In Business Magazine - May 2012

may 2012

Commercial Property Mortgage Issues Put Tenants in a Tough Spot

Their Secret Ingredients to Success Power Lunch Business Events By the Numbers

This Issue Scottsdale Area Chamber of Commerce Arizona Small Business Association

$4.95 INBUSINESSMAG.COM

{ Teaching by example. That’s what we’re all about too. } With more plans and dentists to choose from, we are proud to have insured healthy, happy smiles in Arizona for the past 40 years!

Every Smile Matters. Get Delta Dental.

MySmileAZ.com

LET OUR SPACE INSPIRE YOURS.

ITH US 8530 South Priest Dr. Tempe, AZ 85284

If you do, Target Commercial Interiors can enhance the effectiveness of your business environment. Our clients say that we are the best when it comes to creating high-performance, sustainable work environments that bring people together to focus, collaborate, socialize and learn.

phone 602.252.6971 www.targetcommercialinteriors.com

May 2012

Put us to

www.inbusinessmag.com

work for you

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

You can rely on SCF Arizona to help

Partner Organizations

you meet your workers’ comp insurance needs. At SCF we offer coverage for injured workers while protecting your

Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

bottom line. Let SCF show you how.

Visit scfaz.com to learn more or to get a Quick Quote.

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 • www.aztechcouncil.org

Kristine Kassel, President NAWBO Phoenix Metro Chapter (602) 772-4985 • www.nawbophx.org

Get a Quote 1.888.706.4070 | En español 602.631.2302 | scfaz.com Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com

passionate about your profitability.

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org

At Holmes Murphy, we think providing you with innovative answers to the ever-increasing challenge of rising healthcare costs is one of the most important things we can do to affect your company.

That’s why we take the time to get to know your company’s challenges and consult with you to provide the highest-quality, lowest-cost solutions — tailored especially for your business.

Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona.

As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

Associate Partners

If you are looking for an advisor who understands the complexities of Employee Benefits and a partner who helps you develop the

Ahwatukee Foothills Chamber of Commerce www.ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com

right financial solutions, call Holmes Murphy — the nation’s 22ndlargest* broker.

Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org HOLMES M UR

14850 N. Scottsdale Road, Suite 280 Scottsdale, AZ 85254 480-951-1776 | 877-951-1776 holmesmurphy.com

Y& PH

ASSOCIATE S

Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com YEARS

DES MOINES | CEDAR RAPIDS | DAllAS | DAvENPORt DENvER | KANSAS CIty | MADISON | OKlAhOMA CIty OMAhA | PEORIA | SCOttSDAlE | SIOux FAllS | St. lOuIS

Learn more about how Holmes Murphy will be a trusted advocate for you — visit holmesmurphy.com. ©2012 Holmes Murphy & Associates

6

M ay 2012

Glendale Chamber of Commerce www.glendaleazchamber.org

* Business Insurance, July 2011.

Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

inbusine ssmag.com

IN BUSINESS MAGAZINE

Contents

MAY 2012

MAY 2012

Commercial Property Mortgage Issues Put Tenants in a Tough Spot

INNOVATORS & ENTREPRENEURS

Their Secret Ingredients to Success

MAY 2012 • inbusinessmag.com

24 Innovators & Entrepreneurs:

Innovators & Entrepreneurs Power Lunch Business Events By the Numbers

This Issue

$4.95 INBUSINESSMAG.COM

Scottsdale Area Chamber of Commerce Arizona Small Business Association

Their Secret Ingredient for Success

Up-and-coming innovators and entrepreneurs will help drive Arizona’s economy.

Brett Maxwell talks with some of the “latest and greatest” innovators and entrepreneurs who are thriving in Arizona.

Departments

11 Guest Editor

Features

20 The Media Mileage of Corporate Philanthropy

Companies adopt different styles of giving to promote their goals. Many Valley businesses discuss with J. Rentilly the impact their program for making a donation has for them and for the community organization they support.

30

32

30 The Rise of the Socially

Networked Work Force

Michelle Manafy zeroes in on the hows and whys of companies engaging the growing work force of “digital natives,” for whom social networking is as natural as breathing.

GoDaddy.com CEO Warren Adelman introduces the “Innovators & Entrepreneurs” issue.

38 Mortgage Issues Cloud Commercial Leasehold Options for Businesses

Just because there are a lot of vacancies does not mean it’s a renter’s market, as RaeAnne Marsh shows in this look at the Valley’s commercial real estate market.

Special Sections

45 55 8

Scottsdale Area Chamber of Commerce Arizona Small Business Association

M ay 2012

American Diabetes Association in Phoenix American Liver Foundation, Desert Southwest Division

12 Feedback

Noted business and community leaders Trevor T. Hill, Wendy Jameson and Sethuraman Panchanathan respond to IBM’s burning business question of the month.

14 Briefs

“Energize Phoenix — Big Bottom-line Pay-off for Small Investment,” “McDowell Corridor Redevelopment Moves Forward,” “Targeted Retention Tool: Predictive Analytics,” “Online Procurement System Enhances Opportunity for Local Small Businesses” and “Innovative MBA Program at W. P. Carey School of Business — Weekends and Online Fulfills the Degree in 18 Months“

32 Relevance Is Key in Marketing and Sales 18 By the Numbers Research proves that, more often than not, it’s not about price. Jaynie L. Smith provides insights into where to place the marketing emphasis.

34 Nonprofit

Workers Comp is a reason for business to relocate here. Plus: Key economic indicators provide a sense of the health of the local economy.

22 Trickle Up

View from the top looks at how Jason Kaplan grew The Driver Provider from one leased car to a worldwide fleet of chauffeured transportation.

31 Books

New releases explore the impact of social networking in the workplace.

42 Assets

Tesla Model S and portable power sources

43 Power Lunch

“Thinking Outside the Herb Box” Plus: “Get on the Bandwagon: Go BBQ for Lunch”

66 Roundtable

“Online Sales Tax: Can Retail Make a Level Playing Field?”

Business Education

40 The Social Media

Advantage

Digital marketing expert Josh Dolin introduces his three-part series on social media with a look at its power in an integrated marketing strategy.

Networking

35 On the Agenda

In Business Magazine guide to events by chambers of commerce, trade organizations and other business associations that help build business

inbusine ssmag.com

May 2012 • Vol. 3, No. 5

Goodbye Junk. Hello Relief!

HOW OUR SERVICE WORKS:

Publisher Rick McCartney

We provide all-inclusive prices with easy billing options We provide same-day and off-hours service, including weekends We are fully insured, including general liability and Workers’

Editor RaeAnne Marsh

Compensation Our teams are professional and uniformed We offer fully customized solutions and North America-wide

Trusted since 1989

coverage 61% of materials we collect avoid landfill through reuse,

Art Director Benjamin Little Contributing Writers Josh Dolin Mike Hunter Sue Kern-Fleischer Michelle Manafy Brett Maxwell J. Rentilly Jaynie L. Smith Alison Stanton

recycling and waste-to-energy (incineration).

Photographer-at-large Dan Vermillion

Advertising

Book online at 1800gotjunk.com or call 1-800-468-5865

We’re the company Oprah told you about, The New York Times, Dr. Phil, The Wall Street Journal, and Good Morning America

Operations Louise Ferrari

lferrari@inmediacompany.com

Senior L ouise Ferrari Account Executives lferrari@inmediacompany.com

April Ray

aray@inmediacompany.com

Cami Shore

cshore@inmediacompany.com

By choosing us you’ve helped save billions of pounds of junk from the landfill. Learn more at 1800gotjunk.com

Greg Stiles

gstiles@inmediacompany.com

CommAd_Artwork.indd 1

12-03-21 9:49 AM

YO U R C O N N E CT I O N

to the

ARTS

More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

SU PPORTI NG Arizona Opera | Ballet Arizona | Phoenix Art Museum The Phoenix Symphony | Scottsdale Cultural Council

President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little

Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com

B E C O M E A C O R P O RATE PARTN E R AN D J O I N TH E S E 5 ARTS S U P P O RTE R S:

480.281.1524 | www.fiveartscircle.org

10

M ay 2012

Vol. 3, No. 5. 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. © 2012 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.

inbusine ssmag.com

Warren Adelman, Chief Executive Officer, GoDaddy.com

Guest Editor

It’s All in the Execution

As Go Daddy’s Chief Executive Officer, Adelman is responsible for Go Daddy’s day-to-day-operations.

He also heads up the Governance and Policy Committee, which is dedicated to oversight of Go Daddy’s standards and practices.

Adelman joined Go Daddy after numerous senior positions in the technology market, including vice president of strategic relations at Network Associates (now McAfee) and CEO of NeoPlanet, a customer interaction software company that was sold to Compaq.

Adelman also sits on the Industry Advisory Board at Arizona State University’s College of Technology and Innovation, and previously served as a member of the ICANN Affirmation of Commitments Accountability and Transparency Review team.

Innovators and entrepreneurs are a big part of what makes business thrive in any community.

Here in the Valley, their tenacity, ingenuity and perseverance are making our community popular for startups and even for established corporations who are reinventing themselves or creating new products.

GoDaddy.com is fortunate to have an “inside look” at online entrepreneurs. As the world’s largest provider of Web hosting, domain name registrations and new SSL Certificates, we nurture online businesses of just about every kind you can imagine. We see how one person’s good idea can be transformed into a money-making company; how small businesses can thrive on the Internet and grow bigger, even as the economy struggles. We help power the Internet and help make the dreams of startup companies come true. A business community that embraces and supports those dreams will provide a path of success. It’s a powerful message that demonstrates commitment to the Valley’s growth today, tomorrow and beyond.

In this issue of In Business Magazine, Brett Maxwell uncovers some secrets to the success of innovative businesspeople in our community who have strengthened, empowered and energized business in the Valley. He speaks with founders of companies filling unique, perhaps newly identified, niches and companies carving new space in established industries. Maxwell also addresses the power of the Valley as an incubator of small and mid-sized businesses’ efforts to take advantage of opportunities that make doing and growing business here an attractive prospect. We are home to some of the nation’s most innovative and entrepreneurial businesses, which is a great starting point to building our economy.

Businesses also strengthen the community by “giving back,” and many incorporate giving programs into their company culture in ways that reinforce the business’s brand as well. J. Rentilly explores the different ways companies contribute time, talent and resources, and the impact on the community and the business.

In the Focus feature, RaeAnne Marsh presents a view of the commercial real estate picture in Metro Phoenix that may be an eye-opener for businesses hoping to take advantage of the high vacancy rate in commercial leasehold property. This issue’s Trickle Up spotlights Jason Kaplan, president and CEO of Driver Provider, as Sue Kern-Fleischer shares how his drive for business created a fleet of chauffeured transportation.

And Josh Dolin introduces the first of his three-part education series on social media with an overview on the importance of integrating social media into a company’s broader marketing strategy and tips on how to make those efforts more effective.

In Business Magazine continues to strive to inform and engage readers with pertinent and timely information to help build business in our community. I hope you find these stories inspiring.

Sincerely,

Warren Adelman Chief Executive Officer GoDaddy.com

Great Thinkers Build Business Historically, the Valley has been a bit of a hot bed for innovators and entrepreneurs. Some of the famed companies, from Intel and Motorola to PetSmart and First Solar, give us our stars.

While the Facebooks of the world may pop up elsewhere, business leaders here overwhelmingly agree that opportunity is real and that policies, incentives and economic conditions favor the start-up here.

inbusine ssmag.com

We thank Warren Adelmen, CEO of Go Daddy, a company that is so well-known for its innovative thinking and executions, for guiding this “Innovators & Entrepreneurs” special issue. As we host our first major event (The Annual Guest Editors Economic Symposium) this month, we at In Business Magazine are reminded of our purpose — to bring people and organizations together to build business in the Valley.

— Rick McCartney, Publisher

Connect with us: 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

M ay 2012

11

Feedback

Valley Leaders Sound Off

Executives Answer

Innovators and entrepreneurs add strength to a business community. What are aspects of the business climate here that make it conducive to innovators and entrepreneurs to found or grow a business?

Co-founder, President and CEO Global Water Resources Sectors: Technology, Utilities

Wendy Jameson

CEO and Co-founder Colnatec Sector: Technology

We specifically chose Phoenix as the place to nurture our water business.

Being focused on water reclamation, I was searching for a place where water had intrinsic value (a desert!), where population growth was strong (even through the latest downturn, in-migration has remained positive), and the regulatory environment supported Total Water Management: water, wastewater and recycled water integrated together to reduce the overall impact of development on water resources. We looked at a number of possibilities — in Florida, Texas and California — and ultimately decided on Phoenix.

For the past decade, we have been developing water management practices and tools that are working in the toughest of environments.

With that comes terrific credibility, and we have been able to leverage our successes here to other areas nationally and internationally. In addition, being at the confluence of three major universities, being located on the CANAMEX corridor and having access to young, vibrant talent has been critical for our success. For us, the choice of Phoenix as a center of our universe has been outstanding.

For 12 of the 15 years I’ve lived in Arizona, I’ve been either an independent business consultant or entrepreneur.

Aside from the great weather, safe neighborhoods and excellent schools, I’ve found the business climate very supportive of small business, whether two employees or 100+. In particular, I’ve found the people in government at the town and state levels eager and willing to help. If you invest time in getting to know them as I did in the early days of Colnatec, they seek to help you.

Additionally, the creation of the Arizona Commerce Authority Innovation Challenge Grant is a tremendous boost for young technology companies. As a 2011 winner, we got not only financial assistance that enabled us to double our capacity, double our staff and double our office space in the last 12 months, we got media exposure and access to additional services we might otherwise not have. Doubling the Challenge Grant proceeds in 2012, as they have done, demonstrates a commitment by our leaders to fostering the seeds of success for any community-entrepreneurial enterprise.

Global Water Resources gwresources.com

Colnatec colnatec.com

Trevor T. Hill has a Bachelor of Engineering and served in the Royal Canadian Navy until 1994. He has led two successful investor-owned utility roll-ups in Arizona and Texas.

In 2003, he co-founded Global Water Resources, and in 2009 launched FATHOM™, a technology platform to provide state-of-the-art services to utilities. Global Water was the largest cleantech IPO in 2010, and is the largest pure-play water company on the TSX.

Wendy Jameson is CEO and co-founder of Colnatec, a high-tech sensor manufacturer in Gilbert. She has 20+ years experience in technology sales, marketing and administration and has been recognized as a “Champion of Change” by the White House. Colnatec has been awarded two research grants by the Department of Energy and is a recipient of the 2011 Arizona Commerce Authority Innovation Challenge Grant.

Sethuraman Panchanathan

Senior VP of Knowledge Enterprise Development Arizona State University Sector: Higher Education R&D

Arizona, even at 100, is still a young state that provides immense opportunities for innovation and entrepreneurship activities. While cities like Phoenix, Mesa, Glendale, Tucson, Chandler, Gilbert and Tempe are large and growing, they still embrace the attitude of friendliness where everyone knows each other, making it easy to get connected and to collaborate. For business, that often means it’s a good climate to get great things accomplished, which in turn is a nurturing environment for accelerators and incubators.

12

M ay 2012

Chambers of commerce, government leaders and research universities are focusing on this potential of Arizona to be a leader in innovation by leveraging not only the natural resources of our great state, like the sun for solar energy and biofuels, but, more importantly, the ever-increasing talent base. ASU, in addition to providing a highly-trained work force for industry to be successful, also serves as a focal point for research excellence, innovation, entrepreneurship and economic development.

Arizona’s business climate exemplifies the energy and enthusiasm of youth to dream big … becoming an ideal location for innovators and entrepreneurs.

ASU Office of Knowledge Enterprise Development researchmatters.asu.edu

As senior vice president of Knowledge Enterprise Development at Arizona State University, Sethuraman Panchanathan is responsible for advancing research, economic development, innovation and entrepreneurship by working with faculty, researchers and students. Panch, as he is known to colleagues, is also director of the Center for Cognitive Ubiquitous Computing, whose flagship project iCARE, for individuals who are blind and visually impaired, won the 2004 Governor’s Innovator of the Year – Academia Award.

inbusine ssmag.com

Bottom photo: Tim Trumble/Arizona State University

Trevor T. Hill

Are you pointed in the right direction?

Set your sites on our ready-to-work talent pool!

Arizona is transforming its economic landscape to include more renewable energy businesses and a pipeline to the skilled workforce it demands. As part of Arizona’s Energy Sector Partnership, Maricopa Workforce Connections is poised to provide strategic alignment of public and private resources to meet your business’ specialized needs. Our no-charge strategic assistance and support may be just what is needed to map the most effective route to your destination.

Let our workforce professionals work with your human resource professionals to find your next CFO, “green” certified technician, office assistant, electrician or

other open position; matching your specific needs with the specialized skills of our job seekers.

For more than 20 years MWC has been helping area businesses succeed in securing qualified talent, training current employees to use new industry technology, and providing lay-off aversion resources and transition strategies.

By using MWC’s high-value no-charge resources businesses save valuable recruiting dollars while gaining exposure to job seekers with the diverse backgrounds, skills, education and experience most desired.

Increase your bottom line Without touching your checkbook — call today!

Part of Arizona’s Workforce Development Network

More than 20 years of experience helping businesses succeed.

Call (602) 506-WORK schedule meeting with a local professional!

Call to (602) 506-WORK a (9675) to schedule a meeting withworkforce a local workforce professional or visit Equal opportunity employer/program.

Auxiliary aids and services are available upon request to individuals with disabilities. www.maricopaworkforceconnection.com today!

MWC products and services are made available through federal funding provided by the Workforce Investment Act.

Briefs

Quick and to the Point

McDowell Corridor Redevelopment Moves Forward

By taking part in the Energize Phoenix project, which offers cash incentives and financing for energy efficiency improvements, the AJ’s Fine Foods store on Central Avenue at Camelback Road will reduce its annual electric consumption by more than 15 percent and reduce its demand for electric generation resources by more than 21 kilowatts, according to Bashas’ spokesperson Kristy Jozwiak. “The most significant result was a 77-percent reduction of electric current coming into our store. All of this store’s equipment now runs cooler and more efficiently, with less maintenance,” she says.

