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Contents
January 2013
24
Contemplating Growth: Is the Arizona Legislature Ready to Act for Business? As the 51st legislature convenes, sights are set on being ready for the anticipated Tucson-to-Flagstaff megatropolis. Don Rodriguez speaks with legislators and business development leaders about what may be in store for 2013 on the legislative front in the areas of economic development, job creation, education, taxation and business regulations. Plus: What Does the Legislature Do for Business? Departments
11 Guest Editor Features
20 Agriculture in 2013: How Will Arizona’s Second-largest Industry Fare?
Mother Nature is far from the only challenge this key industry faces, Sue Kern-Fleischer shares as she explores the scope of agriculture in Arizona.
20
30
Leadership
Finger-pointing and responsibility-dodging can poison a company’s culture. Mike Staver discusses some reasons it happens and how leaders can purge it from their company. Special Sections
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Kristen Lopez, Chief Opera ting Officer Jerry Bustam Public ante, Policy Sr. VP, + Southe rn Arizon a Debbie Hann, Financ e + Admin VP, istratio n Sandi Ahrens , Directo Busine r, ss Develo pment Rhette Baugh man, Directo Marke r, ting
a r y 2013
Works
Ron Janick Busine ss Develo i, pment Southe , rn Arizon a Marlee Roush ey, er Servic es Coordi Southe rn Arizon nator, a
47
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Sarah Travis, er Servic es Coordi
The Guide to Starting or Bettering Your Business Memb
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Raina Bibb, Recep tionist
08
8
J a n u a r y 2013
Centr 4600 E. Washin al Arizon a gton p | 602.30Phoenix, Street, Suite 340 6.4000 AZ 85034 f | 602.30 6.4001
The Gu
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12 Feedback
4811 ern E. Grant Arizon a Road, p | 520.32Tucson, Suite 7.0222 AZ 85712 262 f | 520.32 7.0440
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Busin
ess
Acco Business unting & Tax Serv Mark Commerc eting Serv ices • Alte rnat ices • ial Real Human Business ive Fund Resource Estate Organiza ing • Busi ness s / Hirin • Employe tions e Bene g & Asso Banking / fits Payroll • Informati SBA Lend on Tech / Insuranc ciations • Services Business ing • e • Heal nology • Telec ommunic • Law Firm thcare Insu Services • ranc s ation s / Mob • Office Furn e • ile iture •
32 Nonprofit
Fresh Start Women’s Foundation Big Brothers Big Sisters of Central Arizona
36
Noted business and community leaders Marie Lopez Rogers, Scott Smith and Jay Tibshraeny respond to IBM’s burning business question of the month.
14 Briefs
30 The Strength of ‘No Blame Game’
Business Association
Barry Broome, president and CEO of Greater Phoenix Economic Council, introduces the “Legislature and Business” issue.
“LeadGen from Social Media,” “Kumbuya: A place for Passion,” “Bilingual Mobile Banking,” ” Public/ Private Alliance Creates Resource to Fund Business Growth,” “ASBA Coaching Services,” “Diamond Wholesaler Creates New Supply and Demand,” “Council Launched to Address Fraud, Security and Privacy Issues in Digital Age” and “Local Bank Offers Import/Export Financing”
18 By the Numbers
Top economic analysts offer a positive forecast for Phoenix’s economy in 2013.
22 Trickle Up
View from the top looks at how Elliott Pollack coalesced the random events of his life to become one of the region’s most respected economic analysts.
31 Books
New releases explore new philosophies of doing business.
36 Assets
Infiniti QX56 Plus: Top golf clubs to mix business with pleasure
37 Power Lunch
Christopher’s Crush offers up an eventful meal in an urban contemporary atmosphere. Plus: Reminiscing on some of the best lunch spots that opened in 2012
66 Roundtable
An individual’s selfish motivation can be harnessed for the overall good of the company.
On The Agenda
33 Spotlight
Small Business Outlook 2013 NxLevel Entrepreneurship Course
34 Calendar
Business events throughout the Valley
inbusine ssmag.com
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Vol. 4, No. 1. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2013 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
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inbusine ssmag.com
Barry Broome, President and CEO, Greater Phoenix Economic Council
Guest Editor
Looking Ahead to Prosper
Barry Broome’s tenure at GPEC has led to the attraction of more than 170 companies creating more than 30,000 jobs and $7 billion in capital investment to the region. Under his leadership, GPEC has been ranked the No. 1 regional economic development organization in the United States among siteselection consultants and was recognized as Organization of the Year by the Arizona Association for Economic Development. Broome is credited with developing economic development programs that redefine public policy and improve statewide competitiveness.
After a long election and a year of moderate but much-needed growth, businesses are energized to prosper in 2013 and beyond. Arizona’s economic picture is improving, with the housing market gaining momentum, lending opportunities resurging and a focus on economic development to improve the jobs market and create economic opportunity. One thing is for certain: To inoculate ourselves against future downturns, we must look at diversifying our economy beyond the growth industries — like housing and construction — that have defined our regional wealth opportunities for decades. The key to this economic transformation lies with export industries. Why? Export industries tend to be capital-intensive operations and pay higher-than-average wages. They also support small businesses and entrepreneurs by creating wealth. At the Greater Phoenix Economic Council, we have identified export growth as one of our long-term priorities because it is essential to growing both the region’s economic base and our competitiveness with other states when it comes to high-value investments. As such, we are supporting policies that make Arizona more competitive for export-centric investments. We are also advocating for free trade policies at the federal level, particularly with China, which is on track to become the biggest economy in the world. While there’s still more work to be done, we feel strongly that increased export growth and investments will yield the most productive results by helping to put the Greater Phoenix region on a more solid path to prosperity. Turning to more local initiatives, the new legislative session promises some focus on what business will need to grow. Don Rodriguez spoke with legislative leaders on many of the key committees, specifically the Commerce, Energy and Military; Higher Education and Workforce Development; and Commerce committees. His cover story “Contemplating Growth: Is the Arizona Legislature Ready to Act for Business?” includes input from the Arizona Chamber of Commerce and Industry and the Arizona Small Business Association. This issue of In Business Magazine also features an in-depth look at one of our state’s most important sectors — agriculture. Sue Kern-Fleischer explores the industry, from small, local, family enterprises to large agriculture businesses that export globally. In another feature, Mike Staver discusses how a leadership style that avoids the “blame game” promotes better morale and greater creativity and productivity among employees. Finally, Moe Glenner offers an unusual view of how an individual’s selfishness can be harnessed for the good of the company in the “Roundtable” feature “Return on Personal Investment.” With its broad focus on topics that will benefit those vested in business in the Greater Phoenix area, from small-business owners to executives of our biggest corporations, In Business Magazine continues to be a reliable business resource — and a good read. Sincerely,
Barry Broome President and CEO Greater Phoenix Economic Council
Connect with us:
Happy New Year! 2012 is behind us and, as we move into 2013, forecasts by well-known economists seem to be optimistic for Arizona. Job growth, increase in retail sales and continued growth in the housing market — these are all good signs of what is to come for business here and will encourage business leaders and government officials to focus on Arizona’s economic potential.
inbusine ssmag.com
Barry Broome, as head of GPEC, was asked to lead this issue because of his steadfast work in building Arizona’s economic potential. His team and their programs and efforts to energize business leaders and industry here are making a difference. We thank them all, with special thanks to Barry for his leadership. Here’s to a great 2013 for Arizona business. —Rick McCartney, Publisher
Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com
J a n u a r y 2013
11
Feedback
Valley Leaders Sound Off
Executives Answer
As a leader working with our business community, what do you see as the priority for local municipalities in working with the Arizona State Legislature in 2013 to build business and strengthen our local economy?
Marie Lopez Rogers
Scott Smith
Mayor, City of Avondale President, National League of Cities Sector: Government
Mayor, City of Mesa President, The United States Conference of Mayors Sector: Government
Over the past year, beneath the headlines about downsizing and layoffs, mayors, business leaders and state officials have been discussing strategies to expand global economic linkages as viable sources of local economic growth with our neighbor, Mexico. California and Texas are far outpacing Arizona when it comes to imports. How are they doing it? First, they established a rapid, efficient and safe means to get goods and people through their borders. The Mariposa Port of Entry at Nogales is one of the 10 busiest cargo ports along the U.S.-Mexico border, and suffers a major bottleneck for freight and wait times that are some of the highest in the country. Arizona needs to improve its infrastructure at the border, and more resources in Customs are desperately needed. New Mexico created tens of thousands of jobs and moved from 38th to second in the nation in export growth with their recent improvements. It is my hope that Arizona State and U.S. Congressional legislators will recognize this need and work with us to improve our borders. After all, we are all border cities.
Cities are the economic engines of our state that drive our overall success. If Arizona is to reach its full potential, cities and the state must work together to create an environment that enables businesses to prosper. This can happen only if their hands are not tied by burdensome regulations. Our legislators can help local government build a system that makes Arizona the most business-friendly state in the country. We need to empower and strengthen businesses by increasing collaboration between business and government, expanding access to capital, providing entrepreneurship education and removing barriers to success. As cities, we can share our experiences and best practices, build off of our wins and recognize that our competition is no longer other cities or states, but other countries that are finding ways to compete with American businesses. Working together, we can complete the toolbox we need to bring opportunities to Arizona. It’s time to work together to find a way to build a better economy for Arizona.
City of Avondale avondale.org
City of Mesa mesaaz.gov
National League of Cities nlc.org
The United States Conference of Mayors usmayors.org
Marie Lopez Rogers was elected Mayor of Avondale in 2006, after 14 years as councilmember. Growing up picking cotton in fields where her City Hall now stands, Mayor Rogers never imagined that she would help guide the Valley’s transformation. She is Chair of the Maricopa Association of Governments Regional Council, and President of the National League of Cities, which serves as a resource and advocate for 19,000 cities and towns.
Mayor Smith just began his second term and is credited with stabilizing the city’s finances and putting Mesa on a positive fiscal path that withstood the recession. Recently, he led the effort to bring four legacy colleges to downtown Mesa and establish the Mesa Center for Higher Education. He is president of the U.S. Conference of Mayors — marking the first time an Arizona mayor has led the organization.
Jay Tibshraeny Mayor City of Chandler Sector: Government As the mayor of one of the state’s largest cities (4th; 3rd in Maricopa County), my top priority is communication. Keeping an open dialogue is critical with those who represent us. Heading into the upcoming session, I have been meeting with members of our delegation to discuss our thoughts and concerns. As a former state senator, I understand the challenges they face. I also believe the state legislators who represent Chandler do an excellent job. We all
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encountered some tough tests during the recent recession. As we pull out of the economic fog, it is vital that the state no longer go after funding sources for cities like state-shared revenues (an agreed-upon portion of state tax revenues that are funneled to municipalities) or highway-user revenue funds (known as HURF funds). I also remind our representatives that, while the state creates broad economic policy, development occurs mainly at the city level — where we have created solid infrastructure and developed strong work forces and quality-oflife communities that attract employers. City of Chandler chandleraz.gov
Mayor Jay Tibshraeny began his 5th term as mayor of Chandler in January 2011. The Chandler native served in the Arizona State Senate from 2003-2011. His service in the community includes work with the Chandler/Gilbert Association for Retarded Citizens Advisory Board, Child Crisis Center Advisory Board and ICAN Site Advisory Committee. A small-businessman and a citrus grower, he holds a bachelor’s degree in accounting from Arizona State University.
inbusine ssmag.com
Educators, Business Owners & HR Professionals Join us for a powerful discussion on filling the skills gap in Arizona. Topics Include: Efforts to Educate Our Workforce Skills Training & Economic Opportunity Readying Youth & Strategies Growth Industries & Economic Incentives In Business Magazine strategies bring together the top stakeholders for an important conversation to build business in Arizona and beyond.
Panelists Invited to Attend
Moderating our event
Ted Simons
Host, Arizona Horizon, KAET Eight
Patrick Burkhart
Susan Carlson
Provost Mesa Community College
Executive Director Arizona Business & Education Coalition
Susan Clark-Johnson Ann Weaver Hart Executive Director Morrison Institute at Arizona State University
President University of Arizona
Friday, January 18, 2013 Arizona Biltmore Resort The Grand Ballroom 11:30a Registration & VIP Reception 11:50a – 1:30p Lunch & Symposium
Dr. Eugene Giovannini Glenn Hamer President GateWay Community College
President and CEO Arizona Chamber of Commerce and Industry
John Huppenthal Superintendent of Public Instruction State of Arizona
Robert Sarver
Chairman and CEO Western Alliance Bancorporation
Individual Lunch: $65 Sponsor Table of 10: $1,000 Corporate Sponsorships Available For more information: Phone: 480-588-9505 x213 Email: info@inbusinessmag.com
Presented by:
Don Smith
President and CEO SCF Arizona
Scott Smith Mayor City of Mesa
Greg Stanton Mayor City of Phoenix
Steven G. Zylstra
President and CEO Arizona Technology Council
Invited panelists at time of press.
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Briefs
Quick and to the Point
Bytes LeadGen from Social Media Nimble, a pioneer of social relationship management, now integrates with HootSuite, makers of a market-leading social media management system. Now users can connect social media best practices to Social CRM capabilities, such as identifying, connecting and nurturing prospects; businesses can finally “close the loop” on social selling and customer engagement. The Nimble app for HootSuite is now available free to HootSuite and Nimble users. nimble.com
Kumbuya: A place for Passion Users can create themed communities, called “tribes,” where members can hold discussions and upload different types of media. Within a tribe, users can moderate and lead discussions in an environment that fosters participation, and make money from their efforts in a respectful way. kumbuya.com
Bilingual Mobile Banking In an effort to connect with its Spanish-speaking clientele, BBVA Compass launched its bilingual iPhone app, offering full-service banking in Spanish to the mobile market. The bank will be adding bilingual capabilities on all platforms, including BlackBerry® devices and the Android™ mobile digital platform. bbvacompass.com/go/mobile
Public/Private Alliance Creates Resource to Fund Business Growth
Expected to help kick-start the flow of capital to businesses for loans they need to grow, At Work for Arizona Business Loan Alliance launched last month with $12 million committed to fund loans of $50,000 to $500,000 to businesses that lack adequate equity investment or sufficient collateral for a conventional loan but are otherwise creditworthy. Forging this groundbreaking businessloan collaboration are governmental development authorities (the City of Phoenix and the County of Maricopa industrial development authorities and the Arizona Commerce Authority), community banks (Biltmore Bank of Arizona, Sonoran Bank and West Valley National Bank), a nonprofit (the Phoenix Community Development and Investment Corporation) and a private-sector partner (SCF Arizona, the state’s largest provider of workers’ compensation insurance). To the $1 million from each of the development authorities, $2 million from each of the banks and up to $3 million from the ACA — from its $18.2-million Arizona Innovation Accelerator Fund — SCF Arizona has committed $1.2 million to guarantee up to 20 percent of qualified loans. The alliance is expected to operate for approximately 12 months or until the funds are fully deployed, and there is no requirement that applicants have an account at any of the participating banks or be an SCF policyholder. “The idea behind this innovative alliance was to bring together Arizona-based lending institutions that really understand local markets and have the flexibility to think outside the box,” says Roberto E. Franco, CEO of the Phoenix Community Development and Investment Corporation, which will serve as the first point of contact for borrowers. “Understandably, banks have had to re-evaluate their lending practices, but the timing couldn’t be better for investing in Arizona business. The past few years have been extremely difficult for business owners and only the solid performers are still operating.” “An important aspect of the Business Loan Alliance is that, in addition to the banks’ regularly required financial statements, borrowers must demonstrate job creation, job retention or higherquality jobs,” notes Charles P. Thompson, president of the Industrial Development Authority of the County of Maricopa. “This provision is directly in line with our mission to help maintain and/ or create higher-value jobs throughout the county.” —RaeAnne Marsh Phoenix Community Development and Investment Corporation phoenixnewmarkets.org
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Briefs
Quick and to the Point
Diamond Wholesaler Creates New Supply and Demand
Council Launched to Address Fraud, Security and Privacy Issues in Digital Age
Businesses are built on the idea of supply and demand. But what if there is not a supply? In Jana Hadany’s case, even the demand was not assured when she conceptualized Avilan Storied Diamonds to be a sustainable diamond business. The business concept was sparked by conversations in 2010 Hadany heard between her husband, Avi Hadany, and his partner, Ilan Wexsler, about reinventing their diamond business in the wake of the economic collapse that impacted them in a slowdown in demand for luxury items. Hadany believed recirculating diamonds from existing inventory would not only aid economic recovery but would benefit the environment and human rights by offering an alternative to the traditional mining process and the “atrocities associated with the industry.” The challenge was establishing transparency in the supply chain. This she overcame with certification through Scientific Certification Systems, the worldwide leader in sustainability and environmental certifications. “We were part of piloting the standards for the diamond industry,” Hadany says. Explaining why she felt there was a need for the new model, Hadany notes that the supply currently being mined will not last past the next century and no new mines have been discovered. However, she says, “If traditional mining ceased, there would be enough [diamonds] in circulation to feed the needs of the population that wants to purchase.” Since its official launch of Avilan Storied Diamonds in June 2012, the Scottsdale-based diamond distributor has increased its staff from two to 15 and has solidified its national network of retailers. —RaeAnne Marsh
Identity theft comes in many unexpected guises that can harm a business, a realization that prompted LifeLock to sponsor the recently launched Council for Identity Protection. Says Todd Davis, chairman and CEO of LifeLock, “It is our belief that challenges in the digital age are not independent, but must be viewed with a more integrated view of the problem and ultimate solutions.” Founding board members bring diverse expertise: Stephen Coggeshall, Ph.D., chief technology officer of ID Analytics, a leading consumer risk management solutions provider whose powerful fraud solution he helped design; Ori Eisen, founder and chairman of The 41st Parameter, with ten years in the information technology industry; Chris Jay Hoofnagle, director of the Berkeley Center for Law & Technology’s information privacy programs and senior fellow to the Samuelson Law, Technology & Public Policy Clinic; Markus Jakobsson, Ph.D., principal scientist of consumer security at PayPal and holder of more than 100 patents; Kevin Mitnick, considered to be the “World’s Most Famous Hacker” and author of several books on fraud and criminal methods; and David Montague, founder and president of The Fraud Practice whose background includes an in-depth application of innovative solutions for preventing business-to-consumer e-commerce fraud. An issue they recently addressed was the wholesale lifting of a business’s website, including testimonials (attributed to fake authors) and claims on social media that the copycat business owner worked for the copied business from 1994 to 2004 — but it wasn’t founded until 1997. It’s not so unusual, as copycat victim Smith Publicity was informed. “I’ve seen it before,” says board member Eisen, referring Smith Publicity to services such as reputation.com. —RaeAnne Marsh
Avilan Storied Diamonds avilandiamonds.com
Council for Identity Protection councilforidentityprotection.org
Local Bank Offers Import/Export Financing
Businesses are increasingly involved in export commerce, but loans on their foreign receivables are not as readily available as on domestic receivables. “That restricts the amount a business can leverage,” says Greg Lehmann, managing director of Biltmore Bank of Arizona, explaining the decision is made from a risk standpoint. Helping to fill that void, Biltmore Bank recently went through the certification process to become a designated lender in the Export-Import Bank of the United States’ financing program — one of only a handful of lending institutions in the state. The Ex-Im Bank, which does not compete with privatesector lenders, is the United States’ official export credit agency. “To be a government-guaranteed delegated authority is an investment on the part of the bank,” says Leticia Scearce, Biltmore Bank’s vice president of government guaranteed lending, who spearheaded the process. Because export financing is an insurance product, she explains, the designation requires the bank’s officer involved in it to be intensively trained in “the ins and outs of how it works.” According to Lehmann, plans call for the bank to focus on
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small to mid-sized businesses in Arizona seeking financing. The Ex-Im Bank requires its participating banks to be well capitalized, and places no limit on the amount of their lending. “Exports are an increasingly important part of Arizona’s economic recovery as local businesses both big and small start to look beyond our borders to increase their customer base,” says Francisco Sánchez, under secretary at U.S. Commerce for International Trade. “According to newly released data for fiscal year ending 2012, the Ex-Im Bank achieved a fourth consecutive record-breaking year with over 35.8 billion in loan authorizations nationally. For Arizona, there were a total of $63.9 million in loan disbursements resulting in $113.1 million in supported export sales for 2012,” says Scearce. According to the latest data compiled for Metro Phoenix, merchandise exports increased to $10.9 billion in 2011 from $9.3 billion the previous year — a 16.8-percent bump. —RaeAnne Marsh Biltmore Bank of Arizona biltmorebankaz.com
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J a n u a r y 2013
17
By the numbers
Metrics & Measurements
Arizona On Track for Full Recovery
Analysts’ optimism is tied to positive outcomes by the federal government According to many of the nation’s top indicators, local university research teams and various economic scholars, Arizona is moving toward a full recovery. After the recent 49th Annual Economic Forecast Luncheon organized by ASU’s W. P. Carey School of Business, where an assembly of experts was gathered, it seemed to be good news — Arizona is on a fast track to recover. “As of September, Arizona ranked fifth among states for job growth, and the Phoenix area was fourth among large metropolitan areas,” said Research Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “Arizona is expected to add 60,000 jobs in 2013, led by professional and business services, retail, hospitality and healthcare. We should finally dip below 8-percent unemployment in 2013 — down to 7.6 percent.” His outlook suggests Arizona will see pre-recession employment levels by 2015.
