigrating here, which I think gives you a unique perspective, even among your cohort. Why do companies sponsor workers for a work visa? And is that even the right term?

Karen Weinstock: [00:07:16] Yes, it is the right term. Because it does require sponsorship from a company to sponsor an individual for a work visa. So, you can’t just come and say, “Hey. My name is Mike. I really want to work here,” and just come in. It doesn’t happen like that in the most part. Unless you are somebody of extraordinary ability in the arts or the sciences or the business, then you can self-sponsor. So, if you are a Russell Crowe, for example, and you’re this world famous actor, you can say, “Hey, I’ve been nominated, or I won the Academy Award, or I’m so renowned and I can just self-sponsor for a green card.” That can happen. But for the most part, you do need a sponsorship to come in and either get a temporary work visa to the United States or to get a green card or permanent residency here.

Mike Blake: [00:08:13] So, you know, we’ll get into the nuts and bolts, but my impression is that, it’s not easy to sponsor somebody for a work visa. Why do companies do it? In your experience, why do they go through the hassle?

Karen Weinstock: [00:08:29] So, there are mainly two reasons why they do that. The first reason is that, really, there is a labor shortage and they can’t find talent in the United States for that. And the most common ones are I.T., technology workers in the past 20 years. In other, engineering, math, sciences, there’s just not enough U.S. graduates in these programs to cover the labor that is needed from various companies and various projects in various industries. So, they, basically, sponsor visas for immigrants.

Karen Weinstock: [00:09:15] The second reason is, a lot of people, a lot of foreign nationals, come and study in U.S. universities for bachelor degrees, masters, PhD programs. So, when those people graduate, they get a one year work card in the United States to basically work in their field of study and get the practical training based on their education. So, a lot of times they’ll enter a company with that work card. And then, a year later, they have all the skills, all the knowledge that the company is giving them and trained them on, and they want to sponsor them because they want them to stay. They’re good employees, and they have all the knowledge, and skills and they want to stay here, and the company wants them to stay. So, that’s usually one of the two main reasons.

Mike Blake: [00:10:13] So, I think it’s important to make, at least, I think was a distinction – you’ll correct me if I’m wrong, of course. And that is the distinction between a residency permit and a work permit. For example, just because somebody is here, even if they’re here legally, does not mean they’re necessarily legally allowed to work here and vice versa, I think. So, is that right? And if so, what are the differences between the two?

Karen Weinstock: [00:10:43] Yes. Correct. So, basically, if you are anybody else except a U.S. citizen or a permanent resident or called a green card holder, in both of these cases, you are basically free to work for whomever you want. Everybody else who is a foreign national needs a special permission, either a work authorization, a visa, or some type of document allowing them to work in the United States.

Mike Blake: [00:11:11] So, for example, somebody can’t come from, you know – I don’t know -Netherlands, they can’t come in and do sightseeing and then say, “Hey, I like to work in the United States, I think I’ll walk in to some place and grab a job.” It doesn’t work like that, right?

Karen Weinstock: [00:11:25] No. No. And that’s a very common misconception that people have and businesses have. Well, why can’t these people work here? Because they don’t have a work authorization. They don’t have a work visa.

Mike Blake: [00:11:38] So, let’s dive into it. I was with a firm that sponsored somebody who worked on my group for a work visa – and I’m glad we did. She was a fantastic employee. I’d love to get her back at some point. But, anyway, what’s involved in sponsoring somebody for a work visa? What are the steps?

Karen Weinstock: [00:12:01] So, most commonly the businesses will sponsor professionals in an H-1B work visa scenario. So, they would basically have to prove that the position itself is professional and requires at least a bachelor degree or higher, of course. And then, after that, they would have to prove that the company has the need for that employee. So, obviously, accounting, auditing, a lot of other occupations, like I mentioned before, I.T. and doctors. So then, you also have to prove that the individual has the qualifications. And if a license is necessary, they would have to have a license. And then, you file an immigration petition with the U.S. Citizenship and Immigration Services in the United States. And assuming everything is well, the person qualifies, the company qualifies, et cetera, then you can get the work visa.

Mike Blake: [00:13:11] So, my understanding is that, at least at one point, part of that process was that, an employer had to demonstrate they could not find that talent domestically. Is that still true?

Karen Weinstock: [00:13:25] So, that’s another misconception. And so, there’s a difference between sponsoring somebody for a work visa, which is temporary. That is not required to prove that they’ve recruited and tried to find U.S. citizens or U.S. workers. That is not required for a temporary sponsorship for a work visa. However, for a permanent sponsorship for a green card or permanent residency, yes, the company would have to do recruiting in a bona fide way, try to recruit U.S. workers for that job. And if they don’t find a U.S. worker, then they can go ahead and sponsor the person that’s immigrating.

Mike Blake: [00:14:06] Oh, that’s really interesting. So, candidly, I did not know that. So, I’m learning something right alongside the listeners. And that is, a company can also sponsor somebody for a green card.

Karen Weinstock: [00:14:18] Yes, that’s true. Absolutely.

Mike Blake: [00:14:20] So, I’m going to tear up the script here because I think this is really interesting. In your mind, in what case would a company want to sponsor somebody just for a work permit? And in what case would a company want to sponsor somebody for residency?

Karen Weinstock: [00:14:40] Well, in most cases, the company would actually prefer to sponsor somebody for a work visa because it’s a less expensive process, it’s a less involved process because they don’t have to run advertisements in the newspapers, and recruit U.S. workers, and all of that, because the green card process, obviously, requires a lot more. But the difference is that, if you sponsor somebody permanently, you have them permanently.

Karen Weinstock: [00:15:10] And the other challenge that companies have been having, a lot of companies basically have had this challenge for a long time, is the H-1B visa cap. So, Congress capped, 30 years ago, the H-1B numbers to 65,000 for the entire U.S. per year. And it’s really a drop in the bucket compared to how many professionals the U.S. really needs on an annual basis. I’m not even talking about right now where the economy is robust, and it’s bursting at the seams, and there’s really a lot of occupations that are in shortage, and it’s really an employee market that they can shop around different offers and get higher pay when they get higher than companies are really struggling to find talent.

Karen Weinstock: [00:16:00] But even in a situation where the economy is not doing so great, maybe earlier in 2020 with COVID, still, there were really not enough positions for U.S. workers to fulfill, for example, in a lot of technology companies or a lot of health care occupations that were needed. So, in those situations, obviously, companies would sponsor because they have the need and they can’t serve their customers or clients if they don’t have employees to do the job.

Mike Blake: [00:16:37] So, in that regard, let me ask you a question. This is a little bit of a tricky question to ask and even answer, but I think it has to be asked. And that is, you know, under the Donald Trump Administration, he and his supporters, his voters, clearly had a view to restricting immigration. Whether you think that’s right or wrong, how they do it is right or wrong, I think that that is inarguable. I don’t think that they would argue that. How did that policy or how did that overarching approach to immigration impact the opportunity or the capacity for companies to sponsor either workers or permanent residents? And those changes that were made during the prior administration, are they starting to be undone during the current administration?

Karen Weinstock: [00:17:44] So, the Trump Administration made it a lot more difficult for companies to hire or bring over foreign national employees. There’s no question about it. They really had an anti-immigration agenda. And a lot of it was basically focused towards the legal immigration. Ironically, people with H-1B visas, permanent residents that were waiting in line for years to get their permanent residency legally, and also L-1 visas.

Karen Weinstock: [00:18:25] So, if you are an international company, for example, Apple. And you have, basically, offices throughout the world, and you wanted to bring an executive or manager or a highly technical person, let’s say, from your subsidiary in France over to the United States. You have this L-1 visa option that if you prove all those requirements and the relationship between the companies, you can get somebody in here fairly quickly.

Karen Weinstock: [00:19:00] And the administration, basically, significantly hindered the abilities of these companies to bring employees by just basically interpreting the regulations very harshly and denying a higher percentage of cases, delays. Then, the travel bans started. If you were in a specific country or coming from a specific country, there was a travel ban that you couldn’t get in, period.

Karen Weinstock: [00:19:29] And so, now, with a Biden Administration, they started to undo some of those travel bans, and some of those restrictions, and things of that nature. But, still, there are COVID related travel bans that are in effect that do not make sense in a lot of ways. For example, if somebody, let’s say, is in Germany right now. And, let’s say, Germany is part of the area that has a travel ban. But if you are a vaccinated person with a visa from Germany, why should you still be subject to the travel ban? That’s the question and it’s unanswered.

Mike Blake: [00:20:14] Right. And I think, immigration is just not a problem that we can solve. Congress not being able to solve it for 30 years. But you’re right, I mean, I wonder if that confusion around the perceived or actual complexity and, even sometimes arbitrariness or capriciousness, around immigration decisions discourages companies from even making the attempt.

Karen Weinstock: [00:20:49] I think mostly it’s a misconception that companies have. Like the one that you had, “I’m to advertise position and I need to interview U.S. workers to sponsor somebody temporarily,” that’s incorrect. And for the temporary sponsorship, it’s not required. But a lot of companies actually would sponsor somebody for permanent residence if they can’t find a U.S. worker for the position. So, you have a lot of companies that are willing to do that. And sometimes they will even sponsor somebody for a green card or permanent residence because they can’t get a temporary work visa.

Karen Weinstock: [00:21:25] In some situations, for example, if somebody doesn’t have a degree or the position doesn’t require a degree, for example, a nurse. Then, a lot of hospitals would sponsor nurses for permanent residency because nurses now only need an ASN or associate’s degree, and not a bachelor. So, there’s a lot of occupations that are definitely in shortage, but don’t qualify for a temporary work visa. So, companies would sponsor them for permanent residency. And sometimes because of the cap of the H-1B caps, sometimes it’s actually faster just to sponsor somebody for permanent residency than it is for a temporary visa. So, the permanent is faster than waiting 18 months to be sponsored for a temporary visa if the visas run out.

Mike Blake: [00:22:17] So, that’s really interesting. It brings to mind sort of the law of unintended consequences. I’m sure you’re aware that many companies now are reconfiguring their own job descriptions and job requirements so that fewer of them require an advanced college degree or higher. And at least on the surface, they say that they’re doing that because they’re starting to realize that one college degree aren’t the be all and end all. And number two, that they’re realizing some of their positions that not only require a college degree, really don’t. But in the process, if they want to bring in foreign workers, they’re making it harder on themselves because they’re designating some of their own positions as no longer having that college degree requirement.

Karen Weinstock: [00:23:11] Yes. It’s actually very true. But on the flip side, for permanent residents or for a green card sponsorship, you don’t necessarily need a college degree. That’s one route to go. And the other route is just straight work experience. So, if somebody has that specialized work experience of two years, they could still qualify to get a green card instead of a temporary visa.

Mike Blake: [00:23:35] So, I’m curious, is the work permit, is it akin to something we hear about in Europe? The Europeans have something called guest worker programs. Germany has been doing it for years. In particular, people from Turkey have been filling a lot of jobs that the Germans said they don’t want. Scandinavia has been bringing people in from the Middle East, most notably Syria and Iraq and Jordan on guest worker programs. I remember during the first George Bush, Jr. Administration, he talked about having a guest worker program mainly for agricultural purposes. I think that ultimately didn’t go anywhere. But is the work visa effectively our guest worker program? Is that kind of the intent?

Karen Weinstock: [00:24:24] No. And that’s a big hole in the U.S. Immigration system that remains unfulfilled to this day. There is a seasonal worker program that was established decades ago with caps that are, again, a drop in the bucket, 66,000 a year for the entire U.S. Just the State of Florida with Disney and all the parks and the hotels and all of those, they need half-a-million people a year on this guest worker program. Just imagine, so for the entire U.S. you have 66,000. So, it’s not really utilized other than the very large companies. And, still, you have to advertise for U.S. jobs, you have to file things with Department of Labor. If you are the average, let’s say, landscaping company, small construction company, you do have a seasonal need, for example. Good luck finding these workers and getting them sponsored because it’s almost literally impossible.

Karen Weinstock: [00:25:33] So, the guest worker program is something that has been pushed for years, politically, and it hasn’t happened. And if political forces at this juncture can actually push for it, it’s going to be a great, great way to bring, legally, people from Mexico, Latin America, other countries where a lot of people are happy for any job, including jobs that Americans don’t want to do, agriculture and a lot of construction jobs, and hotel cleaning, and things like that, that are really necessary. And we really don’t have the U.S. workers to do them because they don’t want to do them.

