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Posts Tagged ‘A/E/C’

Through the years, I have been a member or an associate member of many trade organizations and have to admit, I have thoroughly enjoyed my time in each and everyone. Color me a ‘geek’ but I love networking, learning new aspects of our industry and attending tradeshows. My involvement in these organizations has afforded me many opportunities to indulge in all three.

A few years back, I received a call from one of my mentors, an incredibly successful real estate developer and owner of a large REIT. (Real Estate Investment Trust) Charles asked me if I would not mind meeting a friend of his just to talk and hash out ideas. Charles explained to me how he met James at Harvard’s MBA program and they, both being successful serial entrepreneurs, have stayed in touch through the years.

I met James for breakfast to discuss a company he is involved with and how they could build new business within the A/E/C marketplace. During our conversation, James introduced me to an Enterprise Forum that he chaired and invited me to attend one of their local meetings. I jumped at the chance and it proved to be, without a doubt, one of the most influential gatherings I have ever attended.

The night I arrived, I felt very much like a student attending fraternity rush on my own. The room was filled with some amazing people but the moment I walked in, one of the greeters introduced himself and asked me what I did. When I replied with, “I am Bobby Darnell and I have a small consultancy group that does business development, sales and marketing consulting for the A/E/C marketing place.” he grabbed me by the arm and said, “You need to meet Mike.” and proceeded to lead me across the vast room and introduced me to Mike.

After chatting with Mike for a few minutes, I learned that he just recently sold his construction company and was looking for something new to get involved with. (I later learned that he sold his construction company for $160 million dollars) We chatted, exchanged numbers, had a few meetings and that was really about all that happened.

The real impact of my time with this organization came when I attended one of their functions that pretty much resembles the NBC show ‘Shark Tank’ with the exception that the panel was offering a critique of the presenter’s business plan as opposed to capital. It was a most fascinating event.

I watched people present their business plan ranging from a one-man shop offering the latest and greatest metal drive (golf club) to a former television executive laying out his company’s plan to take on CNN. The insight the panel offered was amazing and worthy of a blog posting all its own.

However, the main nugget I walked away with was when one of the panelists, after hearing the pitch from the entrepreneur walked over to the whiteboard and wrote. ‘C.F.I.M.I.T.Y.M.’ and asked if anyone presenting knew what that stood for. No one did and I admit, being a ‘fan’ of acronyms, I did not either.

To sum it all up…’C.F.I.M.I.T.Y.M.’ simply means: ‘Cash Flow Is More Important Than Your Mother.’
Now, apart from any personal moral disagreements with that phrase, one would have a difficult time challenging the wisdom behind it from a business perspective.

We picked up a new client this week and are in the process of working with this owner as he begins to develop a transition plan to new ownership. On our laundry list of items to discuss and understand is the company’s cash flow since this company maintains and sells inventory in the A/E/C marketplace.

Selling, marketing, advertising, responding to RPF’s, building new business, etc. is all fun, necessary and vital to any business. But in chasing these important pursuits, we must not ignore the fundamentals of any business and that is staying on top of cash flow, revenues and expenses.

There is nothing I enjoy more than walking into a room, knowing I will soon be giving a presentation for either my company or on behalf of a company we represent with the goal of walking out with a commitment for new business.

Sales!

Revenue!

Closing Deals!

I love them all!

However, every business owner needs to always remember that the most important rule in business is that it’s not how much you make…it’s how much you keep.

Also, never forget…business is a verb!

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

Bobby can be reached at bobbydarnell [at] cmconl.com

http://www.cmconl.com

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Being a product of the south, I have heard and used more than my share of colloquialisms. I especially enjoy being able to sneak one in during a major presentation or group of ‘heavy hitters’ to see what, if any, reaction I get.

This past week, I was in the corporate office of a Fortune 200 company and was able to use one of my favorites, ‘Shuckin’ it down to the cob!’. For those unfamiliar with the phrase, ‘shuckin’ it down to the cob’ refers to shucking an ear of corn with so much enthusiasm that you are left with nothing but the cob. Translation: it means no frills, no extras, as bare bones of a proposition as one can find.

