Bbr Volume 2 Issue 11

S S E N USI

B

DU

s O T W O H

S E I M M FOR

Learn the

HOW-TO Essentials for Business

A Reference for the

Rest of Us! Write Stellar Business E-mails Tips & Tricks See page 27.

Dress

for

SUCCESS See page 12.

Build Connections, LEARN TO NETWORK See page 8.

VOLUME II ISSUE XI

2008-2009 BBR STAFF Shannon Kung President

Christine Liu VP of Marketing

Jaeman Kim Finance Department

Benjamin Lo Editor-in-Chief

Julie Chen VP of Finance

Grace Chan Finance Department

Maya Lucaci-Vashee Assistant Editor

Erika Solanki VP of Creative Development

Amorette Jeng Creative Development Department

Cristina Carrillo Assistant Editor

Eric Park Marketing Department

Dmitry Shuster Staff Writer

Sunny Wong VP of Operations

Stefanie Ju Marketing Department

ABOUT US Bruin Business Review is a student-run online publication established in 2007 for the purpose of providing the UCLA student body with a convenient source of business news and career information. We publish every two weeks on the Internet and by subscription, allowing our content to be accessible to everyone. Our goal is to enrich our readers’ knowledge of the business world and the career options within it by presenting a wide range of business-related topics in a non-technical style. Our broad range of topics encompasses current business news, resume tips, employer and MBA program profiles, industry insight, and QUESTIONS, COMMENTS, CONCERNS? E-mail: [email protected] Mailing address: Bruin Business Review 118 Kerckhoff Hall 308 Westwood Plaza Los Angeles, CA 90024-1641

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May 2009

May 18 Commencement Tickets Available Time: Starting Monday May 18th to May 29th Location: Pick up guest tickets at the Central Ticketing Office for your guests. May 19 Workshop: How to Get a Job on Wall Street Time: 4 to 5 PM Location: A316 Murphy Hall, Large Conference Room Description: Workshop is presented by Sylvia Friedel, UCLA College Academic Counseling Assistant. Reserve your spot online at MyUcla.edu under “workshops.” May 20 Career Center JumpStart: MBA Time: 4 to 7 PM Location: UCLA Career Center, Third Floor, Conference Room Description: Representatives from several MBA Program Admissions Offices will be representing UCLA Anderson, UCI Merage, CSUN College of Business & Economics, CGU Brucker Graduate School of Management, Loyola Marymount, etc. A $20 fee will be charged to your BAR account upon registration. Register by visiting: career.ucla.edu/jumpstart. May 21 The Dashew Center & International Education Office: 1st Annual International Graduation Celebration Time: 6 to 8 PM Location: Bradley Hall, 3rd Floor Description: Free food and beverages. Come enjoy music, performances, the ceremony, and a reception. Reservations can be made on the Dashew Center’s website: www.internationalcenter.ucla.edu

May 26 Academic Workshop: How to Get Into a Great MBA Program Time: 5 PM Location: 203 Covel Commons Description: Sign-up online at MyUcla.edu under “workshops.” Academic Workshop: Public Speaking and Interviewing Skills Time: 5 PM Location: 203 Covel Commons Description: Sign-up online at MyUcla.edu under “workshops.” Undergraduate Business Society: Spring Banquet Cocktail Reception Time: 6:30 PM Location: Sunset Village Terrace Dinner Time: 7:30 PM Location: Covel Grand Horizons Ballroom Description: Great opportunity to network with firm representatives. Cocktail/ business attire requested. $15 per student. RSVP by Tuesday, My 19th to [email protected]. May 27 Budget Travel Workshop Time: 5 to 7 PM Location: Internship and International Opportunities Office of the Career Center, room 200, Strathmore Building. Academic Workshop: Internships and Career Preparation Time: 7 PM Location: 203 Covel Commons Description: Sign-up online at MyUcla.edu under “workshops.”

June 12 College of Letters and Sciences: 2009 Commencement Ceremony Academic Workshop: Business 101— Time: 5 PM Investment Banking Location: Pauley Pavilion Time: 7 PM Description: You need a ticket to attend! Location: 203 Covel Commons Description: Sign-up online at MyUcla.edu under “workshops.”

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TABLE OF

CONTENTS News of the Week: Industry Groups Work

5 With Obama to Cut Healthcare Costs 6 News Briefs 8 How to Network: Networking

How to Write Business E-mails: Tips for

10 Writing Business E-mails

12 How to Dress for Business: Dress for Success 16 Proper Business Etiquette 18 How to Utilize Resources on the Web 21 How to Start Your Own Business How to Invest in Your Future: Saving for

24 Retirement

26 How to Finance a Car 4

INDUSTRY GROUPS WORK WITH OBAMA TO tives, “We can’t continue down the same dangerous road we’ve been traveling for so many years…reform is not a luxury that can be postponed, but a necessity that cannot wait.” Rising health-care costs have cut into workers’ earnings and companies’ profits. Combined with more than 45 million uninsured Americans, these costs have finally pressured health-care providers to respond. Representatives from the health insurance industry said they were willing to terminate the practice of charging higher premiums to sick people if Congress adopted a comprehensive plan obliging all Americans to carry insurance.

CUT HEALTH CARE COSTS

Industry leaders addressed a letter to President Obama, stating that they would work with the administration to decrease the annual growth rate of health care spending by 1.5 percentage points. Executives of the Advanced Medical Technology Association, the American Medical Association, the American Hospital Association, the Pharmaceutical Research and Manufacturers of America, the Service Employees International Union, and America’s Health Insurance Plans signed the letter to advocate preventive care and streamline administraBy Julie Chen tive costs. These executives believe that large amounts Staff Writer of money could be saved by hard-line efforts to prevent obesity, manage chronic illnesses, cut back on unnecessary tests, and increase the use of information technolast Monday, a panel of leading health-care providers ogy. joined President Barack Obama to announce their promise to sharply reduce the growth of national President Obama is urging Congress to pass a reform bill spending. This pledge followed a White House meeting by the end of the year, and by showing a willingness to with representatives of hospitals, doctors, insurance trim costs, analysts believe that the industry is securing companies and drug makers. Vague statements were a place for itself at the bargaining table. Among Presimade about how a reduction would be achieved, such dent Obama’s many supporters are some of the groups as “common sense improvements in care delivery,” that previously helped block Pres. Bill Clinton’s efforts at “encouraging coordinated care” and “administrative health-care reform in 1993–1994. With newfound supsimplification.” Despite the fact that this promise lacks port, President Obama has high hopes that the pledge many specifics and cannot be easily enforced, President will build momentum for his more extensive ambition of Obama gives the pledge high prominence and much making health care accessible to all Americans. substance by calling the meeting a “watershed event.” If kept, the pledge would slow the overall growth of health spending. White House officials plan to save $2,500 a year for a family of four in the fifth year, and a total of $2 trillion for the nation in 10 years. Savings are predicted to come from slowing projected cost increases by a small percentage each year.

