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editor’s message sibusinesssource

More than just a business model Like most of you, the columnists, reporters and designers of Southern Indiana Business Source have deadlines that must be met. When the going gets tough, we’re not going to keep our jobs very long if we cry and hide in a corner for not getting our way. With what we just witnessed in Washington, D.C., it will be interesting to see how many politicians keep their jobs beginning with next year’s federal elections. We often hear the comment that government should be run like a business. Maybe government should actually be operated more like a family than a business. Each member of a family doesn’t always get their way, unless you were the little brother like me, but successful families stay together and prosper because they learn to overlook differences and work toward a common good. When you combine families and businesses, you get a powerful mix. This edition of SIBS is dedicated to family-owned businesses, and from what we’ve seen out of government lately, there are a lot of lessons to be learned from the tried and true methods many local Southern Indiana establishments have relied upon for decades. Selflessness, sacrifice and loyalty — those are adjectives that describe the spirit of the families that have preserved through recessions and the ever changing fiscal climate of Southern Indiana to operate successful businesses.

Wouldn’t it be great if we could describe our elected officials with the same enthusiasm and confidence? Southern Indiana — from the Huber’s Orchard and Winery to Schmitt Furniture — has an abundance of quality, vibrant family-owned businesses. It is a credit to the community to have such a collection, and the economy is boosted by their presence. But working with family members isn’t all fun and games. Owning a business can be trying, and there are times when day-to-day struggles can cause strife between family members. The businesses that make it should be praised not only for their economic success, but also for being able to keep their families together during the process. Because at the end of the day, everyone involved with a particular business should be working to a common goal, even if they have different ways of going about it. What goal our federal government has been working to achieve is beyond my ability to discern. Perhaps a little brotherly and sisterly love could help quell some of the differences in Washington, D.C. Perhaps getting back to the basics and paying attention to what family-owned businesses are doing would also go a long way for politicians.

Southern Indiana Business Source is published by the News and Tribune PUBLISHER Bill Hanson

EDITOR Daniel Suddeath


CONTRIBUTORS Paul Sanders, Blayr Barnard, Vern Eswine, Christopher Fryer, Bradley E. Cunningham, Braden Lammers DESIGN Brandi Jones Stephen Allen CONTACT US Letters to the Editor: Must include name, address and daytime phone number. They can be emailed to us or mailed to the address below. Letters may be edited for space or clarity and may appear in digital version of Southern Indiana Business Source.

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Southern Indiana Business Source | November 2013

SOUTHERN INDIANA BUSINESS SOURCE 221 Spring Street Jeffersonville, I N 47130

in this issue

on the

COVER Steve LaDuke, right, stands with Frank Monroe inside Frank Monroe Heating & Cooling in New Albany. Monroe, LaDuke’s grandfather, started the business from his home in 1953, and LaDuke has been president for the last 18 years.




marketing Vern ESWINE The Marketing Company President



Forced Relocation Gray & Wells move down the road equals business boom


Investing in Family Local Couple operate Charles Schwab’s Clarksville branch


Community Development Recent news and updates Personnel & Promotions Who’s going where, and when Book Review by Paul Sanders Labor Laws Ind. right-to-work law unconstitutional Small Business Keep family during succession planning Legal Affairs Advisory boards and family business

Southern Indiana Business Source | November 2013

6 10 12 14 15 19 5

community development

Dollars for Development The Southern Indiana Realtors Association presented One Southern Indiana with $10,000 for Southern Indiana economic development. At the monthly board of directors meeting held in October, SIRA Board Chair Tonja Aaron-Wells, Incoming Chair Diane Thomas and the SIRA board met and greeted 1si Chair Dale Gettelfinger and President/ CEO Wendy Dant-Chesser to make the presentation. “SIRA has invested $70,000 in 1si’s economic development initiatives since 2007 supporting continued economic growth and higher levels of excellence and quality of life within our community,” said AaronWells in a news release. “Southern Indiana Realtors are vested in community growth initiatives. It’s about making our neighborhoods the absolute best places to live, work, and raise a family.” SIRA, headquartered in Clarksville, is a professional trade association representing more than 700 Realtors and affiliates in Clark, Crawford, Floyd, Harrison, Orange, Scott and Washington counties in Indiana.

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Southern Indiana Business Source | November 2013

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Opening in Grand Style Tangled Salon and Spa opened recently at 3001 Charlestown Crossing, suite 4, in New Albany. Owner/ stylist Taylor Phelps oversees a staff of seven: stylists Kate Holliday, Casey Hodskins, Alysha Spalding, Teresa Nelson and Jessica Riffe and massage therapist Christine Euker. The business offers: haircuts, color, highlighting, Brazilian blowouts, facials, shellac manicure, massage, body waxing, special occasion styles, and makeup and eyelash applications. Tangled Salon is still looking to add stylists to the team. Contact Tangled at 812-944-0044 or at Pictured, left to right are Nelson, Holliday, Phelps, Euker, Hodskins and Spalding.


Southern Indiana Business Source | November 2013

Healthy and Hefty Check The YMCA of Southern Indiana thanked Vectren, which donated $2,500 to help youth attend the Y’s summer day camps. Here are some of Vectren’s employees, YMCA staff and YMCA campers showing their excitement for receiving this gift. From left to right are Pam Dean, Joe LaRocca, Greg Alexander, Sherry Griffin, Derick Mattingly, Denny Griffin, Sam Reid, Terence Billups and Dennis Enix; (not pictured is Dorothy Miller).