Arizona Economic Outlook Key Indicators Indicator
Actual 2011
Actual 2012
Forcast 2013
$227,286
$236,378
$248,197
4.9
4.0
5.0
Personal Income Millions Percent Change
Non-agricultural Employment Thousands
$2,405.5
$2,453.6
$2,513.6
1.0
2.0
2.5
Percent Change
Manufacturing Employment Thousands
$149.7
Percent Change
$151.3
$152.8
0.8
1.1
1.0
$47,531
$49,900
$52,900
10.4
5.0
6.0
Retail Sales Millions Percent Change
Single-family Housing Permits Number Issued
10,306
16,490
24,700
Percent Change
-4.2
60.0
50.0
Population Thousands
6,482
6,566
6,665
1.1
1.3
1.5
9.0
8.2
7.6
Percent Change Unemployment December Rate (Seasonally Adjusted)
“If we can avoid the fiscal cliff, then it looks like the economy could finally be in a self-sustaining recovery,” said Beth Ann Bovino, deputy chief economist at Standard & Poor’s. “We expect this year’s [2012] gross domestic product to hit 2.1 percent, stronger than previously projected. For 2013, we’re looking at about 2.3 percent. Reports also show a stronger jobs market and signs that households are willing to buy big items, such as cars and homes.” This bodes well for Arizona business owners who have been looking to positive indicators and for federal direction to begin hiring, borrowing and focusing on growth. Both McPheters and Bovino stipulate, however, that their optimism for Arizona is closely tied to positive outcomes on a national level. Anthony Chan, Ph.D., chief economist for private wealth management at JPMorgan Chase & Co., reiterates his concern in the financial sector as to how markets will react to the “fiscal cliff.” “U.S. corporations are reluctant to go through global mergers and acquisitions or make big investments until they have a clearer picture,” said Chan. “Corporations are keeping high cash balances in order to deal with the uncertainty. They’re making near-record profits in some cases, and many values on the stock market look good. However, everyone’s waiting to see what will happen.” Local housing is improving as well. Elliott D. Pollack, CEO of Scottsdale-based economic and real estate consulting firm Elliott D. Pollack and Company, noted that foreclosures are down, home prices are up more than 35 percent from a year ago, and new home sales are up with only a year’s worth of inventories. “Even though about 40 percent of Arizona homeowners are underwater on their mortgages, we’re starting to see a recovery,” said Pollack. “The single-family-home and apartment markets look great. Industrial real estate has improved quite a bit. Only office and retail have quite a way to go.” —Mike Hunter
Key Indicators Key indicators for our state economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy. Economic Indicators (Arizona) Unemployment (Oct. 2012)
Standard & Poor’s standardandpoors.com W. P. Carey School of Business wpcarey.asu.edu
YOY % Change
8.1
-0.31
2,484.2
0.03
No. of Housing Permits (Oct. 2012)
1,758
86.43
Consumer Confidence (Q2 2012) (Arizona)
68.6
32.18
$22.62
0.01
Job Growth (in thousands) (Oct. 2012)
Average Hourly Earnings (Oct. 2012)
Eller Business Research
Retail Sales (Arizona) Retail Sales (in thousands)
Aug. 2012
Sept. 2012
Total Sales
$6,419,041
$6,459,804
4.79%
3.26%
Retail
$3,878,041
$3,912,879
Food
$951,007
$960,781
Restaurants & Bars
$831,281
$811,452
Gasoline
$758,711
$774,691
Contracting
$856,229
$823,703
Change Y0Y
Eller Business Research
Real Estate Commercial: Office*
Q3 2011
Vacancy Rate
Q3 2012
28.1%
27.5%
Net Absorption (in SF)
374,230
256,622
Rental Rates (Class A)
$24.04
$23.28
Commercial: Indust.*
Q3 2011
Vacancy Rate Net Absorption (in SF) Rental Rates (General Industrial)
Residential: Total Median Sale Price
Q3 2012
13.1%
11.3%
1,166,100
1,487,763
$0.50†
$0.40†
Nov. 2011
Total Sales Volume
Nov. 2012
6,975
7,763
$128,700
$167,500
New Build Sales Volume
642
872
New Median Sale Price
$227,178
$249,768
Resale Sales Volume
Elliott D. Pollack and Company elliottpollack.com JPMorgan Chase & Co. jpmorganchase.com
Number
Resale Median Sale Price
6,333
6,891
$119,900
$157,000
* Cassidy Turley Arizona †
Industrial rents are expressed as triple net.
JPMorgan Chase Economic Outlook Center, W. P. Carey School of Business Latest data at time of press
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J a n u a r y 2013
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SE C TOR
Industry at Its Best
Agriculture in 2013: How Will Arizona’s Second-largest Industry Fare? Farmers face challenges from government and Mother Nature by Sue Kern-Fleischer
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Harvesting cauliflower in Yuma County, which has the longest growing season in the country
that need to be overcome. “Agriculture is definitely a growing business in Arizona. We estimate it was a $12.4-billion industry in 2011 — that’s up from $10.3 billion in 2008. But that number could be larger,” he says. “One of the challenges we face in Arizona, like farmers across the country, is a labor shortage. We have growers in southwestern Arizona that have reduced the amount of crops they plant because they aren’t sure they’ll have the workers they need to harvest.” Mother Nature presents another challenge. The ongoing drought in Arizona creates obstacles for the farmers and ranchers, but Butler says farmers are creative. “In the Yuma area, some are going to drip irrigation to ensure the valuable water gets to the roots of the plants. Some are changing crops to adapt to the environment and the market,” he says. Butler says the disconnect between people and their food gives agriculture one of its biggest challenges. “Americans have one of the safest food supplies in the world, yet most people don’t comprehend what happens before they buy it at the grocery store. Did you know it takes two years from conception to consumption for a hamburger? And that’s if nothing goes wrong. Ranchers and farmers work diligently to protect the food from bugs, disease and disaster … all to make sure everyone can have the foods that they enjoy,” he says.
Brett Hunt is business manager of Rousseau Farming Company, a Phoenix-based family farm that has been farming in Arizona since 1892. The 10,000-acre farm grows fresh vegetables, melons, wheat and hay, and ships fruits and vegetables to all of the lower 48 states, Canada and Mexico. Rousseau focuses primarily in the leafy greens portion of agriculture, which includes lettuce, spinach, kale and cabbage. “That sector of the industry alone contributes about $1 billion a year to the Arizona economy, employs approximately 20,000 people and supplies about 89 percent of the lettuce to the entire country between November and March,” he says. In fact, Yuma is the lettuce bowl capital of the world during the winter months, and then lettuce production shifts back to California as temperatures warm up for the summer. The state Ag census counts 452 farms in Yuma County, totaling nearly 210,500 acres of land in farms and more than 193,000 cropland acres. While the current drought is a concern to Hunt, he feels fortunate to have “the great surface water delivery system in Salt River Project and the Central Arizona Project.” And while his farm battles some of the same threats farmers have throughout history, including bad weather, pests and crop failures, he welcomes drier weather since it is good for their prospects and means they can harvest inbusine ssmag.com
Photo courtesy of Arizona Farm Bureau
Last month, the 2012 Census of Agriculture mailed forms to farmers and ranchers nationwide asking them questions relating to all areas of farming and ranching operations, including production expenses, market value of products and operator characteristics. In 2007, Arizona was seen as a major agricultural state, ranking third in the nation for total value of vegetables, melons and potatoes produced and second in U.S. lettuce production. How will Arizona rank during this most recent census and what can our state’s second largest industry expect in 2013? At press time, Julie Murphree, Arizona Farm Bureau’s public relations, marketing and agriculture education director, was concerned about the “Fiscal Cliff ” negotiations and the Inheritance Tax, or, as many in the industry call it, “the Death Tax.” Effective Jan. 1, the tax was set to jump from 35 percent to 55 percent, with the exemption dropping from $5 million to $1 million, bad news for younger farmers and ranchers whose parents pass away and leave them the farm. Anything more than $1 million will be taxed at 55 percent, and Murphree was quick to point out that, with land values the way they are in Arizona, a small to medium-sized farm can reach that $1 million value quickly. “The inheritance tax will put family farms out of business, and right now 98 percent of farms in America and Arizona are family-owned and -operated. They are the purest form of small business in this country. So in 2013, this is of great concern for us,” she says. Murphree explains that young farmers do not have the savings to afford life insurance premiums to cover the costs of an elderly parent, and this puts the whole farm in jeopardy. “There are almost 4,000 cattle ranches in Arizona that raise a total of 900,000 head of cattle each year. Many of the ranchers are third- and fourth-generation Arizonans. This inheritance tax could wipe that all out, since selling the farm or ranch would be the only option to pay the taxes,” she says. Don Butler, director of the Arizona Department of Agriculture, is cautiously optimistic about 2013, citing several challenges
most days. “When it is a rainy year, it can be challenging because it is tough to get in and harvest in the mud,” he says. “Agriculture is a very tough job, and only strong and dedicated individuals can do the tough tasks and long hours which it requires.” Bob McClendon, president of McClendon’s Select in Peoria, has been farming since 1975. His farm is small in comparison to Rousseau Farming Company, at 50 acres total in both Peoria and Goodyear, but his focus is different, supplying fresh produce to more than 50 restaurants statewide and also selling at farmers markets. “We decided in 2000 to convert all of our operations from conventional farming to organic farming. I could see the health benefits and trends. It absolutely exploded,” he says, citing that his business is growing exponentially and estimating a 20 percent increase in demand each year. Like Rousseau, McClendon’s faces the same challenges finding good labor, but the small farm turned to technology to adapt to other production challenges. “We’re one of the highest-tech farm operations in the state, and we were recently featured on Apple’s website in a small business profile. We also have the latest GPS technology in our tractors that gets us down to sub-inch accuracy. We can drive a half mile and be within less than an inch of perfection for being straight,” he says. Dee Logan founded Arizona Community Farmers Market with her husband, John, in 1989. She also owns the Farmers Market Support Services and views 2013 as a
Harvesting cilantro in Yuma County
transition year for farmers, citing challenges such as limited access to land and water, climatic changes, urbanization, lack of resources in rural farming areas and a lack of skilled farm labor. Conversely, there is a growing demand for local food production and identified regional sources that are available in specialty venues like farmers markets. Currently, there are more than 60 active weekly farmers markets statewide that are either seasonal or year-round. This does not include special event markets that are geared around agricultural themes, such as salsa and wine festivals or farm events. “We are seeing more local production, with more small farmers growing to fill the need but with less resources in some instances to do so,” she says. Farmers markets and other specialty agricultural venues are a growth industry.
In the Phoenix metro area alone, consumers can choose to attend close to 20 active weekly markets and several monthly markets. “The Community Farmers Market Group will be working with more farmers market projects in the next two years, and that trend is growing statewide also,” she says. “There will be more pressure on the farmers to produce enough to meet public demand. On the up side, micro farms and urban growers are also seeing this trend as a business opportunity as well as a lifestyle option.” Arizona Department of Agriculture azda.gov American Farm Bureau Federation azfb.org Rousseau Farming Company farmfreshaz.com McClendon’s Select selectorganics.com Arizona Community Farmers Market Group arizonafarmersmarkets.com
Photos courtesy of Arizona Farm Bureau
Arizona-grown ■■ Arizona agricultural is a $12.4-billion-per-year industry. ■■ The top 16 crops, along with livestock, produce about $4 billion in cash receipts alone. ■■ Arizona ranks second in the U.S. in head lettuce, leaf lettuce, romaine lettuce, cauliflower and broccoli production. ■■ Arizona has more than 15,000 farms and ranches across the state. ■■ Dairy is Arizona’s leading agricultural product. ■■ Arizona produces enough beef annually to feed more than 4.6 million Americans. ■■ 215 pairs of jeans can be produced from one bale of cotton grown in Arizona. ■■ Yuma is the winter lettuce capital of the world. ■■ Nationally, Arizona ranks second in the production of lemons and third in tangerine production. ■■ Apple growers over the last five or six years averaged close to 20 million pounds Citrus in Yuma County, which ranks number one in Arizona for lemon, tangelo and tangerine production
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per year.
Source: Arizona Farm Bureau
J a n u a r y 2013
21
Trickle Up
A View from the Top
Elliott Pollack: Master of Figures Local economist couples a no-nonsense approach to business with a belief that life isn’t all by the numbers by Gremlyn Bradley-Waddell
He was attending Boston University, where he earned a bachelor’s in accounting. Math was one of many subjects that had always come easy for him. While taking economics his sophomore year, he thought, “Geez, a monkey could do this.” He went on to earn an M.B.A. from the University of Southern California, and then found himself in Phoenix as well. Pollack landed a job at Valley National Bank, where he’d work the next 18 years, 14 of those as the chief economist. And his landing that position was random, too, he says. After laboring in the trust department a few years, he felt it was time to move up or move on. On his way to resign, he was joined in the elevator by the chairman of the board and Pollack shared his impending plans. The chairman asked him to hold off, and later that day, Pollack got a phone call. He was the new chief economist. “A lot of good people there,” he says of the bank. “It was a good run.”
An Economic Focus
■■ Elliott D. Pollack founded his company in 1987. ■■ Of the company’s 10 employees, seven are economic consultants. ■■ Services include market feasibility ■■ ■■
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J a n u a r y 2013
studies, economic policy analysis, affordable housing studies and land analysis as well as economic impact and fiscal impact analysis. Strategic partners include commercial real estate and site selection organization CBRE and economic development practitioner Ioanna Morfessis, Ph.D. The company’s expertise has been called on by a variety clients that have included the State of Arizona, Arizona Diamondbacks, Del Webb, Gila River Indian Community, Luke Air Force Base and Southern California Edison.
But by 1987, it was time again to move on and he went into business for himself. He’d gained a wealth of experience at Valley National Bank, as well as a following, and was frequently featured in the press. He believed “something would happen,” and it did. Companies started calling, wanting litigation support, feasibility analyses and to know what was happening with the economy. He’d found a niche, but perhaps even he didn’t initially realize its importance to clients. “I didn’t understand they’d be willing to pay me as much as they were,” he says. The rise of the computer has affected his field, mostly advantageously because of increased efficiency, but he’s also faced challenges. He doesn’t like confrontation and, like most bosses, he doesn’t like firing employees. But if things aren’t working out, “I want to end it sooner rather than later,” he says. The same goes for clients. One challenge was his decision to fire a municipality as a client “because they didn’t like the answer” he gave on a zoning matter. The decision meant he lost a tidy sum, but his credibility was more important. “If someone can show me that I’m wrong, I’m all ears,” he says. “It doesn’t happen that often.” In fact, after a change in personnel, the municipality did seek his expertise again, he adds. While he’s considered expanding his business, he never has because focusing on the local market is what makes Elliot D. Pollack and Company so strong. “We can run circles around our competition,” he says. “We know more. Why? Because our feet are on the ground here.” After 25 years in the business, he’s says there’s nothing he can’t do when it comes to economics. “What I’m proudest of, after being in this business for so long, is that I still am reasonably well thought of and people still want to hear what I have to say,” he says. Elliott D. Pollack and Company
edpco.com
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Photo courtesy of Xxxxxxx
Prominent Valley economist Elliott Pollack, CEO of economic analysis firm Elliott D. Pollack and Company, is a no-nonsense kind of guy, his passion for his profession evident in every word of his rapid-fire delivery. Yet he’s not a strictly by-the-numbers sort; he has a philosophical streak. Just ask, for example, how he got his start. “Life,” he says, “is how you react to a series of what are, essentially, random events.” It was the television game show “Concentration,” on which his mother was a contestant in 1963, that prompted his family’s move to Arizona from New York. “She was on for three weeks straight,” he recalls, and his mom won a lot of prizes: “cars, boats, cash.” As fate would have it, she also won a vacation to Phoenix. After a two-week escape to the Valley of the Sun, his parents decided to stay the winter, and soon they decided to move permanently. Pollack’s reaction to the news was, “Where the hell is Phoenix, Arizona?”
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J a n u a r y 2013
23
Contemplating Growth Is the Arizona Legislature Ready to Act for Business? by Don Rodriguez
As the new legislature convenes, sights are set on being ready for anticipated population growth and economic development that will see the creation of a megatropolis from Tucson to Flagstaff
The exodus, part II. That’s what Rep. Tom Forese (R-District 21) wants to be ready for when California businesses flee the high taxes and mountain of regulations that have accompanied the leadership of Gov. Jerry Brown. The last time this opportunity to get new businesses came Arizona’s way was the 1970s — the first time Brown was governor. “History repeats itself, but not always with the same players,” he says. Forese has a chance to have an impact as the incoming chair of the House Commerce Committee when the Arizona Legislature reconvenes this month. He wants to help create a business climate that will be more than a quick fix to boost the current recovery. Looking 20 years into the future, he wants to be ready for the megatropolis forecast to stretch from Flagstaff to Tucson along with the population growth expected to come with it. “The question we need to ask is: What kind of megatropolis will it be?” To build an economy that supports such change, he and other legislators and public policy experts are already setting sights on their targets: economic development, job creation, education, taxation and
regulations. Joining Forese on his committee is Rep. Debbie McCune Davis (D-District 14) who says she is “trying to correct the economic direction Arizona has taken.” McCune Davis understands the need to see the big picture. “We need to have [Arizona Legislature] members understand where Arizona wants to go economically,” she says. “They need to have a clear vision and pass legislation that supports that vision.” Without such an understanding, the risk increases of a fragmented economy, McCune Davis warns. At press time, plans still were being finalized among legislators on the specific actions that will be taken when committees come together in mid-January after the start of the session. But there are ideas already taking shape. Key will be encouraging the growth of businesses to put Arizona on a solid foundation, says Rep. Marcario Saldate (D-District 27) a member of the House Higher Education and Workforce Development Committee. As a result of supporting programs to support that growth, the Arizona economy can improve. Says Saldate, “The better we are in meeting those needs, the better local businesses can do.”
Jobs and Business Creation Getting a good job depends on finding ways to prepare the workers. “Business will encourage more expansion when they see a highly trained work force,” Saldate says.