Mick Dalrymple, of Arizona State University Global Institute of Sustainability, is project manager for the collaborative project that involves the City of Phoenix and Arizona Public Service on which ASU is doing evaluation and research. He says Energize Phoenix came out of the city’s interest in creating a “green” corridor around the new light rail system. “It was centered on the idea that light rail is more sustainable, and people who are interested in reducing their carbon footprint would gravitate to that area.” And focusing on a concentrated area — basically, a mile-wide area along a 10-mile stretch of Metro light rail — would create a culture of energy efficiency, he adds. “The Department of Energy latched onto this idea. It was unique because of the idea of maybe creating this critical mass.”

A $25-million grant from the DOE Better Buildings Neighborhood Program and the American Recovery and Reinvestment Act in 2010 put the project in motion, but some investment is still required from the businesses and residents who choose to participate, to implement the retrofitting of lighting and other energy efficiencies. “Contractors have said some people are skeptical because it’s so good of a deal, they think there’s some kind of hidden catch or the contractor’s trying to scam them,” says Dalrymple, noting that only a fraction of eligible businesses have yet taken part. Bashas’ positive experience, however, has the company eager to come back for more. “The process was seamless. It worked out so well that we’ve expressed interest to the City in conducting similar energy efficiency projects in our other Phoenix stores,” says Jozwiak.

Businesses and residents within the Energize Phoenix boundaries can find names of APSapproved contractors, listed by their specialties, on the project website. Phoenix has a limited time to spend the grant money; any monies remaining after June 2013 must be returned to the DOE. —RaeAnne Marsh

With zoning and lease agreements now completed, Mark Taylor will be bringing a 444unit multi-family project to McDowell Road at 74th Street. “It’s the first true major revitalization project in that area,” says Scottsdale City Manager David Richert. ASU SkySong will soon be breaking ground on its third building — with a large tenant already on board — and bringing more multi-family construction to the area in a project planned to wrap the parking structure on the south side of the site.

The City of Scottsdale’s community visioning session in 2009 was focused on motivating development along the McDowell Corridor, which stretches roughly from Loop 101 to 64th Street. Notes Richert, “It’s really to try to get those properties back into active businesses, and part of that, people recognize, is going to take some more housing units. And that’s why the multi-family, in particular at the level that Mark Taylor builds, is so appealing.”

Richert says Fry’s is working with the owner of its existing spot in conjunction with neighborhood development interests to expand, bringing to the area a “more upscale retail establishment for groceries than they have had in a long time.” And a new development at Pima and McDowell roads will see a QuikTrip that will be “a better-looking facility than they normally would do, but for Scottsdale they were willing to make some concessions.”

Among other activity in the Corridor — a designated revitalization district — Chapman Auto Group has purchased the old Ford dealership and is investing more than $1 million to refurbish it. Referring to the two blocks from 68th to 70th streets, where buildings that once housed car dealerships now stand empty, Richert says the property owners are still paying on a lease through 2016. “It’s been challenging to get something going when we have money coming in even though there’s nothing operating there.”

For the property that was once a car dealership at 64th Street and McDowell, April 6 marked a new beginning as AN Collision Center of Tempe sold its 2.53-acre parcel for $2.25 million to an affiliate of Sunchase Holdings, which, with this purchase, has finally acquired all of the separate pieces of the site. Yet to be worked out, according to Richert, is what kind of land-use redevelopment the new owners will actually be working on.

—RaeAnne Marsh

Energize Phoenix energizephx.com

City of Scottsdale scottsdaleaz.gov

Energize Phoenix — Big Bottom-line Pay-off for Small Investment

14

M ay 2012

inbusine ssmag.com

dblranch.com 866-684-4159 real estate near jackson hole, yellowstone & grand teton national parks

escape the heat with a wyoming retreat 80° summer temps, wandering wildlife, 9000-foot rugged mountain peaks, countless recreational opportunities, and exquisite rustic luxury homesteads on the banks of the Salt river - a true Western paradise, the Double L Ranch.

Shared Saloon, Game Room and Theater • Guest Homes for Friends and Family • 27 Lakes and Ponds on the Salt River •

Horses and Equestrian Barn • Private Golf Course • Blue Ribbon Trout Waters •

No Wyoming State Income Tax • Large Riverside Lots from $695,000 • Furnished Custom Turnkey Homes •

Our full-time staff takes care of everything from grounds, to horses, to guest facilities, drift boat shuttles, even forwarding your mail. We are close enough to enjoy, just far enough away from the hustle of Jackson Hole and the Parks. Call for more information.

inbusine ssmag.com

M ay 2012

15

Briefs

Quick and to the Point

Targeted Retention

Online Procurement System Enhances

Based on studies by its actuaries, professional services company Deloitte has found it can predict down to the individual level those factors that would play a part in the risk of an employee leaving a given company. “The beauty of it is, we use information that’s [already] available in their system,” says Robin Erickson, Ph.D., an analyst for Deloitte. She notes that what motivates an employee to stay may not be what the employer thinks it is, and the emerging science of predictive analytics can help employers identify employees at risk of leaving and why, enabling them to create a targeted intervention strategy.

Specific factors for each organization can be identified as having statistical significance. These may include how many paid time-off hours an employee has taken, the number of nights the employee has traveled and the ratings of the employee’s projects as well as the unemployment rate in the economy.

“As we come more out of the recession, [businesses] need to focus more on creating organizations where employees want to stay,” says Dr. Erickson. One element in accomplishing this is understanding employees’ needs and their expectations regarding such aspects of their job as money, career development and the company culture.

—RaeAnne Marsh

Businesses that are little and local just got a big boost in the procurement process for the City of Phoenix. Implementation has begun on an online Vendor Management System the city council approved on March 6 that not only will allow organizations to identify which vendor can provide what they need, but will notify the businesses when their products and services are being sought.

It turns on its head the old system that required businesses to painstakingly search, department by department, to find out if there were any appropriate opportunities for them to bid on. And the focus, for smaller purchases, will be on awarding the order to local companies.

“Local sourcing is key for our homegrown businesses and new technology speeds up the process so we can build upon Phoenix’s rising economy,” Mayor Greg Stanton stated in his recent State of the City address, referring to the Phoenix City Council action on the VMS. In addition to the benefit to the vendors, research indicates that such a program increases the number of vendors bidding for the job, resulting in greater value to the soliciting organizations.

Specifically, the policy is that all goods and services procurements of less than $50,000, where the award is to the lowest bidder, be limited to businesses that self-certify themselves in the system as headquartered or located in Maricopa County and qualifying under Federal Small Business Administration guidelines as a small businesses. The city, as part of its management of the program, will be responsible for verifying the businesses’ self-certification.

The city has begun holding vendor procurement forums to introduce the new VMS, with a goal of registering all current and potential vendors by July 2012.

—RaeAnne Marsh

Deloitte deloitte.com

City of Phoenix, Contracting with the City phoenix.gov/business/contract

Tool: Predictive Analytics

Opportunity for Local Small Businesses

Innovative MBA Program at W. P. Carey School of Business — Weekends and Online Fulfills the Degree in 18 Months ASU’s highly ranked W. P. Carey School of Business is expanding the reach of its MBA program starting in January 2013 by offering an innovative “hybrid” option to help working professionals earn the business degree — weekend classes, in a classroom setting for the stimulating interaction of face-to-face contact, combined with online studies, which give students the flexibility to fit the coursework into their professional and personal schedule.

Noting the weekend-online combination “seemed the ideal way” to enable professionals to squeeze in new skills and lessons, W. P. Carey School of Business Dean Robert Mittelstaedt says, “We’ve been looking at different ways to make it as convenient as possible for people to get an MBA while still working at their regular jobs.”

16

M ay 2012

“You get the same internationally recognized faculty and fantastic peer network as you do in all of our other highly ranked MBA programs, but with a lot of independence in your schedule,” says Stacey Whitecotton, associate dean for W. P. Carey MBA programs.

“These students will be networking in classes with high-level peers from various industries,” he adds. “They will have an average of six years of work experience, and they will have choices that will add to the depth of their MBA experience, such as international electives and areas of emphasis in subjects like marketing, finance, international business and supply chain management.”

Total estimated cost for the student and tuition fees to complete the program is $53,000, comprised of W. P. Carey MBA

Program tuition, ASU Graduate tuition and ASU’s mandatory fees. Credit hours for the five-semester program will be 12 for Spring 2012, six for Summer 2012, 15 for Fall 2012, 12 for Spring 2013 and three for Summer 2013 — the summer scheduling significant because per-unit cost for the summer semesters is much lower than spring and fall.

The new program will be held on campus every other weekend on Friday evenings and Saturdays. It will not only take less time to complete than most other MBA programs — just 18 months — but students can finish about 40 percent of their core-course work online.

The application period for next January›s class has already begun.

—RaeAnne Marsh W. P. Carey School of Business wpcarey.asu.edu

inbusine ssmag.com

“They’ll stand behind us” Jeff and Diane Starkweather, Starkweather Roofing Alerus Bank & Trust Commercial Banking Customer

“With their Midwest roots, Alerus Bank & Trust has a ‘we’re here to take care of you’ mentality that you don’t find in other banks. We finally feel like we’re working with a partner, not just a banker.”

Read the Starkweather Roofing story—and others—at alerusbiz.com.

480.905.2430

| 17045

N Scottsdale Road

| Scottsdale,

AZ 85255

Nationwide Background Checks Since 1990, Reliable Background Screening has been providing our clients unique and thorough background screening services.

Employee Screening

Tenant Screening

• Protect Against Negligent Hiring Liability

• Evaluate Credit Report

• Uncover Criminal Backgrounds • Safeguard Employees & Clients • Maintain FCRA Compliance

• Reduce Skips & Evictions • Protect Owners from Liability • Maintain FCRA Compliance

800-787-2439 or 602-870-7711 www.reliablescreening.com

If you could have known, you SHOULD have known.® inbusine ssmag.com

M ay 2012

17

By the numbers

Metrics & Measurements

Workers Comp Rates are Economic Driver to Local Economy Many Arizona companies do not know how lucky they are to be doing business here. In a time when every dollar counts and companies are drilling into budgets to save at every level, an unspoken benefit is our workers compensation rates. Arizona is ranked the 14th lowest nationally and the 2nd lowest in our region.

Workers comp insurance premiums are calculated according to job classifications from the 50 states and the District of Columbia, of which classifications there are 450 to 600.

The premium rate is set based in dollars and cents per $100 of payroll. In Arizona, the National Council on Compensation Insurance determines the classification rate and the experience modification factor (claim experience) to set the index rate. Arizona’s index rate is 1.71.

“Out of 51 states, including Washington, D.C., Arizona’s rate is ranked among the lowest,” says Rick DeGraw, senior vice president and chief administrative officer at SCF Arizona. “This is a significant benefit to businesses relocating to Arizona because it is a cost savings over other regional states.”

Businesses that are relocating or those companies that the state’s economic

Key Indicators

development groups work to attract to Arizona see this as the unspoken benefit to business. “If we were in California, which has a rate of 2.68, with our same payroll of nearly $30 million annually, we would be paying roughly $666,000 more each year,” says DeGraw. “That is a significant annual savings that we realize and so do businesses relocating here or that exist here.”

The National Federation of Independent Business polled business owners in their most recent Small Business Problems and Priorities survey in 2008, and found that workers comp costs ranked as the tenth most important problem for business owners and predicted that, with rising healthcare costs, workers comp insurance costs would continue to be a burden for small firms in particular. This same survey cites Arizona as a state whose work to reform and continue to lower workers comp rates will attract companies on the move and benefit existing enterprise.

National Council on Compensation Insurance Holdings, Inc. ncci.com National Federation of Independent Business nfib.com SCF Arizona scfaz.com

Key indicators for the Metro Phoenix 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 (Metro Phoenix)

Number

Unemployment (Feb. 2012)

YOY % Change

7.8%

-4.92%

1,741.5

2.08

No. of Housing Permits (Feb. 2012)

1,566

67.56

Consumer Confidence* (Q1 2012 to date) (Arizona)

69.5

9.64

22.78

-1.23

Job Growth (in thousands) (Feb. 2012)

Average Hourly Earnings (Feb. 2012)

Eller Business Research

Retail Sales (Arizona) Retail Sales (in thousands)

Jan. 2012

Feb. 2012

Total Sales

6,348,013

6,753,385

6.99%

6.63%

Retail

3,722,557

4,044,640

Food

1,042,109

1,045,934

Restaurants & Bars

839,613

904,544

Gasoline

743,734

758,267

709,002

700,947

Change Y0Y

Contracting

Eller Business Research

Workers’ Compensation Premium Rate Rankings

Real Estate

Rates are ranked every two years. This is the 2010 ranking. Arizona is ranked 14th lowest among the 51 jurisdictions.

Rates in Our Region State 1 2

Colorado Arizona

Highest Rate Nationally Index Rate

State

Index Rate

Commercial: Office***

Q1 2012

Vacancy Rate

28.2%

28.3%

Net Absorption (in SF)

90,965

-92,385

Rental Rates (Class A)

$23.36

Commercial: Indust.***

1.39

1

Montana

3.33

1.71

2

Alaska

3.10

Vacancy Rate

3

New Mexico

1.91

3

Illinois

3.05

Net Absorption (in SF)

4

Nevada

2.13

4

Oklahoma

2.87

5

California

2.68

5

California

2.68

Rental Rates (General Industrial)

Residential: Total Sales Volume

Q1 2012

$24.45

Q1 2011

12.0%

13.9%

1,508,614

2,461,764

$0.49

$0.52

Mar. 2012

Mar. 2011

9,587

9,212

$139,000

$120,000

Index Rate: Premium rate indices are calculated

Total Median Sale Price

Index Rate

based on data from 51 jurisdictions, for rates in effect

New Build Sales Volume

726

427

as of Jan. 1, 2010. The Index rates reflect adjustments

New Median Sale Price

$227,469

$211,677

Lowest Rate Nationally State

Q1 2011

1

North Dakota

1.02

2

Indiana

1.16

3

Arkansas

1.18

4

District of Columbia

1.32

the employer’s experience rating, premium discount,

5

Virginia

1.39

retrospective rating and dividends.

for the characteristics of each individual state’s residual market. Rates vary by classification and insurer in each

Resale Sales Volume

state. Actual cost to an employer can be adjusted by

Resale Median Sale Price

8,861

8,785

$131,000

$115,000

* Rocky Mountain Poll ** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. *** Cassidy Turley BRE Commercial Latest data at time of press

18

M ay 2012

inbusine ssmag.com

535

375 4c

Grow your business with an SBA loan

Work with the #1 SBA lender in the nation* At Wells Fargo we’re committed to helping small businesses succeed.

Our SBA loans can help you: • Acquire a new business • Expand your existing business • Finance the purchase of real estate and equipment • Meet capital needs Plus, customized terms and payment options provide flexible financing options.

Make the most out of your business — contact us today

• Stop by a Wells Fargo location to talk with a banker • Call 1-800-545-0670 (Monday through Friday, 7:00 a.m. to 7:00 p.m., Central Time) • Visit wellsfargo.com/biz

* Wells Fargo is the #1 SBA lender by dollars according to the U.S. Small Business Administration as of September 30, 2010.

All loans are subject to credit approval. For discussion purposes only. © 2011 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. (668702_03535) 668702_03535 7.875x10.375 4c.indd 1

10/25/11 3:29 PM

Bottom line

The Buck Stops with You

The Media Mileage of Corporate Philanthropy Companies adopt different styles of giving to promote their goals

by J. Rentilly

Though the economy continues to endure the deeper valleys of a rollercoaster half-decade, with employment rates still sagging, real estate sales only beginning to regain a pulse and consumer spending remaining stagnant, many Arizona small businesses and corporations are nevertheless embracing philanthropic opportunities as a means of staying connected to their communities while boosting morale and team spirit within their offices.

Relying on recent studies that show consumers draw not only to a company’s product but its values, too, several Arizona companies and businesspeople are do-gooding in significant ways through a combination of cash and goods donations, volunteerism, scholarship programs and contest initiatives. Not only does this spirit giving boost a company’s positive standing in the community, but it fosters a corporate culture of teamwork and good spirits. Corporate philanthropy, then, is good for the business, inside and outside the cubicle.

“Strong businesses thrive in strong communities,” says Target spokesperson Donna Egan, who oversees the retail giant’s corporate giving and partnerships, including with Children’s Museum of Phoenix. “It’s about community engagement and corporate social responsibility.”

Since 1946, Target has given five percent

20

M ay 2012

of its income — more than $3 million a week, on average — to the communities it serves, according to Egan. In the Phoenix area, this includes recent total makeovers of three elementary school libraries, the gifting of more than 50 field trips, arts and early childhood reading grants, and more. Target has also worked closely with the Children’s Museum, even prior to its June 2008 opening, sponsoring free admission for children and families on the first Friday of every month and playing an active role on the museum’s board of directors. “It’s an ongoing opportunity for Target to give back to the community,” says Egan, “and to make valuable connections with local children and families.”

Debbie Gilpin, president and CEO of the Children’s Museum — which benefits from the charitable contributions of more than a dozen area businesses, including United Healthcare, Delta Dental of Arizona Foundation, Shamrock Farms, Emerson Network Power, Waste Management, SRP, CVS, Borders and Ford — says the 30 million Americans who annually visit one of the nation’s 300 children’s museums appreciate the corporations that make their very existence possible. The Children’s Museum prominently features the logos of sponsoring companies on many of its banners, brochures and other promotional literature, while many companies also enjoy

the spoils of positive media coverage in response to their philanthropic endeavors.

But the benefit of donations, volunteering and sponsorship isn’t only in elevated profile or the possibility of bigger sales for a company; it’s an investment in a community’s very future, Gilpin says. “Companies recognize that the success of children in their learning, social skills, health and personal development is directly correlated to how successful our community will be, and what type of workforce they will have in the future,” Gilpin says. “Giving is a win-win.”

When Pyxl, a digital marketing firm, expanded to open a Tempe office, general manager Eric Rutin knew the company’s fortune would be directly tied to its connection with the community. “We’ve always been a company that believes in giving back to the community,” says Rutin, who launched a contest for local charities, the winner of which would receive “an enterprise-quality” digital makeover and Web redesign, valued at $50,000.

The contest allowed the community to vote via social media for its favorite of 14 nominated charities, with the winner — Free Arts for Abused Children of Arizona — garnering 14,000 votes. The new Free Arts website, from a design team led by Pyxl senior designer Dereck Bermudez, will debut online this summer.

“In addition to being a labor of love and supporting a truly great charitable organization, our donation provides an excellent referral base to build our awareness and grow our business,” says Rutin. “[The contest] made a lot of sense from a business standpoint by injecting visibility of Pyxl’s capabilities to many of Phoenix’s most influential leaders.”