Snap Fitness opens in Jeffersonville Snap Fitness, Jeffersonville, operated by the MLG Group, announced the opening of its new location at 2903 E. 10th Street. The 4,000-square-foot building was purchased Sept. 1, 2012, and occupied May 1. Snap Fitness has one fulltime employee and one part-time employee. Owner Mike Coyle said in a news release they are working to hire some independent Zumba and exercise instructors and personal trainers. “The Jeffersonville Snap Fitness is the nicest fitness center in the area and we focus on cleanliness and friendliness,” Coyle said in the release. “We chose Jeffersonville because we found what we hope will be a good business opportunity for the owners. So far, Jeffersonville has exceeded our expectations. The people we have met have been very friendly and helpful.” They also expressed gratitude toward the city’s involvement in their process to open. MLG Group is owned by Mike Coyle and his two children, Leisje and Gregg. Gregg manages the facility, which hosted a ribbon-cutting Aug. 23 with Jeffersonville, Clark County and One Southern Indiana officials. Snap Fitness is open 24 hours a day, seven days a week for the convenience of its members. The company has nearly 1,400 clubs worldwide and is based in Minnesota. It was founded in 2003. For more information, call 812-283-7627 or visit

Clark Rehabilitation and Skilled Nursing Center gets top award Clark Rehabilitation and Skilled Nursing Center, one of several Senior Health and Memory Care facilities operated by American Senior Communities, has been named the 2013 Facility of the Year by the Indiana Healthcare Association. The Indiana Health Care Association is Indiana’s largest trade association and advocate representing proprietary, nonprofit and hospitalbased nursing home and assisted living communities, adult foster care and adult day services. IHCA provides education, information and advocacy for health care providers, consumers and the work force on behalf of members. The facility was nominated by two staff members, Social Services Director Stephanie Hall and Dietary Manager Melinda Drury. Drury said the facility has changed tremendously in the 12 years she has been there.

“We have caring staff and department managers who work as a team. The residents and their family members are happier now than they have ever been,” she said in a news release. Clark Rehabilitation and Skilled Nursing Center Executive Director Holly Northam said the staff has worked hard to make numerous improvements at the community. “We are honored that our hard work is being recognized,” she said. Clark Rehabilitation and Skilled Nursing Center is one of 60 communities operated by American Senior Communities. It is located at 517 N. Little League Blvd., Clarksville. Services include moving forward rehabilitation, skilled nursing care, long-term care, hospice and respite. For more information, call 812282-8406, or visit the website at

Southern Indiana Business Source | November 2013


personnel & promotions Cecil named as an associate director of the Ogle Foundation



The Paul Ogle Foundation Board of Directors announced that Kevin Cecil, President & CEO of Your Community Bank, has been named as an associate director of the Ogle Foundation, effective Jan. 1. Cecil received his bachelor of science and master’s degrees from the University of Louisville in 1976 and 1980, respectively. He also graduated from the Stonier Graduate School of Banking in 1983. He has led Your Community Bank since 2001. Further information about the Paul Ogle Foundation or its grant guidelines, along with photos and logos, can be found on the Foundation’s website at

Southern Indiana Business Source | November 2013

Leslie Lewis & Associates adds designer Leslie Lewis & Associates in Jeffersonville welcomes Gabrielle Meece as an interior designer. She recently graduated from Indiana University in Bloomington with a bachelor’s degree in interior design. She will be assisting lead designer Tammy Randall with residential and commercial clients.


Law Firm names Wehrle as chair Stites & Harbison PLLC has named Richard Wehrle as the firm’s Trusts & Estate Planning Service Group chair. Wehrle succeeds J. David Porter, who has served in that capacity for 13 years. Wehrle is a member (partner) of the firm based in the Lexington, Ky., office. For more information, visit

Clark Memorial hires seven health professionals Clark Memorial Hospital recently added seven new health care professionals under its Clark Physician Group of practices. Clark Physician Group is an extension of Clark Memorial Hospital. There are 50 providers including physicians, physician assistants and nurse practitioners who care for patients in offices located throughout Clark, Floyd, Scott and Jefferson counties in Southern Indiana. “With more than 18 offices providing comprehensive care in specialty areas such as women’s services, minimally invasive surgery, orthopedic and spine care, vascular and thoracic care, along with the primary care services, Clark Physician Group can now provide our patients with even more options, less wait times and excellent care closer to home,” said Wade Mitzel, CEO of Clark Physician Group, in a news release. Hired are: Behavioral Health Services • Dr. Howard S. Fishkoff joins Clark Physician Group as medical director of Behavioral Health Services, managing inpatient psychiatric services. Fishkoff is Board Certified by the American College of Osteopathic Neurologists and Psychiatrists. He graduated from Kirksville College of Osteopathic Medicine in Kirksville, Mo. Just For Women Health Solutions • Dr. Tiffany M. Hannigan will be specializing in obstetric care, family planning and ongoing gynecological care at Just For Women Health Solutions. She’s earned a medical degree from University of Louisville School of Medicine and holds a bachelor’s degree in psychology from the University of Kentucky. • Jennifer Elmore joins Just for Women Health Solutions as a nurse practitioner. She