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Although the United States spends more on health care than any other country, half of all personal bankruptcies stem from health care expenses. At the White House event, President Obama told trade group representa-

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NEWSBRIEFS By Shannon Kung Senior Staff Writer

GENERAL MOTOR STOCK PLUMMETS General Motors Corporation (GM) stock fell more than 22 percent last Tuesday to a 76-year low. Stocks plunged following the news that six GM executives, including former GM Vice Chairman Bob Lutz, sold almost $315,000 in stocks and liquidated their remaining direct holdings in GM. This news just adds to the car maker’s trouble as GM, a historically known powerhouse in the Dow Jones Industrial Average, is now headed for bankruptcy or an out-of-court restructuring. The restructuring could wipe out current stockholders and flood markets with new shares to pay off creditors.

MEMORIAL DAY TRAVEL REBOUNDS Memorial Day travel is expected to rebound this year. Motorist group AAA predicts that 32.4 million Americans plan on travelling over the Memorial Day weekend, an increase of 1.5 percent from last year. This increase in travel is due to lower gas prices as well as travel bargains stemming from the recession. Retail gas prices averaged $2.28 per gallon, down 39.5 percent from last year when gas hit an all-time high of $4.11 per gallon. Another reason travel may be on the rise is there is pent-up demand, meaning that those who had to put off travelling last year are trying to do so now.

BANKS ISSUING STOCK Banks are racing to raise capital after results of the government’s 2-month long “stress test” program were released this month. The government warned that banks face a $75 billion capital shortfall, so banks are trying to raise additional funds to keep regulators happy. Morgan Stanley, Bank of America, and Wells Fargo all revealed plans to raise capital by selling common stock. Lenders U.S. Bancorp, Capital One, and BB&T are also going to issue stock in order to repay stock and warrants associated with the government-aided Troubled Asset Relief Program. With so many banks rushing to issue stocks, analysts fear that those banks that are not issuing stock may suffer from investors becoming overwhelmed.

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NEW ENGINE CALCULATES DATA Wolfram|Alpha, a new search engine set to launch on May 18, 2009, may change the way search engines are viewed. Unlike Google and other standard search engine sites, Wolfram|Alpha crunches data that a user inputs and spits out new data. For example, investors can compare two companies’ market performances side by side. Typing IBM versus Apple into Wolfram|Alpha generates graphs and tables that compare IBM and Apple over time. It also gives users the sources from which the data is generated. This new site would allow people to easily generate and compare data by simply inputting words into a search engine–like format.

NEW PREDICTION FOR SOCIAL SECURITY Just as many were beginning to think that the economy was slowly starting to recover, a report was released on Tuesday, April 14, revealing that retail sales fell by 1.1 percent in March. This drop follows February’s 0.1 percent gain. Excluding automotive, building materials, and gasoline, sales dropped 0.9 percent, which directly reverses the previous month’s 0.9 percent gain. Clothing retailers reported that sales fell less than expected thanks to spring promotions. In the general-merchandise retail industry, Wal-Mart reported that sales rose, while sales at Costco fell 5 percent. Improvements in other sectors – auto sales, home sales, home building – had raised optimism about the economy’s recovery. Both President Obama and Fed Chairman Ben Bernanke cited those improvements in separate speeches, but also warned of the dangers and difficulties that lie ahead. Bernanke pointed to the improvements as signs that the decline in economic activity may be slowing, but cautioned that the true indicator of economic recovery lies in the government’s ability to boost financial markets. President Obama warned that more jobs will be lost and more foreclosures will occur before a permanent economic rise occurs. The economy shrank by 6.3 percent in the last quarter of 2008, signifying the worst economic performance in the last quarter-century. It shrank at a 5 percent pace in the first quarter of 2009.

GOVERNMENT RUNS DEFICIT IN APRIL The United States government ran a $21 billion budget deficit last month. This is the first April in 26 years to have a budget shortfall, as April is usually bolstered by the tax receipts from taxpayers filing their returns. However, tax collection has fallen this year because of the economic recession and the government’s handling of the recession. Because of the recession, fewer people are working, which leads to a decrease in the amount of income tax revenue collected by the government. The deficit in April makes the total deficit for the first seven months of the fiscal year hit $802 billion. This figure is in contrast to the deficit of $153 billion reached during the same period last year.

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NETWORKING By Sunny Wong sions, networking and professional Senior Staff Writer events. UCLA’s career center often hosts various information sessions ith the current state of the econ- on various companies. To sign up for omy, it is now more important than one, login to BruinView and select ever to properly network and use the “Events and Workshops” tab. Be those connections to leverage your sure to also attend several of the career. It has been said many times Career Fairs that the UCLA Career before that the best jobs come from Center puts on. Sometimes, the referrals. According to the U.S. Bu- most difficult aspect of networking reau of Labor Statistics, 70 percent in these kinds of situations is apof jobs are found through network- proaching these successful profesing. sionals and knowing what types of Networking involves building and questions to developing a list of contacts you can ask. A basic later use for your advantage when approach is looking for a job or internship. The to simply ask key to successful networking is to be q u e s t i o n s the genuine. Avoid the common mistake about of jumping in immediately and ask- p r o f e s s i o n ing for a job, unless of course it is a because people often like close friend or family member. to talk about themselves. That way you can prove to them that you are a good listener The first step in the networking job and it allows search process is finding and build- you to see how your professional ing your network. Initial contacts goals align with theirs. Remember to should be friends, family, and do your homework. For instance, neighbors since you can be direct research the company beforehand and upfront about your desire for a and know what services or products job. They will also be most likely and they provide. Also, try to formulate willing to assist in your professional questions that pertain to the comaspirations. However, do not stop pany. Finally, bring a well-polished there. Reach out to former co- resume with you to the event. workers, bosses, teachers, and disUCLA’s career center offers a free tant relatives too. online resume service that provides The next avenues that you should feedback within five business days. consider include information ses-

