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Alpharetta Tech Talk: Rachel Stuve, Golden Seeds

December 20, 2019 by John Ray

Rachel Stuve
Alpharetta Tech Talk
Alpharetta Tech Talk: Rachel Stuve, Golden Seeds
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Rachel Stuve
Rachel Stuve

“Alpharetta Tech Talk,” Episode 5: Rachel Stuve, Golden Seeds

Data analytics leader Rachel Stuve was recently voted one of LinkedIn’s top voices in 2019 for Data Science and Analytics. She joins “Alpharetta Tech Talk” to discuss a variety of topics, including her career in data analytics, data and the customer experience, how a data analytics program drives a company’s value, and her role with Golden Seeds, and more. “Alpharetta Tech Talk” is hosted by John Ray and broadcast from the North Fulton Business RadioX® studio inside Renasant Bank in Alpharetta.

Rachel Stuve, Golden Seeds

Rachel Stuve
Rachel Stuve

Rachel Stuve is Director of Analytics with Golden Seeds, an early-stage investment firm with a focus on female leaders. Golden Seeds is dedicated to pursuing investment returns through the empowerment of women entrepreneurs and the people who invest in them. The group was founded in 2005 and is headquartered in New York City, with active chapters in Atlanta, Boston, Dallas, Houston, and Silicon Valley. Golden Seeds’ angel network has become one of the largest in the country, with over 275 members nationwide.

Rachel is a founding member of the Atlanta Golden Seeds chapter. In addition to her work in the angel investment community, Rachel has over 15 years experience in healthcare, manufacturing, government, retail, and IT services as a seasoned analytics professional. Through Golden Seeds, she mentors women entrepreneurs in collecting and monetizing data, customer experience, data security and more.

For more information, you can contact Rachel through LinkedIn. To learn more on Golden Seeds, you can find their website here.

Rachel Stuve

“Alpharetta Tech Talk” is broadcast from the North Fulton studio of Business RadioX®, located inside Renasant Bank in Alpharetta. 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 approximately $12.9 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.

Tagged With: data analytics, data collection, data security, GA 400 technology, Golden Seeds, mentoring female entreprenuers, mentoring women, monetizing data, North Fulton Business Radio, North Fulton Studio, North Fulton technology, Rachel Stuve, Tech Alpharetta, Tech in Alpharetta, tech talk, technology GA 400, technology in Alpharetta, technology in Johns Creek, technology in North Fulton, women entrepreneurs

Decision Vision Episode 44: Should I Run for Political Office? – An Interview with Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock

December 19, 2019 by John Ray

should I run for political office
Decision Vision
Decision Vision Episode 44: Should I Run for Political Office? - An Interview with Rep. Dar'shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock
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should I run for political office

Decision Vision Episode 44: Should I Run for Political Office? – An Interview with Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock

More business owners than ever are running for political office. What should I consider in making this decision? How will holding political office affect my business? On this edition of “Decision Vision,” host Mike Blake speaks with business Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock on these questions and much more. “Decision Vision” is presented by Brady Ware & Company.

Rep. Dar’shun Kendrick, Georgia House of Representatives

should I run for political office
Georgia Rep. Dar’shun Kendrick

Dar’shun Kendrick was born and raised in Decatur, Georgia. She has a dual degree in political science and communications from Oglethorpe University, a law degree from the University of Georgia and a Master in Business Administration from Kennesaw State. Both of her parents are entrepreneurs so she grew up understanding the unique challenges of business owners, particularly business owners of color.

That’s why since 2010, Dar’shun has dedicated her capital compliance law firm to making sure everyone has access to legal services and tools to raise capital for their business in a way that makes sense for every size business and every investor. Her passion and focus have specifically been on making sure that minorities and women have access to the tools and resources they need to reach their capital raising goals. To date, she has helped companies raise over half a billion ($500MM) in investment funds. In 2019, she became a Series 65 license holder (investment adviser representative) with the ability to provide strategic investment advice to her corporate clients as a part of her services.

Dar’shun is also an innovator and community activist. She was featured in the Huffington Post as 1 of 25 people positioned to Scale Atlanta’s Growing Inclusive Technology Start Up Ecosystem for Black Americans and Beyond. In 2017, she was elected to the Technology Association of Georgia’s (TAG) Corporate Development Board and in 2018 elected to the TAG Diversity Board. She is also a past contributor to Black Enterprise Magazine focusing on economic justice issues. In 2017, she founded Georgia’s 1st ever Georgia Blacks in Tech Policy Conference & Follow Up “Day of Action” with the focus on advocating for inclusive tech policy throughout the state. This event continues on today as the “Tech for All” Policy Conference.

Dar’shun’s service extends beyond her capital compliance firm. Since the age of 27, she has also served as a member of the Georgia House of Representatives. She represents over 54,000 Georgians in DeKalb and Gwinnett counties. She also founded Georgia’s first Technology, Innovation & Entrepreneurship Caucus which is a bipartisan caucus of Georgia legislators and stakeholders committed to the mission of supporting entrepreneurs within the state. She currently serves as the Chief Deputy Whip of the House Democratic Caucus and a ranking member of the Small Business & Jobs Creation committee.

Awards (last 3 awards awarded)- She was awarded the Urban League of Greater Atlanta Young Leader Award (2019) and named as an awardee for the Atlanta Business Chronicle’s “40 under 40” awards (2019) and nominated for 2 NAACP awards for criminal justice reform and her business (2017 and 2019).

Dar’shun is a community activist, public speaker & teacher, elected official, private securities attorney, and a proud member of Alpha Kappa Alpha Sorority, Inc. She currently resides in Lithonia, Georgia.

Councilman Colin Ake, City of Woodstock

should I run for political office
Councilman Colin Ake, City of Woodstock

Colin Ake was elected to Woodstock City Council in 2017. Prior to announcing his run for City Council, Colin served as the Mayor’s appointee on the Woodstock Planning and Zoning Commission for a year and a half. While on the Planning Commission, he was elected Vice-Chair by his peers. Colin served as the Chair of the Greenprints Alliance Board of Directors in 2016 and 2017, and as the Vice-Chair in 2015. He was invited to represent Greenprints Alliance on the Woodstock Police Department’s Body-Worn-Camera Working Group. Colin has provided significant input to the Cherokee Office of Economic Development and Woodstock Office of Economic Development on Fresh Start Cherokee and The Circuit as they work to incorporate startups into their economic development plans.

Professionally, Colin is employed by Georgia Tech’s VentureLab, where he works with commercialization projects. He teaches entrepreneurship to commercialization teams through the NSF I-Corps Program, where he is a Regional Lead Instructor. He leads programs across the southeast and assists in the administration of the I-Corps South grant at Georgia Tech. Colin has taught at Georgia Tech’s Scheller College of Business and is a member of the Georgia Tech Faculty Senate. He also represented Georgia Tech on the State Senate’s Camden County Spaceport Study Committee, where he studied the opportunities and challenges facing the potential spaceport on the Georgia coast.

Prior to joining Georgia Tech, Colin spent four years rebuilding an aerospace company focused on reusable launch operations and lunar/planetary lander technology development. He previously worked at the Georgia Tech Research Institute and at an early-stage technology startup for two years. Colin holds a Bachelor of Science in Management and a MBA from Georgia Tech.

Colin grew up a mile from Woodstock and moved back to the city with his wife Nikki to start their family. Colin, Nikki, and children (Owen & Lealynn) are members at Sojourn Community Church in Woodstock, where Nikki is an active member of the finance committee, and Colin plays drums and works on long-term planning projects.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is 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.

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

should my business buy real estate?“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 here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:09] 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: [00:00:28] And 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 where you might need help along the way.

Mike Blake: [00:00:48] 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, which is where we’re recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe in your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:11] So, today, we’re going to talk about whether you as a business owner executive should run for political office. And regardless, I think, of where you are in the political spectrum, if you are at any place, I’m not sure where I am anymore, I think that’s an increasingly important topic. I think we’re seeing more people with a business background seeking office at all levels. And indeed, like them or love them, love them or not like them, the current President of the United States does come from a business background. And indeed, he ran on his business background as a reason why that is the case he made that he would be a good president of the United States. And that’s something that he invokes fairly regularly.

Mike Blake: [00:02:02] And it’s not just he that’s doing that. Mike Bloomberg has recently jumped into the race. There’s discussion now about, you know, whether billionaires can buy their way to the presidency. And again, we’re not going to talk about that particular topic, but I think there’s an increasingly blurred line now between politics and business. And maybe there’s always been a blurred line and depending, again, where you sit, maybe it’s an uncomfortably blurred line. But the fact of the matter is, I think, that the people who did not think that they had the stuff or the wherewithal, even the desire to run for political office and just sort of put themselves in the seat of being a business person, now, are thinking of themselves potentially in a dual role or maybe it’s even something they do with either a subsequent or intervening chapter in their lives.

Mike Blake: [00:02:56] And, you know, the recent statistics on this podcast still are flooring to me. We’re pushing about three-and-a-half million downloads, I understand, since February. Chances are good at least one of you has thought about running for political office. So, at least, this could be interesting to one of you out there. But I think it will be interesting to more on that. And we actually have a director at Brady Ware & Company that was elected mayor for one of the towns, I believe, outlying Dayton. He took over as mayor when the previous mayor resigned. And then, ran and was elected in his own right. So, we’re even seeing that inside our own company.

Mike Blake: [00:03:35] So, as you know, when you listen to this podcast, we’re bringing in people who actually know what they’re talking about, because I certainly don’t. And coming in to talk about this topic today are two people who are balancing public service and their own careers. And so, joining us today is Dar’shun Kendrick, a five-term member of the 93rd and/or 94th Districts of Georgia in the Georgia House of Representatives as the chief deputy whip. And I say the 93rd/94th, because I think it was a 94th District for her first term. And then, thanks to redistricting, I think it then became the 93rd. But for those who aren’t in Georgia, our assembly is made up of 180 members, a fairly large body, partially because we just have, I think, more counties than anybody in the country.

Mike Blake: [00:04:25] We’re not serving her constituents in this capacity. Dar’shun is a capitol compliance lawyer dedicated to guiding Black and female founders in the capitol, raising investing process. She provides these services through her company, the Kendrick Advisory, an advocacy group. She’s an arbitrator of the Financial Industry Regulatory Authority or FINRA. I did not know that before I was researching this podcast and she holds a bachelor of arts from Oglethorpe University, I live about a-mile-and-a-half from there, holds an MBA from Kennesaw State University and a law degree from the University of Georgia.

Mike Blake: [00:04:56] And she’s joining us by phone today. So, you may hear some noise in the background. With those of you who are not from Georgia, we have a unique driving environment here. And one of the unique features of the driving environment is that rain, particularly cold rain, will turn the streets of the greater Atlanta metropolitan area into an episode of Ice Road Truckers, basically. So, Dar’shun, please drive carefully as you’re on the podcast. Thanks for joining us.

Dar’Shun Kendrick: [00:05:25] Yeah. Thanks so much. And I’m sorry I couldn’t be in the office or in the studio today. But as you know, we are getting ready for session. So, we’re trying to make do with the 24 hours we get.

Mike Blake: [00:05:37] Yeah. Well, if you guys can vote a 26-hour day, I’d really appreciate that.

Dar’Shun Kendrick: [00:05:42] Yeah. So would I. I’ll work on that.

Mike Blake: [00:05:45] Also, joining us today is Colin Ake. Colin was elected city councilman in 2018 for the City of Woodstock, Georgia, a municipality of southern Cherokee County, the population of just over 30,000. And Woodstock is, oh, I’m going to say about 20 miles north and west of downtown city of Atlanta, maybe a little bit farther than that. Prior to serving in that role, Colin was a—or give me some help here, was it a or the planning and zoning commissioner for the City of Woodstock.

Colin Ake: [00:06:13] I was one of seven.

Mike Blake: [00:06:15] Okay. One of seven. So, a planning and zoning commissioner. When not serving his constituents, Colin is a principal at Georgia Tech VentureLab, where he serves as an instructor on innovation and entrepreneurship. Colin actively works with entrepreneurs and researchers to commercialize research, identify, and secure grant funding, mentor startups, and modify and implement Georgia Tech’s evidence-based entrepreneurship curricula. This includes training and evaluating other instructors in the customer development methodology employed by the I-Corp program and across Georgia Tech.

