Business Pulse Fall 2016

BUSINESS EXPO OCT. 26, ECON FORECAST NOV. 17, INDUSTRY TOUR DEC. 8

ERCHINGER-DAVIS Creating hope for the homeless

MAGAZINE FALL 2016 Sarah Rothenbuhler, Owner/CEO, Birch Equipment Rental & Sales

Whatcom Professional Woman of the Year

Meet the 6 finalists

How did Birch get from near shutdown to industry elite?

Tree climbing and paddleboarding…what?

A chat with entrepreneurial Brothers Aarstol

Why business needs to pay attention to November ballot The Publication of The Whatcom Business Alliance

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Matt Smith Trident Marine Enthusiastic dad Geoduck farmer Aspiring guitarist

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TABLE OF CONTENTS

34

WBA INDUSTRY TOUR: AN INSIDE LOOK AT GEAR AID

SIGN UP ONLINE at WhatcomBusinessAlliance.com to take a walk through the warehouse where Gear Aid manages more than 300 products (with more rollouts on the way soon).

Their sales teams, marketing, and product development make up a large part of the 45-person workforce. (Photo courtesy of Gear Aid)

12 26 34

SIX FINALISTS HIGHLIGHT WHATCOM WOMEN IN BUSINESS 34TH ANNUAL AWARD THE NEXT PROFESSIONAL Woman of the Year will come from among an eclectic array of business sectors the candidates own: community web-based journalism, dancing, jewelry, therapy horses, real estate, and physical fitness. The WWIB also will award four scholarships to women advancing their education.

BIRCH SAT ON THE BRINK OF FAILURE AND A DAUGHTER WALKED IT BACK SARAH ROTHENBUHLER’S family business, Birch Equipment Rental & Sales sat on the brink of getting purchased or closing down back in the late 1990s. She said no way. Along the path of resurrecting it and building it into a national power in its field, Rothenbuhler tore doors of their hinges, instituted magnanimous employee benefits (stay 20, wear a Rolex!), and expanded reach as far as East Russia with 1,300 items.

GEAR AID SAYS ‘MAKE OUTDOORS YOURS’…

DISPLACING RETIRED MCNETT BRAND LIZ MATHIAS is the interim CEO, also continuing in her role as chief operating officer, who is driving the branding of Gear Aid so you can “Make Outdoors Yours.” The brand displaces a longtime community family business name, McNett. With new product rollouts from among its 300-plus items, Gear Aid spent the summer on the road at trade shows in the transition of continuing to make customers’ experience in the great outdoors safer, in full repair, and more fun. (At right, Liz Mathias, left, and Kristy McKinnon)

38 & 72

COLUMNISTS TACKLE CONTROVERSY OVER PROPOSED HOTEL AND CLEAN AIR ACT

4 | BUSINESSPULSE.COM

TWO POLITICAL HOT BUTTONS get treatment: The three Port of Bellingham commissioners weigh in on a delayed – not dead as many perceived – discussion of a Harcourt Ltd. proposal to build a $30M hotel/convention center on the Downtown Waterfront redevelopment site….And, the state’s new Clean Air Act pros and cons, with two guest columnists debunking the ways the state is managing it – Kris Johnson (Leading Off, p. 10) and environmentalist Todd Myers (p. 73).

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TABLE OF CONTENTS CORRECTIONS, PLEASE….DARITECH AND PROPACK

In our Summer 2016 issue (July) we incorrectly identified this image of a Lely Astronaut Robotic Milker as invented and manufactured by DariTech in Lynden. Lely invented and manufactures this robotic milking machine; DariTech is a distributor of the product. (photo courtesy of DariTech) We also had incorrect ID on two other images: In the article about ProPack in Blaine, Alex and Phil Snyder are cousins, not brothers, and the photo identified mistakenly as Shawn Buck is staffer Jeff Rudder.

We sincerely apologize for these mistakes.

40 46 52

ENTREPRENEURIAL ENTERPRISE: PART 1 – THE AARSTOLS LOCAL AARSTOL BROTHERS, Ryan, 49, and Stephan, 47, arrived on different paths. Now each is building on a $10M-a-year foundation and expanding. A conversation with them reveals how Ryan operates WesSpur, where he started working during college at WWU, selling tree-climbing equipment by ecommerce; Steph – who appeared on Shark Tank and Beyond Shark Tank – explained how he built Tower Paddleboards by plunging into a “beach lifestyle” brand of products.

EE: PART 2 – DAVID PILLINGER, INDEPENDENT PUBLISHER A WORLD-TRAVELING PHOTOJOURNALIST during three decades of managing news and sports photos for some of the world’s largest agencies, Pillinger has settled into his own publishing franchise with Southside Living in Bellingham. He also serves as a district manager for the parent company, Best Version Media out of Milwaukee, helping others with startups.

NEW LIGHTHOUSE MISSION CEO OFFERS UP A BUNDLE OF STORIES – HIS OWN, AND THE HOMELESS HE SERVES AROUND THE WORLD and back, Hans Erchinger-Davis details in our regular Personally Speaking his adventures in globetrotting, trying on a jet-set business lifestyle, plunging into the arts (painting and filmmaking), and attending seminary. Finally, all roads led back to home – Bellingham, and the Lighthouse Mission, where as new CEO he’s implementing new ideas like Good Neighbors and expansion (WBA Member News, p. 66).

For editorial comments and suggestions, please write editor@businesspulse.com.

Business Pulse Magazine is the publication of the Whatcom Business Alliance. The magazine is published at 2423 E. Bakerview Rd., Bellingham, WA 98226. (360) 746-0418. The yearly subscription rate is $22 (US). For a free digital subscription, go to businesspulse.com or whatcombusinessalliance.com. Entire contents copyrighted © 2016 – Business Pulse Magazine. All rights reserved.

POSTMASTER: Send address changes to Business Pulse Magazine, 2423 E Bakerview Rd., Bellingham, WA 98226.

6 | BUSINESSPULSE.COM

Publisher Tony Larson Editor/Writer Mike McKenzie Feature Writers Sherri Huleatt Mary Louise Van Dyke Guest Columns Randall Benson: Lean Practices Janelle Bruland: Management Jacob Deschenes: Investing Kris Johnson: AWB/Nov. Ballot Todd Myers: Environmentalism Bob Pritchett: Book Excerpt CJ Seitz: Small Business Erin Shannon: Small Business

Tech Help/Big Fresh: Technology Rose Vogel: Human Resources Mallina Wilson: Real Estate Cover Photo Courtesy of Birch Equipment Photography Sherri Huleatt Dawn Matthes Mike McKenzie Courtesy Photos Assn. of Washington Businesses Birch Equipment Rental & Sales Whatcom Boys & Girls Clubs of DariTech Gear Aid Louis Auto Glass

Dawn Matthes Photography Marc Morrison/BP Cherry Point Radley Muller/Southside Living PeaceHealth St. Joseph Medical Center Phillips 66 Ferndale Refinery Port of Bellingham Graphic Design/Layout MacKenzie Unick Ad Sales Jon Strong Subscriptions Janel Ernster Administration Danielle Larson

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Facilitating Business Prosperity & Community Prosperity whatcombusinessalliance.com

The Whatom Business Alliance is a member organization created to enhance Whatcom County’s quality of life through the preservation and creation of healthy businesses and good jobs. We encourage, support, facilitate and advocate on behalf of local companies in every industry who are working to retain jobs; and are interested in expanding their operations and startup companies interested in locating in our community.

EXECUTIVE COMMITTEE

Jeff Kochman President

John Huntley President/CEO

AMBK

Mills Electric, Inc.

Board Chair Jane Carten President/Director

Doug Thomas President/CEO

Marv Tjoelker Partner/Chairman

Bellingham Cold Storage

Larson Gross PLLC

Saturna Capital

BOARD OF DIRECTORS

Ken Bell President

Pam Brady Director

Janelle Bruland President/CEO

Tyler Byrd President/CEO

Jeremy Carroll Vice President

Best Recycling

NW Govt. and Public Affairs BP Cherry Point

Management Services NW

Red Rokk Interactive

Dawson Construction

Scott Corzine Major Accounts Executive

Andy Enfield Vice President

Sandy Keathley Founder

Tom Kenney Regional President

Ben Kinney President/CEO

Puget Sound Energy

Enfield Farms

K & K Industries

Washington Federal

Keller Williams, NVNTD

Bob Pritchett President / CEO

Brad Rader Vice President

Becky Raney Owner/CEO

Sarah Rothenbuhler Owner/CEO

Faithlife Corp

Uptrail LLC

Print & Copy Factory

Birch Equipment

Jon Sitkin Partner

Billy VanZanten CEO

Josh Wright VP/Broker

Chmelik Sitkin & Davis P.S.

Western Refinery Services

Bell Anderson Insurance

Larry MacDonald General Manager The Social Live Team

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LEADING OFF: NOVEMBER BALLOT ISSUES Kris Johnson | President/CEO Kristopher T. Johnson leads the AWB, the state’s oldest and largest business association, and which he has been part of since 2009. It represents about 8,000 small, medium, and large employers. He formerly headed the St. Paul, Minn., Area Chamber of Commerce where he played a key role in the Republican National Convention in the Twin Cities in 2008. Previously he was CEO of the Tri-City Regional Chamber in Washington state, covering 1,250 businesses from five states.

Employers can’t afford to sit out this election season

A

s I’ve traveled the state as part of the AWB’s small-business listening tour I’ve noticed campaign signs for nearly every race and political persuasion, from president to county precinct officer.

In this era of divided politics it’s tempting to dismiss the signs as visual clutter, and to dismiss the races they represent as irrelevant for our daily lives. Nothing could be further from the truth, particularly if you own or manage a business.

This November, voters will not only cast ballots for the high-profile positions of president and governor, but they will decide on several ballot initiatives that directly impact employers, such as: • Whether to raise the statewide minimum wage; • Whether to impose a new carbon tax, and • Whether to create publiclyfunded state political campaigns.

Also on the ballot: Every seat in the state House of Representatives, half of the seats in the state Senate, and statewide offices ranging from lieutenant governor, secretary of state, and auditor to superintendent of public instruction, public lands commissioner, and three state Supreme Court justices.

So it’s worth taking the time to understand the issues and to get to 10 | BUSINESSPULSE.COM

know the candidates, especially those in your legislative district.

Recently the AWB board of directors voted to oppose three ballot initiatives: • Initiative 732, which would impose a carbon tax on employers; • I-1433, which would raise the minimum wage to $13.50 and mandate paid sick and safe leave for all employees, and • I-1464, which would create taxpayer-funded political campaigns.

We share the I-732 goal – reducing carbon emissions – but don’t believe that raising the cost of energy for some of the state’s best employers is the best way to accomplish it. A better approach is to work with employers, whose innovation already has made Washington state one of the greenest economies in the world. Let’s continue finding ways to reduce carbon emissions without driving up the cost of energy for families and businesses.

We oppose I-1433 because of how it will impact job growth, particularly for teens and youth whose unemployment is already too high – and it’s bound to increase if employers are forced to choose between hiring a new, inexperienced worker or someone a few years older with some experience.

The minimum wage should be a starting point. Quickly and arbitrarily raising it to $13.50 an hour could have negative unintended consequences, including driving some industries out of the state, and removing an impor-

tant rung on the ladder for those seeking to enter the workforce.

[EDITOR’S NOTE: Read an analysis of the same issue by Erin

Recently, the AWB board of directors voted to oppose three ballot initiatives: Initiative 732, which would impose a carbon tax on employers; I-1433, which would raise the minimum wage to $13.50 and mandate paid sick and safe leave for all employees; and I-1464, which would create taxpayer-funded political campaigns.

Shannon of the Washington Policy Center on page 75.]

We are opposed to I-1464 because the system, requiring taxpayers to fund political campaigns through a voucher system paid for with a new tax, could be manipulated by well-funded campaigns.

Politics is often messy and not always fun, but employers need to take the time to become informed.

WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

THE WWIB held this dinner and evaluated the six 2016 award nominees. Each spoke before the group. One will become Whatcom Professional Woman of the Year on October 28.

Whatcom Women in Business

CELEBRATES 34th annual Professional Woman of the Year

By Business Pulse Staff

F

or the 34th consecutive year, Whatcom Women in Business (WWIB) celebrates its mission and values Oct. 28 with its annual naming of the county’s Professional Woman of the Year.

At their dinner and auction, sponsored this year by the Whatcom Business Alliance at the Four Points Sheraton in Bellingham, the WWIB will announce the award recipient from among six finalists (see pages 14-25 for the stories of their successes).

12 | BUSINESSPULSE.COM

Established in 1978, WWIB is one of the oldest, most comprehensive source for businesswomen to network and develop career and business referrals. The organization promotes a positive image and offers programming to help develop leadership skills, strength through mutual support, mentoring, and other opportunities for business and personal growth.

Membership honors four areas: leadership, professionalism, mentoring, and community, including the awarding of funds to various local charitable causes.

Another highlight of the awards dinner and auction, which sells out with about 300 attending, is the awarding of four $5,000 college scholarships to Whatcom County women furthering their education.

Past Winners:

Whatcom Professsional Woman of the Year 2015 Emily O'Connor Executive Director, Lydia Place

1996 Betty Vargas Signs Plus / Tint Plus

2014 Carolyn Saletto Owner, Gym Star Sports Center

1995 Anna Williams Hawley's

2013 Karen Barlean CFO, Barlean’s, Organic Oils LLC

1994 Betty Young WWU

2012 Wendy DeFreest Owner, Avenue Bread & Deli

1993 Karen Hulford Georgia Pacific Corp.

2011 Gwyn Howat Operations Manager, Mt. Baker Ski Area, Inc.

1992 Anita Jackson Early Childhood Opportunities N.W.

2010 Nancy Ivarinen Northwest Justice Project.

1991 Vi Zurline Bellingham Travel

2009 Debbie Gann Director/Owner, Home Attendant Care

1990 Karen Frederick Limber Lady Body Wear

2008 Lynne Henifin Henifin Const/NW Safety Signs/ Complete Trade Services 2007 Alta McClellan Hardware Sales 2006 Maureen Enegren Executive Director of Mt. Baker Chapter of American Red Cross 2005 Kathy Cross Laser Point Awards & Promotions

An Executive Board manages the group’s activities, comprising: President Jamie Smeall; Past President Tally Rabatin; Secretary Bridget Reeves; Treasurer Renee Aase; VP Programs Diane Padys; VP Membership; Cathy Campbell; VP Publicity Natalie Ransom, and Member Liaison Trudy Shuravloff Chair of the upcoming awards dinner and auction is Lisa Chovil. Brenda Bringhurst serves as sponsorship chair. Sharon Yonally oversees the scholarship program, and Julie Guay handles charities.

2002 Erin Baker Erin Baker's Wholesome Baked Goods 2001 Phyllis McKee Sterling Real Estate Group 2000 Kay Moquin il Fiasco 1999 Pat Rose Rose Construction 1998 Judy McCoy Camtec Precision, Inc.

1989 Priscilla Sabin Convention & Visitor’s Bureau 1988 Ann Gossage Towne & Country 1987 Molly Malone Molly Malone’s Service 1986 Dee Robinson Village Books 1985 Kathy Wesley AM/PM Mini Mart 1984 Orphalee Smith CPA 1983 Eunice Cole Star Surgical Supply 1982 Jody Bergsma Bergsma Gallery 1981 Jeanne Smith The Cellar Last year’s scholarship recipients: Marianne Brudwick, Jessica Reid, Molly Whipple, and Mikaela Seegers.

1997 Debra Jones Brown & Cole Stores WHATCOMBUSINESSALLIANCE.COM | 13

WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Caitlin Walker Setting a high bar in fitness and achievement

uses low impact movement set to music. The barre3 studio signature approach to teaching is designed to “give clients a rewarding endorphin high and a deep muscle burn,” Walker said, “without pain in areas of the body prone to injury.”

Walker is motivated by her clients and following their journeys as each works on goals at the studio. “The warmth of our community is infectious. We genuinely care about each person that comes through our doors,” she said.

Through the studio Walker has found ways to interact with the community. In November the studio plans to hold its annual collection for the Bellingham Food Bank as clients earn free classes in exchange for donations of nonperishable food. Walker also partnered with Agape Home

By Mary Louise Van Dyke

C

aitlin Walker discovered just how many hats a business owner wears soon after opening barre3 Bellingham fitness studio in 2012...many.

Assisted by one other person, Walker immersed herself in Business Fitness 101. Teaching classes, handling the front desk duties, hunkering down at the computer to updating social media and administrative accounts, and using cleaning equipment to keep the facility clean and glowing.

All were necessary duties to ensure the success of a company where clients can lose weight, gain self confidence, and/or just become better versions of themselves. “When I discovered barre3 I knew this would be a career I could love while still balancing time for family and the lifestyle I enjoy,” she said Walker focuses on teaching classes and partnering with her team on the other aspects of running a business. She balances her work life with spending time with her husband, their two children, and their dogs, and she volunteers as a field trip driver and chaperone for her son's school class. barre3 – a national franchise of just 8 years, and already with about 100 studios – combines three fitness disciplines: ballet barre, yoga, and Pilates for a full-body workout that 14 | BUSINESSPULSE.COM

“The warmth of our community is infectious. We genuinely care about each person that comes through our (fitness center) doors.”

CAITLIN WALKER

for women and children and she taught a class to women staying there.

She also enjoys mentoring her staff and supporting them both at work and in their nonworking pursuits. “They inspire me and I hope I do the same for them,” she said.

Walker was born in Washington state and spent part of her childhood in Thailand and later in Costa Rica. She attended Western Washington University. Her diverse professional background includes having worked as a personal trainer and in banking.

She took some time off to focus on her children before opening her Bellingham studio in Barkley Village. She took about 20 years’ experience in the physical fitness industry into the venture that focuses on three disciplines – creating good nutrition, fitness, and community.

“Owning my own business gives me flexibility,” she said in assessing her life style. “Having the support of barre3 headquarters (Portland, Ore.) and the strength of my team has allowed me to operate a professional business, to be present with my family, and to maintain the lifestyle I want to enjoy with them.”

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WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Julia Bozzo Giving people a leg up at NorthWest Therapeutic Riding Center

By Mary Louise Van Dyke

V

olunteers give a young rider a leg up at NorthWest Therapeutic Riding Center in rural Whatcom County, as Julia Bozzo watches intently. A few words of encouragement from her, and the rider is seated in the saddle and ready for a lesson in horsemanship.

That scene repeats itself daily at the riding center with Bozzo, the founder (1993) and executive director, at the heart of activities. Riding center staff and more than 100 volunteers share her passion for helping individuals with disabilities discover the pleasures of riding horses as therapy.

Running a nonprofit riding stable may seem an offbeat way to make a living. Bozzo worked full-time without taking a paycheck for the center's first 10 years. Her job tugs her in all directions from selecting, training, and caring for the horses, to overseeing the riding programs and volunteer recruitment, meeting the high standards of PATH (Professional Association of Therapeutic Horsemanship, an international organization), and working with the center's board of directors Bozzo says she's adored horses her entire life. At 12, she used the proceeds from a newspaper route to purchase 16 | BUSINESSPULSE.COM

Nugget, her first horse. That decision led to meeting a person who helped found NARHA, (North American Riding for the Handicapped Association), a forerunner of PATH. She realized riding was a pastime that others could love and benefit from – if given the opportunity. “I love working with the horses and sharing the opportunity to work with the horses, because many people don't have access to that (possibility),” she said.

Bozzo and her husband, Mike Bozzo, moved to Whatcom County in 1991. Two years later they opened the Northwest Therapeutic Riding Center on their 5-acre property on Kelly Road. They started with a therapy horse, two aspiring riders, and determination to expand opportunities for Whatcom County residents.

During the 23 years of operation the center has expanded to seven horses, offering therapy rides for about 60 riders a week. Staff remains small, bolstered by about three dozen volunteers on site virtually all the time.

The center offers riding opportunities to patients with physical, emotional, and cognitive disabilities of all ages.

“I love working with the horses and sharing the opportunity to work with the horses, because many people don't have access to that (possibility).”