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BUILDING YOUR NETWORK

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To learn more, visit: career.ucla.edu/ Students/Workshops/ OnlineResumeCritique.aspx Students also often overlook their campus alumni resources. UCLA’s Career Network, for instance, contains a database of thousands of UCLA alumni who have volunteered to provide career advice and information for fellow Bruins. Students can access this through the following link: http://www.uclalumni.net/ Ne t wo rk ingC ar e e r s / UCLACareerNetwork/ Students can create a list of up to 20 UCLA professionals they would like to contact at one time. Do not forget that we also have a top business school right here on campus, the Anderson Graduate School of Management. Many of the MBA students here are more than happy to answer questions about your career. If there is a specific industry or job function you’re interested in, it may be helpful to email the officer of an organization that focuses on that sector. A list of Anderson clubs and organizations can be found here: http:/www.anderson.ucla.edu/ x20377.xml

MAINTAINING YOUR NETWORK This is perhaps the most crucial aspect of networking. Most people never take the time to develop and extend their relationships after meeting their contacts. After any networking event, interview, or even dinner, be sure to obtain a business card and actually follow up. Call or email every contact that you meet, and take the time to thank them for their advice. It may be helpful to also remind them of something about the conversation that you found interesting. Finally, remind them of your networking objectives and provide information as to why you are the best candidate for the position. For example, send a follow-up email including a snippet of a conversation you found interesting and perhaps even reattach your resume.. Remember to keep them posted and send occasional emails, but do not go overboard. An email every two weeks or so should suffice. For instance, remind them that you are still in your job search and ask any new questions that might have arisen since the last time you’ve met.

for exams. If you want to do it properly, you cannot wait until the last minute. Spend a little time each day cultivating your network instead of “cramming” the last minute during the summer upon the realization that you still need an internship or job.

ONLINE NETWORKING

The Internet is also a great way to develop and maintain existing contacts. Consider registering for Linkedin, a professional-oriented social networking site that helps users reconnect with former and present colleagues. Unlike Facebook and MySpace, Linkedin takes a more proIt may be helpful to think of networking like working out or studying fessional approach in that people you add in your network are referred to as “connections” instead of “friends.” One of the advantages of Linkedin is that it tracks your connections, and reveals the connections of your connections, so there’s potential to find someone within your circle that may be of use. A

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way to improve your search visibility is to simply fill out your profile. The more items you list there, such as education, skills, and internships, the

more likely it is for you to be found. Also upload your address book, and see who else is on Linkedin. Twitter is also rapidly becoming a quick way to get more attention in the recruiting scene. Twitter is a micro-blogging site that limits status updates to 140 characters known as “Tweets.” These small updates can be about anything, but some users utilize Twitter to market their products through these “Tweets.” To attract the right recruiters, make sure you are creative and succinct when typing out your bio. With only 140 characters, you want to make the best first impression especially when recruiters primarily find potential candidates through keyword searches. Try to also get listed on justtweetit, a directory listing that lists other twitter users in specific i n d u st ri es . Fi n a lly , f o l lo w @JobAngels, a grassroots movement that helps people network and find jobs.

tips

By Dmitry Shuster Staff Writer

for writing

BUSINESS E-MAILS PROVIDE AN INFORMATIVE AND CONCISE SUBJECT LINE The subject line is critical as it alerts the recipient to the subject and content of the email. The goal is to make the subject line informative so that the recipient can quickly determine the purpose of the e-mail. At the same time, the subject should be short so as to prevent the reader from becoming lost or overlooking the e-mail entirely.

In the era of modern technology, e-mail is the quickest and most frequently preferred method of communication. However, the transition from regular mail to electronic mail (e-mail) also involves several changes in both the manner of writing and in the techniques that are utilized. Here are five techniques designed to help you write better and more effective business e-mails:

KEEP THE E-MAIL BRIEF AND TO THE POINT

The important thing to remember is that you are writing a business e-mail and not a novel. It should open with a simple greeting, for which a Dear Mr./Ms. Smith will suffice; remember to use the honorific Ms., not Miss or Mrs., as the neutral honorific for a female addressee whose marital status is unknown. The generally preferred punctuation after the greeting is a colon rather than a comma. Following the greeting, the body of the e-mail should consist of a concise body of text that clearly explains the purpose of the e-mail. If questions are posed to the reader, it is best to keep them simple so that they can be answered with a yes, no, or a short sentence. The goal is to get your point across quickly and effectively, and to avoid a lengthy and convoluted e-mail.

USE A CONVERSATIONAL TONE Business e-mails typically use a conversational tone that is less formal than a standard business letter. However, it is important to avoid making the tone of the e-mail too casual or familiar. It is also important to write in proper business English at all times, including correct grammar, spelling, and punctuation. Also, avoid using the words urgent and important in the subject line unless it is actually an urgent message. Avoid long sentences (15–20 words are more than enough) and keep the language gender neutral (i.e., the user should add a signature as requested) unless addressing a specific individual. Lastly, do not write the entire message (or large portions of it) using all capital letters because it will appear as though you are shouting.

MAKE THE E-MAIL LEGIBLE

Coherence is essential when writing business e-mails. Some business e-mails allow for the use of emoticons, such as smiley faces, but these should generally be avoided unless you have already established a business relationship with the recipient of the e-mail. Otherwise, it may appear to be too informal or casual, or it may even distract the reader from the purpose of your message. Also, make sure that the email is easy to read, which can be achieved through the proper use of upper and lowercase letters, as well as by using sufficient white space – blank space between characters and paragraphs of text – and legible fonts. Times New Roman, Arial, Garamond, and Verdana are just a few of the many acceptable fonts. The e -mail should not consist of run-on text, but should include spaces where necessary. Similarly, paragraphs should be separated by a single line space.