Colin Ake: [00:06:44] At some point, I’d have you back to talk about because that’s an interesting program. It’s one that I think is unique. Colin holds his bachelor degree in management and his MBA from Georgia Tech. So, regardless of any kind of political discussion here, we have somebody from the University of Georgia and somebody from Georgia Tech, and that’s probably going to create more tension on this program than anything. And if you are from Alabama or Auburn or Florida, Florida State, you know exactly what I’m talking about. Colin, welcome to the program.

Colin Ake: [00:07:10] Thanks, Mike. Thanks for having me.

Mike Blake: [00:07:12] And interestingly, you’re wearing a shirt today that’s yellow with black stitching on that. Is that something that you arranged or?

Colin Ake: [00:07:20] Not specifically because of where Dar’shun went to get her law degree, but I did pick it out.

Mike Blake: [00:07:29] All right. So, let’s jump into it, because we got a ton to cover here. So, Dar’shun, let me let you go first. Ten years ago, you began to serve in your capacity in the Georgia legislature. What motivated you to do that?

Dar’Shun Kendrick: [00:07:49] Well, here, I have a very unique and interesting story. So, I essentially was at the right place at the right time or the right place at the wrong time, depending on which day of the week it is. I was a 27-year old who had just started practicing law for small business litigation firm downtown. And the law firm imploded one summer. And so, they let everybody go. And so, I had started my MBA program. And I had to start my own law firm.

Dar’Shun Kendrick: [00:08:28] So, I actually happened to be down as the capitol because two hours before I got down there to meet with our rep on some sort of marketing for my new firm, the person in my seat decided to run for governor. And so, they were looking for people. And I just so happened to be at the capitol meeting on an unrelated matter. I didn’t even know they would qualify me. And so, the person I was meeting with, I had known since I was a teenager because I worked at the capitol and they asked me what district I was in.

Dar’Shun Kendrick: [00:09:04] And I said, House District 94, which is 94 at the time. And he said, “Well, we need you to run for office.” And of course, I thought he was crazy because I was starting the MBA program and a new law firm. But the long story short is I ended up qualifying 30 minutes before the qualifying ended. So, I actually went from a private citizen to a full-blown candidate unexpectedly overnight. So, I wish I had a better inspirational story about how I worked hard enough and I planned to be in this position, but that is the true story of how it happened.

Dar’Shun Kendrick: [00:09:43] But I ultimately decided to say yes because I knew I eventually wanted to work on state house. I just thought it would be kind of be, you know, sort of when I had a more stable career, when I was older, maybe with a family. But I decided to say yes, because, you know, I grew up in DeKalb County and I represent Dekalb County. I knew that I was more qualified than the people that were running. I already had tremendous support before I even signed the qualification document, so I knew that I could do it. And even though it came unexpectedly and it came fast, I have had a pleasure of serving 54,000 Georgians ever since.

Mike Blake: [00:10:29] Okay. And I have a feeling there are probably other stories that are kind of like that. But Colin, how about you? What’s your story? Did you also sort of fall into public service that way or is that the more of a longer term ambition of yours?

Colin Ake: [00:10:44] No, I kind of fell into it. I grew up in Woodstock. And Woodstock has changed a lot. It has grown massively in the last couple of decades and really become a place that is much different than where I grew up. My wife and I moved back to Woodstock in 2013. And I got involved in a local nonprofit focused on building a trail system just because I want to be able to raise a family somewhere over there. It was a good outdoor recreation opportunity. And from there, I got asked one day to serve on the Planning and Zoning Commission, which was not on my radar, not something I’d been to, not something I was involved in.

Mike Blake: [00:11:26] Did you know anything about planning and zoning?

Colin Ake: [00:11:27] I did not know anything about planning and zoning. But I love learning new things. And so, I dove in and had a lot of fun over the course of about a-year-and-a-half. Planning and zoning in the State of Georgia, most bodies are recommending bodies. In other words, they’re appointed by mayor and city council, but they recommend decisions. And then, the mayor and city council make the final decision. And after about a-year-and-a-half of seeing recommendations go one way or the other and the city council listened to some of them and not listened to others, I decided, well, it might be time to make this vote count if I’m spending the time on it.

Mike Blake: [00:12:05] Like the Christmas song goes, if you’re so smart, you rig up the lights, right?

Colin Ake: [00:12:09] Something like that.

Mike Blake: [00:12:10] So, let’s go into that then. Your first election, talk about running in your first election was like.  You, yeah.

Colin Ake: [00:12:21] Yeah.

Mike Blake: [00:12:22] Colin.

Colin Ake: [00:12:22] So, my first election was an experience. So, I ran against an incumbent that was first elected and hadn’t been in office continuously, but was first elected in the year 1990.

Mike Blake: [00:12:35] Wow.

Colin Ake: [00:12:36] So, 2017, I’m running against a guy who has been in office in and out a couple of times, but for for a while. Nice guy. But I wanted a shot. So, I qualified and started running. Somebody else also qualified. So, I had a three-way race and that was quite the experience. It’s a lot of door-knock and it’s a lot of talking to people. It’s a lot of time. It is a great experience. You know, I teach this entrepreneurship stuff at Georgia Tech, right? We teach researchers to go talk to customers and actually understand the people. I mean, knocking on doors is all that, right?

Mike Blake: [00:13:12] Yeah.

Colin Ake: [00:13:12] It is essentially sitting there and that-

Mike Blake: [00:13:13] I hadn’t thought about that. That’s right.

Colin Ake: [00:13:15] … you are learning about your constituents or potential constituents at this point. And what do they care about? Why do they care about those things? And it’s a lot of fun, but it’s a lot of work. You wear through some shoes and it was a good time. I was fortunate enough to avoid a runoff. I won outright. I was a little surprised. You know, I know a lot of people do these victory parties, I didn’t do any of that. I was ready to find out who I was going to be against in the runoff. And I had about four people at my house. And it turned out okay.

Mike Blake: [00:13:51] Well, knowing you, that sounds about right though. You’re kind of a low-key guy, so I don’t see you as a victory lap guy. Dar’shun, how about you? I mean, I know you, sort of, were an overnight qualification story, but what was that first election like? Were you opposed?

Dar’Shun Kendrick: [00:14:09] I was. So, I had four other people was—and my district is largely democratic. So, obviously—general. But I did have four other people in the primary. It is somebody who is very active in the Democratic Party. Somebody who had ran for this three times before. And there’s somebody who was very, very active that have supporters in Rockdale. But I’m just—so, I was the youngest. And so, every time the media printed something, they just ask it without at least letting you know for whatever reason.

Dar’Shun Kendrick: [00:14:53] But I, you know, knocked on doors. I have been involved in politics since I was 18. So, we have to like run a campaign. And so, I had a number of primary voters who were at least three times. And that’s when the primary—fly. It wasn’t in vain like it is now. So, it was a long, hot summer, a very long, hot summer. And I, you know, didn’t quite know how I was able to—start a law firm while knocking on doors. That still felt quite interesting in how I did it—business.

Mike Blake: [00:15:38] Well, let’s, in fact, talk about that, because, you know, one of the things that draws me to this conversation is, you know, where does running for office intersect with business, right? And both of you, in your case, you have a business and Colin has, you know, a career and neither of your post, they’re not designed to have you be a career politician in that respect. But I’m curious, as you are knocking on doors, do you think that that actually helped you kind of understand your market better, Dar’shun?

Dar’Shun Kendrick: [00:16:20] You know, I think it helped me not only to understand my market better, but just to broaden my understanding of just opinions and the issues facing Georgia in general. When I first ran for office, I was—at Rockdale County. And Rockdale County is that county who have very, very active supporters of commerce. And so, you know, on the campaign, so obviously, I was engaged with those two views. But it helped me that I did have a business background to sort of, I think, connect with people on the campaign trail at these retail or business centers.

Dar’Shun Kendrick: [00:17:06] And I am accused more than I would like about being one of the more full-business Democrats. But I think it served me well, because I am able to understand sort of the base of my calling, which is labor and balancing with the people that I represent, which are obviously founders of this. So, I definitely learned a lot about that market, but around Georgia issues as well. It was a really great opportunity to just meet people and hear different views. I really enjoyed the campaign. I know it’s hard, but I learned a lot of their stories.

Mike Blake: [00:17:47] So, Colin, my next questions for you is, you know, as you are preparing to run, have you had professional mentors or advisors in your life that maybe, you know, have helped you along the way to get to where you’ve been professionally? Did you also rely on them as you contemplated this political step? And if so, were they helpful? If not, then where did you kind of find that expertise?

Colin Ake: [00:18:11] Yeah, it’s a great question. So, you know, I tend to be the student of, you know, whatever world I’m going into. I worked with a bunch of different entrepreneurs from a bunch of different backgrounds and bunch different industries, right? And so, that’s taught me to take advice from the people who have experienced something before and go find people that can share something with me that, you know, is based off that experience. I certainly had conversations with business mentors or people that I worked with previously. I’m about running for office. I got encouragement to do so.

Colin Ake: [00:18:45] But of course, you know, if you’ve not run a campaign, you generally go well. But I’ve never run a campaign and that’s kind of, you know, where that stops. I had some help from some friends that had experienced parsing data and find someone that they can parse data well. And go grab some voter data and, you know, data’s data. You got to know what you’re looking for, but once you know what you’re looking for, it’s fairly easy to pull together a strategy.

Mike Blake: [00:19:13] Indeed, I’ve heard that superior command of data was a big factor in enabling the president to win in 2016, right? It wasn’t whether he’s a better candidate or not, but this was a lot of analysis. And I think there’s some truth to this that he and his team just paid more attention and just did better with parsing data.

Colin Ake: [00:19:36] My experience has been that the data certainly gives you an edge. And it helps inform whatever strategy you’re developing as a team. Dramatically different to run for president than it is to run for city council for the City of Woodstock.

Mike Blake: [00:19:49] Sure.

Colin Ake: [00:19:51] For the small business owners that are out there that are thinking about getting involved in local government, at either the local or the county or the state level, it’s really easy to not even be—you know, you don’t have to be a presidential level data parser to make a difference in a small race.

Mike Blake: [00:20:12] Yeah. And in fact, interestingly enough, there is one of these rare cases where a meaningful office was won by one vote, a Boston city council office, after their fourth recount was just decided by one vote with over 70,000 thousand votes involved. So-

Colin Ake: [00:20:30] That’s fairly narrow.

Mike Blake: [00:20:31] There’s probably going to be a lawsuit, too. One vote, you know, you got to believe that’s gonna be challenged, I would think. But still-

Colin Ake: [00:20:39] Hanging chad somewhere.

Mike Blake: [00:20:40] Yes. So, it does happen. So, Dar’shun, how about you? I suspect, but you tell me. I don’t want to put words in your mouth. What about your mentors and advisors? Have they been the same for you along the way in business as in politics or have you found that they’ve been different?

Dar’Shun Kendrick: [00:21:01] So, my sort of mentors in business have always been my parents. So, I grew up in an entrepreneurial household. So, I love business owners, but typically, minority female founders and Black-owned founders share sort of the challenges that they went through. So, my parents have kind of taught me a lot about business. And, you know, I have people that I sort of look up to. I wouldn’t say that I have a formal mentorship with anyone. And that’s probably because, believe it or not, I’m—about it. So, you know, I just had not gotten opportunity to ask somebody to do that mentorship. But I am because one of the things that I added to my success and firm is I just recently got a series of job life investment-

Dar’Shun Kendrick: [00:22:05] So, I am intentional about how people have been successful in the state for a very, very long time with that aspect of it. But political-wise, you know, as a politician, I value amongst anything else—good and anything like that is people who are persistent in their belief and that is true. So, one of the reasons that one of my best friends is a partner is because we are very, very truthful with one another. And because above all else, we are very persistent in our belief. So, for me, you know, I will look up to or admire anybody in the political world that is consistent in their belief and persistent about it.