Mike Blake: [00:26:22] So, if I’m a company or I work for a company that’s considering sponsoring somebody for either a work permit or a residency permit, how long, approximately, does the process for each one take? You know, assuming a fairly clean fact pattern. You’re not having to work through, you know, getting somebody’s birth certificate from South Sudan or something like that. What kind of timeframe are we looking at?

Karen Weinstock: [00:26:51] So, basically, the temporary visa really depends on the cap, because with the H-1B visa, you have to figure out when to apply for the cap. So, usually the application period is between January and March. And then, the start date is October. So, you have to remember those dates.

Karen Weinstock: [00:27:13] But with all the other work visas, it can take anywhere from three to six months to apply. And in case of urgency, then the company can pay the Immigration Service another $2,500 – it’s called the premium processing fee – and they’ll adjudicate the petition in two weeks. So, a lot of the L-visas, visas for investors, visa for essential workers, those could be expedited. And so, you can get an employee here fairly quickly outside of the cap part with the temporary visas.

Karen Weinstock: [00:27:51] For the green card sponsorship, it’s a longer process. It’s between a year, in some cases, to two years, and even multiple years, depending on the situations. Because there are backlogs for immigrant visas for Chinese and Indian nationals specifically, and those can take years.

Mike Blake: [00:28:10] And it’s interesting, you mentioned a couple of nationalities, so are there different lines for people from different parts of the world? Is there a faster line for somebody, say, from Belgium than it is for somebody from India or are they all on the same line?

Karen Weinstock: [00:28:27] So, for the most part, it’s all the same line. So, on the temporary visas, it’s everybody’s the same line. For the permanent visas, for the green cards, there is a provision in the law that basically says that you need to have diversity and one country cannot hog all of the immigrant visas. So, there’s a limit of up to seven percent of the worldwide numbers per country. And then, if there’s over numbers, then that country can get the over numbers.

Karen Weinstock: [00:28:59] But just imagine countries like India and China with over a billion people in each and a lot of highly educated professionals coming from India and China to work in the United States. So, obviously, the line for them would be much, much longer than somebody coming from Belgium, for example. And we don’t have that many immigrants from Belgium and the country itself doesn’t have that many people. So, the lines are just because of the number of applicants that we have from both of those countries and the sheer number of people from India and China.

Mike Blake: [00:29:38] Okay. So, now, we have a handle on the timeframe. Now, what about the cost? If a company is to sponsor somebody – and talk about all end costs, not just the application fee, but hiring somebody like you, and assembling any other documentation that’s required – how much can a company expect to pay to sponsor somebody for a work visa? How much can a company expect to pay to sponsor someone for a green card?

Karen Weinstock: [00:30:04] So, it really depends on the type of position and the type of work visa that is involved because there’s more work in others. But as a general rule, it’s several thousand dollars for attorney fees. And then, there’s immigration fees that also differ depending on the type of positions that you sponsor for. And so, several thousand dollars at the minimum.

Karen Weinstock: [00:30:34] For the permanent residency, it’s a much more complicated process because you have three different steps and three different applications. So, it’s probably north of $10,000 for green card sponsorship. And so, obviously, it’s a higher cost and it’s a lengthier process. But for those businesses that need those people, they’re happy to pay it, especially for highly paid individuals like I.T. workers, physicians, for example. There’s just not enough here. So, even if you pay the attorney fees for that, it’s actually less than you would pay a recruiter to find somebody in that position.

Mike Blake: [00:31:18] And I’ve noticed that several countries, specifically, make it easier for people from certain sectors to immigrate. I know, for example, my understanding in Europe, if you’re a health care practitioner, very easy to immigrate. If you’re if you’re an I.T., particularly if you’re a software engineer, very easy to immigrate. If you’re a block head account, like me, not so much. Does America also have preferential sectors like that?

Karen Weinstock: [00:31:50] Unfortunately not.

Mike Blake: [00:31:52] Okay. So, you just stay in the line.

Karen Weinstock: [00:31:54] You’re just in the line. So, the line for, let’s say, a nurse or a physician that may save lives is the same as somebody who graduated with an art history degree and going to work in a museum, for example. It’s just one line.

Mike Blake: [00:32:13] So, I think you’d agree with me, but if you don’t, please speak up and I know you will, sponsoring somebody for a work visa or a green card is not something you should take lightly. To me, it sounds like a pretty significant financial commitment by a company, particularly on the permanent residency side just because of the time involved.

Mike Blake: [00:32:38] Now, as somebody myself, as a business owner or at least a partial business owner, I think it’s reasonable to at least ask the question, how do I protect that investment? Once somebody has their work authorization, now, I’ve basically plowed the way for them to go work for somebody else, even potentially competitor. Are there ways, as the employer, that I can protect that investment? Can I, for example, make sponsorship for a visa contingent upon signing some sort of restrictive covenant that you’re going to agree to work here for three years or at least not compete, something like that? Is that legal? Is that an ethical gray line? How do you react to that?

Karen Weinstock: [00:33:27] So, generally, restrictive covenants are okay depending on the state of employment. So, for example, if you’re in California, California generally does not permit restrictive covenants. If you’re in Georgia, probably, yes. So, it just depends on the type of occupation and also on the state where you’re actually hiring the person. For example, as a lawyer, you can’t have a restrictive covenant on a lawyer because that’s my job. So, I can go work for another law firm even if I’m competing with you. So, there’s just different occupations and different requirements for them.

Karen Weinstock: [00:34:11] The good thing about temporary visa sponsorship is that, a lot of companies are still wary of sponsoring somebody for a work visa. So, even if they have a sponsor and, let’s say, they get a work visa, to go from one company to a second company, the second company will have to take over the sponsorship and apply for the work visa for them also, because the work visa is restricted to the same employer and the same job. So, once they move, they would need a new visa sponsorship. So, the new employer would be more wary to sponsor them for a work visa.

Karen Weinstock: [00:34:49] So, generally – not all the time, but generally – you would get somebody who would stay with you at least for the three years or the duration of the visa, because it’s not going to be easy for them to find another employer to take in the sponsorship.

Mike Blake: [00:35:08] So, it sounds like in terms of restrictive covenants, it has nothing to do with immigration. It simply has to do with the legal framework of the state in which the employee is being hired.

Karen Weinstock: [00:35:18] Yes, that is correct.

Mike Blake: [00:35:21] Okay. So, what are the risks? I mean, other than sort of the cash and time outlay, when I hear the term sponsor somebody for a visa, that implies some level of responsibility. Like, I’m sponsoring somebody for a membership. And that may or may not be true, which is why I want to ask the question. And that question ultimately is, as an employer, am I taking a risk? Am I assuming any implied responsibility or liability for that person’s conduct as a resident in some form of the United States, because I’ve sponsored them for that visa? Or is it limited entirely to their job relationship?

Karen Weinstock: [00:36:14] So, the sponsorship really is limited to the job relationship. And the main thing for the sponsorship is that you, as the employer, has to treat them like any other U.S. workers that you may have. So, you cannot discriminate, you cannot pay them less. You just have to give them the same working conditions and terms as you would any other U.S. worker that you have.

Karen Weinstock: [00:36:40] And then, also, you cannot furlough. So, specifically on the H-1B visa, you cannot furlough. So, if you don’t have any work for them anymore, then you would have to basically just terminate and notify the immigration agency that the employment has been terminated. And for the H-1B specifically, you are responsible to pay a return plane ticket home upon termination if the employee wishes to go home. In the majority of cases, the employee wants to stay here and they usually find another employment, another sponsor, who will employ them and take over the sponsorship in that situation.

Mike Blake: [00:37:29] So, you know, what happens to someone’s work visa status if they’re terminated from that job? Do they have to walk out of the office then head back to their country that day? Do they have a certain amount of time to try to find another job? I imagine for permanent residence, once you’re here, you’re here. But on a work visa, what happens in that case?

Karen Weinstock: [00:37:56] So, there is a 60 day grace period that the government will give you to find another employment or to leave upon termination. And it’s not in a regulatory language, but it’s really a grace period that the immigration agency will give you. So, if you find another sponsor or another employment within that time frame, then they are most likely to approve you for that transfer, that change of employer.

Mike Blake: [00:38:34] We’re talking with Karen Weinstock. And the topic is, Should I sponsor a foreign employee for a work visa? Does it make any difference if you’re attempting to sponsor somebody for a work visa, if that person is already in-country versus applying from abroad? Does the immigration process care?

Karen Weinstock: [00:38:56] It depends on the circumstance. But, usually, it’s faster to do it from the United States because you don’t have to go through the consulate or the embassy abroad to get a visa stamp to get into the country. And so, in normal days, getting a visa from abroad, it’s not a huge deal. But, now, with COVID, a lot of the consulates and embassies are closed, either completely shut down or minimal operations. And they just don’t issue visas or they only issue them in emergency cases. So, it’s much, much longer now to apply for somebody from abroad. But in normal cases, normal days outside of COVID, they’re just that one additional step to go to the embassy and apply for the visa to get into the country because the visa is your admission ticket into the country.

Mike Blake: [00:39:52] And that’s interesting to me, because, as I understand immigration rules and many European countries, not all of them, but I think many of them, if you’re going to apply for a work visa, you actually have to do it outside of the country. So, my understanding is that if you’re in-country, say, on an existing visa, it could be a tourist visa, they don’t even want you interviewing for jobs. They want you to be doing that entire thing from overseas or from across the border. It sounds like at least in that regard, the United States is a little bit more forgiving.

Karen Weinstock: [00:40:27] Yes. And, really, the majority of people who will apply for work visas are here already as students. So, they have student visas to a college or university, and they’re just completing the process from here, most of the time, not always.

Mike Blake: [00:40:46] So, in your experience, work visas, permanent residences, are they often rejected or are they most often accepted, maybe with various delays in that acceptance process? I guess if you go through that process, what is the risk of rejection?

Karen Weinstock: [00:41:08] Well, it really depends on the position and it also depends on who you hire to represent you.

Mike Blake: [00:41:15] Okay. Clear it up.

Karen Weinstock: [00:41:15] So, I mean, we have close to 100 percent approval rate on permanent residency applications.

Mike Blake: [00:41:22] Okay. I’ll let you plug that, that’s fine. So, let’s say, it doesn’t happen to you because you’re batting nearly a thousand. But for somebody else who made the mistake of hiring a different immigration attorney because I haven’t met you yet, if there’s a rejection, is there any kind of appeal process?

Karen Weinstock: [00:41:46] Yes. You have an option to appeal in certain circumstances. If you are applying in the United States with a U.S. agency, yes, you have a chance to appeal. If you are applying for a visa at a consulate or embassy, unfortunately, there is no appeal option there because of Department of State and diplomatic relations and all of that. Basically, they’re immune from most civil lawsuits and most of the appeal options.

Mike Blake: [00:42:18] Oh, that’s interesting.

Karen Weinstock: [00:42:19] Yeah. Yeah. It’s called consular nonreviewability. It’s a great little thing that they hang their hat on, especially when they make bad decisions.

Mike Blake: [00:42:31] Now, we’re running out of time, but there are a couple of questions I want to make sure that I get to. And, again. This is off script. But I imagine this happens, so I’m going to ask you. And that is, what if I, as an employer – and I’ll be very clear about this, I have not encountered this. But somebody, I’m sure, has. I don’t think our firm has ever encountered this – if I encounter somebody who is not in the country legally, maybe their student visas expired, for example, or they’re on a expired tourist visa, and they’ve decided that they would like to work for me and I would like to have them work for me. Is there a path by which we can kind of get them legal or by virtue of overstaying their welcome, so to speak, does that mean that that’s off the table?

Karen Weinstock: [00:43:26] In most situations, yes. So, in most situations, if somebody overstays their visa or their stay by more than 180 days, they are barred from changing their status again in the United States. And if they overstay by more than a year, they usually are subject to a ten year reentry bar. So, if they leave, they cannot come back for ten years. There are very significant re-entry bars and penalties for overstaying somebody’s visa.

Karen Weinstock: [00:44:02] So, for employment sponsorship, usually that’s not going to be approvable. With a small exception of people who are students and exchange visitors, they come in for a duration of status type of situation and they don’t have a set expiration date on their visa. So, with that exception, you won’t be able to help them,

Mike Blake: [00:44:32] So, I infer from what you said that if they’ve overstayed by less than 180 days, there may be something that you could do for them.

