Check out our January newsletter!
We guide small business owners over rocky legal terrain so they can protect and grow their companies.
775.448.6070 WWW.SIERRACRESTLAW.COM
January 2022
FACING DOWN A BUSINESS CHALLENGE? You Might Be More Prepared Than You Think
One of my favorite pieces of business advice comes from an unlikely place: the children’s book series “Little Bear” by Else Holmelund Minarik. That series was a childhood favorite of mine, and I particularly liked one captivating story of the bear cub’s adventures in the snow. In the book, Little Bear wants to go out and play in the drifts, so his mom gives him a cap to wear over his ears. He goes out the door, then comes right back in.
“I’m still cold!” he says.
So, his mom wraps him in a trenchcoat and hustles him back outside. A minute later, he reappears at the door.
“Mom, I’m still cold!” he says.
The mother bear tucks his feet into boots, and when he comes back shivering again, she gives him gloves, then bundles him up in a scarf. Still, he isn’t satisfied! Finally, the mother bear looks down at her cub and says, “You know what, you’re a bear!” She takes off his hat, trenchcoat, gloves, and boots, then says, “Now go out and play.” Amazingly, he does, and with his thick coat of fur he’s just fine! This story is a great reminder that more often than not, we’re born with everything we need to succeed — in life and in business. We may not have fur, but we have our hearts, brains, and guts. This innate purpose, genius, and faith is enough to solve almost any business problem. Recently, I helped one of my clients realize this when he came to me for help with a business dispute. He was the co-owner of a corporation and had gotten into a disagreement with the other shareholders. They’d come to him with a proposal: Leave the company or buy them out and take over the business himself. This proposal was a big opportunity, but the client was scared. He didn’t have the money to buy out the other partners, and he didn’t believe he had the skills to raise it. But I thought differently. After
meeting with him, I saw his good heart, generosity, and engaging, personable manner.
“Look,” I told him, “I think that finding this money is going to be easy for you. You have so much inside yourself that it won’t be a problem.” That was my way of telling the client, “You’re a bear!” and sending him out into the snow. And just like Little Bear’s mother, I was right! When he tapped into his inner strength, he easily raised the money he needed to start fresh. This client didn’t really have a business problem. He had an opportunity disguised as a problem! If you’re facing a similar dilemma, the same could be true for you. You might have everything you need inside yourself already and just need a little help to see it. I’m happy to be the one to point it out! Call me today or visit SierraCrestLaw.com/Contact to schedule a consultation.
WWW.SIERRACRESTLAW.COM | 1
Published by Newsletter Pro • www.newsletterpro.com
How Much Are Your Favorite Pants Worth? One Man Estimated His at $54 Million
Everyone knows that the perfect pair of pants can be hard to come by, but are they worth $54 million? Administrative Judge Roy L. Pearson had a favorite pair of pants, but in 2007, he claimed that Custom Cleaners lost them and returned a completely different pair instead. It all began when Pearson took his pants to the Washington, D.C., dry cleaners for alterations worth $10.50. The pants were sent in error to the incorrect dry cleaner, so Pearson’s pickup was delayed by several
though, was the company’s failure to live up to their “Satisfaction Guaranteed” and “Same Day Service” signs in the window.
The media had a field day, joking about the case as a “pantsuit” and inspiring a “Law & Order” episode called “Bottomless.” Pearson seemed to relish the spectacle, calling his lawsuit “an awesome responsibility” in court and breaking down into tears on the stand. He also called a witness who compared the Chungs to Nazis. Even though the Chungs offered him a $12,000 settlement to make the case go away, Pearson persevered. He ultimately lost his case. At the end of the trial, the judge declared that no reasonable person would consider the signs at Custom Cleaners to be an unconditional promise — and also that Pearson had failed to prove the returned pants weren’t his. The Chungs ultimately recovered their court costs via a fundraiser, and Pearson lost his judicial appointment. Unsurprisingly, this prompted another lawsuit, which he also lost. In 2020, Pearson was suspended from practicing law for 90 days as a result of his actions in Pearson v. Chung . But for bringing new meaning to the phase “I’ll sue the pants off of you,” his place in legal history is secure.