For seven years, Adam Goodman, president and CEO of the third-generation, familyowned Goodmans Interior Structures, an office furniture dealer, has run the Good Eye for the Good Guys contest, which provides five-figure office makeovers for an area nonprofit organization. Goodmans recently completed work on a $20,000 office remodel for CHEEERS (Center for Health Empowerment Education Employment Recovery Services), which nurtures adults with behavioral health challenges to achieve their goals and dreams, moved not only by the organization’s mission and the leadership of its CEO Mitchell Klein, but with a full awareness that the limited resources of many nonprofits does not afford functional, let alone comfortable, working inbusine ssmag.com

spaces. Goodman believes the contest engages the public at large in a manner a single, inhouse choice would not, inviting participants an entry not only to Goodmans’ own philanthropic efforts, but to a wide range of valuable, but often unsung nonprofit organizations, catalysts of positive change within a community.

“The vision of Goodmans is to change the community,” says Goodman. “Good Guy promotes greater teamwork while bringing about social change and inspiring others to join with us to find ways to impact the community. That’s good for everyone.”

Robyn Barrett, founder of FSW Funding, a leading factoring firm offering flexible and affordable lines of credit for small and midsize businesses, is even more precise in her giving, honoring individual student entrepreneurs with an Arizona State University scholarship she launched three years ago.

“The scholarship was established to encourage young people to explore the possibilities of being an entrepreneur, which is the backbone of America, and I did it at ASU because my educational experience there helped me become the businessperson I am today,” says Barrett, who enjoys a modest amount of positive local and regional press surrounding the contest.

Giving, she says, is a way of thanking a community for its business, which often creates more business, which allows for more giving, which strengthens the community overall.

Executives at Chipotle and United Healthcare Employer & Individual of Arizona, both deeply committed to community giving in all varieties, concur: Giving is not only right and good, but it’s good for business, too.

“By investing in the communities where we live, work, and play, we help create a more active and vibrant community and workforce,” says Jeri Jones, president and CEO of United Healthcare, which provided a $150,000 grant to the Children’s Museum. “Strong corporate philanthropy improves our relationship with the people we serve, and that’s a good thing for every one of us.”

AccelerAte

revenue & Business Growth

Accelerating Business Performance Through Innovative Thinking

throuGh systems Installing fun systems that grow revenue!

Developing the people you have!

Customer Service people that really up-sell!

Hiring sales people that can & will sell!

Meet with us.

After one hour you will know more, produce more and see if we fit.

(602) 840-0003 www.conquesttraining.com © 2011 Conquest Training Systems, Inc. Phoenix, Arizona

Children’s Museum of Phoenix childrensmuseumofphoenix.org FSW Funding factors-southwest.com Free Arts for Abused Children of Arizona freeartsaz.org Goodmans Interior Structure goodmansinc.com Pyxl thinkpyxl.com Target target.com United Healthcare uhc.com

inbusine ssmag.com

M ay 2012

21

Trickle Up

A View from the Top

Jason Kaplan: Steering Success

Driver Provider founder followed instincts despite risks

by Sue Kern-Fleischer

22

M ay 2012

understand the ratio of the team members needed to fulfill growth plans, and to have that plan in place when the dream starts coming true.

Kaplan advises exercising discretion when taking on new accounts in the start-up years of a new venture, observing, “When you are working hard to build your business, it is important to be disciplined to accept clients that fit into your growth plan.” The importance of remaining focused is a lesson he learned by experience. “I accepted a long-term assignment at a discounted price,” he shares. “At the time, we had a small fleet, [so this] prevented me from accepting other full-paying transportation requests. While we obviously honored the contract, it was a difficult lesson to learn as in this instance it wasn’t done by strategic design.”

When the Great Recession hit, the chauffeured transportation industry had to make adjustments to remain competitive.

Corporate travel accounted for a large percentage of The Driver Provider’s business, and it slowed dramatically. “We learned to operate more efficiently and effectively during the economic downturn. While slowed, we’re pleased that we continue to see annual growth,” he says, observing that corporate and personal travel continues to improve gradually.

Increasing fuel prices have also affected Kaplan’s business. Summertime is always more expensive because of the additional cost to make summer-grade fuel and the increased demand as more people travel in the summer months. “Fuel is a huge cost of our daily business and we try to be as strategic as we can with the scheduling of our fleet and optimizing routes,” he says.

Clients can access chauffeured services through The Diver Provider 24 hours a day and 365 days a year, regardless of the time zone. When Kaplan reflects upon the days when he was driving solo, he is grateful for the lessons he learned along the way. And he is also glad he trusted his instincts. “One of the

The Driver Provider Road to Success

■■ Jason Kaplan came up with the concept of ■■ ■■ ■■

■■ ■■

The Driver Provider in 1995 and, in 1997, sold his car to lease his first company vehicle — which he drove himself, working odd hours to gain clients.

Now nearing its 15th anniversary, The Driver Provider’s revenues have grown an estimated 700 percent since Kaplan launched his business.

The Driver Provider offers worldwide chauffeured transportation for corporate and personal travel, road shows, groups and events.

The Driver Provider employs approximately 100 full-time and seasonal employees in Phoenix, Scottsdale and Tucson in Arizona and Jackson Hole in Wyoming, and access to an international fleet that ranges from sedans and SUVs to limousines and motor coaches.

The firm is part of an international affiliate network with the same service standards, and employees can make one phone call and reserve chauffeured service in multiple cities worldwide.

Clients can access chauffeured services through The Diver Provider 24 hours a day and 365 days a year, regardless of the time zone.

best things I did was to trust my intuition, and of course, [I had] a little luck,” he says.

The Driver Provider driverprovider.com

inbusine ssmag.com

Photo: The Driver Provider

Jason Kaplan is not an advocate of driving blindly, yet when he looks back at when he launched his chauffeured transportation business, The Driver Provider, he attributes some of his success to his naiveté. He came up with concept in 1995 and, in 1997, sold his car to lease his first company vehicle — which he drove himself, working odd hours to gain clients — and then purchased a second car, slowly building his business from there. “I took many risks in those initial years with minimal business experience, but I had a strong belief that if my company could provide exceptional customer service, the business would grow,” Kaplan says, adding, “Had I more business experience, I would have otherwise pursued a more conservative path. That was one of the biggest blessings in my initial growth spurt.”

Now nearing its 15th anniversary, The Driver Provider offers worldwide chauffeured transportation for corporate and personal travel, road shows, groups and events. The company employs approximately 100 fulltime and seasonal employees in Phoenix, Scottsdale and Tucson in Arizona and Jackson Hole in Wyoming, and provides access to an international fleet that ranges from sedans and SUVs to limousines and motor coaches.

Kaplan’s firm is part of an international affiliate network with the same service standards, and employees can make one phone call and reserve chauffeured service in multiple cities worldwide.

Kaplan estimates revenues have grown 700 percent since he launched his business, and admits he made some mistakes along the way.

“In retrospect, I wish I would have solidified business mentor relationships earlier in my business growth,” he says.

Growth is good, but Kaplan says he learned an important lesson when The Driver Provider began to expand. “I quickly learned by trial and error how to augment staff and infrastructure at the right pace,” he says. Looking back, he can see the need to

Please join us for this groundbreaking event. Meet our Guest Editors for an intense discussion on the local economy.

t h Ou ont ss M Mi his n’t g T Do nin e pp Ha

Business Owners, Executives & Entrepreneurs: Topics include: • Emerging Economic Opportunities • Strengthening our Workforce • Business Funding • Government Policy and much more . . .

In Business Magazine brings together its Guest Editors for this annual event that is certain to impact your business.

In Business Magazine Guest Editors invited to attend*

Moderating Event

Ted Simons

Host, Arizona Horizon, KAET Eight

Richard L. Boals

Craig R. Barrett

Janice K. Brewer

Vicki Panhuise, Ph.D.

President & CEO Blue Cross Blue Shield of Arizona

Retired CEO/Chairman of the Board, Intel Corporation

Governor The State of Arizona

President and Owner VePoint Consulting Group, LLC

Friday, May 18, 2012 Arizona Biltmore Resort The Grand Ballroom 11:30a Registration & VIP Reception 11:50a – 1:30p Lunch & Symposium

Candace D. Wiest

Jerry Colangelo

John Huppenthal

Jos Anshell

President & CEO West Valley National Bank

Principal Partner JDM Partners

Superintendent of Public Instruction, State of Arizona

CEO Moses Anshell

Individual Lunch: $65 Tables of 10: $650 Corporate Sponsorships Available For more information: Phone: 480-588-9505 x213 Email: info@inbusinessmag.com

Donald Brandt

Howard Lein

Barbara Barrett Ph.D.† Derrick Hall

Chairman & CEO Arizona Public Service Company

Founder & Owner RE/MAX Excalibur

President, Thunderbird School of Global Management

President & CEO Arizona Diamondbacks

See the “Arizona at Work” Exhibit sponsored by Alliance Bank

Presented by:

Wyatt Decker, M.D. ††

Jim Pederson

Rich A. Rector

Donald Smith

CEO Mayo Clinic in Arizona

CEO Pederson Group, Inc

Owner & Executive Chairman Realty Executives Phoenix

President & CEO SCF Arizona

Guest Editors since November 2010

Register today at inbusinessmag.com * Most guest editors have confirmed their attendance at time of press. † Dr. Barrett replaces Ángel Cabrera, Ph.D., who was Guest Editor for our April 2011 issue, as president of Thunderbird School of Global Management. †† Dr. Decker replaces Victor F. Trastek, M.D., who was Guest Editor for our February 2011 issue, as CEO of Mayo Clinic in Arizona.

24

M ay 2012

inbusine ssmag.com

One game-changing idea or innovative product can completely change the landscape of the economy.

Whether it’s a small business that generates local jobs and keeps money circulating locally or a revolutionary product that pushes the boundaries of progression of an industry, entrepreneurs and innovators help sustain our local economy. Arizona has realized the importance of creating incentives to reward those who take calculated risks on new business ventures. The Arizona Technology Council connects the local technology community and awards individuals and companies during its annual Governor’s Celebration of Innovation event.

The Arizona Commerce Authority will give out $1.5 million in grants to winners of its semi-annual Innovation Challenge, which helps business startups get off the ground. Gangplank in Chandler helps the cause with its Roadmap to Launch program, which, throughout a 90-day period, offers counseling, mentoring and networking to potential entrepreneurs. Up-and-coming innovators and entrepreneurs will help drive Arizona’s economy, and the following businesses and people have displayed their ability to be the next crop of game changers. inbusine ssmag.com

MAy 2012

25

The revolutionary cleaning product from Scottsdale-based Screen Magic has boasted more than 700 percent growth in each month since its inception in 2010 and is now sold on four continents and in thousands of locations. Ten years ago, Tim Meester, owner and founder, spilled an expensive solution he had been developing for another business idea onto a screen door in his house while trying to clean it.

Meester realized the solution cleaned the door like magic, so he spent his spare time developing the product to make it cost effective. Then, “I read an article about how cleaning supplies were up by 20 percent because everybody had fired [their] maids,” Meester says. “So I kind of dusted off the Screen Magic idea.” Once he realized there was that emerging market for cleaning products in 2010, Meester committed most of his time to developing the solution.

Meester sells his product to Ace Hardware stores throughout the Valley.

Each Ace store is individually owned, which allows Meester to fund his business with no up-front cost through a deal agreed upon amongst himself, the manufacturer, Ace Hardware and a factoring company. “The great thing about Ace is, you can be as big or as small as you want to be with them,” Meester notes. “You don’t have to sell [your product] to the entire country overnight. You can kind of work your way up.”

The efficiency of Screen Magic is making a profound impact on the commercial window-washing industry. A spokesperson for Gilbertbased 5 Star Window Care says the product cuts the time of a job in half.

Word has spread throughout the industry, and now the product leaves by the pallet load to customers nationwide and to Canada, Australia, New Zealand and Libya. “Apparently, Screen Magic is the biggest thing to hit the window-washing community since the squeegee,” Meester observes.

VisionGate’s groundbreaking development of a lung-cancer screening process that allows early detection of the disease and helps prevent false diagnoses, which can lead to unnecessary and invasive treatments and screenings, is revolutionizing the medical field. The diagnostic test system named LuCED (lung cell evaluation device) earned VisionGate, based in downtown Phoenix, the award as Innovator of the Year amongst start-up companies from the Arizona Technology Council during last year’s Governor’s Celebration of Innovation event.

“It was important for us to win because [of our] game-changing technology,” VisionGate president Scarlett Spring says. “[We] need help to raise [VisionGate’s] profile locally so that people know right here [in Phoenix] this company is growing and producing a technology that doesn’t exist anywhere else in the world.” The company focuses on lung cancer because it kills more people than colon, breast and prostate cancers combined each year in the United States.

At the base of the company’s lung-cancer screening process is the Cell-CT technology that produces 3-D images of potentially cancerous cells in high-risk patients. The 3-D images allow doctors to analyze cells from every angle, which makes for more accurate diagnoses.

26

M ay 2012

Company founder and CEO Alan C. Nelson, Ph.D., started VisionGate in 2001 in the Seattle area on the wings of his imaging expertise. In 2009, Arizona State University recruited Dr. Nelson to become the director of its Biodesign Institute. One year later, the Phoenix native decided to bring VisionGate to the Valley despite the area’s faltering economy at the time. Spring says Dr. Nelson “sensed this was a vibrant, up-and-coming community” with a “can-do attitude embracing early technology because of a strong entrepreneurial spirit.” Spring notes Phoenix’s support of its downtown biomedical campus also factored into Dr. Nelson’s decision: “We have a commitment to this market, this market has made a commitment back to us, and we are very excited.”

Dr. Nelson left his ASU director position for a research position with the university in July 2011. This allowed him to become the head of the then-new Predictive Health Analytics initiative, which, in turn, allowed him to devote time to developing the VisionGate technology. The company achieved full automation of its CT-Cell system in January thanks in part to a $2.6-million grant it received from the National Institutes of Health in 2010. The next step is to make the screening process more affordable to potential patients and to receive FDA approval for it.

Micky Thompson and Jarret Hamstreet joined their complementary strengths in 2008 to bring a familiar business model to the transportation industry, and the result was a start-up venture worthy of a $139,000 grant from the Arizona Commerce Authority.

Post.Bid.Ship., one of the 2011 Arizona Innovation Challenge winners, matches trucking and shipping businesses together in the way Priceline.com matches empty hotel rooms with travelers. Trucks often carry cargo loads to a destination and return with an empty trailer. Post.

Bid.Ship. helps trucking businesses sell the empty space to shippers at a reduced rate. The service came at a crucial time in the transportation industry, with soaring gas prices causing layoffs for shippers and truckers. Shippers save money on transportation costs and truckers are not pulling as many empty loads across the country.

Thompson and Hamstreet met in 2008 while attending the University of Arizona’s McGuire Center for Entrepreneurship to earn their MBAs. Their passion for entrepreneurship drew them together and the duo began seeking a way to fuse Thompson’s Internet savvy with Hamstreet’s knowledge of the transportation industry. While researching how to apply their combined skills, they found a surprising lack of e-commerce in the transportation industry. They met with trucking and shipping businesses in Arizona to address the problem and Post.Bid.Ship. emerged. The idea won the McGuire Center’s year-end competition amongst all students, and that is when investors in Arizona and around the U.S. began to take notice of the idea.

Thompson and Hamstreet readied themselves to accept job offers after graduation, but professors and local investors convinced them to stay in Arizona and develop their idea. They set up shop in Tucson in fall 2010 and started developing a prototype with $500,000 from investments. They then received the ACA grant in March 2011 during inbusine ssmag.com

what Thompson says was “a critical time during our business growth cycle” because it allowed them to hire five employees and “put growth on hyper mode.” The business has since grown to 11 full-time employees and will soon add one more. The grant also allowed the business to go public, and its website now has more than 1,000 users and continues to grow. Says Thompson, “The grant served its purpose, which was to stimulate the economy [and] put people back to work.”

Chow Locally’s unique version of a community-supported agriculture model has nearly doubled revenue growth each month since the business began providing seasonal produce to customers in August of last year. The business connects its 250 shareholders and individual customers to 19 local farmers who provide their produce and meat to customers who order from Chow Locally’s website. Last year, the business won Gangplank’s “Roadmap to Launch,” a competition that awards the most promising start-up ventures. It also won a $10,000 grant in the National Bank of Arizona’s first annual “Arizona’s Next Great Business” competition.

Owners Christopher Wharton, Ph.D., and Derek Slife credit each other’s respective expertise, bootstrap funding techniques and effective communication for much of Chow Locally’s success. Dr. Wharton,

whose degree is in nutrition sciences, believes in building local food systems that generate health and sustainability within the community.

Slife’s background in computer software development helped Chow Locally build a network of local food providers. The partnership with local farmers allows them to buy products in bulk and the savings are passed on to customers. Bootstrap funding, which is the technique of investing all of the profits right back into the company, helped the business avoid the pitfalls of making expensive mistakes. “By bootstrapping, we force ourselves to be efficient,” Slife says. “We didn’t go out and buy the brand-new trucks and get the gigantic warehouses.

We were forced to be creative with a lot of our processes.”

The popularity amongst Chow Locally’s customers also helps keep investments low. This is tied to working in a local setting, which enables Chow Locally to deliver a user-friendly product to its customers.

Because of the proximity of all the stakeholders, not only is the food fresh but feedback is communicated and processed quickly. Slife says customers are “spreading the word” to friends and family through social networking. “We’ve been able to create fans rather than normal customers,” he notes. “We really haven’t done any normal advertisement.

The customers themselves are the best advertising we have.”

“What’s amazing about food is it brings people together and builds communities,” Slife says. “That’s ultimately what we’re trying to do … create these communities that share the benefits of local food.”

Micky Thompson and Jarret Hamstreet joined their complementary strengths in 2008 to bring a familiar business model to the transportation industry.

inbusine ssmag.com

MAy 2012

27

Scottsdale-based Nutricity.com has posted double-digit revenue growth every quarter since 2007, propelling the health-product retailer up the 2011 Inc. Magazine list of the 5000 fastest-growing businesses in America.

Nationally, Nutricity.com ranks number 831 overall and number 32 in the retail industry. In Arizona, the business ranks number 15 overall. In its first full fiscal year of operation, Nutricity.com posted a profit of nearly $1 million. In 2010, the last year Inc. Magazine compiled stats for its list, the business posted a $4.5-million profit, a growth of 374 percent.

