by zigmund sepanski, msa, j.d. (dec 2010) powerbusiness associates inc. cover your assets former...

ByZigmund Sepanski, MSA, J.D. (Dec 2010)

PowerBusiness Associates Inc.

Cover your ASSets

• Former director and treasurer of California TCRC• Currently Executive Director Kill Cancer Foundation• Currently President PowerBusiness Associates Inc.• Former C.O.O Apple Computer country operation in

Europe• Former director of strategic markets Sun

Computers Inc• Former President Intelcom Corporation• Taught marketing, advertising, distribution,

California • Clients include divisions of Coke, Compaq, Pepsi,

Dean Foods, Lucent, Avon, Apple Computer, Price Waterhouse• Started and sold 7 small businesses

Cover your ASSetsreducing risk – risk of losing $ or not making

$ • Government• Courts• Clients• Hosts, vendors• Errors and Omissions• Travel business:

– 10 mistakes agents make

Zigmund SepanskiPowerBusiness Associates Inc.

Authorized Agents - Travelmakers



Government regulations•Registration requirements•City• Licensing

•State•Registration•Consumer protection funds• taxation

• Federal• taxation

Seller of Travel Laws – consumer protection



•

Liability:Order taker or consultant?

• If taking the order – liability smaller• If advising, consulting – liability

greater

This presentation is not legal advice. Consult a licensed attorney for any legal questions.





• 1. Duty to disclose vendor identity• 2. Duty to warn & inform• 3. Duty to investigate• 4. Duty to confirm• 5. Duty not to over promise or

misrepresent• 6. Duty to protect client funds

How courts look at agent’s duty

This is not legal advice for which you should consult an attorney

Federal Government

•Taxes•Hobby or business?•Receipts• Internet, drive to clients, supplies, travel

• Justification for fam: results

– Talk to a CPA Zigmund SepanskiPowerBusiness Associates Inc.


Hosts and Vendors• Hosts – written contract.

– Independent contractor• No desk, no office hours, no in-box, no

schedule• Level of control by host• Take benefit of preferred agreements,

marketing

• Vendors– Registered with state if required– Name of person giving quote, time– Prequalified (preferred) vendors

• Unless pre-qualifed stay with US based opsZigmund Sepanski

PowerBusiness Associates Inc.Authorized Agents - Travelmakers

Working at home risk

• Do clients drop by? You are most likely not covered if they trip on your rug.

• If your dog eats your client’s airline tickets you are most likely not covered.

• If the FedX guy trips on your child’s toy you are most likely not covered

• Get a rider Zigmund SepanskiPowerBusiness Associates Inc.


You did not tell me there was a palm tree in front of

myocean front condo. I am

suing you!

E & O



What E & O Covers1.Bodily injury and property damage2.Personal injury. Libel, slander, false

detention: (stuck in country due to agent’s failure to advise of proper docs)

3.Errors and Omissions: visa problems, time change errors

4.Non-owned hired auto, water/air craft Zigmund Sepanski

PowerBusiness Associates Inc.Authorized Agents - Travelmakers

Do I qualify for E & O, Berkley

special home based pricing

1. Independent contractor 2.Sole proprietor or individual home-

based travel agent 3.Less than $1,000,000 in gross sales

annually. 4.No employees or independent

contractors working for you nor can you operate your own tours



What E & 0 does not cover

• Fraud• Non-compliance with state laws• Negligence• No credit card signature• Failed to offer trip insurance?• Bookings outside of host’s IATA



When to alert insurance co.

1.You receive a verbal complaint

during or after the trip

2.You receive a written complaint

3.You receive a letter from an

attorney

4.You are summoned to small claims

court

5.A lawsuit is filed against youAUTHORIZEDAGENTS

TRAVELMAKERS

• Failure to Advise of Visa Requirement Berkley paid out $22,968

• Travel Agent booked clients on a World Cruise. The cruise line provided visa applications to the claimants. However, booking agent advised claimants that they need not worry about applying for visas since the ship had a blanket one.





10 ways to minimize risk of losing $ or not making much

$



Circle Nothing Brand

IMAGE?Cheap, Quality, Adventure,

NicheEverything, Cruises?

How do your docs look?Where is your name?



IMAGE: Sloppy Joe

• Look of many home based agents?• Forgot to take off pajamas at

meeting• Just came back from dumpster diving

Sad but true – what vendors think of you



Pterodactyl Syndrome

• How public perceives agents?• Perception is reality

• VACATION CONSULTANT• CRUISE CONSULTANT• STRESS RELIEF CONSULTANT• DREAM CONSULTANT



I work for free

• Hair dresser• Plumber• Prostitute• Attorney• Doctor



Swap Meet• Don’t start with cheap first• How many 3 day cheap cruises you

would have to sell to make the same commission as one higher end cruise or land package?

• Don’t give low price first• Don’t give price first• Sell the experience and benefits

first



One night stand

• Sold client – bye bye• Thank you postcard• Happy anniversary, birthday• Call before trip, call after• Etc. etc. etc.

• BUILD A RELATIONSHIP

AUTHORIZED AGENTSTRAVELMAKERS

Jack of all trades

• Air tickets from LA to Phoenix• Bus to Cucamonga• Train to TJ

• Will they come to you for Crystal?– Will you have time to cultivate?

Woe is me– no goals

– I wish I had more clients– I hope business picks up– I want more sales but no one is traveling– I’d like to go after the wedding market…



Make a solid goal• I’d like to go after the wedding cruise

market – not a goal -dream• I will increase my wedding business to

$3,000 in commissions per month by March 31st &

• By January 10th I will develop a partnership proposal for wedding planners, photographers and caterers &

• By January 20th I will contact 30 wedding planners, 10 wedding photographers and 5 caterers & present to them my proposal no later than January 30th.





Splendid Isolation

• USE A HOST WHEN IT BENEFITS YOU– Coop funds– Group space– Special amenities– Marketing materials: consumer

magazines– Special programs

• Health and Wellness cruises• Wine and Food cruises• Special resort agreements

PPA: Piss Poor Attitude

• Will affected everything around youYou control or you are controlled

• View the world through what window Sfo RCCL fam





Risk management is also your time and task

management

• Prioritize everything A, B, C

• Focus on important

Do the 20% that will give you 80% of $ Not 80% that give you 20% of $



Risk management covers everything from procedures to accounting, from

E & O to attitudes

A successful travel consultant is willing to address risks and

opportunities which an unsuccessful one is not

Booth 424

by zigmund sepanski, msa, j.d. (dec 2010) powerbusiness associates inc. cover your assets former...

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