Legacy 2016 Miami: 40 Under 40 Issue | Page 9

LEGACY EXCLUSIVE
In the business world , money is the fuel and time is the runway . Entrepreneurs often forget to calculate the amount of money and time needed to succeed because they are focused on planning and dreaming of how high the business will fly and where it
MONDAY , AUGUST 1 , 2016 AN INDEPENDENT SUPPLEMENT BY MIA MEDIA & COMMUNICATIONS GROUP TO MIAMI HERALD BB9

LEGACY EXCLUSIVE

Commissioner Edmonson Advocates Fairness and Prosperity for All

By Zach Rinkins
Audrey M . Edmonson
Miami-Dade County Commissioner
REAL ESTATE
By Barron Channer
@ BarronChanner
According to the Journal of the Historical Association of South Florida , Liberty Square made history in 1937 for being the first public housing project built for African-Americans in the southern United States . The project was pitched as , “ one of the greatest blessings that Miami ever had ,” by John Gramling , a Miami attorney who helped form the Southern Housing Corporation for the purpose of developing a " negro colony "
Now 79 years later , Liberty Square--affectionately called the ‘ Pork and Bean ’ projects--will be transformed into Liberty Rising , a multi-use commercial and residential project . News of the development aroused tension from various
segments of the Black community . After five hours of public discourse , the Miami-Dade County Commission recently voted unanimously to award the $ 307 million project to Related Urban Group .
“ This has been a difficult process for me , but my vote approving the proposal was cast to ensure this long overdue redevelopment moves forward , but with standards and safeguards for all communities involved ,” Edmonson says . “ It is crucial that the developer be held responsible for promises made and I hope that Related keeps its word .”
Despite the difficulty , the Commissioner affirms District 3 deserves prosperity . “ The redevelopment of Liberty Square has been a priority for me and the legislation supporting this effort had my leadership and full backing before a plan was ever announced to the community at-large . I remain a strong advocate for the r edevelopment of Liberty Square and for the new development in Brownsville ,” Edmonson explains .
She continues , “ I stand in support of myresidents , as I believe they are deserving

Planes Need Runways and Fuel to Take Off and Fly

will end . This is a natural instinct . Remember that you need enough money and time for your business to take off and fly safely .
As the saying goes … you need money to make money . How much and what for are the meaningful questions . How much money is needed depends on your “ burn rate ”. This is the rate at which you need to spend money before the business begins generating its own money . During this period , you are “ burning ” through cash that is yours or was raised from investors and lenders . If you have not calculated your burn rate , then you cannot know whether you have enough fuel to fly safely . If a pilot did not know whether there was enough fuel , would you feel comfortable in the plane ? Calculating your burn rate involves estimating your future expenses . Business costs such as compensation for employees , fees for advisers / consultants , expenses for the office and marketing along with costs for equipment and supplies are primary components of your burn rate . However , it does not end there . Many people forget that the money needed to live is a part of the burn rate . You are your first employee and of the best of whatever this county or a developer can offer . However , there must be safeguards for the residents of both Liberty City and Brownsville and clearly , good information shared with our community .”
Edmondson asked for the following four items : 1 ) to see the written contractual agreements between the developer and their community partners ; 2 ) to see liquidated damages for non-compliance by the developer with terms of the Master Development Agreement so that the County is in a position to ensure promises made by a developer are kept ; 3 ) to develop amendments to the contract to include Board approvals should any material changes be made to whatever plan is approved ; and 4 ) that the developer be required to give quarterly reports so that this Board can monitor the progress and be kept abreast of any significant changes that may cause concerns .
“ I wanted the proposal to include more mentorship opportunities so that we continue to build capacity for our smaller firms . I spoke about developing a
need to be compensated . If you cannot pay your bills , then you cannot focus on building a business . If your investors and lenders will not provide money for you to pay yourself , then you need to figure out if you have enough savings to pay yourself while waiting for the business to begin paying off . Ask a simple question , would you feel safe in a plane if the pilot was more worried about how they will eat than flying the plane ?
Time is the runway for your business . Always assume that it will take longer than you expect to succeed . Conservative planning will reduce the chance of not having enough runway for take off . Loss of the money , time and your reputation are the penalties when your runway , even by only an inch , is too short to take off . The amount of money available and the burn rate are the primary factors that determine how long the runway will be for your business . Calculating the time needed requires that you make an educated guess about how and when the business will start making money . One way to reduce or eliminate the time needed is to acquire a business that is already making money and scholarship program for youth living in the developments ,” she declares . “ Public Housing is meant for transitioning to a self-sustaining life ,” the Commissioner reveals . “ We want to see the children of Liberty Square and Brownsville have every opportunity to advance and to succeed . All these conditions were accepted by the developer and included in the proposal approved by the County Commission on July 6th .”
She wants all residents to prosper . “ This community has been given high expectations and I want to ensure that they are met . The entire Liberty City area , not just Liberty Square should also rise . Brownsville , not just Lincoln Gardens Public Housing , should rise as well ,” she asserts . You can visit the District 3 Office located at Caleb Center 5400 NW 22nd Ave ., Suite 701 , Miami , Florida 33142 .
www . MiamiDade . gov / District03
build from there . Real estate investors are following this philosophy when buy existing buildings with tenants instead of building from scratch . Another approach is to line up solid paying customer ( s ) before starting your business . Real estate investors are doing the same when they pre-lease buildings before starting construction .
Good business people , like pilots , need to have a vision of where they plan to go and the ability to move towards the destination . It is just as important to always make sure there is enough fuel ( money ) and runway ( time ) to take off and complete the journey . The first step in success is to get off the ground safely .
" You are your first employee and need to be compensated . If you cannot pay your bills , then you cannot focus on building a business ."