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CLOSING Choose a closing line. Many people choose to close an e-mail with a simple Thank You, while others prefer the more formal Sincerely. The closing should be consistent throughout all your e-mails so that the recipient will begin to associate the line with you, and will often feel as though they know you better. PROOFREAD AND CHECK BEFORE SENDING Follow the closing with an inforIn most cases, once you click the SEND button, an e-mail cannot be mative but controlled signature: recalled. For this reason, it is critical to double check and proofread use your full name, title, comthe entire message, including spelling and grammar. Make sure you pany, and any other pertinent are correctly addressing the recipient of the e-mail, particularly information that the addressee name spelling, as this is commonly overlooked. Once you have or an associate may need to proofread the text, reread the entire email to make sure the tone contact you. and content is appropriate, as it can be forwarded to anyone.

A FEW FORMATTING GUIDELINES: The business e-mail should consist of three parts: 1. Heading:  In some e-mail templates, the following elements appear at the top of the message:  To:  From:  CC:  BCC:  Date:  Subject:  Attached:  These information fields are followed by the greeting. 2. Body  This is the core of a business e-mail. The body of the e-mail follows the heading and includes the text that is addressed to the recipient. It should consist of short paragraphs separated by single line spaces. 3. Signature Block  The signature block is what appears after the closing. It contains the sender’s name, position, company name, and contact information and may appear as follows: John Smith C.E.O Bruin Business Review Los Angeles, CA 90024 Tel: 310.123.4567 Fax: 310.987.6543 Email: [email protected]

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dress

for

SUCCESS By Stefanie Ju Staff Writer

We’ve all felt that nervous, nagging feeling in the back of our head as we are preparing for an interview. Not only are there resumes and qualifications to worry about, but the issue of choosing an appropriate interview outfit has become increasingly difficult in the ever-evolving business world. Everyone has a common understanding of the importance of appearance for a first interview—your interviewer will make a preliminary assessment of you based solely on a first impression. However, because different industries and companies prefer very different styles of outfits, it is important to research the company you are meeting with, and dress accordingly. This mindset also applies to other events within the same indust r i e s . When choosing an outfit, you must consider the type of industry the company is in, and the type of event you are attending.

The type of industry you are interviewing or attending an event for should greatly influence the type of outfit you choose to wear. In general, being underdressed sends out a signal to your potential employers that you did not take this meeting seriously; your style of dress may be noted as unprofessional, and the person you talk to will remember you as the “underdressed, sloppy candidate”. However, if you are overdressed, you may also send the wrong message to potential employers in certain industries. They may think that you are stuffy and lacking in creativity. With this judgment already made, it may be harder to let them know that you are truly creative and qualified for the job. Overall, it is best to dress appropriately so that you can do the talking, not your outfit.

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PROFESSIONAL In more traditional industries like investment banking, accounting, and consulting, potential employers expect a very conservative manner of dress. Companies are usually looking for uniformity and an employee’s ability to stick to schedules and plans, and this is reflected in strict dress codes. For events in this industry, it is very important to make sure your outfit is within this dress code, which usually entails a professional pant or skirt suits in neutral colors.

women business casual For more casual settings in this industry, make sure to follow the same guidelines when it comes to hair, nails, makeup, and jewelry. However, a matching pant or skirt suit is no longer necessary. This does not mean that you may dress casually—remember the industry. A simple blouse and casual pants or skirts will do the trick. You can also deviate slightly from the solid black and blue colors from business professional meetings. Another option is dark khaki pants or a shirt with a dark purple trim.

formal For women in an interview or dinner situation, a skirt or pantsuit in any dark color is necessary. Remember to make sure that the pants fit properly (not too tight) and the skirt is around knee length, without any scandalous slits. A neutral blouse should also be worn under the jacket. Only deviate slightly from this to allow a little personality to show through; perhaps you would choose a brown suit instead of the typical blue or black. You can also add a limited amount of tasteful, conservative jewelry—such as a pearl necklace or set of diamond earrings. Moderate, closed toe shoes are also recommended—nothing too high or flashy. Classic black pumps are the most versatile. Also, make sure to keep hairstyles neat and professional. This means that hair should be a natural color (no colorful streaks!) and either worn down and sleek or up in a simple bun. Nails should also be neat—stick to neutral colors when getting a manicure.

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men business casual In more casual situations in this industry, it is still important for men to dress neatly. As previously mentioned for women, this usually means that you may deviate only slightly from a business professional outfit. The suit jacket may be unnecessary, but that does not mean you should not wear a shirt and tie combination with slacks. However, the color spectrum of appropriate clothing has broadened slightly. Instead of wearing a solid white shirt, perhaps you want to try a lighter blue. Instead of wearing solid colored ties, maybe you will wear one that is slightly more patterned. Keep in mind that if you do want to deviate from a white shirt, black slacks, and solid color tie, that your changes should be small. Do not think that just because it is a more casual environment, that means you should wear a bright pink shirt and tie that has UCLA written all over it in bubble print.

formal For men in a business professional situation, companies usually expect to see a suit and tie combination. It is best to stick with navy blue, black or grey. Men are also expected to wear a neutral long sleeve shirt underneath their suit jackets—white is the safest bet. Also, ties should not be too gaudy; usually a solid color or very basic pattern is best. Socks should be dark, and shoes should be professional—usually leather. Be sure to remember to wear a very limited amount of jewelry, or none at all. A watch is probably the largest piece of “jewelry” suggested. Also, it is important that haircuts are neat and aftershave is not too overpowering. For men meeting in more professional settings in these industries, slacks and a dress shirt should suffice. Throw in a tie if you feel the need to really impress your potential employers, otherwise they are not wholly necessary. Slack colors are also not as limited as in other industries. Usually for marketing or PR offices, khakis and lighter, neutral-color slacks can also be worn even in more professional settings. Shirt colors are not as limited, either. For interviews, it is not recommended that you wear a very bright, outlandish color. However, a blue or forest green shirt paired with dark pants will still send the right message to potential employers. The same unwritten rules about haircuts, aftershave, and jewelry still apply to these industries' interviews and events.

