Jose Berlanga, CEO of Houstonian Capital and Onyx Land Partners

Narrator: [: 00:00:00

Traci DeForge: Welcome to the Ask Brian radio show on KHTSFM 98. 1 AM 1220 and hometownstation. com. I am your host today, Tracy DeForge, and I've got my fabulous engineer with me today, again, because Peter is out probably doing something. Fun and probably we don't even want to know what it is. Oh, no, no, I was going

Jenn: to say he was wreaking havoc on someone.

're being too nice, I think. [: 00:01:00

Traci DeForge: Yes, that's the southern belle in me. But you know, he definitely balances me out in that regard. That's for sure. But we miss him and we wish he was here today. But I am excited about our guest because as we always do, we have an amazing guest. And if you've listened to the show before, you know that it is the Ask Brian radio show, and that means that it is spelled B R I E N.

And we celebrate the E's around here, but we always start our celebration, well today we get to start our celebration with the E for estrogen, which we don't always get to do, so. Jen and I will celebrate that. For the first part of the show, anyway, and also you as our engineer, because without you, Darren, it just wouldn't even be the same around here.

It just wouldn't. Well, you know, we

Jenn: need that balance and I'm happy to help.

sk Brian radio show are also [: 00:02:00

We have a lot of enthusiasm and we just have a lot of fun and fun does not start with an E but we have fun around here. Right? That's true.

Jenn: The enthusiasm. I'm not going to let anybody scream. So we'll just do this instead for enthusiasm.

Traci DeForge: Oh, okay. Yes. That just feels so much easier on the eardrum. Okay.

are you still there with us? [: 00:03:00

Jose Berlanga: I am here. How are you?

Traci DeForge: I am great. And I just couldn't be more thrilled to introduce you to our audience because you're just your experience as an entrepreneur, as an author, and as a land developer, and the expertise that you have in all of these areas, including land acquisition, business growth strategies, like we have So many pathways of conversation open to us today, author, amazing media experience.

So please tell us just a little bit more about yourself in all of those areas, and let us meet you and let our audience get to know you a little bit.

Jose Berlanga: Absolutely. Well, first of all, Tracy, thank you for having me on your show. It's great to be here. Well, what can I begin with in this famous world of entrepreneurship, which has been a very long journey for me.

I started very young. [: 00:04:00

Most people are scared of entrepreneurship and going on their own and starting a business. I think I had a little bit more of a concern in allowing others, another company, a boss, Design or determine what my future would be and I, what I would become. So, you know, I started early. I think I got lucky enough to understand that the sooner you start, the better, the easier, the less responsibilities, the less overhead, the less obligations you have.

ecome a business owner, but, [: 00:05:00

Traci DeForge: I love that. So what was, do you remember that moment where.

You were, I mean, and maybe also, if you can bring us up to speed a little bit on your history prior to being an entrepreneur, but like, what was that moment that you were just like, I'm going to do this, I'm going to start this, like, I believe in myself to do this thing, like, was there a specific catalyst or moment for you that was your aha?

, so energetic, doing deals, [: 00:06:00

And since I grew up with that image, I just couldn't wait for me to go out and start figuring things out on my own and learning about different industries. So, It wasn't one single moment. I think there was a moment in which I decided to start, but it was already in my mind, it was already part of my plan and part of the strategy that I wanted to follow.

One of the issues I had is that I wasn't quite certain in what industry or what product or how to go about it. I wasn't blessed with that gift that a lot of people have, which is to clearly know and understand exactly what path or what industry, something that they know and understand. I didn't have that.

e first opportunity I had, I [: 00:07:00

And I've done so many other things that all revolve around into starting businesses, startups, from technology to manufacturing, to distribution, you name it, I've been in them at some point one way or the other as an investor, as a partner, as an operator, and they're all uniquely, um, Interesting. It's amazing.