“Initially, we knew the opportunity was huge but didn’t anticipate growing so fast,” says Nathan Gisvold, Nutricity.com CEO. “We went from shipping 20 orders per day to from the back of a small store to nearly 2,000 [orders] a day from our Scottsdale fulfillment center.”

The online business offers a large online catalog with more than 35,000 different types of health products, including vitamin supplements, diet supplements, personal care items, pet products and groceries. Gisvold says his initial focus was to sell vitamin supplements, but, after researching the market, he found growth opportunity for online sales of health and wellness products. Gisvold then decided to pitch his idea to a local supplement retailer and Nutricity.com hit the scene in 2006 with only $2,000 in funding. “[The business] has been able to grow organically by reinvesting a significant portion of profits back into the company,” Gisvold notes.

The business had 11 full-time employees in 2010 working in its Scottsdale warehouse, which opened in August 2009. Now, it employs 18 people, and Gisvold says the business has added three to four

employees a year since the beginning. Observing that the employees “enjoy the great environment Scottsdale provides,” Gisvold notes, “We have great access to programming talent and consultants.”

Nutricity.com ended 2011 with more than $7 million in sales, according to Gisvold, who says the company has been able to sustain its business model but is actively searching for more investors to reach its potential growth.

Kristin Provvidenti’s line of botanically based skin-care and mineral cosmetic products rose from cancer’s grim effect to become part of the healing process for the mind and body of those stricken with the disease. She named her business Stella Bella after her mother, who died of liver cancer in 2004. Five years later, Provvidenti was diagnosed with breast cancer. Eight months of chemo and radiation therapy devastated her skin, leaving her feeling powerless. “When you’re going through treatment, you get to a point emotionally where you’re very vulnerable because you’ve lost control of everything,” Provvidenti says. “You can’t even have your own skin care or makeup regimen, and it’s really frustrating.” As a makeup artist certified in paramedical makeup and cosmetic ingredients with nearly 25 years of experience, she felt stripped of something she always had been able to control.

She joined the American Cancer Society’s “Look Good, Feel Better” program, which helps build self confidence in women going through cancer treatment. She was grateful to receive donated skin-care and

“Initially, we knew the opportunity was huge but didn’t anticipate growing so fast,” Nutricity.com CEO Nathan Gisvold says.

28

M ay 2012

inbusine ssmag.com

Heart & Mind™ Network Presents

REAL BUSINESS. REAL PURPOSE. REAL PROFIT. makeup products through the program, but the products did not help her feel better about her appearance. “All you want to do is look normal and feel like yourself again, and when you put makeup on that doesn’t match your skin or irritates your skin, it’s like adding insult to injury,” Provvidenti shares.

While still in treatment, she decided to use her expertise to develop a line of beauty products made specifically for cancer patients. Key to her creation are natural ingredients and customization. She says the trick is mixing the right amount of natural botanical extracts with pharmaceutical-grade cosmetics. “You want a product that’s natural but not so benign that it’s not effective.” The products are free of the chemicals and dyes found in many beauty products that harm sensitive skin, making them desirable to cancer patients as well as those who are wary of what they put on their skin. Everything is custom blended to match a client’s skin type, tone and sensitivity.

Provvidenti sells most of her products from her two Stella Bella locations in Scottsdale, on her website and through Amazon.com. She now holds certification from the “Look Good, Feel Better” program she was once a part of.

Most of her business comes from referrals within the cancer support community.

“We are hoping one day soon to put [the] product out and get it on the shelf [through] distribution,” Provvidenti says.

5 Star Window Care 5starwindowcare.com Ace Hardware Corporation acehardware.com

Who Should Attend: CEOs; COOs; VPs of Marketing, Sales and Operations, Entrepenuers and Small Businesses.

Featured Speakers:

Rick McPartlin

Kathy Heasley

Lon Safko

Michelle Sterling

Revenue Strategist and Creator of The Revenue Game®

Branding Expert and Creator of Heart & Mind® Branding

Marketing Visionary and Author of Fuse! and The Social Media Bible

Corporate Trainer, Educator and Creator of Workforce Power™

Grow your business in 2012 and beyond. Join us for the event that unites SALES - BRANDING - MARKETING - LEARNING to drive business, purpose and profit.

We’re tackling head-on the four disciplines your company must master and we’re delivering strategies, methods and tools your business needs to succeed. The world is changing. Don’t be left behind. Register today!

Learn…

• New sales strategies that drive revenue • Branding that delivers quality leads • Organizational alignment that powers results

• New methods to take your brand to the streets • How to leverage the power of purpose and win Location:

Sponsors:

May 17, 2012 • 8a to 4p SkySong, the ASU Scottsdale Innovation Center 1475 N. Scottsdale Rd., Ste 200 Scottsdale, Arizona 85257

$398 per person Register before April 30 and save $100

Seating is limited for this highly interactive, hands on event.

Register today!

http://RealBusinessPurposeProfit.EventBright.com

American Cancer Society cancer.org Arizona Commerce Authority azcommerce.com Arizona Innovation Challenge azinnovationchallenge.com Chow Locally chowlocally.com Gangplank gangplankhq.com Look Good Feel Better lookgoodfeelbetter.org McGuire Center for Entrepreneurship entrepreneurship.arizona.edu National Institutes of Health nih.gov Nutricity.com LLC nutricity.com Post.Bid.Ship. postbidship.com Screen Magic screenmagicusa.com Stella Bella mystellabellashop.com VisionGate, Inc. visiongate3d.com

inbusine ssmag.com

M ay 2012

29

Communicate

Louder than Words

The Rise of the Socially Networked Work Force Business can leverage the strengths of an always-connected, socially networked generation

By Michelle Manafy

As the digital native generation, which has grown up immersed in digital technologies such as mobile phones, gaming and social networks, becomes our dominant employee and consumer base, those in older generations must learn to navigate a radically altered landscape in order to succeed in business going forward. Here are five key insights into the digital native generation that will help business owners and executives understand how best to leverage their distinct worldview to achieve the company’s business objectives.

They live publicly online. Without a doubt, the notion of privacy didn’t change overnight with the advent of the Internet. For better or worse, we’ve seen an evolution of “privacy.” It was once the norm to keep one’s dirty laundry tucked away out of site. More recently, we have witnessed the era of trash-mouth talk shows and reality TV. However, with the digital native, businesses must address the expectations of a generation raised in social networking environments, in which they routinely share every detail of their activities and opinions with a potentially limitless group of friends.

Tip: Often, businesses are hamstrung by outdated notions of privacy. They fail to recognize and capitalize on the digital native’s openness. We need to understand the digital

30

M ay 2012

native’s natural inclination to live publicly so as to guide these activities so that they are consistent with our business objectives. We can also build business models that leverage this openness, in the way we structure our employee activities as well as customer interactions.

They share knowledge. Once we recognize that digital natives are living their lives out loud, we can begin to understand how this behavior shapes all aspects of their lives.

Despite a good deal of hyperbole about social media and marketing via Twitter and social networks, as many as 50 percent to 75 percent of organizations limit or ban the use of social networks while on the job.

What this demonstrates is not simply a fear of exposure through inappropriate use of social technologies, it shows a distinct lack of understanding of how to effectively manage and channel the knowledge-sharing inclination of this generation.

Tip: Beyond crafting guidelines to regulate the appropriate use of social networks on the job, proactive use of socially mediated, open, collaborative ways of working can help companies capture otherwise transient knowledge assets. The old adage was that knowledge is power; for the digital native, knowledge shared is power.

They believe transparency yields trust.

Because digital natives live publicly and value knowledge sharing, organizations that demonstrate a similar level of openness will be the ones that attract and retain them as employees and customers. Digital natives make new friends, followers and fans every day.

However it is important to keep in mind that it takes a lot of work to maintain the kind of genuine relationship required with the digital native. If digital natives dislike a brand, they will make it publicly known. Luckily, the reverse is also true. Today’s ultra-connected consumer, raised to share and monitor sentiment, may seem like a fickle friend, but that’s only if organizations don’t stay involved by listening, responding, owning up and doing the work it takes to maintain a genuine, long-term relationship.

Tip: When it comes to attracting and retaining this generation as employees, it is essential to recognize that today’s best employees are also monitoring opportunities and discussing employers online. For recruiting, this can provide insights into who are the best, brightest and most social-media savvy. And for employee retention, employers can leverage these same tools and tendencies to make sure they are competitive in the market and respond to concerns in order to attract and retain the best and brightest. inbusine ssmag.com

Books They are timely, not time-managed. While most people are painfully aware that the line between “at work” and “off duty” is increasingly blurred, for the digital native this will be taken to a whole new level.

The digital native will move beyond what previous generations called a work-life balance to a new sort of work-life integration.

For the digital native, work and social activities are ever-present; they travel with the digital native anywhere and anytime. Digital natives may log more hours at their computers during the course of a day than those in previous generations, but switch back and forth between work and leisure in short bursts. Though this may strike some managers as inappropriate, it helps to realize that, while older workers might head to the break room or a co-worker’s desk to clear their head, digital natives are more likely to “info snack” or catch up on a quick burst of Facebook updates.

Tip: Moving forward, companies that emphasize collaboration, learning and socialization will see key benefits in comparison to companies that focus solely on productivity. The digital native doesn’t need to play all day to be happy. However, there’s no reason that work inside an organization can’t be constructively influenced by the expectations of our younger work force.

They believe in interactions, not transactions. Social networking, social media — with all this socializing, one might begin to wonder how any business ever gets done. Suffice it to say, it does and it will continue to do so. However, organizations that develop good social skills will have a competitive advantage over those that remain socially inept. One quality that will be essential for business success going forward is recognizing that this generation is not interested in traditional transactive business models, which are based upon exchanges of money for goods and services. This is a generation that is interested in interactions.

Tip: Unlike a transaction-based system, an interactive one is based upon social currency. All aspects of business will need to embrace interaction, from marketing and CRM to product and content creation. This generation doesn’t want to do business just with companies it views as friends; it wants to do business with itself, and expects to see its ideals and objectives reflected in the companies it chooses to do business with.

While there are many digital immigrants who are whole-heartedly adopting digital tools, it is not simply emerging technologies that must be mastered. A lifelong immersion has affected the mindset, behavior and expectations of the digital native generation. To succeed in business with them, we must understand it and build models based on this new digital native culture.

Dancing With Digital Natives: Staying in Step With the Generation That’s Transforming the Way Business Is Done DancingWithDigitalNatives.com

Michelle Manafy, co-author of Dancing With Digital Natives: Staying in Step With the Generation That’s Transforming the Way Business Is Done and director of content for FreePint, Ltd., is an award-winning writer and editor whose focus is on emerging trends in digital content and how they shape successful business practices. In addition to writing on such technology topics as digital publishing, e-content development and social media, Manafy is a sought-after speaker and a dedicated mentor to many digital natives.

Technically Speaking

The Face-to-Face Book: Why Real Relationships Rule in a Digital Marketplace Social networking, not online marketing, is the secret to soaring revenues; even in today’s digital world, 90 percent of recommendations that lead to consumer action happen offline.

Preeminent marketing professionals Ed Keller and Brad Fay reveal the secrets to harnessing this power, showing readers how they can spread the word about their products and brands faster than the speed of Facebook and with far greater impact.

The number of brand-related social networking conversations is relatively minor when compared to the billions that take place across America via offline channels in face-to-face discussions at home, in the workplace, book clubs, youth sports, parent groups — anywhere people come together and spend time talking.

Ed Keller and Brad Fay $26 • Free Press • May 2012

Platform: Get Noticed in a Noisy World To be successful in the market today, one must possess two strategic assets: a compelling product and a meaningful platform. In this step-by-step guide, Michael Hyatt, former CEO and current chairman of Thomas Nelson Publishers, takes readers behind the scenes, into the new world of social media success. He shows what bestselling authors, public speakers, entrepreneurs, musicians and other creative people are doing differently to win customers in today’s crowded marketplace. Hyatt speaks from experience. His large and growing platform serves as the foundation for his writing, speaking and consulting practice. In Platform, Hyatt teaches readers not only how to extend their influence, but also how to monetize it and build a sustainable career.

Michael Hyatt $24.99 • Thomas Nelson, Inc. • May 2012

Digital Vertigo: How Today’s Online Social Revolution Is Dividing, Diminishing, and Disorienting Us In Digital Vertigo, Andrew Keen presents today’s social media revolution as the most wrenching cultural transformation since the Industrial Revolution. Fusing a fast-paced historical narrative with front-line stories from today’s online networking revolution and critiques of “social” companies like Groupon, Zynga and LinkedIn, Keen argues that the social media transformation is weakening, disorienting and dividing us rather than establishing the dawn of a new egalitarian and communal age. The tragic paradox of life in the social media age, Keen says, is the incompatibility between our Internet longings for community and friendship and our equally powerful desire for online individual freedom; the more electronically connected we become, the lonelier and less powerful we seem to be.

Andrew Keen $25.99 • St. Martin’s Press • May 2012

inbusine ssmag.com

MAy 2012

31

Marketing

Packaged to Impress

Relevance Is Key in Marketing and Sales

Research proves that, more often than not, it’s not about price

by Jaynie L. Smith

Price is very rarely the most important criterion when people — individual consumers or businesses — make their buying decision.

The common denominators among what is important, in fact, reflect irrelevant selling.

Relevance can make or break a company’s quotas and profits. More than 95 percent of companies, however successful they may be, are leaving profits on the table for lack of relevance. There are so many ways in which good customer intelligence can lead organizations to more alignment with their customers’ buying criteria. When this

32

M ay 2012

happens, salespeople are able to minimize price as an issue.

My analysis of 10 years of double-blind customer market research for 150-plus businesses reveals that, 90 percent of the time, most businesses do not know their customers’ top values. Businesspeople all around the world would send me their newly crafted lists of competitive advantages and ask me what I thought. My answer was always the same: “It doesn’t matter what I think; it matters what your customers think.”

Instead of a business coming up with a list

of 15 reasons a customer should buy from it, the business should learn which ones are relevant to its customer and tout those.

Of course, that means finding out which ones are relevant to the customer from the customer rather than applying internally created guesses.

Most companies use the same marketing and/or sales messaging for their customers and for their prospects. Yet these two populations buy for different reasons about 70 percent of the time. The same is true for communicating to decision makers versus influencers; they, inbusine ssmag.com

“It doesn’t matter what I think; it matters what your customers think.” too, often value different attributes in their buying process. My company’s research for clients shows that more than 98 percent of the time internal staff has disagreement about what is most important to the customer.

How can a company align externally when internally there is scant agreement? Resource allocations and strategic planning decisions are too frequently made from internal beliefs and not with any input from customers. This results in great waste and missed opportunity.

Companies should tailor their responses to each target market and segment they sell to. If a company finds customers most value speedy responses when they have a problem, and that company’s customer service department is slow, it must fix customer service. It’s important to tell the customer service employees that customers have rated fast response time as their top priority.

And when a company has stats it can brag about, it should brag away: “Ninety-eight percent of customer calls are returned within 30 minutes; 2 percent within 1 hour.” Doing this, the company uses that information in two valuable ways: to make the company more relevant to customers, and to let customers know it has what they want.

Finding relevance depends on obtaining objective, unbiased feedback from customers and prospects. It means a small investment in double-blind market research to learn the “truth” about what is most valued. Hint: When the study asks what matters, price does not come up at the top of the list very often.

When asked, “What else is important?” in an open-ended question, respondents say price on average only 20 percent of the time. Note that 80 percent of the time it is not mentioned as most important.

When taking companies through our process to uncover competitive advantages and determine which are relevant, we insist the research conducted be double blind.

Before the findings are revealed, we always ask company executives — including the sales inbusine ssmag.com

teams — to guess which factors were most and least important to their buyers. Fewer than 10 percent of companies come close to guessing correctly. Our research also records the titles of team members to see how varied the views are based on their functions. We see wide data scatter in every company. No internal agreement existed in any of the 150-plus companies tested. Business owners who try this exercise in their company to see how close to relevant the company is to its customers’ perspective about what matters will likely find the results surprising.

Research data collection costs have gone down 30 to 35 percent in the past few years and can now be affordable to smaller companies. Double-blind customer market research is the gold standard and well worth the expense, but it’s not feasible for all companies. However, even a small investment in research can reap huge returns. Some less expensive and free alternatives to find out what customers want include sharing the expense with an industry association; partnering with an organization that needs the same information or a peer who is not a competitor; hiring a college intern; or creating an online survey using a free basic service, such as Survey Monkey.

Caution: What is relevant to a company’s customers today isn’t likely to be relevant tomorrow. Businesses would do well to make this an ongoing discipline — to keep listening and aligning accordingly. The dividends are worth it.

Smart Advantage, Inc. smartadvantage.com

Jaynie L. Smith, author of recent release Relevant Selling, is CEO of Smart Advantage, Inc., a marketing/management consultancy whose clients range from mid-sized to Fortune 500 companies. She consults nationally and internationally with CEOs and executives to help them define their company’s competitive advantages. Her first book, Creating Competitive Advantage, is in its 11th printing and is consistently ranked in the top 1 to 2 percent on amazon.com for marketing and management books.

She holds undergraduate and master’s degrees from New York Institute of Technology.

33

MAy 2012

33

NonProfit

by Alison Stanton

Actions to build Community

American Diabetes Association: Benefitting Many with Father of the Year Awards While most dads deserve praise, there’s a select group of fathers who just seem to go above and beyond in what they do for their families and communities. On Thursday, June 14, at the JW Marriott Camelback Inn Resort & Spa in Scottsdale, four of these extraordinary men will be honored during the Father of the Year Awards Dinner. The fundraiser, which is presented by the Father’s Day Council, will benefit the American Diabetes Association in Phoenix. Executive

director Laura Landon says the fundraiser is an emotional yet beautiful night. “It’s a life-changing experience for the dads who are honored. Many have told us they are even better dads now because of the award.”

The organization honors each nominee by presenting throughout the dinner the five-minute videos it created that include interviews with family members saying what the dad means to them. “Then, their wives and kids are present with the dads when we present everyone with their awards,” says Brittany Manning, manager of the Father of the Year and Special Events.

Snapshot

■■ One in nine people living in Arizona has diabetes.