days. Once the pants were returned, despite bearing all the correct tags and matching his receipt, Pearson declared that the pants were not his. When the dry cleaner refused his demand for $1,000 compensation, he decided it was time for legal action. Pearson originally sued the cleaner’s owners, Soo Chung, Jin Nam Chung, and Ki Y. Chung, for a whopping $67 million in damages but later reduced the claim to a far more reasonable $54 million. In his suit, Pearson requested $3 million for mental distress, $90,000 for a rental car to visit another dry cleaner, and $500,000 in attorney’s fees (Pearson represented himself). At the heart of his claim,
... continued from Page 4
a gift or a card to show you’re thinking about them. These gifts cost resources, but as Newswire reports, multiple studies show that customer gifts increase retention. Invest in retention tools. Staying in touch with your customers is the best way to keep them happy and remind them that you care. You can stay on top of this by doing the hard work of reaching out personally each month, but it’s easier and more efficient to invest in recurring communications like automated weekly emails and regularly printed newsletters. Make personalization possible. In order to retain customers, you must build quality relationships with them. This starts with knowing who they are, what they need, and how they interact with your company and your marketing. To figure out those key points, you should gather and interpret a lot of data, both online and off. You can do some of this data-gathering and calculating yourself (for example, you might consider calculating the lifetime value or LTV of each client), but hiring a third-party data analytics company will help you take your retention marketing to the next level. SAS, Alteryx, Kissmetrics, and InsightSquared are great options for small-business owners. Hire (or create) a retention expert. If you truly want to maximize your retention, you need to make it an integral part of your team’s marketing approach. Investing in specialized training for
your team is one way to do this. But you can also hire a retention expert or shift one of your existing team members’ roles to focus exclusively on managing and retaining clients. Yes, hiring is expensive, but remember — increasing customer retention by just 5% can increase profits by as much as 95%. That new team member will pay for themselves in no time! Retention marketing mindset shifts will be game- changers for your company. You can start with one of these tips or dive into all of them. Whatever feels right for you, if you try these ideas, it won’t be long before you’ll see the difference in your bottom line.
2 | 775.448.6070
Published by Newsletter Pro • www.newsletterpro.com
MEET THE TEAM
What was the best vacation you ever took and why? After I finished law school, my mom and I took a trip to Costa Rica. While Costa Rica had never been on my “bucket list,” I was pleasantly surprised by how diverse it is in terms of nature, climate, culture, and geography. We rented a car and went exploring. I love the outdoors, and we visited volcanoes, waterfalls, hot springs, beaches, and rainforests. Discovering each of these natural wonders with one of my favorite people made it a very special trip. What’s your favorite thing about your current job? My favorite thing about working as a litigation attorney at Sierra Crest Business Law Group is helping clients improve their lives. Although it’s a cliche, I think many attorneys, like me, choose law school because they genuinely like and want to help people. Having a legal problem as a business owner can seriously disrupt your business, your livelihood, and your family life. I enjoy giving clients effective and creative solutions to their legal problems so that they can thrive in their businesses and personal lives. What makes you proud of your family? My family is a family of immigrants. Each of my great- grandparents emigrated from Europe to Brazil. My parents emigrated from Brazil to the Unites States. My husband is from the former Yugoslavia. My sister- in-law is from Venezuela. Being an immigrant is an incredibly brave choice. It takes hard work, courage, and resilience to plunge headfirst into the unknown to create a better life. These qualities are the essence of what makes the entrepreneurs we serve successful, too. What’s the scariest thing you’ve ever done? Skiing! As someone who grew up in a tropical country and then in the flat Midwest, skiing was not something my family did. Yet I always wanted to learn Rita Greggio
and finally did as an adult. Still, each time I stand at the top of a run, it terrifies and thrills me. Despite being terrified, I force myself to ski, because life is too short to be limited by fear. Once you stop listening to the fear, you discover that there is no greater feeling than cruising down a mountain on a pair of skis. Which famous person in history would you want to spend the day with? The notorious RBG. Ruth Bader Ginsburg may not have been the first woman to serve on the Supreme Court, but she is certainly one of the most fascinating. One of my law professors clerked for a Supreme Court justice in the early ‘90s and once told me a story about being invited by Justice Ginsburg to attend a step-aerobics class — that just sounds like a fun time and is how I imagine our day would start. How many hours do you get to the airport before a flight? I think you mean minutes, and the answer is 59.