JULIA BOZZO

Their website says that riders have ranged in age from 2-74.

NWTRC is accredited as a Premier Center, and Bozzo and her daughters, Deanna and Gina, are all certified PATH instructors. About 100 volunteers assist with the horsemanship programs and with annual events such as the Rider Cup Benefit Golf Tournament. A huge fund-raising dinner also supports the program.

Participating in the riding programs gives riders the opportunity to interact with horses – and to participate in fun activities – just like other people they know, according to Kaler Crane, who shared the story of his daughter Madison learning on the center’s website how to ride.

Bozzo's job requires making sure that the therapy horses

have optimal temperament and training for their job before riders ever get into the saddle. The center's herd of seven therapeutic horses includes newcomer Leonardo, a registered American Quarter Horse gelding, and long timers such as Vincent, a Trakehner/Quarter Horse mix, and two Norwegian Fjord geldings – Kurt, and a loaner, Henry T. Fjord.

Three of Bozzo's horses were awarded therapy Horse of the Year, and Bozzo was honored as Volunteer of the Year, all by PATH. She has a degree in Agriculture and Horse Production from Wilmington (Ohio) College and she did some graduate work in Animal Science at New Mexico State University.

Mike Bozzo, her husband, during his career at Port of Bellingham and, now, Whatcom Transit Authority found time to design and build most of the facilities and he still volunteers at the center.

Gratification comes in large doses. “Our participants leave here being able to have a better day, a better year, and a better life,” Julia Bozzo said.

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WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Mallina Wilson Shining a light on global real estate

her boss invited her to join a real estate association, that’s when she saw her new path.

“Once I saw the potential in real estate and the ability to have an impact on a large amount of people in true home ownership, I knew what I wanted to do,” Wilson said.

Wilson’s specialty is global real estate, which is why she founded International Real Estate Investments Inc. in 2006. She works as a global property specialist on Ben Kinney’s team at Keller Williams Realty in Bellingham.

From helping Costa Rican investors buy local equestrian land, to walking Canadian investors through the ins and outs of buying U.S. property, Wilson has conducted a wide range of transactions. She’s sold real estate in

“Real estate is more than a house or piece of land—it’s a person."

MALLINA WILSON

By Sherri Huleatt

M

allina Wilson started her real estate career with just $40 in her bank account. Today, not only is she one of the most respected international real estate agents in the region and an international instructor within Keller Williams, she’s putting the finishing touches on a biographical book and she just backpacked the trail of her favorite saint—St. Francis of Assisi—from Florence to Assisi by herself.

Oh, and she’s also proud to say she’s been married 29 years and they have raised two young women—both now in real estate.

Wilson never planned to work in real estate. She started out in the travel industry, then became a paraeducator, and then worked in an attorney’s office. When 18 | BUSINESSPULSE.COM

Honduras, Belize, the United Kingdom, Canada, Paris, and other places afar.

Wilson tapped into the global real estate market by mastering the complex federal tax rules that investors and real estate agents often aren’t versed in. Once she made a name in international real estate, referrals started pouring in. Wilson also is a Certified International Property Specialist and instructor for the National Association of Realtors (NAR), which allows her to travel the world and teach other agents how to deal in international real estate.

“In order to be successful, you have to be ahead of the game,” Wilson said. “Real estate is bigger than neighborhoods—you have to understand the global economy, banking, and the local community; you have to be on top of the changes both occurring and upcoming.” She writes about all this as a guest columnist for Business Pulse Magazine.

Despite being known for international work, Wilson says she doesn’t have a customary narrow niche, although most of her work occurs in Whatcom and Skagit Counties. In fact, her background allows her to deal with residential land development, commercial real estate,

resort land, equestrian land, forestry, and more. “In real estate, most agents have a neighborhood niche,” Wilson said. “I have a whole globe.”

Through all of her life and business ventures Wilson stays true to her personal mission: “My life purpose statement is to use my unconditional love and positive energy to inspire and encourage others to reach their maximum potential within themselves and in those around them. This shines God’s glory on a global level.”

This life purpose statement encouraged her to tackle one of her latest goals: writing her first book.

Her book All in a Moment offers a glimpse at how she coped with her mother’s murder – which received national media attention for years. It deals with how people can incorporate forgiveness and compassion into their lives, no matter how difficult the circumstances.

Of all her accomplishments, Wilson is most proud of her family and having the opportunities to watch her daughters join her in real estate, even though she never pushed them that way. She’s also proud that she’s been able to create jobs for others, especially on the Ben Kinney team.

“Any time I can empower others, that makes me really happy,” Wilson said. “Real estate is more than a house or piece of land—it’s a person. I help people who’ve just gotten married, had a baby, and have outgrown the apartment and are first-time buyers.

“I also help those who need to organize an estate sale because they lost a parent, or I help when a divorce is involved. I’ve helped people who are investing for the first time. I can help folks plan college funds for their children by using real estate as a vessel, and educate them on how to pay off home loans early so they save thousands of dollars in interest. I get to help people—what’s better than that?”

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WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Maluhia Vander Griend Dancing her way to the top

By Sherri Huleatt

doing. We want to be a blessing to people and offer a safe and professional place for them.”

Vander Griend, co-owner and artistic director at Dancing for Joy, has been dancing 32 years. She started by teaching kids how to dance from their living room. When word spread about her teaching abilities, Hillcrest Chapel in Bellingham asked if she would teach a dance program at their church and she said yes—but only on her own terms.

“I wanted to redeem the wholesomeness of dance, and make it family-friendly,” Vander Griend said. “I wanted to do that with appropriate music, dance moves, and costumes.”

Vander Griend’s faith-based mission was a huge draw for the local community. Within the first year she had 100 students. And after a brief move to Seattle, which allowed her husband to earn his degree, she moved back

M

"We don’t want to preach at people, we just want to share the values we believe are important, and welcome everyone to participate—regardless of what they believe.”

But that’s exactly what she’s done. In addition to founding (1) Dancing for Joy, one of the most popular dance studios in Whatcom County, she’s also cofounded (2) Stomping Grounds Coffee—a coffee shop inside her dance studio; (3) Love2Learn Preschool that encourages art and movement, and (4) ArtPeace School of the Arts that offers children’s and adult classes in drawing, painting, illustration, and more. All of these businesses have been co-founded with her husband, Kurt Vander Griend.

“It feels like such an honor to be nominated for Professional Woman of the Year,” Vander Griend said.

“I’m so thankful to live in this community and offer these services, and to be recognized for what we’re

to Bellingham in 2002 and opened Dancing for Joy in an 800-square foot studio.

Today, Dancing for Joy takes up a 6,000 square-foot facility in Hannegan Square, and includes four dance studios and a coffee shop. They also teach 900 student hours a year to about 500 students, and have 28 employees.

“There was a need in the community to have something different, and that’s what we offer,” Vander Griend said. “We are so passionate about building community, and we wanted to build a faith-based program. We don’t want to preach at people, we just want

aluhia Vander Griend—a dancer and creative thinker through and through—never planned on starting her own business. Let alone four businesses.

20 | BUSINESSPULSE.COM

MALUHIA VANDER GRIEND

to share the values we believe are important, and welcome everyone to participate—regardless of what they believe. It's a very open-arms approach. We challenge our dance instructors to go above and beyond, and really show love and care to all of their students, not just professional technique."

For Vander Griend, the most rewarding piece of her job is building relationships and mentoring others.

“I have a couch in my office, so when kids are struggling—from eating disorders, to family issues, to just students who are struggling with other personal issues, they know they can come to me,” Vander Griend said. “I remember the teachers in my life who saw that I was struggling and were there for me, so we’re really passionate about offering that same support.”

In addition to running Dancing for Joy, Vander Griend also manages the art school, preschool, and coffee shop with her husband, Kurt Vander Griend, who serves as executive director of Dancing for Joy and manages the finances across all of their businesses. When Vander Griend isn’t running one of four companies, she and Kurt are raising their three children, or she is volunteering for other dance companies, churches, benefits, auctions, and more.

With such a busy schedule Vander Griend advises all business professionals to find something they enjoy outside of work. “Take time to figure out how to take care of yourself and be your best you.”

She suggested finding a creative outlet, like drawing or dancing, that makes you sit and relax and enjoy life.

And the most important thing?

“Have fun! When moments of stress come, take a deep breath and remember life is too short to be stressed out.”

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WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Sara Clement Social-selling jewelry with up to half-a-million in monthly team sales

advertise as “one of a kind collections designed by celebrated New York designers.”

As a business coach Clement helps women chart out short- and long-term goals and learn the basics of selling and recruiting. As independent stylists, women who sign on make Stella & Dot available only through home trunk shows and ecommerce. “Some of the women I work with would never have the opportunity to be an entrepreneur,” Clement said. “The company gives them the chance to do things they would never have thought otherwise they could do.”

This social shopping concept has received high praise from major media sources (The Today Show, Wall Street Journal, and New York Times, and magazines such as Gossip Girl, In Style, and Lucky).

Clement, born in Marietta, Ga., outside of Atlanta, began styling her future after graduating from the

By Mary Louise Van Dyke

S

ara Clement hops out of bed each morning, ready to encourage women who live in all stages of life in learning how to style their own lives with boutique-style jewelry and accessories while doing business from home at the same time.

Clement is an executive sales Star Director for Stella & Dot, a San Francisco-based, Inc. Magazine 500 Fastest-Growing company (Get Your Style On LLC) that focuses on creating entrepreneurial, homebased opportunities for women. The product lines 22 | BUSINESSPULSE.COM

“Seven years later I am still in love with this company (Stella & Dot) and all it provides for my family. It is almost impossible to find a job you love, are passionate about, pays a good salary and allows you to have a flexible schedule.”

SARA CLEMENT

University of Tennessee in Knoxville. A move to Crested Butte, Colo., resulted in her working in the hospitality industry and discovering a passion for event-planning, she said.

The move also is where she met her husband, and they moved to the Seattle area in 2000 where she worked in event/activity planning for several organizations, including Lisa Dupar & Company. Working with Dupar gave Clement fresh opportunities to discover her “inner entrepreneur,” as she put it, and she launched the Pomegranate Bistro in suburban Redmond.

Clement and her husband decided to move to Bellingham and enjoy the numerous venues for skiing and other outdoor activities. She planned to keep her job with Dupar until, during the move, she discovered she was pregnant with their second child.

The initial compromise was to telecommute from her new home in Bellingham, driving to King County once a week. Founder Lisa Dupar supported Clement's decision, but two years into it Clement reluctantly decided that the compromise wasn't working out. The sales team she managed needed her presence during the work week. How could she effectively do that and balance other parts of her life in Bellingham?

Clement therefore left Dupar and decided to spend some quality time with her two young sons before moving back into corporate life. A friend introduced Clement to Stella & Dot when her sons were 3 and 1. It was “the perfect time to begin a part-time job to bring in some much-needed additional income with a f lexible schedule,” she said.

Clement has been actively involved in Whatcom Women in Business and volunteers with the PTA community at Northern Heights Elementary in Bellingham, plus other local organizations. She consistently donates to various nonprofit organizations.

As an executive sales director for Stella & Dot she heads a toprated team that sells an average of $300,000-$500,000 in gross team revenue each month.

“Seven years later I am still in love with this company and all it provides for my family,” she said.

“It is almost impossible to find a job you love, are passionate about, pays a good salary, and allows you to have a f lexible schedule.”

She added, “It really is a dream.”

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WHATCOM PROFESSIONAL WOMAN OF THE YEAR FINALISTS

Stacee Sledge

Applying her Journalism skills to community web

By Mary Louise Van Dyke

S

tacee Sledge loves highlighting the positive aspects of Whatcom County life in WhatcomTalk.com.

Sledge serves as the community manager for the digital media company. In addition to publishing narratives about people, places, events, and businesses in Whatcom County, WhatcomTalk offers content marketing and online options for advertising.

“I do believe we are doing great things to help build our community up even more, on a personal level,” Sledge said.

“Traditional media is not connecting in person as much, especially with everybody looking at (mobile) screens. We’re trying to foster more of a personal connection through our stories – many of which would otherwise go untold. In a new era for media we’re practicing positive, feel-good journalism.

A former Iowan, growing up in a small community near the capital of Des Moines, Sledge began her career in journalism working for Des Moines-based Better Homes and Gardens magazine. She earned a master's degree in journalism from Drake University. In 1996 she and husband, Michael, moved to Washington state.

She fell completely for Bellingham, gazing at white-capped Mount Baker standing guard in the east, and Bellingham Bay stretching to the west. “I love that I grew up in Iowa,” Sledge 24 | BUSINESSPULSE.COM

said, “But once I landed here, I knew I never wanted to leave.”

Sledge began actively freelancing as a Bellingham writer in 2000, crafting restaurant reviews and feature articles for the Bellingham Herald newspaper and Whatcom Magazine.

Changes in Michael Sledge's job resulted in the family (including son Xander, 12, and daughter Clare, 8) moving to Olympia in 2008. Stacee Sledge searched out writing opportunities and discovered ThurstonTalk.com, a digital information source, that was looking for a writer/photographer to supply business features and community stories for its new site.

The job proved a good fit and Sledge missed working with the ThurstonTalk team after returning to Bellingham in 2012.

Clare was entering kindergarten, and Sledge craved a new challenge to propel her forward professionally past the life of a parttime freelance contractor.

Unexpectedly, an opportunity opened through ThurstonTalk. The company's founders decided to expand their

“I saw a need for the telling of more local stories.

WhatcomTalk provides hyperlocal journalism that helps build pride in our community and create more interaction between and connection with community members.”

STACEE SLEDGE

model to other communities through NorthAmericaTalk, and they asked Sledge to help create and launch WhatcomTalk.com as a part-owner.

Sledge couldn't say yes fast enough. “I saw a need for the telling of more local stories. WhatcomTalk provides hyperlocal journalism that helps build pride in our community and create more interaction between and connection with community members,” she said.

WhatcomTalk launched in January 2014 and now reaches an estimated 15,000 readers each week, according to the website.

It features business stories such as a recent article on the volun-

teers who support Mount Baker Theatre, and stories under the Everyday link, such as visiting Point Roberts and “community stories throughout Whatcom County.”

The online site also includes a Whatcom County events calendar, stories about local food, sports, and art venues, and much, much more. As Community Manager, Sledge concentrates on creating customized advertising options for businesses that want to target market their products and services to Whatcom County residents.

Sledge said she doesn't anticipate WhatcomTalk ever expanding into hard copy. Sledge’s experience is that more and more readers are visiting the site on their mobile devices. The site is a go-to for people who want to read more stories about their surrounding community, she said. Without the site, she said, many stories would never get shared.

“Writing positive stories and focusing on the good things happening in our community has unquestionably made me the happiest and most fulfilled I've been in my career,” she said.

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BUSINESS PROFILE: BIRCH EQUIPMENT RENTAL & SALES

SARAH ROTHENBUHLER took over as CEO and owner of Birch Equipment in 1995 when she was just 28 years old. Since then, she’s increased the company’s revenue five-fold and has cultivated an incredibly genuine and hard-working company culture.

(Photo courtesy of Birch Equipment)

26 | BUSINESSPULSE.COM

A TRUE UNDERDOG STORY How Birch Equipment Rental & Sales went from near-death to lean powerhouse

By Sherri Huleatt

S

arah Rothenbuhler is a force to be reckoned with. At the ripe age of 28—and with little-to-no management experience—in 1995 she took over as CEO of Birch Equipment Rental & Sales, her family’s construction equipment company that was sinking fast and that had just barely escaped a corporate buyout.

WHATCOMBUSINESSALLIANCE.COM | 27

BUSINESS PROFILE: BIRCH EQUIPMENT RENTAL & SALES Morale was non-existent, good employees were leaving in droves, and leadership had formed another equipment rental company—taking a good chunk of Birch’s employees, customers, and revenue with them.

“Nobody thought I could do it,” Rothenbuhler said.

She proved them all wrong.

Rothenbuhler turned the business around—implementing “lean” principles, ramping up employee benefits and morale, buying out the stockholders, and diversifying the company’s customer base and product offerings.

And when she got tired of doors slamming in her face? She showed up one weekend and took all the doors

SCISSOR LIFTS by Skyjack and Genie rise skyward among the 145,000 (that’s no typo) rental/sales items Birch Equipment’s four locations that serve Oregon, Montana, Washington, Alaska, and far eastern Russia – one of the largest fleets and distributions in the nation. (Photo courtesy of Birch Equipment)

off their hinges.

Rothenbuhler’s no-nonsense, hardwork, and fun-loving attitude have helped her and her team increase the company’s revenue five-fold in the last 20 years. She has turned a once-

When owner/CEO Sarah Rothenbuhler got tired of doors slamming in her face? She showed up one weekend and took all of the doors off their hinges. crumbling company into one of the Top 100 rental companies in the U.S., and Top 100 privately-owned companies in Whatcom County.

Under Rothenbuhler’s leadership, revenues have grown into the range of $15 million-to-$20 million annually.

They have more than 80 employees.

The company offers 145,000 rental items (also all for sale), ranking Birch as one of the largest rental fleets in the region. Their customer base includes commercial contractors, government agencies, industrial manufacturing, and everyday consumers looking for home improvement products.

“Simply put, we walk our own path,” Stephen Mitchell said. He is the firm’s industrial division facility manager. “We buy gear when everyone else is selling off their fleet. We retain (staff) and even continue to hire when everyone else is cutting overhead. We set the tone in our industry for employee retention, education, and training.”

THE ALMOST-TAKEOVER Rothenbuhler’s parents founded Birch Equipment in 1972 to support their family construction business.

Sarah (Dawson) started working in construction at just 14 years old and she grew up with one foot in Bellingham and one in Alaska— working on construction projects wherever she was needed. She later went into food service, helped support 28 | BUSINESSPULSE.COM

Jordan Mellich, fleet coordinator and 23-year veteran of Birch Equipment, has watched Rothenbuhler totally turn the business around. Birch is now one of the top 100 rental companies in the country and offers more than 145,000 products for rent and sale. (Photo by Sherri Huleatt)

her friend’s coffee startup, and did public relations for the Seahawks.

Then came 1995. She saw Birch Equipment start to go under, and she knew where her place was. As a minority owner and the only family member to have actively worked at Birch Equipment, she felt a responsibility to pull the once-successful business out of the gutter.

At the time, Rothenbuhler said, the company was in the midst of its “Bermuda Triangle.” A national company—Hertz—had negotiated with Birch’s owners to buy out the company; Hertz already had collected equipment, along with customer and staff data. But in the 11th hour Hertz

“I wasn’t starting a company, I was digging it out of a hole, and the first few years felt like building on quicksand.”

—Sarah Rothenbuhler, Birch Equipment CEO and owner

backed out of the deal and instead set up a competing shop near Birch’s

Mount Vernon location.

At the same time, the management team who’d been running day-to-day operations at Birch for the previous 15 years decided to leave and open yet another competitive equipment rental company in Bellingham. Likewise, the ownership representatives also split ways with Birch and opened one in Ketchikan, Alaska.

The national takeover and employee exodus could have been the final straw for Birch Equipment. Sarah Rothenbuhler had other plans.

“The first three-to-five years were just brutal,” Rothenbuhler said. “The company had been really wrung out by people and assets. There were no sustainable systems, leadership, management, or healthy equipment.

Birch was imploding. I wasn’t starting a company, I was digging it out of a hole, and the first few years felt like building on quicksand.”

To help stabilize the company and get bank financing, Rothenbuhler kicked off a buy-sell option and bought out all of the stockholders. “I paid top-of-market dollars, as some of the management and stockholders would have been fine seeing Birch fail and liquidate, which would have resulted in a loss of all the jobs, sys-

tems, and services we were in the process of building,” Rothenbuhler said.

“When markets slow, the first thing national companies do is lay their people off and start dumping equipment.

Birch has always done the opposite.”