■■ Diabetes is the leading cause of adult onset

blindness, and can also lead to kidney failure, amputation and stroke, as well as other serious health issues.

The event helps raise much-needed money for diabetes research and education, patient advocacy, and to help kids attend summer Diabetes Camps that allow them a normal camping experience while providing all the necessary special care, Landon says. Since the Father’s Day Council hosted the first Father of the Year Awards Dinner in 2001, its members and the honored dads have raised more than two million dollars.

American Diabetes Association in Phoenix diabetes.org/in-my-community/local-offices/ phoenix-arizona

■■ About 15 staff members work at the Phoenix ■■

and Tucson offices, and 500 to 700 people volunteer with the nonprofit organization every year.

Other sources of funding for the nonprofit organization include individual donations, corporate support and sponsorships.

American Liver Foundation: Choice Culinary Concoctions for the Cause his or her table in a special themed and very creative way,” says Melissa McCracken, division vice president of the American Liver Foundation. “During the event, each chef will prepare a five-course meal complete with wine for 12 guests. While preparing the meal, the chef will talk to everyone at the table, explaining why he or she is pairing certain foods together.”

About 30 chefs will be present at the fundraiser. The ballroom is closed off ahead

Snapshot

■■ The regional branch of the American Liver

Foundation relies on grants in addition to fundraising events to help support its programs and services, in accordance with the national mission to facilitate, advocate and promote education, support and research for the prevention, treatment and cure of liver disease.

of time, adding another element of surprise to the guests’ experience as they won’t know in advance what their table will look like.

McCracken hopes the event will raise about $220,000, which will help support the nonprofit’s mission of promoting liver health and disease prevention.

American Liver Foundation, Desert Southwest Division liverfoundation.org/chapters/

■■ Love Your Liver, an interactive power point

program targeted to elementary, junior high and high school students, reaches around 1,200 youth each year.

■■ The Desert Southwest Division, headquartered in Phoenix, offers more than 15 support groups throughout the four states of Arizona, Texas, Utah and New Mexico.

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.

34

M ay 2012

inbusine ssmag.com

Photos: A merican Diabetes Association (top), American Liver Foundation (bottom; Chef Christopher Gross pictured)

On Thursday, June 7, hundreds of guests will arrive at the Westin Kierland Resort & Spa in Scottsdale for the 21st Annual Flavors of Phoenix event. The fundraiser, which benefits the Desert Southwest Division of the American Liver Foundation, is a gourmet culinary event that is both unique and delicious.

“We will have a group of local chefs working inside the ballroom, and each one will decorate

www.inbusinessmag.com

May 2012

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.

Greater Phoenix Chamber of Commerce

In Business Magazine

25th Annual Impact Awards

Annual Guest Editor Economic Symposium

Thurs., May 17 — 11:30a – 1:30p For 25 years, the Greater Phoenix Chamber of Commerce has honored Valley companies as being the top in business. For this prestigious event, the winners of the IMPACT Awards are not simply named, but each nominee goes through a series of obligations that include an extensive written form and an interview by the selection panel made up of Chamber board members and member companies.

In celebration of the Awards’ 25th anniversary, the Greater Phoenix Chamber will recognize not one but two companies in each of the usual categories, one as a big business (those with more than 250 employees) and one as a small business (those with 250 or fewer employees). The five categories are Community Champion, Economic Driver, Entrepreneurial Excellence, Response to Adversity and the 2012 Impact Business of the Year. Also new this year is the announcement of the recipients prior to the luncheon at the Arizona Biltmore Resort. This year, announcement of only the two 2012 Business of the Year awards will be held until the actual event.

In the other four categories, companies of 250 employees or fewer being recognized are: 2012 Community Champion — Goodmans Interior Structures; 2012 Economic Driver — DMB Associates, Inc.; 2012 Entrepreneurial Excellence — Maddy’s Pool Supply and Service; and 2012 Response to Adversity — Phoenix Collegiate Academy.

Recognition of companies with more than 250 employees goes to: 2012 Community Champion — Hospice of the Valley; 2012 Economic Driver — Mayo Clinic; 2012 Entrepreneurial Excellence — Trident Security Services; and 2012 Response to Adversity — Macayo’s Mexican Kitchen. “These companies represent what makes the Valley’s business community and our Chamber great. It’s a privilege to honor those who do the day-in, day-out work of boosting our economy and creating jobs,” says Todd Sanders, GPCC president and CEO. The 25th annual IMPACT Awards luncheon will take place Thursday, May 17 from 11:30 a.m. to 1:30 p.m. at the Arizona Biltmore Resort & Spa. Tickets are $65 for GPCC members and $75 for non-members; tables of 10 are $750 for GPCC members and $850 for non-members (tables include priority seating and program recognition). GPCC will also honor those members who have been with the Chamber for 25 or more years during the luncheon.

—Mike Hunter Greater Phoenix Chamber of Commerce

Fri., May 18 — 11:15a – 1:30p Some of the greatest business minds in the Valley of the Sun have contributed their insight and expertise as Guest Editor of an In Business Magazine issue. On Friday, May 18, many of these men and women — see the full list on page 23 — will come together for a first-of-its-kind Annual Guest Editor Economic Symposium luncheon held at the Arizona Biltmore. They will take part in a panel discussion on emerging economic opportunities, strengthening our workforce, business funding, government policy and other important economic issues that affect us as businesspeople.

The Economic Symposium will start with a reception that affords guests an elite networking opportunity. The panel discussion will be presented during the luncheon that follows, moderated by Ted Simons, host of KAET Channel 8’s “Arizona Horizon.” Guests will have an opportunity before the panel discussion begins to submit questions that Simons will address to the panel as a whole.

Concluding the event, In Business Magazine will honor the Guest Editors for their participation with the magazine and their contribution to our business climate as business and community leaders.

Presenting sponsors of the annual Economic Symposium in 2012 are SCF Arizona, National Bank of Arizona, Eight Arizona PBS at Arizona State University, Alliance Bank, SRP, In Business Magazine, Arizona Small Business Association and Arizona Commerce Authority.

—RaeAnne Marsh In Business Magazine

inbusinessmag.com

Notable Dates This Month Sun., May 13

Mother’s Day

Sat., May 19

Armed Forces Day

Mon., May 28 Memorial 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.

phoenixchamber.com

inbusine ssmag.com

M ay 2012

35

O n t h e Ag e n d a ARIZONA CHAMBER OF COMMERCE AND INDUSTRY 2012 Update from Capitol Hill Luncheon Thurs., May 3 Noon – 1:30p

Members: $60; non-members: $75 Hyatt Regency Phoenix 122 N. 2nd St., Phoenix azchamber.com

2012 Manufacturer of the Year Summit & Awards Luncheon Fri., May 11 9:00a – 2:00p

Members: $95 (all-inclusive), $45 (summit only), $65 (luncheon only); non-members: $120 (all-inclusive), $60 (summit only), $80 (luncheon only) Hyatt Regency Phoenix 122 N. 2nd St., Phoenix azchamber.com

ARIZONA HISPANIC CHAMBER OF COMMERCE Designing Effective Presentations Wed., May 9 5:00p – 8:00p

Monthly technology workshop at The Microsoft Store.

Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

ARIZONA SMALL BUSINESS ASSOCIATION Enterprise Business Awards Luncheon Tues., May 1 11:00a – 1:30p

Members: $50; non-members: $60 Arizona Biltmore 2400 E. Missouri Ave., Phoenix asba.com

The Process of Business Development Tues., May 10 and May 24 9:00a – noon

Members: $25; non-members: $40; use promo code PBDWAIVE12 to attend for free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

1st Annual National Small Business Week Mixer Wed.., May 23 5:00p – 7:00p

Free, but space is limited so RSVP is required Center for Entrepreneurial Innovation at Gateway Community College 275 N. Gateway Dr., Phoenix asba.com

36

M ay 2012

May 2012

Please confirm, as dates & times are subject to change.

ARIZONA TECHNOLOGY COUNCIL

CENTRAL PHOENIX WOMEN

Lunch and Learn: Being an Expert Can Stall Your Career

6th Anniversary Luncheon

Tues., May 1 11:30a – 1:00p

Learn the different stages of adult development and how they relate to positions in the workplace. Presented by ImpaQ Solutions.

Members: free; non-members: $15.

Lunch is provided.

ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

Lunch and Learn: Phone Systems and Phone Service — When to Review and Why Tues., May 8 11:30a – 1:00p

What to avoid when switching carriers and when to replace/upgrade your existing phone system. Presented by Brookline Networks.

Members: free; non-members: $15.

Lunch is provided.

Integra Telecom 3540 E. Baseline Rd., Phoenix aztechcouncil.org

Lunch and Learn: Harnessing Core Competencies to Align Your Supply Chain and Streamline Manufacturing Operations Tues., May 15 11:30a – 1:00p

Learn how to enhance your employee’s knowledge of core supply chain competencies to streamline productivity.

Presented by MSS Technologies, Inc. Members: free; non-members: $15.

Lunch is provided.

Rio Salado Community College 2323 W. 14th St., Tempe aztechcouncil.org

Business + IT Expo & IT Awards – Innovation & Technology Thur., May 31 2:30p – 8:00p

Promotion of products and services as well as presentation of IT Awards — Innovation & Technology.

Expo is free to attend Sheraton Downtown Phoenix, Ballrooms D&E 340 N. Third St., Phoenix aztechcouncil.org

ASSOCIATION FOR CORPORATE GROWTH — ARIZONA CHAPTER 2012 Southwest M&A Conference Tues. – Wed., May 8 – 9

Members: $395; non-members: $495 The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale acg.org/arizona

Mon., May 7 4:00p – 5:30p

Featured Speaker: Sybil Francis Ph.D., executive director of the Center for the Future of Arizona. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Annual Awards Dinner 2012 Thurs., May 31 5:30p – 7:30p

$50 Crowne Plaza San Marcos Golf Resort One San Marcos Place, Chandler chandlerchamber.com

ECONOMIC CLUB OF PHOENIX May 2012 Luncheon: Annual Economic Outlook Tues., May 15 11:30a – 1:30p

The Economic Club of Phoenix presents the Annual Economic Outlook Luncheon featuring expert panelists.

Members: fee varies with membership; non-members: $75; advance registration required The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale econclubphx.org econclubphx.org

Greater Phoenix Urban League 48th Annual Whitney M. Young Awards Dinner Fri, May 11 7:00p – 10:00p

“Creating Opportunities for Success in Education, Employment, Housing & Healthcare.” $350 Westin Kierland Resort 6902 E. Greenway Pkwy., Scottsdale jcobb@gphxul.

MESA CHAMBER OF COMMERCE Mesa Morning Live Fri., May 11 7:00a – 8:30a

Members: $20 (at the door: $25); non-members: $30 Mesa Community College — Red Mountain Campus 7110 E. McKellips Rd., Mesa mesachamber.org

Taste of Mesa

Tues., May 15 5:30a – 7:30a

Members: $15; non-members: $25 Las Sendas Golf Club 7555 E. Eagle Crest Dr., Mesa mesachamber.org

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO University Wed., May 9 9:30a – 11:00a

Event by: Brenda Newhouse, Principal, Newhouse Studios Web Strategy.

Members: free; non-members: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

PEORIA CHAMBER OF COMMERCE Annual Awards Banquet Wed., May 23 6:00p – 9:00p

An evening of celebration with business members, community partners and friends. $50; couple: $85 Arizona BRd.way Theatre 7701 West Paradise Lane, Peoria peoriachamber.com

SCOTTSDALE AREA CHAMBER OF COMMERCE P.M. Connect – Los Tres Amigos!

Thurs., May 3 5:00p – 7:00p.

Join the Scottsdale, Phoenix and Tempe Chambers to network with hundreds of business professionals in the beautiful Sonoran landscape of the Desert Botanical Garden.

Free Desert Botanical Garden 1201 N. Galvin Pkwy., Phoenix scottsdalechamber.com

Scottsdale Area Chamber Open Golf Tournament Mon., May 7 12:30p – 5:00p

Our tournament gives you an opportunity to play great courses and enjoy businessto-business networking at its best! $150 Gainey Ranch Golf Club 7600 Gainey Club Dr., Scottsdale scottsdalechamber.com

65th Anniversary Gala and Business Volunteer Awards Fri., May 11 5:30p – 11:00p

$150 65 years is a lifetime of memories and we plan to celebrate, have fun and enjoy!

Chaparral Suites Resort Scottsdale 5001 N. Scottsdale Rd., Scottsdale scottsdalechamber.com

inbusine ssmag.com

Please confirm, as dates & times are subject to change.

A.M. Connect @ The Microsoft Store Thurs., May 17 7:15a – 9:00a

Members: free; guests: $20 The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdalechamber.com

SURPRISE REGIONAL CHAMBER OF COMMERCE Business Education Seminar Wed., May 23 8:30a – 10:00a

Continuing SRCC’s partnership with Greater Phoenix SCORE, this session is entitled “How to Create Credibility When Marketing to Skeptical Prospects.”

Presenter: Tom Trush.

Free UltraStar Cinemas 13649 N. Litchfield Rd., Surprise Mary Orta, (623) 583-0692

TEMPE CHAMBER OF COMMERCE Los Tres Amigos Thurs., May 3 5:00p – 7:00p

The Tempe, Phoenix and Scottsdale chambers of commerce join together to celebrate the annual Los Tres Amigos mixer.

Free

Desert Botanical Garden 1201 N. Galvin Pkwy., Phoenix tempechamber.org

The Westin Kierland 6902 E. Greenway Parkway, Scottsdale womenofscottsdale.org

Women in Business Conference and Trade Show

OTHER BUSINESS EVENTS

Wed., May 23 8:00a – 1:30p

Trade show with local and national organizations and businesses, luncheon, presentations by powerful speakers, and presentation of the Business Woman of the Year award.

Members: $65; non-members: $99 The Buttes, A Marriott Resort 2000 Westcourt Way, Tempe tempechamber.org

WEST VALLEY WOMEN Monthly Luncheon Tues., May 1 11:30a – 1:00p

$35 SKYE 16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org

WOMEN OF SCOTTSDALE

eWomenNetwork — 3rd Annual Women’s Success Summit Wed., May 9 11:00a – 2:30p

Sandra Yancey presents her “P.L.A.N.S.” model. Get great ideas for growing your customer base in slow times.

Members: $48 members; non-members: $58. Advance registration required.

Arizona Grand Resort 8000 S. Arizona Grand Pkwy., Phoenix eWomenNetwork.com/chapter/phoenix

Business Professionals Breakfast Thurs., May 10 8:30a – 10:00a

Come prepared with your questions, as this will be an open format for you to get the answers pertaining to your business or industry. Starbucks coffee and a continental breakfast will be served.

Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com

Monthly Luncheon Fri., May 18 11:30a – 1:00p

NATIONAL SMALL BUSINESS

WEEK

Tues., May 15 6:00p – 8:30p.

Extreme Pitch highlights innovative local products and companies from Gangplank Chandler’s ‘Rd.map to Launch’ program to share their vision with investors, media and experienced entrepreneurs. Come and vote for the winner.

Free Gangplank Chandler 260 S. Arizona Ave., Chandler extremepitch.eventbrite.com

Women in Business Breakfast Social Tues., May 29 8:30a – 10:00a

A valuable opportunity to mingle and connect with local female business professionals. Starbucks Coffee and continental breakfast treats will be served.

Free The Microsoft Store 7014 E. Camelback Rd., Scottsdale scottsdaleevents@microsoft.com 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.

$35

Join us for the

Gangplank Chandler Extreme Pitch Event

Celebrate our amAZing™ Arizona small businesses at this special Small Business Week mixer. Attendees will also get a sneak peek at the brand new Center for Entrepreneurial Innovation.

275 N. Gateway Drive | Phoenix

Tuesday, May 22 | 5–7pm

Free to attend, but an RSVP is required. Visit asba.com to register today! inbusine ssmag.com

MAy 2012

37

SE C TOR

Industry at Its Best

Mortgage Issues Cloud Commercial Leasehold Options for Businesses Just because there are a lot of vacancies does not mean it’s a renter’s market

by RaeAnne Marsh With the heavy vacancy rate of commercial leasehold property in Metro Phoenix, businesses wishing to move will find it easy to lease space in a larger or better location — right?

Not so fast, warns Mark Seale, S.I.O.R., C.C.I.M., executive VP of Cassidy Turley BRE Commercial’s office division. The mortgage problems that have been plaguing the real estate industry for the past few years have hit landlords as much as any other property owner — and this impacts their dealings with a lessee, from the rental cost per square foot to the landlord’s ability to make tenant improvements.

Seale recently completed a transaction for a client that began a long two years ago. The client had received a government contract and required a higher-than-normal level of tenant improvements, which his landlord was not willing to make. “We narrowed the search to four buildings, then all four got into some level of stress,” Seale relates. Unable to make a deal anywhere else, the client had to renew the lease where he was. “He had to put his business on hold for a year,” says Seale. During that year, Seale kept tabs on those four buildings. “Some were with a special servicer and one went through the whole process of being sold by the lender at lower price — and then had a new owner, who was in a better position to do improvements.” During that period, the tenant’s building fell into the same issues that caused stress on the four he had been looking at. “So at the end of the year, when his lease was up, he was able to go to one of the buildings we had initially narrowed the search down to.”

The issue of distressed property also impacts tenants who just want to renew their lease but whose space needs have changed or who need tenant improvement money, Seale notes. “If a landlord is negotiating with a lender, the landlord may not have the money, or want to spend the money, to do tenant improvements — but he isn’t going to tell you that because if he loses you as a tenant, his situation gets even worse.”

Seale emphasizes the importance of knowing the landlord’s level of

38

M ay 2012

stress. Factors to consider include how much the landlord paid for the property, his level of debt on it, and whether or not he is servicing that debt. However, that information is generally not readily available and landlords are not required to divulge it. Seale says that when he prepares a presentation for a client, he relies on information from Cassidy Turley’s Capital Markets Group to see if a property is on a watch list or is facing other challenges relating to payment on its secured debt. “They’re in that market every day, and they’re tracking distressed debt, “ he says.

Most commercial property real estate loans are structured with a balloon payment due at the end of the loan term. On properties purchased at the height of the real estate cycle, between 2004 and 2007, the term of that loan may now be up, placing property owners in the situation of needing to refinance and needing capital to do so at a time when property values have dropped and the property cannot generate the needed level of capital.

