Sierra Crest Business Law Group - May 2022

Sierra Crest Business Law Group - May 2022

We guide small business owners over rocky legal terrain so they can protect and grow their companies.

775.448.6070 WWW.SIERRACRESTLAW.COM

May 2022

GET CREATIVE — THE SMART WAY With My 95/5 Creativity Rule

I learned my first lesson about creativity in second grade. Our teacher was out that day, so we had a substitute, and she showed the class a film about a doughnut factory. I’d never seen how doughnuts were made before. I can still remember watching the doughnut-filled conveyor belts speeding by on the screen. After the film, the substitute asked us all to draw a picture of the factory and turn it in to her in exchange for a doughnut. The zooming conveyor belts sparked my imagination! I filled my page with doughnuts flying all over the place at high speed. I was proud of that picture. But when I took it up to the substitute’s desk, she frowned. “Your doughnuts are flying all over the place!” she said. “That’s not right. You need to stack them.” My little heart sank. I went back to my desk and redrew the picture to stack the donuts, but she’d taken all of the fun and creativity right out of the exercise. I think most of us had a moment like that in our growing-up years when we were starved for creativity. Maybe you were like me and an adult didn’t appreciate your artwork, or someone told you that you needed to pursue a career in business, finance, or medicine because your passion wouldn’t make enough money. I think it’s a tragedy! It’s nobody’s place to dampen your enthusiasm for art or the way you go about it. Like my painter friend says, we all have artistic talent inside us that should be encouraged and pursued. Everyone can create. It took me a while to learn this lesson (I’ve made a few comments to my own kids that I’d like to take back), but now I practice it wholeheartedly. It doesn’t just apply to kids. Creativity is an essential part of being a successful business owner. I encourage my clients to practice the 95/5 Rule of Creativity, which I learned from a mentor.

Like a painter, you have the ability to create something out of nothing for your business, but that takes a lot of creative energy. That’s why my mentor recommended using synthetic imagination 95% of the time. This could mean talking to other business owners to learn what works for them (marketing techniques, hiring practices, etc.), and then adapting it for your company, or paying for a class that will put you ahead on the knowledge curve. When you rely on synthetic imagination 95% of the time and use it to create systems and processes for your business, you can save up your mental energy for the 5% of the time when you really need to use raw creativity to find a solution that didn’t exist. Similarly, if you systematize 95% of your team’s work and give them clear instructions, you’ll free up their energy for the 5% of the time when they need to problem solve or exercise judgment. The 95/5 creativity rule inspired me to create an Entrepreneur Academy for my clients. You can learn everything we teach there on your own, but signing up for the academy will save you mental energy and accelerate your learning. Instead of figuring things out slowly over three years, you can learn it all from us and apply those principles now.

Fast-track your business today: Follow this QR to enroll in our Entrepreneur Academy. It’s creativity the smart way!

He explained that there are two different kinds of creativity.

1. Raw Creativity: Creating something from nothing. If you were a painter, this would be teaching yourself to paint from scratch without ever taking a class or learning the basics. 2. Synthetic Imagination: Taking known principles, concepts, and techniques and applying them to your situation in a creative way. To use the same painter metaphor, this would be painting original art using methods you learned from other painters.

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A Timeless and Influential Book It’s Time to Read or Reread This Classic

“How to Win Friends & Influence People” by Dale Carnegie has stood the test of time. Published in 1936, this book has sold more than 30 million copies worldwide. Relating to the key relationships of humans, the book embodies self-improvement, communication, relationship building, and compassion. Every working professional or individual rubbing elbows in their social group needs it in their toolbox! If you haven’t already experienced the influential and game-changing words of Dale Carnegie, it’s time to pick up a copy. If you’ve already read it, it’s time to give it another read to review and remember because there is still much value to unfold. Embedded within each page of this easy- to-read book are recommendations for creating, building upon, and improving successful and positive relationships within your life,

years ago, its life lessons and thought-provoking suggestions still apply today because, while technology, education, and infrastructure have all advanced, our basic human tendencies and the way we interact remain the same. “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you,” Dale Carnegie states. In “How to Win Friends & Influence People,” he explores the importance of putting the needs, interests, and values of others before your own and how to handle situations for the best possible outcome. It takes a deep dive into getting to know yourself before learning how to bond with others on a personal and/or professional level. This book, a brilliant study on human nature, will have you wondering why you didn’t read it sooner while reflecting on situations and interactions you could have handled differently. But most importantly, Carnegie’s pointers are sure to provide amazing insights while you learn to get along with just about anyone.