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The better the businesses do, the more hiring that can occur. Coming from a blue-collar district, McCune Davis says finding ways to create jobs is the reason she requested the chance to be on the Commerce Committee. Getting a good job depends on finding ways to prepare the workers. “Business will encourage more expansion when they see a highly trained work force,” Saldate says. “We need to align [students] with high-skill jobs to drive our economy.” By drawing higher-paying employers to Arizona, students can believe in a future payoff by seeing these jobs in action. “You can’t separate one from the other,” she says. McCune Davis shares the view that the work force needs to be prepared for more than traditional jobs. She notes that in the past, the economy has relied heavily on such segments as tourism. “I want to redirect the economy toward a sustainable future,” she says. “We need to be more dynamic in our change.” One way is technology. As an example, McCune Davis cites the advancement of biotechnology in Arizona. The state needs to have this emerging field here “so we can learn from those who are doing good things” and grow even more, she says. Her support for technology was the reason she was endorsed in the primary and general elections by the Arizona Technology Council and recently inbusine ssmag.com
“I expect to see bills focused on workforce development and education,” says Jerry Bustamante, senior vice president responsible for public policy and Southern Arizona for the Arizona Small Business Association. was one of 10 legislators to receive a 2012 Trailblazer Award from AZBio. With technology transfer and angel investors becoming part of the business landscape, she sees a place for commercialization of science in Arizona. This works to help the state so it “transitions in a way that grows,” McCune Davis says. Like Forese, she supports ways to make the state a desirable destination for companies looking to move. There needs to be support of tech incubators appearing in Arizona communities, she says, noting the state has gained a reputation of being open to entrepreneurs. For students to compete in such a world, “we need strong schools to prepare students at whatever capacity they can operate,” Saldate says. “The entrepreneurial economy needs this.” That doesn’t necessarily mean supporting only the universities. Saldate, a veteran educator, says technology training is offered at the community college level, where he taught earlier in his career.
Education At the core of training is the entire state education system. Saldate, whom many know from his years at the University of Arizona, says there “needs to be a tie between K-12 and the university” so lawmakers identify where education needs to be improved and provide adequate funding, rather than making the system subject to budget cuts. He asked to be on the committee because “education is so vital to our economy and community” and with state budget cuts in the millions, “we can’t allow that to happen anymore.” In addition, there is the need to “provide necessary encouragement for students who are successful when they seek a particular job,” he says. For example, an algebra course can lead to opportunities in science and high-tech jobs. Students need to compete in the workplace, whether it is working in technology or at a university. “I see a strong need to create a critical mass of individuals who are educated,” Saldate says. Sharing the desire for the legislature to focus on education are economic development groups in the state. “It’s time to renew our focus on improving our education system statewide,” says Suzanne Kinney, senior vice president of public policy for the Arizona Chamber of Commerce and Industry. In particular, the chamber supports common course standards in the state so students can get through school better prepared for the work force and college, she says. The Common Core State Standards Initiative is a nationwide movement to define the knowledge and skills students should have within their K-12 education so they graduate from high school prepared for college work and workforce training programs. According to the Initiative, the standards are aligned with college and work expectations; inbusine ssmag.com
are clear, understandable and consistent; include rigorous content and application of knowledge through high-order skills; build upon strengths and lessons of current state standards; are informed by other top performing countries so all students are prepared to succeed in our global economy and society; and are evidence-based. Also anticipating a legislative focus on learning is the Arizona Small Business Association. “I expect to see bills focused on workforce development and education,” says Jerry Bustamante, senior vice president responsible for public policy and Southern Arizona for the Arizona Small Business Association. Education is one of the organization’s five areas of focus, the others of which are economic development, taxation, regulation and healthcare. A key reason for Bustamante feeling that way is the defeat of Proposition 204 in the fall elections. If passed, the ballot measure would have made permanent a 1-cent sales tax surcharge to fund education, among other services. With its failure, the temporary sales tax imposed in 2010 will expire at the end of May. “With Proposition 204 having failed, there’s a perceived need by the education community [for the legislature] to fund education,” Bustamante says.
Business Taxes On another tax front in 2012, the legislature passed key business measures that were signed into law by Gov. Jan Brewer. They include establishing tax credits for increasing or creating new jobs in Arizona and increasing the exemption amount for the business personal property tax. By improving the Arizona tax climate, “we have a window of opportunity to attract our fair share of businesses and farms from California,” Forese says. As a result of the changes in Arizona, “I don’t expect to see as much interest in [business] tax cuts” at the legislature this session, Bustamante says. If any changes occur in business taxes, he expects it to happen at the federal level, where issues take up 10 percent J a n u a r y 2013
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McCune Davis says a group of legislators is studying the Arizona tax code, with some of the conclusions sure to have significance if they come up with solid suggestions.
of ASBA’s focus, while the remaining 90 percent of its focus is occupied at the local level. But more still can be done. McCune Davis says a group of legislators is studying the Arizona tax code, with some of the conclusions sure to have significance if they come up with solid suggestions. “We’ll be looking to see what is proposed,” she says. Work also needs to be done on the sales transaction privilege tax, Kinney says. There needs to be more uniformity between taxing jurisdictions. One of the criticisms from companies considering moving to Arizona is this state is one of the most difficult to comply with in regard to such taxes, she says. Currently, what may be subject to taxation in one jurisdiction is not the same as in other jurisdictions. And the tax rate also differs from jurisdiction to jurisdiction. “There needs to be some standardization,” Kinney says. The question also remains on how Arizona should address e-commerce regarding taxation of online sales, she says.
Licensing Processes For other business attraction, lawmakers need to continue working on streamlining permitting and licensing processes at the state and city levels so there are as few administrative processes as possible, Kinney says. Also, use of technology should be encouraged by finding ways to put more of those processes online and streamline as many of the steps as possible. Such efforts could assist such industries as construction and regulations over such concerns as air quality, Kinney says. To get the work done, it helps for lawmakers to have experience with the issues they will face. McCune Davis is returning to the Commerce Committee, as is Javan “J.D.” Mesnard, who chaired the committee in the last session. Real-life experience is also a plus, and Forese notes the
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committee includes a member who is a builder and another whose family owns a business. Nearly as critical are the partnerships that are created to get the work done. Before the new session, Forese was involved in discussions with Arizona Commerce Authority officials to study a number of potential policies. The idea is to build on the probusiness legislation in Arizona from the past two years, he says. “We have created the right environment,” Forese says. Kinney and Bustamante say their groups have worked with different committees, such as Commerce and Education, on a variety of topics affecting business. The groups join forces on an issue when needed. On a case-bycase basis, the Arizona Chamber works with other groups, Kinney says, with the goal of business expansion and retention. For example, it has been working with the ACA in an effort to have Arizona designated by the Federal Aviation Administration as one of six U.S. sites for unmanned aircraft development. Such a project offers great potential for the state in light of expected reductions in defense spending that could impact Arizona aircraft manufacturers, she says. “Some issues need legislation, so we team up,” Kinney says. “If we have a strong common interest in a bill, we’re constantly reaching out to them and offer support,” Bustamante says. With Arizona becoming the star of the region, it makes sense to boost business with neighbors California and Mexico. “We need to reach out internationally [for new business revenue opportunities],” he says, “so in 15 to 20 years we’re not looking at a social welfare nightmare [to support those who move here].” All of this work leads to creating the right environment for companies in Arizona, with supporting policies and resulting business investments, Forese says. He uses Atlanta, “the capital of the South,” as a shining example of what can happen to Arizona so that it becomes the capital of the Southwest even if the state reaches the point of 10,000 to 15,000 people moving here every month, which is predicted with the megatropolis. “We need to make policies and investments that create the right environment,” he says. Arizona Chamber of Commerce and Industry azchamber.com Arizona Small Business Association asba.com Arizona State Legislature azleg.gov
Go online for more! Visit our website for more hard-hitting cover stories.
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What Does the Legislature Do for Business? As the 51st Legislature convenes its 2013 Legislative Session this month, we look back at a few of the hundreds of bills introduced and considered by the 50th Legislature during its 2011 and 2012 legislative sessions.
Jobs and Business Creation
Business Taxes
Licensing Processes
H.B. 2272 Clinical Trial, Public Information Requests This bill expands the exemptions from public records laws of information or intellectual property developed as part of a university-related research, recognizing that universities often enter into public-private partnerships designed to produce new products. Passed and signed into law.
H.B. 2123 Transaction Privilege Tax Reform Committee This bill establishes a 13-member committee to study, make recommendations and propose legislation to revise Arizona’s tax code to broaden the TPT tax base to reflect an economy now dominated by services rather than by agriculture and manufacturing. The committee was required to submit a report to the governor and the legislature by October 31, 2012. Passed and signed into law.
H.B. 2744 Regulatory Rules; Amendments This bill modifies the statutes governing regulatory rule making, specifically eliminating the summary rule process and creating an expedited rule-making process for rules that do not increase the cost of regulatory compliance or reduce the procedural rights of regular persons and further complies with statutory criteria. Passed and signed into law.
H.B. 2680 Procurement; Arizona Bidder; Preference This bill provides that, for procurement contracts awarded by competitive sealed bid, Arizona bidders must be given preference over nonresident bidders in the case of competing offers that are identical in price. This bill did not pass. One issue with it is how to define exactly the requirements to be an “Arizona” bidder. S.B. 1442 Prime Contracting; Manufacturing Facilities; Infrastructure This bill allows state funds to be given to a local municipality to pay up to 80 percent of public infrastructure to support large-scale manufacturing projects, part of the funds to come from the share of sales tax allocated for cities and towns. Passed and signed into law.
Education H.B. 2500 Poorly Performing Schools; Intervention Strategy This bill requires schools to implement a science, technology, engineering and mathematics (STEM) intervention strategy if they are below average or failing. Passed and signed into law. H.B. 2697 Teachers; Certification; Subject Knowledge This bill exempts secondary education certificate applicants from the subject knowledge portion of the proficiency examination if the State Board of Education determines that the applicant has work experience in science, technology, engineering and mathematics (the focus of the Governor’s Statewide STEM Action Network) field and can demonstrate adequate knowledge through a post-secondary education degree or equivalent. Passed and signed into law.
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H.B. 2466 Payment; Local Sales Tax This bill directs the Department of Revenue to establish an online portal for the payment of municipal transaction privilege tax and excise tax. Passed and signed into law. H.B. 2705 Small Business Employment; Tax Rate This bill provides that owners of small businesses located in Arizona before July 2017 would be eligible for income tax rate reductions for net increases in specified “qualified employment positions.” This bill did not pass. Issues with it include how to define exactly the requirements to be a “small business” and what are “qualified employment positions.” H.B. 2815 E mployment; Incentives; Regulatory Tax Credit This bill provides several changes tax statutes in the areas of capital gains (phasing in a reduction of 25 percent by 2015), depreciation, net operating loss (extending period from 5 years to 20 years), exempt personal property (increasing from $68,000 to $125,000) and tax credits for new employment, renewable energy and qualified facilities (expanding the credits or removing the cap). It also establishes an employer-funded job training program study committee. Passed and signed into law. S.B. 1046 Corporate Tax Allocation; Sales Factor This bill allows a multistate service provider to elect to apportion service revenues to the destination of a customer, phasing in tax year 2014 to tax year 2016. Passed and signed into law.
Other Bills that Affect Business Operation H.B. 2150 Unemployment Insurance; Independent Contractor; Appeals This bill gives employers more tools and extends the deadline for them to protest the awarding of unemployment benefits to an employee they have discharged. Passed and signed into law. H.B. 2199 Environmental Audit Privilege This bill establishes a privilege for environmental audits that are conducted by a regulated organization or its independent contractor for the purpose of voluntarily determining compliance with environmental laws. Passed and signed into law. H.B. 2503 Exemptions from Punitive Damages This bill exempts a manufacturer from liability for punitive damages (the manufacturer may still be liable for compensatory damages) if the manufacturer follows federal, state or agencyissued product standards. Such measures are already in effect in other states. Passed and signed into law. H.B. 2544 Recovery of Attorney Fees This bill eliminates the requirement that a court award reasonable attorney fees in a contested action in cases where clear and convincing evidence is presented that the claim or defense constitutes harassment, is groundless and is not made in good faith. Passed and signed into law.
—RaeAnne Marsh Sources: Records of the 50th Legislature, on the Arizona State Legislature website, azleg.gov; Arizona Chamber of Commerce and Industry; and Arizona Small Business Association
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Leadership
A Path to Follow
The Strength of ‘No Blame Game’ Leadership Finger-pointing and responsibility-dodging can poison a company’s culture by Mike Staver When you arrive at the office each morning, you find yourself in a blame-free zone. Your team attacks projects proactively and with confidence. When a problem arises, everyone involved “owns it” and takes corrective action. Bob in marketing says he’s personally responsible for an event flier going to the printer late and stays late to overnight them to the client. Meanwhile, Sally in accounting emails, “The client’s invoice was wrong because of our miscalculation. We’ve called and apologized.” And so it goes with every employee, in every department … and then you wake up. Instead of facing the workday with excitement, most leaders want to crawl back under the covers from sheer dread of what actually awaits them at the office: excuse making, blame shifting and responsibility dodge ball. The underlying culprit is something they might not suspect: fear. An organization that has perfected the blame game is one where hidden fear — fear of failure, of confrontation, of difficult tasks — runs rampant. And where do these kinds of energy-draining, counterproductive cultures originate? That’s right: with the leaders. Blame-based leadership seeks to find a bad guy so that there is someone to absorb the problem, like a lightning rod absorbs a bolt of otherwise dangerous electricity. If a bad guy can be found, then everyone else can take a collective sigh of relief. And when it’s someone else’s problem, no one takes action to solve it. On the other hand, acknowledging that one is ultimately responsible for the results of one’s life, thoughts and actions creates a level of freedom not experienced by those who blame others — and it empowers that person to act. Removing fear and establishing a takeresponsibility culture begins with the leaders. But for the followers to adopt their leader’s fearless attitude, it’s imperative they understand their leaders are on their side and
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want them to win, as well as that nothing less than their highest degree of execution and performance will be acceptable. Look at the person in the mirror. A leader can’t expect followers to change their attitudes while he stays mired in the old blame-based thinking. That’s why Step One in creating an excuse-free company culture is for the leader to take a good, hard look at his own tendency to blame others and at the underlying fear driving it. A few common culprits include fear of failure, fear of being underprepared, fear of confrontation, fear of risk, fear of being wrong and fear of being unpopular. Once those fears have been identified, the leader needs to figure out which behaviors to change in order to set a better example. And if (actually, when) the leader screws up, he should set a good example and “own it.” Overall, the rewards of being a fearless leader will far outweigh the consequences. Get real about how one’s organization handles mistakes. What happens when someone on a team screws up or takes a risk that doesn’t pay off? If the answer is that a leader swoops in to mete out swift and certain punishment to the offending employee, two things will happen: 1) The blame game will flourish (after all, no one wants to be the fall guy when something goes wrong) and 2) most people will shy away from taking any risks at all in the future.
Risk being part of the process for an organization to grow instead of stagnate, mistakes must be handled in a constructive way. Instead of using negative pressure, the leader should help people work through any kinks while keeping the focus on performance and growth. And acknowledge progress with full and complete focus on the success of what is right here, right now. Preach the “choose or lose” gospel. It’s when employees feel powerless that they toe the company line, mindlessly follow orders or simply choose to do nothing. Leaders need to make employees understand they always have a choice. Big, small; to act, to not act — all choices matter. It’s important to make sure everyone in an organization considers the full range of options, even those that might seem impractical or illogical at first glance. After all, once a person realizes he has choices, it’s a lot harder for him to blame others for his actions, or lack thereof. It’s not feasible to talk with every employee every day, but this attitude can be reiterated from time to time through, for example, an email to the entire organization that reads, “Ask yourself, ‘What’s the most important choice I’ll make at work today? What do I hope to achieve?’” Doing so will, in time, hardwire this type of careful consideration into the company’s culture. inbusine ssmag.com
Books Set crystal clear goals with deadlines. People like to know what’s expected of them; it’s the best remedy for fear. That’s why it’s critical to make sure everyone in the organization, including the owner or CEO, has specific, measurable, achievable, relevant and timed goals. It’s also beneficial for each person at a meeting, including the person in charge, to write down his or her individual goal and state them aloud. This helps remove all ambiguity and can make an amazing difference. Get people thinking in terms of solutions, not problems. “If can’t wasn’t an option, what would you do?” “If you can’t blame Bob for not shipping the flier, what can you do?” and, “If ‘I was too busy to meet the deadline’ isn’t a valid excuse, what’s the solution?” are questions that encourage a solution focus. When everyone brings a solutions-oriented attitude to the table, the entire culture improves and everyone is driven by results. Dissect outcomes in a “no excuses” moratorium. The purest kind of responsibility-based conversation includes clear expectations followed by excuse-less discussion of results. Questions that can help people (at all levels, including top management) learn to accept responsibility for their performance include “What did you do or not do that led to these results?” “If you could turn back the clock, what would you do more or less of?” and “Of the things you controlled, which do you think contributed to this success/failure?” Partner up. Pairing people up in “accountability teams” that get together twice a month to talk about their goals and their progress can really increase the amount of responsibility everyone feels. This idea started years ago when my brother Corey and I got together for dinner and began talking about our frustration with the lack of progress we were experiencing in our jobs. We started getting together for dinner once a week and simply asking each other questions about the goals we had set the previous week. The meetings were not designed to make us feel bad or to catch each other failing, but rather to get us to adopt mindsets of execution and performance. The first few weeks, we saw some minor progress. Over time, our questioning skills sharpened and, with each passing week, the questions we asked were tougher. Consequently, our accomplishments became bigger and quicker-paced. Since then, I’ve encouraged the use of this partner system in many organizations, and it’s always a huge success. The destructive thing about fear is that it keeps us from taking the quick, decisive actions courageous leadership requires — and the global economy demands. For a team to accomplish what they need to accomplish and learn to accept responsibility requires a leader who is courageous enough to ask — and ask often — big, clear, direct questions delivered in an I-want-you-to-win tone. Results will improve over time as employees get used to thinking about their own roles within the organization, and how their choices and attitudes impact the big picture. The Staver Group thestavergroup.com
Mike Staver — whose latest book, Leadership Isn’t for Cowards, explores other symptoms of hidden fear besides blaming — is CEO of professional development consulting company The Staver Group and a certified speaking professional, a designation held by fewer than 10 percent of professional speakers. His educational background — a bachelor’s in business and a master’s in psychology — has led to a focus on the vital importance of results and a deep understanding of the behaviors that lead to both self-sabotage and success.