has a master’s degree in nursing from the University of Louisville where she specialized, and is certified, in women’s health. She also holds a bachelor’s degree in nursing from the University of Louisville. Surgical Associates Southern Indiana • Dr. Patri M. Marconi joins Surgical Associates Southern Indiana from Chicago. She completed her residency in general surgery at Rush University Medical Center and Stronger Cook County Hospital in Chicago. Marconi earned her medical degree from the University Of Illinois College Of Medicine. Havens Medical Group • Dr. Katrina Severance comes to the Havens Group from the family medicine practice of McLaren Medical Group, of Warren, Mich., where she specialized in family medicine. She earned her Doctor of Osteopathic Medicine from Des Moines University College of Osteopathic Medicine along with a bachelor’s degree from Winona State University. • Lori Green joins the Havens Group as a nurse practitioner. She previously practiced at Occupational Medicine Physicians. She earned her master’s degree in nursing, with an advanced certification as a family nurse practitioner, from Spalding University and a bachelor’s degree in Nursing from Indiana University Southeast. Thoracic and Vascular Surgery Center • Dr. Matthew E. Hennig, thoracic and vascular surgeon, will be joining the practice Oct. 1. He earned his medical degree from Texas Tech University and bachelor’s degree from Texas A&M University. Hennig completed his residency in surgery at Indiana University and his cardiothoracic residencies at Hershey Medical Center and Rush University.

Lumley appointed to the Indiana Real Estate Commission RE/MAX of Indiana announced that Pam Lumley, broker/owner of RE/MAX Results in New Albany, has been appointed by Gov. Mike Pence to the Indiana Real Estate Commission. Effective immediately, Lumley will serve a four year term on the commission. The commission works alongside the Indiana Professional

Licensing Agency to create and monitor real estate education, approve or deny licensure, and enforce rules regarding real estate practice. Lumley is a six-time RE/MAX 100% Club member for top earnings, and in 2012, she was named to the RE/MAX Hall of Fame for career success and service achievements.

Southern Indiana Business Source | September 2013


book review Paul SANDERS Paul Sanders is an award-winning writer who worked for the past 10 years in the training industry with best-selling authors including Stephen Covey, Ken Blanchard and Tom Peters. He is an adjunct professor who works with the Sullivan University Dale Carnegie Group.

“The Greatest Business Decisions of All Time: How Apple, Ford, IBM, Zappos, and others made Radical Choices that Changed the Course of Business” By Verne Harnish & the Editors of Fortune

A simple truism of life, management consultant Verne Harnish reminds us, is that success equals the sum total of all the decisions we make. While adding up all these decisions make for our success or failure, there are often singular choices that make monumental change. Such decisions made by great business leaders are the subject of Harnish’s insightful and revealing new book, “The Greatest Business Decisions of All Time: How Apple, Ford, IBM, Zappos, and others made Radical Choices that Changed the Course of Business.” Determining the most significant business decisions is not an easy task. Harnish sagely turned to his colleagues at Fortune magazine, where he is a contributor, for help. The result is a fascinating compilation of the best business decisions made by successful companies. Harnish and his team of contributors single out 18 significant management decisions that are distinctive and often counterintuitive. In their success, these decisions created a wave of imitation. Ultimately, the decisions selected here are those that have stood the test of time with undisputed value that could be applied to any business. Each chapter can be read independently, giving the reader the option to choose companies, decision makers, or subjects in selecting where to begin. It can prove to be a difficult and enticing choice; each author is an expert in the industry or subject they present and the writing is superb. Don’t skip over the Foreword by Jim Collins, who from the first paragraph sets a tone for the rest of the book. Decisions, Collins suggests, are usually thought of as very much about “what?” In his research and interviews, however, Collins has found that the greatest decisions were not “what?” but “who?” They were always people decisions, he argues.

“Great decisions begin,” Collins says, “with really great people and a simple statement: I don’t know.” The leaders who produced extraordinary results were those comfortable with saying “I don’t know” until they knew, he concludes. My favorites in the list of 18 management decisions include: APPLE: When the decision was made to rehire Steve Jobs as CEO of the company he founded after over 10 years, the result was the most valued company in the world. ZAPPOS: The founders of this online shoe retailer made the decision to offer free shipping, free returns, and focus on fantastic customer service, helping to propel the company ahead of its competition. SAMSUNG: Suffering from an inward-looking culture, this South Korean electronics company decided to institute a sabbatical program, investing in its talent by sending workers to other countries. Their networking proved an vital investment in the future. 3M: One of the world’s most innovative companies for nearly 100 years, 3M decided to give employees time to daydream, spending 15% of their time on their own projects. The result has been phenomenal innovation even during economic downturn. NORDSTRUM: The decision to let customers make returns even if they didn’t buy the item at one of its stores, made this company the world’s best retailer. The Seattle-based company changed service standards with its liberal return policy. JOHNSON & JOHNSON: At a cost of $100 million, this company pulled every bottle of Tylenol off the shelves when it was discovered that some bottles had been laced with cyanide. The CEO’s determination that the company’s first responsibility was to consumers became a textbook case. continued on page 30


Southern Indiana Business Source | November 2013

Southern Indiana

Southern Indiana Business Source | November 2013



TODD LOGSDON is a partner in the Louisville office of Fisher & Phillips LLP, a national firm representing employers in labor and employment matters. He practices exclusively in the areas of labor and employment on behalf of employers, with an emphasis on discrimination, wage and hour, FMLA and OSHA issues. Contact Todd at TIMOTHY WEATHERHOLT is an associate in the Louisville office, practicing exclusively in the areas of labor and employment on behalf of employers, with an emphasis on discrimination, FMLA, ADAAA and wage and hour issues. Contact Tim at