whether it be with friends, family members, coworkers, network professionals, or supervisors. Written and published more than 85

Back in 2005, a woman became imaginative and filed a claim against the owner of a Wendy’s franchise in San Jose, California, stating that she was served a bowl of chili with a human finger in it. Her allegation cost the fast-food chain millions in damages, and as it turns out, the woman’s claim was false. She was eventually arrested and convicted of attempting to extort Wendy’s. On March 25, 2005, Wendy’s was put in the spotlight under false allegations. A woman, Anna Ayala, visited a Wendy’s with her family and ordered a bowl of chili. She then made a large scene, claiming that she bit into something crunchy and discovered that it was the fingernail of a human finger inside her chili! All of the employees in that particular Wendy’s were astonished because they each had all 10 fingers still attached. Even more, all Wendy’s employees at other locations who handled raw materials still had all of their fingers. When a forensic investigation was done on the finger, it was found that the finger was not cooked at 170 degrees F for three hours, like the rest of the chili was. Eventually, it was discovered that Ayala had 13 different lawsuits open against different companies, and when her story began to waver, she dropped the lawsuit on April 12, 2005, claiming it was putting too much pressure on her. But Wendy’s, having already lost millions of dollars, was hard-pressed to prove this was not negligence on their part. They set up a tip line and offered $50,000 to anyone who had information on the owner of the finger. Eventually, after genetic testing, authorities discovered that the finger belonged to a Nevada man who was a coworker of Ayala’s husband; the man had recently lost a finger in an industrial accident and had given it to Ayala to settle a $50 debt. Both Ayala and her husband were charged and ordered to pay restitution. It was quite the finger feud!

For an Alleged Finger in Her Chili Woman Attempts to Sue Wendy’s

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MEET THE TEAM

Katlyn Mathy

1. Who has had the biggest impact on your career choice?

Professor Robert Kearney was the first person to seriously encourage me to become a lawyer. In college, I thought I wanted a numbers-related role, like an actuary or math teacher. I was a double major taking math and business courses, and I was lucky enough to land in Professor Kearney’s business law course. Professor Kearney would always ask me after class when (not if) I would take the LSAT, and where (not whether) I would attend law school. I thought he was joking at first, but despite my skepticism, Professor Kearney kept encouraging and motivating me to pursue a career practicing law. I have always respected Professor Kearney both as an attorney and as an educator, so his opinion meant a lot to me, and I eventually took the plunge. I know there are a lot of attorneys out there just like me who owe their careers to Professor Kearney. 2. What’s the scariest thing you’ve ever done, and why did you do it? Last summer, I hiked the Mount Rose Traverse in one day. Climbing over loose boulders to summit Snowflower Mountain, Church’s Peak, and Mount Rose was terrifying. I had to shed my “flatlander” status after living in the Midwest for over 30 years. 3. If you could do anything, besides what you’re doing now, what would you do? If I could do anything? I’d be a multilingual rapper who constantly reinvents myself, creates my own music and album art, and tours the world performing interactive shows.

4. What was your all-time favorite Halloween costume?

Halloween is a great outlet for me to quote Jim Carrey. Ace Ventura is my go-to costume.

5. Which family member makes the best food?

No question, my Oma (“Grandma” in German) makes the best food. She always remembers the most important ingredient: love. Seriously, though, the woman raised five kids and still feeds my hungry Opa (“Grandpa” in German) cooking from scratch.

6. What’s the best concert you’ve ever been to?

Seeing No Doubt perform was pure magic. No Doubt’s been on hiatus since 2013, but they got together for a few one-off shows in 2015. Gwen Stefani and the boys absolutely crushed it at Riot Fest. I love No Doubt almost as much as I love The Beatles, so witnessing their music live was something I’ll never forget. I was also lucky enough to see Merle Haggard perform at that Riot Fest (less than a year before he passed away).