In this particular setting, we were negotiating a rather large contract for over 200 locations and the setting felt much like the stereotypical ‘buying a new car’ scenario with the price haggling bouncing back and forth like a Forrest Gump ping pong match.

It was close to ‘walking out’ time when I was able to remind the prospect that, regarding our price, we have ‘Shucked it down to the cob’. I was able to gain a double sense of satisfaction by (A) getting the business and (B) being able to use one of my favorite colloquialisms in such a setting.

This post is not so much about winning negotiations with corny, no pun intended, sayings but rather taking a look at one’s business, tossing out the fluff and focusing on that which is most important.

Here are a few ‘Shuckisms’ since my last post.

I had a meeting with a new client this week, and as we were reviewing the business development strategy we were putting together, the owner of the company expressed his excitement about all the new techniques we had gone over.

Shuckism: I had to remind him that results are the only thing that counts.

I was watching one of my new favorite shows, ‘Shark Tank’ and there was a candidate there seeking money for her store that catered to teaching children how to shop. If you are unfamiliar with the show, it is kind of like an ‘American Idol’ for entrepreneurs, seeking funding as opposed to a recording contract. After making a pitch for their business and stating an amount they are seeking oin exchange for ‘X’ percentage equity in their business, the ‘Sharks (Successful Venture Capitalists) either opt out or strike a deal.

It was obvious the lady had passion for her business but there really was not much of a model for success. All of the sharks opted out and while most were trying to be kind, one shark was brutally honest. He said, ‘Shut it down, I am the only one here who is your friend.”

Shuckism: There is a big difference between being in business and ‘playing business’.

A few years ago, we redid our kitchen. You know, the whole nine yards: granite counter tops, new appliances, cabinets, lights, hardwoods, etc. My wife did the budgeting as this was her project. I did give her a template to follow and she did indeed do a great job of researching all the costs.

When we reviewed the budget, I noticed she left blank the line marked ‘Contingency’. When I inquired, she assured me she thought of every cost and provided me her research to back up her claim. She was correct, her numbers for the labor costs and appliances and fixtures were spot on. I honestly could not think of any contingency so we left that blank.

Low and behold, when one is having a kitchen redone, the opportunity to cook in said kitchen is greatly reduced and the cost of eating out for three weeks could fall into your ‘contingency’ cost line.

Shuckism: If you are not sure, ask someone who has done it before. Measure twice/cut once applies to more than lumber.

There are so many great resources on the web…tons of great blogs, websites, discussion groups, e-newsletters, etc. If you are having challenges building new business…just ask.

I have had the pleasure of getting to know Michael Stone author of the construction blog ‘Markup and Profit’ (www.markupandprofit.com). He is very much like me in that he truly enjoys helping people build new business. The same with Mark Buckshon, author of the new book, ‘Construction Marketing Ideas’ (www.constructionmarketingideas.com). I would not be blogging if it were not for Mark. I know for a fact, both welcome inquiries and offer a lot of great information on their sites.

There are a lot of great resources out there that can help you build new business, you just have to take advantage of them. It may be the simplest small pearl of wisdom someone else shares with you that helps you land the next contract. Very much like trying to solve magic tricks, people often way over think the solution.

Shuckism: The answer is always ‘no’ until you ask.

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

www.cmconl.com

Bobby can be reached at bobbydarnell [at] cmconl.com

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WARNING: This blog does not have any pictures and may be considered lengthy by some.

I remember doing some channel surfing many moons ago and coming across George Carlin doing a bit about how all we really need in life is a ‘place for our stuff’. He went on to say that all life is about is finding a place for your stuff. Your house is really nothing but a place for your stuff with a roof. When you go on vacation, you take a smaller version of your stuff but you will still have a place for your stuff.

In the same spirit and thinking of Mr. Carlin’s wonderful piece on having a place for one’s stuff, I will contend that the parallel for business is not so much having a place for our stuff but, from Wal-mart all the way down to the sole proprietor, business is all about finding ‘shorter lines’.