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OTHER INDUSTRIES In industries like marketing, public relations, and advertising, what to wear is usually less clear. In these cases, the safest bet would be to casually clarify the company’s general dress policies when you are first contacted for an interview or about attendance at an event. Generally, these industries require and look for less traditional, ultraconservative outfits. In these industries, creative drive and individual work are usually emphasized, so tweaking your outfit from a solid pant or skirt suit may be necessary. However, it is still important to stay professional and neat looking.

women

men

For women in more professional settings (interviews, etc.), there is a larger selection of clothing than in more conservative industries. Neat slacks and skirts are still necessary—they should be of appropriate length (to the knee) and fit correctly (not too tight). However, instead of always sticking to black, it is also safe to wear khaki, darker blues and browns, and some patterned slacks. Dressy blouses and shirts are also very important, as long as they are also appropriate for work. Make sure they are not too frilly, patterned, or in any other way distracting. Do not display any cleavage whatsoever, and as a rule of thumb, stick to shirts that cover your shoulders as well. Tasteful and simple dresses can also be worn—make sure they are not too brightly colored or patterned. You still want the attention to be focused on what you are saying rather than on the bright pink flowers on your shirt. The same unwritten rules about hairstyles, makeup, and jewelry also apply in these industries. In terms of jewelry, you are not simply limited to pearls and diamonds. However, do keep your jewelry pieces very simple and classic, and outfit permitting.

For men meeting in more professional settings in these industries, slacks and a dress shirt should suffice. Throw in a tie if you feel the need to really impress your potential employers, otherwise they are not wholly necessary. Slack colors are also not as limited as in other industries. Usually for marketing or PR offices, khakis and lighter, neutralcolor slacks can also be worn even in more professional settings. Shirt colors are not as limited, either. For interviews, it is not recommended that you wear a very bright, outlandish color. However, a blue or forest green shirt paired with dark pants will still send the right message to potential employers. The same unwritten rules about haircuts, aftershave, and jewelry still apply to these industries' interviews and events. Casual events in this industry vary greatly. Because marketing and public relations companies are overall already a little more casual in dress, it can be difficult to gauge how they would like you to dress when meeting for an informal lunch or event. Thus, it is important that you inquire about the type of setting you will be placed in and what is appropriate in terms of attire. Sometimes the person you are meeting with will want you to wear informal clothing—jeans and a top. Other times, they will want you to dress in business casual clothing. No matter what company you are meeting with or what industry it falls in, it is always important to look neat and appropriately dressed. Hair, makeup, and jewelry should always be understated. Colors should be solid and not too bright, so as not to draw away attention from your qualifications. Lengths and fits of clothing should be appropriate. It is also important to inquire with the potential employers that you are meeting with as to what they expect you to wear, or what their general company dress code is. Sometimes, companies will vary from the norm, and you want to make sure you dress accordingly. This way, you can walk in to an event confident in yourself, and allow your qualifications and personality to shine through.

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Etiquette

in the workplace By Christine Liu Staff Writer

Practicing proper etiquette in the workplace leads to stronger relationships with co-workers as well as clients. By presenting yourself in a favorable fashion, you demonstrate to them that you care to maximize your business potential and, ultimately, success in the workplace. What you do, and especially how you do it, is a reflection of what kind of worker you are. By wisely maneuvering your actions around the workplace, such as knowing what to say and when to say it, simply giving credit to a coworker, or making a good impression with the right e-mail or phone call, you can show your superiors as well as your colleagues that you are an important asset to the company or the client. Here are some useful tips you can utilize to impress your future boss (or current one—it is never too late to start!) and colleagues.

BUSINESS MEETINGS  Communicate beforehand the objective, expected duration, and items to be discussed  When using statistics, reports, or other information, distribute the handouts at least a couple of days prior to the meeting so that everyone attending the meeting can be well prepared  Acknowledge the most executive participants in the introduction or opening remarks  Allow more senior members to contribute first in discussions  Never interrupt anyone—note what has been said and return to it later  Be brief—no one likes someone who hogs the discussion  End the meeting on time, unless everyone agrees to continue INTERNATIONAL BUSINESS  Remember to thank meeting members for their time and  When traveling on business to a foreign country, participation; make sure you learn as much as you can about the show how they culture in order to make a good impression. contributed to the  Be flexible and adapt to what is appropriate— meeting by diswhat is appropriate in the U.S. may be inappropriate tributing minutes in another culture to the attendees  If it is a long-term stay in a foreign destination, and absentees make an effort to learn the language, but do not pretend to be fluent!  Get to know the food traditions and table manners

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PHONE CALLS  Return all calls. If a caller asks a question and you do not have the answer, call back and explain what you are doing to get the information  Have someone or an answering system pick up the calls when you are out and have them tell the caller when you will be back or when they can expect a call back  When you call someone, first identify yourself and the reason for the call  Personalize the conversation! Speak as if you are face-toface with the person

E-MAIL  Make the subject line specific. Do not use a generic subject line (i.e. “Hi” or “Meeting”)  Do not forward messages with long pages of mail-to information preceding the actual content. Delete all the extra info such as all the “Memo to,” subject, addresses, and date lines  When you are responding to a question, do not just write “Yes” or “No.” Make it a full sentence so as to not confuse the reader or make their question seem unimportant  Address and sign your e-mails. You are communicating with a person, not a computer  DON’T TYPE IN ALL CAPS. It is too intense and can make you seem somewhat bossy.

INTERRUPTIONS  Try to avoid interruptions of discussions, work sessions, meetings, or phone calls  Understand that interrupting work sessions of subordinates can mean a less productive brainstorming session  If you must interrupt a conversation or meeting, always apologize. Briefly and quickly state what you need to say  Show consideration that you are interrupting their work so that your coworkers do not feel that their work is undervalued

GIVING APPRECIATION AND CREDIT  Always pass along credit and compliments to everyone who contributed to the effort  Speak well of your coworkers and when introducing them, point out their accomplishments to any interested party Doing these will make them eager to work harder and feel validated in their work

DRESS & APPEARANCE  Basic rule: dress for success  Impeccable grooming shows your coworkers and clients that you care It can be insulting to them if you show a

*http://archive.insideoffice.com/insideoffice-20-20040917BusinessMeetingEtiquette.html *http://www.ravenwerks.com/practices/etiquette.htm

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how to utilize

RESOURCES on the INTERNET Eric Park Staff Writer

In today’s business world, the use of technology is ubiquitous.