Unconstitutional I

n a stunning decision, a state court judge has ruled that Indiana’s hard-won right-to-work law is unconstitutional. The reasoning rests on the notion that “just compensation” for a union means forcing all employees to pay dues, whether they support the union’s aims or not. On February 1, 2012, Indiana became the 23rdstate to adopt a right-to-work law. Indiana’s law prohibits anyone (including employers and labor organizations) from requiring a covered individual, as a condition of initial or continued employment, to: 1) become or remain a member of a labor organization; 2) pay dues, fees, assessments, or other charges to a labor organization; or 3) pay a charity or third party a dues equivalent. Violating the law is a Class A misdemeanor. The ruling has now cast doubt on the law’s viability. In February 2013, the International Union of Operating Engineers, Local 150, filed suit, claiming the law violates Indiana’s constitution. Sweeney et al. v. Zoeller et al. On September 5, 2013, Lake County Superior Court Judge John M. Sedia threw out four of the Union’s five counts, but held the right-to-

work law unconstitutional. The Judge cited Article I, Section 21 of the Indiana Constitution which provides, “[n]o person’s particular services shall be demanded, without just compensation.” The court noted that to be considered “particular,” services must be 1) historically compensated, and 2) something required of a party as an individual, as opposed to something required generally of all citizens. The court found services provided by a union, including negotiations and enforcing collective bargaining agreements, fit within that definition. The court then considered the federal National Labor Relations Act, which requires unions to process grievances for nonmembers, negotiate contracts on behalf of members and non members alike, and provide other services to nonmembers regardless of whether they pay dues. The court found this problematic in light of Indiana’s law: This is where the problem lies: In the absence of the federal law, a union could, without incurring any criminal liability… refuse to provide services for those employees who chose not to join the union; in the absence of [the

right-to-work law], the union could ensure that it received compensation in the form of dues for the services the federal law required it to perform from those employees who chose not to join the union through a collective bargaining agreement with the employer that made the payment of dues to the union a condition of employment. Put simply, with the enactment of [the right-to-work law] it becomes a federal criminal offense for a union to receive just compensation for particular services federal law demands it provide to employees. The Union’s victory may be short-lived. A spokesman for the Indiana Attorney General’s office said the state will take an immediate appeal to the Indiana Supreme Court. Unless and until the Indiana Supreme Court upholds Judge Sedia’s decision, the right-to-work law will remain in effect. Legal experts believe the decision will be reversed. Supporters of the right-to-work law agree, noting that the Union’s decision to bring the suit in Lake County, home of Gary Indiana and known to be sympathetic to union causes, was no accident. continued on page 30


Southern Indiana Business Source | November 2013

small business Blayr BARNARD

Blayr Barnard is the Regional Director of the Southeast Indiana Small Business Development Center, which is located in Suite 200 of the Elsby Building in New Albany at 117 E. Spring St.

Keep Your

Family Business succession planning is always a tough process because owners have to face the lack of control they will once have over something they have worked so hard to create.

As we move into a time when Baby Boomers are preparing to retire or start a second phase of life, estimates show that between 4 and 7 million businesses will have the opportunity to sell in the next few years and reports that closed sales are up 56% this year. A survey from Pepperdine University shows that the number one reason for business sales in late 2012 and early 2013 were for owner retirement. For many family owned businesses, the discussion surrounding succession planning is difficult to say the least. It encompasses all of the toughest discussions for families: money, inheritance, death and personal choice. Here are some tips to get the ball rolling for your family owned business: YOU KNOW THAT OLD SAYING ABOUT ASSUMING, RIGHT? DON’T ASSUME ANYTHING. Your daughter may very well be interested in taking over your industrial equipment distribution


a family

during business succession planning

and sales business, but have no interest in the beauty salon. Your son may only be interested because he feels guilt associated with striking out on his own. Alternatively, if you are honest with yourself, none of your children may have the skills or experience to take over the family business. You need to sit down with your family members and have an open, honest conversation – preferably off-site and not in the middle of the chaos and pressure of the business being discussed. To prepare for this meeting, you need to come to the realization that your children may have no interest what-soever in the business or may want to take it in a completely different direction. If they start to open up and you immediately shut down their ideas or chastise them for not wanting to walk in your footsteps, you will lose them and the business will ultimately be hurt.

YOU THINK IT IS WORTH HOW MUCH? DON’T PICK A BUSINESS VALUE BASED ON YOUR RETIREMENT NEEDS. Just because you have put your heart and soul into this business for 30 years does not mean it is worth $5 million. In fact, it may not have any value. Having unrealistic expectations about the value of the business will drive away buyers – family, employees and outside buyers. Invest some time and money in getting realistic with your business valuation. A certified valuation or appraisal can be very costly – according to Inc. Magazine, between $3,000 and $10,000 or as much as $35,000. If you already have a buyer on board and are waiting for the bank approval, this will be a cost of doing business and you will have to negotiate who pays for what. If, however, you are in the planning phase, you should be able to get a Business Valuation for much less. You can work with


continued on page 18 Southern Indiana Business Source | November 2013



Gray and Wells body technician Mike Sumner working on a vehicle in the new shop. Staff photo by C.E. Branham

forced relocation

Gray & Wells move down the road equals a business boom



42 years Gray & Wells was located in downtown Jeffersonville, but it was forced to move when the city bought the body shop’s property to make way for a canal.