Sure, we all have ‘stuff’ for our business. Where would I be without my laptop, my Blackberry, iPod player, copy machine, coffee maker, scanner and printers? These are merely tools to help me obtain what I truly desire – shorter lines.

Everything in business is a part of some type of line and we all want shorter ones. Think about it: You pull into the bank to make a deposit and there are four open drive-thru lanes. Which one do you pick? The one that has the shorter line. This also applies to checking out at the grocery store, going through security at the airport and any visit to your friendly Department of Motor Vehicles. We all want shorter lines.

In business, every single task we engage ourselves with involves a line of some kind with, I believe, the broader category being ‘time lines’. For each of the following, whatever process we choose, we cannot escape getting from ‘A’ to ‘B’ via a line of time.

• Complete stranger to loyal client

• Zero revenue to our first $1,000,000

• Profit margin from breakeven to 15%

• One location to ten branch offices

• Three employees to 50 employees

I think you get the picture. Every business person worth their salt is quite aware of the different lines involved in achieving one’s goals but what separates those possessing shorter lines from the ones with longer lines, is the amount of preparation put into each goal.

How does one reduce the timeline from meeting a complete stranger to having that person as a loyal client from 10 months down to three?

How does one shorten that timeline to seven figures in revenue from three years to one?

The simple answer is planning.

This past week, I am happy to report that we moved four companies from our ‘Prospects’ folder to our ‘Client’ folder…each being an entity in the A/E/C marketplace. If I had to highlight one item as the most profound and common issue of every single company we have worked with it would undoubtedly be how amazed I am to find the number of companies who make their living designing or following a set of plans and specifications…yet do not plan for their business.

What would the timeline be to build a 10,000 SF retail store without plans and specs versus the timeline with plans and specs?

What would the timeline be to build a million dollar business without a plan versus having one?

The late great coach Paul “Bear” Bryant once said, “Have a plan. Follow the plan, and you’ll be surprised how successful you can be. Most people don’t have a plan. That’s why it’s is easy to beat most folks.”

The shortest distance between two points will always be a straight line. The best way to make that line shorter is to plan for a shorter line.

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

http://www.cmconl.com/

Bobby can be reached at bobbydarnell [at] cmconl.com

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I went to college in the 80’s when a couple of things happened in my life that are still with me today. The first, I became greatly fascinated and interested in the study of Philosophy and secondly, music changed.

I still study philosophy and from time to time still listen to some of the music from that era. (Don’t forget, though they 80’s did give us the music and haircuts of ‘A Flock of Seagulls’ we also got Springsteen’s ‘Born in the USA’ and R.E.M.)

I went to school in Athens, at the University of Georgia, where, at that time, the local music scene was getting quite the attention thanks to The B-52’s, R.E.M., Pylon, Widespread Panic, The Normaltown Flyers and a few other bands.

I also worked in a record store (Remember those?) and played in a rock and roll band but so did, it seemed, every other person in Athens at that time. Music was, and still is, a very big part of my life.

I remember one day, at work, I was able to engage in two of my favorite subjects in one conversation, music and philosophy. On that day a co-worker who was really into Madonna, so much so to the point that she dressed like her just about ever day, commented to me that Madonna was the best singer in the world.

Not being the fan of Madonna as my co-worker, I challenged her to define what she means by ‘best singer’ in the world. This led to a music/philosophical discussion which included such topics as the ‘Definition of terms’ and argumentum ad populum (appeal to the populace).

Since my co-worker could not define what makes someone the ‘best singer in the world’ all she could do was point to a poll where Madonna was voted ‘Best Female Singer’.

I say all that to say this: Today, this blog was voted ‘Best Construction Blog’ in a contest hosted my Mark Buckshon’s ‘Construction Marketing Ideas’ and the final results are that ‘Building New Business’ was voted at the top and I am truly flattered.

