Just a note that we have migrated the site to new hosting, so if you are still seeing the site here, go to clintgalliano.com, as I won’t be updating this one anymore and will eventually delete it.
Remember, if you have a real estate need, whether buying or selling, give me a call or shoot me an email. It doesn’t matter if you are outside of my area, I can connect you with a Rockstar Real Estate Agent!
Clint C. Galliano, REALTOR® 985.647.4479
Clint C. Galliano, a native of Lafourche Parish, has lived in the Houma-Thibodaux area for over 34 years and is currently a REALTOR® with Keller Williams Realty Bayou Partners in Houma, La. He has been involved with real estate investing since 2017 and hosts the local Real Estate Investment Association. Real Estate is his passion. Clint previously worked in drilling fluids and drilling fluids automation for 28 years. He lives in Bayou Blue with his wife and two daughters.
Howie Bick is the founder of The Analyst Handbook. The Analyst Handbook is a collection of 16 guides created to help current and aspiring Analysts advance their careers. Prior to founding The Analyst Handbook, Howie was a financial analyst.
Things To Keep In Mind When Starting A Business
Building or creating a business is an endeavor that incorporates a variety of different factors, and touches upon multiple different topics. Within the building of a business, there are lots of ideas to think about, like the amount of capital you may need in order to begin, the type of overhead or expenses you may have on a monthly basis, the type of market or demographic you’ll be catering to, and the type of competition that’s out there. The business landscape is one that requires business owners or managers to manage and handle a variety of tasks and wear multiple different hats at once. Keeping these things in mind, and having a good idea of what’s ahead, will be beneficial for anyone trying to build or create a business.
The Market or Demographic You’re Catering To
Each business or company has a particular demographic or market that they are looking to cater to. The market or demographic a company or business is looking to cater to, is often a group of people who have something in common, like a problem, an issue, or a desire they’re looking to solve. It can be something they need, desire, or want, but the business is looking to provide a solution or deliver the type of results their customers are looking for. Figuring out the market or demographic you’re looking to cater to, is a great place to start. That way, you can get an idea of the types of services they may be looking for, the type of products that may interest them, or the type of solutions they may be looking for. The way a business positions themselves, with their offerings to their customers, plays an important role in the way potential customers view them, and the way they’re viewed within the marketplace.
Competitive Advantages or Competitive Edges
Businesses that are able to carve out a particular niche, or area where they’re successful, often have a competitive edge, or a competitive advantage over the competition. A competitive edge is something that a business does better or more effectively than their competitors, or something that allows them to differentiate themselves within the marketplace. It’s an important element to any company or business, that’s looking to compete in a market where there are lots of options, and many parties looking to fulfill or satisfy their customers desires. Companies can develop competitive advantages through their prior experiences, the type of packages or services they offer to their competitors, or the type of knowledge or information they may have that others don’t. It’s something that’s important to keep in mind, when you’re evaluating whether you may be successful in a certain market, or whether you’re capable of differentiating yourself among the competition.
The Initial or Upfront Costs Associated With Starting
Every business requires a certain amount of investment, or capital in order to begin operating. Whether it’s getting a space and signing a lease, or acquiring the type of machinery you may need to operate, the costs associated with creating or building a business depend on the type of company you’re looking to build, and the types of products or services you plan to offer. It’s important to have a sense of the amount of capital or investment it may cost to create a business. It’s a tough situation when you decide to start a business and invest the capital or resources you do have, to later find out that you don’t have enough, or need to obtain more. By having an idea or a sense of the type of investment a certain business requires you can prepare or plan in advance or prior to creating the business and be better situated to develop or create the business you were looking to build.
The Monthly Costs or Expenditures
Similar to the amount of capital or investment you may need in order to start or build a business, having a sense or an idea of the types of costs or expenses that your business may accrue or cost on a monthly basis is an important metric to keep an eye on. The age-old business equation is revenue minus expenses equals profit. By having an idea of the type of expenses you may accrue, you’re able to get an idea of how much business you need to do, or how much revenue you need to generate in order to make money in a month. You’re also able to have an idea of how much capital or money you need to keep on hand to continue operating and continue running the business. The monthly costs or expenditures associated with a business is an important figure to keep an eye on, and to monitor during the operations of a business, and prior to starting or creating a business.