The canal plan was scrapped, but Gray & Wells no longer owned the property in historic downtown and was forced to relocate last July. While it didn’t seem like it at the time, the collision center’s move put it in

a better position in terms of location and growth. “A lot of good things came about from it, which I didn’t think it was going to, but it did,” said Owner John Wells. “We’re in debt, but we’re in a much better place and business had picked up.” The new Gray & Wells location is on 10th Street in Jeffersonville, just past Woodland Court.

The shop itself is also larger than Gray & Wells’ previous location. Wells said the work area is about 1,000 square feet larger than its space off of Michigan Avenue and the office area is much larger. The total increase in space was about 8,000 square feet, with a total of 28,000 square feet. But the 20,000 square feet where the body shop was formerly located in downtown was also split between two buildings. The move

The new facility is 28,000 square feet — 8,000 square feet larger than Gray & Wells’ space off of Michigan Avenue. Staff photo by C.E. Branham

under one roof has improved the efficiency of the body shop. “That’s probably what helped our profit increase, more than an boost in the number of cars coming in,” Wells said. He said when the business was operating in downtown Jeffersonville the location was boxed in and they didn’t see a lot of traffic passing by the collision center. It was also difficult to operate in two separate spaces, crossing the street to be able to finish repairing one vehicle. “It was like running two body shops,” Wells said. He said the body shop had to buy double the amount of equipment to operate out of the space off Michigan Avenue and the back-andforth between the two shops cost the business time. NEW IS BETTER

Since the move to the new location, Wells said the collision center has hired three new people. “Business has picked up,” he said. The move to the new site last July happened quickly. Wells said on a Friday morning, two paint booths were still operating at the Michigan Avenue site until about noon. Work shut down and Gray & Wells started moving the rest of their equipment and its employees to the new location. By Monday morning, Wells said the shop was opened and operating on 10th Street. While the move happened quickly, the development and planning for the site was not as swift. Wells said it took him and business partner

John Wells, who ownd Gray and Wells with partner Steve Gray, talked about the advantages on the new location. Staff photo by C.E. Branham

Steve Gray about a year to decide to move, and a year to figure out how to renovate the space in order to accommodate the business. The two transformed the former auto dealership —which originally housed Wilcox Chevrolet and more recently a Suzuki dealership— into a more efficient collision center with more amenities for its customers. Wells said one of the major changes was in the front of the building where the former auto dealer showroom was split in half to create a drive-thru estimating area. Tiles that still line the lobby floor were broken out of the area closest to 10th Street, new windows were installed about halfway through the former show room space and pavement was poured and a drain was installed on the other side of the glass. “People love it, especially in the winter,” Wells said of the drive-thru estimating area that was created. In the remainder of the former showroom space, Gray & Wells created a lobby and retained offices for the company’s estimators. The garage area was also transformed, with a host of renovations made to bump out spaces to accommodate lifts, the removal of a former parts department which allows for Gray & Wells to repair large vehicles like fire trucks, in addition to a heavy duty cleaning of the auto garage. When the project was completed, Wells said the company had spent about $700,000 for the renovations. Along with the money the city paid for Gray & Wells’ former site, the cost to purchase the new building and a grant awarded by the Jeffersonville Redevelopment Commission of

$20,000, Wells said the company ended up with about $700,000 in debt. “We were not in debt before,” he said. “They told us we had to move, so we had no choice,” he said of the city. BIGGER IS BETTER?

Despite few options available for the body shop owners, the move has provided them with an opportunity for growth. With the plans for two new bridges to be constructed as part of the Ohio River Bridges Project, 10th Street in Jeffersonville is expected to become a heavily traveled corridor. Gray & Wells sits between the two bridges on 10th Street and the owners have already investigated the possibility of expanding again. “We keep running out of room and we’re busy right now,” Wells said. To the rear of the Gray & Wells building there is a large undeveloped portion of property on the five-and-a-half acre site. While an expansion has been priced out, Wells said the plans are on-hold for now. It will likely be another year or two before Gray & Wells would be willing to move forward on any plans to expand. He said expansion will be dependent upon the impact that the bridges have on the business and whether or not the shop maintains its current pace. At the new location, Wells said the company can turn around 25 to 35 cars per week, depending on the size of the job. And along with his business, Wells, who is 71, said he has no plans of slowing down or retiring. “That’s all I’ve ever done all my life,” he said.

Southern Indiana Business Source | November 2013


KEEP YOUR FAMILY A FAMILY continued from page 15 one of our qualified Business Advisors to give you an understanding of true financial health, known external factors that are affecting your business value and discerning business goodwill. You should also talk to you accountant about your options and tax burdens at this point. Now is the time to start trying to maximize that sale price and minimize any taxes or fees. Knowing the value of your business helps you to determine the steps forward. You may decide to gift shares to your children for tax purposes or restructure entirely. If, however, you are basing your entire retirement on the sale of your business for millions of dollars… think again and get realistic about your options. DOES YOUR 3 MONTH TIMELINE END WITH YOU IN FLORIDA? THINK AGAIN. Spending some time planning for succession scenarios can make a big difference in, not only the longevity and success of your


business, but in the relationship with your children or family members. You need to take into consideration several variables when exiting your family business. Some of those include: legal structure, creative buy-out options with family, employee stock ownership programs, successor skill deficiencies, financial options and tax burden. You need to have thought through various scenarios to make this transition as seamless and smooth as possible. THINKING ABOUT KEEPING IT ALL IN THE FAMILY TO “KEEP IT SIMPLE”? YOU NEED HELP AND IT IS AVAILABLE. There is a plethora of option for you to make these decisions. You shouldn’t feel all alone in these decisions and you definitely should not try to go it alone just to save a buck – this is your business and your family’s future! Consider talking to your ISBDC Business Advisor, your Banker, your Accountant, your Attorney, your Financial Planner or Wealth