Mike Blake: [00:22:59] So, you’ve been in public service now for a decade. Really remarkable. And which means you’ve won five elections. Again, remarkable. How have you found that’s impacted your legal practice and your consulting practice?

Dar’Shun Kendrick: [00:23:20] So, obviously, in the beginning, since I was an overnight candidate, from a law firm perspective, I wasn’t prepared to be a full-blown candidate. So, I think that was the hardest time because I didn’t have the preparation. I literally went from a private citizen to a full-blown candidate overnight. So, those early years are very, very rare. I’ve done a very good job, indeed, of managing it.

Dar’Shun Kendrick: [00:23:54] And so, one of the things that I do, particularly during this upcoming legislative session, is I’m very, very good about saying no. Obviously, I have about 31,000 followers on this and everybody, you know, wants to pick my brain or hear a story or just advice about this. And I just say, “Hey, listen, I’m very good about saying no.” But the other thing is I try to focus on policies that I have an expertise into it, which is capital label, security work, investment, strategies, and things like that.

Dar’Shun Kendrick: [00:24:32] So, it makes the work a little, not only more fun or more engaging, but a little easier to just pass the learning curve as you’re not spending as much time on it, you’re just focused on things that you really couldn’t deal with. So, over the years, I’ve been able to really find that balance. And I think that it served not only me will, but the State of Georgia will to have somebody focusing on policies that is also a part of their day job.

Mike Blake: [00:25:06] And Colin, how about you? You haven’t been in service quite as long, but it looks certainly long enough to have an impact. How have you found that’s impacted your career?

Colin Ake: [00:25:13] Yeah. It’s got a time impact for sure. You know, juggling multiple responsibilities is a challenge. You have to be very good about saying no.

Mike Blake: [00:25:25] And you’re moonlighting. Both of you are basically moonlighting when it comes down to it.

Colin Ake: [00:25:28] And, you know, there’s beauty and there’s challenge in citizen legislature and in citizen governance, but there’s balance that comes from having those multiple perspectives and experience. You have to find things that are important to you and prioritize them. You have to say no to a lot of things. People ask me what my hobbies are. My hobby is serving the citizens. You know, there are no other hobbies.

Colin Ake: [00:25:53] I’ve got a family, I’ve got a real job, and I’ve got an elected office. And that’s the majority of my time. So, you know, it changes things because it gives you different perspectives on life. You know, we don’t manage a budget anywhere near the size that Dar’shun deals with. This is, you know, at the city level, it’s a much smaller world. You know, our form of government, we have a city manager that’s full-time, essentially the CEO.

Colin Ake: [00:26:25] And we act as, you know, kind of a part-time board. But there are infinite subjects at any point time you can go learn a lot about, right? There are people who have built their careers off of public safety response, out of public works, out of community development. And to be a student of each of those games, enough where you’re informed, but not enough where you’re unable to focus on other things as, you know, you just have to juggle it.

Mike Blake: [00:26:50] So, the question I want to ask both of you, I’ll give Colin first crack at this, is there’s what I would call a romantic notion out there. And I used to have this. I’ve moved away from this view myself. But there’s a romantic notion that if you could just run government the way you’d run a private business, everything would just be hunky dory. And I’m not sure that our attempts to do that have worked out well, but I’m willing to be educated otherwise. Colin, in your experience, is that a realistic expectation? Is it partially realistic? Where do you kind of come down on that?

Colin Ake: [00:27:30] I’m going to say and I am making up an answer on the spot here. I think it depends on the level of government. Local government, small municipality is dramatically different from large municipality, it’s dramatically different from county government, and dramatically different from state government, which none of that, you know, is nearly as complex as the federal government. When you’re in a small municipality or, you know, we’re just over 30,000 people, it’s growing fast, there are elements that certainly translate.

Colin Ake: [00:28:05] You have HR challenges, you have budget challenges. So, there’s elements that translate. I don’t think it’s necessarily the same, right? Because you’re dealing with a lot of things like social contracts between neighbors and zoning issues that are really personal for people and really come down to, you know, interpretation of and belief in basic rights and principles. And so, there’s elements that translate, there’s elements that don’t translate even at the local level. But I don’t know if at the local level there’s more of it or less of it. What’s your your thought, Dar’shun?

Mike Blake: [00:28:43] Dar’shun, where do you come down on this?

Dar’Shun Kendrick: [00:28:46] Yeah. So, it’s interesting. I just had finished going to a retreat with the technology advancements in Georgia. And my colleague, Joe, does a lot of technology work. He said, when he first got elected, which was last year, he said, “I have the misconception that government is—like a business. And boy, did I get a big surprise?” And I think if that is right and that—the problem with running government like a business is that their end goal is different, right?

Dar’Shun Kendrick: [00:29:20] So, for businesses, this is representing corporations like I do, their first responsibility is a job upholder, which is to make profits, right? That is the end goal. There is the fiduciary duty that’s involved there. With government, obviously, it’s very, very different. The end goal is uphold constitution, improving for the public safety and welfare of their citizens. So, I think, the common point, you are going to have some-

Dar’Shun Kendrick: [00:29:53] You know, sometimes, when it works well, like under Georgia, we have a 26-billion dollar budget and we are not allowed to print money or borrow money like the federal government is. So, every year, we have to balance our budget like I effectively—but at the same time, you know, we were making those various techs and things that the priorities are going to be very, very different. Because it is a government entity, I suppose they have really different budgeting.

Mike Blake: [00:30:23] You know, that’s an interesting point. I want to kind of underscore something that in terms of that capacity to borrow. And in fact, most private businesses can borrow at some point, right? Even if you’re a sole practitioner, you could put a $20000 Mac Pro on your credit card if you wanted to. I’m not sure what you’d do with it, but you could certainly do that. Whereas, you know, as you said, if you’re not in the federal government, generally speaking, there is no borrowing capacity. You balance the budget, end of discussion or you just run out of money.

Dar’Shun Kendrick: [00:31:03] Yeah. And, you know, that’s one of the things that obviously, the—this upcoming legislative session. And those conversation is just going to be different than if I was having a conversation with a board that I represented in the business.

Mike Blake: [00:31:22] So, has there been at some point, Dar’shun, where you’re concerned about there being a negative impact in your business? I mean, you know, we’re taught that we should be not discussing politics and business and generally speaking from the except of some very close business associates, I don’t entertain that discussion. You can’t avoid that because you’re out there and you got bumper stickers and you got signs on people’s house corners and so forth. You know, have there been points in which, you know, maybe that’s negatively impacted your business? Because there are people who look at you as a Democrat and say, “You know what, I’m just not going to do business with a Democrat, end of discussion.”

Dar’Shun Kendrick: [00:32:06] Yeah. That’s very possible. You know, I don’t have any empirical data that somebody has done that. But two things to your point. So, the first thing is I am an oddball and that I am not one of those people that think that we shouldn’t discuss policy. I think that’s the reason. Otherwise, because you don’t have those horrible sessions, that dinner on the table, so I am free and open—probably to my social media rather than dinner table.

Dar’Shun Kendrick: [00:32:39] So, I am probably an anomaly and that I think it will never be obviously the factors of—it had taught me to be more tolerant of other people’s opinions. And so, I just think holding it up doesn’t serve anybody. So, I’m definite in my belief in that respect. But the second thing is, as I mentioned before, I tend to be one that criticized on both sides. But particularly, for Democrats, because I do understand and relate to business owners and founders, what they might do for the underlying labor movement.

Dar’Shun Kendrick: [00:33:16] And that’s not to say that, you know, I’m against labor or anything like that. It’s just that I bring a different perspective. And so, I think knowing that and because of the things that I do as far as policy and collaborations and things like that, people might know that I’m a Democrat. But when it comes to business, particularly when it comes to technology, really, the people are more willing to—to me because of my support of businesses on the side.

Mike Blake: [00:33:55] So, let me switch gears here, because I think there’s an important question. And somebody out there is thinking about this question, I guarantee it. And that question is this. Colin, let me put it to you first. Somebody is thinking, “Wow. If I could just run for office, that would really help raise my profile.” What a great resume build or what a great thing to put on LinkedIn. And maybe it even gives you some other opportunities as well. And we’ll talk about conflicts of interest in a minute. But just generally speaking, you know, in your mind, is it worth running for office to help your career?

Colin Ake: [00:34:37] To me, no. There’s different opinions on this, obviously.

Mike Blake: [00:34:41] Right.

Colin Ake: [00:34:41] I think it’s worth running for office if you want to invest yourself in something and you want to learn a different perspective. Sure. I am sure there are examples of people who’ve gone into politics and their career has blossomed as a result. But at the local level, right? To me, I want counterparts on council, I want counterparts on the county commission that are dedicated to making the place that we live a better place, right?

Colin Ake: [00:35:12] And they come with a desire to invest their time and their resources and their energy in making those decisions that are never easy. And that’s a much better motivator to me than someone who’s there for them. It’s about a group. It’s about, you know, building consensus amongst people that don’t necessarily always see eye-to-eye and understanding nuances of issues and finding ways to come to agreements. Like that’s what it’s about. It’s not about, you know, personal gain.

Mike Blake: [00:35:50] Dar’shun, how about you? If somebody is thinking about running for office because they think it would help them personally or from a business perspective, is it worthwhile to have that thought process?

Dar’Shun Kendrick: [00:36:08] I think that is probably the biggest myth besides—that I have heard with respect to public office. Well, because you want to prove and just have the heart to prove it. That I will tell you personally, one of the biggest, most helpful things that people just adviced that I got before I entered the legislature or that before I entered the legislature, it came from my predecessor, who was a lawyer, a legislator.

Dar’Shun Kendrick: [00:36:40] And for those that don’t know, lawyer legislators are a dying breed. When I first got into office, we were about almost 25% of the general assembly and now, we’re down to about 17%. So, you might think that’s not bad, but it is what it is. So, that is—in the general assembly. But historically, we had less than that number. So, this lawyer legislator said it and put it ever so distinctly and it has been every bit of truth, is that it’s not a matter of if we will lose revenue and income in this position, it’s a matter of how much.

Mike Blake: [00:37:26] Okay.

Dar’Shun Kendrick: [00:37:27] And every time a lawyer legislator is thinking about running for office, even if they have zero motives, I always give them the same advice. Your revenue and you income will go down. It’s not a matter of if it is going to go down, the question is how much. And a lot of that had to do with the fact that, you know, we especially engage in policy making for the first few months of the year, right? But then, there’s also, you know, possible conflict of interest, particularly if you work with bigger firms that might come about.

Dar’Shun Kendrick: [00:38:04] People think we just work for four months out of the year. But I can tell you that I work no less than about three hours outside of session a week on legislature side. So, you know, you can be one of those legislators that just shows up and doesn’t advice anything and never say anything and just for like a check. I mean, that is, you know, “Why don’t you show up and vote for the budget?” Constitutionally, you’ve done what it is that you’re required to do on this constitution.

Dar’Shun Kendrick: [00:38:32] But most people, you know, don’t want to do that and they wanted to be re-elected, so it does become a full-time desk job during the session and then, the other part is the time we’re out, it’s more of a part-time job. So, I would caution anybody who thinks that this is better, it’s going to raise your brand, for sure, but if you think that is going to translate to dollars, I would just be cautious about this and that it’s going to have a correlation.

Mike Blake: [00:39:00] So, Dar’shun, you brought something up that I want to jump on, because I think it makes sense to talk about here. And it’s another critical question we got to cover, which is I have to imagine there are many opportunities, particularly in your position, for conflict of interest to arise. How do you manage that?

Dar’Shun Kendrick: [00:39:22] So, it actually is not as much of a conflict as you would think. So, because there are citizen legislators, right? Everybody knows we have a full-time job and we have to work. So, if I work for a bigger firm and I had a client of the firm that was advocated for a deal, that would be, of course, sort of conflict of interest right there. But because I’m a solo and because I am an attorney, you know, constitutionally, nobody can prevent me from practicing law, because just by law—right.