Karen Weinstock: [00:44:39] Yes. Correct.

Mike Blake: [00:44:40] Okay. So, the timing matters. So, if they’ve overstayed their visa by 30 days, there may still be an opportunity for them to, for lack of a better term, basically come clean and go legit.

Karen Weinstock: [00:44:54] Right. Right. And remember the 60 day grace period also. So, if somebody is terminated, they usually have 60 days to apply for another job. So, that’s also allowed.

Mike Blake: [00:45:05] Okay. Karen, this has been a great conversation. We’ve covered a ton of ground, probably the equivalent of $10,000 of free consulting. So, I really appreciate you sharing that with our audience. I’m sure there are questions we either haven’t covered or ones we did but didn’t go into as much depth that somebody would have liked. If that’s the case, can somebody contact you for more information? And if so, what’s the best way to do that?

Karen Weinstock: [00:45:27] Yeah. Absolutely. The best way is to email me or go to the website and get additional information. The website is visa-pros, visa like a visa card-dash-pros like professionals, .com. And we’ll be happy to hear from people feedback or any questions. We have a great team that’s eager to help other people.

Mike Blake: [00:45:56] That’s going to wrap it up for today’s program. I’d like to thank Karen Weinstock and her 100 percent batting average so much for sharing her expertise with us today.

Mike Blake: [00:46:04] We’ll be exploring a new topic each week. So, please tune in so that when you’re faced with your next business decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us that we can help them. If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, citizenship, Decision Vision, employment based immigration, green cards, immigration, Karen Weinstock, Mike Blake, Visa Pros, Weinstock Immigration Lawyers, work visas

Mark Hayes, Mark Hayes Consulting LLC

August 10, 2021 by John Ray

North Fulton Business Radio
North Fulton Business Radio
Mark Hayes, Mark Hayes Consulting LLC
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Mark Hayes Consulting

Mark Hayes, Mark Hayes Consulting LLC (North Fulton Business Radio, Episode 375)

Mark Hayes is well known and loved in Atlanta as a former longstanding television anchor. For the last decade, he has used his extensive media experience to empower brands through their media presence and the power of their story. He joined host John Ray to discuss the power of storytelling, why video remains such a compelling marketing medium for business, the rewards of coaching, sources of continued learning for him, and much more. North Fulton Business Radio is broadcast from the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta.

Mark Hayes Consulting LLC

For over a decade, Mark Hayes has helped businesses create their brand presence and achieve their goals.Mark Hayes Consulting

His process is designed to empower your brand and outfit your business with the marketing tools needed to succeed. Mark utilizes nearly three decades of television news experience to help you tell your brand story.

Company website | Facebook | Instagram | LinkedIn

Mark Hayes, President/CEO, Mark Hayes Consulting LLC

Mark Hayes Consulting
Mark Hayes, President/CEO, Mark Hayes Consulting

Thirty years of television news experience, TedX Speaker, & Certified Jack Canfield Trainer for over a decade, Mark has helped businesses create their brand presence and achieve their goals. His process is designed to empower your brand and outfit your business with the marketing tools needed to succeed. Mark utilizes nearly three decades of television news experience to help you tell your Brand story.

Mark Hayes has spent nearly three decades bringing news viewers in major cities across the country their news and information of the day. Some of his stops include Dallas, Denver, Detroit and Baltimore. However, his proudest accomplishments came during his tenure in the great city of Atlanta, GA. For more than a decade, Mark was a staple of early morning television on Good Day Atlanta. He believes his most noteworthy achievement, was the nearly 20 hours he spent on air during the Fulton County Courthouse shootings and the subsequent capture of Brian.

After 2 Emmy nominations and highly coveted National recognition for spot news coverage from the National Press Photographers Association, Mark is now currently the President and CEO of his own media training and strategy company. Mark Hayes Consulting, LLC was founded in 2010. The goal is to help everyone from CEO’s to small business owners make the most of their opportunity for media exposure.

He has been a passionate supporter of Boys and Girls Clubs in every city he has been a part of. Mark has also been a fervent supporter of Drug Abuse, recovery & prevention efforts with different organizations. He was one of the earliest supporters and assisted Simply Grace House in Dallas, TX as they began their efforts to help recovering addicts of drug and alcohol addiction.

Mark and his wife Latonya have been together since they met in 1988 at Howard University. They have been married for 25 years and have two children, Malcolm and Kenny. Mark is also a member of the Omega Psi Phi Fraternity, Inc. and loves to travel the world over. His favorite destination to date has been the most amazing week his family spent on the beautiful island of Kauai, which they described as “paradise on earth.”

Contact Mark today so he can support your growth, maximize your opportunities for media exposure and put you on a solid track to success and profit!

LinkedIn

Questions and Topics in This Interview

  • Covid Convenience — And Zoom
  • Why video is so powerful for your brand
  • Using video to tell your authentic story
  • Creating your brand story
  • Authenticity and Your Brand

North Fulton Business Radio is hosted by John Ray, and broadcast and produced from the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta. You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

RenasantBank

 

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

Tagged With: Branding, corporate marketing videos, John Ray, Mark Hayes, Mark Hayes Consulting, marketing videos, media exposure, North Fulton Business Radio, using video in marketing, video, video marketing

Kate LaBrosse, LaBrosse Consulting and Brand Builders

August 10, 2021 by John Ray

Kate LaBrosse
Minneapolis St. Paul Business Radio
Kate LaBrosse, LaBrosse Consulting and Brand Builders
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Kate LaBrosse

Kate LaBrosse, LaBrosse Consulting and Brand Builders (Minneapolis-St. Paul Business Radio, Episode 16)

Kate LaBrosse with LaBrosse Consulting and Brand Builders is passionate about teaching natural, mission-driven brands how to build a business centered on their “why.” She does so from the wealth of her business experience and her own personal journey to holistic health.  Kate and host John Ray discussed her client work, success stories, her new initiative called Brand Builders, and her book, This is Me, Bipolar-Free: Heal Your Mental Illness & Create Your Authentic Life. Minneapolis-St. Paul Business Radio is produced virtually by the Minneapolis St. Paul studio of Business RadioX®.

LaBrosse Consulting

Kate’s team is made up of industry veterans with decades of combined experience; holding key positions as national retail buyers, broker & distributor sales execs and brand & sales managers.

They work with:Kate LaBrosse

-Emerging brands in their exclusive Brand Builders program and retail incubation market – helping clients hack the system with a turnkey solution that gets them into retail stores more quickly with more support and less exposure to risk.

-With legacy brands or industry pros on custom, project-based work, including transformational executive coaching, new item innovation, social media build-out, team development, brand & sales strategy, and broker management.

-Or with retailers & industry associations on their goals around natural; including advising on POGs, category assortment, industry trends and marketing efforts.

Kate is committed to furthering the reach of the Natural Products Industry and educating people on the importance of natural foods & natural products as the foundation for true and lasting healing. This is why she started Kate LaBrosse Consulting and it’s the North Star, the compass, that drives her and her team. They view their work with their clients as sacred service because they know that helping just one brand have greater success, reach more people and execute on their mission is one step closer to a natural dominated retail market.

In addition to consulting services, Kate is an advocate for holistic healing and speaks and writes on alternatives to traditional treatments.

Kate LaBrosse website | Brand Builders |  Facebook | Instagram

Kate LaBrosse, CEO and Founder, LaBrosse Consulting/Brand Builders

Kate LaBrosse
Kate LaBrosse, Founder and CEO, LaBrosse Consulting and Brand Builders

Kate LaBrosse is a Natural Products Industry expert having worked as a National Category Manager for National Coop Grocers, a Director of Sales for a CPG brand and as a Brand Manager & National Director of Sales for the largest natural broker in the US, Presence Marketing. In 2019, she founded Kate LaBrosse Coaching & Consulting, the only holistic firm for natural, mission-driven brands.

In 2020, she started the Brand Builders™ program and retail incubation market to provide hands-on strategy & execution support to founders and to build brand awareness for her clients. She is dedicated to furthering the reach of the natural industry across all sales channels because she believes in a world that doesn’t sell poison marketed as food.

In addition to her consulting work, she is an executive coach, motivational speaker and Amazon bestselling author of This is Me, Bipolar-Free: Heal Your Mental Illness & Create Your Authentic Life. She’s passionate about teaching others how to choose and create a life they love and holistic healing and believes that natural products and real food are the foundation to correcting a flawed system focused on illness management and aims to empower individuals to take responsibility for their own health.

LinkedIn

Questions and Topics in this Interview

  • Filling our Q4 2021 Brand Builders Market Cohort
  • What it takes to build a successful CPG business
  • Why there is no one else who does what you do and how you’re different
  • What is holistic, transformative coaching & consulting?
  • Why your WHY is so important and how to use it to grow your business
  • Successes of your clients
  • Why MN is the next hub for natural CPG

Minneapolis-St. Paul Business Radio is hosted by John Ray and produced virtually from the Minneapolis St. Paul studio of Business RadioX® .  You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

Tagged With: Brand Builders, consumer packaged goods, holistic products, Kate LaBrosse, LaBrosse Consulting, natural products, wellness brands

Rachel Donnelly, Black Dress Consultants

August 10, 2021 by John Ray

Black Dress Consultants
North Fulton Business Radio
Rachel Donnelly, Black Dress Consultants
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Black Dress Consultants

Rachel Donnelly, Black Dress Consultants (North Fulton Business Radio, Episode 374)

Rachel Donnelly, founder of Black Dress Consultants, joined host John Ray to share the work her consulting firm does in end-of-life concierge and after-loss services.  Rachel saw a need for support as families and individuals face end-of-life and after-loss decisions at a time they are more focused on family and grieving. Her consultancy fills the gap, offering practical services and assistance navigating the after-loss maze of tasks. North Fulton Business Radio is broadcast from the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta.

Black Dress Consultants

Black Dress Consultants is an end-of-life concierge and consulting firm that helps families strategically manage the administrative and logistical tasks of legacy planning and organization, after loss and everything in between while also integrating your family values and traditions. They provide personalized solutions for life’s transitions giving you and your family the space to live worry-free and grieve peacefully.Black Dress Consultants

They are here to help guide you through decisions, tasks, and endless to-dos so that you have the space to grieve. Their goal is to provide solutions for life’s transitions while also integrating what’s important to you and your family. Custom services available.

Disclaimer: They are not attorneys, financial advisors, or CPAs. However, they do partner with these resources, when needed, to ensure that every task that Black Dress completes for you is under their advice. If you do not have an estate attorney or financial advisor and your estate requires or would benefit from these resources, they are happy to connect you with their network of seasoned professionals.

Company website | Facebook | Instagram

Rachel Donnelly, Founder and CEO, Black Dress Consultants

Black Dress Consultants
Rachel Donnelly, Founder and CEO, Black Dress Consultants

After many experiences with loss, including the death of her parents at a young age, Rachel founded Black Dress Consultants, a consulting firm that helps individuals and families manage the unavoidable tasks and logistics of after loss and end-of-life.

Rachel is also a fundraiser extraordinaire, having worked in higher education fundraising for Agnes Scott College, Emory University and Georgia Institute of Technology. Rachel serves on the Board of Directors on Love Not Lost, an Atlanta non-profit that provides grief tools and free photography sessions for families facing terminal diagnoses.

Rachel lives in Decatur with her husband Zack with their two kids, Finn and Roane.

LinkedIn

Questions and Topics in This Interview

  • Tell us a little bit about your background. How did your earlier career path relate to or inspire your current work in the space around helping families wrap up after the loss of a loved one?
  • What was the motivation behind the creation of Black Dress Consultants?
  • Can you tell us about your services?
  • You mentioned that there are several blind spots in end-of-life planning. Can you tell us about a few?
  • In your experience working with families, and considering all the services you offer, what do they need the most help navigating?
  • Tell us about how your clients find you and what your role is in the complex project of settling an estate and wrapping up the details. W
  • How does what you do differentiate you from or overlap with the legal and financial aspects of settling an estate?
  • What’s one of the most unique or memorable experiences you’ve had working with families after a loss?