Another scenario property owners may face is losing a big tenant or, perhaps, the major tenant’s lease expires and the landlord is pushed to negotiating a new lease at current market that could as much as 40 percent lower. With the drop in operating income, landlords can’t service the same level of debt they had previously.

A building’s situation can change between the time a contract negotiation is initiated and the time the deal closes. “It’s important to work with a firm that has the resources to make sure you won’t get in a situation where you sign a lease, but the landlord is negotiating with a lender and the lender says, ‘No’ — and that’s happened,” Seale says.

“Businesses need to start early to have the biggest group of potential candidates to lease from,” says Seale, noting that some deals take a year to complete. “Time is not really your friend.”

Cassidy Turley BRE Commercial brephoenix.com

inbusine ssmag.com

Education

Series on leveraging social media

The Social Media Advantage Power up marketing impact by integrating social media

by Josh Dolin Social media is a critical component of any company’s overall marketing plan with the bonus of being a relatively low-cost marketing tool to implement. Social media is not a replacement for a traditional marketing plan; it is most effective when used in tandem with other marketing strategies. Companies that leverage Facebook, Twitter and other social media outlets like LinkedIn can benefit from more effective e-mail campaigns, better product branding and enhanced visibility online.

Before beginning any social media campaign, a company needs to research its target demographic so as to inform and target the campaign to the right group of people. To effectively design its social media strategy, the company should also consider the duration and frequency of outreach. Even the best-intended social media campaign can backfire if it is not targeted at the right time or to the right group.

The first fundamental concept is integrating e-mail marketing with a social media campaign. E-mail may be one of the oldest channels for digital marketing, but that doesn’t mean it’s no longer relevant.

Every single social media participant is using e-mail and obtaining e-mail addresses to keep fans or followers engaged. A company with an existing e-mail list and monthly newsletter should add social media links to generate new interest in products and services; in fact, social media tools like Twitter and Facebook can be used to start campaigns to interest new customers. Facebook is commonly used by companies to promote products or offer discounts when users become a Fan of the company’s page. Social media can also be integrated into e-mail campaigns to gather and promote testimonials from satisfied customers.

Social media also helps establish interest in the company’s brand.

Branding is a critical aspect of remaining competitive and relevant in a given market. It also helps potential customers recognize a company’s products and establishes enough credibility to influence purchasing.

An excellent way to incorporate social media in branding is to use it in conjunction with blogging. The average online consumer makes at least six visits to a blog before making a purchase, so encourage new purchases by using social media to offer free samples or advice. A company can get people talking about its brand by holding contests on Facebook. It can encourage comments on Twitter from satisfied customers to earn them a discount on their next purchase. Not only does this help retain customers, it is inexpensive advertising for the company.

Once people are interested in the brand, a company can use social media to create enough buzz to maintain itself as the industry leader.

Integrated social media marketing campaigns increase visibility in

Social Media – the Education Series q The Social Media Advantage q The Marketing Bonanza of Facebook and Twitter

Tempo Creative tempocreative.com

q Social Strategizing with LinkedIn

Josh Dolin, founder of Scottsdale-based Tempo Creative and author of The Web Guru Guide, has provided expertise to entrepreneurs and business executives across the United States for more than a decade. The digital marketing firm has helped more than 500 companies of all sizes achieve greater success through effective marketing.

To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.

40

search engines. This is important because many companies spend too much on search engine optimization (or SEO) campaigns that don’t deliver ROI. SEO campaigns are critical for online success if done properly, and integrating social media into an SEO campaign helps achieve that success. This is where social media outlasts traditional approaches alone. Targeted keyword phrases inserted into social media campaigns can help a company’s website get noticed online. Rather than focusing advertising resources on writing and posting articles and resources to a Web page, a company can use social media to provide a constant stream of fresh content from a distributed group of users.

Those users include existing customers, but they also include the uncommitted group of potential customers. Social media enables a company to, effectively, leverage everyone, even if they aren’t customers yet. That’s the beauty and impact of social media at work. Any time users post relevant content, comments, videos and links, it boosts the company’s search engine ranking and, thereby, its chances of getting found online.

Smart business executives understand that today’s market demands innovative approaches, and social media is a growing part of our innovation toolbox. Don’t forget that ROI should always be measured for any marketing initiatives and factored into the social media strategy.

Understanding and utilizing social media at the appropriate level, place and time can help a business thrive.

M ay 2012

inbusine ssmag.com

“We must view education as an investment, not an expense.”

SHELLEY ESQUE Vice President, Intel

The education we provide for Arizona’s children will determine the kind of future we all enjoy. Arizona employers need a highly skilled, talented workforce to diversify our economy, increase job opportunities and stay competitive.That requires a stronger education system that begins at birth and continues through career.

By investing time, talent and money to improve education today, we better position Arizona for long-term success. In the end, we all benefit. Education is everyone’s business. Make it your priority.

Visit ExpectMoreArizona.org.

We Value What We Own

A Fuel Alternative for the Times: Tesla Model S

The ups and downs of fuel alternative vehicles will be the norm for the next decade, but with car companies popping up — some a success, others failing fast — there is little doubt that Tesla will become a success story. The new Model S is an EV sedan that has evolved from the original Roadster model. The company was started in 2003 by three successful Silicon Valley engineers, including PayPal founder Elon Musk, and released the Roadster in 2008.

Currently, there are more than 1,800 on the road in 32 countries, according to its website.

The Model S is Tesla’s foray into the premium executive sedan market. Boasting a 5.6-second 0-to-60-mph speed, 300-mile range per charge and 0 emissions, the Tesla Model S has a goal of becoming “the best sedan on the road,” according to designer Franz Von Holzhausen. The power train is designed to distribute 50/50 weight distribution and a low center of gravity so that the vehicle will hug the road and perform. It is offered with three battery options (40 kWh, 65 kWh and 85 kWh), all of which use automotive-grade lithium-ion cells arranged for optimum energy density, thermal management and safety. Using any 120-volt outlet, the vehicle can be recharged at the rate of a 62-mile range per hour. Faster charge is available with a Tesla Supercharger.

Styling is a sight to see. Although it has been compared to the Jaguar XF look, environmentally conscious design and materials make the difference. Featuring an all-panoramic glass roof and door handles that retract into the body to reduce drag, the Model S is a modern evolution in design. Interiors are even more impressive, with hand-wrapped surfaces of cloth and Nappa leather and a 17-inch, high-resolution touch-screen monitor that controls all aspects of the audio system, navigation, cabin controls, communications and vehicle data. With no need for an engine up front, Model S features an additional 8.1-cubic-foot compartment under the hood. With the seats folded flat, Model S boasts more than 66 cubic feet of storage.

The car of the future is Americanbuilt and -engineered and is certain to become the standard bearer for others to measure their success in the EV market. MSRP: $49,900 Tesla teslamotors.com

by Mike Hunter

Unplugged Power: Batteries Matter

In a time of everything mobile, energy efficiencies and our on-the-go mentality, we have come to rely more and more on battery power or a battery boost to remain unplugged.

Here are our picks to keeping mobile for longer amounts of time. dreamGEAR i.SOUND Portable Power Max With up to 480 hours of power, the Portable Power Max is a powerful back-up battery for the iPad, iPod, iPhone and other portable devices, including Blackberry. Its compact design and powerful 16,000-mAh battery allows consumers to be totally mobile for longer. The five USB ports enable it to charge and power most USBpowered devices, and the included USB-to-mini/ micro-USB-cable means it’s not necessary to carry a separate cable for each device. LED status indicators show how much charge power is remaining and the built-in flashlight will help users connect in the dark. $129.99 dreamGEAR dreamgear.net ZAGGsparq 2.0 More than simply an extended battery, ZAGGsparq 2.0 carries multiple charges for any personal electronic device, including four full recharges for most power-hungry smart phones.

It fits easily in a pocket or bag — the perfect size for travelers and business people. It works with most USB-charged gadgets, including cell phones, hand-held gaming systems, digital cameras and the Apple iPad (adapters for mini-USB-to-USB not included). ZAGGsparq 2.0 provides two USB charging ports. $99 ZAGG zagg.com Mophie Juice Pack Powerstation This powerful 4,000-mAh external battery can handle the battery needs of any i-device, including the power-hungry iPad as well as a wide range of USB-enabled devices, at superfast speeds. It is an attractive piece with enough capacity to extend power on a phone or tablet for a full day’s use. The powerstation is the company’s most powerful battery yet, boasting 4,000 mAh and super-high output charging with unmatched capacity for its compact size. A bit less powerful than some external batteries, this product is a popular choice among techies. $79.95 Mophie mophie.com

42

M ay 2012

inbusine ssmag.com

Photos: Tesla

ASSETS

by Mike Hunter

Power Lunch Get on the Bandwagon: Go BBQ for Lunch

Meals that matter

Barbeque is not just for the State Fair, a festival or backyard gathering any more. These days, getting one’s favorite barbeque bite can be an easy prospect for lunch. Slow-cooked, tender meats; savory sides; and good, old-fashioned know-how come into play in seeking out the best of the best.

Bobby Q’s

Located on the west side, this place is somewhat out of the way for a business lunch, but it will definitely please the palate and impress one’s “higher-end” clientele. Offering incredibly flavorful barbeque and premium sauces in many favorite variations, this place is good cookin’ with authentic Southern dishes.

Corn muffins and even a complimentary take-home bag of homemade doughnuts top off this must.

8501 N. 27th Avenue, Phoenix (602) 995-5982 • bobbyq.net

Thinking Outside The Herb Box

Photos: The Herb Box (top), Bobby Q’s (bottom)

Lunching and having it all

So many new restaurants open in the Valley for lunch, but The Herb Box was a new concept as well as a new eatery. Opening at SouthBridge in Old Town Scottsdale in January of 2011 (to complement its North Scottsdale presence at DC Ranch), this bright and airy eatery and market has wowed Valley foodies with owners Becky Windels and Susan Smederovac-Wilcox’s creations.

Fresh and seasonal ingredients by local growers and purveyors is the standard, and the chef ’s creativity and sense of perfection is what has given The Herb Box a welldeserved reputation. Using Arizona honey, nuts, olives, farmers’ cheeses, eggs and organic produce is not secret but, instead, the magic behind the signature dishes. Dishes like the Fried Green Olives, stuffed with Rogue blue cheese, and the Butternut Squash Corn Enchiladas show diversity and a dedication to taste. Lunch is hopping with Market Wraps like the Turkey Apple Swiss or the Vegetarian Falafel that are easy take-out or eatin options. The Market offers packaged foods and creations for those on the go. Fresh, healthy and convenient means eating well when time is in limited supply.

The SouthBridge site’s décor is bright with an open atmosphere that makes it feel like a vacation destination. Patios and open doors make this contemporary “countryside” boutique restaurant a Scottsdale contender for the best place to have lunch. The bar is well stocked and offers a creative menu of drink, or “drinx” as the menu states. A lunchtime libation will take the edge off, as many of its signature drinks are light and flavorful. Try an Herb-A-Rita made with Partida Blanco Tequila, Navan vanilla liqueur, muddled cilantro and jalapeno, pineapple and agave. Try it on the rocks or up. The Camelback Cooler is a local fave made with Prairie Organic vodka, organic black tea, agave, thyme, clove, peach bitters and lemon with a cinnamon-sugar rim, on the rocks.

One word of warning: The drinks and bar area may lull one off the clock and into the early evening.

Honey Bear’s BBQ

A Valley classic that never disappoints, this Tennessee-style BBQ joint offers Party Packs, meats by the pound and walk-in sandwiches and sides. Be prepared to stand in line at lunch, but life-long friends Mark Smith and Gary Clark run an establishment that suits everyone’s needs. A local success story that will benefit barbecue-lovers’ taste buds for sure, with three locations Valley-wide.

5012 E. Van Buren Street, Phoenix (original location) (602) 702-3060 • honeybearsbbq.com

Texas BBQ House

Mike Pitt’s South Phoenix gem has opened a second location in Old Town Scottsdale. Bringing his authentic Texas palate to the plate, Pitt’s BBQ is becoming legendary. A simple menu of smoked meats and sides coupled with his original BBQ sauces makes this hot spot thrive. Try a Texas Party Pack for the next office meeting.

3748 N. Scottsdale Road, Scottsdale (480) 945-0900 • texasbbqhouseaz.com

The Herb Box 7134 E. Stetson Drive, Scottsdale • (480) 998-8355 • theherbbox.com

inbusine ssmag.com

M ay 2012

43

Barrett-Jackson salutes the scottsdale chamBer of commerce for its 65 years promoting the city of scottsdale

scottsdalechamber.com

MEMBER COMMUNIQUÉ Celebrating Another Milestone!

65 years ago, Scottsdale was barely a hamlet – not yet an incorporated town, boasting a population that approached 2000 souls.

The unincorporated subdivision of Maricopa County encompassed one square mile of what is now Downtown, and tourism and the arts were already beginning to flourish. Frank Lloyd Wright had set up Taliesin West ten years before in the wild, natural desert north of Scottsdale. Scottsdale Airport, then called Thunderbird II, was winding down following Rick Kidder its training role for World War II pilots. And 65 years ago the Scottsdale Chamber of Commerce was born.

Business people saw the need for a business organization to promote the area, to support tourism and to protect the burgeoning brand of Scottsdale.

They passed the hat and paved the first street. They passed it again to dig that paved street up and install the first sewer. They passed petitions to get Scottsdale incorporated in 1951 and presented so many signatures to the Maricopa County Board of Supervisors that Scottsdale was incorporated by decree rather than a public vote. It is rumored that Dr. Phil Schneider took on the signature gathering volunteer job with such zeal that he hit every home in Scottsdale. But his hard work was rewarded with the birth of a city.

In every decade that followed, the Scottsdale Chamber of Commerce, (now known as the Scottsdale Area Chamber of Commerce), played a pivotal role in the growth and development of this great place. It has been a steward of Scottsdale’s greatness and a guardian of its brand while always casting one eye to the future and one to its storied past.

Although 65 years have passed, the Chamber still exists to support our community by serving the economic engines of this community, large and small. It is a privilege to serve Scottsdale’s business community and the citizens of Scottsdale who depend on business success as a way of protecting and enhancing our quality of life.

Please join us on May 11 at the Chaparral Suites Hotel for an incredible gala celebrating our chamber, our Scottsdale and some of the great leaders who worked so hard to keep Scottsdale great. We will honor Senator Jon Kyl, recently retired State Senator Carolyn Allen and our business volunteers. But most importantly we want to celebrate and party long into the night. Expect surprises and come ready to have a ball!

Register online for the 65th Anniversary Gala and Business Volunteer Awards online or by calling the Chamber at 480-355-2700.

Rick Kidder, President/CEO

May 2012 - August 2012

The Scottsdale Area Chamber of Commerce will close its 65th Anniversary year with two amazing events!

Our Annual Scottsdale Area Chamber Open Golf Tournament will be held at the Gainey Ranch Golf Club on Monday, May 7th at 12:30pm. The Open is actually a tournament within a tournament featuring our Corporate Challenge Cup with benefits going to the charity of the winning team’s choice. Cost is $150 per player, $600 per foursome or $1,000 for a Corparate Challenge foursome. Contact Calleen Sorensen for more details at 480-949-6282.

The grand finale to our 65th Anniversary is our 65th Anniversary Gala and Business Volunteer Awards. Pat McMahon, KTAR 92.3/AZTV, will be Master of Ceremonies for this Lifetime to Get There event honoring 65 years of Chamber and member achievements. On this night the Scottsdale Area Chamber of Commerce, Chamber Members past and present, and Scottsdale, our beloved hometown, will be the true honorees. It is a celebratory “pat on the back” to everyone who has been a part of the past and who will be part of the future but most importantly, it is a CELEBRATION for all those who attend!

Continues on pg. S@W 07

Scottsdale@WOrk - 1

S c o t t s d a l e A r e a C h a m b e r C e l e b r at e s

The Scottsdale Area Chamber of Commerce was proud to present the Nineteenth Annual Scottsdale’s History Hall of Fame Dinner on Friday, March 23rd at the Chaparral Suites Resort.

Proceeds from the evening’s event will benefit the Scottsdale Historical Museum.

Over the past 19 years, the Past Presidents’ Council of the Scottsdale Area Chamber of Commerce has selected 116 past and present Scottsdale personalities and organizations to induct into the Scottsdale History Hall of Fame.

Inductees have contributed immeasurably to the rich heritage of Scottsdale, dating back to its modern-day founding in 1888 by Army Chaplain Winfield Scott.

Kurt Brueckner, past president of the Scottsdale Chamber of Commerce, served as chair for this year’s induction class and ceremony.

2 - scottsdalechamber.com

Scottsdale’s History Hall of Fame 2012 Inductees Mary King Mary King believes that the best things in her life have been a case of her being in the right place at the right time. Her work in establishing the Scottsdale Foundation for the Handicapped, today known as STARS, to teaching high school students, has helped countless individuals reach their full potential. Mary was instrumental in founding Las Madrinas, the auxiliary created to assist STARS with fund-raising and volunteer activities.

In Business Magazine

Mary Manross

Gary Shapiro

Having served over 16 years in elected office, first on the City Council and then two terms as Scottsdale’s Mayor, Mary Manross has demonstrated her dedication and commitment to the City of Scottsdale.

Mary was honored as a 2011 “Arizona Culturekeeper” for her environmental and historic preservation work. Under her leadership, Scottsdale was revitalized with new developments at the Waterfront and Skysong. Mary Manross continues to serve the Scottsdale community on the Scottsdale Unified School District Foundation, Partners for Paiute and Scottsdale Leadership boards.

After leaving the cold New York winters for Arizona in 1971, Gary Shapiro has spread his own warmth and sunny personality to his Scottsdale Community. He’s contributed immeasurably to the education and business environment, by lending creativity and innovation to each project he’s embraced. From helping families find homes to riding horses with the Scottsdale Charros or developing new leaders by founding Scottsdale Leadership, Gary maintains an active involvement in Scottsdale activities.

H LT

CAR

E AUX

Scottsdale Healthcare Auxiliary IL

IA

R

Y

R

TN

YEARS ER

A S IN &C HEALING

19

61 - 2011

G

SC

A

RI

N

LEBRATION

OTTSDALE

CE

In Business Magazine

A

P

Following his settlement in Scottsdale after World War II, Joe B. Wong designed more than 550 beautiful private homes, offices, schools and other projects, including the Carefree Sundial, Hopi School, Scottsdale Boy’s Club, Eldorado Park Community Center, Stagebrush Theater and additions to the Valley Ho and the Camelback Inn. Joe was active in the Scottsdale Charros and sat on Scottsdale’s Design Review Committee, Building Advisory Board and the Scottsdale Boys and Girls Club. Joe passed away March, 2011.