—Jordan Mellich, fleet coordinator

According to Jordan Mellich, fleet coordinator and 23-year veteran of the company, Rothenbuhler’s smart strategies were the company’s saving grace. “About six months after I started, Sarah came on board and completely cleaned house – management, (upgraded) equipment quality, and made processes the focus,” Mellich said. “When markets slow, the first thing national companies do is lay off their people and start dumping equipment. Birch has always done the opposite. We invest in our people heavily with training and have never done a layoff. When everyone stops WHATCOMBUSINESSALLIANCE.COM | 29

BUSINESS PROFILE: BIRCH EQUIPMENT RENTAL & SALES DEMO DAYS and Open House (bottom photo) draws a crowd every fall to each location. (Left to right) Dave Greene, Stephen Mitchell, and Jordan Mellich join owner Sara Rothenbuhler among the staff hosts. Matt Myers, the maintenance manager, stands by a company truck in the upper right. They all work out of the Bellingham office seen here. (Photos courtesy of Birch Equipment)

step of the business process became a major priority for the entire company. One implementation by which Rothenbuhler turned things around at Birch was kaizen methodology.

Many business professionals believe kaizen—meaning “continuous improvement”—is simply a strategy for streamlining processes.

For Birch Equipment Rental & Sales, kaizen is a game-changing credo for everyone, from mechanics to managers to sales representatives, and beyond. Hearing“I kaizened the maintenance room,” or “We kaizened our service process” is a daily, if not hourly, occurrence at Birch.

They mapped out foot motion throughout the day and noticed too many people were going upstairs for supplies. So what did they do? Moved the supplies downstairs. They saw the mechanics' were too holed up in their

“Sarah is a no BS, fair, and loyal person to work for.”

—Jeninne Jerowski, Bellingham facility manager

buying equipment, we really ramp up.

Our people are the best in the industry and we maintain our equipment like no one else, and we are always on the cutting-edge of the technology that make us more efficient and 30 | BUSINESSPULSE.COM

streamlined.”

EMBRACING LEAN Once Rothenbuhler took over, the adoption of lean principles aimed at streamlining and optimizing every

individual tasks, so they ripped down the mechanic’s walls, opened up the shop, and added “priority” boards that showcased the day’s and week’s top tasks.

For Birch Equipment, every action, task, and process represents an opportunity to simplify and streamline.

“Kaizen has been a huge part of streamlining our processes,” Mellich said. “We started with events in our central shop facility with emphasis on wasted movements, and then moved to the parts department. In the last five years, we’ve implemented the kaizen process at all of our locations, service trucks, and delivery vehicles.”

Kaizen isn’t a strategy dictated by management; it’s a concept fully embraced and implemented by the entire Birch Equipment team.

“We are not a cookie cutter franchise limited by corporate dictation,” Mitchell said. “We are a strong, local, independent company empowered by the ability to adapt our processes and

operate in a manner that effectively fulfills our customers’ needs.”

Not only did Rothenbuhler streamline processes, she also made it a priority to treat her employees well.

She implemented her “work hard, play hard” philosophy by switching the company to a four-10 work week. She also offered a full benefits package, with paid vacation, a 401K retirement plan, health benefits, and a tremendous amount of training. Once an employee hits the 20-year mark, he or she gets a Rolex watch.

“Every position we have is important,” Rothenbuhler said. “It’s nice to see our CDL drivers, corporate managers, and any other Birch position sporting a Rolex of their choosing for being at Birch 20 years.”

One other unwritten perk? “The definitive certainty that [every day] I will laugh or hear my coworkers laughing,” Taria Byrd said.

As office manager, she handles accounts payable.

While Rothenbuhler shrugs off

employee praise, saying she’s had many nicknames over the years (“but hopefully now people just say them to my face”), she’s clearly a beloved figure within the company.

“Sarah is a no-BS, fair, and loyal person to work for,” Bellingham Facility Manager Jeninne Jerowski

"Sarah believes in work hard and play hard, there is nothing she will ask you to do that she hasn’t done or isn’t willing to do.”

—Matt Myers, maintenance manager

said. “There is no room for assuming—you work hard, and everything you put into the business doesn’t go unnoticed. It can be the most satisfying and rewarding job, and I attribute that to how Sarah has led and shaped us as managers.”

Maintenance Manager Matt Myers agreed: “Sarah believes in work hard and play hard. There is nothing she will ask you to do that she hasn’t done or isn’t willing to do. Sarah has an open-door policy and any employee can walk in and talk to her about anything. If she’s not in, you can call her any time, because we all know she never really sleeps.”

WHY THEY’RE ON TOP The work culture excels. When a visitor enters the office, the entire team stops whatever they’re doing to stand up, shake the visitor’s hand, and introduce themselves. Another part of the Birch Equipment success story stems from Rothenbuhler’s diversified approach to their offerings and customer base: • About 30 percent of their customers are commercial contractors.

• About 30 percent come from industrial manufacturing.

• Another 30 percent or so rep-

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BUSINESS PROFILE: BIRCH EQUIPMENT RENTAL & SALES resents governments (such as first responders, emergency services, and the Department of Transportation).

• Roughly 10 percent have home improvement needs. In fact, the company is one of the biggest suppliers of home improvement products in the region.

Everything that Birch offers for rent is also for sale—from forklifts to painting equipment to lawn mowers, and beyond. You name it, Birch has

it. “Birch offers the latest in equipment, with a diverse fleet specializing in earth-moving equipment, material handling, aerial, power, lighting, and finish trades,” Jerowski said.

Birch also offers round-the-clock services. Later this year, they’ll kick off a proprietary, one-of-a-kind software portal that allows customers to order, track, and manage all of their rental equipment—24 hours a day, seven days a week, and from anywhere in the world.

“You can call our 24-hour service

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and speak with a live person and we can have our teams mobilized within a couple hours, 365 days a year,” said Bruce Miner, assistant maintenance manager and 17-year company veteran. “If a decision needs to be made, our leadership team makes it happen. No going to a board of directors or shareholders and waiting for a response.”

SUPPORTING THE COMMUNITY Community support and involvement make up a huge part of Birch Equipment’s philosophy, which is why they’ve donated at least $100,000 to local nonprofits every year for the last 10 years. And will continue doing so for the foreseeable future.

“Our company shouldn’t even be alive right now,” Rothenbuhler said. “But we are—we’re solid and not interested in relaxing. We know it takes continual improvement and being a key part of our communities.”

Birch Equipment has five stores located across Bellingham, Mount Vernon, Anacortes, Everett, and Sitka, Alaska, and the company supports all five communities—donating to education, the arts, geriatric care, disease and ailment research, animal preservation, homeless outreach, youth sports, and more.

“We’re all in this together—as a company, as a community, and as a family,” Taria Byrd said. “Sarah supports and encourages a family-oriented work environment, which we are all grateful for. As a result, our family and friends see this process and they feel all the more connected to our mission.”

Even with all of the ups and downs and almost-takeovers, Rothenbuhler takes everything in stride. “Who hasn’t faced a lot of obstacles?” she asked. “Everyone has a story, and most people are genuinely kind and quite funny. I figure, be kind, strong, listen, learn, adjust, be nice when you call BS on someone, and be grateful . . . What a bonus to be alive and healthy in this country, in this time. I thank God a lot—every day and every night.”

The 34th

Annual Auction & Banquet October 25, 2016 Four Points by Sheraton 5:30 - 9 p.m.

Tickets at wwib.org

$65 Tickets $585 for a Table of 9

Join us to celebrate these outstanding women!

Event includes a silent auction to beneďŹ t the WWIB Scholarship Program, banquet celebration, and selection of the 34th Professional Woman of the Year!

Julia Bozzo

Founder & Executive Director NorthWest Therapeutic Riding Center

Maluhia Vander Griend Artistic Director, Dancing For Joy

Julia has been involved with connecting horses and riders for a lifetime and is unfaltering in her dedication for sharing her experience, knowledge, property and passion for horses with others.*

Maluhia Vander Griend is owner and artistic director of Dancing for Joy where, along with 28 employees, she teaches and mentors 900 student hours per week.*

Sara Clement

Caitlin Walker

Executive Sales Director, Stella & Dot

Sara leads an international sales organization of more than 800 women. Her passions are to inspire, empower, and coach entrepreneurs on her team to achieve personal success. She loves cooking and traveling with her husband and two sons.

Stacee Sledge

Owner, barre3

Caitlin embodies what it means to live in sync with the barre3 practice. Both in and out of the studio, she strives for work-life balance while challenging herself and her clients to find overall physical and mental health.*

Mallina Wilson

Co-owner/Community Manager WhatcomTalk.com

International Real Estate Investments, Inc

Stacee is the driving force behind WhatcomTalk.com, a digital media company that shares positive community stories.* *Read the full biographries of the finalists at wwib.org

OUR SPONSORS

Mallina is realtor serving local, national and global clients looking to buy, sell or invest in real estate. She is on the Ben Kinney Team at Keller Williams works with an amazing group within his team.*

BUSINESS PROFILE: GEAR AID

Brand new, new brand:

GEAR AID

THE NEW BRAND of the former McNett Corporation, Gear Aid, carried its marketing slogan “Make Outside Yours” on the road this summer to numerous industry trade shows. Interim CEO Liz Mathias gives the thumb’s up to the look and the results.

But the same high-quality standards that family-owned McNett Corp. was known for

By Mike McKenzie

A

local family business name has disappeared into the sunset. McNett. But the company they founded as not.

It's just wearing a new coat of arms. Branded as Gear Aid. A lot has changed. But not really. Headquarters still remains in Bellingham. The brand still remains recognized globally as the place you go for products to protect and repair any outdoors gear and to aid your safety in outdoors activities.

A new tagline, “Make Outside Yours," and the Gear Aid logo bridge legacy, innovation, and 34 | BUSINESSPULSE.COM

inclusivity to all who experience the outdoors in their own way.

Duane and Nancy McNett, the founders, retired after 35 years with their company. On Oct. 9, 2015, they announced selling McNett Corporation to Coghlan’s Ltd. of Winnipeg, Canada.

The sale melded the two most dominant names in their outdoors specialty products industry. Only now comes a name change, tied to branding/marketing and not to ownership name, with the new mantra of “Make Outside Yours.”

What hasn’t changed a lick: “We have more than 300 products that take care of your gear,” Liz Mathias said in an interview at the Gear Aid plant in Bellingham’s Haskell Center.

"And we have many more new products in the pipeline."

Mathias is another example of what’s new, but not really. Internally, with the resignation of its former chief executive officer, Travis Huisman, Mathias moved from the office of chief operating officer to the office of CEO as interim, and hopeful of permanence – but also still wearing the COO hat. She’s been with the company nine years.

“We have taken on a new life,” she said, wedging a visit into alreadysqueezed hours before she and many staffers hit the road for week-afterweek of summer travel by van to industry trade shows where they would unveil the new brand and new products. “What’s changed is the identity of the company, from the highly regarded and respected family of McNett brands to the Gear Aid brand.”

Also under the what’s-new category is a movement the company termed “a breakout into the ‘tools’ product category….” Its marketing message described the concept this way: “Poised to help consumers engage with the outdoors, Gear Aid (introduced) a new series of task lights and power stations, which launched at the 2016 Summer Market Outdoor Retailer show.”

One other point of emphasis: Gear Aid has stepped up its marketing efforts to sell direct-to-consumer online at www.gearaid.com, supplementing its global wholesale model and footprint.

Consumers still find scads of familiar products in familiar places – sporting goods stores, specialty retail shops, mass merchant retailers, such as Bass Pro Shop, REI, Dick’s Sporting Goods, Cabella's, Academy, Fred Meyer, et al.

Customers also still find the endless lineup of familiar goods in the store departments for camping, sporting goods, diving, fishing, hunting, climbing, hiking, bicycling, et al.

Such goods as anti-fog used on dive masks, waterproofing (for jackets and boots, for example); cleaners and odor eliminators, and one that

LIZ MATHIAS, CEO (L.) AND KRISTY MCKINNON, ACCOUNTING.

sticky residue. We fix your gear, whether it’s a tent, a sleeping bag, or a jacket."

The warehouse in Bellingham manages inventory for sales, some production and light assembly and some packaging take place there, as well. Sales teams, marketing and product development make up a large

part of the workforce. The entire staff numbers 45 in Bellingham.

Mathias has a solid background in sales management and operations.

She has worked in the outdoor industry for 20 years and earned her degrees from St. Mary’s and Metro State University in the Twin Cities, her hometown.

Mathias’ experience in textiles, graphics and the classroom are a far cry from guiding a large company, which is part of an even larger company, from its McNett Corporation roots and niche into an ever-expanding and far larger industry.

“Our roots have always been in making practical and purposeful products that help people save their gear, and stay outside longer,” Mathias said in a company blog.

The McNett.com website will continue to serve the company, wholesale and consumer community throughout the transition to a fully launched gearaid.com website.

“Whether you're around town,

“Our roots have always been in practical, purposeful products that help people save their gear and stay outdoors longer.”

– Interim CEO Liz Mathias, Gear Aid

the company is proudly rolling out this fall and winter with new lines – lighting.

Gear Aid products not only protect gear and people, they fix rips and tears. "We have outstanding adhesives and tapes. One is called Camoform that's self-adhesive," Mathias said, speaking Catalogese.

"It's a protective wrap that is self adhering, reusable, and useful on rifles and shotguns without leaving WHATCOMBUSINESSALLIANCE.COM | 35

BUSINESS PROFILE: GEAR AID

and many staffers hit the road for week-after-week of summer travel by van to industry trade shows where they would unveil the new brand and new products.

LIZ MATHIAS, INTERIM CEO AT GEAR AID

climbing a mountain, or exploring crystal clear waters, we’ve got you covered,” it says, now readable on www.GearAid.com. “(We) provide a better experience outdoors; products that are tested and proven in the most extreme environments so that you know they’ll work anywhere. (Our) family of brands help get more from your gear, improve your odds in the field, help you travel smarter and make outside yours.”

Now, a new world. But not really.

“This rebrand will set the stage for the future of Gear Aid,” Mathias said. A guideline is what Gear Aid calls “fostering organic growth” and their new marketing materials speak of moving into both adjacent and new marketplaces.

“We couldn’t be more excited.”

That’s something, also, that certainly hasn’t changed a bit within the big warehouse now known as Gear Aid. 36 | BUSINESSPULSE.COM

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SPECIAL REPORT: PORT OF BELLINGHAM WATERFRONT PROJECT

Harcourt LTD proposal for convention center hotel: Port Commission for or against?

A headline carried the day after one meeting A PROPOSAL by Harcourt Developments Ltd. and Tin Rock Developments Inc. to build a convention center and hotel as part of the Downtown Waterfront redevelopment has not hit a dead end, as many perceived after a recent meeting of the Port Commission.

The commissioners delayed proceeding with the project until further discussion with them and the public. (Staff photo)

By Business Pulse Staff

L

ate last June one headline screamed from The Bellingham Herald, and it left an impression on many that the Port of Bellingham Commission had turned down a windfall offer of upward to $40 million in Downtown Waterfront improvements.

Inferences drawn from this headline, and some reporting on a two-hour discussion by the three commissioners, led Business Pulse to revisit them about what actually happened and their positions on a proposal to convert the old Board Mill Building into a hotel/convention center/spa, plus an office building nearby.

The huge headline that turned heads: “Bellingham Port Turns Down $30M Waterfront Hotel Idea….” Well, that’s as far as many that Business Pulse talked to read, and that’s where the trouble lies. The headline ended with “For Now” – and many apparently didn’t read that far.

The Herald article and other publications dwelled immediately on the fact that commissioners Mike McAuley, the chair, and Bobby Briscoe left a strong, negative vibe hanging over the proposal

by Harcourt Ltd., made through 38 | BUSINESSPULSE.COM

its Bellingham development representative, John Reid with RMI Architects. The proposal called for some radical changes in plans originally set forth in 2015.

One reporter described “shock and irritation” among the commissioners, another referred to “balking,” and yet another ended a descriptive paragraph of the proceedings about how two of the commissioners want to see “…more planning before the Board Mill hotel concept could move forward, if at all.”

Differing viewpoints ranged from preferring more bids, to reviewing the parameters of the site acreage more closely (it’s on 6 acres set aside for Western Crossing Development, involving a Western Washington University off-campus site plan), to the buzzword of all political forums in today’s world – job creation (what kind, how many, etc.).

One exchange among many pointed give-and-takes during the

long session summed up the evening: Dan Robbins, the commissioner pushing for work to proceed on Harcourt’s second phase of its contract agreement from 2015 (they already have begun a facelift on the aged Granary Building) said, “We finally have something going on here. Harcourt has the wind at their back and we should make the changes to the master development agreement to allow them to move ahead [with the Board Mill project].”

To which Briscoe responded, “Well, there have been a lot of shipwrecks with a full sail of wind. I’d prefer to sail a little more cautiously than just saying, O.K., let’s go.”

All reports surfacing in a Google search did make the main point – there was no vote, and the deal is not only alive but still ahead of a deadline of formal presentation due

BOBBY BRISCOE (l), Dan Robbins (center) and Michael McAuley. (Photo courtesy of Port of Bellingham)

in November. But articles placed so much emphasis on the negative give-and-take of two commissioners vs. one’s positive approach, and a puzzled, negative reaction by the developer, that any message of “ooh-ahh” or upbeat reaction over a $30M-$40M windfall was lost in the shuffle.

An immediate reaction by Reid indicated he was uncertain what would follow, yet the Port staff told Business Pulse that the highest-ranking officials with Harcourt would pay a visit to Bellingham early this month to discuss how to move forward with the upcoming deadline for particulars.

To punctuate all that occurred almost four months ago, we sought comments from each of the commissioners and they submitted the following:

MICHAEL MCAULEY: The conference center proposal came as a bit of a surprise at the last minute of the time allotted for design and permit submittals to the City, so it is not a fully vetted concept as far as I can tell. The Port Commission has seen nothing more than a couple exterior elevations.

A point to be made and understood is that the Commission and, in fact very, very few people, can precisely predict the outcome of urban development and how a city will grow on a parcel by parcel basis.

That in mind, it is important that the commission keep the broad picture of shepherding the infill and helping it focus on job creation through new business recruitment or, secondarily, local business expansion.

A conference center that helps anchor a business and technology campus would not be a bad idea and my focus for the past 7 years has been on that campus. WWU has very limited funding capacity and quite a lot of intellectual capital that should be tapped so I hope the new president can bring focus on expanding partnerships with private,

off-campus efforts.

We must remember that Whatcom County has a global geographic advantage on the west coast of this continent and we must keep our eyes on this one ball: Excepting southern California, from Alaska to Mexico, there is no other small population center such as Bellingham centered within 6 million people.

DAN ROBBINS: My take was that I was all for letting them move forward. Mike and Bobby were against that for two different reasons – Mike was concerned about changing the acreage for industrial use, and Bobby was like, ‘We need to see who we can get down there, we’re moving too quickly.’

Too fast? It’s been 12 years since we started this, and if we keep waiting we’re not going to get anybody.

On the question of the acreage, I didn’t mind giving up three of the 50 acres designated for Western Crossing, because they’ve been more than willing to cooperate in chang-

ing the plan.

A $30 million hotel and conference center and a $10 million office building would be the cornerstone of the whole waterfront project, and draw more people and jobs down there. Twelve years is long enough.

Let’s get going….”

BOBBY BRISCOE: You can sum up my position in one word: clarity. We need some clarification on what Harcourt and our Port staff have in mind, and put it in front of not only the commission but also the public.

We hadn’t heard anything about this when the meeting (in June) took place…we just didn’t know what was going on, and I felt that we needed more time to hear more about their (Harcourt’s) intentions.

But I want to make it clear that I am not against what they proposed – we only discussed, we did not vote on it – we just need more clarity.

WHATCOMBUSINESSALLIANCE.COM | 39

ENTREPRENEURIAL ENTERPRISE SERIES: PART 1

WESSPUR AN

Aarstol to $10 m AT WESSPUR Tree Equipment in Bellingham, owner Ryan Aarstol (left) clutches a tree-climbing apparatus useful to arborists as he and his brother, Stephan Aarstol, stand before one of Steph’s products from Tower Paddleboards in San Diego – co-branded as a Mark Cuban Company (from ABC-TV’s Shark Tank, where Tower received a $150,000 deal in 2012).