North Fulton Business Radio is hosted by John Ray, and broadcast and produced from the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta. You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

RenasantBank

 

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

Tagged With: after-loss support, black dress consultants, end-of-life care, executor services, John Ray, North Fulton Business Radio, rachel donnelly

2021 GNFCC Nonprofit Award Winners: Holly York, North Fulton Community Charities and Amy O’Dell, Jacob’s Ladder

August 9, 2021 by John Ray

Jacob's Ladder
North Fulton Studio
2021 GNFCC Nonprofit Award Winners: Holly York, North Fulton Community Charities and Amy O’Dell, Jacob's Ladder
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Jacob's Ladder

2021 GNFCC Nonprofit Award Winners: Holly York, North Fulton Community Charities and Amy O’Dell, Jacob’s Ladder (GNFCC 400 Insider, Episode 65)

The two winners of the 2021 GNFCC Nonprofit of the Year were welcomed to this edition of the GNFCC 400 Insider. Holly York, Executive Director with North Fulton Community Charities, and Amy O’Dell, Founder of Jacob’s Ladder Neurodevelopment School and Therapy Center, joined host Tori Kerlin, Communications Coordinator at GNFCC, to discuss the tremendous work their respective organizations do. The GNFCC 400 Insider is presented by the Greater North Fulton Chamber of Commerce and produced by the North Fulton studio of Business RadioX®.

North Fulton Community Charities, Holly York, Executive Director

Holly York, Executive Director, North Fulton Community Charities

North Fulton Community Charities assists residents living in North Fulton serving the cities of Alpharetta, Johns Creek, Milton, Mountain Park and Roswell with short-term emergency needs. NFCC collaborates with many local providers to provide the resources necessary to help individuals and families remain stable in our community. NFCC provides services in English and Spanish.

Since 1983, North Fulton Community Charities (NFCC) has addressed homelessness and hunger in North Fulton. Each year the agency serves close to 10,000 individuals with emergency need in the cities of Alpharetta, Johns Creek, Milton, Mountain Park and Roswell.

Qualified residents can receive:

  1. Emergency financial assistance for housing, utilities, medical care, transportation and other necessities.
  2. Food and staples
  3. Clothing using vouchers to purchase clothing from the NFCC Thrift Shop.
  4. Education for workforce development and life skills workshops to help move toward financial stability and self-sufficiency.

Website | Holly York Linkedin

Jacob’s Ladder Center, Amy O’Dell, Founder and Executive Director

Jacob's Ladder
Amy O’Dell, Founder and Executive Director, Jacob’s Ladder Center

Jacob’s Ladder is a non-profit SAIS-SACS accredited private school serving pre-k through 12th-grade students, as well as a therapy center serving infant through young adult students.

Our campuses throughout Metro Atlanta offer full-time and part-time enrollment options in a variety of learning environments, with levels of support ranging from a 1:1 to a 6:1 student-teacher ratio.

We also offer various full-time and part-time remote enrollment options, facilitated either in-home or virtually, serving students and their families locally, nationally, and internationally.

In addition to serving students and their families directly, Jacob’s Ladder is committed to encouraging and empowering the global special needs community through research, training, certification, and licensure.

Every day, our students overcome challenges and reach goals once thought impossible:
  • those who have struggled with social cues begin establishing eye contact and engaging with the world around them in a meaningful way,

  • those who have struggled to grasp language begin communicating not only their wants and needs but also their original thoughts and feelings in ways that ensure that they know they are heard and understood by those around them,

  • those who have struggled relationally due to anxiety or frustration begin managing their emotions and thriving in a group setting, 

  • those who have struggled with intrinsic motivation begin to discern their unique passion and purpose, and to embrace that each day is a beautiful opportunity to work towards that which they personally care about, and

  • those who have struggled to learn in previous educational settings take steps towards unprecedented academic achievement.

Our Interpersonal Whole-Brain Model of Care has transformed the lives of thousands of families and counting because it is grounded in science and guided by love.

Ms. Amy O’Dell is the founder of Jacob’s Ladder, designated as a 501(3) in 1999. The model, now trademarked and recognized nationally and internationally, was developed in response to critical developmental challenges faced by her own son, Jacob.

Ms. O’Dell holds a degree in Activity Therapy and a Master’s Degree in Counseling from Clemson University. She is a licensed Professional Counselor with extensive training on the Neurodevelopmental process and is certified as a Neurodevelopmental consultant. She has worked in a wide variety of clinical settings, including Shepherd Spinal Center in Atlanta, and later at Woodridge Psychiatric Hospital in Clayton, Georgia, where she held the positions of Director of Activity Therapy and the Director of Adolescent Psychiatric Services. She is a recognized national leader in the field of autism and neurodevelopmental disorders, and a sought-after speaker at national and international forums.

Governor Nathan Deal appointed Ms. O’Dell to serve on the Board of Directors of Georgia Vocational Rehabilitation Agency as the expert in the field of Autism where she served a 3-year term. Ms. O’Dell currently serves on the Zac Brown Camp Southern Ground Board of Advisors for the Autism focus and the Board of Directors for HINRI.

Website  | Amy O’Dell LinkedIn​

About GNFCC and “The GNFCC 400 Insider”

Kali Boatright
Kali Boatright, President and CEO of GNFCC

“The GNFCC 400 Insider” is presented by the Greater North Fulton Chamber of Commerce (GNFCC) and is hosted by Kali Boatright, President and CEO of GNFCC. The Greater North Fulton Chamber of Commerce is a private, non-profit, member-driven organization comprised of over 1400 business enterprises, civic organizations, educational institutions and individuals.  Their service area includes Alpharetta, Johns Creek, Milton, Mountain Park, Roswell and Sandy Springs. GNFCC is the leading voice on economic development, business growth and quality of life issues in North Fulton County.

The GNFCC promotes the interests of our members by assuming a leadership role in making North Fulton an excellent place to work, live, play and stay. They provide one voice for all local businesses to influence decision makers, recommend legislation, and protect the valuable resources that make North Fulton a popular place to live.

For more information on GNFCC and its North Fulton County service area, follow this link or call (770) 993-8806. For more information on other GNFCC events such as this North Fulton Mayors Appreciation Lunch, follow this link.

For the complete show archive of “The GNFCC 400 Insider,” go to GNFCC400Insider.com. “The GNFCC 400 Insider” is produced by John Ray and the North Fulton studio of Business RadioX®.

Tagged With: Amy O'Dell, GFNCC 2021 Nonprofit Awards, GNFCC, GNFCC 400 Insider, Greater North Fulton Chamber of Commerce, Holly York, Jacob's Ladder, Jacob's Ladder Center, Nonprofit, North Fulton Community Charities

Why the Startup Ecosystem in the Twin Cities has Blossomed, with Diane Rucker, University Enterprise Laboratories

August 9, 2021 by John Ray

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North Fulton Studio
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Why the Startup Ecosystem in the Twin Cities has Blossomed, with Diane Rucker, University Enterprise Laboratories

Diane Rucker: [00:00:00] Now, the contrast between a really strong ecosystem and one that’s really growing or maybe hasn’t taken off yet is not the individual elements, but it’s the connections across the ecosystem. Does somebody in venture capital know a number of different startups? Have startups been through this before? Do they have connections to corporations who could help them out? Is government actively helping out? And are they connecting them with capital?

Diane Rucker: [00:00:30] And I think if we look back about ten years ago in the Twin Cities, what we had is individually strong elements to that ecosystem. A strong but maybe more inwardly focused university. Corporations that were also strong and growing but not necessarily focused as much on the community. Entrepreneurs in many cases who would go outside of the Twin Cities to start a business not believing that the support was there inside.

Diane Rucker: [00:01:00] What’s happened over, really, about the last six to seven years has been an extensive crossover across that ecosystem and a building up of connections. We’ve brought a number of accelerator programs to Minnesota. TechStars is probably one of the most well-known generator, it focuses on the Midwest and on small concierge type work.

Diane Rucker: [00:01:25] From the TechStars and generator grouping, they’ve added some additional levels of accelerators. So, a generator, for example, includes the G-Alpha, which is, “I have an idea, but nothing more.” The T-Beta, “I’ve got a business idea, but I don’t know how to pitch it yet.” And the Generator Flagship Program, which is, “I’m ready to launch. I’m looking for investors and I’ve got a product. I need the tools to be able to scale my business.”

Diane Rucker: [00:01:55] So, having that across the ecosystem means that the path from idea, to improving it, to a launch phase, is a lot simpler and a lot faster. And the support is there in a way that it wasn’t six to seven years ago. Minnesota, in particular the Twin Cities in Greater Minnesota, has a strength of clusters where people work in retail, and health care, insurance, in logistics, just even to the start. And people move between those. Medical devices is another very strong cluster. What happens when you move between those clusters is you get a lot of ideas moving from retail, to medical device, to health care, to insurance, and the overall region becomes stronger.

Diane Rucker, Executive Director, University Enterprise Labs (UEL)

Diane Rucker is the Executive Director of University Enterprise Laboratories (UEL), a business incubator for early-stage ventures in biotechnology, medical health, and life sciences. Diane is an active part of the growing Twin Cities entrepreneurial ecosystem, serving as a mentor for gener8tor, CleanTech Open, Technovation MN, and Twin Cities Startup Week.

She has an Executive MBA from the MIT Sloan School of Management, and served as a mentor and judge for the MIT 100K competition. She also has an M.S. in Materials Science and Engineering from the University of Michigan, and a B.S. in Materials Science and Engineering from the Massachusetts Institute of Technology. Her recent experience includes a collaboration with MIT’s Trust Center for Entrepreneurship and broad-based business and ecosystem experience around the world, including Europe, Asia, and the Middle East. She also served as the VP of Client Services for Carrot Health, a startup in healthcare analytics, and held leadership roles with Seagate and General Motors.

In her current role, Diane works closely with startup and growth companies, helping them to build and scale a business. Diane serves on several boards, including Towerside Innovation District, the Ramsey County Workforce Innovation Board, the gBETA Advisory Board for gener8tor, and the MIT Sloan Alumni Board.

She and her husband, Derek, live in Apple Valley, Minnesota, with their three (awesome) daughters.

LinkedIn

Listen to her full Minneapolis-St. Paul Business Radio interview here. 


The “One Minute Interview” series is produced by John Ray and in the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link.

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

 

Tagged With: University Enterprise Laboratories

Dennis Jackson, Worx Solutions

August 6, 2021 by John Ray

Worx Solutions
Nashville Business Radio
Dennis Jackson, Worx Solutions
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Worx Solutions

Dennis Jackson, Worx Solutions (Nashville Business Radio, Episode 27)

Working out of spreadsheets to bridge the gap in your internal systems? Dennis Jackson, owner of Worx Solutions, can help. He joined host John Ray to discuss how his work bridges data streams, increases efficiency, improves productivity, and delivers significantly better business results. He also shared some compelling success stories from the small and medium-sized businesses he’s worked with. Nashville Business Radio is produced virtually from the Nashville studio of Business RadioX®.

Worx Solutions

Worx Solutions bridges data streams.

They make workflows easy by bridging the operational gap so that you can wow your customers, communicate better, and drive productivity.  Dennis and his team collaborate with small to mid-size businesses that have a desire to drive efficiency within their organization.

Company website | LinkedIn

Dennis Jackson, Owner, Worx Solutions

Dennis Jackson, Owner, Worx Solutions

Dennis is passionate about helping business leaders gain efficiencies, improve decision-making with better insight and analytics, mitigate risk, and make their businesses and workforces healthier and more productive, and improve your bottom line. This means:

– Stronger data analysis for better decision making

-Improved decision making for better business results

– Efficiency and better business performance

– By transforming your data from spreadsheets to WorX Solutions you will experience significantly better business results.

Dennis has over 20 years of experience in the consumer products, customer service and healthcare industries. He specializes in finding new, better ways to solve problems, and his approach has repeatedly resulted in achieving results at scale, ranging from developing a 255,000 square foot corporate HQ with a budget of $100 million, leading supply chain management initiatives to consolidate purchasing raw materials, and streamlining product SKUs from 275 to 25.

Dennis holds an MBA from Union University.

LinkedIn

Questions and Topics in This Interview

  • Process Flow
  • Operational gaps
  • Reporting
  • Success Story

Nashville Business Radio is hosted by John Ray and produced virtually from the Nashville studio of Business RadioX®.  You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

Tagged With: business processes, data analytics, Dennis Jackson, Nashville Business Radio, Process Workflow, Worx Solutions

Decision Vision Episode 128: Should I Take More Risk? – An Interview with Amanda Setili, Setili & Associates, LLC

August 6, 2021 by John Ray

Amanda Setili
Decision Vision
Decision Vision Episode 128: Should I Take More Risk? - An Interview with Amanda Setili, Setili & Associates, LLC
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Amanda Setili

Decision Vision Episode 128:  Should I Take More Risk? – An Interview with Amanda Setili, Setili & Associates, LLC

Do you think you understand risk? Whether you do or not, your understanding of risk and how it applies to your business is sure to deepen if you listen to Amanda Setili. Amanda joined host Mike Blake to consider what risk is, if and how we should take risks professionally and personally, the consequences of taking risks, and many other questions. In her words, “To be able to deal with uncertainty effectively and manage risks effectively is probably the number one thing that companies do to succeed in a fast-changing world.” Decision Vision is presented by Brady Ware & Company.