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Changing Business
Conscious Capitalism: Liberating the Heroic Spirit of Business Whole Foods Market co-founder John Mackey and professor and Conscious Capitalism, Inc. co-founder Rajendra Sisodia argue for the inherent good of both business and capitalism. Looking at some of today’s best-known companies, they illustrate how these two forces can — and do — work most powerfully to create value for all stakeholders in business today: customers, employees, suppliers, investors, society and the environment. John Mackey and Rajendra Sisodia $27 Harvard Business Review Press January 2013
The Future: Six Drivers of Global Change Ours is a time of revolutionary change that has no precedent in history. With the same passion he brought to the challenge of climate change, and with his decades of experience on the front lines of global policy, Al Gore surveys our planet’s beclouded horizon and offers a sober, learned and, ultimately, hopeful forecast in the visionary tradition of Alvin Toffler’s Future Shock and John Naisbitt’s Megatrends. In The Future, Gore identifies the emerging forces that are reshaping our world and its economies. Al Gore $30 Random House Publishing Group January 2013
What’s the Future of Business: Changing the Way Businesses Create Experiences What’s the Future of Business? will galvanize a new movement that aligns the tenets of user experience with the vision of innovative leadership to improve business performance, engagement and relationships for a new generation of consumerism. It provides an overview of real-world experiences versus “user” experiences in relation to products, services, mobile, social media and commerce, among others. This book explains why experience is everything and how the future of business will come down to shared experiences. Brian Solis $29.95 John Wiley & Sons, Inc. March 2013
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NonProfit
by RaeAnne Marsh
Actions to build Community
Fresh Start Women’s Foundation: High Fashion for Self-sufficiency Fresh Start Women’s Foundation brings Phoenix some of the glamour and excitement of New York’s Fashion Week with its annual Fashion Gala fundraiser, this year’s event on February 2 at the Arizona Biltmore Resort and Spa with Pamella Roland the featured designer. Roland will premiere her spring collection that she’ll be showing in New York. The gala’s attendees “see designers who normally don’t make it to Phoenix,” says Susan Berman, Fresh Start’s executive director. Pat Petznick, one of the organization’s founders, is connected in the fashion world, and it’s through her personal contacts that Fresh Start secures the name designers, Berman explains. Club Jewell — a DJ-hosted dance party — will follow the fashion show. Expecting between 800 and 900 guests again this year, Fresh Start grosses about $1.2 million at this fundraiser — a hefty 30 percent of its annual budget for offering a comprehensive service delivery to help empower women to become selfsufficient. Nearly half of the 6,500 women the organization serves each year are victims of domestic violence, and almost one-fifth are homeless or have experienced homelessness. “They’re reaching out to make a better life for themselves and their children,” Berman says. Fresh Start Women’s Foundation phoenix.wehelpwomen.com
Snapshot
■■ Founded in 1982, Fresh
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Start Women’s Foundation provides programs that include workshops to help in preparing to look for a job (job readiness, skills development and more), financial fitness topics and self-esteem (yoga and nutrition, among others). Wardrobing assistance includes an actual shopping outing for appropriate clothing and accessories. Assistance also includes job fairs, health fairs, legal seminars, computer and ESL classes, a robust mentoring program tailoring a 12- to 18-month mentorship to the individual’s specific needs, and scholarships for shortterm certificates as well as help toward a degree program.
■■ Fresh Start operates Treasures, a second-hand boutique, to not only ■■ ■■
generate revenue but to offer on-the-job training. “We try to give as many transferrable skills as possible,” says Berman. An on-site day-care facility is available, for infants through 12 years old, to clients while on-site using the services. A full-time staff of 27 is augmented by several hundred carefully vetted volunteers who include experienced career and technology coaches and experts who present the workshops.
Snapshot
■■ Founded in 1955, Big Brothers Big ■■ ■■ ■■ ■■
Sisters of Central Arizona serves about 2,000 children each year. The majority of children in the program are boys and come from single-parent homes with the mother as head of the household. Enrollment in the program starts with the organization interviewing the parents and child. “The child must want to be in the program,” emphasizes Laura Capello, president and CEO. Volunteers, after passing a background check, are matched with their “Little” based on shared interests, fulfilling a need (math skills, to help a child struggling with math, for instance) and living within a short range of the child’s home. Says Capello, “They’re making friendships, so we want to make sure they have things in common.” Of the 42 employees on staff, the majority are trained social workers. These professionals — match support specialists — oversee the matches and offer support to both sides. In addition, there is a child safety expert who oversees the program.
Save the Date: Returning this year to its earlier fundraising model, Big Brothers Big Sisters of Central Arizona will host a community breakfast on April 18 from 7:30 a.m. to 9 a.m. at the Arizona Biltmore Resort & Spa. “It’s a great way to talk to individuals and share with them what we do and how they can help,” says Laura Capello, president and CEO. The morning’s program will mainly be presentations from people the organization supports: “Littles” will share how the BBBS program has helped them, “Bigs” will share what it’s like to have that role in a young person’s life, and parents of the “Littles” will share how the BBBS program has helped their family. Attendance is free, but Capello says the hope is attendees “will be moved to give.” Phoenix Mayor Greg Stanton, whose Little Brother graduated from college last year and is expected to attend with Mayor Stanton, is the honorary chairman of this year’s event. Although “Littles” officially age out of the program when they turn 18, “they can continue [their relationship with their ‘Big’], but as adults,” Capello explains. Big Brothers Big Sisters of Central Arizona bbbsaz.org
In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.
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Photos courtesy of Fresh Start Women’s Foundation (top), Big Brothers Big Sisters of Central Arizona (bottom)
Big Brothers Big Sisters: Making Friendships to Make a Difference
www.inbusinessmag.com
January 2013
O n t h e Ag e n D a
A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.
Arizona Small Business Association
Peoria’s Economic Development Services Department
Small Business Outlook 2013
NxLevel for Entrepreneurs
Photo courtesy of Xxxxxxx
Thurs., Jan. 17 — 7:30a – 10:00a Public policy, transaction privilege tax (Arizona’s version of sales tax) reform, healthcare and access to capital — as these topics relate to small business — are on the agenda for ASBA’s Small Business Outlook 2013 at The Phoenician on Jan. 17. Jerry Bustamante, ASBA vice president of public policy, will start the program with a general overview of what’s anticipated for this year. Michael Hunter, director of legislative affairs and special advisor on tax policy and reform in the governor’s office, will follow, speaking specifically to the transaction privilege tax reform issues. Addressing what’s going on in healthcare, with the new Health Exchange and related issues for 2013, will be Don Hughes, policy advisor for healthcare in the governor’s office, and, looking at the corporate side, a representative from Cigna. Craig Jordan, lender relations specialist with the Arizona District Office of the Small Business Administration, will talk about what small businesses can expect regarding lending and access to capital. KTAR’s Karie Dozer, of the current events-focused Karie & Chuck show, will moderate this one-hour Small Business Forum, which is scheduled to start at 9:00 a.m. Preceding the Small Business Forum, the event will include networking opportunity and, at 8:00 a.m., ASBA’s annual meeting and awards. ASBA will honor a Volunteer of the Year, for contribution of time and talent to the organization, for the northern and southern regions. Awards will also be presented for Board Member of the Year, Staff Person of the Year, Corporate Partner of the Year and Community Partner of the Year. Filling out the morning will be a mini Benefits Fair for about an hour following the Forum, at 10:00 a.m., with about a dozen ASBA partners such as Wist Office Supplies as exhibitors. The event generally draws 400 to 500 attendees. Cost to attend is $35 for ASBA members and $50 for non-members. —RaeAnne Marsh Arizona Small Business Association asba.com/events
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Wednesdays, Jan. 9 – March 27 — 4:00p – 7:00p Focused on helping entrepreneurs — those already in business and those planning to start a business — the Peoria Economic Development Services Department is partnering with Maricopa Community Colleges Small Business Development Center to present an intensive, 12-week entrepreneurial businesses training program. Peoria’s business development specialist Debbie Pearson emphasizes this is not just for Peoria businesses. “Any small business is welcome,” she says. “We take a regional approach. We’re all in this together.” Topics will be presented by an expert in the given area, and course attendees will have time in class to work one-on-one with the instructor. Debra Roubik, an economic analyst who consults for business through her company, VisionEcon, and who is a business analyst for the Maricopa Community Colleges SBDC, will facilitate the course. The course will start with a program overview and the reality of operating a small business, followed by “What Is Your Target Market? Is There a Need, Problem or Desire?” (session 2); “Marketing — Your Unique Value Proposition and Your Competition and Marketing Strategy” (session 3); “Protecting the Company — Legal, Tax & Insurance” (session 4); “Books, Records & Controls” (session 5); “Managing Money — Planning, Budgets & Assumptions” (session 6); “The
Costs of Growth: Hiring Employees and Other Costs” (session 7); “Organizational Matters: Products & Facilities” (session 8); “Putting the Final Touches on Your Plan” (session 9; “Financing Your Business — Alternative Sources” (session 10); “Finding Success” (session 11); and “Your Future — Graduation” (session 12), which will include a formal graduation ceremony with participation by all sponsors. At the completion of the class, participants will have a completed business plan. The fee of $150 covers class materials and will give participants three course credits at Maricopa Community Colleges. Classes will meet at the Point of View Room in Peoria’s Development & Community Services Building at 9875 N. 85th Avenue. Enrollment is limited to 30 due to the intensive, one-onone nature of the course. To register, email debra.roubik@domail.maricopa.edu. The City of Peoria ramped up its smallbusiness programs in 2009, early in the economic downslide, recognizing that 97 percent of Arizona business is small business, notes Pearson. Its Economic Development Services offers many seminars and job fairs. Most are free and not limited in seating. —RaeAnne Marsh Maricopa Community Colleges Small Business Development Center maricopa-sbdc.com/AZSBDC Peoria Economic Development Services peoriaed.com
Notable Dates This Month Tue., Jan. 1 New Year’s Day Mon., Jan. 21 Martin Luther King Jr. Day Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.
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O n t h e Ag e n d a ARIZONA CHAMBER OF COMMERCE & INDUSTRY Arizona Legislative Forecast Luncheon Fri., Jan. 11 Noon – 1:30p
Featuring State Senate and House leadership and welcome remarks delivered by The Honorable Janice K. Brewer, Governor of Arizona. Members: $65; non-members: $80 Phoenix Convention Center - North Building 100 N. 3rd St., Phoenix azchamber.com
ARIZONA HISPANIC CHAMBER OF COMMERCE Healthcare Reform: Health Insurance in 2013 & Beyond Thurs., Jan. 17 8:00a – 10:00a
Get insight into how the Patient Protection and Affordable Care Act’s upcoming deadlines are changing business in Arizona. Speakers: Ruthann Laswick, Blue Water Benefits Consulting, and Chuck Bassett, Blue Cross Blue Shield of Arizona. Free Blue Cross Blue Shield of Arizona 2525 W. Townley Ave., Phoenix (602) 279-1800
ARIZONA SMALL BUSINESS ASSOCIATION Creating Your Effective Networking Commercial Tues., Jan. 8 2:00p – 3:00p
Get tips to develop an effective 30-second networking commercial in this hand-on workshop. Members: free; non-members: $10 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events
Small Business Outlook 2013 Thurs., Jan. 17 7:30a – 10:00a
Annual Meeting, Volunteer Celebration and Small Business Forum. Members: $35; non-members: $50 The Phoenician 6000 E. Camelback Rd., Scottsdale asba.com/events (See article on page 33.)
January 2013
Members: $15; non-members: $30 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events
ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: The New U – How User Experience is the New Foundation for Thinking Digital Tues., Jan. 15 11:30a – 1:00p
User Experience (UX) is the latest marketing tool to use in web design and strategic marketing. This session is presented by Otter Marketing. Members: free; non-members: $15. Lunch is provided. Eller College of Management 16425 N. Pima Rd., Scottsdale aztechcouncil.org
2013 Phoenix Golf Tournament Thurs., Jan. 24 7:00a – 2:00p
Fourth annual tournament will be followed by lunch and awards presentation, including a longest drive contest. Presented by Suntron Corp. Members: $125; non-members: $150 StoneCreek Golf Club 4435 E. Paradise Village Pkwy. S., Phoenix aztechcouncil.org
ASSOCIATION FOR CORPORATE GROWTH — ARIZONA Breakfast
Tues., Jan. 8 7:30a – 9:00a
Speaker: Erik Olsson. Members and sponsors: $49; nonmembers: $69; at the door: add $10. Arizona Biltmore Resort & Spa 2400 E. Missouri, Phoenix acg.org
GREATER PHOENIX CHAMBER OF COMMERCE Professional Women’s Roundtable: Tues., Jan. 8 11:00a – 1:00p
“Strategies for Success in Business and Life.” Speaker: Christine Aguilera, president of SkyMall. Free to attend. Lunch: $15 for members, $25 for non-members Phoenix Children’s Hospital-Mel Cohen Center 1919 E. Thomas Rd., Phoenix phoenixchamber.com
Valley Young Professionals: President and CEO Panel Wed., Jan. 16 7:30a – 9:00a
Panelists are Amber Cox, president of the Phoenix Mercury; Avein Saaty-Tafoya, CEO of Adelante Healthcare; Matthew Clyde, president and founder of Ideas Collide Marketing Communications; and Tom Hatten, president and founder of Mountainside Fitness. Members: free; non-members: $20 Arizona Community Foundation 2201 E. Camelback Rd., Phoenix phoenixchamber.com
Breakfast
“Business Models vs. Business PlansInnovating and Simplifying the Business Plan Process” presented by Benson Garner, venture manager and innovation consultant with ASU Venture Catalysts. Free Greater Phoenix Chamber of Commerce 201 N. Central Ave., Phoenix phoenixchamber.com
Mon., Jan. 14 7:30a – 9:00a
Speaker: Diane Brossart, president and CEO of Arizona Forward, formerly Valley Forward. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
ECONOMIC CLUB OF PHOENIX
The ASBA Business Mentoring Team leads a highly interactive workshop on what the sustainability advantage is, how to build a sustainable organization, and what the benefits are of becoming sustainable.
Speaker: Derrick Hall, president and CEO of the Arizona Diamondbacks. $75; advance registration required Camelback Golf Club 7847 N. Mockingbird Ln., Scottsdale econclubphx.org
J a n u a r y 2013
Participants will examine both the art and the science of “getting things done.” Presented by Steven Brown, a senior lecturer of supply chain management in the W. P. Carey School of Business at ASU. $550 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale wpcarey.asu.edu/professionaldevelopment/index.cfm
CENTRAL PHOENIX WOMEN
The Sustainable Business Advantage
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Fri., Jan. 25 8:00a - noon
Small Business Leadership Council
Luncheon
Thurs., Jan. 24 8:00a – 11:30a
Leadership Development Workshop: Project Leadership
Wed., Jan. 23 11:30a – 1:30p
Thurs., Jan. 17 7:30a – 8:15a
MESA CHAMBER OF COMMERCE Strategic Business Seminar Series — with The Growth Coach Begins Thurs., Jan. 17 7:30a – 9:00a
This workshop series is designed for business owners, executives and professionals. Future dates are Thursdays, Feb. 28, April 11, May 23, July 11, Aug. 15, Sept. 26, and Nov. 19. Must commit to all eight sessions.
Members: $185; non-members: $285 Mesa Chamber of Commerce 40 N. Center St., Mesa mesachamber.org
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO University Wed., Jan. 9 9:30a – 11:00a
“Simple is the New Brilliant: Creating a Clear Plan for Success”; speaker is Mary Cravets. Members: free; non-members: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
Networking Luncheon Wed., Jan. 9 10:45a – 1:00p
“Do You Have a Winning Team?”; speaker is Nikolee Turner of Kolbe Corp. Members: $38; non-members: $48 additional $15 after Jan. 4 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
PEORIA CHAMBER OF COMMERCE Mayor’s ‘State of the City’ Luncheon Wed., Jan. 9 11:00a – 1:30p
Members: $25; non-members: $30 Arizona Broadway Theater 7701 W. Paradise Ln., Peoria peoriachamber.com
SCOTTSDALE AREA CHAMBER OF COMMERCE Scottsdale Celebrates MLK Jr., Living the Dream Tues., Jan. 15 Begins at 5:30p
Dinner and recognition to celebrate the legacy of Martin Luther King, Jr., featuring guest speaker Steve Pemberton, chief diversity officer of Walgreens. $60 Chaparral Suites Resort 5001 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
SOUTHWEST VALLEY CHAMBER OF COMMERCE Cash Mob
Tues., Jan. 22 Starts at 4:00p
Meet at the Chamber office and, as a Mob, travel to a local Chamber business to shop. From there, our Cash Mob will travel down the road to a Chamber member’s restaurant for Happy Hour. Free Southwest Valley Chamber of Commerce 289 N. Litchfield Rd., Goodyear Danielle, (623) 932-2260
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Please confirm, as dates & times are subject to change.
SURPRISE REGIONAL CHAMBER OF COMMERCE
Women in Business Leadership Speaker Series Fri., Jan. 25 8:00a – 9:30a
Business Education Seminar Fri., Jan. 25 8:30a – 10:00a
Includes continental breakfast. Presenter: Tom Trush. Free; prior registration required Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise Mary Orta, (623) 583-0692
“Capturing the Elusive Balance” presented by business attorney Joan Jakel. Members and students: $20; nonmembers, $30 Homewood Suites by Hilton 4750 E. Cotton Center Blvd., Phoenix Sachiyo Ragsdale, (480) 967-7891
TEMPE CHAMBER OF COMMERCE
WEST VALLEY WOMEN
Women in Business Leadership Speaker Series
‘Spotlight our Members’ Luncheon Tues., Jan. 8 11:30a – 1:00p
Fri., Jan. 18 8:00a – 9:30a
“Be Me 365” presented by Jackie Thompson, skilled community affairs manager for Souhtwest Airlines. This session will encourage attendees to envision their personal and professional goals and design a plan to accomplish them beyond the obvious. Members and students: $20; nonmembers, $30 Homewood Suites by Hilton 4750 E. Cotton Center Blvd., Phoenix Sachiyo Ragsdale, (480) 967-7891
$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org
WESTMARC
WOMEN OF SCOTTSDALE Luncheon
Fri., Jan. 18 11:30a – 1:00p
$35 The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS Retail: It’s a New Reality Tues., Jan. 8 8:00a – 1:15p
Presented by the Arizona Association for Economic Development and the International Council of Shopping Centers. Members: $60; non-members: $70 Phoenix Country Club 2901 N. 7th St., Phoenix (602) 240-2233
business more successfully and you can even earn college credits. Course runs Wednesdays through March 27. $150 Development & Community Services Building, Point of View Room 9875 N. 85th Ave., Peoria debbie.pearson@peoriaaz.gov (See article on page 33.)
World Trade Forum V Fri., Jan. 18 8:00a – 10:00a
Speakers on Arizona-based international growth. Presented by Snell & Wilmer. Free ASU SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg/upcomingevents
NxLevel Entrepreneurship Course
Luncheon with Governor Brewer Thurs., Jan. 17 11:30a – 1:00p
Members: $60; non-members: $75 Glendale Civic Center 5750 W. Glenn Dr., Glendale westmarc.org
Begins Wed., Jan. 9 4:00p – 7:00p
City of Peoria offers this 12-week, intensive, hands-on business course for the business owner who has been in business for at least one year. You will learn all aspects of how to run your
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Email the information to: events@inbusinessmag.com.
Cross-training for your business
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Your company deserves to be fit. Performance Marketing: Print. Online. Email. Social Media. Events. (480) 588-9505 i n bIBM_Website_Ad.indd u s i n e s s m a g . c1o m
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info@inbusinessmag.com 10:16 AM35 J a n u11/26/12 a r y 2013
ASSETS
by Mike Hunter
We Value What We Own
Luxury SUV: Infiniti QX56 Not like your father’s sports utility vehicle, the Infiniti QX56 was designed to impress visually and mechanically and emphasizes comfort to an extent not seen before in this class. The engine is a 5.6-liter Direct Injection Gasoline V8 with 32 valves and a sophisticated valve control that slightly enhances fuel economy. Going from zero to 60 mph in nearly seven seconds, its gas mileage is an improvement over past editions, but it matches the range of other SUVs in this class with 14 mpg city and 20 mph highway. The 400-horsepower engine is responsive and boasts 413 lb-ft of torque, offering the driver dependable acceleration. The Infiniti All-Mode 4WD tunes torque between the front and rear wheels, keeping traction control manageable, and emphasizes the “utility” in this SUV. In comparison to other luxury SUVs, the Infiniti stands out. The cabin is ultra luxurious, with comfort reminiscent of a first-class cabin aboard an international airline flight. Plush leather seats, heated or optional cooled, maximize the occupant’s climate desires with multiple power adjustments to optimize position. Top-notch entertainment enhances the ride with a Bose Premium audio system that includes 13 speakers and two subwoofers. Stream music from a Bluetooth device, enjoy SiriusXM satellite radio or connect through the USB port with an ability to upload content to hold on the in-dash hard drive. The high-resolution touch screen Infiniti Hard Drive Navigation System features Infiniti Voice Recognition NavTraffic, weather updates and access to the Zagat Survey Restaurant Guide. The 2013 model introduces the first Around View Monitor, which provides a 360-degree view through four cameras strategically located on the vehicle. This feature makes parking a cinch and enhances the driver’s view of surroundings Infiniti QX56 when positioning the car to change lanes or fitting into any tight situations. City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 sec Transmission. . . . . . . . . . . . . . . . . 7-speed Automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,650
Of Course Making the 18 holes count means mixing business with pleasure. Meetings on the greens are most effective at a course that embraces the players’ needs. Here are our picks for the top courses to make that business foursome a success.