40 | BUSINESSPULSE.COM

ND TOWER (A MARK CUBAN COMPANY):

l brothers find far different paths million businesses RYAN SELLS TO TREE CLIMBERS (WITH A BOOST FROM PROFESSIONAL ARBORISTS); STEPHAN SELLS BEACH LIFE STYLE AND STANDUP PADDLE BOARDS (WITH A BIG BOOST FROM MARK CUBAN ON SHARK TANK) Article & Photos by Mike McKenzie

A

while back Ryan Aarstol got in touch with Business Pulse. His company, WesSpur, belonged in the magazine’s Top 100 Private Companies listing that he’d seen, and he thought – rightly so – that we’d find interest in his business of treeclimbing equipment. Then about a year ago, unbeknownst to me, Stephan Aarstol was the subject of an interview with Forbes (Oct. 15, 2015).

One summer day this year as I read through one of the many emails that pour in steadily offering an interview with somebody who has written a new book about business, that name – Aarstol – popped into my consciousness once again. The email offered an interview with Stephan Aarstol, newly-published author of The 5-Day Work Week.

Having not read the Forbes article, and having not realized his Bellingham background while watching him on the nationally-televised Shark Tank shows (in 2012, and early this year), I mulled over the coincidence of a not-so-common last name. I called Ryan. Any chance you’re related, I asked, or is this just coincidence?

They’re brothers, he told me. Brothers who grew

M

M: Did you see yourselves in this realm of entrepreneurial success when you were kids?

RA: When we were growing up I didn’t consider myself this business person. I went to school to start

up here, with a Bellingham address but in the county out on the southeast edge; who both obtained degrees from Western Washington University, and who both as entrepreneurs operate $10 million a year companies.

Ryan’s sells tree-climbing equipment online internationally, hundreds upon hundreds of parts and paraphernalia primarily used by professional arborists.

Stephan’s is nationally-acclaimed Tower Paddleboards, a startup in 2010 based in San Diego.

He said he’s actually now in the business of selling not just customized paddleboards but also a “beach lifestyle” brand primarily through website optimization (No. 1 on search engines), social media, and the company’s Tower Magazine with 25,000 subscribers. He told Forbes (yes, I Googled and read it) that he plans to spin off 25 companies with that beach brand.

He explained all this recently while he was back here, during vacation, visiting parents and friends, and, of course, his brother Ryan. That’s where we met – at Ryan’s office, tucked back behind a Les Schwab Tire Center a block off James Street. I turned on the audio recorder, and we had a three-way conversation. The Aarstol brothers told how they arrived at a similar juncture in far different ways.

Ryan worked for his company a few years, then bought it. Stephan flailed away at several ventures (need some poker chips, anyone?), then happened upon the idea of paddleboards. Then Shark Tank called. Listen in...

finance at Western around a 9-year plan, took my time, quit a couple of times, went back, finally finished business. I got interested in it. For me this opportunity came along, sorta random. It wasn’t planned from the beginning.

MM: What about you, Stephan?

SA: While I was going to (Mt. Baker) high school WHATCOMBUSINESSALLIANCE.COM | 41

ENTREPRENEURIAL ENTERPRISE SERIES: PART 1 here, I was interested in business or politics. My first business was a speakeasy and bar in the dormitory at Western. Took a loss on that one (laughter).

RA: I helped him go pick up the original inventory.

SA: I had a series of those kind of things, and most of them failed, until I got out of grad school.

That’s when I started a high-end poker chip business, and went into the internet business. A lot of our successes have had to do with timing. We came out of college, worked a few years, and then retail started shifting to online. Ryan’s catalog business – and all the catalog businesses, were shifting to online.

RA: Yeah, in my industry there were no websites back then. It was all…(storefront retail). That’s the first thing I did when I came to work from Western-create a catalog and put it on a website, and that was sort of a beginning.

MM: You didn’t even have a website at all?

RA: Well, we had an informational website. It had a phone

number and the picture of the owner, or something like that. For us, that was huge, the timing.

MM: For e-commerce?

RA: Right, getting in at the right

“One of my buddies from college and I took (a product) to a trade show.

We won Top 10 Toys of the biggest toy show in the world, and we made exactly one sale. We didn’t have a clue what we were doing.”

– Stephan Aarstol, entrepreneur who has run two very successful ventures since then, one in poker chips, and today in paddleboards

time and watching it grow pretty quickly.

MM: Steph, what were some of the other attempts at business that you said failed?

SA: I was going to start a chain of, well, I was going to start a bus

RYAN AARSTOL at WesSpur often has a companion at his side when he’s working the computer. Sadie doesn’t have an official title…

42 | BUSINESSPULSE.COM

for backpackers across America.

Like, youth travelers, backpackers, going from to city-to-city, a hop-on, hop-off bus. It’s something I saw when I when I went to Australia, and we didn’t have it here in the U.S., so I tried to plan that. But it didn’t take off. Didn’t have the money to make it go. I ended up going to grad school…

MM: Where was that?

SA: University of San Diego.

And while I was in school there I planned to start a chain of high-end youth hostels. Again, I needed money. It went nowhere.

I didn’t waste a lot of money on it, but wasted a lot of time. I went into an internet company, a startup, and learned about marketing. When did you come out of Western, Ryan?

RA: Hmmm…would have been ’98.

SA: We both started in business at the same time about then.

Before that I was working for about five years. Then decided I wanted to do something on my own. I knew some poker players, it’s where I got the idea and started the poker chip company. Ryan helped with the planning of that. I needed a source for funding it, and I borrowed some (startup) money from him, and paid him back with a percentage of the sales.

RA: It’s one of the best investments I’ve ever made. About 700 percent return on my money.

MM: When you say ‘high-end’ poker chips, what exactly does that mean? The ones they use at a Vegas table?

SA: The same chips you’d use in Las Vegas. There was a huge poker boom in about 2003, and there were no good poker chips. I went to the poker manufacturers and asked them to make for home games a fifteen-hundred dollar set of poker chips.

MM: For home use, though?

SA: Yes, it was a small business.

But I watched Ryan’s business blow up, and some others’ become

five, ten, fifteen million dollar businesses, doing it online…and we got this poker chip company to doing half-a-million a year. And I’m the industry leader! It was a small niche.

MM: How many employees?

SA: With that, it was just me.

I started some other businesses.

Like, a toy company with Dismos toys, and it sucked. They were like little poker chips for kids, but an educational toy.

MM: Dis…? What?

SA: Dismos. Like a set of dinosaurs, a set of trucks, a set of construction vehicles….color coded, numbered, educational – you could play with them, stack them, start a collection. One of my buddies from college and I took it to a toy trade show, and we won Top 10 toys of the show. This was the biggest toy show in the world, and we made exactly one sale. We didn’t have a clue what we were doing. I got out of that, sold it to him. For nothing, basically – he had to take over my debts. When I started the paddleboard company I was about six months into startup of a green energy portal.

MM: Are you in touch with Mark Cuban a lot?

SA: Quite a bit, and it’s direct communication by email. It’s him, himself too, no filters.

MM: How much were you both in college at Western at the same time?

RA: Steph was already in graduate school when I was finishing my undergraduate degree. I had taken a few years off.

MM: Did you guys ever talk with each other about this entreprenurial bent?

SA: Not really until later when Ryan was running his business, and I was in a radiology thing, and we started comparing notes about what we were both doing. When I started a business that had inventory I would ask him questions, like I did all my entrepreneurial buddies.

RA: His specialty back then was key word searching, marketing, optimizing your website to bring in leads. He answered a lot of questions and helped a lot there.

Now we have a person who does that for us full-time. Steph would still be a resource for me if we needed it.

MM: You guys were on the front edge of all this e-commerce. How about growing up together, what was the banter, who did what?

perfect on his SAT scores – 1500, 1600. Four-point-oh grade average. He applied to Stanford. But we were so backwoods he couldn’t even get in there with that. So he went to a college on the East Coast with a full ride (academic scholarship) and got, like, a fourpoint-two there. And then a full ride to Stanford for graduate school. We came from a smalltown area, out Smith Road, near the Baker store, where there aren’t

IRON STREET SPLICING, a division of WesSpur, has a staff dedicated to splicing of the company’s top seller, rope. The manager of the department, Graham Kesterson, operates a splicer on one of the many varieties of rope used by arborists and other tree climbers.

RA: Steph was the wild kid.

We’d all be on our bikes going over jumps in our yard, and he’s the one who’d be going over bigger ones and doing the crazy stuff on his bike. We grew up in the country and lived out in the county, went to a small school. I played baseball a year. Pretty normal.

SA: I played basketball, football, and ran track.

MM: Just the two of you?

SA: Three. Our older brother Mike was super smart, like near

a lot of opportunities. You could feel capped.

RA: We grew up in the same house our whole life. Went to the same high school our parents did.

MM: Did your parents farm?

RA: No, our father’s an optometrist and our mother ran a bank.

SA: Dad was somewhat entrepreneurial. Half of his business was selling glasses, and half was the doctor part.

RA: I worked for him a couple of years during college. Fitting WHATCOMBUSINESSALLIANCE.COM | 43

ENTREPRENEURIAL ENTERPRISE SERIES: PART 1 glasses and contact lenses, that sort of thing. A lot of kids maybe work for their parents and not learn a thing, but I actually did learn a lot working around him.

Customer service, particularly, because his was a repeat-customer business. Like, a customer would come to you and have some ridiculous request like, ‘I’ve had these glasses two years and I want to return them because I hate them.’

Dad would be, like, 'OK, here, we’ll make you some new ones' – if it was legitimate. Like I teach my customer service people here, yeah, never get in a fight with a customer, because you want them back. It might seem ridiculous then, but if you treat them right they’ll come back. For us it’s really important for reaching customers. We need them back. These are folks who use our products for work, and they’re buying over and over and over. Just like eyeglasses.

I don’t know if I learned any other lessons, but that was a big one.

44 | BUSINESSPULSE.COM

Vision Clinic, still open, he sold it and still works a couple of days a week now. Mom is retired now.

MM: Michael’s at the Treasury Department?

“Like I teach my customer service people here, never get in a fight with a customer, because you want them back. It might seem ridiculous then, but if you treat them right they’ll come back. For us it’s really important for reaching customers.”

– Ryan Aarstol, owner of WesSpur that sells tree-climbing equipment worldwide

SA: Yes, the IRS. MM: Growing up, every kid thinks he wants to be something

or other. What were you thinking when you were kids, and 13, and 18?

RA: I really wanted to be a doctor, but when I got to college I realized I wasn’t near smart enough to make it in med school.

SA: I was the guy who always wanted to be in business or in politics.

MM: Seriously, even ever since you were little?

SA: Yes. An interesting thing about Mt. Baker (High) is that it was a small, backwoods school, and you got this sense you were better than you might actually be.

You lived in a very small world… if you wanted to play football, you could. I was 145 pounds and second slowest guy on the team, but I could figure out a position on the varsity I could play. The school in California where my son’s going to go, they have 100 kids in a class.

If you want to play sports you have to be an athlete. So while it can limit you in some ways, like getting into Stanford, but on the other side you lived in this little isolated world where you believed you could go be the governor – if you want to be a governor – and it didn’t seem that hard.

MM: Where did Tower Paddleboards come from?

SA: In 2004 I was living in California and I got married and we had a son, so I wanted to move back here. I was running my poker chip business, and I rented space where Ryan was working this company then. We could compare business stories and tactics.

While I was there, a year or two, we had a child on the way and my business was kind of capping and coming down a little bit. So I thought, ‘OK, I need to start something else before I have to go back to work.’ I was scrambling to find other businesses. I remember at Ryan’s place I had this book 11,000 Catalog Companies, and I was paging through it, trying to find another catalog company

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ENTREPRENEURIAL ENTERPRISE SERIES: PART 1 out of all these thousands where they were in some crazy industry.

I thought seriously about something like the poker chip business.

Through that search I literally stopped shipping on Tuesday and Thursday, and worked just Monday, Wednesday, and Friday.

Then stopped working Tuesday and Thursday on the business. I had separate desks. I would get up from one (poker chips) and go pursue new businesses at the other. Three days a week I’d work four hours a day on a $500,000 business all morning, and spend my other time looking for a new one. It took six years before I found the paddle boarding. Very similar, sort of trending business like poker chips, with huge popularity. This new product, I could go with a known brand.

MM: That got you to the center of the universe, so to speak, with Shark Tank.

SA: Poker chips got on TV, too.

A segment on Spike TV. From that whole experience I could see the future of this company. With this trending thing I could get to the top of the search results. It would be easy to get market share and get attention. I didn’t apply to go on Shark Tank, they just called me out of the blue one day.

MM: How's that going for you?

SA: This year we’ll do about $10 million. Last year we did 7-pointtwo.

MM: How many employees?

SA: There’s 11 including me.

Three years ago we were named fastest-growing company in San Diego, and that year we had five working there and did $5 million.

Last year we were number 239 of the 5,000 fastest-growing in the country by Inc. Magazine.

MM: How about the book?

You’re making the 5-hour work day a concept for everyone around you, and, well, everyone.

SA: That’s the idea. In June this year we started the five-hour work day when I decided we were going 46 | BUSINESSPULSE.COM

to do what I did with that other company. We’re going to compress this down. What that did wasn’t just to find other business opportunities, it was more like, what do we really need to put into this?

What are the things you can just not do and things don’t fall apart, and you just stop doing that. You become a much more efficient worker, and that’s how I’ve operated the last 10 years and believe we can do that as a whole company.

That’s our experiment.

MM: You, too, Ryan?

No, I’d like to get there. But my business is very f lexible for me. If we’re in the middle of a project I’d like to be here more than that, but I talked to Steph about how I’ve probably spent more weeks of fivehour work days than not.

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OUR CONGRATULATIONS to the 2016 Whatcom Women in Business finalists

Whatcom Business Alliance, Business Pulse Magazine, and the following companies congratulate all Whatcom County women in business and thank them for their contributions to our community prosperity

M A G A Z I N E

The Publication of The Whatcom Business Alliance

M A G A Z I N E The Publication of The Whatcom Business Alliance

ENTREPRENEURIAL ENTERPRISE SERIES: PART 2

Pillinger’s career evolved from pix to publishing

David Pillinger, Division Manager for Best Version Media and independent publisher, works often by phone in his car.

Photos courtesy of Radley Muller/Southside Living

By Mike McKenzie

D

avid Pillinger has become a Best Version image of his former career self – on his own, though still in his chosen vocation of 34 years, journalism. He has worked, since November 2013, under the banner of Best Version Media (BVM), operating out of South Hill in Bellingham as sole proprietor/publisher of one the firm’s publications, Southside Living. He became a division manager after just 8 months.

He covers “neighbourhoods,” and he’s wont to ask to meet you for a “chin wag” (a friendly visit over coffee or lunch, about business, family, photography, or anything else that might come up). Neighbour-with-a-‘u’ and chin wag provide immediate insight that Pillinger is British, immediately confirmed when he speaks in fully-rounded accentuation.

Though working through the international BVM network Pillinger makes it clear, “I am an independent business owner.” He covers five states – Washington, Idaho, 48 | BUSINESSPULSE.COM

Wyoming, Montana, and Alaska – helping newly-minted publishers with startup magazines similar to Southside Living.

One, for example, about to hit the printer soon is Lake Views (Lake Whatcom, Lake Samish, Cain Lake). And its publisher, Jamie Webster, another independent operator, stands as an example of the other side of Pillinger’s work: a new BVM magazine owner/publisher-in-training.

“Our Mission is simple: To bring neighbourhoods and businesses together with a positive, relevant, and family-friendly magazine that is customized to meet the needs of each neighbourhood.”

– David Pillinger, Publisher, Southside Living

He spends copious amounts of time on the telephone, often working from his car, talking to individuals about starting up with a magazine in a, uh…neighbourhood near them.

“The parent company develops leads,” he said. “I then follow up and recruit them. When somebody signs on, I go to monthly sessions in Canada and train them, and then I’m there for support as they start their business.

And how’s that working out? “ One magazine in

Anacortes and one in Bozeman, Mont., operate in his domain, and one is pending in Lynden. “My vision is a constellation of magazines,” he said. “A goal is 4-in40-on-5 – four within 40 miles on the I-5 corridor.”

The target reader remains the same throughout BVM. Its international publications – more than 400 of them – target upscale neighborhoods with news of their community and feature profiles of people who live within the area of distribution. The company bills itself as “specializing in private, family-oriented, neighborhood-specific magazines that serves residents, homeowners associations, villages, and local businesses.”

Southside Living gets delivered to more than 3,000 homes monthly, as Pillinger writes on his Linked In page, as a “high-end community magazine that caters

What I do is help businesses target and penetrate the most affluent buyers in the marketplace by partnering with residents and homeowner associations….” exclusively to homeowners in the affluent neighbourhoods of Chuckanut Drive, Edgemoor, Fairhaven, and South Hill.”

This, after more than 30 years as a (strike up the Allman Brothers) rambling man with a love for researching, editing, collating, and selling photos.

Pillinger began as picture editor with the All-Sport agency. After taking a couple of years off to backpack around the world, he returned to All-Sport in 1989.

Then intermittently as a freelance photojournalist he serviced five national newspapers in England and two in Australia from mid-‘90s to mid-2000s.

Growing up about a mile from the storied tennis courts of Wimbledon, in the borough of Merton on the southwest side of London, Pillinger eventually worked as a photo editor on the desks of some of the largest news services in the world – All-Sport, Getty Images, and Reuters News Agency. At his start with All-Sport he was picture editor and researcher, and progressively the overseas sales manager covering 30 countries, the picture desk editor, and the wire editor on location.

His assignments evolved on a larger scale with the Winter Olympics in Sarajevo, then Yugoslavia, preparing on-site the photos for Sports Illustrated. Among his wide-ranging assignments, he covered events on six continents, including multiple professional cricket tours in England and Australia, the Olympic Games, soccer World Cups, the Formula.

Most memorable? He writes, “I worked a 36-hour shift on September 11th 2001, editing, moving and selling Getty's coverage of the terrorist attacks to clients around Asia-Pacific and realizing $280,000 in picture sales.

He started with Reuters as a picture sales specialist out of Seattle in 2006 and settled in Bellingham soon thereafter. “I’ve worked the next seven years out of my home here for Reuters,” he said. “I wanted to stay here as a single parent because of my son, Sid, who is 12.”

Then along came Best Version. “When I started they had 200 of these specialized magazines,” Pillinger said.

“Now, it’s 400. It takes a lot of resilience to get one going.

I was in pre-print stage for three months until I hit the advertising baseline required.

“That’s why I work hard to nurture and support them.

They’ll call and say, ‘Hey, Dave, how do I handle this.’

My personal daily support is vital to their success.”

As an adventure-seeking youth his entrepreneurial spirit has carried him around most of the globe, including selling about $3 million worth of photography annually for Reuters in North America for eight years.

Now he’s found a niche and a home in the ‘hood. (You choose the spelling….)

David Pillinger, publisher of Southside Living Magazine, provides support for other independent publishers in his Northwest division, like Jamie Webster (left) whose publication Lake Views is coming soon.

WHATCOMBUSINESSALLIANCE.COM | 49

NW BUSINESS EXPO & CONFERENCE

WBA 2016 NW Business Expo & Conference Navigate Your Business Future

By Business Pulse Staff

H

ighlighting the 31st year of this largest business-to-business exposition north of Seattle, the Whatcom Business Alliance presents a panel of speakers to discuss cross border issues and opportunities during the conference portion on Wednesday, Oct. 26.

The event takes place at the Event Center at Silver Reef, 2-7 p.m.

The theme of this year’s Expo is “Navigate Your Business Future.”

Expo organizers expect more than 60 exhibitors presenting products and services in technology, manufacturing, finance, business services, and logistics to over 500 attendees. The Expo offers businesses a unique setting to interact with potential clients and customers from Seattle to Vancouver, B.C. “The opportunity to get in front of decision makers is huge,” said Mario Bonilla, a senior account manager at ServiceMaster in Bellingham. “At the WBA's Northwest Business Expo those decision-makers are out walking the floor. The chance to meet face-toface and make the pitch is incredibly valuable. The ROI is well worth it.”