Amongst my ‘competitors’ are some really, really great blogs. During these past few weeks, I learned of some really good ones that were new to me and am happy that they ones I already were aware of, and have had links on my blog space for some time, did quite well. (See the ‘Links’ tab at the top of this blog.)

I was not that familiar with Michael Stone’s ‘www.markupandprofit.com’ until the contest. Michael has been blogging before I knew what one was! He has a great blog and it is full of wonderful information. Michael’s blog comes from the perspective of someone who not only has the formal construction education, but has the real world experience as well. I will definitely be adding his blog to my ‘list of links’.

I have known Mark Buckshon for five years and how we met makes for a great ‘networking’ story in and of itself. I read Mark’s ‘Construction Marketing Ideas’ nearly every day and it is the top entry of my ‘Newsreader’. I did not know about this contest until I saw that I was leading it. I believe Mark summed it up quite well, in today’s announcement…I sell my ‘networking skills’ for a living…that is what I do and that is what I teach my clients.

Anyway, I am flattered each time I receive an email, comment or phone call from a reader. I am flattered to have been nominated and to have been able to participate in Mark’s contest and I am especially flattered to have been at the top of the voting. That said, do I believe this blog is the best construction blog? Well, let me say that I don’t believe Madonna was ever the best singer in the world.

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

http://www.cmconl.com/

Bobby can be reached at bobbydarnell [at] cmconl.com

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Welcome to 2010!

No, this is not an entry on the three most important aspects of real estate but, I am borrowing this item after meeting with two business owners seeking to ‘reinvent’ themselves for 2010. Naturally, both are involved in the A/E/C marketplace, both have been very successful since starting their business and both have been profoundly impacted by the state of our current economy.

Way back when Jack Nicklaus was the undisputed king of golf, he would start out every season with his golf coach by reviewing the fundamentals…how to grip the club, proper stance, etc. When I first became aware of this, I found it pretty amazing and close to unbelievable. Here we have the greatest golfer in the world, having his instructor show him how to hold a golf club. Jack would then go through all the fundamentals of his swing…his stance, his take-back, the club alignment at the top of his swing, the down swing and the follow through.

While I cannot think of a better time for companies to be considering additional ways to build new business, I can also not think of a better time to review the fundamentals of how you got to where you are.

So, what does this have to do with the famous, ‘Three Most Important Factors about Real Estate’? If you are indeed one who is working on the 2.0 version of either yourself or your business, never forget or lose focus on the ‘critical mass’ that got you where you are today.

When I am approached by a prospective client, to get a better understanding of their needs, I typically make a few simple inquiries, one for example: Tell me, categorically speaking, what are the top five groups of your client base and how much does each represent of your total revenue? Rarely do I get an immediate answer.

Something as fundamental as being able to define your clients as ‘A, B, or C’ where ‘A’ represents 40% of your revenue while ‘B’, 25% and C 20% with the rest being several smaller components of ‘D’ is the business owner’s equivalent of ‘griping the golf club.’ when it comes to target marketing.

Location, Location, Location refers to not just real estate. If you don’t know the ‘location’ of your top three types of clients, then how in the world are you going to be able to effectively troll those waters for new business?

I have had some conversations with business owners that remind me of the old joke about the guy searching for his lost wallet under the streetlight. A stranger walks by, asks the man what he is looking for and then decides to help. After somewhat lengthy and futile search the stranger asks, “Are you sure you lost your wallet under this streetlight?” The response he gets is, “Oh no, I did not lose it here but the light is so much brighter, I figure It would be easier to find.”

Never stop looking for new ways to increase revenue but if you are an architect, engineer, general contractor, sub-contractor or building product manufacturer (the categorical breakdown of our client base) I would not consider adding baking cakes, chauffer services or pet sitting to your menu of ways to build new business. Review the fundamentals of how you got to where you are, know your clients and get creative. Just don’t stray too far from where you ‘lost your revenue’ and start looking in places you shouldn’t just because the light there is better.

Location – Are you able to readily identify your competitive geographical area?

Location – Are you able to readily identify your ‘critical mass’ prospects by category?