Dar’Shun Kendrick: [00:40:06] So, you know, I consult on reviews that we have and things like that because that’s literally my job as a lawyer. But there are sometimes that the legislature will specifically set the legislation that we can’t engage in particular firms, particularly AJC—which was cannabis bill that we passed for the—growing the cannabis. I have never in my mind used to being down there seeing legislation that specifically sits in what I call a poison pill.

Dar’Shun Kendrick: [00:40:47] And that it specifically prohibits legislators, former and current legislators, from investing in the cannabis business past 5% of an investment. And that was put in there for a long, drawn out reason that I know about. But anyway, it does prohibit. So, for example, I started an investment group that is going to participate in investing in the supply chain for cannabis. Well, I started the group, but I only serve as general counsel.

Dar’Shun Kendrick: [00:41:23] I’m not investing into it. I’m not putting any money into it. I’m not, you know, having input on the pitch process, in the investment process. Just because there is that specific proposition in there and I don’t want to be on the front page of AJC. So, there are times when the conflict is written into either the law or they probably prohibit us from engaging in it. But because, you know, it’s literally my profession, I’m generally allowed to sort of practice law and give advice, even though I might vote on this bill.

Mike Blake: [00:42:05] So, Colin, I’ll ask you a different question as we head to the end here. You know, how does sort of having a job and doing what you do alongside being a city councilman inform how you vote and how you propose and pursue policy?

Colin Ake: [00:42:29] It’s a good question. So, how does having a job help inform policy? So, I’m an entrepreneur turned academic, right? My day job is down at Georgia Tech. As such, I get access to a ton of people who are really smart in any given field. You know, we’re very fortunate to have a school of city and regional planning that is really good at pumping out good planners. There’s people down there that I can learn from on a technical topic. There’s a balance there, right? There’s obviously people with deep expertise that we can learn from and turn that into knowledge that informs policy.

Colin Ake: [00:43:18] There’s also a balance of, you know, when I’m at Georgia Tech, my Georgia Tech hat is on. And when I go off the clock there and go to City of Woodstock, my City of Woodstock hat has to be on. So, it’s a great question. For local policy, it’s different, I think, because local policy is often about things like sign code or zoning regulations or, you know, it gets into the minutiae really fast. And it’s not necessarily, you know, directly the same thing that I do with it at Georgia Tech. So, you know, I’ve got all sorts of ideas on an entrepreneurship policy or policy that could impact that world, the professional world that I deal with, but it’s not the same scale of policy that we deal with at the city level.

Mike Blake: [00:44:08] So, if I’m understanding correctly, in reality, you’re kind of in two parallel worlds that don’t necessarily meet a whole lot.

Colin Ake: [00:44:15] They don’t meet a whole lot.

Mike Blake: [00:44:18] Okay. We are running out of time here. And I want to thank you both so much for joining us. We could talk a lot longer about this, but we have to let you get back to serving your constituents. Dar’shun, how can people contact you if they may have an interest in running for office and want to learn more about it and why to do it and maybe why not to do it?

Dar’Shun Kendrick: [00:44:41] Yeah, sure. Anybody can follow me on social media. Beware, though, I am very vocal. So, just like yourself. But it’s just Dar’shun and Kendrick, D-A-R-S-H-U-N, Kendrick, K-E-N-D-R-I-C-K on Instagram and LinkedIn and Facebook and Twitter. So, people can, you know, invite me on there. I’m a millennial and I will give out my cellphone number, but that might be a little dangerous. So, if you can contact me on social media or either email me, just dkendrick@kendrickfor, F-O-R, georgia, Georgia—.com, then I will try my best to get back with you if we can if I’m not very, very busy. And short messages and questions.

Mike Blake: [00:45:33] Very good. And Colin, how about you?.

Colin Ake: [00:45:37] Email me at cake@woodstockga.gov, C-A-K-E, @woodstockga.gov. More than happy to lend some thoughts. My encouragement would be find a way to get involved in your local community and invest your time and energy somewhere near you. It doesn’t have to be an elected office, but we need people that are engaged, that are giving back, and that are trying to make the world a better place.

Mike Blake: [00:46:05] Okay, that’s gonna wrap it up for today’s program. I’d like to thank Dar’shun Kendrick and Colin Ake so much for joining us and sharing their expertise with us. We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next executive 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 so that we can help them. Once again, this is Mike Blake, our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: CPa, CPA firm, customer discovery, Dar'Shun Kendrick, data analytics, Dayton accounting, Dayton business advisory, Dayton CPA, Dayton CPA firm, Decision Vision, Georgia Tech, Mentors, Michael Blake, Mike Blake, political campaigns, political consulting, politics, running for political office

To Your Health With Dr. Jim Morrow: Episode 23, Childhood Asthma

December 18, 2019 by John Ray

childhood asthma Dr. Jim Morrow
North Fulton Studio
To Your Health With Dr. Jim Morrow: Episode 23, Childhood Asthma
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childhood asthma Dr. Jim Morrow
Dr. Jim Morrow

To Your Health With Dr. Jim Morrow:  Episode 23, Childhood Asthma

On this edition of “To Your Health with Dr. Jim Morrow,” Dr. Morrow childhood asthma: the symptoms to look for, the testing necessary for diagnosis, and prevention of environmental allergies which can cause this ailment. “To Your Health” is brought to you by Morrow Family Medicine, which brings the CARE  back to healthcare.

About Morrow Family Medicine and Dr. Jim Morrow

Morrow Family Medicine is an award-winning, state-of-the-art family practice with offices in Cumming and Milton, Georgia. The practice combines healthcare information technology with old-fashioned care to provide the type of care that many are in search of today. Two physicians, three physician assistants and two nurse practitioners are supported by a knowledgeable and friendly staff to make your visit to Morrow Family Medicine one that will remind you of the way healthcare should be.  At Morrow Family Medicine, we like to say we are “bringing the care back to healthcare!”  Morrow Family Medicine has been named the “Best of Forsyth” in Family Medicine in all five years of the award, is a three-time consecutive winner of the “Best of North Atlanta” by readers of Appen Media, and the 2019 winner of “Best of Life” in North Fulton County.

Dr. Jim Morrow, Morrow Family Medicine, and Host of “To Your Health With Dr. Jim Morrow”

childhood asthma Dr. Jim MorrowDr. Jim Morrow is the founder and CEO of Morrow Family Medicine. He has been a trailblazer and evangelist in the area of healthcare information technology, was named Physician IT Leader of the Year by HIMSS, a HIMSS Davies Award Winner, the Cumming-Forsyth Chamber of Commerce Steve Bloom Award Winner as Entrepreneur of the Year and he received a Phoenix Award as Community Leader of the Year from the Metro Atlanta Chamber of Commerce.  He is married to Peggie Morrow and together they founded the Forsyth BYOT Benefit, a charity in Forsyth County to support students in need of technology and devices. They have two Goldendoodles, a gaggle of grandchildren and enjoy life on and around Lake Lanier.

Facebook: https://www.facebook.com/MorrowFamMed/

LinkedIn: https://www.linkedin.com/company/7788088/admin/

Twitter: https://twitter.com/toyourhealthMD

The complete show archive of “To Your Health with Dr. Jim Morrow” addresses a wide range of health and wellness topics, and can be found at www.toyourhealthradio.com.

Dr. Morrow’s Show Notes

What is Childhood Asthma?

  • Asthma is a chronic disease that affects your airways.
    • Your airways are tubes that carry air in and out of your lungs. If you have asthma, the inside walls of your airways become sore and swollen.
    • In the United States, about 20 million people have asthma.
      • Nearly 9 million of them are children.
      • Children have smaller airways than adults, which makes asthma especially serious for them.
      • Children with asthma may experience wheezing, coughing, chest tightness, and trouble breathing, especially early in the morning or at night.
      • Many things can cause asthma, including
        • Allergens – mold, pollen, animals
        • Irritants – cigarette smoke, air pollution
        • Weather – cold air, changes in weather
        • Exercise
        • Infections – flu, common cold
      • When asthma symptoms become worse than usual, it is called an asthma attack.
      • Asthma is treated with two kinds of medicines:
        • quick-relief medicines to stop asthma symptoms and
        • long-term control medicines to prevent symptoms.

Symptoms of Childhood Asthma

  • Diagnosing asthma in children can be difficult.
    • Many children will go symptom-free for long periods of time before having an asthma attack.
    • The symptoms of asthma can be confused with those of other respiratory diseases.
    • And depending on your child’s age, it may be difficult for him or her to explain his or her symptoms.
  • Children with asthma may show the same symptoms as adults with asthma,
    • coughing,
    • wheezing and shortness of breath.
    • In some children, chronic cough may be the only symptom.
  • If your child has one or more of these common symptoms, make an appointment with an allergist / immunologist:
    • Coughing that is constant or made worse by viral infections, happens while your child is asleep or is triggered by exercise or cold air
    • Wheezing or whistling sound when your child exhales
    • Shortness of breath or rapid breathing, which may be associated with exercise
    • Chest tightness (a young child may say that his chest “hurts” or “feels funny”)
    • Fatigue (your child slows down or stops playing)
    • Problems feeding or grunting during feeding (infants)
    • Avoiding sports or social activities
    • Problems sleeping due to coughing or difficulty breathing
  • Asthma symptoms or flare-ups are most commonly caused by allergies.
    • Exposure to dust mites,
    • dander from dogs or cats,
    • pollen and other environmental allergens can trigger an asthma attack.
    • In some children, asthma can be caused by non-allergic triggers such as
      • cold air,
      • pollution or
    • Patterns in asthma symptoms are important and can help your doctor make a diagnosis.
      • Pay attention to when symptoms occur:
        • At night or early morning
        • During or after exercise
        • During certain seasons
        • After laughing or crying
        • When exposed to common asthma triggers

Diagnosing Asthma

  • It is often difficult, especially in young children, to be entirely certain that asthma is the diagnosis. After a careful physical examination, your pediatrician will need to ask you specific questions about your child’s health.
    • The information you give your pediatrician will help determine if your child has asthma.
    • Your pediatrician will need information about
      • Your child’s symptoms, such as wheezing, coughing, and shortness of breath
      • What triggers the symptoms or when the symptoms get worse
      • Medications that were tried and if they helped
      • Any family history of allergies or asthma
    • It is very important that your pediatrician test your child’s airway function.
      • Spirometry is the most common lung function test done.
      • It measures how much air is moved in and out of the lungs and how fast the air moves.
      • To get the best results, your child will be asked to follow very specific instructions.
      • Most children can do spirometry by age 6, though some preschoolers are able to perform the test at a younger age.
      • Your child will be asked to wear a nose clip to keep him or her from breathing through his or her nose during the test.
        • Your child will then be asked to take in a deep breath and to blow the air out into a mouthpiece that is connected to a computer.
        • The computer measures how much and how fast the air is blown out.
        • Your child will repeat the test at least two times to get their best, most consistent result.
        • This test can take up to 30 minutes to complete.
      • One of the tests measured during spirometry is your child’s peak flow.
        • The peak flow requires your child to blow out as hard and as fast as they can.
        • Sometimes it takes several visits to the office or lab to practice the test before your child can complete the test.
          • Coughing during the test is to be expected.
          • Tell your child that they may rest between blowing into the machine, in order to catch his or her breath.
          • Sometimes this test is repeated after your child inhales medication.
          • This test is called a post- bronchodilator or bronchodilator response test.
        • How can I help to make the breathing test less stressful for my child and me?
          • Be patient with your child during the test.
          • Explain to your child that the test does not hurt.
          • Explain to your child that the breathing test is being done to find out how to make their breathing better.
          • Schedule the test at a time of day that your child is usually not tired or hungry.
          • The staff will explain the test to you and your child. If you or your child does not understand, ask the staff to repeat the instructions.
          • If your child has a cold, sinus infection, or other reason that makes them unable to take the test, let your provider and the office or lab know as soon as possible. They can decide whether the test should be performed or rescheduled.
        • Some children do not find relief from their symptoms even after using medications.
          • If that is your child, your pediatrician may want to test your child for other conditions that can make asthma worse.
          • These conditions include
            • allergic rhinitis (hayfever),
            • sinusitis (sinus infection), and
            • gastroesophageal reflux disease (the process that causes heartburn).
          • It is important to remember that asthma is a complicated disease to diagnose, and the results of airway function testing may be normal even if your child has asthma.
            • Also keep in mind that not all children with repeated episodes of wheezing have asthma.
            • Some children are born with small lungs, and their air passages may get blocked by infections.
            • As their lungs grow they no longer wheeze after an infection. This type of wheezing usually occurs in children without a family history of asthma and in children whose mothers smoked during pregnancy.