Registration for booth exhibits remains open until the spaces sell out. Pricing options range from $765 for non-members to the WBA New Member Package Plus at $1,425 which includes a Silver level membership in the WBA, booth space, and a full page ad in Business Pulse Magazine. Currently paid members receive special pricing. Please call for a reservation (360.746.0418).

50 | BUSINESSPULSE.COM

WBA President Tony Larson (center) visits with an attendee at the NW Business Expo & Conference. (Staff photo)

PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS

LOOKING ACROSS the four-building domain of The Lighthouse Mission in Bellingham, its new executive director, Hans Erchinger-Davis eagerly anticipates initiating even more expansion as homelessness continues to rise.

52 | BUSINESSPULSE.COM

personally speaking WITH

Hans Erchinger-Davis Interview & photos by Mike McKenzie

I

n a journey that has led him from flying around the world to ‘flying’ down Alabama Street on his work commute by electric skateboard, Erchinger-Davis became the new executive director at The Lighthouse Mission on July 1. He’s been on the Mission’s staff 10 years. His path out of Sehome High School in Bellingham wove through college at Western (business degree), global sales in Seattle, very brief work in Australia (a train wreck event, literally), seminary in B.C. (Regents), filmmaking, driving a school

bus for Lummi Nation, marrying, oil painting, finding himself in the coming and going, and eventually making the Mission his mission.

During broad stretches of a long conversation with Managing Editor Mike McKenzie in an upstairs corner office on Holly Street downtown, with interruptive bursts of talking about and making Guatemalan coffee in a double-bulb-shaped brewer (he roasts his own beans, too), Hans talked about new – Good Neighbors, 80-bed drop-in – and coming plans (expansion, an additional site, new meal arrangement), and working to diminish homelessness and its attendant hopelessness through Christian-driven action. All roads led back to here….

WHATCOMBUSINESSALLIANCE.COM | 53

PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS

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I feel so fortunate to do work that is so fulfilling for me, and who I am, in the town that I grew up in. I’ve traveled around the world and found nowhere more I’d rather be. I love this town.

‘WILD WEST’ AURA I have a personality that really enjoys characters – I love folks who are kinda wild and surviving with their hands – kinda Wild West-style. And the drama that can unfold – I get a real kick out of that. I haven’t found anywhere else that allows that kind of engagement.

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When I started looking for jobs, I ended up with a small tech company as a sales rep in Seattle area and did some more traveling, mostly in Europe…selling data acquisition processor boards – the test and measurement industry – to research universities, military, automotive, etc. Very interesting applications, but I didn’t love computers. That wasn’t my passion.

SEMINARY & FILMMAKING Couple of years into that I decided to go to seminary. It spruced up the humanities side of me. I moved up to Vancouver, B.C., and attended Regent College. I took some classes in filmmaking and did a couple of small film projects. Theological and storyteller went together.

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SCHOOL BUS DRIVER Finishing my last couple of classes took a while because I came back to Bellingham and worked some random jobs, like school bus driver for the Lummi Nation. The woman who is now my wife was working out there in the housing program, and she connected me up.

Then, we did this documentary with the Lummis about their

response to 9-11 by the carvers. It did well – went on tour and wound up in the Smithsonian – and was very fulfilling.

FILM, OR HOMELESS? It was a great process determining, ‘Do I really want to do this vocationally?’ I was very engaged and had boned up on the whole

“I decided to become engaged (in work) here – and it’s blowing my mind. Part of my reasoning was how interesting people at the Mission are. Man, this is good stuff.” thing, and I was thinking filmmaking. As that project was winding down I had just picked up a job here (Lighthouse Mission).

I still did some film festival stuff, here and there, using vacation

days. But I really had to weigh: working with the homeless in my hometown, or the filmmaking thing?

It was a tough, tough choice. I had the first project under my belt, but if I wanted this as a career I’d have to move to L-A or New York. And I just didn’t want to live there. Freshly married, starting a family, love this area….

So I decided to become engaged here – and it’s blowing my mind…. how interesting people at the Mission are, with so many great stories, so rich and so interesting COFFEE ROASTING and brewing rank high among Exec Director Hans Erchinger-Davis’s many avocations. (upper right) He prepares a cup in a favorite brewer for a visitor to his office, though he usually brews by pour-over. (below, left to right) Operations Manager Justin Reeves, Program Director Bridget Reeves, and Development Director Rachel Tinnell stand in the area of the DropIn Center where guests play table tennis, perform barista tasks, and soon will hold 80 new beds.

WHATCOMBUSINESSALLIANCE.COM | 55

PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS and so diverse….allowing so much access to people’s lives as they’re sharing their stories that I would never be allowed behind a camera.

was the most interesting place I’d been to, with the prayers through loudspeakers all over.

WHY SEMINARY?

TRANSFORMATIONS

My faith was very strong. I felt it, it was real, but I couldn’t articulate it as well as I wanted.

I wanted to be more thoughtful and have a good explanation as to why I believe what I believe.

In seminary, you get deep and thoughtful about the things you believe. Church history. Systematic theology. Philosophy. All these things feed into that.

Man, this is good stuff.

As I got deeper into it I found myself changing for the better in the process.

From how can I get these good stories, to more about here are people who are striving to do right, to live the good life, desiring it so bad, had a lot of mistakes in their life, lot of thing that happened to them, lot of things they’d done, a lot RON OLDHAM livens the Donor Development of terrible stuff. (And) I’m office with laughter. He’s usually found at his getting to be in the passenger computer as a member of the Mission’s technolseat with them. Getting to ogy staff. see people’s lives transform on a spiritual level which NO COMPARISON TO FILMS translated into other aspects of Yet so exhausting at the same their life – that was so rich to me, time. Still, this is something I so rewarding, AND to facilitate it, got to feel so deeply over – unlike to be a part of it. Awesome. selling data acquisition boards,

LONG-TERM PLAN While in Seattle living a jet-set lifestyle I was into marketing forecasts, and I wrote a 50-year plan. Part of it was seminary, but I wanted some business experience first. I thought it would be good to work overseas, in tech or oil – the adventurer in me – in the Middle East. In my travels as a kid, Egypt

SHE’S NEW, TOO – Katie Anderson, just a few days on the job at the time of the photo shoot, joins new Exec Director Hans Erchinger-Davis at the planning board in her role as Volunteer Coordinator. She will collaborate on a new clean-up program, Good Neighbors.

or even films. I remember (once) thinking, ‘Oh, here I come Sundance (Film Festival)…Oh boy, OK, I’ve arrived!’ And now I’m here (in a class at the Mission), and that was nothing, compared to this.

Over time, 10 years into getting more responsibility, it just gets handed to you and you run with it, and you get a sense of, well, I feel a deeper calling and sense of vocation in this context than anything else. At the same time you have to be wise with how you’re living (because of) stress, fatigue, burnout…it’ll mess with you.

DEEPER MEANING Later in life I realized how important relationship is with people on the fringe, to know how to help them, but also to know you’re connected. They’re a person, with some problems, Deeper meaning led me…, 56 | BUSINESSPULSE.COM

PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS ultimately, wanting to love on the marginalized, with the love of Jesus.

The most common is domestic violence for women (Agape House), and next would be mental

HOMELESSNESS INCREASING

“I realized how important relationship is with people on the fringe – to know how to help them, but also to know you’re connected. Deeper meaning led me…, ultimately, wanting to love on the marginalized, with the love of Jesus.”

Homelessness is up a lot over the last six years…about 18 percent this last year. When I started here the Mission was about half full.

Now, we’re always full, and just the last couple of years we’ve had to turn people away in the winter.

We have 160 max, average 150 a day. Turnover daily depends on the program someone is in. About three-fourths stay longer-term, anywhere from a month to a year, and about 40 a day are different folks. (EDITOR’S NOTE: Capacity is about to increase. Read WBA Member Nes on p. 66.)

WHO AND WHY Residents run about 40 percent outsiders and 60 percent locals.

health, and then addiction, all of which are sometimes interwoven.

WHY MORE NOW WHEN THERE’S WORK? We had a 10-year plan to end

MOSTLY STREET-WEARY It’s very complex, and you can get into it very deep. About 95 percent, it took a lot of time to get homeless, and just a few happen suddenly. We’re working with the roughest of the rough. Some become hopeless because they went to a hospital for a couple of months, for example, and they lost their apartment because can’t pay rent, lost job, no family, no savings – a

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homelessness. That plan expired a couple of years ago, didn’t end it, and we got more. I’m not sure what’s driving that. The economy is apparently better. Before 2008 we had calls from companies to get a laborer for a day; that shut completely down. Nobody was getting hired out at all. Our residents were just hanging out. But there’s plenty of work now, so no jobs available is not a driving issue.

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PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS

New program cleans neighborhoods and provides space for relational interaction

rare occasion at the Mission.

But most have been on the street for a while, wrestling with addiction. Domestic violence can be very sudden, but on average they have gone back to their abuser eight times. And when the kids start getting abused, they say ‘I’m done,’ and they leave.

WHAT’S NEW AS EXEC DIRECTOR? Gradual change. Part of it, you have to earn some change in your pocket before you start spending.

Mostly, everybody already knows me as I’ve had my hand in a lot of the existing programs. I’ve got a bunch of stuff on my agenda starting to work out.

NO MORE ‘VICTIM’

JUSTIN MATTIX, Team Lead, Good Neighbors Program

In keeping with a core value at The Lighthouse Mission in Bellingham – creating opportunities for residents to earn their room and board – the Good Neighbors program got under way this month. “It’s community cleanup crews,” Executive Director Hans Erchinger-Davis said.

“We’ll have volunteers take some of our residents and go through neighborhoods picking up trash, really beautifying our area downtown. It’ll be considered as residents contributing to their recovery.”

Justin Mattix on the mission staff has taken the lead on Good Neighbors. He is the New Shelter supervisor, a graduate of Squalicum High School and Bellingham Tech who is working on a degree through Trinity Western.

60 | BUSINESSPULSE.COM

In a purpose statement, Mattix wrote: “This is designed to impact poverty on many levels. On the surface level…by changing the perception of homelessness. (And) It gives a sense of dignity to our guests by allowing them a venue to give back to the community.”

Mattix also said that the program deals with “relational poverty.” He took note of how the void of parents in many of the mission’s guests’ stories creates a need to “fill in that gap…. creating space for our guests to meet healthy role models among our staff and volunteers.

“Good Neighbors is a space where conversations and relationships can form naturally as guests and volunteers pick up trash together.”

–MM

I’ve discovered that people experiencing homelessness want to feel like they are contributing something. They don’t want to have a sense of a victim that needs charity; they want to be a contributing citizen. If you give people free things when they’re not in a place of crisis, that keeps them stuck in that mentality – a victim culture.

CRISIS IS DIFFERENT Occasionally we’ll have somebody show up on our front porch totally naked, something like that, they’re in a crisis. You don’t require anything of them to get them some clothes. But the bulk of our people are not in crisis; most have a chronic problem.

They’ve been homeless for a while.

EARNING THEIR KEEP Somebody shows up and they’re hungry, they want a meal. Well, they can wipe the tables down.

“I earned it.” Everybody has something to give; even in the most broken-down space, they can do something. When you take away that opportunity to contribute, that keeps the person stuck. It creates dependency, entitlement. You don’t

want that. That’s not going to allow the person to mature, grow, move out of their condition.

CHARITY IS TOXIC; EMPOWERMENT NEEDED That’s one thing that probably keeps a lot of our homeless in Bellingham stuck. We have a lot of well-intentioned folks, with generous hearts, totally compassionate – more than any other town I know. But charity often becomes toxic. Actually it doesn’t help. Keeps them stuck. I want to require people, depending on whether in crisis or not, to earn and feel a sense of having earned it. In the future I’m considering ‘chore or charge’ for meals here to promote an empowerment culture instead of dependency.

The freebies drive a lot of homelessness. People are giving the wrong kind of intervention.

Good-hearted, wanting to do the right thing, feels good – but the wrong intervention.

three ways someone can get in – the meal program, the daytime drop-in center, and our overf low shelter. The challenge is making our front door bigger.

STAYOVER’S A PROBLEM Meals and drop-in, we can handle. It’s those nights of staying over is where we’re having a problem. It’s first-come, firstserved, and we’re having to turn people away. So we’re trying to figure out how to do that. Lottery

system?

EXPANSION WITH HOPE Expanding puts a little pressure on the neighborhood we’re in, so we want to be sensitive to that, yet we have to be in a place that’s readily accessible for people to have the motivation with the hope and structure in place to foster motivation. It’s not the end game for anybody, but they need a sense that they can move forward.

If you don’t have that hope, if

Thank You, Whatcom County

for your support in 2016

NEW GOLDEN RULE The new Golden Rule of Service: Don’t do for others what they have the capacity to do for themselves. And, our (staff) Golden Rule number two: Don’t work harder than our residents are willing to work. Anything else is a recipe for burnout.

That’s our underlying philosophy here.

PANHANDLING PAYS; OUTREACH DIFFICULT A big project we’re dealing with right out of the chute is what to do with that 18 percent increase in the homeless that you see on the streets. A lot are not highly-motivated to change. They’re in the life style, can’t afford to change because they’re making big bucks out there (panhandling) to buy their booze and other stuff.

I’d argue that the need is very real for the outreach component of what we already do. We have

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WHATCOMBUSINESSALLIANCE.COM | 61

PERSONALLY SPEAKING: HANS ERCHINGER-DAVIS you’re down on yourself, in the pits, it’s hard to accept anything.

CHRIST-LIKE APPROACH People want to know they’re loved, and accountable.

Homelessness is such a structureless life. If you’re sensitive at all, you know your imperfections and you know you can’t fix yourself.

You need some debts paid, some healing done. You need forgiveness. You need more energy in the system than the system has alone.

You need Jesus. Why was he so

attractive to the rejects of society?

He offered true friendship. The kind that won’t let you be alone in your dysfunction. The kind that’s

“I’ve been here a long time, and I’ve got a bunch of stuff on my agenda starting to work out.

A lot of things I’ve wanted to happen have taken some shift in thinking, and that’s exciting.”

in the business of f lourishing.

THE DRAWING CARD When you offer friendship, mentorship….when people know someone’s interested in you, enjoys you, wants to be with you, it really draws people out of a place of shame and self-hatred.

Those are just a few of the biggies for us. The need is great, and the Mission is truly positioned to do the best in responding to that need.

From local roots, Erchinger-Davis moved around the world and back TAKING INSPIRATION from the biblical tale of the Prodigal Son, ErchingerDavis created this painting that hangs in the hallway outside his office. (Photo

by Mike McKenzie)

In his own words, the executive director of The Lighthouse Mission talks about his upbringing and path to serving the homeless.

I graduated from Sehome High School and Western Washington University, and went off to Regent College in B.C. for seminary. I grew up in the Christian faith at Hillcrest Chapel on the south side, from birth to 21 when I moved to Seattle.

As a kid my folks took a little over a year off and we traveled around the world, literally. I was 12-13 years old.

My folks pulled me and my sister out of middle school, and we flew to five major stops – Japan, Hong Kong, Bangkok, Cairo, and Paris. At each stop we’d tour around and see other countries. In Europe we rented a motor home to tour all over the continent. On one trip we smuggled Bibles into Romania under the floorboard of the van.

All that travel was very formative for me, entering my teens, getting to see how big the world is – a lot more than just America. Impressionable, obviously, and as I grew up and went to college, studying international 62 | BUSINESSPULSE.COM

business here at Western, I wanted to travel and see more of the world.

So when I finished, I went to Australia to find work.

It didn’t work out. I survived a train wreck there that was tragic; many people died in it. So I flew out about an hour later to Vancouver, B.C., and came back to Bellingham.

I grew up in a not-very-wealthy home, also, so a part of me that felt I was trying to achieve more financially.

Even though we traveled around the world, and my parents were glorious parents, there was still that part of me that noticed other kids had more, and went to a school that typically wealthier kids went to, and I was pursuing the business world and enjoying value creation because of that…living sort of a jet-set lifestyle.

When I was 8 years old my dad brought me down to the Lighthouse Mission for a meal. That was kind of scary for a little kid. Then I see all these donuts they hand out, and – hey, this isn’t so bad. I interacted with some folks – rough looking and scary – but they were kind to me, wanted to know who I was. As a young child that impacts you.

I grew up not having fear of talking to people that some other kids my age thought were scary. It has served me well.

Member Spotlight featuring philanthropy LITTLE CAESARS TEAMS WITH B&GC ‘LITTLE CHEESERS’

Little Caesars helped Boys & Girls Clubs of Whatcom County raise $8,000 through a third year of a “Little Cheesers” campaign recently – 60 percent more than last year. The funds come from customers making a gift at the register. “We have contributed free pizzas to the local clubs since we opened our first Bellingham store in 1988,” said Rob Coulthurst (holding the $8,000 check with CEO Heather Powell of the Whatcom Clubs)., Coulthurst is CFO of Target Market Enterprises and manager of marketing for local stores. “In a typical year we donate around 200+ pizzas to the Clubs.” (Photo courtesy of Boys & Girls Clubs of Whatcom County)

ADELSTEIN B&GCWC ‘GREAT FUTURES’ CAMPAIGN Company president Rick Adelstein at Louis Auto Glass in Bellingham (est. 1929), chairs the “Great Futures” campaign for the Boys & Girls Clubs of Whatcom that serves as the clubs’ annual fundraiser from September through October. It builds to a climax at the 17th annual breakfast Nov. 3. “I've been a supporter of Boys & Girls Clubs of Whatcom County for many years, and I understood the breadth of their impact,” Adelstein said. “When I recently visited one of the Clubs and met some of the kids and staff, I realized how transformational and vitally-needed their work really is in our community.” (Photo courtesy of Louis Auto Glass)

PHILLIPS 66 PHILLIPS 66 SOCCER PARK Whatcom Sports & Recreation, which operates the Bellingham Sportsplex, dedicated two new turf fields at the recently-renamed Phillips 66 Soccer Park. The event recognized the completion of a $2.7 million upgrade of the

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two lighted, turf fields. This culminated a public/private partnership, with $2 million allocated from the state of Washington and $700,000 in a grant from Phillips 66 for the funding of the project.

The event also hosted an exhibition match by the WFC Rangers. (Photo courtesy of Phillips 66 Ferndale Refinery) Soccer Park. The event recognized the completion of a $2.7 million upgrade of the two lighted, turf fields. This culminated a public/ private partnership, with $2 million allocated from the state of Washington and $700,000 in a grant from Phillips 66 for the funding of the project.

The event also hosted an exhibition match by the WFC Rangers.

(Photo courtesy of Phillips 66 Ferndale Refinery)

Pictured: a solar power system was designed to support the LED lighting used in the kiosk. Some key components of the system include a 160 Watt – 12 volt solar panel, 80 AMP hour battery and a digital charge controller.

Pictured: Bob Hall, Co-Owner, T

President, Signs Plus

When the students of Whatcom Community College came to Signs Plus Inc. with the vision of a simple Student Information Kiosk on the quad, Signs Plus turned their ideas into innovation.

The Signs Plus team put their heads together to go above and beyond the sign industry standard, as well as the student’s expectations. Navigating the challenges of running power to an LED-lit sign on the quad and keeping in line with WCC’s objective for campus sustainability, Signs Plus began a pioneering endeavor. The end result: an innovative Solar Powered LED-lit Message Kiosk.

The LEDs run along the top of the kiosk on both sides to illuminate the information boards below, only drawing 15 Watts combined. The system is programmed to light up after dusk, and remain illuminated for five hours.

Not only is the solar panel a functional component of the kiosk, but it also brings an environmentally friendly design aspect that is aesthetically pleasing to the eye.

The Signs Plus team is not afraid of a challenge, and they look forward to continuing to integrate solar power into the sign industry. If you are interested in incorporating solar technology into your sign or lighting system, give Signs Plus Inc. a call.