They're obviously there's always the uncertain factor. There's always the pressure, the stress that many people misunderstand about this activity. You know, we think that we do it because we're going to immediately own our time, have freedom. Make a bunch of money, do what we want, when we want, and it's quite different.

and actually have the right, [: 00:08:00

And there's a lot of sacrificing in the process. So it's something that we should all know when we get into this, uh, this type of lifestyle.

Traci DeForge: You know, we've been doing this show now for over seven years, and I honestly want to say that you're the first person who has those distinctly talked about the fact that a lot of times people go into entrepreneurship because they say they want the freedom and flexibility that it will bring to them without the awareness and the insight that you're basically, instead of working for a company.

ially as you're building and [: 00:09:00

So I really feel really powerful about this conversation because I don't think it happens and really is talked about enough.

Jose Berlanga: Yeah, yeah, yeah. We really underestimate the difficulties of this career. You are so right. Sometimes we fantasize and glorify this industry or this career of entrepreneurship as seeing it as a ticket to freedom and wealth and power and all of those fun things, but the reality is that you're so right.

nkers, people who trust you, [: 00:10:00

We something else that we're rarely aware of is that when you start a business, build a business, getting to anything. That has been started from scratch. It's never going to go your way. It's never going to happen the way you plan it or envision it or intend it to happen. So you have to be open minded and be able to pivot and adjust, make quick decisions.

you as you go. It never goes [: 00:11:00

It's going to be. Tough and difficult and competitive. There might even be in most cases, more bad days and good before the things starting to start to come together, you're going to have to go through a lot of sacrificing, but walking away from fun and entertainment and free time. And so, yes, yes. If you are serious about this and you want to truly make something out of your business, it's going to take a really, really long time.

Wanting to succeed and having no alternative and nothing better to do than to pay attention to your baby.

r core resilient. And be, be [: 00:12:00

And right now that's happening so rapidly in so many different business sectors, but I think entrepreneurs have another challenge that you've brought up. But again, I don't feel like it's talked about enough. Which is this emotional attachment that we have to our businesses, because essentially, we've concepted them, we've created them, we've built them as labor of love to be able to stay connected to a business for the length of time it takes to grow and scale it, but at some point, we also have to have the, Detachment with love as an entrepreneur for our business for it to go to the next level.

to a bigger staff, a bigger [: 00:13:00

Have you had that experience?

Jose Berlanga: Oh, many, many times. And it's not a single event. It's an ongoing process of letting go little by little. It starts even from the early stages. For example, delegating is a way of handing over control to some areas of your business. And it has to be done carefully, and it has to be done very smartly, understanding what it is that you can hand over to other people in your organization, understanding what are the qualifications of the people that you are allowing to enter your world and the world of your business, but even in the early stages, understanding at what point do you need to start bringing in people to help you.

re scared to pass on some of [: 00:14:00

You know, try or at least what has worked for me, I can't say that I perfected or mastered the art of delegating. I'm still trying to keep my eyes on too many things. And that's just part of a lot of the entrepreneurs nature to just try to be everywhere and have eyes and ears everywhere. But I begin by trying to delegate things that are repetitive, that do not require so much thinking, creativity.

me of your weaknesses within [: 00:15:00

And little by little, as you grow, you're going to try to continue your vision in showing the people around you that you are the leader that everyone needs to trust. And understand, but eventually less and less of that authority is going to be strictly in your hand and it's going to be passed on as you grow.

And that's the part of the health of a growing organization. It's not all about you. It becomes the accumulated effects of many people's efforts and actions. No longer just what you as an individual does, but what everybody else is doing on your behalf as a team.

know, you sharing these real [: 00:16:00

And I love the way you're just so raw and open about the challenges and how to really navigate some of those. And in your book, the business of home building, you've talked about setting up a company with Operating procedures as a plan for success. Do you think that like some of the things that you were just sharing about are part of setting up those clear operating procedures?