Preventing Environmental Allergies and Asthma

  • Dust Mites
    • Since some airborne substances may trigger allergy or asthma symptoms, reducing contact with these substances early in life may delay or prevent allergy or asthma symptoms.
    • Research for this is clearest with dust mites.
    • If your child is at high risk of developing allergies, there are steps you can take to control dust mites.
      • Use zippered, “allergen-impermeable” covers on pillows and mattresses and wash bedding in hot water weekly.
      • Indoor humidity should be kept below 50%.
        • Mold in homes is often due to excessive moisture indoors, which can result from water damage due to flooding, leaky roofs, leaking pipes, or excessive humidity.
        • Repair any sources of water leakage.
        • Control indoor humidity by using exhaust fans in the bathrooms and kitchen, and adding a dehumidifier in areas with naturally high humidity.
        • Clean existing mold contamination with detergent and water.
        • Sometimes porous materials such as wallboards with mold contamination have to be replaced.
      • If possible, carpets and upholstered furniture should be removed from your infant’s bedroom.
    • Pets and Other Animals
      • The relationship between early life exposure to animals and the development of allergies and asthma is somewhat confusing and there are many factors to consider.
      • Previous evidence suggested that children exposed to animals early in life are more likely to develop allergies and asthma.
        • More recent research seems to show that early exposure to animals (cats and dogs in particular) may actually protect children from developing these diseases.
        • Newer research also suggests children raised on farms develop fewer allergies and asthma.
      • Tobacco Smoke
        • It is very important not to expose your children to tobacco smoke before or after birth.
        • Smoking during pregnancy increases the chance of your child wheezing during infancy.
        • Exposing children to secondhand smoke has also been shown to increase the development of asthma and other chronic respiratory illnesses.

When is Asthma an Emergency?

  • As a parent of a child with asthma, you want to avoid the emergency room (ER) as much as possible.
    • But it’s also important to know when going to the ER is the right choice.
  • Sometimes, kids with asthma need medical care very quickly.
    • If any of these symptoms happen, see your doctor immediately, go to the ER, or call an ambulance:
      • Your child has constant wheezing.
      • Your child uses quick-relief medicines (also called rescue or fast-acting medicines) repeatedly for severe flare-up symptoms that don’t go away after 15–20 minutes or return again quickly.
      • Your child has a lasting cough that doesn’t respond to inhaled quick-relief medicine.
      • There are changes in your child’s color, like bluish or gray lips and fingernails.
      • Your child has trouble talking and can’t speak in full sentences.
      • The areas below the ribs, between the ribs, and in the neck visibly pull in during inhalation (called retractions).

In Summary

  • Asthma is a chronic illness, but it doesn’t have to be a progressively debilitating disease.
  • An accurate diagnosis and an asthma action plan could mean the difference between your child sitting on the sidelines or fully participating in activities with family and friends. You, your child and your allergist / immunologist can work together to ensure that asthma doesn’t take control of your child’s quality of life.

Source:  familydoctor.org

 

Tagged With: Cumming doctor, Cumming family care, Cumming family doctor, Cumming family medicine, Cumming family physician, Cumming family practice, Cumming md, Cumming physician, Dr. Jim Morrow, environmental allergies, environmental allergy testing, Milton doctor, Milton family care, Milton family doctor, Milton family medicine, Milton family physician, Milton family practice, Milton md, Milton physician, Morrow Family Medicine, respiratory disease, respiratory illness

Frazier & Deeter’s Business Beat: James Dawson, Frazier & Deeter

December 18, 2019 by John Ray

Jim Dawson Frazier & Deeter
Business Beat
Frazier & Deeter's Business Beat: James Dawson, Frazier & Deeter
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Jim Dawson, Frazier & Deeter
Roger Lusby and Jim Dawson

Show Summary

James Dawson, Frazier & Deeter international tax partner, joins host Roger Lusby, CPA to address how middle market businesses will be affected by Brexit, the U.S.-China trade war, and changing global supply chain patterns. “Business Beat” is brought to you by Alpharetta CPA firm Frazier & Deeter.

James Dawson, Frazier & Deeter

James Dawson, Frazier & Deeter
Jim Dawson

James Dawson is an experienced international business and tax advisor in growing global enterprises. His focus is on both U.S. and foreign tax planning, structuring of international operations, cross border transactions, project management and coordination of services in foreign jurisdictions. James provides a full range of international tax and accounting services for both private and public companies. His experience includes tax efficient global supply chain management, international reorganization planning, due diligence, efficient planning for movement of both intellectual property and cash, acquisition planning, tax efficient inbound planning, maximization of export incentives, transfer pricing consultation and addressing both U.S. and local country controversy matters.

To find out more, go to the Frazier & Deeter website here, email James, or call 404-573-4136.

Frazier & Deeter

The Alpharetta office of Frazier & Deeter is home to a thriving CPA tax practice, a growing advisory practice and an Employee Benefit Plan Services group. CPAs and advisors in the Frazier & Deeter Alpharetta office serve clients across North Georgia and around the country with services such as personal tax planning, estate planning, business tax planning, business tax compliance, state and local tax planning, financial statement reviews, financial statement audits, employee benefit plan audits, internal audit outsourcing, cyber security, data privacy, SOX and other regulatory compliance, mergers and acquisitions and more. Alpharetta CPAs serve clients ranging from business owners and executives to large corporations.

Roger Lusby, Partner in Charge of Alpharetta office, Frazier & Deeter

Roger Lusby, host of Frazier & Deeter’s “Business Beat,” is an Alpharetta CPA and Alpharetta Office Managing Partner for Frazier & Deeter. He is also a member of the Tax Department in charge of coordinating tax and accounting services for our clientele. His responsibilities include a review of a variety of tax returns with an emphasis in the individual, estate, and corporate areas. Client assistance is also provided in the areas of financial planning, executive compensation and stock option planning, estate and succession planning, international planning (FBAR, SFOP), health care, real estate, manufacturing, technology and service companies.

You can find Frazier & Deeter on social media:

LinkedIn: https://www.linkedin.com/company/frazier-&-deeter-llc/
Facebook: https://www.facebook.com/FrazierDeeter
Twitter: https://twitter.com/frazierdeeter

An episode archive of Frazier & Deeter’s “Business Beat” can be found here.

Tagged With: CPA tax practice, Frazier Deeter, global minimum tax, global supply chain, international business tax advisor, International taxes, international trade, middle markets, new tax act, North Fulton Business Radio, North Fulton Studio, Supply Chain, tax penalties, trade tarrifs, u.s. trade war

Dean Robertson, Integrated Insurance Solutions, and Josh Bernstein, Josh Bernstein Media

December 18, 2019 by John Ray

Dean Robertson, Integrated Insurance Solutions
North Fulton Business Radio
Dean Robertson, Integrated Insurance Solutions, and Josh Bernstein, Josh Bernstein Media
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Dean Robertson, Integrated Insurance Solutions
John Ray, Dean Robertson, Josh Bernstein

North Fulton Business Radio, Episode 185: Dean Robertson, Integrated Insurance Solutions, and Josh Bernstein, Josh Bernstein Media

Unrecognized insurance needs for businesses and smart Google advertising were the topics featured on this edition of “North Fulton Business Radio” as Dean Robertson, Integrated Insurance Solutions, and Josh Bernstein, Josh Bernstein Media, joined the show. “North Fulton Business Radio” is hosted by John Ray and is broadcast from the North Fulton Business RadioX® studio inside Renasant Bank in Alpharetta.

Dean Robertson, Integrated Insurance Solutions

Dean Robertson, Integrated Insurance Solutions
Dean Robertson

Dean Robertson is President and CEO of Integrated Insurance Solutions, an independent insurance agency located in Johns Creek GA. He started the business in 2001 after an 11 year career as a PGA Professional. Integrated Insurance Solutions offers commercial insurance, providing a wide-range of protection for businesses and their subsidiaries under a single policy. Personal insurance products are offered as well, with protection for homes, automobiles and personal possessions, along with personal liability coverages. Integrated Insurance Solutions’ goal is to establish successful partnerships by understanding the needs and concerns of each client.

Dean still enjoys golf, tennis and the outdoors, his favorite times were coaching one of his three children’s sports over the years. Dean is an active Rotarian and a Paul Harris Fellow.

To learn more, go to the Integrated Insurance Solutions website, Email Dean directly, or call 770-667-3636.

Josh Bernstein, Josh Bernstein Media

Josh Bernstein

Josh Bernstein owns Josh Bernstein Media and is regarded as a leading independent Google Ads expert in Metro Atlanta. He receives annual certification as a Google Qualified Professional and is also a Google Partner. Josh has promoted an impressive list of brands including JCPenney, Bridgestone Golf, SCANA, Chick-fil-a, The Battery Atlanta/Atlanta Braves, Mitsubushi, Hooters and many others. He also specializes in Google display ads, YouTube video ads and social media advertising.

Josh has over 12 years experience primarily in the paid search space, and over 16 years in marketing, public relations and advertising.

To learn more, go to the Josh Bernstein Media website or email Josh directly.

 

North Fulton Business Radio” is broadcast from the North Fulton studio of Business RadioX®, located inside Renasant Bank in Alpharetta. 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 approximately $12.9 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: Dean Robertson, Google ad account, Google ad professional, google ads expert, google ads platform, google advertising account, google certification, Google search results, Integrated Insurance Solutions, key word bid, key words, North Fulton Business Radio, North Fulton Studio, paid per click adverstising, personal insurance, search engine optimization, SEO, website results

Family Business Radio, Episode 5: John Waid, C3-Corporate Culture Consulting

December 12, 2019 by John Ray

John Waid
Family Business Radio
Family Business Radio, Episode 5: John Waid, C3-Corporate Culture Consulting
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John Waid
Anthony Chen and John Waid

Family Business Radio, Episode 5: John Waid, C3-Corporate Culture Consulting

What’s the effect of corporate culture on the bottom line? On this episode of “Family Business Radio,” host Anthony Chen speaks with John Waid, Founder of C3-Corporate Culture Consulting, on this question and much more. “Family Business Radio” is broadcast from the North Fulton Studio of Business RadioX®.

John Waid, C3-Corporate Culture Consulting

John Waid

John Waid is founder of C3-Corporate Culture Consulting. C3 is a consultancy-based training and coaching company founded on the belief that the best companies, teams, and positions are based on best practice values, and behaviors that are aligned and lived by everyone. The company’s programs include Culture-Driven Companies, Leadership, Management, Coaching, Keynote, Negotiation, Sales, Sales Management, Communications, and Communication Process Model.

Prior to starting C3, John was a Senior Consultant with Krauthammer, a leadership management and behavior training firm based in Europe.

For more information visit the C3-Corporate Culture Consulting website. John can be reached by email, or call 404-915-3051.

Anthony Chen, Host of “Family Business Radio”

Anthony Chen

This show is sponsored and brought to you by Anthony Chen with Lighthouse Financial Network. Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. The main office address is 575 Broadhollow Rd. Melville, NY 11747. You can reach Anthony at 631-465-9090 ext 5075 or by email at anthonychen@lfnllc.com.

Anthony Chen started his career in financial services with MetLife in Buffalo, NY in 2008. Born and raised in Elmhurst, Queens, he considers himself a full-blooded New Yorker while now enjoying his Atlanta, GA home. Specializing in family businesses and their owners, Anthony works to protect what is most important to them. From preserving to creating wealth, Anthony partners with CPAs and attorneys to help address all of the concerns and help clients achieve their goals. By using a combination of financial products ranging from life, disability, and long term care insurance to many investment options through Royal Alliance. Anthony looks to be the eyes and ears for his client’s financial foundation. In his spare time, Anthony is an avid long-distance runner.