View our other projects at www.SignsPlusNW.com

ILLUMINATED SIGNS | NON-ILLUMINATED SIGNS | THEMING & DECOR 766 MARINE DRIVE ~ BELLINGHAM, WA 98225 | 360.671.7165 | SignsPlusNW.com

Member News Lighthouse Mission expands beds, hours at drop-in center

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uring his Personally Speaking interview (p.

52-62), Executive Director Hans Erchinger-Davis at The Lighthouse Mission commented, “We need a bigger front door – a bigger overflow shelter.” At the time, the mission could take in 40, maximum, and open only Monday-Friday from 12:30-5 p.m.).

Shortly thereafter, he announced the addition of 80 new beds to the Drop-In Center (DIC) at 1013 W. Holly Street, half-a-block across the street from the main building.

Tripling in capacity, The DIC will serve as the Mission’s Emergency Shelter beginning this month.

Hours expanded from 22 ½ hours a week to around the clock every day. The new spaces will sleep up to 80 men, and thereby free up the previous overflow shelter space for up to 40 women. Also, the mission will serve three meals a day in the DIC.

Prior to the addition ErchingerDavis said of expansion, “How do we make that happen? The city (Bellingham) is trying to help, looking for a site, permitting, all that stuff, to get passed through quickly.

We’ve run out of footprint.”

The new solution is temporary, he said, and the Lighthouse Mission will absorb the initial costs of staffing. “This space will be used as a low-barrier shelter until another

OPERATIONS Director Justin Reeves in front of the Light House Mission's Drop-In Center. (Staff photo)

Alaska Airlines Adds Kona The Port of Bellingham has announced weekly, nonstop passenger service starting Nov. 12 from Bellingham International Airport (BLI) to Kona on Hawaii Island, home of world-renowned snorkeling and the Volcanoes National Park. Alaska’s seasonal service from BLI to Maui starts up again Nov. 6.

“The Big Island of Hawaii is one of the top-rated travel destinations in the world. Alaska Airlines is offering very competitive fares and we anticipate high demand for these flights,” Aviation Director Sunil Harman said.

Alaska Airlines offers one-way fares to Kona starting at $219 on Boeing 737-800 aircraft, accommodating 16 passengers in first class and 147 in the main cabin.

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space is found,” he said. “It’s a safe move. The need was now and significant in dealing with the continuing increase of the unsheltered homeless.”

Emergency Shelter guests will follow basic behavioral expectations, Erchinger-Davis said. Also, policy will allow for people with pets. “As with most Mission programs,” he said. “there are no religious requirements to receive services.

WECU in top 1% of the healthiest credit unions in the U.S. The DepositAccounts 2016 edition of its Top 200 Healthiest Credit Unions in America listed Whatcom Educational Credit Union (WECU) for the third straight year. Just 42 of the total of 6,003 federallyinsured credit unions have accomplished that – an elite top 0.7%. WECU stood out in all primary evaluation categories – Texas Ratio, Deposit Growth, and Capitalization. A more detailed breakdown of WECU’s score is on its dedicated bank page: https://www.depositaccounts.com/banks and search the name WECU.

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Put Yourself In Our Place.

What would YOU do? Curl up with a good book? Take a farm tour? Bike around town?

Explore the Jansen Art Center? Browse the shops inside the Waples Mercantile Building?

Quaff a pint in the tap room? The possibilities are limited only by your mood.

Get in the picture. Fall/Winter rates now in effect. Rooms from $129.

Lynden’s Newest & Oldest Hotel The Inn at Lynden is located in the Waples Mercantile Building - A structure listed on the National Registry of Historic Places.

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100 5th Street, Lynden, Washington

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Member News PeaceHealth St. Joseph has long list of new providers Sarah Langan, ARNP, has joined the PeaceHealth Medical Group Gastroenterology Center where patients receive diagnoses and treatment of a variety of digestive system problems using the latest technology. Her research focuses on nutritional therapy, and on psychological and environmental factors on health and illness.

John Aita, MD, joined the Gastroenterology team. Dr. Aita earned his medical degree at the University of Nebraska Medical Center in Omaha.

He was the American College of Physicians’ 2015 Operational Physician of the Year (army chapter), and he has special interests in inflammatory bowel disease; liver disease, including pre- and post-liver transplant care; and intestinal microbiota. Dr. Aita is a retired lieutenant colonel in the Medical Corps of the United States Army and has served two deployments to Iraq. He most recently worked as a gastroenterologist at Madigan Army Medical Center in Fort Lewis, Washington.

Penelope Barnes, MD, PhD, joined PHMG’s Infectious Disease team. She earned her medical degree from the University of London and her PhD in microbiology from Tufts University.

Her medical interests include orthopedic, fungal, spinal and neurological infections; outpatient IV antibiotic therapy (OPAT); infections in transplant and cancer patients; and bacterial pathogenesis.

Thomas Rand, MD, PhD, and David Pavlik, DO, joined PHMG’s Pediatrics team. Dr. Rand completed both his medical degree and PhD in microbiology at Vanderbilt University.

His pediatric subspecialty allows him to manage infections, immune deficiency, rheumatologic and other immunologic disorders, as well as work with children with all medical and mental health needs.

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Dr. Pavlik earned his Osteoathic Medicine doctorate at the University of New England (Maine). His background blends research, instruction, quality improvement, and volunteer work with direct medical care.

Katrina Murphy, PA-C, MPH, joined PHMG’s Internal Medicine team. Murphy earned a Masters of Physician Assistant Studies and Masters of Public Health degrees at Touro (Calif.) University. She recently completed research on evaluating counseling services offered for children, creating emergency preparedness programs in schools, and assisting with Zika virus outreach and education.

Kristin Page (formerly Jeppesen), ARNP, has joined Medical Group Family Medicine as the Bellingham clinic’s 14th clinician. She enjoys treating and building relationships with patients from infancy to seniors, particularly teens, young adults, Spanishspeakers, and the LGBT community.

PHSJMC's Och Named to Board for National Quality Award The Commerce Department’s National Institute of Standards and Technology (NIST) has named Joni L. Och to the Board of Examiners for the 2016 Malcolm Baldrige National Quality Award – the nation’s highest honor for organizational innovation and performance excellence. Examiners review and evaluate applications for the award. Och has been the quality director for PeaceHealth St. Joseph Medical Center for the past 10 years. She holds a B.S. degree from Montana State University and an MBA from Western Washington University.

Please socialize with us on Facebook at both the Business Pulse Magazine page and the Whatcom Business Alliance page.

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SPECIAL REPORTS: ECONOMIC & ENVIROMENTAL IMPACT

BP’s boost to U.S. economy ‘highest in the energy industry’ PROCESSING AN AVERAGE of about 234,000 barrels of crude oil a day, this BP refinery at Cherry Point provides about 90 percent of it as transportation fuel (mostly at ARCO gas stations around the state), and the rest goes to aluminum smelters worldwide.(Photo courtesy of BP)

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P America has made many headlines in the U.S. over the last 10 years, including $90 billion in positive influx into the U.S. economy and a historic $20.8 billion settlement – largest in American environmental history – for the April 2010 Deepwater Horizon disaster in the Gulf of Mexico. BP Cherry Point in Ferndale made the news recently as one of the sites in Washington impacted by the state’s new Clean Air Act, limiting carbon emissions.

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BP INVESTED MORE than $750,000 million to modernize this refinery at Cherry Point, including technology three years ago to produce diesel fuel containing an ultralow percentage of sulfer. The Cherry Point facility also helps underwrite the BP Heron Center for Environmental Education at nearby Birch Bay State Park. (Photo courtesy of BP)

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OUSTON – A study released this month from BP’s U.S. headquarters revealed that the corporation injected $80 billion into the American economy last year.

marketing and trading, renewable energy, and technology research and development.

During 2015, BP produced 643,000 barrels of oil equivalent a day in the U.S. —roughly onefourth of the company’s global output.

Three oil refineries, BP Cherry Point in Ferndale, in Indiana, and

BP Cherry Point Refinery has been a Washington state fixture since 1971 when it began refining crude oil off tankers coming from the north slopes of Alaska. The refinery provides one of the stoutest contributors to the local economy, employing almost 1,000 and paying aggregate taxes of about $73 milThe company’s U.S. Economic lion.

Impact Report 2016 painted The BP America report a comprehensive overview, included these comments from Three oil refineries – BP Cherry including details such as the Cherry Point Refinery spending $20 billion with Point in Ferndale, in Indiana, and in Manager, Bob Allenson: “Our vendors, and providing about employees are the fabric of the Ohio – can process up to 744,000 14,000 jobs, and supporting community where we live and about 130,000 more indibarrels of crude oil a day. work.”

He cited as examples an rectly.

Earth Day 2016 initiative of BP The report also outlined in Ohio can process up to 744,000 workers and neighbors planting 600 charitable donations to initiatives in barrels of crude oil a day.

BP also trees and shrubs next to a salmoneducation, veterans, and conservaleads the North American market bearing stream on BP rural proption programs. in natural gas, and its petrochemierty. “We also host an annual food BP’s business activities include cal and lubricant facilities supply drive, and we’ve been the largest oil and natural gas exploration and Castrol brand greases, engine oils, annual contributor to the Whatcom production, fuel refining, petroand more, plus chemicals used in County United Way Foundation for chemicals, lubricants, shipping, fabrics and packaging. many years now.”

BP Cherry Point Refinery - By the Numbers: About 925 employees.

Community investment: $4.6 million donated to United Way since 2004.

Additional jobs supported: approx. 6,275.

Combined property, environmental, and business tax paid: $73 million.

Spent with vendors: $235 million-plus.

Retail gas stations (ARCO): 125

WHATCOMBUSINESSALLIANCE.COM | 71

SPECIAL REPORTS: ECONOMIC & ENVIROMENTAL IMPACT

Washington adopts first-of-its-kind rule Clean Air Act aims to cap and reduce carbon pollution

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LYMPIA – In an effort to protect all that Washington has to offer future generations, this month the Washington Department of Ecology (DoE) is introducing a new plan to help curtail climate change, as announced by DoE Director Maia Bellon.

After months of stakeholder meetings, and public review and input Ecology adopted a unique clean air rule. “This marks a watershed moment in our country’s history,” Bellon said. “We are taking leadership under our clean air act, adopting a strong and practical plan to reduce greenhouse gases, and doing our fair share to tackle climate change.”

Some scientists have reported for several years that carbon pollution is the primary cause of climate change.

Hence, last year Gov. Jay Inslee directed DoE to cap and reduce carbon pollution under Washington’s Clean Air Act. 72 | BUSINESSPULSE.COM

Under the new rule, businesses responsible for 100,000 metric tons of carbon pollution will be required annually to cap and then gradually reduce their emissions.

If a business cannot limit its own emissions, it has other options. It could develop a project that reduces carbon pollution in Washington, such as an energy efficiency program.

Businesses could also comply by buying carbon credits from others or from other approved carbon markets.

If a business cannot limit its emissions, other options include developing a project that reduces carbon pollution in Washington….(and) buying carbon credits from from approved carbon markets.

The plan relies on businesses to trade independently among themselves and with other markets. All emissions reductions, projects, and trading would receive validation by independent auditors with oversight

from DoE. Natural gas distributors, petroleum fuel producers and importers, power plants, metal manufacturers, waste facilities, and state and federal facilities would be included in the plan and they must show their emissions declining by an average of 1.7 percent a year starting in 2017.

Washington appears as particularly vulnerable to a warming climate.

Communities in the state depend on snow-fed water supplies to provide drinking water, irrigation for agriculture, and about 65 percent of the state’s electrical power.

Shellfish, a major marine industry on Washington’s coastlines, are susceptible to ocean acidification – created when carbon dioxide reacts with seawater.

And in eastern Washington frequent wildfires threaten air quality and the health of people with asthma and other breathing difficulties.

Ecology’s rule goes into effect Oct. 17, 2016. For more information about the Clean Air Rule, visit the Department of Ecology website www.ecy.wa.gov.

Todd Myers | Environmental Director Washington Policy Center The Washington Policy Center is an independent, non-partisan think tank promoting sound public policy based on free-market solutions. Todd Myers is one of the nation’s leading experts on free-market environmental policy and is the author of the 2011 landmark book Eco-Fads: How the Rise of Trendy Environmentalism is Harming the Environment. His in-depth research on the failure of the state’s 2005 “green” building mandate receives national attention. He contributes to The Wall Street Journal.

Climate accounting isn’t climate action

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ne group the public often ignores when it comes to create climate policy is accountants. In reality, creative accounting is behind many of Washington’s environmental campaigns.

Take, for example, the campaign to block proposed export terminals in Washington state. Some claim these terminals increase carbon emissions by allowing the export of coal. One group breathlessly claimed the terminals “would have caused twice the amount of carbon pollution that the entire state of Washington currently emits.”

Change the words and see if it makes sense: “Cattle industry plans for exporting beef would have produced twice the amount of calories the entire state of Washington currently eats!”

It sounds like a recipe for horrendous obesity. Not really.

Countries would simply import beef from elsewhere, essentially eliminating impact on the worldwide consumption of beef.

Blocking exports from Washington state does not reduce global carbon emissions. China and other countries will simply substitute coal and oil produced elsewhere.

Even if Washington state could block all coal exports to China, the effect would only be felt decades from now when other worldwide sources run low.

The recognition that energy can be substituted eludes environmental activists. Rather than understanding that energy is fungible, they focus on accounting tricks that simply move carbon emissions off Washington’s ledger and onto that of other countries and states.

The City of Seattle recently used a similar game of accounting.

Recently the city released a report with a hopeful claim: “Seattle’s greenhouse-gas emissions are on a downward trend, dropping 6 percent between 2008 and 2014.”

Touting itself as a climate leader, the city had been embarrassed to admit last year that it had missed its previous,

TODD MYER, our regular guest columnist as the Director of the Center for Environment at the Washington Policy Center in Olympia, tweeted strongly in opposition to the state’s new Clean Air Act. He cited several sources in support of his positions.

WHATCOMBUSINESSALLIANCE.COM | 73

SPECIAL REPORTS: ECONOMIC & ENVIROMENTAL IMPACT self-imposed carbon reduction targets. This new report appears to show the city has turned the corner.

Until you take a closer look.

First, the period runs from 2008-2014. It is no accident the city chose the year before the Great Recession to begin its analysis. The downturn resulted in a significant reduc-

Blocking exports from Washington state does not reduce global carbon emissions. China and other countries will simply substitute coal and oil produced elsewhere….(and) Even if Washington state could block all coal exports to China, the effect would only be felt decades from now…. tion in energy use. As the economy recovers, that trend will change.

Second, some of the reduction comes from moving emissions off Seattle’s ledger. For example, their own report admits the reduction in manufacturing emissions is “mostly due to decreased production” of concrete. Instead of manufacturing concrete in Seattle, it was produced elsewhere and shipped.

As in the case of coal exports, finding an alternate

source and shipping it does nothing to reduce the worldwide level of carbon emissions.

Some of the city’s claimed success does, in fact, come from real carbon reductions. Those, however, are independent of city policy. A significant area of reduction comes from the increased fuel efficiency of cars. This may be federal policy, but nothing the city did had an impact.

Support for such accounting gimmicks exposes a tension between what environmentalists say about the risk of climate change and their advocacy of accounting gimmicks. Rather than demanding effective results – and demanding change for ineffective policies – many who claim to care about climate change put their energy into efforts that do little or nothing to solve a problem they call “catastrophic.”

Whether environmental activists realize it or not, they are often bailed out by free-market incentives to become energy efficient. They often take credit for market-induced carbon reductions even as their own policies fail.

The free market is the best system ever invented to do more with less. It rewards those who save resources (with money in their pocket) and punishes failure (with less of that money).

Accounting is only useful if it reflects real-world results. If climate activists care about climate change, they need to reconnect those two.

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Erin Shannon | Director, WPC for Small Business Erin Shannon became director of the Washington Policy Center for Small Business during January 2012. She has an extensive background in small business issues and public affairs. The Center improves the state’s small business climate by working with owners and policymakers toward positives solutions.

Initiative 1433 looms large on the Ballot:

I-1433 paid sick leave mandates, and $13.50 minimum wage for Washington workers

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his fall, voters will have their say on whether the state’s minimum wage should go higher than the current $9.47/hour (highest in the nation), with future automatic increases indexed to inflation.

Initiative 1433 would increase the state minimum wage to $13.50 by 2020, as well as mandate paid sick leave for every worker.

If voters approve Initiative 1433, the state’s minimum hourly wage will increase to $11 in 2017, $11.50 in 2018, $12 in 2019, and $13.50 in 2020. The minimum wage would then go up automatically every year according to inflation.

Initiative 1433 also would require every employer to provide paid sick leave, starting in 2018. Workers would receive one hour of paid sick leave for every 40 hours worked, and they could begin using the leave after 90 days of employment. Employees would be allowed to carry over 40 hours of unused paid sick leave every year, with no limit to how many days of accrued paid leave could be used in a year.

Supporters of Initiative 1433 say the higher wage and paid leave mandate would lift up workers and families and boost our local economies. Of course, these benefits would

go only to people who can find a job and remain employed. The mandates would hurt young workers, minorities, immigrants, and other low-skill job seekers who end up priced out of the labor market.

Voters should heed the warning of the University of Washington (UW) researchers hired by Seattle officials to study the impact of that city’s $15 minimum wage law.

The UW study, which examines the first-year implementation of the city’s $11/hour minimum wage, reveals predictable consequences: While Seattle’s lowest-wage workers earn slightly more than before the new law, they have suffered reduced hours and lower rates of employment. These cutbacks have largely offset the slight wage gains of those workers.

Ironically, the study found the earnings gains those low-wage workers enjoyed would have happened anyway, thanks to Seattle’s booming economy. The UW researchers determined that “most, if not all” of those higher earnings come more from the region’s booming economy than the wage law itself.

At the most, the study showed, 25 percent of low-wage workers’ income gains, just a few dollars a week on average, can be attributed to the city’s wage mandate.

So the strong economy would have naturally increased wages, and those naturally occurring gains would not have resulted in what the

study calls the “negative, unintended consequence” of fewer hours and reduced employment.

Even worse, as a result of the “negative unintended consequence” of the city’s $15 wage law, Seattle’s lowest wage workers actually are doing worse compared to low-wage workers in other parts of the state since the wage law took effect. The UW study found that despite the city’s hot economy, Seattle’s low-wage workers are “lagging behind” their counterparts from other cities with less robust economies.

As the UW study summarizes: “The major conclusion one should draw from this analysis is that the Seattle Minimum Wage Ordinance worked as intended by raising the hourly wage rate of low-wage workers, yet the unintended, negative side effects on hours and employment muted the impact on labor earnings.

The Seattle economy (as well as comparison regions in the state of Washington) is booming, and this strong macroeconomy has led to improved outcomes for low-wage workers. Yet, our best estimates find that the Seattle Minimum Wage Ordinance appears to have lowered employment rates of low-wage workers. This negative unintended consequence (which are predicted by some of the existing economic literature) is concerning and needs to be followed closely in future years, because the long-run effects are likely to be greater as businesses and workers have more time to adapt to WHATCOMBUSINESSALLIANCE.COM | 75

GUEST COLUMN: SMALL BUSINESS the ordinance. Finally, we find only modest impacts on earnings. The effects of disemployment appear to be roughly offsetting the gain in hourly wage rates, leaving the earnings for the average low-wage worker unchanged.”

The phrasing “…appears to have lowered employment rates of low-wage workers…,” is, obviously, a nice way of saying more people can’t find jobs because of Seattle’s harsh $15 hourly wage law.

These alarming findings come

on the heels of the first phase of the UW study that was released in April 2016: The research team found that while grocery, retail, and rent prices in Seattle increased by just a couple of percentage points since the wage law went into effect, prices in the restaurant and fast food industry, which rely heavily on minimum wage workers, increased an average of 9 percent from just a year ago.

In that same study many Seattle employers reported they will no longer hire unskilled and inexperi-

enced workers for entry-level jobs.

This leaves the workers needing those entry-level jobs the most with fewer job opportunities.