HE

Joe Wong

For over 50 years, the Scottsdale Healthcare Auxiliary has assisted the patients and medical staff at the hospitals of Scottsdale Healthcare System by donating their time and skills in many areas of the community-focused system.

The volunteers assist at the spring baseball games, raise funds through sales at the gift shops and baby photography, support the staff at the information desks and serve as a liaison between patient and hospital.

Scottsdale@WOrk - 3

Chamber Timeline 1921: First Scottsdale Chamber of Commerce organized and established an office in room behind then-new Farmers State Bank (where Rusty Spur is now). Chamber folded in 1933 as a result of The Great Depression.

1947: Scottsdale Chamber of Commerce incorporated March 6 with Wes Segner, elected president. Dues: $10. Scottsdale population: 2,000 1947: Chamber urged Scottsdale businesses to build/remodel buildings with Western-type architecture to continue town’s unique character, and adopted the slogan “The West’s Most Western Town,” coined by business owner Malcolm White.

1949: On its second anniversary, the Scottsdale Chamber of Commerce had 79 members. Chamber’s Paving Committee to get parts of West Main Street, First Avenue and Marshall Way paved.

1951: After year’s of study and public hearings conducted by Scottsdale Chamber of Commerce, Scottsdale is incorporated as a town, Malcolm White was appointed the town’s first mayor and served 7/1951 - 6/1958); Scottsdale Chamber sponsored 1st Annual Sunshine Festival, forerunner of Scottsdale’s annual Parada Del Sol. 1952: Scottsdale Chamber erected a wooden Cowboy Sign at northeast corner of Scottsdale Road and Main Street where local groups could post information about their upcoming public events.

1953: Scottsdale Junior Chamber of Commerce, or Jaycees, was formed.

1955: The chamber hired its first fulltime manager, Bob Bennett.

1958: The Tourist Development Committee of the Scottsdale Chamber met for the first time on July 21.

1959: Chamber created “Howdy Dudettes” as Scottsdale’s official convention welcoming group.

1960: Scottsdale population is 10,000.

1961: Scottsdale Charros was formed by Scottsdale Chamber of Commerce group to promote sports and other civic activities.

1962: Chamber’s goal of establishing a hospital realized when City Hospital of Scottsdale built on the corner of Osborn and Ballpark Plaza. It became Scottsdale Baptist Hospital, Scottsdale Memorial Hospital, Scottsdale Memorial Health System and, finally, Scottsdale Healthcare.

1970: Scottsdale population is 67,800.

1973: Chamber moved into historic Little Red School House with six employees, including current Scottsdale Chamber Office Manager Leslie Nyquist.

1977: Chamber and City got approval from the voters to levy a 2 percent bed tax, a portion of which would be used by the chamber for tourism promotion.

1980: First Molly the Trolley system began downtown service, organized by the Scottsdale Chamber of Commerce.

1983: Chamber introduces an economic development campaign, “Scottsdale—It Sounds Like Success;” distributed cassette tape and brochures to economic development prospects.

1984: Report commissioned by the Scottsdale Chamber and City identified ideal industries to attract, including corporate headquarters/

4 - scottsdalechamber.com

regional offices, research & development firms and business and professional services organizations.

1985: Scottsdale Partnership was formed to promote economic development; Chamber’s first annual Small Business of the Year awarded to

By George! Inc. 1986: Scottsdale Leadership program created by Scottsdale Chamber, City and Scottsdale Community College.

1987: Chamber introduced Operation Outreach networking event, now A.M. Connect.

1989: Phil Carlson hired as Chamber Executive Director.

1990: U.S. Census set Scottsdale population at 130,000.

1991: Chamber moved to new offices on the Civic Center Mall.

1993: Scottsdale Chamber sponsors first Scottsdale History Hall of Fame Induction Dinner; honors 15 of Scottsdale’s “history makers”.

1994: Scottsdale Chamber, with the City as partner, published the first annual Scottsdale Almanac, the official, 4-color residents and relocation guide.

1994: Scottsdale Chamber forms a 501c3 corporation, Scottsdale Chamber Foundation.

1997: Scottsdale Chamber of Commerce celebrates its 50th anniversary.

Scottsdale population is 175,000, Chamber has over 2,400 member businesses and 43 professional staff.

1997: The Scottsdale Chamber of Commerce puts itself and its entire membership on the Internet at www.scottsdalechamber.com.

2001: During “Reinvention Process”, Scottsdale Chamber severed contractual ties with the City of Scottsdale (no longer accepting economic development and tourism promotion funding), the chamber’s Convention & Tourism Division spun off as the separate Scottsdale Convention & Visitors Bureau and the Scottsdale Partnership economic development organization was absorbed by the Chamber. The Chamber also changed its name to Scottsdale Area Chamber of Commerce.

2003: The Chamber sponsored the Morrison Institute study, “Which Way Scottsdale,” a landmark visioning of the city’s future direction.

2006: The Chamber cut the ribbon on the Chamber’s new home at 4725 N. Scottsdale Road in Highland Park Center.

2008: The Chamber takes 300+ people to China for a guided tour of Beijing, the Great Wall and Shanghai.

2010: The Chamber revisits the 2003 Morrison Institute study, “Which Way Scottsdale,” and reconvenes city and business leaders to develop new solutions for the economic advancement of Scottsdale and the region.

May 11, 2012: Scottsdale Area Chamber of Commerce celebrate 65 years of leadership and vision with a gala celebration featuring the Business Volunteer Awards, Silent Auction and special honorees Senator Jon Kyl and retired State Senator Carolyn Allen.

Timeline sources: Scottsdale Chamber of Commerce, Scottsdale Historical Society, Southwest Research Room of Scottsdale Civic Center library, early editions of Scottsdale Progress, recollections of former Scottsdale Chamber of Commerce officials and staff, plus original research by Joan Fudala.

In Business Magazine

Have You Enrolled Your Company in Prompt Care?

Scottsdale Healthcare has joined with the Scottsdale Chamber to offer a new and exclusive healthcare benefit for employees of Chamber member companies. PROMPT CARE allows Chamber companies to provide limited care for minor illnesses or injuries during regular Clinic business hours (see below) to both their insured and uninsured employees.

The exclusive program has no up-front costs for any member business, and is included at no charge with your membership in the Scottsdale Area Chamber of Commerce.

PROMPT CARE was initially available only for Scottsdale Healthcare employees but is now being offered to employees of Scottsdale Chamber members because of Scottsdale Healthcare’s commitment to the health of those working in the community.

Chamber CEO Rick Kidder said, ”All business, large or small, worry about healthcare costs and their most important asset – their workforce. This exciting partnership helps to address a real need

In Business Magazine

for our member companies, and we are proud to be the first to offer this exciting partnership with Scottsdale Healthcare.”

Scottsdale Chamber member companies interested in enrolling in the new PROMPT CARE service can register immediately by going to www.scottsdalechamber.com/PromptCare. Once complete, the Scottsdale Area Chamber will send the member company a Referral Form. When an employee is in need of service, the employer will complete a PROMPT CARE referral form on behalf

of the employee, and the employee will bring that form to one of the three Occupational Health Clinics.

PROMPT CARE is intended for those with acute, minor illnesses or injuries, and does not cover serious emergencies. Typical complaints that may be seen under PROMPT CARE include minor respiratory illnesses, minor burns or rashes, sprains and strains, mild gastrointestinal ills, pink eye, vaccinations and blood pressure monitoring.

For those employees who are not insured, the cost is $35.00 for the assessment and treatment of their minor ailments. In the case of insured individuals, their insurance will be processed as normal with the appropriate co-pay.

PROMPT CARE Locations

To find out more about the PROMPT CARE service, participating locations, and to see a complete list of typical complaints that may be seen under PROMPT CARE, please go to www.scottsdalechamber.com/PromptCare or call 480-355-2700.

Scottsdale@WOrk - 5

New Programs at the Chamber Decrease Your Group Healthcare Costs 30% This Year!

Healthcare costs are front page news seemingly every day. Premiums increase. Coverage changes. Employers constantly face tough choices. Employees are being asked to carry more and more of the load. Politicians debate over what to do about lowering costs and maintaining quality coverage.

Take control of your group health insurance costs and coverage with Chamber Benefit Administration (CBA), a division of IIS Benefit Administrators.

The Scottsdale Chamber is pleased to help offer a new insurance plan to members. It uses a proven and established concept called Health Reimbursement Accounts. The plan will provide

Connect with the Chamber

average savings of about $1,000 per employee per year.

The resulting ability to manage costs enables employers to enjoy empowering levels of: • Premium stability • Expense reduction • Benefit options • Flexibility regarding employee participation The insurance carrier assumes most of the risk. You simply manage your premium costs and cash flow in a whole new way. Enrolling your company in this unique and proven system of cash management and benefits administration can make a profound difference on your bottom line today.

Become a fan on Facebook: www.facebook.com/ ScottsdaleChamberFans

To learn how this program can benefit your company, contact the Scottsdale Chamber or CBA’s local designated benefit advisors; Breslau Insurance, Paul Breslau, 602-6926832, Paul@HRaz.com Amalyn Consulting, Amy Shuckhart, 602-7418500, Amy@HRaz.com

Join our Groups on LinkedIn

Follow us on Twitter: twitter.com/ScottsdaleChmbr

View photos from our events on our flickr page: www.flickr.com/photos/ scottsdalechamber/sets

Check out our YouTube Channel: www.youtube.com/user/ scottsdalechamber Follow our blog at http://scottsdalechamber. blogspot.com/

MaskMail and FirstChoice Join the Chamber’s Growing List of Preferred Partners.

MaskMail

FirstChoice

Things are going on at your business you need to know about, but employees won’t tell you...

MaskMail is an anonymous reporting service that allows employees, suppliers, customers, and others to report inappropriate activities occurring in your business directly to you for further investigation. Anonymous incident reports frequently allow companies to identify and deal with issues that might not be discovered otherwise.

Incident reports can be submitted online 24 hours a day, seven days a week.

MaskMail serves as a liaison between the company and the reporters and provides fast, secure, and confidential incident report delivery.

To learn more visit MaskMail (https://www.maskmail. com) or contact Executive Director Rota Venners at rvenners@maskmail.com.

If Major Medical Insurance is Out of Reach, FirstChoice Can Deliver for You and Your Family!

While not a substitute for Major Medical coverage, for those unable to qualify for or afford Major Med, FirstChoice features a variety of both inpatient as well as outpatient benefits, and includes a strong surgical schedule that can be accessed either in or out of the hospital, and for an unlimited number of times! FirstChoice benefits can be paid to Any Hospital or Any Doctor, and we include access to the Beech Street PPO Network with both GOLD and PLATINUM plans for cost savings from repricing when Beech Street providers are used.

All FirstChoice policies are Defined Benefit plans. This simply means that the policy clearly stipulates what benefits will be paid for specific conditions, and then pays these stipulated amounts FIRST DOLLAR! With FirstChoice, there are No Deductibles and No Coinsurance! Unlike FirstChoice, most health insurance plans are Certificates and not true Policies! FirstChoice is a Guaranteed Renewable Policy!

To learn more visit FirstChoice (https//www.usabg.net/ssmith3) or contact Sheldon Smith at 480-314-4234.

6 - scottsdalechamber.com

In Business Magazine

Continued from pg. S@W 01 The Honorable Jon Kyl, retiring member of the U.S. Senate; and the Honorable Carolyn Allen retired State Senator and long-time Scottsdale resident will be honored for their service to the community.

Professional staging, surprise appearances, a live band, fun video memories, streamer and confetti effects and a champagne toast will all be tied seamlessly together by our esteemed Master of Ceremonies, Pat McMahon. This is an evening not to be missed!

More information and registration is available at www.scottsdalechamber.com.

Mike Binder Managing Editor Scottsdale Area Chamber of Commerce

Rick Kidder President & CEO Scottsdale Area Chamber of Commerce rkidder@scottsdalechamber.com 4725 N. Scottsdale Road, Suite 210 Scottsdale, AZ 85251 Ph 480.355.2700 fax 480.355.2710 www.scottsdalechamber.com

Board of Directors Executive Committee Board Chair Kurt Zitzer Meagher & Geer, PLLP

Public Policy Advisory Committee Bill Heckman Heckman Marketing, Inc.

Vice Chair Eric Larson AVB Development Partners Immediate Past Chair Karen Wittmer-Jekel

Member Value Advisory Council Steve Helm Scottsdale Fashion Square AT LARGE MEMBERS Jennifer Karas The Karas Group

Treasurer Mark Eberle Henry & Horne, LLP

Economic Development Kurt Brueckner Titus Brueckner & Advisory Council Levine , PLC Bryce Lloyd FirstBank of Arizona Dale Fingersh Emerging Issues The Right Direction Angela Creedon ASU Public Affairs Rick Kidder Scottsdale Area Chamber of Commerce

Scottsdale Partnership Kevin Sellers First Fidelity Bank

Š 2011 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.

FirstBank is Proud to Support the Scottsdale Area Chamber of Commerce on its 65th Anniversary!

efirstbank.com Member FDIC

In Business Magazine

Scottsdale@WOrk - 7

Infocus: Airpark Tradeshow and Recent Ribbon Cuttings The 2012 Airpark Tradeshow was held March 8th at Monterra at Westworld. Our thanks to the host, sponsors and participants for a wonderful time! In addition, the Chamber is proud to welcome new businesses with a ribbon cutting ceremony! It’s a wonderful way to get some great exposure!

1

2

3

4

5

6 Let the Chamber help you celebrate your grand opening with a RIBBON CUTTING! Contact Patrick Hanley 480-355-2714 to schedule yours!

7

8

9

10

11

12

1. Graebel Movers shows off one of their smaller trucks! 2. The Ladies of Cox Business explain what it takes to get a glowing bouncy ball! 3. Tradeshows are made for connecting! 4. Explaining how the Business Wealth Club works. 5. Winners were taking a spin at CenturyLink! 6. Ribbon cutting at Lyric of Scottsdale. 7. Miss Scottsdale joined in the fun at FastMED Urgent Care. 8. It was a hole in one at Golf Anything!

9. Mayor Lane touched down perfectly at Zulu Caffe. 10. Dignitaries cut the cord at the YMCA as they flipped the switch on their new CentroSolar solar panels. 11. Mayor Lane joins Fender at their new world headquarters! w12. It was a high-class affair at Avery Lane Fine Consignments!

8 - scottsdalechamber.com

In Business Magazine

Congrats to the Scottsdale Area Chamber of Commerce on 65 years of building business for your members and this great community.

Digital | Publications | Mobile InMediaCompany.com | 480.588.9505

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.

P Find all your files instantly, effortlessly — No more searching for missing documents P Significantly improve office productivity saving time and $$$ P Save $$$ on document storage both On- AND Off-site P Total Compliance with all regulations and laws—Disaster Recovery plan included P An Experienced Award-Winning Local Company Providing Exceptional On-Site Service P Fully HIPAA compliant Discount Document Scanning Service also available Finally…

A Paperless Solution Everyone Can Afford!

480-682-4734 inbusine ssmag.com

www.edsaz.com EXPRESS DIGITAL SOLUTIONS

rea

eA dal s t t r Sco e fo he merc t to m ice ons of Co serv i t of ula er rat amb ears g n Ch 5 y Co 6 M ay 2012

53

YO U R M E E T I N G B U D G E T H A S R O O M F O R

A FEW PLEASANT SURPRISES.

192-seat Lecture Hall

Executive Board Room

“IBM held its Smarter Cities Phoenix event at the Executive Conference Center – Downtown Phoenix. The customers and attendees were very impressed with the state-of-the-art facility, the customer service and the attention to detail. Every aspect of a major conference was anticipated — and addressed well ahead of time.”

Joseph (Jay) Ennesser, Jr. — IBM Sales & Distribution, Industrial Sector, Vice President Global Alliances Solutions, Phoenix Location

If one-stop planning service, an all-inclusive meeting package and high-end amenities sound pretty good on your budget, then the Executive Conference Center – Downtown Phoenix is the perfect choice. The ECC offers more than 21,000 square feet of IACC-certified meeting space, featuring a 192-seat lecture hall, sophisticated furnishings and leading-edge technology for groups as large as 300 attendees. So start looking beyond the same old meeting experience — and enjoy a few pleasant surprises with your next event.

FOR MORE INFORMATION OR A TOUR, CONTACT KEVIN HILL. 602-262-6225 | PHXECC.COM FA M I LY O F V E N U E S Phoenix Convention Center | Executive Conference Center | Symphony Hall | Orpheum Theatre

We’ll do the laundry for you.

by Rick Murray, ASBA Chief Executive Officer

About ASBA

Growing up, my parents worked hard to make sure my brother, sister and

The Arizona Small Business Association

But we had the greatest childhood ever!

I had all that we needed. We didn’t have lavish things or expensive cars or homes. We didn’t fly to exotic locations and eat at fancy restaurants.

(ASBA) is the largest trade association in the state representing 11,000+

Besides having all the normal comforts of life, I always had my clothes

member businesses, and over 1/2

washed and folded and put in drawers or hung in the closet. I really never

million employees in all 15 counties.

saw my mom do it or all the work that went into filling my dresser with

ASBA members enjoy access to significant group discounts, countless opportunities to do business with each other, a wide array of insurance

clean clothes … but I knew it was her. It was just automatic. Imagine my horror when I woke up one day to go to school and there was no underwear in my dresser!

products, and active advocacy efforts on

So many times the value we receive in a relationship is not tangible. I never saw the effort my

public policy issues to protect their

parents made to make my life easy, but when suddenly something was no longer there, I

businesses. Discover more at

certainly realized its significance. The same can be said for the value many businesses have

www.asba.com.

with their chambers of commerce and trade associations. While there is a lot of tangible value we offer our members through educational programs and discounted products and services,

Join ASBA. Be amAZed®

perhaps the greatest benefit is never seen or realized by our members. I’m talking about the advocacy role that professional associations have in protecting your ability to operate a profitable

in this issue

business. The time and money spent advocating on your behalf on tax issues, business regulation, and healthcare is rarely seen by the general membership. But it most definitely would be noticed if there was no one there to defend the small business owner … someone to be your advocate.