Location – Are you able to readily identify your marketing success? (Turning prospects into clients)

Now, the first two are probably easier to ‘locate’ but the third may require a bit more digging. Here is where I refer back to my entry on CRM. I honestly believe the single biggest area of opportunity companies over look when it comes to resources for building new business is how they manage/mis-manage their data.

I can actually think of a couple of more ‘locations’ worth identifying but choose to focus on these three for now. With margins tighter than ever, new opportunities as scarce as ever, quality data becomes that much more important.

Do you need to get a new ‘grip’ on the basics such as your prospects, your clients, your pricing structure? There is no better time than now to start shoring up this very important aspect of your business.

If you are going to play golf on Friday, you check the weather forecast. If you are a buying a stock, you check past performance. If you are buying a new washing machine, you look at ‘Consumers Reports’.

Is your own company’s knowledge base too close to skid row or is it a penthouse with a view of the mountains?

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

http://www.cmconl.com/

Bobby can be reached at bobbydarnell [at] cmconl.com

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The time between Christmas and New Year’s has always been a period of reflection for me. As we all chalk up one more trip around the sun, it is important to me to look back on the past 12 months, sift through the good and the bad and find those useful lessons I can take with me to make the upcoming year even better.

To say that 2009 has been a challenging year would be an understatement for many. In spite of the economy, financially, we have had a very good year and considered ourselves very blessed. That said, I have witnessed others who would probably not characterize their year the same; which leads me to the following joke…bear with me.

A doctor decided to take off early, head to the golf course and try to find a group in need of a ‘fourth’ and sneak in 18 holes before supper. He was lucky as he was quickly paired with a lawyer, engineer and insurance salesman.

After some small talk and a few holes, the doctor asked the attorney if, because of his line of work, he too gets asked a lot of questions seeking advice for free, explaining that he is often queried by friends and acquaintances about small ailments, here and there.

The attorney assured the doctor that this happens to him all the time and he finally found a way to respond. “I simply answer their question and when I get back to the office, I send them a bill. That usually stops those seeking free advice.”

The doctor, thought, “Wow…that is so clever, I will have to remember that.”

The group finished their game, exchanged business cards and after having an enjoyable round all agreed they would have to play together again…

…that was until the doctor got to his office on Monday and found a bill from the attorney.

The idea for this offering came from someone who emailed me and wanted to chat. I replied that I am always open to ‘talking shop’, tossing around ideas, learning more about their business and encouraged the person to give me a buzz when they had the time.

More than a week passed and I finally received a voice mail from the person to which I called back at my first opportunity. In our discussion, the person began with, “I finally got the nerve to call…” It was during our chat that I realized that maybe this person has heard the above joke before and was afraid they would soon be on the receiving end of an invoice from me.

Hardly!

So who is this guy behind the curtain of this blog? I am just one who has been very blessed in my career and has been able to take my years of experience, combine it with a ‘healthy dose of OCD’ and found a way to do what I believe is my calling. I truly love what I do and I am truly passionate about entrepreneurs, business, the free-enterprise system and capitalism. I thrive on seeing someone take the necessary risks to start their own business and flourish. I am a big believer that this is still the ‘American Dream’.

I have always said that one’s goal in sales should be to have an unlisted phone number. That’s right, an unlisted number. You build up your client base so large, that you cannot possibly take on any new customers and you just sit back, answer the phone and take orders.

Until then, I will continue to put my contact information at the end of each blog posting for a reason. I sincerely enjoy hearing from readers and unlike the lawyer above, you will not receive an invoice from me for just talking shop. I am happy to say that I will be calling a reader today and we will discuss a few ways they may be able to ‘shave a few strokes’ off their game.

So as long as you continue to see my email address at the end of this blog, drop me a line if you like. I promise you won’t receive an invoice and who knows, we may just find at the end of the exchange, a way we can both build new business…if not today, maybe next year.

If you are one of those who will file away 2009 as a challenging year, it is my sincere hope that the upcoming year will be better in all aspects.

Happy New Year everyone…thanks!