Quintero — Peoria
This 18-hole, Rees Jones-designed course is consistently ranked as a top course worldwide. Pristine views, immaculate greens and a clubhouse that is comparable to the world’s best is why Quintero is a must for that special golf/business outing. 16752 W. Carefree Hwy., Peoria (928) 501-1500 quinterogolf.com
Troon North — Scottsdale
Located in North Scottsdale, this awardwinning club has two challenging courses (Pinnacle and Monument), a full-service clubhouse, restaurant and pro shop, set among beautiful granite boulders. 10320 E. Dynamite Blvd., Scottsdale (480) 585-7700 troonnorthgolf.com
Wildfire Golf Club — Phoenix
More central than our other picks, this property has it all. With two courses (Faldo Championship and Palmer Signature), Wildfire is considered one of the most challenging places to play in Arizona and offers world-class services, instruction and amenities. Part of JW Marriott Desert Ridge, this spot will satisfy a player’s every need. 5350 Marriott Dr., Phoenix (480) 293-3800 bitly.com/wildfire-golf-club
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Photos courtesy of Infiniti (left), Troon North (right)
Troon North
COMMERCIAL REAL ESTATE LOANS
Your passion is what builds communities. Now’s an excellent time to purchase or refinance commercial property. With a Commercial Real Estate Loan from BBVA Compass, you’ll enjoy: • Low fixed rates for the entire term • No balloon payments • 80% LTV for owner-occupied property; up to 95% LTV with SBA financing Act now and save with these limited-time offers: • Up to $5,000 off closing costs on loans $1 million and up • Up to $1,000 off closing costs on loans under $1 million Plus, you can trust the commercial lending experts at BBVA Compass to make your loan experience simple and easy. Offer expires December 31, 2012. For more information, or to apply, visit any of our 46 branches in Phoenix. 1-800-COMPASS • bbvacompass.com
Application must be received between 09/20/2012 and 12/31/2012 and loan must be booked by 03/31/2013 to be eligible for this special offer. All loans subject to eligibility, collateral and underwriting requirements, and approval, including credit approval. Special closing costs offer available for a limited time only on qualifying commercial real estate loan applications received and booked within the specified offer dates. Up to $5,000 off closing costs on loans $1 million to $5 million; up to $1,000 off closing costs on loans under $1 million. Your actual closing costs discount may vary based on several factors. Offer applies to qualified types of owner-occupied commercial real estate and qualified borrowers. Offer not valid in conjunction with any other discount or offer. Customer is responsible for any closing costs and fees outside of any special promotions and reimbursement of any third party costs if loan is paid off within 36 months of loan closing. All promotions and offers subject to change without notice. Please contact a BBVA Compass banker for details. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. #1027
Power Lunch
by Mike Hunter
Meals that matter
Best of 2012 Reminiscing on top business lunch spots, here are our reminders of some of the best lunch spots that opened in 2012.
Blue Hound Kitchen & Cocktails
Described as a contemporary American gastrolounge, this “off the lobby” eatery at the Palomar Hotel is a downtown urban delight with a creative and flavorful menu. Go back after the day and enjoy the hand-crafted cocktails. 2 E. Jefferson St., Phoenix (602) 258-0231 bluehoundkitchen.com
Chick Rotisserie & Wine Bar
Known worldwide for his culinary creations and restaurant concepts, Christopher Gross offers up an eventful meal in an urban contemporary atmosphere that will please anyone looking to enjoy the perfect lunch. Located in the Biltmore Fashion Park at 24th Street and Camelback, this upscale/casual daytime eatery (also open for dinner and late-night noshing) is a culinary masterpiece. Graze at the bar overlooking the exhibition kitchen, watching Gross and his well-trained counterparts at work. Wood-oven pizzas, which rival pizza creations anywhere in town and beyond, are a specialty and a popular item at lunchtime. Named one of the best hamburgers in town, Gross’s gourmet burger is made of the finest beef and can be topped with any of Gruyère, Mimolette, cheddar or blue cheeses; mushrooms; shallots; egg; or bacon. Try the foie gras or lobster on a burger for a delectable indulgence that will please any palate. Sides will add to this lunch event with Mac ’N Cheese au Gratin with Ham, any number of special fries, among which are Pommes Frites, Truffled Frites, Yam Frites or the Mixed Frites. Salads are concocted with flavor using house-smoked salmon, poached pears, roasted fennel and gourmet cheeses. Simple and contemporary come together in the décor, with bursts of orange and the use of glass and textured wood, making Christopher’s Restaurant a memorable spot at which to dine for lunch. The patio is open, allowing diners to enjoy the hustle and bustle of the park-like walks at this Biltmore shopping hot spot. Three private dining rooms are available as well for intimate gatherings among business associates or colleagues.
Italian Restaurant
From antipasti to salads and sandwiches to savor y pasta dishes, Chris Bianco’s Italian eatery is a downtown culinary hot spot that is all about authentic flavors and sophisticated creations from one of the Valley’s premiere chefs. 4743 N. 20th St., Phoenix (602) 368-3273 pizzeriabianco.com Blue Hound Kitchen & Cocktails
Christopher’s Restaurant and Crush Lounge 2502 E. Camelback Rd., Phoenix (602) 522-2344 christophersaz.com
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Photo courtesy of Christopher Gross (left), Blue Hound Kitchen & Cocktails courtesy of (right)
Christopher’s Restaurant: A Midday Gourmet Meal
American rotisserie comfort food means spitfired roasted chicken and some great side dishes that will fill up even the most discriminating diner. Also attracting the lunch crowd are rotisserie pork, ribs, duck, brisket and prime rib. Enjoy with salads and sides. 3943 E. Camelback Rd., Phoenix (602) 396-4690 chickrotisseriebar.com
scottsdalechamber.com
MEMBER COMMUNIQUÉ Sterlings Honor Excellence Sterling - just the name alone signifies excellence, elegance and quality, and in the case of the Scottsdale Area Chamber of Commerce’s 27th annual Sterling Awards, nothing could be more appropriate. The Sterling Awards say a great deal about the fine companies who participate in this juried competition, but they also say a great deal about the organization that sponsors this event annually. Much like the chamber’s values Rick Kidder of Excellence, Stewardship, Integrity, Vision, Inclusiveness and Courage that are the touchstones against which we operate, we see those same values reflected in our Sterling Award finalists this year. The finalists and winning companies demonstrate excellence in every way, and the Chamber created those awards more than two decades ago to honor that excellence. We are emerging tentatively from challenging times for the business community, but our 12 finalists share an incredible optimism, a proven track record of success and a sense of purpose that transcends economic uncertainty. We all can learn powerful lessons from these great companies. The Sterling Awards are presented annually in four categories - Nonprofit, Micro-Business, Mid-Sized Business and Big Business. It is important to note that the selections for these awards are not made by Chamber staff, but rather through a juried process of our members, many of whom are past award winners themselves. Volunteers commit a tremendous amount of time in the Sterling process, and their hard work shows. While it may sound trite, simply being nominated as a finalist is truly an honor. There is something special about being honored by one’s own, and one of the main reasons that the Sterling Awards are so special is that the application process is challenging and the competition among many fine companies is so strong. No company, regardless of category, can win a Sterling Award without demonstrating excellence at every level or without exhibiting a strong commitment to business and community success. The Sterling Awards each year live up to their name because the fine companies themselves are such sterling examples! Thank you as always for your support for the Scottsdale Area Chamber of Commerce.
January 2013 - April 2013
27th Annual Sterling Awards The Scottsdale Chamber’s Sterling Awards are one of the most sought after business awards in the Valley, with a rigorous application, judging and selection process. Each year, twelve finalists represent the very best in Scottsdale business through dedication, innovation, and community service. These businesses are all at the top of their game, leading by example and inspiring other businesses to strive for excellence. As the Chamber’s marquee event, the Sterling Awards program embodies the spirit of our organization by celebrating the people and businesses that make Scottsdale a great place to live, work and play. Over the past 27 years we have honored our city’s best corporate neighbors and brightest rising stars. The Scottsdale Area Chamber of Commerce announced the winners of the 27th Annual Sterling Awards before a capacity crowd on Tuesday, November 13th, 2012 at the Chaparral Suites Resort Scottsdale. The Sterling Awards were emceed by Scottsdale Chamber President and CEO Rick Kidder.
Rick Kidder, President/CEO
Scottsdale@WOrk - 1
Non-Profit Award presented by APS
Honoree: STARS The Sterling Award for Non-Profit recognizes a charitable organization contributing to the social, cultural and educational well-being of its constituents. (501C3)
STARS STARS was founded in 1973 by a group of Scottsdale parents seeking social, developmental and vocational opportunities for their adult children. Formerly known as the Scottsdale Foundation for the Handicapped, STARS has been providing services for individuals with autism, Down syndrome, cerebral palsy, seizure disorders, traumatic brain injuries and a wide array of other cognitive and developmental disabilities. Today, STARS serves teens and adults and our reach extends beyond Scottsdale as we serve individuals from the neighboring communities of Fountain Hills, Tempe, Mesa, Gilbert, Chandler and East Phoenix. Throughout our 40 year history, STARS has strived to provide lifelong opportunities and support for those we serve and their families. By providing a variety of integrated services, STARS’ participants have access to tools and resources which match their abilities, interests, and personal goals. STARS’ goal is to ensure 100% of participants are connected to the most appropriate services in order to meet his or her goals. STARS also provides monthly community workshops on a variety of topics relating to disabilities including benefits, financial and legal planning, housing options, job/work force development programs, and advocacy. STARS offers services at two locations in Scottsdale; the Osborn Campus and at the Cholla Special Needs Community Campus in north Scottsdale. Virginia Korte STARS www.starsaz.org (480) 994-5704
Finalists: National MS Society, Arizona Chapter The Arizona Chapter of the National MS Society is part of a collective of passionate individuals who want to do something about MS now—to move together toward a world free of multiple sclerosis. MS stops people from moving. We exist to make sure it doesn’t. We help each person address the challenges of living with MS by funding cutting-edge research, driving change through advocacy, facilitating professional education, and providing programs and services that help people with MS and their families move their lives forward. We are moving research forward by relentlessly pursuing prevention, treatment and cure. We are moving to reach out and respond to individuals, families and communities living with multiple sclerosis. We are moving politicians and legislation to champion the needs of people with MS through activism, advocacy and influence. We are moving to mobilize the millions of people who want to do something about MS now. Jim Elfline National MS Society, Arizona Chapter www.nationalmssociety.org/chapters/AZA/index.aspx (480) 455-3961
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Scottsdale Charros Formed in 1961, the Scottsdale Charros are an all-volunteer group of business and civic leaders dedicated to providing support and funding for youth programs, educational scholarships and grants to local charities. With a history of innovative fundraising, the Charros have leveraged spring training baseball as a chief economic driver in Scottsdale. Funds raised through the sale of advertising and tickets to the Charro Lodge & Pavilion at Scottsdale Stadium are donated back to local charities making the Charros one of the community’s largest philanthropic contributors. Margaret Leichtfuss Scottsdale Charros www.charrofoundation.org (480) 990-2977
Micro Business Award Presented by Epcor Water
Honoree: Amplify U The Sterling Award for Micro Business recognizes an emerging business exhibiting success through innovation, creativity and collaboration. (1-6 Employees)
Amplify U Amplify U is a personal and professional leadership development training company based in Scottsdale, Arizona. They provide powerful, experiential two-and-a-half day leadership training that improve the lives of their students. Their training provides sustainable and lasting results that their students can utilize for the long-term. To achieve mastery, students complete a series of three weekend classes: 101, 202 and 303. These classes give individuals and businesses the opportunity to gain more confidence, enthusiasm, passion, clarity, purpose and focus through a series of processes that the students are led through. Alumni explain their experience as “life-changing” and “one of the best weekends of their entire life,” time and time again; because of the tools and confidence they gain in becoming better leaders in their workplace, in their home life and in their community. Amplify U trainers deliver the programming with a commitment to giving their best every weekend to their students and their support team is committed to providing a five-star customer experience throughout the process. Students also have the opportunity to gain additional support through on-going coaching, and opportunities to return to Amplify U for additional classes and graduations that they can take advantage of as a guest. Jodi Low Amplify U www.amplify-u.com (480) 278-7200
Finalists: Breslau Insurance & Benefits, Inc.
Pro One Media Productions
Breslau Insurance & Benefits, Inc. is a Life & Health agency providing medical, dental, disability, and life insurance to employer groups as well as individuals and families. We are contracted with the leading insurance companies. We are service oriented and respond promptly to every big and small issue. We use decades of relevant experience to find solutions. This experience includes prior history of working in various insurance company sales, customer service, claims, and other departments, in home office as well as in regional and local field offices. We try to make work enjoyable and this includes close multiple year relationships with our insurance company contacts, the community in general, and, especially, our many quality business, non-profit, and individual/family clients. We value balance and harmony in our lives and like to associate with other business owners and non-profit managers who do also. We believe in continuing education and personal growth. In 2012 we evolved to a culture of strategic partners rather than employees. For example Amy Shuckhart, President of Amalyn Consulting is partner on the Chamber Benefits Administration plan as well as all business referred by the Scottsdale Area Chamber of Commerce. This has proven to be successful for all parties involved.
Pro One Media Productions is a full service provider of customized quality video for businesses, organizations and individuals. Sharp images, vivid color, clear sound and creative editing characterize each production to achieve a professional result every time. From television commercials to corporate promotional or training videos, Pro One’s seasoned camera operators know how to get just the right shot. Through the use of Digital Cinema, High Definition and Broadcast Quality video cameras, combined with the highest quality audio equipment, Pro One is able to offer a complete menu of multi-service video production including videography, editing, media conversion, duplication and replication.
Paul Breslau Breslau Insurance & Benefits, Inc. www.breslauinsurance.com (602) 692-6832 In Business Magazine
Pam Kelly Pro One Media Productions www.proonemedia.com 480-948-9310
Scottsdale@WOrk - 3
Small Business presented by COX Media
Honoree: McDowell Village Senior Living The Sterling Award for Small Business recognizes a small company demonstrating innovation, quality, professionalism and commitment to community. (7-99 employees)
McDowell Village McDowell Village is an apartment style retirement community for seniors who need a little more support and amenities then what they can get on their own - some are “independent” and some need “assistance”. McDowell Village provides food, shelter, transportation, activities, fitness, care support and entertainment, but they do a lot more than that. The staff of McDowell Village are the cheerleaders for a resident population living out the final phases of their life. Their mission every day is to make them feel safe, important, comfortable, respected and happy. They do that by hiring people who share their passion for seniors, by getting to know their residents, by providing a fun and invigorating environment that challenges their minds, bodies and souls. At McDowell Village they are not old, they are not slow, they are not forgotten. They are George and Edna and Bill and Louise - and they have their own stories and their own personalities and their own strengths and issues just like all of us. So they don’t treat them like old people; they treat them like people - people they like a lot. Jay Beaird McDowell Village jdbeaird@mcdowellvillage.com www.mcdowellvillage.com (480) 970-6400
Finalists: Arizona Center for the Blind Document Destruction
Brain State Technologies
Arizona Center for the Blind Document Destruction (AzCFTB) specializes in providing secure document destruction services. In response to the recent drive to “Go Green,” AzCFTB expanded its services to provide a “One Stop Shop” for all recyclables. Through the AzCFTB, companies can shred their most sensitive documents and also establish a program for recycling paper, plastics, cans and cardboard. AzCFTB started out as a non-profit to raise much needed funds for the Center for the Blind and Visually Impaired Rehabilitation Center. As AzCFTB’s client base grew, the rehabilitation center board decided it needed to have another entity manage it. So it was established as a for profit business. It remains, however, a fundraising source for the rehabilitation center providing monthly dividends and a portion of the annual profit.
Brain State Technologies® is the world’s leading provider of the patented brainwave balancing process – Brainwave Optimization™. Started in 2001, and developed by Lee Gerdes, the modality combines the latest advances in neuroscience, neuroplasticity, computer technology, mathematics, and physics and is a non-invasive, nondrug method for people of all ages to overcome cognitive, emotional, and physical challenges. The Brainwave Optimization™ system has helped over 50,000 people worldwide (to date) achieve greater brain balance. Improving brain function has shown to help with sleep challenges, injuries, afflictions, compulsions, chronic pain, and addictive dependencies. Almost every single client has reported some level of noticeable improvement, making the success rate of this approach unmatched as compared to any other modalities or pharmaceuticals on the market.
Beth Villa Arizona Center for the Blind Document Destruction www.azcenterfortheblind.com (602) 267-8740
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Lee Gerdes Brain State Technologies www.brainstatetech.com (480) 588-6840
In Business Magazine
Big Business
presented by DMB Associates
Honoree: Scottsdale Healthcare The Sterling Award for Big Business recognizes a large company making a significant impact on the lives of its employees and the economic fabric of the community. (100+ Employees)
Scottsdale Healthcare After Winfield Scott settled in what is now known as Scottsdale, he envisioned a hospital someday serving the community. City Hospital of Scottsdale, now known as Scottsdale Healthcare Osborn Medical Center, opened in 1962. Today, Scottsdale Healthcare has grown into an economic anchor for Scottsdale and a leading nonprofit health system with three hospitals, the Valley’s first major cancer center, outpatient services and a wide range of community benefit programs. An integral part of Scottsdale for the last 50 years, Scottsdale Healthcare provides world-class patient care for our community. Through its facilities, Scottsdale Healthcare meets the healthcare needs of individuals throughout their lives—from maternity and pediatrics to emergency, heart, vascular, orthopedic, neurology, bariatric, diabetes, minimally invasive surgery and pain management services. The Virginia G. Piper Cancer Center at Scottsdale Healthcare provides comprehensive cancer care and research through Phase I clinical trials, diagnosis, treatment, prevention and support services in collaboration with leading researchers and community oncologists — all in a single location. The seeds sown by Chaplain Scott in the 1880s for an oasis of health did indeed bear fruit, and like those century-old olive trees,. Scottsdale Healthcare remains firmly rooted in our community. Tom Sadvary Scottsdale Healthcare tsadvary@shc.org www.shc.org • (480) 882-4000
Finalists: Homeowners Financial Group
Hotel Valley Ho
Homeowners Financial Group (HFG) is a full service, Arizona based mortgage banker, leading the Valley in residential lending. The company was founded in 2004 by finance and mortgage executives with over a century of expertise in residential lending. They currently operate in three Valley locations, with their corporate headquarters located in North Scottsdale and additional offices in Old Town Scottsdale and Tempe. HFG’s core business is comprised of residential mortgage lending which provides homebuyers with loan programs such as FHA, 203K, VA, Conventional, HomePath, First Time Homebuyer, HARP 2.0, Jumbo, Reverse Mortgages and Canadian Financing. They also have numerous relationships with some of the Valley’s most prominent Real Estate Companies and Builders who refer their clients because of the confidence they have in the staff at HFG. With loan officers providing lending solutions for first mortgages, second mortgages, purchases and refinances, the HFG commitment is to guarantee their clients’ satisfaction each step of the way assuring a successful outcome and forging a path to a lifetime of mortgage lending support. HFG is licensed to conduct business in the following states: Arizona, California, Idaho, New Mexico, and Washington and is registered in Colorado.
Hotel Valley Ho originally opened in 1956 and reopened in 2005 after a meticulous $80 million renovation that carefully preserved the original architectural elements. The hotel features 193 rooms; seasonal American fare at ZuZu; revitalizing treatments, fitness classes, and memberships at VH Spa for Vitality + Health; and handcrafted cocktails at OH Pool Bar + Cabanas. There’s also the seven-story Tower, featuring guest rooms as well as multi-level condominiums and penthouses. Event space includes four boardrooms, two ballrooms, the indoor-outdoor Sands venue, and outdoor spaces like Palm Courtyard and the Sky Line Rooftop.