The complete show archive of “Family Business Radio” can be found at familybusinessradioshow.com.

Tagged With: consultancy-based training, corporate culture, Family Business, family business advisors, Family Business Radio, family business success story, healthy corporate culture, Leadership management, Winning Corporate Culture

Andy Kalajian, Fort Leadership and Sales Consulting, and Kevin Quirk, Harvest Connect

December 12, 2019 by John Ray

Andy Kalajian
North Fulton Business Radio
Andy Kalajian, Fort Leadership and Sales Consulting, and Kevin Quirk, Harvest Connect
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Andy Kalajian
John Ray, Kevin Quirk, and Andy Kalajian

North Fulton Business Radio, Episode 184: Andy Kalajian, Fort Leadership and Sales Consulting, and Kevin Quirk, Harvest Connect

On this edition of “North Fulton Business Radio,” Andy Kalajian, Fort Leadership and Sales Consulting discussed his executive coaching brand and the power of a positive mindset, while Kevin Quirk, Harvest Connect, explained how his company has made inroads in Georgia’s hemp industry. “North Fulton Business Radio” is hosted by John Ray and is broadcast from inside Renasant Bank in Alpharetta.

Andy Kalajian, Fort Leadership and Sales Consulting

Andy Kalajian
Andy Kalajian

Andy Kalajian has been a highly sought-after public speaker for more than 25 years. He has received public acclaim for his brand, EnTheos, which is Latin for “Spirit Within” and predecessor to the word Enthusiasm. Through Fort Leadership and Sales Consulting, Andy delivers powerful talks and lessons steeped in wisdom literature and practical application into busy lifestyles. As a certified John Maxwell coach, Andy helps professionals sharpen business skills, and offers Mastermind group teaching, and one-on-one executive coaching.

Andy is a native of Detroit, MI. In high school, he read such books as “Think and Grow Rich” by Napoleon Hill and “How to Win Friends and Influence People” by Dale Carnegie. He was awarded the prestigious Evans Scholarship, a full academic and leadership scholarship for golf caddies, to study at Michigan State University, where he earned a Bachelor’s of Science degree in Medical Technology. Andy started his professional career by blending his lifelong passion for medicine and public speaking with a position in Medical Sales, in Atlanta. He formerly held positions at MicroPort Orthopedics, Zimmer Biomet and ConforMIS.

Andy’s professional tagline, “Transformational thought in action,” reminds clients that they can permanently change the destiny of their life by changing the nature of their thoughts and actions.

To learn more, go to the Fort Leadership and Sales Consulting website, email Andy directly, or call 770-597-9005.

Kevin Quirk, Harvest Connect

Kevin Quirk

Kevin Quirk is Chief Executive Officer at Harvest Connect, a brand company focused on the hemp-derived CBD market. Harvest Connect’s entities include Georgia Good, Graceleaf, CBD Store and More, and Harvest Canopy, the medical marijuana division covering aspects of the cultivation, processing, retail and wholesale of CBD, hemp and medical marijuana.

Harvest Connect’s mission is to be the positive change agent for all things cannabis in the state of Georgia. The company works to bring ethical practices to the hemp industry, improve the lives of Georgians, create jobs, and give back to the community.

Kevin has more than 25 years experience in general, brand and financial management. He brings knowledge of FDA and USDA compliance through the founding and selling of an organic juice company. In addition, he has an extensive background in consumer packaged goods through former management roles at The Coca-Cola Company and Anheuser-Busch.

To learn more, go to the Harvest Connect website, email Kevin directly, or call 703-609-6643.

North Fulton Business Radio” is broadcast from the North Fulton studio of Business RadioX®, located inside Renasant Bank in Alpharetta. 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 approximately $12.9 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: Fort Leadership and Sales Consulting, Georgia farmers, Georgia Good, Georgia's medical marijuana law, Graceleaf, Harvest Connect, harvesting destiny, Hemp, Hemp industry, high commission sales, Kevin Quirk, leadership coaching, leadership training, Medical Marijuana, North Fulton Business Radio, North Fulton Studio, professional sales training, Public Speaker, public speaking, sales coaching, sales training, THC, Transformational thoughts

ProfitSense with Bill McDermott, Episode 3: Ken Madren, PermaTherm Inc.

December 12, 2019 by John Ray

ProfitSense with Bill McDermott
North Fulton Studio
ProfitSense with Bill McDermott, Episode 3: Ken Madren, PermaTherm Inc.
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ProfitSense with Bill McDermott
Bill McDermott and Ken Madren

ProfitSense with Bill McDermott, Episode 3: Ken Madren, PermaTherm Inc.

On this edition of “ProfitSense with Bill McDermott,” Ken Madren, CEO of PermaTherm, discusses the importance of managing by the numbers, maintaining a strong company culture, and much more. “ProfitSense with Bill McDermott” is broadcast from the North Fulton Studio of Business RadioX® in Alpharetta.

Ken Madren, PermaTherm Inc.

Ken Madren

Ken Madren is CEO of PermaTherm. Founded in 1988, PermaTherm is primarily a manufacturer of insulated metal panel products utilized in tightly controlled environments. The company manufactures other foam insulation products and materials for the packaging industry, and the general insulation markets. Clients are served in food production, cold storage, grow rooms, agricultural storage and commercial applications.

Before joining PermaTherm in 2005, Ken spent 13 years with mergers and acquisitions firm Forsch Partners, where he served as managing partner. He is also past President of Sandy Springs Youth Sports. The nonprofit directs a multi-sport youth recreation complex in partnership with the City of Sandy Springs.

For more information visit PermaTherm’s website. You can reach Ken by email or phone, 770-843-5363. Also connect with Ken on LinkedIn.

About Your Host, Bill McDermott

ProfitSense with Bill McDermott
Bill McDermott

Bill McDermott is Founder and CEO of McDermott Financial Solutions. After over three decades working for both national and community banks, Bill uses his expert knowledge to assist closely held companies with improving profitability, growing their business and finding financing. Bill is passionate about educating business owners about pertinent topics in the banking and finance arena.

He currently serves as Treasurer for the Atlanta Executive Forum and has held previous positions as board member for the Kennesaw State University Entrepreneurship Center and Gwinnett Habitat for Humanity and Treasurer for CEO NetWeavers. Bill is a graduate of Wake Forest University and he and his wife, Martha have called Atlanta home for over 40 years. Outside of work, Bill enjoys golf, traveling and gardening.

Connect with Bill on LinkedIn and Twitter and follow McDermott Financial Solutions on LinkedIn. The complete show archive for ProfitSense with Bill McDermott” can be found at profitsenseradio.com.

ProfitSense with Bill McDermott

Tagged With: construction projects, foam insulation products, general insulation markets, Insulated metal panels, Ken Madren, Leverage, North Fulton Business Radio, North Fulton Studio, packaging industry, prioritization planning, ProfitSense, ProfitSense with Bill McDermott, structural insulated panels

Decision Vision Episode 43: Should My Business Buy Real Estate? – An Interview with James Pitts, FRED – Fractional Real Estate Department

December 12, 2019 by John Ray

Decision Vision
Decision Vision
Decision Vision Episode 43: Should My Business Buy Real Estate? – An Interview with James Pitts, FRED - Fractional Real Estate Department
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should my business buy real estate?
Mike Blake and James Pitts

Decision Vision Episode 43: Should My Business Buy Real Estate? – An Interview with James Pitts, FRED – Fractional Real Estate Department

Should I lease my real estate or buy? What are the factors to consider if I do buy? Answers to these questions and much more come from James Pitts, FRED – Fractional Real Estate Department, on this edition of “Decision Vision.” Mike Blake is the host of “Decision Vision,” presented by Brady Ware & Company.

James Pitts, FRED – Fractional Real Estate Department

James Pitts

James Pitts is the CEO of FRED – Fractional Real Estate Department. James is a 20 year corporate real estate professional with experience at Jones Lang Lasalle, Grubb & Ellis, Johnson Controls (JCI) Global Workplace Solutions, and Sheraton Hotels. Most notably, James worked as Solutions Development Director at JCI Global Workplace Solutions where he was responsible for the design of global and regional corporate real estate outsourcing solutions for companies such as Motorola, Barclays, HP, SunTrust Banks, HSBC with annual spends of $50M-$500M.

FRED – Fractional Real Estate Department is a corporate real estate services firm designed to serve middle market companies that don’t have a real estate department but need one. For most businesses, real estate is the second or third highest cost after people, and a lease or purchase of real estate can be one of the longest commitments a company makes. These strategic decisions have cost and business risk implications but are typically left to managers with non-real estate backgrounds and outside real estate brokers to handle. The FRED team is made up of former heads or managers of corporate real estate for Coca Cola, E&Y, Wells Fargo & AT&T with 30+ years of experience each. FRED doesn’t do real estate transactions; they provide analysis, strategy, and manage the client’s process and brokers on behalf of the business. They are paid on a project, cost savings or retainer basis and promise to provide trustworthy real estate expertise.

For more information, go to their website or email James directly.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is 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.

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

should my business buy real estate?“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 here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show 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 service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Michael Blake: [00:00:19] And welcome to Decision Vision, a podcast giving you, the listener, a clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic, rather than making recommendations because everyone’s circumstances are different. We talk to subject matter experts about how they would recommend thinking about that decision. My name is Mike Blake and I’m your host for today’s program.

Michael Blake: [00:00:40] 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, which is where we are recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe in your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Michael Blake: [00:01:02] Today, we’re going to talk about, should your business buy its real estate. And I’m prompted to this question because it comes up a lot. And interestingly enough, I’m actually seeing it come up more now with technology companies under the thesis that a technology company, by acquiring hard assets in some way, makes itself less risky in front of an investor and potentially, even a bank financing candidate.

Michael Blake: [00:01:35] Now, I’m not a real estate expert at all. In fact, I’m a disaster at Monopoly. Both my kids wiped me out. I think that’s because I’m a technology guy, by the way. Because I think in SAS terms, I’m always by the utilities and the railroads because there’s a more kind of recurring revenue as opposed to, you know, idiosyncratic by landing in a hotel in Boardwalk. But the problem is, and spoiler alert, if you do that in Monopoly, you basically die a slow death to your children who do a victory dance over you, by the way.

Michael Blake: [00:02:04] So, don’t be like me in Monopoly. But anyway, real estate is a different animal. And I get asked about real estate a lot because I’m in the appraisal business, but I’m in the business appraisal business. Again, I don’t know anything about real estate. We lucked out when we got a good deal on our house. I truly mean that with no sense of humility whatsoever, that is as factual an assessment as I can offer.

Michael Blake: [00:02:29] But, you know, especially in a market where you have loose credit, you have banks that very much want to lend. And frankly, you know, we are, especially in Atlanta, a real estate town. America’s a real estate society in terms of investment. The allure of buying real estate can have a very strong pull, but I’m not sure that that’s necessarily the right thing to do for many companies. And so, that’s what I want to talk about this day.

Michael Blake: [00:02:57] Because I’ll bet in the sound of my voice with someone who is listening to this podcast that somebody right now is looking at, they’re either looking at buying real estate or they’re going, “Why the heck did I buy that real estate? Now, I’ve got this albatross around my neck.” You know, “What made me do that and how do I get out of that?” And like I said, I’m not an expert on this. And for those of you who have been listeners to this podcast, you know that I know not a lot about much. And so, I bring in subject matter experts to help us figure that out. And helping us today is my friend James Pitts, who is CEO of Fractional Real Estate Development or FRED. That has-

James Pitts: [00:03:39] Fractional Real Estate Department.

Michael Blake: [00:03:40] Department, sorry. Department, FRED, a corporate real estate services firm designed to serve middle market companies that don’t have a real estate department, but need one. FRED’s team is made up of former heads and managers of corporate real estate for Coca-Cola, Ernst & Young, Wells Fargo, and AT&T with 30-plus years of experience in each. FRED doesn’t do real estate transactions but rather, they provide analysis, strategy, and manage the client’s process and brokers on behalf of the business. They get paid on a per project basis, cost savings or retainer, and provide real estate expertise that can be trusted.