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

http://www.cmconl.com/

Bobby can be reached at bobbydarnell [at] cmconl.com

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I know a guy that is never wrong. Ever! I kid you not, if he hits a curb pulling into the grocery store, it is the @#$% engineer’s fault for not knowing how to design a parking lot.

Now, before any clients or prospects get the wrong idea (sorry, I could not resist) allow me to explain what I mean when I say I love it when I am wrong…I am not talking about ‘not in accordance with what is morally right’ but rather ‘in error’.

The reason I enjoy being wrong is that, through the years, as I have often been wrong, I learn and grow from each experience where what I thought to be true, turned out not to be so.

Therefore, in order to share my “growth” experiences, here is a list of things where I was quite wrong.

Sushi – I use to think that the only reason anyone would eat sushi is so they could say, “I eat sushi.” That there was no possible way it could, in fact, be something somebody would want to eat.

I was wrong.

Napoleon Dynamite – The friend who told me about this movie, in my mind and at the time, way over-sold it. There was no way it could be as brilliant and funny as he described and, to be honest, the first time I watched it I was only ‘half wrong’. However, after the second, third, fourth and fifth times…I revel in its humor and brilliance. (Vote for Pedro!)

I was wrong.

Bob Chinn’s Crab House – I have many favorite eating establishments in Chicago but one in particular was a Polish restaurant on Milwaukee Avenue called ‘Irene’s’. Years ago, before children, I happened to be in Chicago on business at the same time Lane, my wife, was and we both wanted to go to our favorite place. At that time, her’s was a place called Bob Chinn’s Crab House. I was convinced here was no way I would enjoy my meal there as much as I would Irene’s. Naturally, I lost that argument and am glad I did.

I was wrong.

Nirvana and Green Day – I will lump both of these together because, no pun intended, they are the same song, different verses. The popularity of each band preceded anything I had heard from either regarding their music. I convinced myself that there was no way there could be an ounce of real talent amongst them before hearing one single song.

I was wrong.

Time Management Course – I enjoy telling people that I have found a way to make a fairly decent living out of my ‘healthy amount of OCD’. Back in the day, before Palm Pilots were the rage, we were all encouraged to sign up for a time management course with a local company and the ‘trophy’ from attending was being able to walk around with this HUGE leather, three ring binder.

If you can remember Dr. Suess’ classic, ‘The Star Belly Sneetches’ it was very much a local case of ‘those with stars and those without.’ I prided myself on being organized ‘without’.

Push came to shove and I did end up taking the course, getting my large binder and loving the processes I learned then and still use today.

I was wrong.

Brazilian Jiu Jitsu – I had a passing fancy in high school and college with Tae Kwon Do and Aikido. Then, about ten years ago, I started reading about this family from Brazil, the Gracies, who had developed their own form of jiu jitsu and my first thought was, there is no way this new martial art can be all that. In order to keep this blog offering from going on and on and on…I will just say that my passion for Brazilian Jiu Jitsu has yet to find its match as far as items on my list of activities that are not work related.

I was wrong.

I could offer many more concrete examples of where I thought I knew the truth only to be shown otherwise. I am happy to report that the amount of time between such incidents has grown because I have learned to be more open-minded to new thoughts and ideas. I know this past year, I have learned a great deal that has helped build my business in ways I would not have thought possible…thanks in part to those gentle reminders of when I was wrong before.

I believe 2010 will be a better year business-wise than 2009…but I could be wrong.

If your sales are down or you have hit a sustained revenue plateau or even losing market share, what are you doing differently? What do you plan to do differently? Have you pulled out your business plan and reviewed it? Do you have a business plan or are you one of those who plan on one day having a business plan?

In today’s economy, as we try to build new business, is there any better time than today to look at new ways of doing things, listening to new ideas, trying new techniques, moving towards the 2.0 version of your company and/or yourself?

I don’t believe there is a better time than now to possibly prove ourselves wrong. I also don’t believe I am wrong about this one.

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

http://www.cmconl.com/

Bobby can be reached at bobbydarnell [at] cmconl.com

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