Bill Rogers Homeowners Financial Group www.homeownersfg.com • (480) 305-8500
In Business Magazine
Scott Lyon Hotel Valley Ho www.hotelvalleyho.com (480) 421-7734
Scottsdale@WOrk - 5
Scottsdale Area Chamber introduces New Member Benefits The Scottsdale Area Chamber of Commerce is pleased to introduce three new programs to benefit its members. The offerings include a new worker’s compensation program through Farmers Insurance, an online internship database, and enhanced visibility and education for our members through Scottsdale.com.
FARMERS INSURANCE WORKERS COMPENSATION PROGRAM Interested in significantly lowering the cost of your Workers Compensation insurance? Farmers Insurance holds free 60 minute seminars at the Chamber offices where they show the steps businesses can take to immediately lower their Workers Compensation premiums. These seminars are FREE for all Scottsdale Chamber members and prospective members, and are hosted by Lyndon Mako, Licensed Safety inspector and Trainer and Tim Leckey (MBA U. of Chicago ‘89), Commercial Insurance Consultant. o to http://events.scottsdalechamber.com for G the next scheduled seminar.
INTERNSHIPS.COM
SCOTTSDALE.COM
Now, more than ever, it is important to increase access to internships for all students. Research shows that seven out of ten students who have had an internship with an employer are hired by that same employer. Connecting students with local companies helps us keep the best talent and top businesses in the Scottsdale area. The Scottsdale Chamber has partnered with Internships.com to provide employers and students with a place to connect. This partnership furthers the Chamber’s support of education, and its focus on workforce development. Employers can post internships, access a student resume database, and receive expert insight for free. Students and recent graduates can search the company database for internship opportunities at no charge.
Scottsdale.com is the website of choice for both Scottsdale residents and prospective customers! Take advantage of a discounted, Chamber Only package on Scottsdale. com that includes a Featured Article/Interview on the Home Page each quarter; and a permanent Premium Directory Upgrade in your category that includes a special landing page, “top of the list” exposure, Google map, logo, custom business description, and more. Your business will also be included in eblasts to their 50,000 PLUS Twitter followers, their 4,000 PLUS Facebook fans, and 76,000 local LunchClub database followers several times each month. There is a dedicated and featured Scottsdale Chamber section on Scottsdale.com, with all Chamber events publicized, as well as the events of all of Chamber Members that take advantage of this special Scottsdale.com offer.
Go to www.internships.com/group/ scottsdalechamber to get started.
An Easier Way for Business to “Choose Scottsdale” The Scottsdale Chamber is proud to have helped the City of Scottsdale’s Economic Development office launch the “Choose Scottsdale” initiative. This program, most visibly connected with the new website http://choosescottsdale.com, is an effort to reach out to businesses both large and small and show them why Scottsdale is where they should be doing business. Choose Scottsdale has been reaching out to businesses holding conferences and meetings in Scottsdale during our busy and lucrative resort and conference season in an effort to get one-on-one with decision makers and show them all the benefits of headquartering their businesses in Scottsdale, America’s Business Oasis! The site is filled with information and resources valuable to businesses both large and small, including links to: Economic Development Organizations • Financing • Small Business Services • Utilities • City Services • Community Leadership Organizations Go to website http://choosescottsdale.com for a look at this incredible initiative to grow Scottsdale’s business sector, and for some valuable resources for your business!
6 - scottsdalechamber.com
Go to www.scottsdale.com to learn more.
Ladies – Save the Date! Saturday, February 9th Women Entrepreneur’s Small Business Boot Camp Chaparral Suites Resort 5001 N Scottsdale Rd., Scottsdale, AZ 85250 Join the Scottsdale Chamber at the 9th annual 2013 Boot Camp Conference and soak up the knowledge and experience of fantastically successful local business experts who will share relevant, valuable tricks, tips and tools to help your business grow and make money. Take control of your business destiny and enjoy: • A full day of education, motivation and celebration • Meet and network with hundreds of women in business • Select from 9 informative workshops • 2 valuable keynote presentations • Don’t miss the Makeover Magic session • Get resources from 50 sponsors and exhibitors • Continental breakfast, lunch and snack breaks provided • Charity raffle with valuable prizes Check out the stellar line-up of speakers, the agenda and fun activities to pump up your profits and give your business a boost at www.womensbusinessbootcamp.com.
In Business Magazine
Golfers – Save the Date! Friday, May 3rd McCormick Ranch Golf Club 7505 E. McCormick Pkwy, Scottsdale, AZ 85258
Presented by
One of the Chamber’s most popular events, our Scottsdale Area Chamber Open golf tournament is a big hit with our members and guests, attracting golfers from some of the Valley’s most influential companies. Our tournament gives you an opportunity to play great courses and enjoy business-to-business networking at its best! 1:00pm SHOTGUN START Individual and Corporate Foursomes Available Sponsorship Opportunities Available For more information or to become a sponsor, contact Anna Mineer at amineer@scottsdalechamber.com or call 480.355.2708
Mike Binder Managing Editor Scottsdale Area Chamber of Commerce
Rick Kidder President & CEO Scottsdale Area Chamber of Commerce rkidder@scottsdalechamber.com 7501 E. McCormick Pkwy, Suite 202-N Scottsdale, AZ 85251 Ph 480.355.2700 fax 480.355.2710 www.scottsdalechamber.com
Board of Directors Executive Committee BOARD CHAIR Eric Larson, AVB Development Partners CHAIR-ELECT Bryce Lloyd, FirstBank of AZ IMMEDIATE PAST CHAIR Kurt Zitzer, Meagher & Geer, PLLP TREASURER Geoff Beer, Crescent Bay Holdings
ECONOMIC DEVELOPMENT ADVISORY COUNCIL Don Couvillion, ASU SkySong MEMBER VALUE ADVISORY COUNCIL Pam Kelly, Pro One Media AT LARGE MEMBERS Jennifer Bongiovanni Karas, The Karas Group Kurt Brueckner, Titus, Brueckner & Levine, PLC
SCOTTSDALE PARTNERSHIP Kevin Sellers, Angela Creedon, First Fidelity Bank Arizona State University EMERGING ISSUES Bill Heckman, Heckman Marketing, Inc. PUBLIC POLICY ADVISORY COUNCIL Steve Helm, Scottsdale Fashion Square
Dale Fingersh, The Right Direction Rick Kidder, Scottsdale Area Chamber of Commerce
© 2013 Scottsdale Area Chamber of Commerce. A publication of the Scottsdale Area Chamber of Commerce. For more information or to join the Scottsdale Chamber, please contact us at www.scottsdalechamber.com. Section designed by InMedia Company, LLC.
In Business Magazine
Scottsdale@WOrk - 7
Infocus: 65th Anniversary Gala and Business Volunteer Awards Nearly 500 of Scottsdale’s most influential business people joined the Chamber on Tuesday, November 13th for the 2012 Sterling Awards at the Chaparral Suites Resort. A V.I.P. Party was held on the rooftop of the Hotel Valley Ho on Thursday, November 8th to honor all the finalists and thank them for their participation.
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1. The view from atop the Hotel Valley Ho, host of the Sterling V.I.P. Party. 2. Jennifer Rueb and Andrew Chippendall of the Hotel Valley Ho. 3. Scottsdale Mayor Jim Lane and Councilman Ron McCullagh. 4. Tom Richards, Amy Schuckhart and Sterling Finalist Paul Breslau. 5. Sterling Award Co-Chairs Susan Potje and Steve Helm. 6.Todd Peterson, and councilwomen Linda Milhaven and Virginia Korte. 7. The stage is set courtesy of Merestone Productions. 8. Amparo Turner and Melinda Gulick of DMB Associates. 9. Ellen Andres-Schneider, Michael Familetti, and Ralph Andres. 10. Jay Beaird of McDowell Village accepting the Small Business Sterling Award. 11. Tina Miller, Jodi Low and Tiffany Divalbiss of Amplify U, recipients of the Micro Business Sterling Award. 12. Award sponsor Paul Townsley of Epcor Water, and Jay Beaird of McDowell Village recipient of the Small Business Sterling Award. 13. Tom Sadvary of Scottsdale Healthcare, recipient of the Big Business Sterling Award, and Award sponsor Charley Freericks of DMB Associates. 14. Award sponsor Vern Braaksma of APS, and Virginia Korte of STARS, recipient of the Non-Profit Sterling Award.
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In Business Magazine
®
Fiscal Cliff Frenzey by Rick Murray, Chief Executive Officer, ASBA
As if the rhetoric from the elections wasn’t enough, now we need to suffer through the fiscal cliff negotiations as both sides have taken a position of trying
About ASBA
to negotiate a deal through the media. For me, this whole episode is kind of like sausage. I don’t want to know how it’s made. Please just get it done.
The Arizona Small Business Association
Everyone knows we need to reduce spending and increase revenues…a
(ASBA) is the largest trade association
pretty simple formula. Everyone’s ox will be equally gored.
in the state representing 11,000+ member businesses, and over 1/2 million employees in all 15 counties. ASBA members enjoy access to significant group discounts, countless opportunities to do business with each
I hope that by the time this article is published there will be an agreement. As of today, both sides are trying to find a mutual agreement in order to prevent $600 billion in automatic tax increases and spending cuts scheduled to take effect at the beginning of January if no deal is reached.
other, a wide array of insurance
The two major elements of the fiscal cliff are automatic spending reductions (sequestration) set to
products, and active advocacy efforts on
start on January 1 and tax cuts that expire at the end of the year. Further complicating these
public policy issues to protect their businesses. Discover more at www.asba.com.
discussions is the fact that government is expected to hit its borrowing limit in late January or early February, and some Republicans are fearful of further spending cuts before the debt ceiling is lifted. President Obama has said that any deal on taxes and spending must ensure there will not
Join ASBA. Be amAZed®
be another crisis over the debt ceiling early next year. Boehner’s proposal called for $2.2 trillion in deficit reduction over ten years, with $800 billion
in this issue Business Health Challenge . . . . . . pg. 2
coming from new revenue generated through tax reform that closes special interest loopholes and deductions while lowering rates. The remaining $1.4 trillion would come from cuts to mandatory and discretionary spending programs—including Medicare—on top of those already enacted in the Budget Control Act of 2011. Obama rejected the speaker’s proposal citing that it “does not meet the test of balance” and has
ASBA 2013 Legislative Forcast . . . pg. 4
subsequently argued that the Republican plan lacked specifics and would generate insufficient revenue. He also continued to insist that a final deal would have to include a rate increase for
Web Marketing 101 . . . . . . . . . . . . pg. 6
high-income taxpayers. Instead, the President supports $1.6 trillion in new tax revenue over ten years, plus $400 billion in cuts to federal spending. Democrats, including Obama, want the
Central Arizona
reduced tax rates extended for married taxpayers earning less than $250,000 a year and single
4600 E. Washington Street, Suite 340
filers earning less than $200,000, while Republicans want them continued for all brackets.
Phoenix, AZ 85034 p. 602.306.4000
f. 602.306.4001
combined with serious entitlement reform and additional spending cuts. Once Republican leadership takes that framework, the President feels a balanced plan will be achievable.
Southern Arizona 4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p. 520.327.0222
Obama is confident that Republicans may be able to accept some rate increases as long as it is
f. 520.327.0440
Speaker Boehner has called for the President to put forward a revised offer of his own, and argues that he has an obligation to send one to Congress that can pass both chambers. House Majority Leader Eric Cantor (R-Va.), who controls the schedule for that chamber, has indicated that the House will not adjourn the 112th Congress until a credible solution to the fiscal
© 2013 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
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cliff has been found. Let’s only hope. Whatever the solution is…I’m sure it will be one piece of sausage that will be tough to swallow.
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ASBA Board of Directors
Business Health Challenge
Joe Higgins | Chair Serial Entrepreneur Roy Irwin | Vice Chair Irwin Insurance & Investments, LLC
by Jason Sealy, Healthy Arizona Worksite Program Manager, ASBA New Year’s resolutions aren’t just about individual goals anymore. Your business can
Donna Robinson | Secretary Network Dogs, Inc. Jacob Gregory | Treasurer CliftonLarsenAllen LLP John Ficorilli Mountain State Employers Council Glenn Hamer Arizona Chamber of Commerce and Industry Ben J. Himmelstein Wong Fuji Carter, PC Karen Karr Lewis Brisbois Bisgaard & Smith, LLP Doug Martin Good News Radio Broadcasting
also benefit from a fresh new focus in the New Year. What will your resolution be this year? How will you achieve it? Will you make it part of your continued business core values and strategies, or just look to “resolve” it for the year and re-resolve a few years down the road if it does not work out quite the way envisioned? Will your business be surviving or thriving in 2013? When looking at what makes a successful business thrive and not just survive, one keyword
comes
to
mind–productivity.
Productivity can have several different meanings and connotations depending on the definer, and is commonly measured as it relates to specific work environments and job functions. Business owners and individual
Ryan McMullen RSI Enterprises, Inc. Lynn Paige PerfectPower, Inc. Kim Marie Branch-Pettid LeTip International Jan Northup Management Training Systems, Inc. Paul Smiley Sonoran Technology and Professional Services Linda Stanfield Benjamin Franklin Plumbing Mark Staudohar ACCENT' Hiring Group
employees that contribute to the productivity and success of thriving businesses understand that they are only as strong as their weakest link. Who or what is this weak link as it relates to small businesses? Health! As the Healthy Arizona Worksite Program Manager, I invite and challenge your business to make this year’s resolution productive, sustainable, and comprehensive by participating in the no-cost, grant-funded Healthy Arizona Worksites Program (HAWP). The purpose of the Healthy Arizona Worksites Program is to help Arizona employers successfully implement evidence-based healthy worksite initiatives to improve the health of their employees and businesses. Evidence-based healthy worksite initiatives have been shown to reduce costs associated with health care, absenteeism and presenteeism. In addition, they have been linked to increased productivity as healthy employees have been shown to be more productive. The Healthy Arizona Worksites Program will provide tools, information, technical assistance, and resources to design, implement, and evaluate healthy worksite initiatives in your company. This program also will work to connect you with others in your community who are engaging in similar healthy worksite efforts. Through your participation, you will learn how to construct a healthy work
Victoria Trafton Victoria Trafton, Inc. Janice Washington Arizona Small Business Development Network
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environment specific for your business. Visit asba.com/hawp for more information. Hope to see you at an upcoming session in the New Year!
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ASBA Announces a New Partnership with Wist Office Products by Carol Mangen, Director, Member Benefits, ASBA One of the amazing benefits that our members depend on is ASBA’s ability to offer exceptional values and savings on products that help them in their daily business operations. Moreover, they tell us they are most incented to use products from local companies that help drive the Arizona economy. than just a postcard from the past - it's a way of saying to our customWist Office Products is the ideal solution in delivering exactly what our
ers that we care about the community in which we all live, work and
11,000+ member companies are seeking. Being a local company is
play,” said Richard.
central to Wist’s ethos. Sam Richard, the Business Development Director at Wist says, "In addition to keeping three times as much
As part of our program, this Arizona business offers up to 85%
money in the Arizona economy compared to our competitors, being
savings on office products, free next-day delivery with no minimum
local means that we hold ourselves to a higher standard - these aren't
purchase, and award-winning customer service.
just our customers, they are our neighbors, too.” Be part of this new alliance by joining ASBA, placing your first order The Tempe-based office supply company has been in Arizona since
with Wist by January 31, 2013, and receive two movie tickets to
1955. “Being a third-generation family-owned company is more to us
Arizona’s own Harkins Theatres. Enjoy the show and the savings!
Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production
Online • Campus
A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).
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2013 L E G I S L AT I V E
FORECAST
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by Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona, ASBA
Certainty is a good thing. Fortunately, we enter Arizona’s 2013 Legislative Session with answers to a number of critical questions we had this time last year. Who will win the Presidential election? Will Arizona have a state run exchange if Obamacare is not repealed? Will our state’s economy continue to improve? Will the balance of power in our Legislature remain far to the right, or will it shift more to the center? With so much uncertainty, forecasting last year’s legislative session was like staring into a foggy crystal ball. We all know the answers to these questions now. Regardless of how we felt about the outcomes from last year, we now know what confronts us and what we now have to work with. There is much more clarity entering this year’s legislative session, and there are a number of issues that will rise to the top that we expect will dominate the dialogue and capture headlines. We begin with education funding. Our state universities and K-12 education have certainly felt the effects of the economic downturn with significant cuts in recent year. Proposition 204, that appeared on the November ballot, was intended to solve the funding woes and provide a dedicated and permanent source of revenue to fund education in our state. Failure to pass Prop 204 brings education back to the drawing board; most will agree that our legislature must find a way to increase funding for education, which will be a top issue this year. Expect to see education funding related bills introduced and promoted as workforce and economic development related.
Next is the issue of healthcare in Arizona–a significant concern that continued to face mounting challenges and did not achieve enough progress prior to being introduced in the Affordable Care Act. The issue of Arizona’s healthcare is huge. It is expensive to provide, and we now have to contend with navigating through a new Health Exchange that will be run by the federal government. Access to quality healthcare, and its associated cost, is a major factor that impacts the bottom line of each Arizona business. It is also a measurable factor in real dollars that allows prospective businesses to measure Arizona against other states when determining the cost of doing business. The simplification of Arizona’s complex tax system will continue to be a top issue as momentum has increased following two years of significant progress. Recent tax reforms have reduced the burden on capital gains tax, corporate income tax and the assessment of business equipment and property. A significant burden that needs to be dealt with is the administrative problems that Arizona businesses deal with to comply with such a complex tax system. Compliance is a real cost to Arizona businesses, and, coupled with our current tax rates, it’s a major driver in our ability to be competitive and attract new businesses to Arizona, as well as encourage existing businesses to expand. We expect our state legislature to begin to adopt recommendations recently proposed by the TPT Task Force and begin the process of simplifying our tax system.
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For the latest news on Arizona Legislation, visit asba.com
Finally, with the temporary one-cent sales tax scheduled to sunset this year, we expect the state’s budget will once again be an issue widely discussed and debated. Since the state expects over a 5% increase in revenues this year, many state run programs that were cut or significantly reduced will resurface and be promoted as priorities. The relentless pressure to expand Arizona’s tax base by taxing services will continue, and the vigilance by those that oppose it will remain as strong as ever. While the GOP’s control of the legislature remains, the margins are slimmer and its control has weakened as Democrats picked up seats during the November election. Expect our legislature to shift a bit to the center and more cooperation across party lines in order to get things done. The Arizona Small Business Association (ASBA) will continue to advocate on behalf of its 11,000+ member businesses and be a visible and vocal presence at the legislature. ASBA’s legislative priorities revolve around Taxation, Regulation, Economic Development, Healthcare and Education. To view ASBA’s 2013 Legislative Agenda, please visit our Advocacy page on asba.com. To learn more about what small businesses can expect in the coming year, be sure to join us on January 17 for the Small Business Outlook 2013 event. Details can be found at asba.com/outlook.
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Web Marketing 101 by Gabe Salcido, Graphic and Web Design Manager, ASBA As the internet becomes faster and more efficient, consumers will expect the same when it comes from a business and or service website. Small business owners that have a web presence must keep up with the ever evolving internet so that you can get the edge over your competition. Below are tips that a small business can use when it comes to marketing your business on the web.
Market your business with social media.
Social media is powerful in that it helps you find your target audience and ultimately make a sale. Social media takes a more personal approach with the consumer, so it's important for business owners to engage with your audience as a resource and not an infomercial. Connect with social media applications to help share articles, images or videos that provide educational tips or resources that relate to your product or service. Provide updates and current events that show your audience that you are on the top of your game. TIP: Adding social media buttons on your website makes it easy for others to share and comment from your website. You can add your buttons individually or use services like ShareThis, Lockerz, or AddThis that combine all of your social media profiles into one basic widget that can then be uploaded to your site.