Its use can range from: credit card machines that process payments, software applications used to create documents, and smart phones that keep businesses updated with the latest news and transactions. As the world becomes increasingly connected and technologically advanced, businesses must utilize these new resources in order to remain successful. From current technology, the Internet is perhaps the greatest technological aid in keeping people connected. However, it is also quickly becoming the largest provider of tools for businesses and individuals to utilize.

WEB MARKETING Facebook, Twitter, Myspace, and blog websites are social networking websites used everyday by people to keep updated on the lives of friends and family and to update others. Facebook and Myspace are websites on which users can communicate through virtual messaging and browse through friends’ photos and notes. Twitter is a website which allows users to write about happenings in their daily lives through web and text mestraditional marketing on the Internet has on advertising on websites, many busipanded their marketing campaigns to utilize these and other social websites. These Internet sites allow companies to interact on a more personal basis with customers while simultaneously increasing brand awareness and visibility.

saging. While focused heavily nesses have ex-

One example of a company using this type of web advertising is Kogi, which is part of the current taco truck phenomenon. The company serves a fusion of Korean and Mexican cuisine and sells its food for only limited amounts of time in varied locations. It has received significant attention from Southern Californian media and residents. It currently also has a tremendous and loyal following as many of its customers wait hours in line to sample Kogi’s food. What also distinguishes this business is that its entire marketing plan is based on the utilization of social networking websites. The company’s taco trucks travel all throughout the southern California area and keep customers updated on its locations through Twitter, its website, and Facebook page.

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The company alerts its followers on Twitter by sending out tweets or message posts that give the location and time of their taco trucks as well as other news. Followers on Twitter can receive updates by logging on to their Twitter accounts or through mobile text message alerts. Through Facebook and Myspace, the company is able to create company events, send out messages and updates to their fans and followers, and even interact with the public through web messaging. By blogging on its website, the Kogi company is able to promote its own and other companies and receives further marketing and support from other companies that in turn promote Kogi.

By utilizing social networking websites companies, are able to reach consumers on a more intimate level. This type of marketing campaign has been wildly successful as the Kogi company has developed an enormous following of loyal customers, especially here at UCLA. Corporations from other industries such as ESPN, Amazon, and JetBlue have expanded their web marketing campaigns to utilize and include networking websites in order to keep customers updated on the latest news, deals, and other company related information.

SOFTWARE TOOLS

Screenshot from Google Documents

Software used for spreadsheets, presentations, and written letters has been available for many years. However, an increasing number of websites are providing individuals and businesses with greater flexibility and tools for a variety of business software. The companies that provide these valuable resources include Google and Basecamp among many others. Basecamp is a web-based program that allows groups to track and manage projects. For example, if a company wanted to send out a calendar that would keep its employees updated on imminent and upcoming deadlines for a project, it could use this program. This website and software allows individuals to allocate resources, assign tasks, and more. Any individual that has access to a project hosted by the Basecamp software can check deadlines, progress, and provide comments and feedback.

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Google’s rise to Internet fame was primarily from its website search service. However, Google has expanded from its inception to provide a host of useful programs for companies. If a company wanted to create a spreadsheet document for its employees, it could use Google Documents. Google Documents creates a personal website link for individuals where they can create all types of viewable documents. Through this website users can edit, share, collaborate, and even save to match compatible software. This is extremely useful for companies because it allows for removal of software requirements to view files and documents can be accessible from any internet source including mobile phones. Google also has many other programs, such as Google Calendar, which allows user to create online calendars with their schedules and also allows the option to sync that calendar to a mobile phone. There are sites that are useful as well, such as www.doodle.com, which allows users to create personalized surveys and polls to collect feedback and opinions.

INTERNET COMMERCE Retail companies collect revenue from cash, credit cards, personal checks and money orders. However, the Internet has created new methods for companies and individuals to collect payments. For example, many clothing companies used to rely on brick and mortar stores to sell clothing. However, with the use of the Internet, companies can cut the costs of selling their goods in a physical store by going to an online format. This benefits not only companies but also individuals as companies are able to offer lower prices.

The Internet allows individuals to purchase items easily and quickly on websites such as Amazon, Overstock, and e -Bay. There are also many discounts on just about every type of item including books, clothing, and others. By shopping online, individuals can immediately compare prices and find the best consumer deals. Budding entrepreneurs and students alike can take advantage of these low prices.

There are a variety of ways in which payments can be made online, including online checks from a checking account and credit and debit card payments. Another popular payment method is through the online service known as PayPal. This method allows buyers to use their credit cards and checking accounts without having to give the seller any personal credit card or banking information. This also gives buyers additional protection in any discrepancies between the actual item and the seller’s description of the item. If any problems occur during a transaction, PayPal will intervene to resolve any issues.

CONCLUSION Technology has and will continue to become deeply embedded into the culture of the lives of individuals and businesses. As this occurs, the number of tools and resources available will increase. It is important that people and companies alike adapt by becoming sufficiently informed and learning to successfully utilize these new options.

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how to

START YOUR OWN BUSINESS By Grace Chan Staff Writer

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[Start-up Costs] The first step for any new business owner is to estimate the necessary start-up costs: Is it feasible to start your own business? How much capital do you have? How much money do you need to borrow? Start-up expenses will include one-time fees as well as fixed and variable costs. One-time fees: incorporation, trademark, legal and professional fees, etc. Fixed costs: rent, insurance, utilities, lease payments, etc. Variable costs: costs that change in proportion to the level of fluctuation in the business’ production/activity *i.e., fuel expenses for an airline company will change depending on the duration and number of flights]. Estimates should not be conservative in order to leave room for error and unexpected events!

To make sure your business stays afloat, it is vital to perform a simple break-even analysis. Make sure that you are pricing your product/service at a price that is high enough to cover your fixed and variable costs. However, in doing so you must also make sure that your pricing remains competitive! To the right is a simple graphical representation of the breakeven analysis.