691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 WWW.SIERRACRESTLAW.COM

Legal Things to Consider When Selling a Business

Are you thinking about selling your business? Here are the 4 things you absolutely have to get right when you’re selling your business.

The first thing you absolutely have to get right when you’re selling your business is getting paid. One way to do that is to sell your business for cash on the barrel head and take the money and you got paid. That’s the best thing. A lot of times, what makes the deal work, though, is that the seller agrees to be paid over time. When that happens, what you have to get right is

The last thing you absolutely have to get right when you sell your business is you have to get the right team together. And if you think about it, some team members are always going to be there, someone who’s going to value the business, someone who’s going to give the tax strategy, someone who’s going to give you legal strategy and guidance and assist with the documentation.

to make sure you’ve got collateral and you’ve got clear payment terms that are going to be enforceable so you know your buyer is going to pay you.

And you can tell yourself, “Well, I just won’t hire those people,” but that’s an illusion because, in reality, when you say that, what you’ve done is you’ve hired yourself to be the valuation expert, the

The second thing you absolutely have to get right when you sell your business is you need to

tax strategist, and the attorney. That’s why I’m encouraging you to pay attention to who needs to be on the team and make a thoughtful choice. If you’re going to wear the hat of one

make the appropriate disclosures of risks and of liabilities associated with your business. You do this for two reasons. One is that you don’t want to be accused

of those team members, you just need to be intentional and decide,

later of fraud or deception when your buyer stumbles on liabilities they didn’t appreciate beforehand. The second reason is because you want it to be clear that the buyer is taking over those risks and liabilities when they buy the business. It is important to make sure you’re working with your attorney to make really good disclosures about the business and its state of affairs so when you sell it, you can wash your hands and walk away. The third thing you absolutely need to get right when you sell your business is you need to make it crystal clear what is included in the sale and what is not included in the sale. For example, if you intend to keep the accounts receivable, that has to be clearly stated in the sale, and there needs to be a cutoff date where you’re keeping accounts receivable up to a certain date, and then the buyer is taking over the accounts receivable after that date. If you’re keeping account balances, perhaps you’re going to hold onto the money in the checking account, that’s fine, but it just needs to be crystal clear in the documentation for selling the business.

“I’ve got a good reason why I can wear the legal hat or the tax strategy hat.” And then just be honest with yourself. If there’s not a good reason for you to wear the hat of one of the professionals, then I would encourage you to find the right professional to wear that hat for you and get them working for you. So, again, remember the four things you absolutely need to get right when you sell your business: Make sure you get paid, make sure you’re giving the appropriate disclosures of risks and liabilities, make sure everything is crystal clear as to what is included in the deal, and finally, make sure you’ve got the right team to give you the legal, tax, valuation, and other advice you need to nail down the sale. If you have any questions about these things, we are happy to talk to you about them. You can contact us at the Sierra Crest Business Law Group.

691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 WWW.SIERRACRESTLAW.COM

TAKE A BREAK

THE ART OF QUIETING YOUR MIND BEFORE BED

All day long, thoughts run through your mind, and by the end of the day, your head is probably ready to explode. After all, it’s estimated that in 24 hours you can have between 60,000–80,000 thoughts. At some point, your brain needs a break, and that’s especially true before you try to go to bed. Here are some ways to quiet your mind, so you can get a full night’s sleep!

Keep your bed for sleeping.

If you aren’t sleeping, get out of bed! Getting in the habit of scrolling through your phone, watching

TV, reading, working, or even eating in bed teaches your brain that your bed is for things other than sleeping! If you find yourself tossing and turning, get out of bed and try a relaxing activity such as reading, journaling, listening to music, or meditating. When you get tired, try getting back in bed.