Personal Expenses Continue to Accrue
Whenever you’re starting something new, a new job, a new company, or a new business, it’s important to keep in mind that your personal expenses continue to accrue. In the beginning stages of building a business, it often takes a bit of time to get going, and to start making the type of money you’re looking to make. That’s why, it’s important to consider that even though you may be starting a new business or a new company, which is great and congratulations, that you’ll still need to find a way to pay bills and provide for yourself. It’s something that’s a bit of a struggle for a new business owner, who’s truly looking to build a business to support themselves, or to generate the type of income they’re looking for. Preparing and planning in advance is something that can be very beneficial to lightening the load and making the transition an easier process or ordeal for you financially.
Conclusion
Building a business is something that comes with lots of different ideas to keep in mind and brings in to play lots of different factors as well. The market or demographic you’re trying to cater to, is an important part of any business, as it’s the group of people or companies you’re looking to interact with and find a way to provide value to. The competitive edge or competitive advantage a company has, is important in a company’s efforts to stand out within a marketplace or find a way to differentiate itself among its competitors. By having a sense of how much capital or investment you might need to start a business, you can have an idea of whether you have enough to begin, or whether you need to wait longer, or figure out another way. Having that sense of how much investment it might require, can save you spending lots of your money on something that may not be feasible just yet, or a bit out of reach. The monthly costs or expenditures that a business requires, is important to know how much revenue you need to generate, and the type of capital or money you need to keep on hand in order to continue operating. A lot of what corporate finance is, is managing the finances behind a business, making sure that the business has what it needs to continue operating, and finding ways to continue to grow and develop the business as well. Even though you may be starting something new, and you need time to bring it into fruition, personal expenses are something that continue to accrue, and are important to keep in mind when building a business. All in all, creating a business is something that comes with lots of different factors, a lot more than the few we were able to highlight. We hoped this helped and shined light on some of the important factors to consider when starting or creating a business.
And, as always, let me know what you think in the comments. Ask questions, tell your story.
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In the span of these last five months I have had two meetings with my manager(s) and HR to let me know that due to market conditions, among other thing things, my position was being eliminated.
The first conversation was a choice between an early retirement package or working in another state. The second gave no options.
This is how I joined the ranks of the recently unemployed. It may or may not differ from yours, but that is not the point. I will lay out some guidelines to point you in the right direction, especially if you are feeling overwhelmed and not sure what to do.
What next?
“What next?” is the question you may be asking yourself. The first thing you should do is understand that this situation is not a reflection on you. This is not an indication of your self-worth. Especially at this time, thousands of people are being laid off.
Take a breather, relax, or, if possible, a mini-vacation. Let your mind recuperate from the stress.
Stay the Course or Change Direction?
The next step is to decide if you want to continue doing what you have been doing. Some of you have knowledge, skills, and talents that easily transfer to other industries while others may need to adapt their skills to new areas.
If needed, don’t be afraid to train for something new. We will discuss training in more detail below.
The point is, from my perspective, the oil and gas industry will not be booming soon, so don’t wait around for it to pick back up.
How Much Do I REALLY Need to Spend?
At this point, it is a good idea to review your finances. If you have not done so already, put together a personal balance sheet. This totals all of your assets and all of your liabilities. This will help you to visualize what resources you have and what debt you owe.
Then tally up all of your expenses. Look at this long and hard to decide what is essential and what can be cut or reduced. Examples can be premium movie channels, cable TV, any type of subscription that is not essential.
File for unemployment benefits if you are able. The weekly payment amount varies from state to state and also depending on other factors like recent salary. In my case, I am eligible for $247 per week in unemployment benefits.
There should also be an additional federal benefit of $600 per week on top of the state benefit due to the pandemic. Your state employment website should allow you to indicate that the pandemic was partially or wholly the cause for your being released.
Now What?
At this point, you should have a thorough understanding of where you are financially, what assets you have, what bills you owe, and a good idea on whether or not you will continue doing what you were doing or establish a career in a new industry.
If you are an IT Professional, it’s easy to transfer your capabilities to a different industry because the requirements are relatively similar, no matter what industry.
If your career was more specialized, say Drilling Fluids Technical Professional, that job description won’t show up in other industries.