Management Officer and your Insurance Agent. Many of these succession options have a tax and legal implication that need to be formalized. Making these appointments now will save you later. In fact, there are for-profit consulting firms that will take you through the entire process. A bit of pre-planning can save you thousands of dollars in taxes, your family thousands of dollars in interest and your close family ties. I cannot tell you the number of times I have seen a business deal break up a family – including several lawsuits and estranged relationships. Even if your business has been your “baby” for 30 years, you don’t want to lose your real babies, your children and their grandchildren, over a business transaction gone badly. Take some time and make strategic decisions so you can watch as your business grows while your family grows and you retire.

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Southern Indiana Business Source | November 2013

Wind Chimes • Afghans

legal affairs Bradley E. Cunningham Bradley E. Cunningham is a member of the family business and business commercial tax practice groups at Middleton Reutlinger. He focuses his practice primarily in the areas of providing sound and practical legal advice to companies in their daily operations and commercial transactions. You can reach Brad at 502.625.2743 or

Family businesses face a number of unique challenges, which in many instances include the absence of a well-structured succession plan, infighting and poor communication among family members, and a dearth of outside perspective. Although there is no easy solution for these and other problems encountered by family businesses, in many cases an advisory board can prove invaluable in helping to overcome highly complex and emotionallycharged family dynamics in order to achieve sustainable business success.

What exactly is an advisory board? Unlike a formal corporate board of directors, which by statute owes fiduciary duties to the corporation and whose decisions are ultimately binding, advisory board members provide advice that can either be followed or ignored by the business’s owner(s) and do not typically have fiduciary obligations to the business. In short, an advisory board is a group of trusted advisors that provides a family business with the opportunity to reach beyond the confines of its inner circle to tap the knowledge and expertise of qualified outsiders. In some instances, an advisory board may be the only “board” associated with the business organization. In other instances, the advisory board acts as a supplement to a traditional board of directors, especially if the traditional board is comprised of family members or other “inner circle” investors. An advisory board can meet as often or as infrequently as desired, but quarterly meetings of approximately four hours are common. If any advisory board’s advice can be ignored, then why have one? The non-binding aspect of an advisory board’s recommendations is in many cases precisely what makes it an attractive structure. For many family businesses one of the possible impediments to future success, ironically, is also the reason for its present success: an owner who has played a significant role in building the business and is reluctant to give up control. In other cases, the corollary of this situation exists: a young family member has acquired control of the business and lacks the necessary experience and expertise to manage it effectively, yet desires to assert

Is an Advisory Board Right for Your Family Business? control. In either scenario, an advisory board provides an opportunity for difficult issues to be addressed candidly and objectively by trusted and qualified advisors without presenting a direct threat to the decision making or authority of the current owner. Without the objectivity and expertise of the advisory board, owners may be reluctant to seek needed guidance regarding difficult or sensitive issues, and other family members may not be comfortable confronting them. The advisory board thus facilitates an objective decision-making process that might not otherwise occur due to often complex family dynamics. Other benefits of an advisory board include: • Providing fresh ideas for expanding or diversifying the core business • Requiring owners to think more strategically about the business through preparation for and participation in regularly scheduled board meetings • Assisting with the selection and development of the business’s next generation of leaders • Providing operational insight and objective assessments of sensitive issues such as salaries of family member employees • Leveraging experience and expertise not otherwise available within the current group of owners

Southern Indiana Business Source | November 2013


cover story


Customers Frank Monroe Heating & Cooling celebrates 60 years of family business STORY BY DANIEL SUDDEATH PHOTOS BY CHRISTOPHER FRYER The materials Frank Monroe called upon for his air conditioner consisted of ice, a bath tub, and a fan almost big enough to create its own jet stream. While the mechanism certainly generated cool air, the fan was so large and powerful that it nearly sucked clothes out of the windows inside Monroe’s house. Chasing flying garments around their home wasn’t the most enjoyable experience for Monroe’s wife, but to create a successful family business, everyone has to make sacrifices. Frank Monroe Heating & Cooling is a staple of New Albany, and the business remains true to its 60-year-old roots as a family-owned establishment with a focus on Southern Indiana. Monroe launched his business inside his Beeler Street home in 1953, and from the start, he relied on the support of his family. His mother-in-law co-signed for a $500 loan to jump-start Monroe’s operation, as he needed the money to purchase sheet metal to construct covers for furnaces. Monroe — with his signature suspenders and quick wit — is still an integral part of the business, but his grandson, Steve LaDuke, has served as president of the company for more than 18 years. continued on page 22 20