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[Financing] You should consider these things when looking at different financing options: Purpose of the capital All banks will ask for specific details about how the capital is going to be used: Is it going to be used for inventory, equipment, lease payments, operations, expansion, automobiles, etc.? For example, some banks may place a lien on your inventory as security for the loan. Urgency of capital: anticipated need or under pressure It is better to anticipate future cash outflows than to search for money under pressure. Under pressure, you might have to take a loan with unfavorable terms, such as a higher interest rate. Degree of risk: How risky is your business venture? The riskier the nature of the business, usually, the more limited the financing options. Current state of industry: depressed, stable, or growing Business in a growing industry will typically receive better lending rates Nature of business: cyclical v. seasonal Financing for seasonal needs are generally short term. Loans for cyclical industries are calculated to support a business through depressed periods. Management of cash flows Is it being run efficiently? Are cash inflows greater than or equal to cash outflows? Equity v. Debt financing: Analyze your debt-to-equity ratio = *Total Liabilities/Shareholder’s Equity+. A high debt-to-equity ratio implies that a lot of debt has been used to finance operations. A company could potentially generate more earnings with this outside source of funding, but at the cost of interest expenses.

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3

[Naming] Naming your business is an exciting and creative process, but it is important to make sure that your trademark name is not currently being used or not too similar to an existing name. Search and file trademarks at: http:www.uspto.gov/main/trademarks.htm

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[Structuring] The way you structure your business will have important tax and liability ramifications. Depending on the structure, owners may or may not be held personally liable for certain events and/or debt. Personal liability means that in the event that a company goes bankrupt, the owner’s personal assets may be at risk. In addition, under certain structures owners can be sued for their own wrongdoing/negligence or the wrongdoing of another partner. Most companies are structured as c-corporations, which have to pay corporate taxes on their profits. However companies can be structured as “flow-through” entities, where the company’s losses and gains go straight to the owner’s individual income tax return based on a pro-rata share. For instance, if a company earned $500,000 and you are a 50 percent owner, the amount that you report on your income taxes would be $250,000 ($500,000 * 50 percent). Likewise, if you are only 10 percent owner, you would report only $50,000.

C corporation

S corporation

Limited Liability Company (LLC)

Limited Liability Partnership (LLP)

Limited Partnership

General Partnership

Are owners personally liable?

No

No

No

No, except for negligent partner

Only general partners

yes

Does the company pay income tax?

Yes

No

No

No

No

no

Do profits & losses “flow through”?

No

Yes

Yes

Yes

Yes

Yes

Limited to 100 shareholders

Generally not allowed for professional service firms

In CA, only available for law firms and CPA firms

Notes

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5

[Protecting your ideas] In order to successfully brand and advertise, figure out what is unique about the product/service you are selling. Make sure that all your ideas and inventions are protected against infringement by other competitors. Check to see if you qualify for a patent, copyright, or trademark. http://www.uspto.gov/ http://www.copyright.gov/

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[Licensing and Permits] Research both state and federal requirements; these include licenses, permits, and registration. Most companies will have to apply for an Employer Identification Number (EIN). Generally, businesses do not have to apply for a federal permit or license unless they engage in certain activities, such as broadcasting, drug manufacturing, investment advising, meat preparation, ground transportation, and the sale of firearms, tobacco, and alcohol. For more information about compliance, visit: www.business.gov

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[Leasing V. Buying] Leasing

Pros

Cons

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Buying

- Minimal initial expenditure, less impact on cash flow - Lease payments can be deducted as a business expense for tax purposes - Usually easier to obtain and more flexible - Passes the burden of obsolescence to the lesser

- Overall cost is generally higher than purchasing equipment - No ownership - Large early termination fees

[Getting Out] Options include: Selling your business Transferring ownership Liquidating assets Filing for bankruptcy Closing officially

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- Gain ownership [good if property has long useful life] - § 179 IRS code: Under certain restrictions you may fully deduct the purchase of new assets for tax purposes - Depreciation deductions for tax purposes - Initial cash outflow is too great - Borrowing cash to finance purchase may tie up lines of credit - Risk of technological obsolescence with little resale value of old equipment

Saving for

RETIREMENT By Jaeman Kim Staff Writer As a student, the first thing that may come to your mind $2,000 at retirement, once you take it out of the IRA when it comes to retirement is, “I’ll worry about it later.” account, this $2,000 would be added to your taxable In fact, you may not even plan to think about it for at income. A traditional IRA would be beneficial for least another 5 to 10 those who expect to be in years. However, the truth a lower tax bracket once is that you should think they retire. “However, the truth is that you should about contributing to an While there are several think about contributing to an IRA, or IRA, or an Individual other types of IRA Retirement Account, as an Individual Retirement Account, as accounts, such as a SEP soon as you start working. IRA, which is for those who soon as you start working. So what exactly is an IRA? are self-employed, or a self An IRA is a retirement -directed IRA, we will only plan, with the main advantage being that there are cover the Roth and Traditional IRA, as these two various tax advantages, unlike simply saving money in a accounts are the most relevant to students. savings account. To understand these tax advantages, As explained earlier, the main advantage of IRA accounts however, it is important to know the different types of is tax-related. With a Roth IRA, you do not have to pay IRA accounts. taxes on withdrawals, and with a Traditional IRA, you do  Roth IRA: Contributions, or money that is put into the not have to pay taxes on contributions. IRA account, are not tax-free. For example, if you When you contribute to an IRA account, you can do contributed $500 to this account, you would still pay several things with the money. It can be used to invest in taxes on the $500. However, once you start stocks, mutual funds, bonds, and several other withdrawing money from a Roth IRA account, you do investment tools. Stocks are the riskiest of these, in that not have to pay taxes on these withdrawals. A Roth they are very volatile. Bonds, however, are much safer. IRA would be beneficial in the case that you have Bonds allow you to receive a constant return on the enough money to pay your taxes besides what is money you invest. However, since bonds are much safer, going into a Roth IRA. the interest rates that you earn on them are much lower.  Traditional IRA: A traditional IRA can be thought of as To better understand what exactly a bond is, imagine a the opposite of a Roth IRA in that contributions are company called “Company X” starts selling bonds to the tax-free, but withdrawals are not. To better public, offering an interest rate of 3 percent. Companies understand, take the $500 example from above. will often do this in order to raise money. If you purchase Unlike a Roth IRA, when you contribute the $500, $100 of this bond, you will earn a return of 3percent this amount can be removed from your taxable every year, eventually earning that $100 back. The life of income, effectively making it so that you do not pay a bond may be anywhere from 6 months to 10 years. As taxes on it. However, withdrawals ARE taxed, as if can be seen by this example, investing in a bond is much they were income. So if that $500 eventually became safer than a stock.