Now this second phase of the UW study shows the “negative, unintended consequence” of reduced hours and fewer employment opportunities for the lowest-wage workers in Seattle, whom the higher wage is supposed to benefit.

The UW study only covered the

These benefits would go only to people who can find a job and keep it. The mandates would hurt young workers, minorities, immigrants, and other low-skill job seekers by pricing them out of the labor market. initial phase-in of the city’s $15 wage law. The law went into effect on April 15, 2015, and increased the minimum wage to $11/hour. The study examined the subsequent nine months. On January 1, 2016, the next phase of the wage law kicked in, with a minimum wage of $13/hour.

The UW study has yet to study those impacts. One can only speculate on what “unintended, negative side effects” the UW researchers will find with that higher wage.

In their conclusion, the UW researchers included a warning that cautions against assuming that a higher statewide minimum wage – such as the statewide $13.50 wage proposed in Initiative 1433 – would have the same modest positive effects as Seattle’s wage law. The researchers pointed out that a high minimum wage could have significant negative impacts on regions where the local economy is not as strong as Seattle’s.

To wit: “Seattle’s strong economy may

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make it capable of absorbing higher wages for low-wage workers, and this capacity may not be present in other regions.”

Again, that’s a nice way of saying that people who don’t live in Seattle could be in for a lot of economic pain if Initiative 1433 passes.

Even with their strong economy Seattle’s low-wage workers are not doing as well as low-wage workers in other parts of the state. And that is just with the city’s first phase-in of the minimum wage at $11.

What will the impacts be of the current $13 wage on low-wage workers in the city, or the final wage of $15? And what happens when Seattle’s economic boom sputters out?

Only time will tell.

Unfortunately, we don’t have that time before voters cast their ballots on I-1433. We don’t know for certain what the “unintended, negative side effects” might be of a higher minimum wage in cities around the state whose economies are

not nearly as strong as Seattle’s, and whose cost of living is much lower.

For example, the cost of living is so low in Kennewick, workers living in that city and earning the state minimum wage of $9.47 enjoy the nation’s highest “real” minimum

A study shows that the “negative unintended consequence” of Seattle’s $15/hr minimum wage, Seattle’s lowest wage workers actually are doing worse compared to other parts of the state since the wage law took effect. wage. Spokane ranks 3rd in the nation and Yakima ranks 7th, thanks to those cities’ below average cost of

living.

The flip side to those below average costs of living is higher than average unemployment rates.

Yakima’s unemployment rate is a high 6.8%, compared to the state’s overall rate of 5.8%. Kennewick’s unemployment rate is slightly better at 6.3%, with Spokane at 6.5%.

What we do know for certain is that those unemployed workers will not benefit from a $13.50 wage and paid sick leave mandate, and they will likely have an even harder time finding a job.

Initiative 1433 will push more young people, minorities and immigrant families into what the academics politely call “disemployment.”

Considering that Washington is already struggling with the nation’s 9th highest unemployment rate, perhaps we should focus on policies that would create more jobs instead of imposing even more limitations on the state’s labor market.

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GUEST COLUMN: LEAN OPERATIONS Randall Benson | Lean Operations Randall Benson is a management consultant, author, and Lean master based in Whatcom County. You can visit his blog “The Lean Heretic” at www.leanheretic.com, and his website at www.bensonconsulting.com.

Want big change?

Sound a wake-up call!

All leaders will be faced, at some point, with that moment when they must engage their organization in big change. Big change only happens when passionate leaders engage peoples’ imagination and sustain an organization’s commitment over months or years.

Big change results in transforming organizations, recovering from dislocations, or exploiting windows of opportunity.

It makes sense to sound an organizational wake-up call to start the change in motion. President John F. Kennedy’s man-on-the-moon speech or Al Gore’s message in An Inconvenient Truth are well-known wake-up calls. Yours can be about the big change your organization must pursue.

Wake-up calls happen at critical junctures of success or fail. If your organization refuses your call (or you never get around to making one), then the change is dead and failure becomes probable. So, it’s worth fine-tuning your message.

Here are seven tips that will help you create a powerful wake-up call:

1. IDENTIFY THE GAMECHANGER. Let people know that a triggering event (e.g. a dislocation, crisis, or a window of opportunity) has irrevocably changed the game. The organization cannot go back to the status quo.

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2. CREATE A RACE AGAINST TIME AND MISFORTUNE. Make your view known that a dislocation or missed opportunity has consequences that will worsen over time if action is not taken. If the state of misfortune continues,

Name the audacious prize. Make it clear… something much better is possible. Paint a vivid picture of a highly desirable future state…. then customers, the public, stockholders, and employees will suffer and the suffering will only get worse. Action is imperative and time is of the essence.

3. NAME THE AUDACIOUS PRIZE. Make it clear that while people cannot go back to the way things were, something much better is possible. Paint a vivid picture of a highly desirable future state, something bold and new – and ultimately attainable. State the prize in terms of achieving a higher purpose, healing misfortune, and creating real benefit.

4. INVOKE DESTINY. Communicate how the past has uniquely positioned the organization for the upcoming challenge.

Describe how past events and achievements were precursors that have perfectly positioned your organization for the change journey.

5. OPEN SPACE FOR CHANGE. Make it clear that the means to achieve the prize are not predetermined, but are open. The participants will have the degrees of freedom necessary to apply their own creativity. You are opening the door to exploration and discovery.

6. PLEDGE A PAYOUT. Be clear that, while risks exist, the rewards are immense. A successful journey will lead to breakthroughs that will ease suffering and create new benefits. Your organization, and those who undertake the journey, will be handsomely rewarded for success.

7. SOUND THE CALL. Invite others to join you, not to learn best practices or to execute a proven-path project, but to become your companions on a bold new journey — one where they will discover the means to ultimately achieve breakthrough and create the big change.

Jacob Deschenes | Owner Era Capital Management LLC Jacob is a licensed investment advisor and owns Era Capital Management LLC, a registered, fee-only investment management firm serving individuals, wealth advisors, and corporate clients throughout the United States. He uses contrarian methodology with uniquely-developed matrices and mathematical and statistical analyses. Visit www.eracapitalmanagement.com.

Doomsday commentators in mass media have minimal value in investing strategy

T

oday the world is full of professional market commentators sitting on the edge of their seats waiting for the ideal moment to share their “ultimate wisdom” (note sarcasm).

When our financial markets

sell off from a negative event, such as the Brexit outcome in Great Britain last June when it pulled out of the European Union, a particular set of doomsday market commentators come out of the woodwork.

Doomsday commentators on finance and business are the most egregious because they appear only when the story meets the pre-subscribed narrative they seek to hustle.

Hyper-negativity is good for TV ratings, but there is always more to the story.

The untold story about doomsday commentators is that their track record is very poor. When their intended business is to scare you they only need to be right once. After that they can run around the countryside selling books and speaking engagements telling you, “See, I told you so.” And that’s regardless of how many times they have been wrong.

With all the recent uncertainty of events such as Brexit and the U.S. presidential election campaign, a lot of the general public becomes uneasy about all the unprecedented events we face in the future – real or imagined. When news breaks and shakes up the financial markets it's natural to turn on the news for understanding and comfort.

The real question: Do commentators add any value in the investment process, or should we treat the flamboyant rhetoric simply as entertainment? Since we never know exactly the full story on someone's bias, it's best to assume it has more entertainment value than any definitive action plan.

The truth, if there is one, usually lies somewhere in the middle – the same way the markets are made up of a combination of Bulls and Bears.

WHATCOMBUSINESSALLIANCE.COM | 79

GUEST COLUMN: PERSONAL INVESTING Investing does carry some risks and as we have seen in the past, unfortunately, anything is possible.

However, when you have a defined investment plan, if a negative spike occurs you can avoid professional doomsday talking heads and enjoy a nice slice of humble pie in the meantime. Financial news, commentary, and opinions offer little value in the investment decisionmaking process. It's too erratic to be trusted.

A lot of what we hear and read is

emotionally-driven, sensationalized stories – and we’ve talked about the emotion of investing in this space previously. Further, I remind clients all the time that particularly when you are reading something in a newspaper it is old information.

Given the world we live in today the ability to disseminate news and opinion is easier and faster than ever. We each have the ability to freely and cheaply share our opinion around the world to all who are willing to listen. Content aggrega-

tors such as Facebook, Twitter, and major news media outlets have made the business of news and opinion big business.

Whether it's CNBC, Fox Business, Bloomberg, Forbes, etc. (the list is huge) their objective is to

Financial news, commentary, and opinions offer little value in the investment decision-making process.

It's too erratic to be trusted. grab your attention with catchy and sensationalized stories and articles.

They latch onto your emotions to either keep watching or reading, and therefore view more advertisements. Financial news and market commentators care only about their own interest. The decisions on what stories to air or write up will be based on the amount of potential ad revenue.

As a believer in the free market I have no problem with companies operating this way, per se, but as a fiduciary to my clients I know the information carries a bias.

Regardless of whether it is a cable news network or news website they want you to feel they are making you a smarter investor by presenting different perspectives.

What is not so obvious – in fact, often subtle (even subliminal) – is the conflicts of interest involved. Pay to play.

We each have our own opinions based on different experiences, convictions, and beliefs. Just maintain confidence, with help from whoever you trust to advise you on your investing, that yours are just as valuable and valid as the doomsday commentators on the air waves.

80 | BUSINESSPULSE.COM

Jim Kyle| Working Waterfronts As a retired commercial fisherman Jim has assumed the leadership role as president of the freshly-minted, non-profit, volunteer-based, community organizing initiative to help preserve maritime special interests on the waterfront and other Port of Bellingham entities – the Working Waterfront Coalition of Whatcom County.

A Thriving Downtown Waterfront: It starts with attracting boats, and continues with the community will for stewardship

L

et's be up front about this: The continued vitality of our county's maritime sector requires proactive public policy, which depends on supportive municipal governments and a public port that

prioritizes transportation and commerce. Both elements are now in place in Whatcom County. Their continuation depends on support from the public and the business community.

Our toddlers loved a certain short, catchy book about trucks. A Whatcom County version of this book could read, "We like boats. Big boats, little boats. Fast boats, slow boats.

Boats for work, boats for play. We just like boats."

From native Americans' cedar dugout canoes to bulk carriers that call at Cherry Point, boats of all shapes and sizes have always been a keystone for the history, culture, and economy of Whatcom County.

These maritime businesses provide…more than 6,000 jobs in Whatcom County (direct and indirect), according to a pair of recent independent analyses.

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Our shores attract boats because of our strategic location on the bountiful Salish Sea, the unique Inside Passage to Alaska, and the Pacific Ocean liaison to our Asian trading partners.

And unlike many ocean ports of bygone days, our county still provides the harbors, upland facilities, and services necessary to accommodate a diverse fleet.

How do county citizens benefit from our maritime sector? It all starts with the boat.

• One benefit is maintenance dollars that support numerous marine trades.

WHATCOMBUSINESSALLIANCE.COM | 81

• • •

•

Commercial fishing boats attract seafood processors.

Charter and passenger boats attract tourists who eat in restaurants and stay in hotels.

Shipyards, boat builders, and marine construction companies serve both local and worldwide customers.

These maritime businesses provide family wage jobs – more than 6,000 jobs in Whatcom County (direct and indirect), according to a pair of recent

independent analyses.

In addition, boaters of all stripes need insurance agents, bankers, attorneys, accountants . . . the list is endless. Obviously, our thriving maritime sector pumps millions of dollars into the collective bottom line of all county businesses.

Why is that boat moored in Squalicum Harbor? Because its owner can take a very short car ride, or even walk, to providers of needed goods and services. All the nearby maritime businesses that form this critical mass

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depend on each other for their very existence. This harbor-centered maritime mall is the pebble dropped in a pond that sends out ripples supporting a county-wide maritime cluster that includes manufacturers of small boats, cordage, netting, and marine hardware.

The continued strength of this invaluable local maritime cluster depends on our will to maintain it.

People like to be near the water, so working waterfronts everywhere face incursions from developers of retail, office, and residential buildings, whose owners and tenants can pay the highest rates.

Mixed use development will be part of Bellingham's waterfront redevelopment, and, along with a new public park, will increase public access to the city shoreline. This is all well and good. The danger is that existing working waterfronts – including the Blaine and Squalicum Harbor areas, the Bellingham Shipping Terminal, and the Fairhaven Terminal – could be gradually transferred to the highest bidder, piece by piece, and converted to non-marine uses.

Optimism prevails about preventing such an undesirable conversion so that our maritime cluster can continue to thrive. The Port of Bellingham in recent years has reemphasized the nurturing of working waterfronts by offering attractive pricing for marine businesses.

The Shoreline Management Act and the Aquatic Lands Management Act provide barriers to shoreline occupancy by non-marine related uses.

City and county governments also recognize the resilience of the maritime sector and support it through business recruitment and zoning.

The time is right for actions to give this favorable maritime environment some legs through the next inevitable real estate boom cycle and its attendant challenges. Fortunately, a local waterfront renaissance is underway.

The local Commercial Fishermen's Association formed in 2012, and now has about 200 members focused on needs of their key industry group.

ANALYSES SHOW 6,000PLUS JOBS IN WHATCOM MARITIME SECTOR Two recent independent analyses have quantified, for the first time, the economic impact of Whatcom County's maritime sector.

The first, sponsored by the Port of Bellingham, covered maritime businesses based on Port properties. The second, cosponsored by the Working Waterfront Coalition and the Commercial Fishermen's Association, covered all maritime-related businesses based on non-Port county land.

Quoting the report released most recently, created by the Center of Economic and Business Research at Western Washington University, said, "Combining the results from these studies indicates that 6,033 jobs are created or supported by the marine trades – 7 percent of the Whatcom County workforce."

– Jim Kyle, President, Working Waterfront Coalition

The Working Waterfront Coalition, formed in 2014, has grown rapidly to 210 diverse maritime business members. They adopted a mission “…to promote the vitality and economic benefits of our working waterfronts for the citizens of Whatcom County."

Both associations work in cooperation with the Port of Bellingham to maintain our maritime economy and traditions.

The marine vs. non-marine competition for waterfront land will never go away. In the final analysis, the political

will to preserve working waterfronts must reside in local residents and our business community.

We must find better ways to advocate about the benefits our maritime sector. The first ever Bellingham SeaFeast recently helped by attracting both visitors and local residents to our waterfront. Attendees experienced first-hand how a rising tide floats all boats, and floods into the saltwater veins of Whatcom County.

Our ship has come in.

WHATCOMBUSINESSALLIANCE.COM | 83

GUEST COLUMN: REAL ESTATE Mallina Wilson | Owner International Real Estate Investments Inc. Mallina Wilson is licensed with Keller Williams Western Realty/Ben Kinney Real Estate. She is a certified international property specialist and an instructor for both the National Association Realtors and Keller Williams International, specializing in the global market (e.g., Canada, Great Britain, Costa Rica, and more) across all property types.

You have to sell your house again and again and again And on price, you sell to three different sources

W

henever a home is sold, it is sold three different ways (and in one case, price, three different times). And all three ways are a must for a successful transaction on your behalf, either as a seller or a buyer.

An emphasis here is on selling, because right now it’s a busy buyer’s market because homebuyers are trying to take advantage of continuing low interest rates.

Let’s break down the triple-sell components – Price, Presentation, and Marketing – and make it easier for you:

1. PRICE. You don’t have control, nor does your realtor. The buyer does.

You have to sell your home three times – that is, to three different sources. a. To the realtor, so it gets shown to a buyer as a good deal; b. To the buyer, as they go through the home and/or find it online and perceive that it’s the best deal; 84 | BUSINESSPULSE.COM

c. To the bank, because it has to lend to your price with an appraisal which will make or break the deal.

You can’t be too high on your price or you won’t sell, no matter what it is you want. Put want away, get real on the price, and then decide if you are OK selling it at that price. If not, don’t bother listing it.

2. PRESENTATION. This is a major part of the sell.

The first presentation is online.

“Almost every home or property buyer in today’s world will see the property online before they ever see it in person.”

Almost every home or property buyer in today’s world will see the property online before they ever see it in person. That’s true whether they find it themselves, or their realtor sends it to them.

So, careful attention to how and where it presents online is imperative. Next, how it presents when potential buyers walk in the door is even more important because they already have a picture in their mind from the visuals online. In person is actually their second showing of importance.

The seller and the realtor have a partnership in preparing the inperson showing.

3. MARKETING. The final factor that sells a home is how it is marketed. In our field we have become experts at this, and many realtors have a marketing plan that is targeted strategically. Make sure yours does when you’re selling.

Ask questions. Get updates.

Clear and thorough communication is key. When sellers have been surveyed about what they would like more of from their realtors it has been communication. (That’s true for a buyer, too.)

Let your realtor know that you want a strategy for communication so that you feel informed. I use an online tool called Brivity that

allows my sellers to see all that we do to get their homes sold. It contains unedited feedback from realtors that have shown the home, and many other tidbits. My sellers love it. And it provides valuable information for a buyer.

Sellers are resourceful and inquisitive, as they should be, wanting to know where their realtor of choice will be advertising and what they will be doing to get the home sold. Your realtor should be able to show you an aggressive marketing plan.

About 97 percent of buyers find their property online, so wouldn’t you want to know where your realtor will be placing your home for sale in front of 97 percent of the potential buyers who are shopping for a home just like yours? I would.

Now is an opportune time to sell because buyers are trying to capture the record low interest rates. The price of your home is less important than the payment a buyer can afford.

Just 1 percent of an increase in interest rate drops a buyer’s affordability by about 10 percent.

So for simple math, if the interest rate is at 3.5% as the buyer prequalifies at $300,000, and the interest rate jumps up to 4.5% then your now potential buyer can only afford $270,000. (Stop to think about this for a moment.

The first house I bought in the 1980s was at 12.9%!)

That’s a severe price drop – 30 grand. So buyers are out there buying now, and sellers have an opportunity to have buyers competing to take their offer before rates go up.

Conditions make it a potentially great market, either way – selling or buying – and for both, hopefully, if the seller prices carefully, presents superbly online and in-person, and target markets strategically.

Words fall short.

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LIFE IN THE TECH LANE Experts at Tech Help in Bellingham, a division of Big Fresh, provide answers to the questions that are trending among clients. If you have a tech question for our experts, send an email to getanswers@gotechhelp.com

Social Engineering:

The Human Side of Hacking

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alware and viruses aren’t the only online threat your business should be concerned with. There is a more human side to your business security and it’s called Social Engineering.

Traditional computer-based attacks usually depend on some sort of vulnerability within an operating system or a program to deliver malicious attacks to your computers and network. Social engineering, on the other hand, involves psychological manipulation instead—exploiting people into divulging sensitive information about themselves or the business they work for.

Criminals use social engineering tactics because it is usually easier to exploit your natural inclination to trust than it is to discover ways to hack your software.

So how are the criminals distributing their social engineering schemes? In many cases, these hackers use small pieces of information to gain trust or access so they can then carry out their cons fully. Here are a few examples: • A hacker might call saying your company credit card has been flagged for unusual activity and the bank needs to verify your information (credit card number, mother's maiden name, etc.) before issuing a replacement. The hacker will offer up the last four digits of your card and perhaps the date and amount of a recent transaction to gain your confidence and make 86 | BUSINESSPULSE.COM

this sound legit. (These things are found easily in your online trash folder.)

• Another classic con is when an attacker poses as someone in your company or as a consultant. For example, the hacker might pretend to be on your tech support team—complete with fabricated ID card and a clipboard—or another trusted outside authority, such as an auditor. With a little confidence anyone could just tailgate their way into any building.

Hackers might even pose as your Facebook friends or on other social media connections and then glean information from your profile or your posts.

And, as we've seen recently, hackers can get into accounts through lax company procedures which require only minimal bits of information (e.g., billing address and email) to identify users. A high profile example of such was when CNN reported in 2008 that hackers were able to access the email account of then-Alaska governor and vice-presidential nominee Sarah Palin by social engineering. The hackers then used information about her that they gathered to guess the answers to her password security questions, such as her birthdate and home zip code.