Don’t have a Website to market your business?
There are many applications that provide free web publishing on the internet. Although most are not unique to your brand, for an extra fee some offer full customization. This method is a great way to jump start your web marketing and, if successful, can be a valuable resource when you get your website developed. Two things are required to attain your very own company website, and they are a web domain (yourcompany.com) and web hosting. Both can be purchased from companies like GoDaddy or WebHostingHub. TIP: Your ASBA profile gives you access to create company blogs and custom business pages! Use these tools for free to maximize your web marketing and extend your reach to others. To access these tools, log in to your ASBA profile at asba.com and visit your Manage Profile section.
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Keyword Tags
Keyword tags are useful for search engines to help determine what your business is related to. Keywords can be added to your website in your meta tags and can also be added to your social media links using tools like #hashtags or @mentions. The right keyword tags can improve SEO and provide more effective target marketing for your business. TIP: Use tools like Google’s AdWords tool to help you find keywords that are related to your product and service. These are just a few of many basic ways to market your company on the web. Remember to be creative and do your research. Take a look on how others market and think about how you can be different and stick out from your competitors. Find out what you can provide outside what you sell and use it as a gateway to market your business and ultimately make a sale.
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Small Business Outlook 2013 is a must-attend event for all small business owners and supporters of the small business community in Arizona. This year’s program will feature an informative panel discussion as we take a look at important issues facing small business in 2013, including the critical areas of public policy, TPT Sale Tax reform, healthcare in Arizona and access to capital. Attendees will also have the opportunity to network with other business owners, meet ASBA’s new and renewing Board Members, and interact one-on-one with ASBA partners at the mini benefits fair. Join us as we celebrate the successes of 2012 and look forward to an exciting year in 2013!
2013
ASBA Presents Small Business Outlook 2013 SMALL BUSINESS
OUTLOOK
January 17, 7:30 - 10am
WHY ATTEND? Hear from industry experts on important issues facing small business in 2013, including public policy, healthcare and access to capital. Network with other business owners and meet ASBA's Board. Interact one-on-one with ASBA partners at the mini benefits fair.
Presented by:
Sponsored by:
Location: The Phoenician, 6000 E. Camelback Rd., Scottsdale For more information and to register, visit asba.com/outlook or call 602.306.4000.
“Turning Obstacles Into Opportunities Together” Banking and Credit Relationships
Financial Statement Quality Review
Establishing complete banking and loan relationships for small to mid-size business clients.
Expense Reduction
Assist businesses to properly produce accurate financial information for their company and to understand what the financials tell them.
Review and Recommendations to reduce operating expenses.
Stoney-Wilson Business Consulting, LLC www.stoneywilson.com Julie Stoney
6501 E. Greenway Pkwy #103-583 Scottsdale, AZ 85254
(602) 370-1776 juliestoney@stoneywilson.com
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Robert S. Wilson
(602) 696-1060 robertwilson@stoneywilson.com
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ASBA Staff
amAZing速 member photos
Rick Murray, Chief Executive Officer Kristen Lopez, Chief Operating Officer Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona Debbie Hann, VP, Finance + Administration Sandi Ahrens, Director, Business Development Rhette Baughman, Director, Marketing Carol Mangen, Director, Member Benefits Robin Duncan,
ASBA
Business Development Manager Gabe Salcido, Graphic & Web Design Manager Jason Sealy, Healthy Arizona Worksite Program Manager Ron Janicki, Business Development, Southern Arizona Marlee Roushey, Member Services Coordinator, Southern Arizona Sarah Travis, Member Services Coordinator Raina Bibb, Receptionist
Central Arizona
4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000 f | 602.306.4001
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Southern Arizona
4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p | 520.327.0222 f | 520.327.0440
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The Guide to Starting or Bettering Your Business
Accounting & Tax Services • Alternative Funding • Business Banking / SBA Lending • Business Marketing Services • Business Organizations & Associations • Business Services • Commercial Real Estate • Employee Benefits / Insurance • Healthcare Insurance • Human Resources / Hiring • Information Technology • Law Firms • Office Furniture • Payroll Services • Telecommunications / Mobile
y l l a We Re Want to
Grow Your Business! Just like we recently did for these businesses... Storage Units $3.6 Million Peoria
Car Wash/ Gas Station $2.9 Million Scottsdale
Maintenance Company $288,000 Tempe
Manufacturing Facility $2.1 Million Phoenix
Restaurant Franchise $953,000 Douglas
u Fast, in-house approval & processing to close quickly u Flexible, no defined “credit box� u A nationwide Preferred SBA Lender u Loan amounts of all sizes, terms up to 25 years u A Stearns Banker walks you through the entire loan process
We will get the job done for you! Call John Mistler or Ryan Shumaker.
480-314-4200
Member FDIC. Equal Housing Lender
Small Business Resources
Serving Arizona Small Business
Robert Blaney has served as the district director of the U.S. Small Business Administration for the State of Arizona since 1998. His varied experience includes work as a federal agent, police officer, vicepresident of an insurance brokerage and administrative assistant to the late Congressman Jack Kemp. He is a native of western New York and a graduate of the State University College of New York at Buffalo.
The pace of SBA-backed lending continues to rebound. SBA lending remains strong, providing capital to small businesses at a steady pre-recession pace. The first 11 weeks of FY 2013 (which began Oct. 1) saw more loans and more dollars loaned than the same period a year ago, a year in which SBA recorded the second-highest loan volume in the agency’s history. Overall, lending continues at a solid pre-recession pace, some weeks more, some weeks less. Last week nationally was the busiest of the current quarter. FY 2012 was SBA’s second-biggest loan volume year ever, in dollar terms, second only to FY 2011, which got a huge boost in the first quarter from the Small Business Jobs Act of 2010. Loan approvals for FY 2012 reached $21.8 billion, compared with $24.48 billion in approvals for FY2011. Overall, the pace of SBA loan-making is a healthy sign for the economy and the credit markets and is one of the foundations for ensuring the availability of financing to small businesses trying to establish themselves, grow and create new jobs for Americans. Facing tough questions in tough times doesn’t have to be as difficult as it seems. Some of the most common issues that we, working with the Arizona Small Business Development Center Network or the SCORE Association, have helped businesses with are examining their business model, evaluating their business plan and knowing where to go for the help that they need.
Robert Blaney District Director • U.S. Small Business Administration, Arizona District
Small Business Is the Power of Arizona
Rick Murray has a wide and varied background that includes entrepreneurial endeavors and nonprofit association executive experience. Murray has seen tremendous success by using the same formula he has always used: developing relationships with businesses for mutual success and surrounding himself with a team of people who believe in a common goal. Murray is also well-versed in HIPAA compliance issues and healthcarerelated businesses.
A Kauffman Foundation study released in May says that, overall in 2011, there was a downward dip in new business start-ups nationwide. But the study points to five states with the highest entrepreneurial activity rate — and Arizona’s is highest. If there is one thing good that has come out of the economic downturn it is that there are more small businesses per capita in Arizona than ever before. In fact, 97 percent of Arizona’s economy is generated through small business. Arizona is leading the country out of the recession, thanks to Arizona small businesses. While sales and income are gradually increasing in small businesses in general, there is still a significant amount of work to be done to convince the buying public it’s safe to come out now. Some have referred to the Great Recession as a buyer’s revolution. No longer are the days when consumers are going to accept the status quo. Consumers are becoming much more educated and much more wary about parting with their money. The market correction also gave birth to a buying correction. America has a “re-born” consumer who is more like our grandparents who went through the Great Depression, when stashing money in a mattress was preferable to investing. People are holding onto their vehicles longer before replacing them, remodeling their home instead of “going bigger,” and fixing broken and worn-out appliances rather than replacing them. We have consumers who want us to prove it is worthwhile for them to spend their money. This is where small business makes the difference, connecting at the neighbor level to restore the confidence that will power the economy. Recognizing the critical role small business plays as an economic engine of our community, In Business Magazine is to be commended for assembling in this guide the critical services that small businesses, in turn, rely on.
About this Guide
Rick Murray CEO • Arizona Small Business Association
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The In Business Magazine editorial staff has compiled a list of trusted business services that we strongly recommend to our business readers. Each business is dedicated to serving local small businesses and is a partner in building our business community.
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Small Business Resources Accounting & Tax Services CBIZ and Mayer Hoffman McCann, P.C. CBIZ provides accounting, tax and business valuation and consulting services to real estate, wholesale, not-for-profit, retail and manufacturing entrepreneurial business in the Phoenix marketplace. Top Executive: Carlos Wagner Local Headquarters: 3101 N. Central Ave., Ste. 300, Phoenix, AZ 85012 Offices (Local / National): 1 / 186 Phone: (602) 277-2371 Website: www.cbiz.com
Henry & Horne, L.L.P. Henry & Horne is Arizona’s largest locally owned accounting firm with a broad base of services to meet clients’ needs. The firm includes estate specialists, international tax experts and a multitude of experts with other areas of expertise. Top Executive: Chuck Goodmiller Local Headquarters: 2055 E. Warner Rd., Ste. 101, Tempe, AZ 85284 Offices (Local / National): 2 / 3 Phone: (480) 839-4900 Website: www.hhcpa.com
NUMBERSetc NUMBERSetc accounting and finance professionals bring an in-depth level of functional and industry experience in all areas of finance and accounting with real world experience. NUMBERSetc has been helping companies of all sizes, from start-ups to Fortune 500 companies. Top Executive: Pamela Smith Local Headquarters: 2152 S. Vineyard Ave., Ste. 120, Mesa, AZ 85210 Offices (Local): 1 Phone: (480) 821-1897 Website: www.numbersetc.biz
Alternative Funding
Performance Funding Group PFG offers flexible financial solutions that can help smaller businesses expand, improving cash flow for small to medium-sized businesses and providing them an advantage in today’s competitive market at a time when there are so many challenges to obtaining more traditional bank financing. Top Executive: Lou Wallace Local Headquarters: 11022 N. 28th Dr., Ste. 160, Phoenix, AZ 85029 Offices (Local): 1 Phone: (602) 912-0200 Website: www.performancefunding.com
Business Banking / SBA Lending Alliance Bank of Arizona
Business Marketing Services
Alliance Bank of Arizona is a “super community” bank, delivering a broader product array and larger credit capacity than a traditional community bank. Their focus is relationship-based, personalized service, with the latest in technology and lending capabilities to meet the needs of virtually any Arizona business. Top Executive: James H. Lundy Local Headquarters: 1 E. Washington St., Phoenix, AZ 85004 Offices (Local / National): 9 / 17 Phone: (602) 629-1776 Website: www.alliancebankofarizona.com
BMO Harris Bank N. A. BMO Harris Bank offers business banking products and services for small and medium-sized businesses: checking and savings accounts, loans and lines of credit, online banking, treasury management and more. Top Executive: Stephen Johnson Local Headquarters: 1 E. Camelback Rd., Phoenix, AZ 85012 Offices (Local / National): 33 / 300+ Phone: (602) 241-6500 Website: www.mibank.com
National Bank of Arizona
Altima provides assistance in raising capital through its affiliations and network of influence in angel/venture, private equity, hedge funds, factoring, equipment leasing and merchant funding. Top Executive: Andre Wilson Local Headquarters: 1820 E. Ray Rd., Chandler, AZ 85225 Offices (Local): 1 Phone: (602) 773-1488 Website: altimabusinesssolutions.com
National Bank of Arizona provides local expertise and focuses on delivering award-winning service. It is more than just a business bank; it’s expanded to a full-service financial institution offering a suite of products and services tailored to business. Top Executive: Keith Maio Local Headquarters: 6001 N. 24th St., Phoenix, AZ 85016 Offices (Local / National): 24 / 75 Phone: (602) 235-6000 Website: www.nbarizona.com
FSW Funding is a privately owned and operated assetbased lending company specializing in the financing needs of small and medium-sized businesses. Top Executive: Robyn Barrett Local Headquarters: 4530 E. Shea Blvd., Ste. 142, Phoenix, AZ 85028 Offices (Local): 1 Phone: (602) 535-5984 Website: www.factors-southwest.com
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West Valley National Bank West Valley National Bank is the West Valley’s first locally owned and operated community bank and recently expanded to Scottsdale. Founded by local business leaders, the bank is dedicated to looking after business owners and their financial needs. Top Executive: Candace D. Wiest Local Headquarters: 12725 W. Indian School Rd., Avondale, AZ 85392 Offices (Local): 3 Phone: (623) 536-9862 Website: www.wvnb.net
Altima Business Solutions
FSW Funding
Offices (Local / National): 167 / 6782 Phone: (602) 378-4644 Website: www.wellsfargo.com
Wells Fargo & Company Wells Fargo & Company is a diversified financial services company that provides banking, insurance, investments, mortgage, and consumer and commercial finance. For the sixth consecutive year, it is the number one Small Business Administration 7(a) lender in Arizona in amount of dollars loaned. Top Executive: Pamela Conboy Local Headquarters: 100 W. Washington St., Phoenix, AZ 85004
Infusionsoft Infusionsoft provides small-business solutions built exclusively to help conquer the chaos through a Web-based system that combines intelligent automation with powerful CRM, e-mail marketing, e-commerce and social media tools. Top Executive: Clate Mask Local Headquarters: 2065 W. Obispo Ave., Ste. 103, Gilbert, AZ 85233 Offices (Local): 1 Phone: (480) 807-0644 Website: www.infusionsoft.com
Fasturtle Fasturtle is a Web design firm that specializes in SEO marketing, website design, e-mail marketing and maximizing social media opportunities for companies of all sizes. It focuses on providing detailed planning and technological expertise to small business. Top Executive: Eric Olsen Local Headquarters: 7575 E. Redfield Rd., Ste. 213, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 348-0467 Website: www.fasturtle.com
Terralever Terralever was founded with the goal of providing innovative digital marketing solutions that bring about quantifiable results. It brings insight and expertise to every project to help brands evolve with the changing online ecosystem. Top Executive: Chris Johnson Local Headquarters: 425 S. Mill Ave., Ste. 201, Tempe, AZ 85281 Offices (Local / National): 1 / 2 Phone: (480) 839-1080 Website: www.terralever.com
Business Organizations & Associations Arizona Small Business Association ASBA is the largest trade association in Arizona, representing 11,000+ member businesses and more
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than half a million employees in all 15 counties. ASBA creates opportunities for Arizona small businesses to make money, save money and achieve results. Top Executive: Rick Murray Local Headquarters: 4600 E. Washington St., Ste. 340, Phoenix, AZ 85034 Offices (Local): 2 Phone: (602) 306-4000 Website: www.asba.com
Local First Arizona Local First Arizona is a nonprofit organization working to strengthen communities and local economies through supporting, maintaining and celebrating locally owned businesses throughout the State of Arizona. Top Executive: Kimber Lanning Local Headquarters: 12 W. Camelback Rd., Phoenix, AZ 85013 Offices (Local): 1 Phone: (602) 956-0909 Website: www.localfirstaz.com
SCORE SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration and has been mentoring small-business owners for more than forty years. Top Executive: Chet Ross Local Headquarters: 2828 N. Central Ave., Ste. 800, Phoenix, AZ 85004 Offices (Local / National): 3 / 347 Phone: (602) 745-7250 Website: www.scorearizona.org
Looking for a way to fund business growth? Fortunately for you, not all lenders are the same.
“We consider FSW Funding a partner in our business.” —Cliff, founder of software development company, Arizona & Mexico
Business Services
FSW Funding promises:
1-800 Got Junk? 1-800-GOT-JUNK? offers full-service junk removal for home or business, and will work with offices, retail locations, constructions sites and more. Local Headquarters: 1939 E. Primrose Path, Phoenix, AZ 85086 Offices (Local / National): 1 / 119 Phone: 800-Got-Junk Website: 1800gotjunk.com
• Fast funding for working capital • Flexible and innovative lines of credit • NO termination fees, contracts, or minimum volume requirements
DataPreserve, Inc. DataPreserve provides proven scalable data protection platforms for business continuity, using its enterpriselevel software, hardware and SAS-70 data center operations to protect business data whether it is on a single computer or part of a multi-office global enterprise operations network. Top Executive: Charles Bowen Local Headquarters: 15300 N. 90th St., Ste. 550, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 422-1600 Website: www.datapreserve.com
Express Digital Express Digital is a leader in data capture, document management and scanning systems,
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Contact us today to learn more about our factor financing services
602-535-5984 4530 E. Shea Blvd, Ste. 142, Phoenix, AZ 85028
www.fswfunding.com robyn@fswfunding.com
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Small Business Resources specializing in integrating with existing software and services of businesses. Top Executive: John Longobardo / John Principale Local Headquarters: 8585 E. Bell Rd., Ste. 103, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (602) 569-8600 Website: www.edsaz.com
Maricopa County Attorney’s Office — Check Enforcement The Maricopa County Attorney’s Office established the Check Enforcement Program to assist victims. The primary responsibility of the program is to recover restitution for victims. Top Executive: Bill Montgomery Local Headquarters: 301 W. Jefferson St., Phoenix, AZ 85003 Offices (Local): 1 Phone: (602) 372-7300 Website: www.maricopacountyattorney.org
Reliable Background Screening Reliable Background Screening has been providing clients a unique and thorough screening service for employers, business owners, franchisers and landlords by offering background checks on new employees, franchisee applicants and new residents and tenants. Top Executive: Rudy Troisi
Local Headquarters: 8149 E. Evans Rd., Ste. C-9, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (602) 870-7711 Website: www.reliablebackgroundscreening.com
Stoney-Wilson Business Consulting, L.L.C.
Top Executive: Bryon Carney Local Headquarters: 2375 E. Camelback Rd., Ste. 300, Phoenix, AZ 85016 Offices (Local / National): 1 / 60 Phone: (602) 954-9000 Website: www.cassidyturley.com
Julie Stoney and Bob Wilson bring more that 60 years of business experience to the table. Their background in banking, finance and communications provides the foundation for advising businesses in need of banking and credit, cash management, strategic planning and sales management services. Top Executive: Julie Stoney / Bob Wilson Local Headquarters: 6501 E. Greenway Pkwy., Ste. 103583, Scottsdale, AZ 85254 Offices (Local): 1 Phone: (602) 370-1776 Website: www.stoneywilson.com
CBRE, Inc.
Commercial Real Estate
GPE Companies
Cassidy Turley BRE Commercial Cassidy Turley BRE Commercial is a full-service commercial real estate firm serving metropolitan Phoenix and secondary Arizona cities. A leader in the Phoenix market since 2003, it offers brokerage investment and advisory services in office, industrial, retail, multihousing and land as well as property management.
CBRE offers strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting. Top Executive: Craig Henig Local Headquarters: 2514 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 1 / 166 Phone: (602) 735-5555 Website: www.cbre.com/phoenix GPE Commercial Advisors and GPE Management Services are leading providers of commercial real estate sales, leasing, property management and consulting solutions for business, office, medical, dental, retail and industrial properties in the Greater Phoenix metropolitan area. Top Executive: David Genovese Local Headquarters: 2777 E. Camelback Rd., Ste. 230, Phoenix, AZ 85016
Tired of Shuffling through Paperwork? Express Digital Solutions is Arizona’s leading provider of Electronic Document Management and Scanning Solutions. We provide a single source “one stop shop” service.
Find all your files instantly, effortlessly — No more searching for missing documents Significantly improve office productivity saving time and $$$ Save $$$ on document storage both On- AND Off-site Total Compliance with all regulations and laws—Disaster Recovery plan included An Experienced Award-Winning Local Company Providing Exceptional On-Site Service Fully HIPAA compliant Discount Document Scanning Service also available Finally… A Paperless Solution Everyone Can Afford!