Southern Indiana Business Source | July 2013

Southern Indiana Business Source | November 2013


cover story

“I started it and Steve’s finishing it,” — FRANK MONROE

“I started it and Steve’s finishing it,” Monroe said. LaDuke’s introduction into the business came when Monroe stuck him in a crawl space to check out a unit when he was 14 years old. It was important to Monroe to pass along the trade, company and the benefits of the business to his family, and LaDuke said the kindred atmosphere is shared by the employees and with customers. “When you can keep it in the family, I think there’s more continuity,” LaDuke said. Frank Monroe Heating & Cooling definitely has grown since its Beeler Street debut. The establishment first relocated to Vincennes Street before finding its current home at 595 Industrial Blvd. in 1974. It certainly was a different landscape back then, as the business was the first to locate inside the industrial park. “We took the risk,” Monroe said. And the chance paid off, as the business grew its customer base. Monroe would like to credit the company’s success to more than just happenstance. “I found out the more you worked the more luck you had,” Monroe said. Blazing a new path was hardly a new concept to Monroe. He sold gas furnaces back when water heaters were the common choice, as Monroe said he realized an opportunity to capitalize on the new concept. Monroe said he never considered moving his business out of New Albany. “I liked the people around here. Everybody was honest,” he said. Ninety percent of deals were finalized with a handshake back in the business’s early day, and LaDuke said not much has changed. “We’re certainly blessed with good customers and good jobs,” he said. The heating and cooling industry, like many businesses, is changing rapidly with technology.


“In our industry, there’s probably been more change in the past 10 years than in the past 50,” LaDuke said. The company splits its time pretty much evenly between repair and replacement jobs. Monroe Heating & Cooling has also worked on some notable projects in the area including handling the HVAC for the restoration of The Villages at Historic Silvercrest, and heating and cooling work on some of the homes that were refurbished through the Neighborhood Stabilization Project in New Albany. Almost all of the company’s customers are in Southern Indiana. LaDuke said they don’t seek Louisville business, and added that residents in Southern Indiana don’t have to call on companies across the Ohio River for quality service. “The big city technology, whatever that may be, is right here,” LaDuke said. The company has 12 employees, and many

of them have been with the business for decades. Ed Crosier, supervisor and vice president of Monroe Heating & Cooling, has 41 years of tenure with the company. “You always hope you’ll stay somewhere that long,” Crosier said. “I just really like the people I work with a lot, and the challenges that come with the job.” Carla Johnson, the secretary-treasurer and service manager for the company, echoed similar comments about Monroe Heating & Cooling. She’s been an employee at the business for 27 years, and her son has worked there the past four years. “It’s like a family here,” she said. “Frank’s always insisted on it.” On the web •

Frank Monroe Heating & Cooling sits on its location along Industrial Boulevard in New Albany. Staff photo by Christopher Fryer

Southern Indiana Business Source | November 2013

marketing Vern ESWINE Vern Eswine has been involved in leadership, marketing and business consulting for more than 30 years and is president of The Marketing Company, a branding firm located on Spring Street in New Albany.

What legacy are you leaving? Over the thirty plus years I have been working with locally owned and operated businesses, many if not most have been family held and operated. While the dynamics of a family held business are interesting enough the transfer of these businesses over the next several years from one generation to the next will not only be interesting but important if they are to continue to be successful. So if you are one of those businesses where transition is will be crucial, not just for your ability to retire but your desire, dreams and hopes to leave a legacy for your family here are a few tips to consider.


KNOW THE PLAYERS - in family run businesses this can be very difficult and in some cases can even divide families so making sure you have a plan to identify the strengths and weaknesses of each family and what they bring to the company is crucial. If you have a board of directors they can help in this but if many of them are also family members, you may want to get outside help that can be objective in the research they do and the suggestions they make. IDENTIFY YOUR LEADERS Once the players have been identified it will be important to identify who your leaders are and what each bring



to the table. Understand what each bring to the other and how each can can help in conducting the business your are leaving behind. Consider weaknesses that could also affect your organizational structure and areas of improvement that can be addressed during the transition period. IDENTIFY YOUR CEO - once all the work in establishing your lead ship team, someone has to be chosen to make final decisions; someone to take your place. This person does not have to be another you; in fact, in today's world they probably shouldn't be except in a few key areas. Remember, it is a family business and most families have certain key areas that cannot be compromised. These areas could be issues of integrity and ethics, but whatever they are your leaders and especially your CEO should not be willing to compromise them.


DEVELOP A PLAN AND TIMETABLE- many times, this is the area that becomes problematic primarily because the current ownership has not provided enough time to go through the first three steps. Regardless, providing your team the training they need and preparing them to do the best job going forward is crucial for a successful transition. Your timetable will be driven by the date that the


Southern Indiana Business Source | November 2013

current ownership has set to step away. PREPARE YOURSELF - As an owner or as a second or third generation leader of a family held business you also need to make preparations to step away from the day to day decision making of the business. Set your own time table to focus on things or hobbies that allow you to relax or keep yourself busy. Many CEO's have poured themselves into helping new start ups, bringing their experience and expertise to help new companies grow and build their own legacy. Whatever you choose make sure it is something that keeps you happy and fulfilled.


STEP AWAY - Now for the hardest part- really stepping away. Know that the new leadership will not lead like you lead. They probably won't make the same decisions in the same way or handle situations the same way you would but know that is not what's important. What is important is the successful growth if the company in the manner that makes you pleased and proud in knowing that the decisions and planning that you lead has left a legacy from you to future family members. Got a marketing problem you would like to see addressed? Give me a call or email.




entitled employees, bully bosses, and bad behavior NEW ALBANY — A sense of entitlement at work could lead to more than just a bad attitude at the office. Recent research from Indiana University Southeast indicates that entitlement leads to employees believing they have a bully boss which in turn results in some form of pay back. IU Southeast Associate Professor of Management Kenneth Harris discovered a strong correlation between employees who believe they are entitled and abusive supervision. The study, co-authored with business professor Paul Harvey of the University of New Hampshire, and two business professors from other universities, found that entitled employees are more likely to rank their supervisors as abusive, and are also more likely to respond in a retaliatory manner.