Start to look at training opportunities for your new career choice. Your state employment website should have a section on training to prepare you for a different job. Pretty much every major job search engine provides you with a list of free training resources. Use them. Take advantage of the opportunity to add to your skill set.
You will get through this. You have the choice to be better for this. Seize control and be the best you can be!
If any of you readers need to talk, have questions, or need advice, please reach out to me here. (Link will take you to a contact form. Your information will not be shared or used to sell you anything.)
And, as always, let me know what you think in the comments. Ask questions, tell your story. If you like my posts, please share them with others and subscribe to this blog.
The oil and gas industry is in turmoil and service companies, in particular, are reducing their footprint in an attempt to weather the double-pronged attack of oil price wars and pandemic lockdowns.
Until yesterday, I worked for one of those companies, as some of you long-time readers may know.
I received a phone call from my manager, and HR, telling me that due to the current environment, my position was being eliminated.
It is not a bad thing. I only took the position back in January because I was unsure of what I wanted to do when my regional position was eliminated. I figured that they went through a lot of effort to keep me in the company and I didn’t have an immediate alternative plan, so I worked the job in Houston.
Then the pandemic hit and everyone was on lockdown. Luckily, I was able to continue working, from home.
BUT, during this time, I realized that I did not want to go back to Houston for work. We decided that I would continue working, as long as I could do it from home, and as soon as I was told that I needed to show up in Houston, I would resign.
It seems things have worked out for the best, because instead of just resigning, I am leaving with an early retirement severance package!
Because of this, I am now free to explore other opportunities…One will be to continue to be involved in real estate, but to a larger degree. I will continue to invest, but now I am pursuing a realtor’s license.
I will also be available to consult on any innovation projects that might come my way. This will allow me to flex my mental muscle “coming up with cool shit” as a colleague is fond of saying.
I will also look for small businesses that the owners are preparing to retire with no one to take them over. I will only pursue them if they are profitable. It should be easy to make a good deal on something like that when the options are sell at a discount or shut it down.
Merry Christmas! Happy Holidays! Happy Solstice! Happy Hanukkah! Joyous Kwanzaa! Yuletide Greetings! Joyeux Noël! Feliz Navidad! Season’s Greetings! Happy New Year! Joy! Celebrate! Be Merry! And most of all, wishing all of you who read this a new year full of peace and joy!
I’m sitting here between Christmas and New Year’s Day contemplating the future. To paraphrase Game of Thrones, “Change is Coming”.
As many of you know, we decided to start investing in real estate as a buffer to the ups and downs of my chosen industry, Oil and Gas Exploration. I was able to make it through some of those ups and downs in the past, maybe by luck, or because what I was working on was important. At one point, I did take a demotion and worked in the field (offshore, on the rigs, for about a year, but was able to move out of that role and on to greater things.
Which brings us to current times. Things have dipped again.
I usually take the last two to three weeks of the year off since I usually don’t use all of my vacation throughout the year. I was sitting at home and my supervisor called and asked if I was at the office. Since I wasn’t, he asked if I could come in. This told me that something was up because his office is over 100 miles away and if he is at my office, then it must be my turn.
And it was, but with a twist. I was offered a choice between an early retirement package or a rotational position working in Houston.
My darling wife and I contemplated the choices for a couple of days. Ultimately, we decided that it would be best to take the position in Houston. While we would be OK with me not working for a while, ultimately, it was our need of medical insurance that swayed our decision. Speaking of medical insurance, my next article will cover my experience in trying to get a quote for it and the fraud potential inherent in the Louisiana Medicaid Program.
Working a rotational job in Houston would mean finding a place to stay when working and time away from the family, but it also would mean that for two weeks out of every four, I would be off of work and free to do as I please.
This should allow for catching up on projects around the house and more opportunity to generate passive income.
The down side is that I will not be in town for some of the Bayou Real Estate Investor Networking meetings. I will continue to organize them, but will have to rely on other members to host when I cannot attend.
Additionally, if any of you live in or around North Houston / Humble / Kingwood and know of decent rentals at a good price, please contact me!
And, as always, let me know what you think in the comments. Ask questions, tell your story.
If you like my posts, please share them with others and subscribe to this blog.
Things I Think About... 