480-682-4734 60
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www.edsaz.com EXPRESS DIGITAL SOLUTIONS
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Offices (Local): 1 Phone: 480-994-8255 Website: www.gpe1.com
Employee Benefits / Insurance Focus Benefits Group Focus Benefits Group is an independent group employee benefits consulting company that offers a variety of services to help clients receive the greatest amount of benefit coverage for the most cost-effective dollar. It helps clients by looking at ways to reduce healthcare costs, improving the overall benefits they can offer employees. Top Executive: Bill Weaver Local Headquarters: 4120 N. 20th St., Ste. B, Phoenix, AZ 85016 Offices (Local): 1 Phone: (602) 381-9900 Website: www.focusbenefits.com
Holmes Murphy & Associates Holmes Murphy is a premier independent riskmanagement and insurance brokerage firm. While today’s insurance market sees consolidations and mergers resulting in conglomerates more concerned about the bottom line, Holmes Murphy remains focused on clients’ needs and is committed to accelerating business success. Top Executive: Daniel Keough
Local Headquarters: 14850 N. Scottsdale Rd., Ste. 280, Scottsdale, AZ 85254 Offices (Local / National): 1 / 11 Phone: (480) 951-1776 Website: www.holmesmurphy.com
H. A. Mackey & Associates H. A. Mackey helps employers offer the most competitive and cost-effective benefit programs to retain and recruit valuable employees. Areas of expertise include medical, life, dental, vision, disability and long-term care. Personalized services and carefree relationship are just some of the benefits employers can rely upon. Top Executive: Henry A. Mackey Local Headquarters: 5114 N. 33rd St., Phoenix, AZ 85018 Offices (Local): 1 Phone: (602) 595-4476 Website: www.hamackey.com
Healthcare Insurance Blue Cross Blue Shield of Arizona BCBSAZ offers various health plans for individuals, families and small and large businesses. BCBSAZ also offers Medicare supplement plans to individuals over age 65. Top Executive: Rich Boals Local Headquarters: 8220 N. 23rd Ave., Bldg 2, Phoenix, AZ 85021
Offices (Local): n/a Phone: (602) 864-4899 Website: www.azblue.com
Delta Dental of Arizona Delta Dental is passionate about oral health and its importance to generations of families. It works to improve oral health by emphasizing preventive care and making dental coverage accessible to a wide variety of employers, groups and individuals. Top Executive: Allan Allford Local Headquarters: 5656 W. Talavi Blvd., Glendale, AZ 85306 Offices (Local): n/a Phone: (602) 938-3131 Website: www.deltadental.com
United Healthcare of Arizona United Healthcare provides a full spectrum of consumer-oriented health benefit plans and services to individuals, public sector employers and businesses of all sizes, including more than half of the Fortune 100 companies. Top Executive: Jeri Jones Local Headquarters: 1 E. Washington St., Ste. 1700, Phoenix, AZ 85004 Offices (Local): n/a Phone: (800) 985-2356 Website: www.uhc.com
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Small Business Resources Human Resources / Hiring DHR International, Inc. DHR is the fifth-largest retained executive search firm in the United States. DHR conducts search assignments at the levels of board director, C-suite and functional vice president. Its consultants are experienced professionals who are retained by Fortune 1000 as well as prominent venture firms and early-stage companies. Top Executive: David Bruno Local Headquarters: 11811 N. Tatum Blvd., Ste. 3076, Phoenix, AZ 85028 Offices (Local / National): 1 / 51 Phone: (602) 992-7810 Website: dhrinternational.com
HR Choice For nearly 30 years, HR Choice has been providing professional human resource programs, training and services to small and medium-sized businesses. It offers outsourced employer solutions and work collaboratively with its clients to support their tactical and strategic human resource management needs. Top Executive: Susan Williams Local Headquarters: 14175 W. Indian School Rd., Ste. B4, Goodyear, AZ 85395 Offices (Local / National): 1 / 2 Phone: (623) 935-7759 Website: www.hrchoice.com
Maricopa Workforce Connections Maricopa Workforce Connections collaborates with state and community partners to continually identify and develop local talent to meet the needs of local businesses. Services include employee recruitment and training to fill job vacancies by a diverse and broad range of qualified workers at no charge to business owners. Top Executive: Patrick Burkhart Local Headquarters: 234 N. Central Ave., 3rd Floor, Phoenix, AZ 85004 Offices (Local): 3 Phone: (602) 506-4888 Website: www.maricopaworkforceconnection.com
Information Technology BestIT Corp. BestIT’s services include a complete catalog of technology support services, comprehensive professional practices, innovative security solutions and cost-effective business strategies, resulting in maximized uptime, predictable IT budgets and quick response times. BestIT provides robust, leading-edge IT business and technology solutions. Top Executive: Harry Curtin Local Headquarters: 3724 N. 3rd St., Phoenix, AZ 85012 Offices (Local / National): 1 / 2 Phone: (602) 772-3556 Website: www.bestit.com
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CMIT Solutions CMIT Solutions offers a broad menu of technical support and IT services that all point toward one goal: helping small businesses run smoothly and be prepared for anything. Top Executive: Bruce Newman Local Headquarters: 14988 N. 78th Way, Scottsdale, AZ 85260 Offices (Local / National): 1 / 135 Phone: (480) 419-3931 Website: www.cmitsolutions.com/ phoenix-northeast-valley
OneNeck IT Services Corp. OneNeck is a leading hosted application management and managed services provider that offers a broad scope of services at mid-market prices which provide customers with tailored and flexible IT solutions. Top Executive: Charles Vermillion Local Headquarters: 5301 N. Pima Rd., Ste. 100, Scottsdale, AZ 85250 Offices (Local / National): 1 / 11 Phone: (480) 315-3000 Website: www.oneneck.com
Law Firms Donald W. Hudspeth, P.C. The law firm of Donald W. Hudspeth guides the smallbusiness owner through the complicated and often tricky legal problems related to the formation of their small business. The firm provides both practical and legal advice based on a knowledge and experience in business law. Top Executive: Donald Hudspeth Local Headquarters: 3030 N. Central Ave., Ste. 604, Phoenix, AZ 85012 Offices (Local): 1 Phone: (602) 265-7997 Website: www.azbuslaw.com
Polsinelli Shughart, L.L.P. Polsinelli Shughart offers clients the full array of business law services with a local presence and tremendous national and international reach. Top Executive: Ed Novak Local Headquarters: 1 E. Washington St., Ste. 1200, Phoenix, AZ 85004 Offices (Local / National): 1 / 16 Phone: (602) 650-2000 Website: www.polsinelli.com
Ryley Carlock & Applewhite Ryley Carlock & Applewhite provides legal support to clients in real estate, resort and hospitality, gaming, software and information technology, publishing, accounting, architecture, management consulting, engineering and other professional services, construction management, retail sales, Internet, telecommunications and manufacturing. Top Executive: Rodolfo Parga Local Headquarters: 1 N. Central Ave., Ste. 1200, Phoenix, AZ 85004
Offices (Local / National): 1 / 6 Phone: (602) 258-7701 Website: www.rcalaw.com
Office Furniture Copenhagen Imports Copenhagen is focused on helping clients improve productivity by designing for them the perfect work environment, from executive suites to functional home offices. Top Executive: Erik Hansen Local Headquarters: 1701 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 4 / 3 Phone: (602) 266-8060 Website: www.copenhagenliving.com
Goodmans Interior Structures Goodmans represents millions of quality products from manufactures that include Herman Miller, Geiger, Davis, Nemschoff, Nucraft, Fixtures, Global, Hon, National, La-Z-Boy and more than 400 others. Services include planning through installation. Top Executive: Adam Goodman Local Headquarters: 1400 E. Indian School Rd., Phoenix, AZ 85014 Offices (Local / National): 4 / 1 Phone: (602) 263-1110 Website: www.goodmansinc.com
Target Commercial Interiors Creating capable spaces for the workplaces in all fields, Target Commercial Interiors services include shopping for products, financing, project management, planning and installation. Ongoing services are asset management, warehousing and more. Top Executive: Steve Thomas Local Headquarters: 8530 S. Priest Dr., Phoenix, AZ 85284 Offices (Local / National): 1 / 6 Phone: (480) 533-8326 Website: www.targetcommercialinteriors.com
Payroll Services Human Capital Strategies A partner to small business, Human Capital Strategies is a comprehensive firm that is all about driving business profits through their services, which include payroll, human resources, employee benefits and risk management. Top Executive: Jason Knight Local Headquarters: 2152 S. Vineyard Ave., Bldg. 6, Ste. 117, Mesa, AZ 85210 Offices (Local): 1 Phone: (480) 962-1580 Website: www.hcscando.com
Paychex, Inc. Paychex is a recognized leader in the payroll, human resource and benefits outsourcing industry. Top Executive: n/a
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Local Headquarters: 16404 N. Black Canyon Hwy., Ste. 240, Phoenix, AZ 85053 Offices (Local / National): 1 / 101 Phone: (602) 266-3660 Website: www.paychex.com
Pay-Tech Pay-Tech has been family-owned and -operated since 1979, with professionals who are trained and certified to bring clients customized payroll, accounting and HR solutions. Top Executive: Rene Brofft Local Headquarters: 640 E. Purdue, Ste. 102, Phoenix, AZ 85020 Offices (Local): 1 Phone: (602) 788-1317 Website: www.pay-tech.com
Telecommunications / Mobile AT&T Small Business AT&T Small Business Services offers a comprehensive portfolio of innovative wireless solutions, from e-mail and messaging to industry-specific business applications. Top Executive: n/a Local Headquarters: 20830 N. Tatum Blvd., Phoenix, AZ 86050 Offices (Local / National): n/a Phone: (480) 515-7000 Website: smallbiz.att.com
Cox Business Cox Business provides voice, data and video services for more than 275,000 small and regional businesses, including healthcare providers; K-12 and higher education; financial institutions; and federal, state and local government organizations. Top Executive: Steve Rizley Local Headquarters: 20401 N 29th Ave., Phoenix, AZ 95027 Offices (Local / National): n/a Phone: (623) 594-1000 Website: www.coxbusinessaz.com
Telesphere Telesphere is the leading pure-play provider of unified cloud communications, delivering carrier-grade performance and support for wireline and mobile devices to businesses over its private IP MPLS network, which is one of the largest of its kind in the nation. Top Executive: Clark Peterson Local Headquarters: 9237 E. Via de Ventura, Scottsdale, AZ 85258 Offices (Local / National): 1 / 4 Phone: (480) 385-7000 Website: www.telesphere.com
For more information on these companies, visit inbusinessmag.com or each individual website through our digital version of this publication.
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SCOTTSDALE COMMUNITY COLLEGE
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Index Index by Name
Franco, Roberto E., 14
Lehmann, Greg, 16
Rogers, Bill, 43
Beaird, Jay, 42
Gerdes, Lee, 42
Leichtfuss, Margaret, 40
Roland, Pamella, 32
Berman, Susan, 32
Glenner, Moe, 66
Logan, Dee, 20
Roubik, Debra, 33
Blaney, Robert, 57
Gore, Al, 31
Lopez Rogers, Marie, Mayor, 12
Sadvary, Tom, 43
Bovino, Beth Ann, 18
Gross, Christopher, 37
Low, Jodi, 41
Salcido, Gabe, 52
Breslau, Paul, 41
Hadany, Avi, 16
Lyon, Scott, 43
Saldate, Marcario, Rep., 24
Broome, Barry, 11
Hadany, Jana, 16
Mackey, John, 31
Scearce, Leticia, 16
Bustamante, Jerry, 24, 33, 51
Hoofnagle, Chris Jay, 16
Mangen, Carol, 49
Sealy, Jason, 48
Butler, Don, 20
Hughes, Don, 33
McClendon, Bob, 20
Sisodia, Rajendra, 31
Capello, Laura, 32
Hunt, Brett, 20
McCune Davis, Debbie, Rep., 24
Smith, Scott, Mayor, 12
Chan, Anthony, Ph.D., 18
Hunter, Michael, 33
McPheters, Lee, 18
Solis, Brian, 31
Coggeshall, Stephen, Ph.D., 16
Jakobsson, Markus, Ph.D., 16
Mitnick, Kevin, 16
Stanton, Greg, Mayor, 32
Davis, Todd, 16
Jordan, Craig, 33
Montague, David, 16
Staver, Mike, 30
Dozer, Karie, 33
Kelly, Pam, 41
Murphree, Julie, 20
Thompson, Charles P., 14
Eisen, Ori, 16
Kidder, Rick, 39
Murray, Rick, 47, 57
Tibshraeny, Jay, Mayor, 12
Elfline, Jim, 40
Kinney, Suzanne, 24
Petznick, Pat, 32
Villa, Beth, 42
Forese, Tom, Rep., 24
Korte, Virginia, 40
Pollack, Elliott, 18, 22
Wexsler, Ilan, 16
Council for Identity Protection, 16
Maricopa Industrial Development Authority, 14
Tempe Chamber of Commerce, 35
McClendon’s Select, 20
U.S. Conference of Mayors, 12
Index by Company 1-800-Got-Junk?, 10
Cox Business, 5
41st Parameter, The, 16
Cox Media, 42
5 Arts Circle, 10
Delta Dental, 3
Alerus Bank & Trust, 17
DMB Associates, 43
Alliance Bank of Arizona, 67
Double L Ranch, 7
Amplify U, 41
Driver Provider, The, 23
APS, 40
Economic Club of Phoenix, 34
Arizona Center for the Blind Document Destruction, 42
Elliott D. Pollack and Company, 18, 22
Arizona Chamber of Commerce and Industry, 24, 34
Export-Import Bank of the United States, 16
Arizona Commerce Authority, 14 Arizona Community Farmers Market, 20 Arizona Department of Agriculture, 20 Arizona Farm Bureau, 20 Arizona Hispanic Chamber of Commerce, 34 Arizona Small Business Association, 14, 24, 33, 34, 47, 57 Arizona State Legislature, 24 Arizona Technology Council, 34 Association for Corporate Growth — Arizona, 34
Epcor Water, 41
Express Digital, 60 Farmers Insurance Group, 44 Fraud Practice, The, 16 Fresh Start Women’s Foundation, 32 FSW Funding, 59 Grand Canyon University, 49 Greater Phoenix Chamber of Commerce, 34 Greater Phoenix Economic Council, 11 H. A. Mackey and Associates, 63 Healthy Arizona Worksite, 48 Holmes Murphy, 6
At Work for Arizona Business Loan Alliance, 14
Homeowners Financial Group, 43
AT&T, 15
Hotel Valley Ho, 43
Avilan Storied Diamonds, 16
House Commerce Committee, 24
Avondale, City of, 12
House Higher Education and Workforce Development Committee, 24
BBVA Compass, 37
HootSuite, 14
Berkeley Center for Law & Technology, 16
ID Analytics, 16
Big Brothers Big Sisters of Central Arizona, 32
Infusionsoft, 17 International Coaches Federation, 14
Biltmore Bank of Arizona, 14, 16
Italian Restaurant, 37
Blue Hound Kitchen & Cocktails, 37
JPMorgan Chase & Co., 18
Brain State Technologies, 42
JPMorgan Chase Economic Outlook Center, 18
Breslau Insurance & Benefits, Inc., 41 Central Phoenix Women, 34 Chandler, City of, 12
KTAR, 33 Kumbuya, 14
Chick Rotisserie & Wine Bar, 37
LifeLock, 16
Christopher’s Restaurant and Crush Lounge, 37
Maricopa County Attorney’s Office, 6
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Maricopa Community Colleges, 19, 33
McDowell Village Senior Living, 42
Troon North, 36
Mesa Chamber of Commerce, 34
U.S. Small Business Administration, Arizona District, 33, 57
Mesa, City of, 12
United Healthcare, 4
National Association of Women Business Owners, 34
Waste Management Phoenix Open, 9
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J a n u a r y 2013
65
Roundtable
A Candid Forum
Personal Return on Investment
An individual’s selfish motivation can be harnessed for the overall good of the company by Moe Glenner Selfish is a word commonly used in a derisive manner. When Gordon Gekko says, “Greed is good,” we tend to not empathize with him and instead opt to scorn his “all for me” mentality. Furthermore, we have been counseled from an early age about the virtues of sharing and giving, albeit for some of us it was a forced lesson. But is this really the best lesson? There is a common misperception that a selfish person makes for an unmanageable employee. After all, the reasoning is, they are in it only for themselves. Perhaps this person will actually destroy the team dynamic that we all strive for within our organizations. We frequently seek out the “all for one and one for all” mentality. We truly want the “rah, rah, go team” imbued throughout our organization. We also love to repeat the mantra “There is no ‘I’ in ‘team.’” What we overlook is, while there may not be an ‘I’ in ‘team,’ there is a ‘me.’ Organizations don’t pay positive attention to the ‘me’-oriented employees at their own peril. They miss on the opportunity to gain highly self-motivated team members whose working end-result will significantly benefit the organization. The selfish employee can actually be the hardest-working member of the team. However, we do need to distinguish between the selfish employee and the obstinate employee. A selfish employee is seeking satisfaction of his or her personal drivers. This employee is willing to do the work and sometimes even ‘go beyond’ in his or her personal driver satisfaction efforts. A selfish employee is not obstinate or insubordinate, but rather focused on attaining personal goals. By providing the path to this satisfaction, an employer can harness this selfish motivation for the greater good of the organization. An obstinate employee, on the other hand, is someone who refuses to do the work assigned and frequently conjures up avoidance methods. There may be many reasons for this resistance, such as confusion and fear, which, if left unaddressed, will result in the employee being a serious risk for the continuing viability of the team. But if the underlying reasons are successfully addressed, this employee can be transformed into a productive team member. Consider the great statesman Gandhi.
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When he would move to a new area, he would immediately busy himself with communal needs. When others pointed to him as an example of unselfish giving, he would pointedly correct them. His communal activities were merely a means to him benefiting from them. In other words, while his actions were altruistic, his intentions were selfish. Thus, selfish can also be a useful trait for the greater good. An organization is also a community. This community relies on the diverse input from its members and the able direction of its leaders. One of the primary tasks of a leader in this community is building a motivated team. This is not a static task; it is, rather, a continuing activity with endless iterations. Without constant attention and nurturing, today’s motivated team can easily be tomorrow’s disillusioned crew. However, motivation doesn’t exist in a vacuum, nor is it isolated or coincidental. The progressive organizational/team leader understands that motivation is created and harnesses it through careful delivery of personal drivers — in other words, being able to deliver on each team member’s Personal Return on Investment (PROI). A grand bargain must be made with each team member. In exchange for the individual’s active personal investment, manifested by cooperation, participation and contribution, the leader will provide to that individual a personal return. The key is to understand the nature of those personal returns. For some, it may be public recognition, enhanced status within the
company, promotion opportunities, increased compensation or even just an easier and/or more efficient way to accomplish everyday tasks. There may be more than one return for a single person and there may be other returns not enumerated above. Either way, it behooves the attentive and progressive team leader to be able to deliver on these returns. While employers give significant credence to the team-oriented employee, they frequently overlook the value of the selfish employee. This is a common mistake. While team-oriented employees ostensibly operate for the greater good, they ignore their own personal drivers. It is likely their motivation levels will drop off at some future time. The selfish employee is motivated by personal drivers. Satisfy those drivers and deliver on the PROI, and that employee will continue indefinitely with a high level of self-motivation. For the team leader who finds the PROI of the team members, communicates to them the path for achieving them and then delivers on his end of the grand bargain, a team of selfish employees can indeed be an organization’s best friend and a powerful tool for continued success. PURElogi3stics, L.L.C. purelogistics.com
Moe Glenner is the founder and president of PURElogistics, L.L.C., a leading consulting firm that specializes in change management, logistics and supply chain strategies. In his recently released book Selfish Altruism: Managing & Executing Successful Change Initiative, Glenner explores best practices in organizational change.
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