Setili & Associates, LLC

Setili & Associates provides experienced strategic and management consulting to Fortune 500 and growing companies, to generate profits, improve performance, and drive growth.

Clients call Setili when they would like to:

  • Develop and launch innovative new products, services, and platforms
  • Increase margins, and identify and expand profitable segments
  • Gain top service rankings and create differentiated customer experiences that drive loyalty and word of mouth
  • Enter new channels and make existing channels more productive
  • Develop new business models and expand into new markets
  • Achieve greater organizational performance and commitment

Company website | LinkedIn | Facebook | Twitter

Amanda Setili, President, Setili & Associates, LLC

Amanda Setili
Amanda Setili, President, Setili & Associates, LLC

Amanda Setili is president of strategy consulting firm Setili & Associates. An internationally acclaimed expert on strategic agility®, she gives her clients—including Cardinal Health, Coca-Cola, Delta Air Lines, The Home Depot, UPS and Walmart—unbiased and laser-clear advice on how to respond quickly and intelligently to a changing marketplace.

Setili has advised organizations in industries as diverse as consumer and industrial products, financial services, technology, non-profit, and retail. Her work has taken her throughout North America, Europe and Asia.

Before starting Setili & Associates, she served as director of marketing for Global Food Exchange, consulted for McKinsey & Company (where she planted seeds that became the firm’s Kuala Lumpur office), served as chief operating officer of Malaysia’s leading Internet services company, and developed products and optimized manufacturing operations for Kimberly-Clark.

Setili is author of Fearless Growth: The New Rules to Stay Competitive, Foster Innovation, and Dominate Your Markets(Career Press, 2017) and The Agility Advantage, How to Identify and Act On Opportunities in a Fast-Changing World (Jossey-Bass, 2014). Setili served as an adjunct professor at Emory’s Goizueta Business School, is a member of the Marshall Goldsmith 100 coaches program and the Million Dollar Consulting Hall of Fame.

She earned her degree in chemical engineering from Vanderbilt, and her MBA, with distinction, from the Harvard Business School. She is past president and board chair of the Harvard Business School Club of Atlanta.

LinkedIn

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the host of the Decision Vision podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms, and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

LinkedIn | Facebook | Twitter | Instagram

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth-minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

Decision Vision is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision-maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the Decision Vision podcast.

Past episodes of Decision Vision can be found at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decisions. Brought to you by Brady Ware & Company. Brady Ware is a regional full service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:21] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:41] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you’d like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:19] So, today’s topic is a topic I’m very excited about, because it’s a topic that I, frankly, do a lot of thinking about and is central to what I purport to do for a living. And that topic is, Should I take more risk? And the reason I’m so intrigued by this topic is because, frankly, I think risk gets a bad rap. I think it gets a bad rap because it’s misunderstood. And I think it gets a bad rap, frankly, because it’s not very sexy. And it gets a bad rap because it’s not very visible, it’s not very high profile.

Mike Blake: [00:02:01] But when you think about risk in business and, I think, in life, risk is an overarching and underlying variable that impacts or should impact every decision that we make. And risk is often viewed negatively. We think of risk as something that is always to be avoided. Conversely, we admire the people who are risk takers.

Mike Blake: [00:02:35] As somebody who has traveled abroad quite a bit, I’m frequently asked in my travels, “What is it that makes Americans different from everybody else?” And I think there’s really one thing that makes Americans different from everybody else, and that is that we treat the entrepreneur as a folk hero. There’s no other society that I’ve been to, that I’ve studied, that does it quite the same way that we do. And I think we treat the entrepreneur as a folk hero because we admire their willingness to take risk. And by and large, in our economy, we are okay with rewarding people handsomely who take risks and benefit from that risk paying off, basically.

Mike Blake: [00:02:35] But at the same time, risk is one of these things that I think is highly underappreciated. And on that same token, I’m asked pretty frequently, actually, you know, “How do I improve the value of my business in the short term?” Thinking of selling or I want to make it a better asset to leave to my children or to somebody else, how do I make it more valuable? And the answer that I think most people expect are, “Well, make your company more profitable or find a way to make it grow.” And those things are fine as far as they go, except those things are a lot easier said than done. It’s not that easy to grow a company. It’s not that easy to make a company more profitable. Those are hard things to do.

Mike Blake: [00:04:17] But the thing you almost never hear somebody saying, is my stock answer, is, “Well, figure out a way to de-risk the business. Take what you’ve got and make it more reliable, more resilient, more predictable.” And that in and of itself is going to make the company more valuable. And I would argue and I think I could show you the math to do this for an audio, so I’m not going to inflict that upon you. But I can very easily illustrate with math that if you can decrease the risk by, say, two percent, you will improve the value of your company more than if you increase growth or profitability by two percent. But, again, it’s not sexy.

Mike Blake: [00:05:02] The chief risk officer never appears on Bloomberg television, has never profiled in The Wall Street Journal, at least very rarely. In spite of the fact that we are currently involved in emerging from – I call this – a trans-pandemic period, I think that’s probably still out, we’re still in this this pandemic period where our nature, our very relationship with risk and the nature of risk in our society and our lives, is just different and I think irreversibly so.

Mike Blake: [00:05:33] And so, when our current guest comes on – and we had a conversation earlier and she wanted to talk about risk, I just jumped at the opportunity because I think it’s so important and it’s really not given its due. And so, it’s my pleasure to introduce Amanda Setili, who is president of strategy consulting firm Setili and Associates. Setili and Associates provides experience, strategic, and management consulting to Fortune 500 and growing companies that generate profits, improve performance, and drive growth.

Mike Blake: [00:06:05] An internationally acclaimed expert on strategic agility, she gives her clients, including Cardinal Health, Coca-Cola, Delta Airlines, the Home Depot, UPS, and Walmart- you might have heard of them – unbiassed and laser clear advice on how to respond quickly and intelligently to a changing marketplace. Amanda is also author of Fearless Growth: The New Rules to Stay Competitive, Foster Innovation, and Dominate Share Markets; and the Agility Advantage: How to Identify Opportunities and Act on Opportunities in a Fast-Changing World.

Mike Blake: [00:06:36] Amanda served as an adjunct professor at Emory’s Goizueta Business School, is a member of the Marshall Goldsmith 100 Coaches Program and the Million Dollar Consulting Hall of Fame. Amanda earned her degree in chemical engineering from Vanderbilt and her MBA with distinction from the Harvard Business School. She is past president and board chair of the Harvard Business School Club of Atlanta. Amanda Setili, welcome to the program.

Amanda Setili: [00:07:00] Thanks so much, Mike. It’s a pleasure to be here.

Mike Blake: [00:07:04] So, Amanda, I want to lead off because, you know, we haven’t known each other that long. But the thing that struck me from our first conversation is, you and I are kindred spirits, I think, in one regard in that we really find risk fascinating and conversations about risk to be very impactful. And I’d love to hear your take. You’ve heard mine in my opening monologue. But I’d love to hear your take on why risk interests you. Why is it important? Why do people need to understand it better?

Amanda Setili: [00:07:37] Two main reasons. One is, I work mainly with big companies. And big companies do what they do very well and very consistently. So, they’ve been historically good at managing risk, but they’re really bad at taking a risk of entering into a new market or learning something new, building new capabilities, dealing with the changes that are coming at them so fast in the market today. Just in terms of the way customer behaviors are changing fast, the way competition is changing fast, the way competition can come out of nowhere, which they’re used to be able to do as easily.

Amanda Setili: [00:08:14] And the unwillingness to take risks, whether either because of trying to make sure to make quarterly earnings promises that they’ve made, or fear of having to lay people off, or fear of not being able to build new capabilities fast enough. That fear of the risks hold so many companies back from being successful. And you can see tragedies of large companies who just lose their way and don’t adapt quickly enough to the market change.

Mike Blake: [00:08:47] Yeah. And that’s really interesting, we both can probably name numerous examples, but the one that comes to mind – of which I only learned fairly recently, but it’s such a shocking story – many people don’t realize that Kodak had invented compact flash storage many years before it actually became widely available in the marketplace. But they were so afraid to risk disrupting their own industry, they wound up eventually being effectively consumed by the digital photography market, that they had every opportunity to dominate by virtue of patent protection. And that, to me, is an object lesson of how a company killed itself by not taking enough risk.

Amanda Setili: [00:09:34] Absolutely. It’s like the perfect story to illustrate that exact point, because they did invent digital photography, but they were so intent on protecting their film category that they just couldn’t step into that territory.

Amanda Setili: [00:09:49] So, I said I was going to tell you two things and I didn’t tell you the second one. The second reason, I think is important and interesting, is, because most companies don’t do a good job at managing risk. They do a good job at seeing the risk, but they don’t do a good job at managing the risk. They flee from risk without just saying, “There’s steps we can take to manage this.”

Amanda Setili: [00:10:11] So, one of the stories that I think is illustrative of this is, back when Elon Musk first started Tesla, he said, “There’s only a 50/50 chance that I’ll be successful.” But what he did was he said, “So, why would I not be successful? Maybe people will have range anxiety, so I’ll build a car that instead of only can go 80 miles on a battery, can go 350. I’ll build these superchargers going up every major highway corridor.” He said, “Why else would they be worried? They will be worried about safety, so I’ll win the top safety ratings. Why else would they be worried? They’d be worried about resale value.”

Amanda Setili: [00:10:48] So, he even, for a time, promised to buy their Tesla back for a price pegged to the price of a certain Mercedes model. So, he just said, “Okay. It’s risky. There’s only a 50 percent chance of success. Figure out what the risks are and address each of them very explicitly.” And that’s why he’s been quite successful.

Mike Blake: [00:11:10] I love that Elon Musk story. I hadn’t heard it before. But I think it’s brilliant and a couple of business geeks like us, I think, can appreciate sort of the subtle genius and that buy back part. Because they’re basically then selling a car with a built-in protective put. I mean, it’s just classic hedging.

Mike Blake: [00:11:32] So, I want to come back to this, but before I go too far off the deep end with you, even though it’s really tempting to do so, I want to make sure that everybody understands, our listeners understand, when we say risk, what exactly does that mean? So, if I could maybe, please, ask you to give your definition of risk.

Amanda Setili: [00:11:52] My definition is just that you have uncertainty about the outcome. That’s all it is. There’s many different sources of risk. But the bottom line is you’re not sure it’s going to work.

Mike Blake: [00:12:03] Now, I love that definition. And for what it’s worth coming from me, I mean, to me, that definition shows why you’re an expert on risk. Because I think when most people hear the word risk, they automatically think of the definition of risk being that risk is the possibility that something will go wrong. But you said it differently and I think correctly, which is, it’s simply the risk that something will go differently than how you anticipated. And that’s a massive distinction, isn’t it?

Amanda Setili: [00:12:37] Right. Because there’s always an upside too. So, there are things that are uncertainty about the outcome that are actually on the positive side. And if you don’t recognize what might happen better than what you expect, you’re never prepared to take advantage of your good luck.

Mike Blake: [00:12:57] So, you said something in the opening question, which, again, I just think is so smart that I want to make sure that we hit on, and that is that, you described many companies as failing to manage risk because instead they avoid risk. And there’s a subtle but important distinction there I’d love you to go into, if you would. And that is, why is avoiding risk not the same as managing risk?

Amanda Setili: [00:13:29] Well, they’re completely different. So, avoiding risk is, “Oh, I don’t know what’s going to happen. I’m afraid. I better not do anything.” Managing risk is, “Oh, I don’t know what’s going to happen. What could affect what might happen?” List those things out and then say, “What can we do to manage each of these? What can we do to make it more likely that the good thing is going to happen and less likely that the bad thing is going to happen?” And then, be very explicit about assigning each of those risk to somebody who can make sure that that risk is managed well.