Michael Blake: [00:04:18] Now, James himself has a 20-year corporate real estate professional with Jones Lang LaSalle, Grubb & Ellis, Johnson Controls Global Workplace Solutions, and Sheraton Hotels. Most notably, James worked as solutions development director at JCI Global Workplace Solutions, where he was responsible for the design of global and regional corporate real estate outsourcing solutions for companies such as Motorola, Barclays, HP, SunTrust Banks, and HSBC with annual spends of $50 million to $500 million. So, yeah, he’s an expert. James, thanks so much for coming on the program.

James Pitts: [00:04:54] Thanks, Mike.

Michael Blake: [00:04:54] And in spite of my botching the name, I think that the name itself is just awesome. FRED. And nobody’s ever called a Fred anymore, right? You don’t meet very many Freds, right? But it’s sort of just short and to the point and sounds very authoritative. Now, did you have Fred in mind and then, you built the words around it or did you just put those words in papers, “Hey, that spells Fred.”.

James Pitts: [00:05:17] The latter.

Michael Blake: [00:05:17] Is it really?

James Pitts: [00:05:19] Mm hmm.

Michael Blake: [00:05:19] So, my guess is both parts of your brain are working at that point and then, sort of put it down a piece of paper for you. So, well done. Frankly, it’s easier to remember than Brady Ware. So, you’ll get more mileage on this podcast than I will most likely. So, James, you’re obviously the resident expert on this, not just here, but just about any place you go. Why do companies want to buy real estate when they’re not in the business of real estate?

James Pitts: [00:05:45] Well, they typically want to buy it as an investment. Some see it as a hedge against risk. Some don’t like the idea of paying rent and they want to build equity. All valid points, but just not that simple.

Michael Blake: [00:05:58] And how compelling is that argument that real estate is an investment?

James Pitts: [00:06:04] Real estate in the nature of itself is an investment. The question is whether it’s a good investment, depends on the goals and the needs of the investor and what their alternative investment options are. It’s a good investment if the company doesn’t have a better alternative for investing its money. Also, a company has to ask itself if it’s in the real estate business or if it’s really going to be in its core business because real estate can really be a distraction to the core business.

James Pitts: [00:06:31] And I’d like to give you a quick example. We had a client that we worked with for years, lost contact with. They went out and bought their own real estate, built a building, overpaid for land, went through a business downturn, suddenly, couldn’t use all of the real estate. They were upside down in the building and the land that they bought. And they were trying to lease out the space and they had other businesses in their space. And the CEO literally said, “I can’t get any work done because I have all of these tenants.” So, suddenly, their core business was being distracted by the real estate business.

Michael Blake: [00:07:06] And, you know, I think that’s important because on the outside looking in, if you’re not in real estate, it must look easy, right? You buy a property, you own it. You just sit back and you let the income roll in or let the savings roll in. And then, at some point, you sort of dispose of it. But as a homeowner and not a very good one, by the way, it’s amazing I still have all of my fingers, frankly, owning real estate, even very basic real estate is an effort and there’s further costs in upkeep, right? So, that doesn’t go away just because now, you own a factory or a warehouse or an office building, right?

James Pitts: [00:07:46] Well, yes. And so, when the roof has a leak, that’s on you. When you have the HBC system go out, that’s now on the business. So, suddenly, instead of making a phone call, you’re managing that, paying for that, checking on that, and just dealing with that.

Michael Blake: [00:08:02] So, we talked a little bit about what are the reasons for wanting to own real estate. What conditions typically lead to a company finding that real estate ownership is beneficial to them? What does a company kind of look like that is a good candidate for that?

James Pitts: [00:08:19] Well, for example, you have a specialized use. So, maybe you need land or maybe you need a certain building that unless you own it, the landlord will not let you perform your operations at a core to your business. Let’s say there’s a specialized use of land or buildings that may require large capital outlay to construct. For instance, a movie studio with a purpose-built sound stages, water stage, back lots, et cetera, will want to own the real estate.

James Pitts: [00:08:49] We had a client from South Korea that needed to test its rubber treads on a proving ground. Imagine a Jeep obstacle course, three acres next door. Industrial buildings aren’t designed to have like a three-acre playground next door. So, they literally had to buy a building actually and then, buy the land next door, and build their proving ground. Otherwise, they wanted to lease. They didn’t want to get into the ownership. But because of their use, no one would let them do that.

Michael Blake: [00:09:24] Right. So, at some point, you got to be the person that gives yourself permission to do it, right?

James Pitts: [00:09:28] Exactly.

Michael Blake: [00:09:29] So, you have to own it in that case.

James Pitts: [00:09:29] Exactly.

Michael Blake: [00:09:30] Right? So, you know, in home ownership, there’s a rule of thumb, the basis, unless you’re going to be in the property for five, six years, don’t buy because by the time you factor in all the transaction costs and so forth, it just doesn’t make any sense, right? Keep on renting. Is there a similar rule of thumb time frame in the commercial business area?

James Pitts: [00:09:56] Well, real estate cycles are typically seven to 10 years long. If you want to talk about that cycle, you have declining prices, rents and construction, then that leads to absorption of excess supply, that leads to low vacancy, which leads to increasing prices and rents, which leads to accelerate new construction. At some point, as you go around the circle, you get to oversupply and then, you have high vacancies, which is typically when you want to buy at that lower end of the cycle. Right now, in Atlanta, we’re at the high end of the cycle. So, it’s really a landlord and sellers market. So, from a real estate cycle, if you’re going to be in it, at least seven to 10 years. And we’ll really talk about that probably and some of your other questions about the life cycle of a business as well.

Michael Blake: [00:10:44] So, I’m going to go off script a little bit, but I know it’s a question I want to get out and I think it’s going to be of a lot of interest, which is, you know, as you walk in as the Fractional Real Estate Department for your clients, how much of that work is taking over the management of their properties and how much of it is reversing buyer’s remorse and helping them kind of liquidate, you know, “What have I done?” And sort of get rid of that. How often do you encounter that latter scenario?

James Pitts: [00:11:14] We’re working with a client right now that the previous CEO leased three times as much space as they need. They are actually laying off people right now while they spend an extra $250,000 a year in excess real estate costs. So, sometimes, the first thing you have to do is come in and do an analysis and then, come back with a strategy of how do we fix what you’ve inherited. And the previous CEO signed an eleven-year lease, so they still have eight years of pain.

Michael Blake: [00:11:44] And so, I’ll continue off the script, but I’ve got to follow that question up. So, you know, in some cases, can you then lease that out to try to get a—you know, or sublease, or something like that?

James Pitts: [00:11:56] You can sublet it. You can sell it. You can try to work with the landlord to get out of it. The goal for FRED is to keep people from making these sorts of costly mistakes.

Michael Blake: [00:12:07] Yeah.

James Pitts: [00:12:07] And then, reduce the expense, increase EBITDA, and reduce risk. But what you find, and I used to manage some of the Fortune 500 real estate portfolios when I was at JLL, is that real estate’s the hidden dragon on earnings. And people just don’t realize it. And that even big companies make huge mistakes. And then, that gets multiplied across portfolios. And then, everyone says, “Well, why are we doing this?” “Well, because everyone else did it.” And that’s what it’s always been. We’ve been in this position, in this location for 20 years. And it doesn’t really match anything that the business is doing today.

Michael Blake: [00:12:41] And do you find that businesses may think they know more about real estate than they do because they’re good at the business, but real estate is just different animal? Like I said, I’m a business appraiser, but I’m not a real estate appraiser. Is real estate just fundamentally a different animal?

James Pitts: [00:12:55] Everyone other than you believes that because they bought a house that they’re a real estate mogul. So, they believe that they know a lot more about real estate. It’s something they don’t deal with every three to five years. And when you think about it, real estate is one of those commitments that a company makes that goes three to five years out. Most businesses can’t see that far. And who knows what your strategy or your operations or your sale is going to be in three to five years. And the real estate does not care.

Michael Blake: [00:13:21] No, it doesn’t, right? I’ve never seen the real estates, “Oh, man. I’m sorry”, you know.

James Pitts: [00:13:26] Yeah, the landlords-

Michael Blake: [00:13:27] We’ll just let you out.

James Pitts: [00:13:28] Oh, yeah. Yeah. “Sorry, you guys had a downtime.”

Michael Blake: [00:13:30] Have to reset.

James Pitts: [00:13:32] Yeah.

Michael Blake: [00:13:32] So, getting back to the primary conversation. So, we’re in a cheap money cycle right now. Feds just lowered interest rates three times in the last three or four months or so. How much should that be a factor in driving the real estate purchase decision? I mean, on some level, obviously financing is cheaper, but is it that simple or does that need to kind of be mixed in with some other considerations?

James Pitts: [00:14:00] So, great question. Depends on the cycle. Even before you get to that, you really have to look at, does a company have excess cash that it can’t really invest back in its operations? Are they stable? Like have they grown to the point where they aren’t going to outgrow the space that they buy? Because why buy it if you’re gonna outgrow it? Now, suddenly, you’re in the real estate business. And, you know, are you in some type of low-margin business where you get a greater return by putting your money in the real estate?

James Pitts: [00:14:32] But let’s talk about cheap money. So, the cheap money of the late 2007s and 2008s actually caused the real estate bubble. So, that led to that balloon. People who bought early in the cycle did well. People who came at the end with that cheap money and bought at the height of the cycle, like we are now, when prices were inflated, got hurt. After the crash, money tightened considerably and people with cash came back and bought things cheaply. Sold as the market was coming back up. And now, we’re back toward the top of market. So, I’d say that the cheap money is there, but it could lead you into bad decisions.

Michael Blake: [00:15:13] Yeah. So, the cheap money could be a sign, right, that maybe the timing is off. And again, I think that that requires a specific real estate expertise to really understand and read the market, right? Certainly, I can’t do it. So, now, there’s an argument out there that companies make that they want to own their real estate because it’s a hedge against risk. How do you respond to that? Is that often a reasonable argument or is that just somebody talking themselves into doing a real estate deal?

James Pitts: [00:15:44] The latter.

Michael Blake: [00:15:45] Is it?

James Pitts: [00:15:45] It could be. So, it depends on what risk you’re worried about, right? So, there’s investment risk and there’s business risk. So, if you have a basket of equities, fixed income, cash alternatives, alternative investments, and real estate, you are diversified. Real estate typically lacks business downturns by six to eight months. So, if there’s a general drop in the economy, then the real estate will eventually fill that. And if the company bought the high of the market, you can suddenly be under water with regards to the value of your property in which you paid for it.

James Pitts: [00:16:18] The mortgage payment is still the same. The company may have to downsize, but your costs are still the same for your real estate portfolio. And it’s hard to sell asset in the downturn as well. So, if you’re trying to use—real estate does follow business cycles. So, it’s not necessarily a risk against that. And you also have to say, “If buying real estate makes your business operations riskier, you shouldn’t do it.” But if you’re at a point where purchasing the real estate, you know, lessens risk or doesn’t impact your risk profile, then you can look at that as a separate investment.

Michael Blake: [00:16:53] And I think what you’re talking about is the operational risk-

James Pitts: [00:16:56] Exactly.

Michael Blake: [00:16:56] … of the company, right?

James Pitts: [00:16:57] And correct me if I’m wrong, but the way I interpret what you just said is that one of the dangers is a business can undertake gymnastics that they would not normally undertake in order to get into the real estate game just because there’s cheap money and they feel like that there’s sort of a momentary opportunity. That sounds like a path to trouble.

James Pitts: [00:17:20] We see it a lot where once people get into their brain, “I’d like to own something and build equity”, they will do unnatural things to accomplish that that may not be in the best interest of the business. So, for instance, we had a service company growing rapidly up to 60 people. They were leasing 2,600 square feet. People were literally on top of one another. The owner said, “I want to go out and buy something.” And we said, “Well, you’re still growing. So, let’s lease 13,000 square feet for five years. That gives you plenty of room to grow. And then, once you get to a point where you’re stable and you’re not growing, maybe that’s when you buy a specialized site for your business.” And I said, “Plus, you’re at the top of the cycle. So, why would you buy now? There’s no equity in it.”