Jose Berlanga: Absolutely. And by the way, those rules and observations and comments that I make throughout the book apply to just about any other business. I wanted my first book to be dedicated and devoted. More towards the industry where I've spent most of my career or a good portion of my career. But the fundamentals of starting and building a business are very similar in most industries.

d managing all operates in a [: 00:17:00

We may forget to think about them. We may neglect to focus or spend enough time drafting a plan, drawing your process. The way that you're going to go about in executing these ideas. Entrepreneurs are gut feeling type of personalities that just act and move forward and do things as they go, solve problems as they go.

et there and start creating. [: 00:18:00

Traci DeForge: talked about the facet of building out and managing essential budgets and looking at because of all of the project management that goes into the massive construction projects and land development and things like that.

How can an entrepreneur take some of those skill sets and apply it to any business and what are some of the critical things that are important when you're creating and managing the budgets for projects?

Jose Berlanga: Great question. Very interesting because I've seen this over the years, over and over when, where many entrepreneurs are more on the technical.

ey do. They understand their [: 00:19:00

So they tend to forget a little bit about understanding the fundamentals of putting numbers together. For example, what it is that is going to cause me to operate my business? What is going to really mean for me to go on my own? What is my break even point? What is my time worth? What are my personal expenses?

How much do I need to invoice every month in order for me to at least pay the bills of the company and my personal ones, you know, start understanding those fundamentals of fixed expenses versus variable, your cost of goods sold, understanding your break even point. They are basic, but once again, many of us forget to sit down and draw.

wn those numbers one by one, [: 00:20:00

There are so many businesses that are making money, and they don't know where the money is going. They're not keeping good track of what's coming in, what's going out. Why am I spending too much and on what? There are businesses that are not making money, but they're cash flowing. So we have to understand those fundamental differences between cash flow and profitability.

. It's a risky and dangerous [: 00:21:00

We just put it aside. And for a later date, because we think that understanding our industry might be enough to become successful. And that's a mistake. So without getting into details of obviously, every single business and every single industry has their own formats, their own cost structures in numbers and percentages and ratios and all of that.

That you need to understand. Thank God now with the social media, with the internet, with Google, there's so much access to information. We just have to look for it and know that it needs to be an integral part, a very, very important part of putting your business together.

Traci DeForge: Yes, yes. And yes, to all of that.

e a basic way. For people to [: 00:22:00

So a lot of people are already starting to think about 2025. What are some basic principles that you could share that have been helpful for you to avoid some of the pitfalls of budgeting and managing these potential expense and bottom line numbers?

Jose Berlanga: I'm going to start with a very basic one, which before we even get to the actual breakdown of some numbers, one of the rules that I follow.

lse for myself, for my other [: 00:23:00

You need to consult with, with your team, whether you're going to go into a corporation or an LLC, so on and so forth. Once you select that, you need to get some, even if it's the most basic software, QuickBooks, I don't care what it is, but I never spend a single dollar on a new entity until I have a software.

I have a, an account that has been established. I have the person that is going to run. The input, the numbers, even if it's yourself. So I do not begin my operation until I structure those very basic ones, because before you know it, a bunch of money has gone in and out of your account and you started losing track.

ore you start operating. And [: 00:24:00

Traci DeForge: I love that. And it is so important to have all these entities set up separately, that piece of advice, so smart, and going ahead and setting up the financials, I think, you know, in my own personal experience, for me, I'm so grateful in retrospect that I financially separated everything personal and everything business from the very start for all of the businesses that I've activated, because watching other people co mingle Personal funds and business funds.

arate all of that. So if you [: 00:25:00

So again, just, you know, another great tip for entrepreneurs. So digging into those essential steps, when you were talking about budgeting and mapping out. Some essential expenses and budget plans. What are some of those specific steps that you could share with us?

Jose Berlanga: Of course something important that one more one more uh area that could be forgotten is the value of time and We forget that perhaps we need to sell x number of units, which is called a projection For all the new entrepreneurs that need to forecast what it is that they need to produce and sell or invoice in order for them to cover their overhead and their expenses, both personal and business.

d we'll use the construction [: 00:26:00

We ended up spending more money on living on our living expenses than the profit we made on the actual house. This is a good example. So as a matter of fact, although we made money on the house, we lost money. In the company in time wise. So it taught me. Oh, well, in order for me to even just to break even, I need to produce two of these per year and I need to maintain each one of these expenses at whatever level.

f the analogies I use in the [: 00:27:00

Traci DeForge: Yes. And what are some of the biggest challenges that you think people face in getting to that, getting either to that place or overcoming that

Jose Berlanga: level of challenge? Well, sometimes we may get a little bit distracted with the actual cost of things. We may get a little confident. This is something that many entrepreneurs have excessive confidence in their ability to perform.