Amanda Setili: [00:14:07] So, for example, you’re launching a new product. What could go wrong? The market fails to understand it. Our call center gets overwhelmed with calls. The sales force is incapable of selling it or is hesitant to sell it because it cannibalizes another product. Just list these things out and then say, “So, what are we going to do about each of them? And who’s in charge of managing that risk? If we’re worried about the call center being overwhelmed, can we get some backup capacity lined up? If we’re worried about the sales people being unwilling to sell it because it cannibalizes something else, give them some kind of override on their commission?”

Amanda Setili: [00:14:48] All of these things could be managed. And at the same time, when you talked about, you know, uncertainty about the outcome can also be on the upside, what if this goes even better than we expect? Do we have our suppliers organized to be able to sell us more supply than what we thought? Do we have the ability to expand geographically faster than what we were anticipating? Do we have the ability to make the biggest PR buzz out of anybody that likes our product that we didn’t expect to like it? You know, there’s all kinds of things that can go right. And if you plan for them, you get to jump on it and take advantage of them.

Mike Blake: [00:15:27] So, you have a great pedigree working with brand name companies. And, clearly, the subject comes up when you’re working with them. Why, in your mind, do large companies struggle so much with risk management? Is it something that’s cultural? Is it a misalignment of economic incentives or some sort of pathology? What, in your mind, kind of drives that?

Amanda Setili: [00:15:52] Two things. One is the incentives usually incent you to do the same thing that you did last year plus five or ten percent. And if you don’t do that, you’re in big trouble, you don’t make your bonus or you might get fired or whatever. And if you do way better than that, it’s not necessarily as big of an advantage. So, the incentives tend to be very much disincenting taking risks. The second thing is they’re just sloppy. They’re not disciplined about how they think about risk and how they manage it.

Mike Blake: [00:16:32] So, what, in your mind, when you work with companies like that and you present them with the case that they should be taking on more risk than they are, how do you position that argument? Or what does that argument typically look like that a given entity, person, organization should take on additional risk?

Amanda Setili: [00:16:53] Well, first of all, we find ways to manage it where it’s not all that risky. So, understand the market better. Maybe make a small experiment before you make a big experiment. Play several different small bits at once, which is a hedging strategy. Isolate the risk into a certain area of the company where it can’t damage the other areas of the company. So, there’s a lot of things that we can do to manage risk that’s on the plus side on the kind of way to get them to kind of emotionally accept the risk more. It’s often a case of saying, “If you don’t do this, you’re going to be left in the dust.” I mean, they know that, but sometimes they have to be reminded.

Mike Blake: [00:17:45] One of the basic concepts of behavioral finance is the concept or the construct that humans seem to be hardwired against taking risk. And in particular, they’re hardwired to avoid loss or with this notion of loss aversion. Which, I know you know what this means, but our listeners may not. It means that people miss more on a dollar that they actively lose than they do on a dollar that is an opportunity missed. And that sort of creates this perception of risk asymmetry. Have you encountered that as well? And if so, how do you get people to confront that and look at risk in a more clinical way?

Amanda Setili: [00:18:38] Well, first of all, you do want to make sure you don’t lose anything that you can’t afford to lose. So, you don’t want to get in a position where you can’t pay your mortgage. So, there’s a certain level of risk that you just can’t afford to take and so be very explicit about that. But then, I think, thinking about expected value, which is the percent chance that something’s going to happen, times of value that would come to you if it did happen is pretty helpful. And just being very explicit about there is an upside here. The upside is worth it. There’s some downside. But if you look at the expected value, it’s probably a favorable thing to do. And if you don’t do it, you’re going to be in a slow decline.

Mike Blake: [00:19:29] So, it leads nicely to my next question and we’ve touched upon this a little bit with the Kodak story, but I’d like to make this part of the discussion explicit. And that is, so what if people don’t take enough risk? What are the consequences of not taking enough risk?

Amanda Setili: [00:19:49] Well, you mentioned people, and so I think that it would be interesting to take this out of a corporate context and just into a human being context. You take risk when you decide to ask somebody on a date. You take risk when you decide to get married. You know, 50 percent of marriages end in divorce, do you say, “I better not do that because mine might be one of the 50 percent?” Or do you say, “This is my chance for a wonderful life with this wonderful person, I’m going to go for it even with the risk.” What’s was your question exactly?

Mike Blake: [00:20:25] What do you miss out on when you’re not taking enough risk?

Amanda Setili: [00:20:31] A lot of stuff. You have fewer experiences. Fewer experiences or opportunity to grow your business. Fewer opportunities to fully live your life. You name it. You miss out on a lot if you’re too risk averse.

Mike Blake: [00:20:49] So, another question I wanted to cover is, you know, there are varying degrees of risk and you talked about you never want to bet your mortgage or put anything on the line you can’t afford to lose. And, of course, that’s a relative construct. But the question I’d like to ask you to engage with is, is high risk always bad? Is something that’s high risk always something that you should walk away from? Or are there cases in which, you know, something that’s high risk may actually be sensible?

Amanda Setili: [00:21:30] Well, if you just look at investments, for instance, you tend to have a higher return for the higher risk. So, it’s definitely not always bad. You also never would achieve anything truly remarkable and knock it out of the park if you didn’t take risks. Because we would have never gone to the moon if we didn’t accept some risk, for instance. So, high risk is certainly not always bad. But high risk without managing the risk is probably always bad. So, high risk without considering the consequences, mitigating what you can mitigate, taking into account how can we reduce the risk that we see, that is bad.

Mike Blake: [00:22:15] And, you know, that sounds like there’s an important distinction to be made there, if I can semi-put words in your mouth. It seems to me that a risk taker is somebody who takes risks but manages it, can be contrasted with someone who’s reckless that also takes risks. But they don’t manage it and maybe they don’t even fully understand the risks that they’re taking.

Amanda Setili: [00:22:39] That’s exactly it. They don’t understand or don’t think about it. And that probably happens more often when the risk is long term and the benefit is short term. So, if I eat a piece of cake with ice cream every single day, my risk is that I’m going to become obese, and I’m going to have diabetes, and I’m going to die early. But people don’t take that into consideration when they serve themselves that extra helping of dessert.

Mike Blake: [00:23:09] Well, that’s true. And that’s interesting, because, you know, there’s another element. I typically think of risk in terms of two dimensions. One dimension is, what is the likelihood of a bad outcome? And then, B, how bad is that bad outcome? Or what is the distribution of bad outcomes look like and how bad can it go? But a third dimension to that, actually, is the timing of risk. And some risks are accretive over a long period of time and some are instantaneous. And I guess that’s something that also is an important part of the discussion and maybe even gets back to your Fortune 500 clients, where you talk about incentives. Can there be perverse incentives to take risk because the negative impact of the risk may not manifest itself for years after that person’s tenure at the company has long since ended.

Amanda Setili: [00:24:14] That’s exactly right. So, you know, if I’m in a job, I’m the president of a division, and I’m being incented based on this quarter’s results or this year’s results, I don’t want to risk anything for something that’s going to happen after I retire in a few years. Why would I want to do that? So, that’s the kind of thing you need to watch out for when you’re managing a company. But, also, some of the benefits occur way down the line. Well, I guess that’s the same thing that I’m saying, is that, in companies, often the cost is now and the benefit is later.

Mike Blake: [00:24:52] Well, you know, and I think that’s really important. And I have a hypothesis that one of the reasons that private equity and venture capital struggles is because their return thresholds have become much more compressed. And this notion that most venture and private equity funds have a ten year lifespan. That may very well just not be enough time for companies to mature to the point where they can generate a return. And indeed, there’s data out there to suggest that as you approach a 20 year time horizon for a company, that’s when you kind of optimize your risk adjusted return.

Mike Blake: [00:25:31] But on the other hand, if your bonuses are calculated year-to-year or you’re only going to be in that fund for five years or whatever the circumstances are, it probably motivates not industry perverse behavior, for example, to try to harvest companies before they’re fully baked, which is not doing the investors any favors. And that’s just an illustration of that mismatch between the risk and return time horizons.

Amanda Setili: [00:25:59] Right. So, public companies, I think, have even more of a problem with short term thinking because they have to deliver on their earnings expectations every single quarter, and they get really dinged by Wall Street if they don’t do that. Whereas, at least with a private equity firm, if you say we’re shooting for a five year horizon, at least in years one, two and three, you can let it go negative on EBITDA, if that’s the right thing to do, for instance. Because you know that it’s going to pay off in the five years. So, if private equity firms can stay a little bit flexible of what’s the right period of time for this investment to turn positive, then they can protect themselves from that.

Amanda Setili: [00:26:45] But you look at somebody like Amazon, Amazon didn’t make money for years and years and years. They just kept investing. And I’ll never forget that way back in about 2001, I was talking with one of my classmates from Harvard Business School who was way up in the chain at Amazon working closely with Jeff Bezos. And somebody in the crowd said, “When will you guys stop losing money?” And she said, “Well, it only costs us $4 to acquire a new customer. When would you stop?” I just thought that’s a really, really smart way of putting it. Because if it’s only $4 to acquire a new customer, keep doing it until you have everybody in the world using Amazon. And then, you’ve cornered the market, which is kind of what they did.

Mike Blake: [00:27:33] Well, I hadn’t heard that story, but you’re right. I mean, the logic there is very hard to escape, isn’t it?

Amanda Setili: [00:27:39] Yes.

Mike Blake: [00:27:40] So, let’s say that somebody listening to this is starting to ask themselves, “Hey, I wonder if our company is taking enough risk.” What are some signs that a company should be taking more risk or at least should consider taking on more risk than it currently is? What are the warning signs?

Amanda Setili: [00:28:04] If you’ve got a lot of change in your market and you haven’t done anything about it is one of the key things that I look at. If you haven’t invested in any innovation is another thing. Innovation can be product innovation, but it can also be systems integration, process innovation. Even simple stuff like changing the script that your call center is typically a sign that you’re not taking enough risk. If you’re not talking about where do we need to take more risk. And if you don’t have discipline systems for managing risk, that probably means you’re not taking enough risk because you don’t have it in your DNA of how do we think about risk?

Amanda Setili: [00:28:51] You know, because the world is changing fast, the companies that can deal with uncertainty effectively, that’s a huge competitive advantage. To be able to deal with uncertainty effectively and manage risk effectively is probably the number one thing that companies can do to succeed in a fast changing world.

Mike Blake: [00:29:14] I’m absorbing that statement. I think you’re right. And my perspective is one of corporate finance. And I refer to the law of gravity and finance, which says that, high return only accompanies high risk. And if you generate a high return from something that you thought was low risk, you probably just got lucky. And you misevaluated the risk as being lower than it actually was.

Mike Blake: [00:29:46] And I think what you’re describing is fairly closely connected with that. You know, if you want to outperform, then you must do something different from what the rest of the market is doing. Otherwise, you just simply fall into the trap of reversion to the mean. I mean, you might have temporary day-to-day, month-to-month, even year-to-year variability or noise, if you will. But the ending in the long run, you cannot possibly outperform everybody else if all you do is what everybody else is doing.

Amanda Setili: [00:30:23] Exactly.

Mike Blake: [00:30:27] In your mind, is all risk created equal? Or are there different kind of flavors of risk, if you will?

Amanda Setili: [00:30:37] Yeah. There’s definitely different flavors. One major flavor is, are we capable of doing this? Another major flavor is, how are other entities or other people going to respond to what I’m doing? Another is, just what are the consequences of what I’m going to do? So, I think, yeah, there’s a number of different categories that you can think about and each can be managed.

Mike Blake: [00:31:04] So, in your mind, do you have a distinction of what a good risk is versus a bad risk? Is there such a thing as good versus bad risk?

Amanda Setili: [00:31:14] A good risk is something that you can at least name, and that you at least have either some kind of plan to reduce it or manage it. Or, at minimum, monitor it so that you can respond and you have a plan for how to respond if it starts going going badly. A bad risk is the risk you don’t even know is there.

Mike Blake: [00:31:39] The famous unknown unknowns, right?

Amanda Setili: [00:31:42] Yeah. Right.

Mike Blake: [00:31:44] Because those bad risks are almost kind of like open-ended liabilities. There may be no limit to how bad that outcome could be.

Amanda Setili: [00:31:57] Right. Or it’s something that maybe you sort of think might happen, but you don’t really think it’s going to happen, so you don’t worry about it. Like, pandemics, which we all knew. I had a friend at the CDC who, ten years ago said, “We’re way overdue for a pandemic, a worldwide pandemic.” I just go, “Yeah. Yeah. It probably won’t happen.” And here we are.