MOTHER’S DAY BRUNCH RAINBOW FRITTATA

Breathe deeply. Breathing exercises can not only help calm your mind and spirit, but they can lower your heart rate, which is especially beneficial in relieving stress or anxiety when things are upsetting you. Write it down. Instead of letting thoughts fill your mind right before bed (such as the next day’s tasks or any worries you have), set aside time before bed to write it out. Whether you are a fan of journaling, writing letters, or simply just listing out your problems, goals, and thoughts, grab a pen and paper and make it a nightly routine. This way, your thoughts will be freed before your head hits the pillow. Try a light snack. When you can’t sleep, the last thing that you want to do is eat something heavy. In fact, when you eat a large meal right before bed, your digestive system can become overwhelmed. But, studies have shown that eating a light carbohydrate snack such as crackers or popcorn when you can’t sleep may be helpful. Turn your room into a sleep haven. Keeping your bedroom neat, relaxing, and calm can help improve your sleep! Keep all televisions, computers, and screens out of the bedroom and furnish it with soft colors and textures that are tranquil and soothing to you. Pumping the brakes on worrisome thoughts racing through your mind can be tough, but trying these tips and tricks may earn you some relief and much needed sleep.

Impress Mom with this delicious breakfast recipe!

Ingredients

• Nonstick cooking spray • 1/4 cup sweet potato, diced • 1/4 cup yellow pepper, diced • 1/4 cup broccoli, chopped • 8 eggs

• Basil, thyme, salt, and pepper, to taste • 1/2 avocado, pitted, peeled, and thinly sliced • Cherry tomatoes, halved • Sriracha hot sauce (optional)

Directions

1. Preheat oven to 350 F and coat a cast-iron skillet with nonstick cooking spray. 2. In the skillet, cook sweet potatoes, yellow pepper, and broccoli over medium heat until soft. 3. In a medium bowl, whisk together eggs, basil, thyme, salt, and pepper. 4. Pour egg mixture into skillet with vegetables. Don’t stir but instead use a spatula to lift the edges of the egg mixture until it is evenly distributed. 5. Transfer mixture to oven. Bake for 5 minutes or until the dish sets. 6. Top with avocado and tomatoes. Drizzle Sriracha on top (if desired).

Inspired by EatingWell.com

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IF SOMETHING IN YOUR BUSINESS IS KEEPING YOU UP AT NIGHT, CALL US AT 775-448-6070. REFERRALS ARE ALSO WELCOME.

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INSIDE THIS ISSUE

1

A Business Owner’s Guide to Creativity

2

This Book Has Stood the Test of Time Liar, Liar, Fingers on Fire

3

Mother’s Day Brunch Rainbow Frittata 5 Solutions for Quality Sleep

4

A Blessing for Foster Families

Aiming to Keep Them Together Nonprofit Builds Free Homes for Licensed Foster Families

Studies show that over half of the children in foster care also have a sibling in the foster system. Of those children, more than 75% are separated. In North Carolina, Fostering Hopes joined forces with another nonprofit, H3 Collective, to build foster homes so they can keep large sibling groups together. Some of these homes are big enough to house five children, which is usually the maximum number of children the foster system allows under one roof. Alex Williams, the founder of Fostering Hopes, explained that the need for foster homes and foster parents is so high that, many times, children are sent out of their home county. He estimates that roughly 50% of the 20,000 children in North Carolina’s foster program will be placed outside of their home county. Adam Ponder of H3 Collective was proud to announce that Fostering Hopes and H3 are currently working together on a 3,600-square-foot, five-bedroom home for a licensed foster family, and the group hopes to have it ready for occupancy this summer.

counties away from their brothers and sisters — is traumatizing. The goal is to provide children a home where they feel comfortable and safe with enough room for all siblings. Once this initial build is complete, Fostering Hopes and H3 plan to build many more large foster homes in Western North Carolina. They’ve even made the goal of expanding into 10–15 counties in the western part of the state!

“The intention is to provide hope to children who

typically find themselves without it,” Alex Williams told Fox News. “We hope to keep siblings together, to keep children in their home communities, and to provide dedicated families or parents for children who need them the most.” There is no better feeling than helping children grow, thrive, and flourish. The efforts of Fostering Hopes and H3 Collective are inspiring, heartfelt, and are bound to make a difference in the lives of many children and families.

As if living in the foster program isn’t hard enough on a child, being packed up and moved across the state — sometimes

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