I'm going to sell more units. I'm going to negotiate better. I'm going to build something for a lower cost. We're not cautious. We don't build a cushion. We don't have cash reserves. We don't have line items for contingencies and things like that. And business rarely ever goes perfect or as planned or as budgeted.

So [: 00:28:00

So really understanding and paying a little bit of attention and most of all, investing the time. It's not rocket science, it's just neglected and ignored in many cases.

Traci DeForge: Jose, I want more time with you, this wasn't enough time, and I feel like if I feel this way, our audience absolutely feels this way. So if someone wanted to reach out, connect with you, learn more about you and your businesses, get your book, what is the best way for them to be able to do that?

r that. And I'm one of those [: 00:29:00

My website is josebarlanga. com, and of course, uh, I have a YouTube account where I do a lot of interviews and podcasts as a guest, and there are, uh, very, very, uh, very interesting interviews that I've been a part of, but that's pretty much it. My company, Onyx Land Partners, and And a few other websites, but Jose Berlanga.

com. My book is on Amazon. It's available to the public now.

n the Ask Brian podcast. And [: 00:30:00

So if you are searching. On your favorite listening platform is the ask brian podcast and we will also have links to jose's Website and the book on amazon and all of the things in the show notes for the podcast So make sure to check those out there You may not know this about me, Jose, but I'm known to pivot content during the show every now and then, and I would like this opportunity, um, as we have this time together, to pivot into something that I can tell just by looking at your website that family life is very important to you, and we've spent a lot of time today talking about making sure that you have time to.

To make sure you spend time on your budgeting and your planning and the running of your business and the operations of your business. But I feel like we would be remiss if we didn't spend a little bit of time talking about how important it is to also make your family a priority as you are doing all of work.

Can you share a little bit [: 00:31:00

Jose Berlanga: Sure, sure, sure. Uh, in, in nowadays we all try to find what our passion is. The why in what we do, the reason for us to search for these achievements and, and fight for these goals that has been my family, of course, I have a little bit of a different story than, than the traditional one, which is I divided sections of my life.

I think it happened by luck and in retrospect, it worked out because the first couple of decades in my career as an entrepreneur, I was single and I was able to focus so much on it. That by the time I was married and had kids, I now had the ability to own my time and be able to spend as much time and turn them into my priority.

it would have been possible, [: 00:32:00

And, and you have to become a very, very organized individual. That's it's easier said than done. But you have to figure it out, not spend one of the recommendations I give is be very frugal with every action in every reaction throughout your day in your business. Don't spend 30 minutes or an hour on something that you can do in five minutes.

s, with your meetings. Don't [: 00:33:00

Traci DeForge: Wow. I love that advice too. I mean, I, if you ever listened back to any of the previous episodes, I guarantee you're not going to hear me say, I love that. I love that. That was a good one. As many times as I have said that in today.

And for that, I truly, really appreciate all of the gems that you have shared with us today and I encourage anyone who is listening to the radio show live or the podcast, please go and visit JoseBelanga. com. Check out the link in the show notes if you want to confirm how to get there or just go straight there.

But just get there, because you, and get that book, because that's the thing, that's what I'm doing next after this show, is I'm going to order your book.

Jose Berlanga: That's great. Thank you so much.

kind of sad, Jen, that Peter [: 00:34:00

Jose, thank you so much for a wonderful episode of After Bryant, and you've been listening to K-H-T-S-F-N 98.1 am 1220 and hometown station.com.

us every Thursday on KTHS AM: 1220

That's ask b r i e n. com.