Mike Blake: [00:32:19] Here we are. So, here’s a question I want to ask you, I hope you’ll agree it’s an interesting one. And that is that, if you take a risk and it doesn’t produce a positive outcome, does that mean that the act of taking the risk was automatically bad?

Amanda Setili: [00:32:46] Definitely not. I mean, there’s some really good speakers on this topic, they’re often professional poker players. And they say, “You know, you calculate your odds and you place your bet. Of course, you don’t always win because the odds were not 100 percent that you were going to win. So, of course, you know that you’re not always going to win. But don’t let the evidence from your failures teach you that you made a bad decision in the first place.”

Mike Blake: [00:33:17] Yeah. And that last point, I think, is so important because, again, it ties back to psychology, at least the things I’ve read. I’m no expert in psychology. But, again, we as people seem to be hardwired to very clearly remember our losses and failures. Whereas, we don’t dwell as much or remember or even place as much value in our successes. And in that regard, it can dissuade people just because you have one bad outcome. It can dissuade people from doing more of the right thing.

Amanda Setili: [00:33:52] I think that’s really true. I think people learn from their failures and that can be kind of bad. Because, oftentimes, when you fail, you think, “Oh, that was because of something that I did that I made a bad decision.” And when you succeed, unfortunately, you often think, “Oh, I got lucky. It wasn’t because of what I did. I just got lucky.” So, yeah, I think that no matter what you do, you’re being trained every day. And you’re training your employees every day. And, often, you’re training them things that you really shouldn’t be training them.

Mike Blake: [00:34:27] Oh, you know what? That’s interesting. What are some examples of things that somebody might be inadvertently training their employees themselves be too risk averse?

Amanda Setili: [00:34:39] A typical one is, you start a new venture within your company because you think that you need to enter a new market or something. And you assign somebody to manage that, they try their hardest. But, you know, it’s hard. Stuff goes wrong. They fail and they either get switched into a different department, or demoted, or even maybe fired, or at least not rewarded very well. But maybe they should have been rewarded well because maybe they did everything that they could have possibly done to make that successful. And the outcome was uncertain and the outcome didn’t go their way. But once you said a couple of examples like that, boy, people are watching. Nobody wants to go near a project like that anymore.

Mike Blake: [00:35:26] Yeah. You know what? That’s really interesting. And I wonder if we’ll ever get to a point where American businesses – and it may not be unique to America, but something I can comment on intelligently – actually celebrate failures? Because, first of all, failures are great teachers, number one. And number two, because the nature of risk that things just aren’t always going to go your way. And I’m curious if you agree with us or not, really, in order for risk management to really take hold and to really make an impact, you almost have to do it a lot. You have to accumulate enough of a sample size so that the impact of the risk management becomes pronounced. And you can actually attribute performance to something other than simple dumb luck of a small sample size.

Amanda Setili: [00:36:28] Right. Right.

Mike Blake: [00:36:30] And on that, I’m curious if you have an opinion on this. On that note, that brings to mind the archetypal Google, now Alphabet, approach to new projects where they like to fail fast. And our conversations made me start to wonder about that particular approach. I think many people idolize Google for the fail fast approach. It’s gutsy. It’s splashy. It’s high profile and everything else. But on the other hand, I wonder if, actually, that could be kind of a perverse or unhealthy form of risk aversion because you may not be writing things out as much as you should.

Amanda Setili: [00:37:18] So, what I think is important is being very clear about what you need to learn from each experiment that you run, and what metrics you’re going to be watching, what behaviors you’re going to be watching, what you’re really wanting out of it. And fail fast, part of it is really good, which is saying, if something isn’t going well and it’s not going to turn around, it’s not going to do any better. Kill it right away, and document what you learned from it, and then try something else.

Amanda Setili: [00:37:51] Because sometimes, especially big companies, they’re slow anyway. It’s a long time between getting the management team together. They just don’t make decisions fast. So, they let this thing linger because they don’t want to embarrass the person who runs it or they don’t want to have to go back to Wall Street and say, “We told you this is going to be successful, but it wasn’t.” So, they let these things linger hoping that they’ll turn around and continuing to pour not quite enough money into them to make them successful, maybe. And so, because there’s a stigma against failure, they don’t let things fail.

Amanda Setili: [00:38:28] So, I think, actually the concept of fast failure is healthy for Google. And I like the fact that they just keep putting different stuff out there and seeing if it flies. And if it doesn’t, they kill it. You know, Facebook is famous for that, too. They do A/B testing, hundreds of different A/B tests every day. And they let almost anybody – I don’t know about almost anybody – but there’s a lot of people who have the decision rights to be able to conduct A/B tests and to learn from them very, very, very quickly.

Mike Blake: [00:38:59] We’re talking with Amanda Setili. And the topic is, Should I take on more risk? You know, we’re both talking kind of a good game here about risk, if you will. I wonder if you’d be willing to share with the audience an instance in which you took a pretty significant risk. And, you know, whether that was a success or a failure, the impact of taking that risk and the lessons that you learned from doing that for yourself or your own company.

Amanda Setili: [00:39:28] You really got me thinking with that one. I guess, that writing my first book was kind of a risk because I invested a lot of time for many months doing that and I didn’t know if this was really important to do, so that was a risk and it did pay off.

Amanda Setili: [00:39:44] I don’t know if I’ve told you, Mike, that my husband and I are really, really into kiteboarding. And in July in kiteboarding, we tend to only get wind when there’s a thunderstorm. So, we’re always watching the radar and trying to figure it out. And, you know, back in March, April, or May, when we get more wind, we might say, “Oh, we’re going to pack up the kites and go home if the lightning is within 20 miles.” And then, it gets to July and you’re, like, desperate for wind. There’s been no wind for seven days or whatever you’ve been waiting for wind. And there’s wind, but the lightning is within ten miles and you go, “Well, maybe I’ll just go out there for a little while.” So, that’s an example.

Mike Blake: [00:40:32] Well, you know, that’s an interesting story and actually is illustrative, I think, of a dimension of risk where, you know, the same risk is there. But because your perceived return was higher, you then determine that it was a risk that was worth taking. I do think there’s a business application to that, is that, higher risk is okay as long as you’re being adequately compensated with the potential upside of taking that risk alongside with, of course, management of downside as well. And in your case, that upside manifested itself with, I think, relative scarcity, because the downside was that if you didn’t take the risk, you might have just missed out on your entire kiteboarding season and have to wait another year.

Amanda Setili: [00:41:24] That’s right.

Mike Blake: [00:41:30] Now, a common approach to managing risk and finances where I live is this concept called diversification. I’m sure you’re familiar with it, too. Can diversification as a risk management tool be applied outside of the direct investment world?

Amanda Setili: [00:41:51] Well, yeah. We do that all the time, where, you know, you are trying to enter a new market, let’s say. And instead of just doing it one way, you might run three to five different experiments. We’ll try different things in different markets. We’ll try different ways of going to market. We’ll try different sales pitches for this product. So, I think that diversification, in that sense, is just trying different things and being very systematic about what you try and what you need to learn from your trials.

Mike Blake: [00:42:27] So, Amanda, we’re running out of time, and this is a topic that, frankly, we could do a whole semester on risk. Maybe we should. But there are probably questions that I didn’t get to or questions that somebody would have liked us to go deeper into but we didn’t. And if that’s so, can people contact you with additional questions about this topic? And if so, what’s the best way for them to do that?

Amanda Setili: [00:42:50] So, you can certainly email me at amanda@setili.com, S-E-T-I-L-I. And reach out to me on LinkedIn. I’ve got a weekly newsletter there which you can subscribe to, which I address issues like this. And, actually, I think both of my books have a chapter on managing uncertainty, and how it’s so important, and how people who don’t accept uncertainty are probably not going to do very well. So, get a hold of those and you might be able to get some additional insight. Connect with me on LinkedIn and my website.

Mike Blake: [00:43:29] Do you want to give us the website domain?

Amanda Setili: [00:43:34] The website is just setili.com, S-E-T-I-L-I.com. There’s lots of information there, and videos, and other podcasts, and things like that.

Mike Blake: [00:43:44] Very good. Well, that’s going to wrap it up for today’s program. I’d like to thank Amanda Setili so much for sharing her expertise with us.

Mike Blake: [00:43:52] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us that we can help them. If you’d like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

Tagged With: Amanda Setili, Brady Ware & Company, Decision Vision, Fearless Growth, manage risk, Mike Blake, risk, risk advisory, risk advisory services, Settili & Associates, The Agility Advantage

The DSO Deal – What You Better Know

August 6, 2021 by John Ray

DSO-Deal
Dental Law Radio
The DSO Deal - What You Better Know
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DSO-Deal

The DSO Deal – What You Better Know (Dental Law Radio, Episode 15)

Within the next few years, it’s likely that 60% to 70% of all dental practices will be owned by a DSO. That’s what some industry observers are predicting, and if that’s the case, says host Stuart Oberman, you’d better understand the elements of what’s involved in an acquisition. From the letter of intent to the closing, Stuart covers the key highlights in this episode. Dental Law Radio is underwritten and presented by Oberman Law Firm and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

Intro: [00:00:02] Broadcasting from the Business RadioX Studios in Atlanta, it’s time for Dental Law Radio. Dental Law Radio is brought to you by Oberman Law Firm, a leading dental-centric law firm serving dental clients on a local, regional, and national basis. Now, here’s your host, Stuart Oberman.

Stuart Oberman: [00:00:26] Hello everyone, and welcome to Dental Law Radio. The topic of the day, DSO. The DSO deal, what you better know. I can’t tell you how many times a day, a week, a month we get calls from buyers or sellers. “I want to form A DSO. I want to scale a DSO. I want to sell the DSO. I got private equity, I want to be a DSO. I want to buy ten practices. I want to sell my practice.”

Stuart Oberman: [00:00:57] And I will tell the doctors, one, you got to take a step back – I don’t care if you’re buying, selling, merging, acquire – you have to understand the nature of the deal. It is not like it is ten years ago. Honestly, it’s not like it was five years ago or even, frankly, two years ago. We’re seeing a whole different metrics in there in the world. There’s a whole cottage industry now that does nothing but DSO deals, whether it’s law firms, consultants, buying, selling. Everyone is into the DSO deal. I think they estimated that, probably, within the next couple of years 60 to 70 percent will be group-owned practice. Now, we’ve got to understand what that means.

Stuart Oberman: [00:01:46] What does a group-owned practice mean? So, you got different levels. You got your docs, “I own maybe one to five.” Then, you got your mid-levels, you know, maybe it’s 10 to 20. Then, you got the big boys, maybe 20 to 40. Then, you got the really big boys, really big boys. There’s a big difference on economy of scale. But a lot of our guys are middle market good doctors. They want to grow. They’re a little tired. They want to get out of the chair a little bit. They want to make some revenue. Their backs getting sore. They see what the market is. It is an absolute brutal market from a legal standpoint. It is a brutal market from an accounting standpoint.

Stuart Oberman: [00:02:34] And I’ll tell you, most CPAs have no idea what this constitutes. I hate to say that, but most do not. Some are very good, some are under the cloak. We work with clients all over the country. We’re very, very fortunate we have a lot of exposure in this area and we deal with a lot, a lot of resources.

Stuart Oberman: [00:02:51] So, what I want to do is, I want to take apart a DSO deal. This is a seven day topic. We’re trying to drill it down pretty good. First and foremost, you got to understand what a letter of intent is. That’s the key. That’s the start. So, what do you do on a letter of intent? Everything looks good, you agree. And then, all of a sudden, the one page letter of intents are dead. Now, we’re talking 10 or 15 page letter of intents. I want to walk through what these are. I don’t care if you’re a buyer or a seller, you have to know what you need to know before you walk in the door. I’m trying to be generic on these as far as the terms go. And I would urge you that this is a whole different market. DSO is a whole different world, that’s if you’re going to scale.

Stuart Oberman: [00:03:46] So, first and foremost, you got to understand the terms of the purchase. Nonbinding agreements, what is it? It’s a mutual understanding, reflection of the parties, and it should never be a binding LOI. Now, you’re going to have some confidence in there that they’re going to be, you know, enforceable but should be nonbinding. If you sign a nonbinding agreement, you’re getting really, really bad advice.