So how can you fend of these psychological attacks? Here are a few methods: 1. Never give out any confidential information—or even seemingly non-confidential information about you or your company—whether it's over the phone, online, or in-person, unless you can first verify the identity of the person asking and the need for that person to have that information. You get a call from your credit card company saying your card has been compromised? Say OK, you'll call them back, and call the customer service number on your credit card rather than speaking to whoever called you.

2. Always remember that real IT departments and your financial services will never ask for your password or other confidential information over the phone.

The most important thing you can do to prevent becoming a victim of social engineering yourself is to embrace healthy skepticism and always stand as vigilant as you can.

Just having an awareness of common tricks puts you one step ahead of the game.

TECH: HELP RECOMMENDS

STAFF PICKS:

BEST WEATHER APPS FOR AUTUMN AND WINTER With Fall upon us, and Winter dead ahead, we’ve come up with a list of the top weather apps to help you know whether you need a raincoat, snow gear or sunglasses (or some combination of the three).

Yahoo! Weather (Android, iOS) The beautiful Yahoo Weather (Android, iOS) app boasts a gorgeous interface that is both informative and striking.

The app displays images of your location with matching time of day and weather conditions, with the option to view detailed five-day forecasts, as well as interactive radar, heat, and satellite maps.

AccuWeather (Android, iOS) (Free) AccuWeather (Android, iOS) is an excellent app that provides hourly, daily and 15-day weather forecasts, which can be integrated with your calendar. The MinuteCast feature even provides hyper-local, minute-by-minute forecasts for the next 2 hours.

The Weather Channel (Android, iOS, Windows Phone) (Free) The Weather Channel's free, ad-supported weather app is available on Android, iOS and Windows Phone. The TWC app provides you with a wealth of meteorological data such as temperature, wind and visibility on an hourly or daily basis, with an extended 10 day forecast available.

Dark Sky (Android, iOS) Dark Sky can tell you at a glance exactly when it will rain (or snow) up to an hour in advance, so you’re free to walk the dog or run out to lunch and know you’ll stay dry. You can also explore the most beautiful weather animation you’ve ever seen, both forward in time or back.

WeatherBug (Android, iOS, Windows Phone) (Free) WeatherBug (Android, iOS, Windows Phone) is a free app that provides users with a wealth of weather information, boasting fast, targeted alerts of dangerous weather, accurate forecast data, and Lifestyle Forecasts, all localized through GPS.

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GUEST COLUMN: HUMAN RESOURCES Rose Vogel | Human Resources Anderson Paper & Packaging Rose is the Director of Human Resources for Anderson Paper & Packaging in Ferndale. An MBA graduate of Seattle University, she serves on the Mt. Baker Society for Human Resource Management board as their diversity coordinator.

10 practical employee engagement steps that produce results

E

mployee Brand is an employee engagement survey based on the 10 steps of engagement listed below.

These tools will aid you to determine why people work for your company.

This becomes important intelligence as you create your company brand.

1. LINK YOUR ENGAGEMENT EFFORTS TO HIGH PERFORMERS. Employee engagement is not about employee satisfaction. The last thing you should want is a team of satisfied yet underperforming employees.

2. EMPLOYEE ENGAGEMENT STARTS AT THE TOP. Most studies show that a key employee engagement driver is the

actions of senior leaders. These leaders must demonstrate support for an engaged company culture by personally living their company’s values.

3. ENGAGE FIRST-LINE LEADERS. The old adage that employees join great companies, but quit bad bosses is true.

4. FOCUS ON COMMUNICATION. The cornerstone of positive engagement: Successful leaders recognize the power of a robust communication plan, one built on clarity, consistency, and transparency.

5. INDIVIDUALIZE YOUR ENGAGEMENT. Your philosophy should go beyond the Golden Rule of treating people the way you want to be treated. The new mantra is to treat people the way they want to be treated.

6. CREATE A MOTIVATIONAL CULTURE.

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Leaders cannot motivate employees long-term. Leaders must create motivational cultures with an engaged workforce where employees can flourish and moti-

vate each other.

7. CREATE FEEDBACK MECHANISMS: Companies need to ask employees what they think. Employee engagement surveys provide a great way to assess an organization’s pulse.

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8. REINFORCE AND REWARD RIGHT BEHAVIORS. Employees are incredibly motivated by achievement, more than money. Often, in fact, money can disengage employees if they perceive unfairness.

9. TRACK AND COMMUNICATE PROGRESS. Employees are no different than leadership – they both want to work for a winning organization.

Leaders need to reinforce “ling of sigh” by telling their employees where they’re going, how they’re performing, and where they fit in.

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10. HIRE AND PROMOTE THE RIGHT BEHAVIORS AND TRAITS FOR YOUR CULTURE. Although we place much emphasis on an employee’s educational background and skill sets, people generally succeed or fail because of their behaviors and traits (remember, soft skills count).

Soft skills are personal attributes that enable someone to interact effectively and harmoniously with other people Source: Google Source: Bob Kelleher, author of Louder Than Words: 10 Practical Employee Engagement Steps that Drive Results.

Whatcom Business Alliance

Facilitating business success and Community Prosperity.

Join today.

Call Jon Strong at 360-746-0407 or email jon@whatcombusinessalliance.com

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GUEST COLUMN: MANAGEMENT PRACTICES JANELLE BRULAND | President/CEO Management Services NW The Building Services Contractors Assn. International named Janelle president of the Board of Directors for 2016. She is owner, president and CEO of her company (est. 1995) – with about 400 employees, and $12.5 million in sales during 2015 -- that made Inc. Magazine’s fastestgrowing businesses list last year, and she was named Entrepreneur of the Year by the National Assn. of Landscape Professionals.

"CREATE AN EVENING THAT ALLOWS YOUR BODY AND MIND THE REST THEY NEED, AND YOU WILL END YOUR DAY WELL."

For healthier living, slow the pace and end your day well

S

imilar to an effective workout cooldown, where you unwind the body and heart rate to a resting pace and take the time to stretch the muscles you have used, a similar wind-down period at the end of your day brings you to a place of relaxation and prepares your body for a good night's sleep.

Entrepreneurs and business professionals often pick up the bad habit of working at a crazy frenzied pace until they run out of daylight and crash into their beds.

Here are a few thoughts to consider for ending your day well:

CREATE A SEPARATION BETWEEN YOUR WORK DAY AND HOME LIFE. Do you really need to have your business emails open 24/7?

Be willing to give up the addiction of checking your phone every 10 minutes (or 5, or 1…anybody you know? Like, the person in the 90 | BUSINESSPULSE.COM

mirror?). To prevent this behavior I changed my settings so my emails populate only when I open the program.

In a recent talk by entrepreneur and ABC-TV’s Shark Tank member Lori Greiner, she said she plugs in her cell phone to charge in an entry hall when arriving home from work, and does not touch it again

ficult to separate work from home.

When our two daughters, who both work in our business, come over for dinner my husband and I find it hard to avoid catching up on how our work days went. As it will sometimes be necessary to talk business, we limit the discussions at the dinner table and we set a time where work talk ends.

To give up the addiction of checking your phone every so often, change its settings on when to populate…or, like Shark Tank entrepreneur Lori Greiner, plug it in to charge in a hallway when you get home from work and avoid touching it again until you leave the next morning.

TAKE TIME TO WIND DOWN.

until she leaves for work the next morning.

PUT A CURFEW ON YOUR WORK TALK. In a family business it is very dif-

Think about what things you can do to prepare yourself for a good night of sleep. Given the amazing setting of the Pacific Northwest, my family often takes walks after dinner. And, I enjoy spending time reading in the evening.

GIVE THANKS. Finally, take a few moments at the end of each day to pause and be grateful. We all have so much to be thankful for. If we choose to take our minds off the troubles we have encountered in the day and instead focus on the good things, it calms our minds and spirits.

Create an evening that allows your body and mind the rest it needs, and you will end your day well.

CJ SEITZ | Executive Director Small Business Development Center CJ is the executive director. For 33 years the SBDC has enabled Western Washington University to give back to the business community and has helped to shape the economic future of Whatcom County. The SBDC provides free, confidential advising, technical assistance, and research to business owners and managers in an effort to help businesses thrive throughout Whatcom County.

A primer on how to build your business

O

– and make sure you get paid along the way

ne of our clients at the Small Business Development Center (SBDC) came to see us recently with this question: “My company has grown 100 percent year-over-year, we sell our products like crazy, we have great profit margins, so how is it that everyone gets paid…but me?”

Yikes.

Allison Brown (not her real name) is smart – very smart. She had an innovative product idea and immediately experienced success from the time she launched her business part-time out of her garage.

Is it enough to be smart and have a good product? Of course not; numerous pitfalls and potential problems can crop up as you grow, and how you handle those problems separates businesses that succeed from those that fail.

Allison had started by manufacturing in small batches and her product sold out quickly, so she knew she was on to something.

Demand grew slowly in the beginning on retail sales, but she stayed the course and slowly entered the potentially lucrative wholesale market. Two years ago a national publication featured her product, and ever since then she has experienced

exponentially steady, large sales growth.

At the SBDC we call this a good problem to have. Strong sales with healthy profit margins are essential and a great base to work with. We were sure that with some finetuning of her business model and by helping her shore up some weak spots we could help her.

Our first step was a look at her financial reports to gather a broad picture of the financial health of the business. She had a ton of financial information and we were able to look at what we needed, buried in the details of these reports. We worked with Allison and her accountant to create a few reports that could be generated automatically so that it wouldn’t take hours to analyze and sift through to understand what was happening in the business.

Once we had easy-to-obtain, specific, and accurate financial information we could move on to our next step: Stop the bleeding of cash.

We worked side-by-side with Allison to identify a few ways that her well-earned profits were getting stuck in her business. We identified some slow-paying issues; a few large customers were taking longer to pay their invoices. Many of our fast-growing clients are surprised to learn how just a few days’ improvement on the speed of collections on accounts receivable manifests as cash in the bank.

Inventory was another area of concern. Levels had grown too

large and out of alignment with annual sales. So together we created an action plan to determine appropriate inventory levels based on sales assumptions and to reign in future purchasing of raw materials.

We also made plans to liquidate her excess inventory.

By working proactively with her slow-paying customers Allison reduced the average time it took a client to pay an invoice. She also cut her inventory levels back in line with what sales would support. The result: almost $100,000 of cash in her bank account that had been stuck in her balance sheet. Her company stabilized and she had a much better cash position.

Finally, we created a dashboard of KPIs – key performance indicators – that she now monitors regularly. We plan to work together monthly on fine-tuning this monitoring dashboard and identify signs of potential weaknesses before they become critical problem areas.

Allison and her growing company represent the type of smart, growth-oriented entrepreneur we love working with at the SBDC. The most exciting part is watching Allison and other clients grow more confident, and listening to her dream creatively about her next product line instead of worrying and wondering, “When will I ever get paid?”

Even companies with great products that sell well need help from time to time. We were able to help Allison. We can help you, too. Give us a call.

WHATCOMBUSINESSALLIANCE.COM | 91

BOOK EXCERPT: BOB PRITCHETT FROM START NEXT NOW

Start Next Now: How to Get the Life You’ve Always Wanted Always Turn to Goal

I

t may not be possible to move directly to your goal, but you can make sure that every turn you make is in the direction of your goal. Imagine yourself moving down a sports field with the ball; there may be a defender on the straight line between you and the goal, and you may have to zig left or zag right. What you don’t want to do is run in the opposite direction or give up territory.

Keep moving, and keep turning toward the goal.

When people interview with me, I ask, “What do you want to be doing five years from now?” All too often I hear that their career ambition is something completely different than what they are interviewing for. Taking the job with my company doesn’t move them toward their goal. It’s a detour.

You may not be able to jump right into your dream job. If so, look for a job in the same industry, or where you’ll develop skills that will help you in your dream job. There is so much to learn in every field that you shouldn’t be wasting time acquiring completely irrelevant skills. Use your time intentionally. You may need to take an entry-level job to pay the bills, and that’s okay. But take an entry-level job that represents a turn toward your goal.

You can apply this logic to all the ways you use your time: Choose classes that will teach you things you 92 | BUSINESSPULSE.COM

need to know to achieve your goal. Volunteer where you will develop skills you’ll need in the future.

Always turning toward your goal not only keeps your goal in mind, but it also helps you acquire the knowledge, the connections, and even the vocabulary that will help you achieve your goal.

KEEP MOVING Many people set their goal so far in the distance that they don’t feel like they have to do anything today. They are waiting.

Waiting for permission.

Waiting for a promotion.

Waiting for a recruiter to call.

Waiting for the timing to be right.

Waiting for someone to tell them what to do next.

Waiting for someone to notice they are waiting.

Waiting for someone else to do something.

Waiting for a change that is never going to happen on its own.

Stop waiting.

The space between here and your goal is not filled with time. The space between here and your goal is filled with changes.

Very little happens on its own. If you are here and you want to be there, something needs to change.

Being picked up by aliens or a benevolent boss or the Nobel Prize Committee and magically transported from your present state to your future goal is a low-probability event. The only likely path from here to your goal is a large number of changes.

There are very few mandatory minimum time delays between changes. There are, in fact, few mandatory change steps. Everyone’s path involves a different

Bob Pritchett, President and CEO of Faithlife in Bellingham started the company at age 19. Formerly Logos Bible Software, it has grown to more than 400 employees serving more than 3 million users worldwide. He’s a past winner of the Ernst & Young Entrepreneur of the Year award, and the Puget Sound Business Journal’s 40 Under 40. He blogs at BobPritchett.com, and publishes interviews on BellinghamWins.com.

sequence of changes.

To arrive at your goal sooner, increase your rate of change.

A side effect of increasing your rate of change is that the price of each change goes down. A quick turn in the wrong direction is just as quickly corrected.

When you are able to make changes quickly, you’ll be less afraid of making the wrong change.

OTHER TIPS • Despise comfort. If you’re going to get ahead in the world, you’re going to have to get comfort-

able with being uncomfortable.

• Confront fear. Fear is the fence that bounds our success. We tend to live our lives in similar safety zones. The risk of moving your fence— of expanding your safety zone—might be too high. I’m not going to tell you never to be afraid, because fear can be beneficial (by minimizing risk).

• Never risk what you can’t afford to lose.

You can find your copy of this book at www.StartNextNow.com

Book Your Holiday The Party At SilverBusiness Reef Hotel Casino Spa Whatcom Alliance

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Finally, a solution that reduces the costs of your Employer Healthcare Insurance…

If you are a Whatcom County employer, with 100 or more employees on coverage, struggling like others annually with the continuing increase, year over year in your employer healthcare costs, we have a solution for you.

The WBA employer healthcare options provide creative, market-based RECEIVE $99costs. It focuses you on the health of solutions to your rising healthcare your employees, incentivizes them to make good choices and saves you HOTEL ROOM RATES money.

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Call (360) 746-0411 WHATCOMBUSINESSALLIANCE.COM | 93

SCENE ON THE STREET

SCENE

ON THE

STREET

Photo and Essay by Mike McKenzie

Costco opening November 16 with 830 park spots

S

hoppers at the new Costco off West Bakerview Road can soon roam 162,000 sq. ft. of warehouse filled with goods and services on the 20-acre property, according to several employees who said they’d been informed of a Nov. 16 planned opening.

Costco store space increases about 22 percent from 133,000 sq. ft. The grading for an 830-space parking area, 24 fuel pumps, and the new building have progressed rapidly into the autumn since the City of Bellingham granted Costco its permit June 21 (16 ½ months after it was filed). Ramp beams also have appeared related to traffic on Costco’s Arctic Avenue, a 5-lane, north-south access road. About a year after the store opens, the City will build Arctic Avenue with city, state, and federal funds ($8.75 million) connecting Northwest Avenue with Pacific Highway. The old Costco remains for sale, if you have $7 million or so that you don’t know what to do with.

94 | BUSINESSPULSE.COM

Strong,Local Local Relationships.

Strong, Relationships

Ed Roddy of WECU® with Mike and Mark Hollander of Hollander Properties.

“We have had an outstanding banking relationship with Ed and WECU® for over 15 years – for Real Estate investments in Whatcom County and Washington State.”

- Mark Hollander Hollander Properties

Talk to our Business Services team today!

Ed Roddy 360.714.7922 ed.roddy@wecu.com Business Services 360.676.1168 ext 7320 www.wecu.com



M A G A Z I N E

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The Publication of The Whatcom Business Alliance

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ADVERTISER INDEX Alaska Airlines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Anderson Paper & Packaging . . . . . . . . . . . . . . . . . 32 Archer Halliday . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Barkley Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Bellingham Bells Baseball Club . . . . . . . . . . . . . . . . 61 Bellingham Cold Storage . . . . . . . . . . . . . . . . . . . . . .83 Birch Equipment Rental & Sales . . . . . . . . . . . . . . . 19 Capstone Health Services Inc. . . . . . . . . . . . . 15 & 25 Care Medical Group/Express Care . . . . . . . . . . . . . 54 Chmelik Sitkin & Davis . . . . . . . . . . . . . . . . . . . . . . . . 59 Chocolate Necessities . . . . . . . . . . . . . . . . . . . . . . . . . 85 Data Link West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 DeWaard & Bode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Faber Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Finestrino Film, Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Four Points By Sheraton Bellingham . . . . . . . . . . 69 Haggen Market Street Catering . . . . . . . . . . . . . . . . 7 Hardware Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Heritage Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Holiday Inn Bellingham Airport . . . . . . . . . . . . . . . 31 Industrial Credit Union . . . . . . . . . . . . . . . . . . . . . . . . 17 Inn at Lynden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 La Jolla Booking Agency . . . . . . . . . . . . . . . . . . . . . . 51 Larson Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Laserpoint Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Ludtke Trucking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Lyndale Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Lynden Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . 46 Mills Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Moncrieff Construction . . . . . . . . . . . . . . . . . . . . . . . . 9 Northwest Propane . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 PeaceHealth St. Joseph Med Center . . Back Cover Peoples Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Perry Pallet Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Ponder + PEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Print & Copy Factory . . . . . . . . . . . . . . . . . . . . . . . . . . 87

ReBound Physical Therapy . . . . . . . . . . . . . . . . . . . . 25 Roger Jobs Motors . . . . . . . . . . . . . . . . . . . . . . . 39 & 44 Saturna Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Savi Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 ServiceMaster of Whatcom . . . . . . . . . . . . . . . . . . . . 35 Signs Plus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Silver Reef Casino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Skagit Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Skagit Valley Casino Resort . . . . . . . . . . . . . . . . . . . . 21 Technology Alliance Group . . . . . . . . . . . . . . . . . . . 11 VSH (Varner Sytsma & Herndon) . . . . . . . . . . . . . . 36 Washington Federal . . . . . . . . . . . . . . . . . . . . . . . . . . 63 WECU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Whatcom Women In Business . . . . . . . . . . . 33 & 47 Whirlwind Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Yorkston Oil Company Inc. . . . . . . . . . . . . . . . . . . . . 82

WHATCOMBUSINESSALLIANCE.COM | 97

Come to Work Stay to Play

The Barkley Experience

Barkley Village blends contemporary office space with exciting entertainment and dining options to create a dynamic Bellingham experience. Personal and professional amenities include; Class-A office buildings, a full-service grocery store, an eclectic range of dining options, retail shopping, entertainment, and residential living. Barkley Village is a unique destination that artfully accommodates every need.

Shop. Dine. Work. Play. Live. barkleyvillage.com For leasing information call (360) 671-6450 ext.103

Banking On

Expertise You put experience and care into your business - shouldn’t you expect the same from your banker?

At Skagit Bank, we create custom solutions to help your organization succeed. You can bank on our Whatcom team’s expertise, while focusing on yours. Call us today.

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Right Care. Right Here.

CARE THAT KEEPS YOU WORKING When it comes to caring for you and your employees, PeaceHealth Medical Group has the expertise to help you and your team feel your best.

Our annual physicals, immunizations and screenings are designed to keep you healthy and on the job. When illness strikes, our primary care providers and specialists are here with the diagnosis and treatment you and your employees need, right when you need it.

Find the care you need at peacehealth.org/phmg/bellingham