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Another investment tool available is the mutual fund. A reason that younger people will most like pursue this mutual fund is a collection of stocks, bonds, and other option is because they have more time to allow the money investments created by a financial institution. The decisions of what to invest in are made on your behalf. A mutual fund may consist of everything from Apple stock to government bonds. For example, suppose that “Company X” has a Charles Schwab is another broker that can help you open a IRA account. mutual fund. Then presume that this mutual fund was created using stocks from Apple, bonds volatility of stocks to work in their favor. Over long from ExxonMobil, and government bonds. If you were to periods of time, stocks have historically provided good invest in Company X’s mutual fund, you would effectively returns. be putting your money in Apple stock, ExxonMobil However, older people, such as those preparing to retire bonds, and government bonds. soon, will choose to go with a less aggressive investment, such as 70-80 percent in bonds. The reason for this is because they cannot afford to put too much money in stocks, where volatility is too high. A steep drop in the price of stocks, as recently seen, could equal disaster for retirement. Therefore, a larger investment in bonds, which are much safer, would be the obvious choice. Now that all the basics have been covered, there are several important rules to remember, which will of course be covered by your broker. First of all, there are contribution limits every year. Contributions are the amount of money that you put into your IRA account. For those under the age of 50, contributions to either IRA account are limited to $4000. Also, you cannot begin to remove money from the IRA account until the age of So now that the basics have been covered, you may be 59.5. While there are several exceptions to this, such as wondering how to exactly open an IRA account. All you in the case of disability, any early withdrawals will result have to do is go to a broker, such as Fidelity or Charles in steep penalties. Schwab, and open an account. From there, they will ask you how aggressively you want to invest, and depending on your preferences, they will spread out your investments among stocks, bonds, and mutual funds. Everything that has been explained above is simply An aggressive investment, which younger people are general information that you should consider when more likely to pursue, would put more money into stocks planning for retirement. However, you should always and less into bonds. This will vary between what consult with a professional before opening an IRA different brokers suggest, but generally, it will consist of account. 70 percent in stocks, and 30 percent in bonds. The

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how to

Finance a Car By Amorette Jeng Staff Writer You have been on the lookout for a car for a while; you are determined to buy one, not lease. After considering a plethora of pros and cons, you have finally decided on a vehicle. Now, you just have one problem: where are you going to find the money to pay for it? Most people find it difficult, if not impossible, to fork over cold, hard cash for the automobile of their choice. Even if it were possible, a person might not want to empty a chunk of their savings account to finance the vehicle. Therefore, it would be well within the average person’s interest to be aware of car financing options.

What Choices Do I Have? One way of financing a vehicle is by going to a car dealership and buying a car directly from the lot. This can be fast and rather convenient, but you will most likely have to deal with a forceful push on add-on sales by the car dealer. These add-ons are basically car accessories (i.e. spoilers, back-up sensors) that you may or may not want given the additional costs associated with them. Another way to finance is to go through a bank or credit union that can provide loans with simple interest rates (a fixed interest rate based on the principal amount). Getting a loan from a bank or credit union provides you with personal service and often times your loan can be packaged with free life insurance or disability insurance. However, these loans are not as convenient as financing through a car dealership because they involve a more extensive process and they are generally short-term loans. Online financial institutions, Websites that can help you locate a “choice vehicle” based on the preferences you indicate are also available; however, as a buyer you will have to be aware of potential scams. Nevertheless, these Web sites are quick and easy to use and are similar to a Google search for cars. For example, upon entering the home page of CarsDirect.com, the buyer is immediately offered choices like new or used cars, vehicle model, and geographic location. Lastly, a home equity loan can be utilized to provide the extra cash. By financing through a home equity loan, you would be allowed to deduct a certain amount of interest from your taxes and provides you with immediate access to the cash. However, this can be risky because it would essentially creating a financial bond between your house and car; if you are later unable to pay off your loan, your home may put in danger of foreclosure.

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What about the Annual Percentage Rate? The Annual Percentage Rate (APR) is the amount of interest you will have to pay after a full year, rather than having just a monthly fee/rate, when you take out a loan or receive credit. This amount is paid to your lending agency (which can be your bank or credit union). Knowing this is important because it is a key determinant of what amount you will end up paying for your car beyond the vehicle’s sticker price. The biggest influence on your APR would probably be your credit rating, which basically estimates how “worthy of credit” you, as an individual, are. The “riskier” an individual is considered, the higher the interest rate. To calculate credit ratings, financial institutions use statistical analysis by taking factors like spending/saving patterns, debt, and ability to pay the loan into account. Basically, they are more willing to provide loans if you can prove to be responsible with your money. In addition, the term of the loan is a key determinant of the APR; shorter loans will have lower rates, but it also means that payments will be higher. Depending on what type of car you are planning to purchase (used or new), this could influence your APR. For example, a newer model will generally have a lower interest rate since dealers are trying to promote the sales of the newer models and vice versa. The last thing to keep in mind is geographic location; depending on where you are searching for a vehicle, your APR may differ compared to somewhere else in the country.

0% APR If a 0-percent APR loan were to become available, it would be a great opportunity to take advantage of if you can handle the terms. A 0-percent APR generally includes a short-term loan with relatively quick and high payments. Sometimes these loans may have terms of only 24 to 36 months, compared to the more common 48- to 60-month term. For example, if you took out a $15,000 loan with 0percent APR for a 24-month period (2 years), you will have a monthly payment of approximately $625. However, if you had a 6-percent APR for a 48-month period, you would have to pay approximately $352 monthly. To even consider such an option, keep in mind that interest-free rates are available specifically for people who have great credit scores, generally at least over 680. Another drawback is that you may have a limited selection of vehicles to choose from instead of finding one that is tailored toward your personal preferences. For more information regarding automobile loan calculations, refer to www.automart.com/calculator and for car financing, refer to www.edmunds.com.

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