Stuart Oberman: [00:04:11] So then, you have to look at what the overall transaction is. You’re thinking, “What in the world does that mean?” Every detailed LOI on DSO side has a term sheet. Everyone that we ever run across. I’ll say it’s Exhibit A, call it what you want. So, what is it? What does it include? “Well, Stuart, you know, I dealt with a broker one time and the LOI was three pages.” You might just shred that in this world.

Stuart Oberman: [00:04:43] So, what is the terms? Here it is. This is what you need to look for. You need a seller, you need a buyer, the purchase price. What’s your price reduction? There’s always price reductions. What’s your holdbacks? What’s your equity rollover treatments, your in-seller indemnification clauses. Yes, you have obligations.

Stuart Oberman: [00:05:07] So then, all of a sudden, you get into what we call bonus performances. Well, what in the world is that? So, that’s broken down in various categories. You never knew that before. You have performance bonuses. You got primary bonuses. You got 12-month collections. You got 24-month collections after closing. Yes, you’ll be held accountable for those performance bonuses. Trust me, you are not walking in there with no obligations. That’s a performance bonus. All that’s listed separately.

Stuart Oberman: [00:05:38] So, what about a primary performance bonus, your PPB parameters? “Oh, never heard of that.” So, what happens if that’s not met? What happens if you’re PPB is not met? What if it’s not earned in a specific year? How are you equating that? How is that calculated? Do you even know what that is? So then, in addition to that, you got additional performance bonus opportunities. So, what does that mean? So, you calculate what happens if your bonus exceed calculations for the 12 or 24 months. “Well, I didn’t know I had that opportunity.” These are the things that if you are not careful with, you’ll be leaving tons and tons and tons of money on and off the table. These are all performance bonuses.

Stuart Oberman: [00:06:38] If you think you’re going to walk into a DSO, whether you’re buying or selling, and not have performance bonuses, you are sadly mistaken. The days are gone where you’re going to sell your practice to a DSO. Or you’re going to buy one and the seller is going to be out on the road in 90 days, it doesn’t happen.

Stuart Oberman: [00:06:59] So then, you got to look at what are your additional performance bonuses. I know we’re getting a little deep here, but I want to run through this. Your APB parameters. You got targeted achieved, targeted not achieved. So what if you hate it, you got to prorate it. Does your CPA have any idea what these numbers are? So, now, we say, “Well, we’re just looking at the price.” So, now, you got the assets purchase agreement. A lot of times the government allocations are not included. What if you have a high subsidy of insurance or governmental payments? You got to look at those numbers. If you’re a CPA, you got to know these numbers. What are your earnout hurdle reductions? “I didn’t know I had those.” You’re always going to have earnout reductions.

Stuart Oberman: [00:07:48] So then, they say, “Well, you know what? We’re going to take a percentage of your sale price. And, now, I want you to hold back equity in our company.” That is a risk always. Are you getting more money upfront? What’s the next three to five years look like? What’s the recap look like? So then, you’ve got to take a hard, hard look, are you Class A preferred shares, Class C shares? You have to understand what those ramifications are as far as your obligations and your rights.

Stuart Oberman: [00:08:29] I will tell you that probably under these particular classes, you will not have many rights and you’ll be at the beck and call of the DSO. You got to understand that. You got to get these agreements up front before you even sign the final dotted line. Because once you sign the documents, it’s too late. You can’t get into these documents. You got to drill deep pretty hard before those.

Stuart Oberman: [00:08:54] So then, you work through the other areas, employment issues, you and your staff. How long is the employment? Employment of your staff, you want to protect your staff. It’s not going to happen. Post-closing role, what are you going to do? Are you going to be clinical director, going to be chief dental officer? How much time are you taking off? “Well, I’m going to work 246 days a year.” No, you’re not. You’ll never hit your numbers. “Well, that’s not what I wanted.” Well, you’re in the wrong game. Because you’ll have some strict numbers you got to hit. And it’s not going to be at your control because you’re going to have expenses that are going to come off your bottom line. What’s additional compensation? “Well, I don’t know what that is.” Then, you better know.

Stuart Oberman: [00:09:45] So, that’s a very, very generic overall concern regarding performance bonuses. Again, that’s pretty deep stuff. We’re talking documents and documents, documents. But I want to give you a brief overview as to what you need to look at, and what you should be prepared for, and what you need to know before you even get into the game, and your CPA needs to know.

Stuart Oberman: [00:10:09] So then, “Well, you know, we’re going to sign a noncompete.” You bet you are. You’re not going to work for another DSO for a couple of years. “Noncompete is probably two years, 25 miles. That’s a long way.” “Yes, it is, Doc. Yes, it is.” You’re going to be tied. You’re getting millions. You’re going to be tied. So, if you’re buying a practice, you better tie that doctor down. If you’re selling, you better know what you ramifications are as far as radius goes.

Stuart Oberman: [00:10:37] What’s excluded assets? There’s always excluded assets. Liabilities, are you in debt? Do you know all your debt? What’s your intellectual property? Do you own your logo? Do you own your trademarks? What are your holdbacks? Cash upfront, cash being held back? Are you repurchasing Class A shares, C shares? Are you getting equity rollover as collateral? What’s the tax consequences of that? Is it a taxable event or is it tax deferred? What’s your tax allocation in the purchase price?

Stuart Oberman: [00:11:13] There’s a big difference in a DSO and a normal sale as far as your tax allocations go as far as personal goodwill. Some are liberal, some are not. Those are things you got to drill down with the CPA. This is not a 30 day process, guys.

Stuart Oberman: [00:11:27] Let me tell you, if you’re buying, you better do your due diligence. You better have a due diligence checklist, folks. If you’re selling, you better be prepared to be worn out. You’re talking about [inaudible] earnings. You’re talking about a lot, a lot of information that’s going to be passed hands down through a lot of information. So, due diligence is going to be extensive. You get a $40 million deal, they’re going to wear you out. But you got to be prepared for it. It’s a journey.

Stuart Oberman: [00:11:59] So, one of our recommendations is, before you even start this process, get your documents upfront, get your numbers, get them loaded up, and ready to roll. Because once that process starts, it rolls quickly. And it goes quick.

Stuart Oberman: [00:12:14] So then, you got a question, “Well, they’re going to tie me down. They don’t want to deal with anybody else for 60, 120, 180 days.” You’re right. What if the deal falls apart? You’re off the market for four, six, eight months. You got no way out. You’re stuck. So, you need to understand that the offers that you get will tie you up. So, you better pick a good one. I know what’s going on upfront because otherwise you’re going to be off the market for a while and time is money in these deals.

Stuart Oberman: [00:12:52] So, how do you terminate an LOI, Letter of Intent? A couple ways, which [inaudible] the asset purchase agreement itself. When the buyer sends you a letter saying, “You know what? I’m good. I don’t want to do this anymore. The numbers didn’t add up. Sorry. We no longer wish to proceed.” You’re done but you’re still an exclusive period. Or the expiration of an exclusive period. “We’re done. We’re closing.”

Stuart Oberman: [00:13:23] So, there’s a lot of information, guys. A lot information, and it’s really way beyond this particular scope, if you will, as far as the DSO deal. This is a whole seminar, a whole topic. But we’re getting a lot of questions on this, a lot of questions every day. How I form it? How I buy it? How I sell it? What do I do? How to consolidate a merging? What do we need?

Stuart Oberman: [00:13:54] First and foremost, if you’re a buyer, you’ve got to have the right people around you. It doesn’t matter if you’re a doctor or DSO. Of course, you already know that if you’re a DSO. But if you’re a doctor, you got to be prepared to scale. You’ve got to have your systems in place before you do anything else. There’s no way that you can purchase three practices without your internal partitions being set. There are a lot of headaches.

Stuart Oberman: [00:14:18] If you’re selling, you got to be prepared for the rigors of selling to a DSO. You got to be prepared to have performance bonuses. You’ve got to be prepared to, possibly in some case, work a little harder. If you think you’re going to sell and work three days a week like you were doing before, it’s probably not going to happen. Expect to hit all your numbers, and you will be expected to hit your numbers. Again, you got performance bonuses, you got primary performance bonuses, you got additional performance bonuses, you got top additional bonuses.

Stuart Oberman: [00:14:52] So, you got to look at all those parameters and make sure you know exactly what you’re buying, what you’re selling, what’s the company like, what’s the cap rate. What are you looking at, Class A preferred shares, Class C shares, or vice versa? What are you looking at on that side? What’s the compensation on the chief financial officer side? Post-closing, what was expected there? The non-competes, your holdback numbers. So, those are all the things. And, again, you’ve got to have people, especially on the financial side, who understand this. And on the legal side, it gets very complex – very, very complex on our side. So, there’s a lot of pieces here.

Stuart Oberman: [00:15:44] So, that’s the sort of the DSO. You know, it’s hot all over the country. A lot of money to be made in these areas. But there’s a lot of risk. And it’s not for everyone. Some doctors want to scale, some don’t want to scale. So, basic parameters. Hopefully, you’ve picked on a couple of topics that you need to take a look at or be aware of, if you are not or your CPA needs to be aware of.

Stuart Oberman: [00:16:12] So, yeah, give us a call. We do it every day. We love what we do. We have access to a lot of information on a national basis because of the DSO market. And if you have any questions, give us a call, 770-886-2400. My name is Stuart Oberman. Feel free to reach out to us or e-mail at stuart, S-T-U-A-R-T, @obermanlaw.com. And thank you for joining us. And we will see you on the next DSO deal.

About Dental Law Radio

Hosted by Stuart Oberman, a nationally recognized authority in dental law, Dental Law Radio covers legal, business, and other operating issues and topics of vital concern to dentists and dental practice owners. The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

Stuart Oberman, Oberman Law Firm

Oberman Law Firm
Stuart Oberman, host of “Dental Law Radio”

Stuart Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 25 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company. Mr. Oberman is widely regarded as the go-to attorney in the area of Dental Law, which includes DSO formation, corporate business structures, mergers and acquisitions, regulatory compliance, advertising regulations, HIPAA, Compliance, and employment law regulations that affect dental practices.

In addition, Mr. Oberman’s expertise in the health care industry includes advising clients in the complex regulatory landscape as it relates to telehealth and telemedicine, including compliance of corporate structures, third-party reimbursement, contract negotiations, technology, health care fraud and abuse law (Anti-Kickback Statute and the State Law), professional liability risk management, federal and state regulations.

As the long-term care industry evolves, Mr. Oberman has the knowledge and experience to guide clients in the long-term care sector with respect to corporate and regulatory matters, assisted living facilities, continuing care retirement communities (CCRCs). In addition, Mr. Oberman’s practice also focuses on health care facility acquisitions and other changes of ownership, as well as related licensure and Medicare/Medicaid certification matters, CCRC registrations, long-term care/skilled nursing facility management, operating agreements, assisted living licensure matters, and health care joint ventures.

In addition to his expertise in the health care industry, Mr. Oberman has a nationwide practice that focuses on all facets of contractual disputes, including corporate governance, fiduciary duty, trade secrets, unfair competition, covenants not to compete, trademark and copyright infringement, fraud, and deceptive trade practices, and other business-related matters. Mr. Oberman also represents clients throughout the United States in a wide range of practice areas, including mergers & acquisitions, partnership agreements, commercial real estate, entity formation, employment law, commercial leasing, intellectual property, and HIPAA/OSHA compliance.

Mr. Oberman is a national lecturer and has published articles in the U.S. and Canada.

LinkedIn

Oberman Law Firm

Oberman Law Firm has a long history of civic service, noted national, regional, and local clients, and stands among the Southeast’s eminent and fast-growing full-service law firms. Oberman Law Firm’s areas of practice include Business Planning, Commercial & Technology Transactions, Corporate, Employment & Labor, Estate Planning, Health Care, Intellectual Property, Litigation, Privacy & Data Security, and Real Estate.

By meeting their client’s goals and becoming a trusted partner and advocate for our clients, their attorneys are recognized as legal go-getters who provide value-added service. Their attorneys understand that in a rapidly changing legal market, clients have new expectations, constantly evolving choices, and operate in an environment of heightened reputational and commercial risk.

Oberman Law Firm’s strength is its ability to solve complex legal problems by collaborating across borders and practice areas.

Connect with Oberman Law Firm:

Company website | LinkedIn | Twitter

Tagged With: dental law, Dental Law Radio, dental practice acquisitions, Oberman Law Firm, Stuart Oberman, The DSO Deal

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