Michael Blake: [00:18:07] Right. Buy high, sell low is not a successful business strategy for most, right?

James Pitts: [00:18:12] Exactly.

Michael Blake: [00:18:13] And, you know, that gets to something that I encounter a lot, which is, as you know, I do a fair bit of work in the emerging tech sector, right? And, you know, to me, buying a building when you think you’re going to grow, right? And tech companies grow rapidly. They don’t add two or three people, right? If they don’t catch fire, it doesn’t matter. But once they catch fire, they’re adding people at a hundred a time, right?

James Pitts: [00:18:37] Right.

Michael Blake: [00:18:37] I wouldn’t say you can’t, but, boy, it’s got to be hard just to buy your way out of that problem every time through.

James Pitts: [00:18:46] Exactly. It’s like buying a 15-year old boy a pair of $400 sneakers. Right. You’ll be out of them in two months.

Michael Blake: [00:18:54] Right. Right.

James Pitts: [00:18:56] So, why do it?

Michael Blake: [00:18:56] Right. Yeah. Now, that’s fair. That’s fair. So, let me ask this a little bit off script. But what about the lease-to-own deals? Do you see a lot of those? And if so, do they change the dynamic at all?

James Pitts: [00:19:12] Oh, lease-to-own. I don’t see a lot of that. Not at a corporate level. You see that more so in a residential level-

Michael Blake: [00:19:21] Okay.

James Pitts: [00:19:21] … who would do a lease-to-own. But now, some people may lease and they’ll have an option to purchase later.

Michael Blake: [00:19:28] Yeah.

James Pitts: [00:19:29] You know, if they think that they’re gonna really like the space. But you don’t see too many of those.

Michael Blake: [00:19:35] Okay. What are some of the hidden costs owning the real estate?

James Pitts: [00:19:40] Oh, so those are capital improvements that you weren’t expecting. If you’re in a building and you decide you don’t need all of it and you have a vacancy, so now, you’re inefficient. Maybe you did a floating rate loan or a swap loan and rates are changing on you, and they’re not going in your direction. We actually had a client that the rates right now, like if they were to sell the building that they’re in, they’d owe $200,000 versus if the rate stayed where they used to be, they’d get a check for $300,000 of repairs and maintenance.

James Pitts: [00:20:17] We did a project for a large nonprofit here in Atlanta that owned the building with very little debt. They had about $5 million in deferred maintenance on the property. They were trying to figure out what they would do with the building. They were in about half of it, in 40,000 square feet with three tenants. They weren’t getting any new tenants. And we did a study and looked at what their other costs were, including the maintenance people that they had on staff. And they didn’t realize all the hidden cost in it.

James Pitts: [00:20:47] And we ended up selling the building for them, reducing their space. They got $2 million above what the market was offering. And then, by reducing their space and making them more efficient, we save them $3 million on their lease. So, they were like, “How did you make leasing a building cheaper than owning a building and put $5 million in our pocket?” Like, you know, it was a lot of financial engineering. Just looking at—that the real estate didn’t match your needs, you know, financially or even their people.

Michael Blake: [00:21:18] Well, and that goes to knowing the real estate market, right? And knowing what the market will bear and kind of what the terms are, and, you know, being able to use that as a negotiation point, right?

James Pitts: [00:21:30] Mm hmm.

Michael Blake: [00:21:30] I mean, again, you know, real estate is one of those things, it bears repeating, it looks easy, but it ain’t.

James Pitts: [00:21:38] It is really not.

Michael Blake: [00:21:40] So, how much should an opportunity to acquire real estate is sort of like as a good deal? How much does that drive or should it drive the discussion? You know, maybe your building is just going to be sold. Maybe there’s an estate situation, divorce situation, like that, and the son has got to sell, so it’s going to—if you can kind of do the deal quickly, it’s going to go for below fair market or market value, how much should that play into that lease-versus-buy decision?

James Pitts: [00:22:13] And I think we have to make sure that if your core business is your priority, as long as you check all the boxes and purchasing the building does not impact your core business, which is really your bread winner, then you can consider it, if it’s a great deal. I mean, if it’s a deal that if, for some reason, you need to sell it or lease it out and you could lease out, say, maybe 70 percent and that would easily cover your mortgage, you should consider it. You know, but if it’s an arbitrage opportunity, you should consider it. If it’s a great deal, you should always consider that.

Michael Blake: [00:22:49] Okay. And what about the argument that real estate can be used as a way to diversify the assets of the company or sometimes, the assets of the owner that is not necessarily that clearly separated from the company because it’s sort of one of the same? How compelling is that argument?

James Pitts: [00:23:08] So, that can be a sticky wicket. It can also be a great strategy. Some owner, company owners purchase building and lease it back to the company, and let the company expense the rent payments while paying off the mortgage on the property, then the owner can personally tap the built up equity in the property without taxation. If the owner expects to sell the company, then they may have to unwind or restructure their intertwined real estate in their business to make it attractive to the buyer.

James Pitts: [00:23:38] We were talking to a private equity firm out in California and the owner sold—they bought a business, the owner sold it to them, and it was 150,000 square foot warehouse. They only need 50,000. He had them as part of the deal, signed a 10-year lease for 150,000. So, they were suddenly stuck with three times as much space as they needed. And they were lamenting that they didn’t make him unwind that. So, you have to be clear, if you’re trying to exit your business and you now have some real estate obligations, it could affect your valuation.

Michael Blake: [00:24:14] Now, we tussled on this a little bit before, but I want to make sure that we address this explicitly. How important is the decision whether or not you need to kind of build your own custom real estate? We talked about customizing a building that you own. But now, I want to kind of move kind of, you know, a step further. What about kind of building your own real estate versus buying something that may or may not suit you on the existing market? How often do you encounter that? Does that build versus buy change the business discussion at all?

James Pitts: [00:24:48] So, it can. If your movie studio is custom-built, then it’s really important to buy and build your own. Back to that one client of ours who built their own building, they bought the land too expensive. Right now, construction costs are really high in Atlanta. But they’ve done that in 2010. Much better deal, cheaper land, cheaper construction costs. So, what we found is that given the costs of construction right now with the steel tariffs and just the land costs, there’s a lot of existing buildings that you can buy that are actually cheaper than in building right now in this particular part of the cycle.

Michael Blake: [00:25:31] And-

James Pitts: [00:25:32] And it just depends on where you are in the cycle-

Michael Blake: [00:25:33] Sure.

James Pitts: [00:25:35] … basically.

Michael Blake: [00:25:35] Okay. And I guess to some extent, too, if you can actually find someone to build the building, right, at the top of the cycle-

James Pitts: [00:25:40] Right.

Michael Blake: [00:25:40] … it’s-

James Pitts: [00:25:41] Everybody’s busy. Right.

Michael Blake: [00:25:42] Everybody’s busy. Right. So, you don’t even get out of radar screen unless you have a big job to begin with.

James Pitts: [00:25:47] And for one of our South Korean clients, we actually did a study of, do you buy a building or do you build it? And it came out, it would be easier to buy a building, existing building, renovate it, and do what you needed to do next door than to just build from the ground up.

Michael Blake: [00:26:08] I wonder if there’s kind of a conceptual benefit there, too. You know, my parents built a house and the thing that I learned from that process, I’ll never build a house because it seems to me that if you’re trying to imagine a structure from the ground up, there’s just nothing there today. And then, a year from now or two years, you know, there’s going to be a building. Just seems like so many things can go wrong and there’s not going to be the way that you visualized or to make them the way that you visualize them is going to be prohibitively expensive along the way.

James Pitts: [00:26:42] Depends on where you are in the cycle.

Michael Blake: [00:26:43] Yeah.

James Pitts: [00:26:44] But you have architects for that.

Michael Blake: [00:26:45] Yeah.

James Pitts: [00:26:45] Architects and civil engineers, and they can deliver exactly what you want.

Michael Blake: [00:26:49] So, are there any rules of thumb around a company’s finances in terms of how much cash to have in the bank or how profitable they are or how, I don’t know, sort of reliable their profitability is that maybe goes into your calculus as to whether or not you advise a client to buy versus lease?

James Pitts: [00:27:08] So, in general, real estate as an investment, I’ve read somewhere, returns about 7 to 8 percent of the long-term as an investment. If the business return—if your margins on your business are 20 percent, and why wouldn’t you invest that in your business, if you still have the opportunity to grow? So, people get, “Oh, I want own real estate and I’m gonna build up equity.” But if you can put that money into your people, if you can leave the risk of ownership of real estate to a landlord so that if you shrink or grow, you can go elsewhere versus now, I have a building and I have to do the capital improvements. And I have to pay the taxes on it and if I grow or shrink, it stays the same. So, there’s a business risk there.

Michael Blake: [00:27:59] You know, I want to come back to that or stay on that, actually, because I think that’s a very important point. You know, many of the drivers I see for buying real estate lie in something else other than directly operationally imperative to the business, right? Sometimes is. And I think we’ve covered that. You know, rule number one is make sure that that decision is driven by the operational imperative-

James Pitts: [00:28:24] Right.

Michael Blake: [00:28:24] … not because of something else that you want to do. And, you know, there’s no law that says, if you have excess cash or even excess borrowing power that you have to buy real estate with it, right?

James Pitts: [00:28:36] Right.

Michael Blake: [00:28:36] Or if you want to buy real estate, you know, buy into a read, right? You can get real estate exposure that way.

James Pitts: [00:28:42] Or buy an actual investment property that’s not attached to your—if you have extra cash, maybe you go and buy another real building that has tenants in it.

Michael Blake: [00:28:54] Yeah.

James Pitts: [00:28:54] And you manage that as a separate investment. But now, you sort of linked your business to your real estate and they’re intertwined. Let’s say you have partners in your business, there’s three or four partners, and Ted decides to leave the company. And now, you know, you have to unwind the real estate side of it and the business side of it. And maybe Ted didn’t want to get out of the real estate side or, you know, you have to make sure all the interests are aligned on the real estate side as well.

Michael Blake: [00:29:22] So, one other question I want to ask as we move towards wrapping up here is, a company can accidentally acquire real estate through an acquisition, right? And although I’m confident in most cases, a company isn’t necessarily surprised that it owns real estate, but I think that I’ve certainly seen the case where the acquirer spend so much time performing due diligence in the company that they feel that the real estate is a sort of a side gig or a throw away or something. And then, all of a sudden, you wind up owning it and maybe they should have done due diligence on that or sometimes, you’re even forced to buy the real estate. The seller will not sell unless you take the whole thing, business and real estate. How often do you see that? And if you do see that a lot, in your mind, is that a complicating factor in the M&A process?

James Pitts: [00:30:15] I definitely think it’s a complicating factor. Part of what FRED services we offer to come in as a part of that M&A process is to look at the real estate and say, “Here are you trailing obligations from a real estate perspective and here’s how you need to account for that, because either you’re going to end up with some excess cost or some real estate that you don’t need, and maybe, you should make that a part of the negotiation” versus “You take this”, and suddenly, you basically paid the seller twice. And that you paid them for the business, you paid them for the real estate. Now, you take the loss on the real estate. And that’s not a choice that you make. You actually came there for the business.

Michael Blake: [00:30:56] So, if somebody wants to learn more about this process, they have a question about their own real estate decision they’re looking at, how can they contact you?

James Pitts: [00:31:05] Please feel free to e-mail me at james.pitts, P-I-T-T-S like in Pittsburgh, @fred, F-R-E-D,-solution.com. And love to hear from you.

Michael Blake: [00:31:19] All right. And that’s going to wrap it up for today’s program. I’d like to thank James Pitts so much for joining us and sharing his expertise with us and telling us about his company, FRED, Fractional Real Estate Department. 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 so that we can help them. Once again, this is Mike Blake, our sponsor is Brady Ware. And this has been the Decision Vision podcast.

Tagged With: CPa, CPA firm, Dayton accounting, Dayton business advisory, Dayton CPA, Dayton CPA firm, Decision Vision, diversification, diversification into real estate, Fractional Real Estate Department, FRED, hidden costs of real estate, lease to own, Michael Blake, Mike Blake, real estate

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