691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 WWW.SIERRACRESTLAW.COM
Should I Use An Online Simple Contract?
I want to talk about a question that we sometimes receive, which is can I, as a business owner, trust an online template agreement for my business? In other words, is it better for me to write my own agreement using an online service, or is it better for me to have an attorney prepare the agreement or at least review the agreement? That’s a great question. We see a lot of situations where people have created their own agreements using an online form — and things have gone wrong. Examples include an agreement that wasn’t in the name of the business, so the business owner got sued personally. Another example of an agreement that went wrong because it didn’t get reviewed is an agreement that automatically renewed without the business owner realizing it. Another situation we’ve seen is an agreement with non-competition language that doesn’t make any sense. We have also seen messed-up promissory notes prepared on the internet. I would like to discuss four reasons why you really want to have your agreements prepared or reviewed by an attorney rather than trying to cook up a form from the internet. First, even though the face dollar amount of a contract may be relatively low, the potential liability oftentimes exceeds that. So if something goes wrong, it’ll cost you more than you received under the agreement. Examples of that include service interruptions or delays or impossibility, something we’ve seen a lot with COVID. Other examples include promises that end up costing a lot of money to perform. Second, the attorney will see things that you don’t see. And I don’t mean that to be insulting. For example, when I go to the dentist, they look at my teeth and can tell me a story about what’s been happening to my teeth for the last 30 years, just because they can read every line or crevice on the teeth. When I go to my doctor and have them look at my ankle, they can speak volumes about what’s happening. When I go to the bike shop and have a mechanic look at my bicycle, they know where I’ve been riding, what I’ve been doing, and that I’ve been using my rear brakes too much. It’s just because of their experience in that specialized area. They just see things that are not visible to me as a layman. And it’s the same way with an attorney and a contract. You read a contract, you see some things. When the attorney reads the contract, they see a lot. And one of the things that they see are pitfalls — things that can go wrong and things where you could be in real trouble if not addressed. Another thing that they’ll see is opportunities, things that you can do to really improve your leverage in the deal. A third reason for having an attorney prepare or review your agreement, as opposed to using an online service, is that the attorney can customize the agreement to your company’s needs, situation, and even location. And believe it or not, where you do business will matter in terms of which laws will apply to your business.
Oftentimes with an online form, you may believe you need a specific type of agreement when in reality you need a totally different one. And so by going online, you’ve created a square peg that you’re trying to fit into a round hole. And from the very get-go, it was just the wrong type of agreement for your situation. Reason number four for having your contract reviewed by an attorney is that it’s a great way to start a relationship with an attorney. You can sort of test drive that person. You’ve got this agreement to be prepared or looked over. It won’t cost you a fortune. But the process of meeting an attorney and seeing how they do, and seeing how things click between you and the attorney, will pay big dividends. Later, when you have a question come up, instead of wondering what the answer to the question is, you can pick up the phone and call your attorney. And you’ve got someone who knows who you are — and who will be available to answer the phone. Over the long haul, if you’re having all of your business agreements prepared and reviewed by an attorney, that is the best way to use your money. You’ll save because of the investment you made to get the agreements done right, by a professional. If you avoid one legal problem down the road, the amount you save will exceed the amount you invest in preparing your contract professionally. Entering into a contract is a serious act and should be treated seriously by you as a professional, just like everything else you do in your business is serious business. If you have any questions about the process for reviewing a contract or the advantages of having your contract reviewed by an experienced business attorney, give us a call.
If you would like more information please scan the QR code.
691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 WWW.SIERRACRESTLAW.COM
TAKE A BREAK
A CRASH COURSE ON OFFSHORE FINANCE
Like the Panama Papers released in 2016, the Pandora Papers published in October 2021 expose the financial secrets of some of the world’s wealthiest people. In particular, they detail how the very rich use offshore finance to hide the extent of their wealth.
But what exactly is offshore finance? Why do people use it? Is it even legal to use?
Offshore finance gets its name from the island and coastal locations where the practice of creating foreign tax havens originated. Today, offshore finance refers to any financial instruments or assets kept in countries that are not the owner’s country of residence.