To put it simply, the more entitled an employee, the more likely he/she is to believe the boss is a bully and react with bad behavior. Whether or not abusive supervision is actually occurring or is simply perceived, the sense of entitlement among employees is equally harmful. According to the study, psychological entitlement in the workplace can pose a threat to managerial and organizational performance. Harris and Harvey completed two different studies to come to their conclusion. The first study surveyed 396 full-time employees in various career fields across the country. The second study surveyed 257 full-time employees and one co-worker for each employee. The second study in particular addressed the perception of abusive supervision between multiple workers with the same boss.

“We found that entitled employees reported higher levels of abusive supervision than did their peers who shared the same supervisor,” Harris said. The research also shows that it’s not only feelings of entitlement that crop up in the work place, but also retaliation. “Entitled employees are more likely to react in undesirable ways in response to abusive supervision, and we found this in two different studies, and with retaliatory outcomes rated by either the entitled employees or their coworkers,” Harris said. The paper, “Abusive supervision and the entitled employee”, was recently published in The Leadership Quarterly. Other co-authors are William E. Gillis and Mark J. Martinko. — Submitted by IU Southeast


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Southern Indiana Business Source | November 2013

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Southern Indiana Business Source | November 2013



Mike and Lisa Johnson have been married for 22 years, and they operate the independent Clarksville branch of Charles Schwab and Co. Staff photo by Daniel Suddeath.

Investing in family Charles Schwab’s Clarksville branch operated by local couple



Southern Indiana Business Source | November 2013

1990 Mike Johnson started his career in 1990 with Charles Schwab where he would stay until 1997. Mike and his wife, Lisa Johnson, moved to Nashville but would later decide that Southern Indiana was home, and they sought an opportunity to return.


arriage binds two people together, and for Mike and Lisa Johnson, their relationship connects their personal and professional lives. The pair combine to operate the Clarksville independent branch of Charles Schwab & Co., and they are committed to keeping both their marriage and the business strong. Married for 22 years, the Johnsons are local natives with a passion for Southern Indiana. Charles Schwab is a full-service brokerage firm, and the Clarksville branch is located at 1305 Veterans Parkway across the street from the Lowe’s shopping center. Led by Mike Johnson, a CFA with more than 20 years of experience in the financial services industry,

the branch opened in May, and is the first Charles Schwab location in Clark or Floyd Counties. Mike Johnson started his career in 1990 with Charles Schwab where he would stay until 1997. The couple moved to Nashville but would later decide that Southern Indiana was home, and they sought an opportunity to return. Mike Johnson took work with other financial companies in Louisville, but his interest was piqued when he heard Charles Schwab had started an independent branch program. The Clarksville location was one of the initial branches to open through an initiative launched in 2011 by Charles Schwab, as the company pushed a localized franchising effort that increased

its presence across the country. Charles Schwab hires independent branch leaders such as Mike Johnson to oversee the franchises, and each location offers the same features to allow clients a continuity of service. Mike Johnson said he was intrigued by the ability to operate a firm in a predominately independent fashion yet still be associated with a company that has the reputation of Charles Schwab. “Most of the time you begin as an employer of a firm and you can become a partner later on,” he said. “I had an interest in it because I always loved Charles Schwab when I worked for them.” And with the opportunity to pick his own staff, he turned to a familiar face he knew he could trust. Lisa Johnson brings her marketing experience at stops such as Chic-fil-A to Charles Schwab’s independent Clarksville branch. “Why would I go out and try to find somebody when I know she’s going to do a great job?,” Mike Johnson said of his wife. For her, it was a chance to help her family while taking a more active role in the community. “I really felt like I needed to be here, and I wanted to support him,” Lisa Johnson said. The couple conceded starting and operating a business is no easy task, but that doesn’t mean it’s been all stress either. “We’ve had some laughs,” Lisa Johnson said. The couple have three children, and their roots go back five generations in Southern Indiana. “This community is very important to us,” Mike Johnson said. Charles Schwab focuses on its investors and clients instead of catering more to brokers, he continued. The company has a trusted name and combining that background with people who are familiar to the commu-

nity and are qualified to run local branches is a powerful dynamic, he added. Southern Indiana is the kind of place where business is bustling but families know each other and trust is paramount, Mike Johnson continued. “Even though this has really been a growing area, it still has a small town feel,” he said.

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Southern Indiana Business Source | November 2013


BOOK REVIEW: continued from page 12 The writers excel at detailing the difficulty behind many of the decisions. This makes the reading interesting and the stories often dramatic. For example, Johnson & Johnson CEO James Burke had been cautioned against a Tylenol recall by no less than the FBI, who feared a panic. Toyota, when it made the decision to pursue zero defects went against Japanese culture and adopted an American’s quality standards. This concise, short book is long on insight. It is a fascinating look at business decisions as well as the leaders who often struggled to make them. Put this book at the top of your business reading list.

FISHER & PHILLIPS: Unconstitutional continued from page 14

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This is not the first time the Union has challenged the right-towork law. A federal court had already dismissed a similar complaint filed by Local 150. The Union is fighting that dismissal in the U.S. Court of Appeals for the 7thCircuit. Stay tuned. The foregoing provides an overview of a recent Indiana case. It is not intended, and cannot be construed, as legal advice for any purpose. 

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Business Source November 2013