DEEP-FRIED NEW YEAR’S ‘COOKIES’
When an offshore account is created, it follows the financial regulations of the nation in which it is held. Countries commonly used for offshore finance often have stricter
What do you get when you mix a cookie and a doughnut? A portzelky! This traditional Mennonite “New Year’s cookie” is perfect for sharing.
privacy laws and allow the creation of shell companies. Shell companies are organizations that exist on paper only, without employees or offices, but act as a legal “shield” against taxation and creditors. (At least 19,000 shell companies exist in the Cayman Islands alone.) Simply having an offshore bank account or shell company is not illegal or even necessarily a sign of nefarious activity. Lawyers and accountants who deal in offshore finance often know exactly how to use the law to their clients’ advantage. They can also propose solutions that are technically legal. But concerns arise since the countries chosen to hold wealth offshore tend to prevent foreign governments from inspecting their accounts; this makes legal vetting next to impossible. A lack of transparency is the main point of contention, and it’s the reason why many people look at offshore finance negatively. Because the U.S. government cannot determine which assets are being held offshore, it cannot impose any taxes on them. Some parties also view hiding wealth offshore as a way of protecting a person’s assets from civil lawsuits, creditors, or investigations in the owner’s home country. It’s estimated that over $1 trillion is held in offshore accounts, and studies indicate that the bulk of this money is owned by the ultra-wealthy. Further, experts believe that the tax revenue lost to offshore finance equals about $800 billion per year worldwide. As to whether or not the Pandora Papers will inspire changes to the law, we’ll just have to wait and see.
Ingredients
• 2 tbsp yeast • 1/2 cup water, warmed • 1/2 cup and 1 tsp sugar, divided • 5 eggs, beaten • 1/4 cup butter, softened
• 2 1/2 cups milk, warmed • 1 1/2 tsp salt • 4 cups raisins • 7 cups flour • 4 cups canola oil
Directions
1. In a large bowl, combine yeast, water, and 1 tsp sugar. Wait 10 minutes. 2. Stir in remaining sugar, eggs, butter, milk, and salt. 3. Fold in the raisins and flour. Cover the bowl with plastic wrap. Let the dough rise for an hour. 4. In a high-sided pot or deep fryer, heat canola oil to 340 F. Line a plate with paper towels. 5. Drop a rounded tablespoon of dough into the oil. Fry until golden brown, then set aside on the plate. Poke the cookie with a toothpick. If the toothpick comes out clean, it’s cooked through! 6. Repeat until the batter is gone.
Inspired by MennoniteGirlsCanCook.ca
WWW.SIERRACRESTLAW.COM | 3
Published by Newsletter Pro • www.newsletterpro.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
IF SOMETHING IN YOUR BUSINESS IS KEEPING YOU UP AT NIGHT, CALL US AT 775-448-6070. REFERRALS ARE ALSO WELCOME.
691 SIERRA ROSE DR., SUITE B RENO, NV 89511
INSIDE THIS ISSUE
Jerry’s Advice for Tackling Business Challenges
1
The Case of the $54 Million Pants
2
Deep-Fried New Year’s ‘Cookies’ Offshore Finance 101
3
6 Retention Strategies That Actually Work
4
Stop Losing Clients Today! 6 Ways to Rethink Your Retention Marketing
Retention is crucial to your business. According to Investopedia, acquiring a new client can cost five times as much as retaining an existing one. And if that doesn’t convince you, research from Bain & Company and the Harvard Business School both show that a 5% increase in customer retention can boost profits by as much as 95%.
If you don’t have appropriate retention strategies in place, 2022 is the perfect time to make a change! Here are six ways to completely rethink your retention marketing that will save your team time and money. Reallocate your resources. Don’t just talk the retention talk — walk the walk! In order to truly change your company’s ways, you need to invest in retention and reallocate your resources. Provide your team with additional training on customer service. Important points to emphasize for retention (per Forbes magazine) include frequent and friendly customer communication, transparency, active listening, and the value of relationship-building. Create a fund for customer perks and gifts. Celebrating your clients allows you to give them attention when they might appreciate it most. If you know a customer who recently had a baby or is going through a difficult time, consider sending
Continued on Page 2 ...
4 | 775.448.6070
Published by Newsletter Pro • www.newsletterpro.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook Ebook Creator