Big Voice for Small Business. . . . . pg. 2 Several pieces of legislation that ease some tax burdens on businesses are making their way National Small Business Month . . . pg. 4

through the legislature. If passed, they will positively affect your bottom line. ASBA has been working closely with the Arizona Chamber of Commerce and Industry on the legislation, and with

2012 SBA Award Winners. . . . . . . pg. 7

a little luck and some hard work, we will have some good news to report at the end of the session. But our success is directly related to the strength we have as an association and as a

Central Arizona

partner. There is strength in numbers. Your membership matters! ASBA is the 500-pound

4600 E. Washington Street, Suite 340

gorilla when it comes to lobbying and advocacy simply because of the number of businesses that

Phoenix, AZ 85034

are members. With over 11,000 business members that employ more than a half-million

p. 602.306.4000

f. 602.306.4001

Arizonans, the Arizona Small Business Association enjoys a level of attention and influence that is unmatched.

Southern Arizona 4811 E. Grant Road, Suite 262

So when you find yourself asking what your association does for you, just know that we are out

Tucson, AZ 85712

there doing the laundry and making sure your dressers are full.

p. 520.327.0222

f. 520.327.0440

Happy National Small Business Month! © 2011 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.

Check out pages 04 and 05 of our ASBA section for 31 ways to celebrate this month.

01

A Big Voice for Small Business

ASBA Board of Directors Joe Higgins | Chair Serial Entrepreneur Roy Irwin | Vice Chair Irwin Insurance & Investments, LLC

by Jerry Bustamante, ASBA Sr. VP, Public Policy + Southern Arizona There is no doubt that Arizona small businesses are, and will continue to be, the primary source of new employment. They are the engine that is driving our state’s economic recovery.

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 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

As the economic landscape continues to seek some sense of normality, we must ensure that we are working and advocating to create an environment that enables small businesses to be profitable and competitive. For these reasons, ASBA strongly believes that what is good for Arizona small businesses is good for Arizona.

Today, more than ever, ASBA is committed to be the unified voice of Arizona small businesses and to be actively engaged in influencing public policy. Whether it is opposing tax increases and regulations on small businesses, or working to control energy and healthcare costs, ASBA is on the front lines fighting for the issues that matter most to our small businesses.

ASBA’s public policy efforts are focused on five areas that are most critical to Arizona small businesses: • Taxation • Regulation • Economic Development • Education • Healthcare Visit asba.com/advocacy to view our full 2012 Public Policy Agenda.

Part of ASBA’s public policy efforts focus on educating small business owners on what is happening at the legislature and how it may affect their business. In March of 2012, ASBA provided a mid-session update on the 50th Legislature, 2nd Regular Session, with special guest Arizona Senate President Steve Pierce. Attendees learned about the issues that were the top priority of this year’s Arizona Legislature and how the session might conclude.

Our public policy efforts are focused on the two levels of government where we can be most effective – which are the state and federal level. We encourage our local Chambers of Commerce to continue to take the lead on promoting good public policy in their communities and being the voice of business at their respective City Halls. ASBA, in partnership with the Arizona Chamber of Commerce and Industry, will take the lead at the state and federal level and offer to serve as a resource to local chambers on legislative issues about which they, and their members, are concerned. Working together across the state on issues we find consensus on

Victoria Trafton Victoria Trafton, Inc. Janice Washington Arizona Small Business Development Network

02

will ensure that Arizona’s business community is well represented at all levels of government.

ASBA Members Receive Nearly $500,000 in Workers’ Comp Dividends

by Christy Coe, ASBA Director, Member Benefits

Navigating through the process of starting a business can be a bit

Members can also increase their bottom line by promoting workplace

overwhelming, especially when determining what type of insurance

safety. Earlier this year, ASBA members earned nearly $500,000 in

you’re required to carry. I often receive calls from startup companies

safety dividends just by taking advantage of ASBA’s Association

asking if they’re required to carry workers’ compensation insurance.

Safety Program (ASP). ASBA assists businesses, both small and

My response to them is, “If you have employees, you need workers’

large, with safety and health training and consultation that will help

compensation insurance.” It is required by law. It protects the

them understand and reap the benefits of reduced work accidents,

employee by providing medical care in case of injury and monetary

fewer workers’ compensation claims and better compliance with

compensation for work time lost, and it protects the employer from

Federal and State OSHA regulations. When a business is a member

potentially crippling costs and liability.

of ASBA, the payback for good safety records is a safe and efficient workplace, with fewer interruptions and reduced accident costs.

The Arizona Small Business Association (ASBA) has partnered with SCF Arizona to provide affordable workers’ compensation insurance

To enroll in ASBA’s Association Safety Program or receive an SCF

for Arizona businesses. Members of ASBA, who participate in

quote, contact Christy Coe at (602) 306-4000 or ccoe@asba.com.

ASBA’s Association Safety Program and become a new SCF policyholder, are eligible for at least a 10% discount on their workers’ compensation premiums. Qualified policyholders may be eligible for savings as high as 40%.

In Business Magazine is read by those vested in business Valleywide

To get your Marketshare . . . Advertise with www.inbusinessmag.com • info@inbusinessmag.com • (480) 588-9505

03

Celebrate the successes of your small business

S

M

MAY 2012

by Kristen Wilson,

T Attend ASBA’s 19th Annual Enterprise Business Awards today from 11:30am-1pm and celebrate your successes along with hundreds of other small businesses.

1

ASBA Chief Operating Officer As small business owners and entrepreneurs, we are traveling at a breakneck pace trying to make things happen for our business – innovating, maneuvering through obstacles and opportunities, and just plain “getting the wash out.” It is sometimes

Support someone else in reaching his or her goal. Volunteer as an ASBA Business Mentor at asba.com/mentoring.

Write a press release and share it with the world.

Be sure to include ASBA in the distribution list! We love to promote the successes of our Arizona small businesses.

Attend the ASBA Fast & Curious Speed Networking™ event for a chance to tell lots of other businesses about how amAZing™ your business is (and make some sales along the way).

Create a “wall of fame” in your office that celebrates even the small things – like remember the day when you had answered ALL the emails in your inbox?

Share the news with your clients, partners and vendors through a printed or e-newsletter.

Post it on the ASBA Facebook page for all to see. facebook.com/beamazed

National Small Business Week begins today in Washington, D.C. Check in on the activities at nationalsmallbusiness week.com.

Go crazy and order tons of new office supplies.

Don’t worry – you’re saving 79% through ASBA’s Staples program. Oh wait, you’re not? Better get on that one quick – asba.com/staples

Make time to read a book, cover to cover, in one sitting.

Incorporate a “kudos” section into your regular staff meetings giving everyone a chance to give and receive kudos for a job well done.

6

7

difficult to take time to reflect and

8

celebrate our successes, but that is crucial to keeping our momentum high and keeping us and our employees motivated to succeed. There couldn’t be a better time to celebrate all of your successes – big and small – than National Small Business Month.

Here we share ways to celebrate your business every day during the month

13 14 15

of May.

Have a drink with friends. P.S. ASBA is having a mixer tonight – asba.com/events for details.

20 21 22

Dip into that secret stash of peanut M&M’s we know you have hidden in that bottom drawer.

27 28 29

04

W

T

F

Write a blog post about your successes and how you achieved them.

Take a moment to take a deep breath and reflect on your recent accomplishments.

Tweet about it. (Be sure to include @ASBA for extra exposure!) .

Sleep in … and by sleep in, we mean past 6am.

Have a themed potluck lunch for the whole team (Tostadas and Mariachi’s anyone?).

Pay it forward. Donate of your time, talent or treasures to those less fortunate.

Form a relationship with a business mentor or coach who can help you recognize and achieve your accomplishments. (Find one at asba.com/benefits.)

Nominate your company for an award. You know you deserve it!

Run a customer appreciation promotion to thank your customers for helping you reach your goals.

Do a little dance, make a little love, you know – get down tonight.

Turn off the computer, the smart phone and the tablet, and spend a day with family and friends.

Two words:

Three words: Three-Day Weekend

2

9

3

10

16 17

Put together a fun group outing for you and your staff – like bowling, sporting events or a picnic.

23 24

Invest in yourself. Learn a new skill, take up a new hobby, or take a leadership development class.

30

Invest in the future success of your business by attending “The Process of Business Development” workshop at ASBA today from 9am-Noon (asba.com/calendar).

Give your goals a one-day break.

S

4

11

5

12

18 19 Casual Friday

25 26

p Whoo p Whoo p Whoo

And the best way to celebrate your success? Push the ASBA amAZing™ button! Don’t have one? Visit asba.com/store.

31 05

Save

BIG

79% Save on average

on office supplies and more

• Additional 10% off orders over $50!

• Free next-day delivery • Easy online ordering

$3,500

10% Save an additional

Save on average

on credit card processing

• Exclusive pre-negotiated pricing • Compliance fee waived first year ($95 value) • Free PCI compliant terminal* *Available to members using non-compliant terminals

on payroll processing

• Standard cost is already 10% - 30% off most 3rd party providers!

• ASBA members receive an additional 10% discount • Plus, receive FREE HR Compliance ($400 savings!)

06

Visit asba.com/discounts or call 602.306.4000 for more savings.

Congratulations to the 2012 Arizona Small Business Week Winners!

Winners were recognized on May 1, 2012 at ASBA’s 19th Annual Enterprise Business Awards Luncheon

Small Business Person of the Year

Women’s Business Center of Excellence

Zeferino Banda, Banda Group International

Microbusiness Advancement Center’s Women’s Business Center of Tucson

Small Business Exporter of the Year Dr. Manuel Padilla, Geotechnical Consulting and Testing Systems

Financial Services Champion of the Year

Jeffrey Butland Family-Owned Business of the Year

SCORE Chapter of the Year

Howard Stewart, AGM Container Controls

SCORE Chapter 689, the Southern Arizona SCORE Chapter in Tucson

Young Entrepreneur of the Year

Karen Goettl, Western Alliance Bank

Small Business Development Center of Excellence

Virgilia Kaur Singh, MIB Consultants

Minority Small Business Champion of the Year

The Arizona Western College SBDC in Yuma

Lea Marquez Peterson, Tucson Hispanic Chamber

Women in Business Champion of the Year Janet Marcotte, YWCA of Tucson

Veteran Small Business Champion of the Year Tom Shambo, Microbusiness Advancement Center’s Small Business Development Center

Ken Blanchard College of Business | College of Education | College of Nursing | College of Arts & Sciences | College of Fine Arts & Production

Campus • Evening • Online

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/ ).

07

ASBA Staff Rick Murray, Chief Executive Officer Kristen Wilson, Chief Operating Officer Debbie Hann, VP, Finance + Administration Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona Christy Coe, Director, Member Benefits Harold Gribow, Director, Association Safety Program Michelle Reynolds, Member Services Director Rhette Baughman, Marketing Manager Carol Mangen, Member Services Manager Gabe Salcido, Creative Design Manager Sarah Travis, Administrative Assistant Louise Abbott, Member Services Coordinator, Southern Arizona Marlee Roushey, Member Services Coordinator, Southern Arizona

Central Arizona

4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000 f | 602.306.4001

Southern Arizona

4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p | 520.327.0222 f | 520.327.0440

Visit asba.com today!

08

Thank you to our amAZing™ members!

GET A

BLEACHER TICKET, HOT DOG, 24oz DRINK, & BOTTLE OF PEPSI MAX

速

FOR ONLY

19

$

602 514 8400

Index Index by Name

Gilpin, Debbie, 20

Keller, Ed, 31

Rutin, Eric, 20

Adams, Dan, 30

Gisvold, Nathan, 24

Klein, Mitchell, 20

Sanders, Todd, 35

Adelman, Warren, 11

Goodman, Adam, 20

Landon, Laura, 34

Seale, Mark, 38

Ahlmer, Michelle, 66

Hamstreet, Jarret, 24

Manafy, Michelle, 30

Simons, Ted, 35

Barrett, Robyn, 20

Hill, Trevor T., 12

McCarthy, Kevin, 66

Slife, Derek, 24

Comanita, Christie, 66

Hoffman, Dennis, Ph.D., 66

McCracken, Melissa, 34

Smith, Jaynie L., 32

Dalrymple, Mick, 14

Hyatt, Michael, 31

Meester, Tim, 24

Spring, Scarlett, 24

DeGraw, Rick, 18

Jameson, Wendy, 12

Mittelstaedt, Robert, 16

Stanton, Greg, Mayor, 16

Dolin, Josh, 40

Jones, Jeri, 20

Nelson, Alan C., Ph.D. , 24

Thompson, Micky, 24

Egan, Donna, 20

Jozwiak, Kristy, 14

Panchanathan, Sethuraman, 12

Wharton, Christopher, Ph.D. , 24

Erickson, Robin, Ph.D., 16

Kaplan, Jason, 22

Provvidenti, Kristin, 24

Whitecotton, Stacey, 16

Fay, Brad, 31

Keen, Andrew, 31

Richert, David, 14

Driver Provider, The, 22

QuikTrip, 14

Tempe Chamber of Commerce, 37

Reliable Background Screening, 17

Tempo Creative, 40

SCF Arizona, 6

Tesla, 42

Scottsdale Area Chamber of

Texas BBQ House, 43

Index by Company 1-800-Got-Junk, 10 5 Arts Circle, 10 AJ’s Fine Foods, 14 Alerus Bank & Trust, 17 Alliance Bank of Arizona, 2 American Diabetes Association in Phoenix, 34 American Liver Foundation, 34 AN Collision Center of Tempe, 14 Arizona Chamber of Commerce and Industry, 36 Arizona Commerce Authority, 29 Arizona Department of Revenue, 66 Arizona Diamondbacks, 63 Arizona Hispanic Chamber of Commerce, 36 Arizona Retailers Association, 66 Arizona Small Business Association, 36, 37, 55, 60 Arizona State University, 12, 20 Arizona Tax Research Association, 66 Arizona Technology Council, 36 Association for Corporate Growth – Arizona Chapter, 36 ASU SkySong, 14 Avnet, 9 Barrett-Jackson, 44 BestIT, 67 Blue Cross Blue Shield of Arizona, 4 Bobby Q’s, 43 Cassidy Turley BRE Commercial, 33, 38 Center for Health Empowerment Education Employment Recovery Services, 20 Central Phoenix Women, 36 Chandler Chamber of Commerce, 36 Chapman Auto Group, 14 Children’s Museum of Phoenix, 20 Chow Locally, 24 Colnatec, 12 Conquest Training Systems, Inc., 21 Deloitte, 16 Delta Dental, 3 DMB Associates, Inc., 35 Double L Ranch, 15 dreamGEAR, 42

64

M ay 2012

Economic Club of Phoenix, 36 Energize Phoenix, 14 Expect More Arizona, 41 Express Digital, 53

Commerce, 36, 45, 49

Trident Security Services, 35

FirstBank, 51

Scottsdale, City of, 14

United Healthcare, 20

Free Arts for Abused

Screen Magic, 24

VisionGate, Inc. , 24

Smart Advantage, Inc., 33

W. P. Carey School of Business, 16, 66

FreePint, Ltd., 31

Stella Bella, 24

Waste Management, 65

Fry’s, 14

Sunchase Holdings, 14

Wells Fargo, 19

FSW Funding, 20

Surprise Regional

West Valley Women, 37

Children of Arizona, 20

Global Institute of Sustainability, 14 Global Water Resources, 12 GoDaddy.com, 11 Goodmans Interior Structures, 20, 35 Grand Canyon University, 61 Greater Phoenix Chamber of Commerce, 35 Greater Phoenix Urban League, 36 Guest Editor Economic Symposium, 35 Heart & Mind Network, 29

Women of Scottsdale, 37

Chamber of Commerce, 37 Target, 20

ZAGG, 42

Target Commercial Interiors, 5

Bold listings are advertisers supporting this issue of In Business Magazine.

Download Us Now www.inbusinessmag.com

Herb Box, The, 43 Holmes Murphy, 6 Honey Bear’s BBQ, 43 Hospice of the Valley, 35

/inbusinessmagphx

Linda Land, 21 Macayo’s Mexican Kitchen, 35 Maddy’s Pool Supply and Service, 35

@inbusinessmag

Maricopa Workforce Connections, 13 Mark Taylor, 14 Mayo Clinic, 35, 68 Mesa Chamber of Commerce, 36 Mophie, 42

It's a Hub to Building Business

National Association of Women Business Owners, 36 National Bank of Arizona, 7 National Council on Compensation Insurance Holdings, 18 National Federation of Independent Business, 18 Nutricity.com, 24 Omni Hotels & Resorts Tucson, 39 Peoria Chamber of Commerce, 36 Phoenix, City of, 16 Phoenix Collegiate Academy, 35 Phoenix Convention Center, 54 Post.Bid.Ship., 24 Pyxl, 20

inbusine ssmag.com

At Waste Management, giving back is a responsibility we take to heart.

Learn more at www.wmofarizona.com

A community partner.

Waste Management is a valued and trusted community partner. Every year, we give back tens of thousands of dollars to community organizations in need.

Waste Management is proud to support Big Brothers Big Sisters of Central AZ, the Special Olympics, Keep Phoenix Beautiful and Habitat for Humanity.

1-800-796-9696

Š2010 Waste Management, Inc.

Roundtable

A Candid Forum

Online Sales Tax: Can Retail Make a Level Playing Field?

Complications lie on both sides of the debate

by RaeAnne Marsh Online sales tax “is a different political issue now than it was 15 years ago,” says Kevin McCarthy, president of the Arizona Tax Research Association, a statewide taxpayer organization that represents Arizona individuals and businesses. Then, online sales tax was viewed as a hindrance that would cripple the Internet; now, it’s the center of a debate on what many view as a huge inequity — and a potential source of revenue for governments in fiscal duress.

“From national projections of online transactions occurring, it could be a significant amount of revenue,” says Christie Comanita, a manager in the Tax Policy and Research Division of the Arizona Department of Revenue. At the same time, she admits the state has no real way of knowing how much is actually transacted or if it is getting the tax on those sales. Simplifying the transaction (sales) tax is a move many believe would help pave the way to an online sales tax, and Comanita says, “At the executive level [of Arizona’s government], there’s a desire to simplify our transaction tax.”

The Streamlined Sales Tax Project is a nationwide effort on the part of the private sector and revenue officers to simplify sales tax systems, especially for online commerce. While its members are still waiting for the green light from the federal government or the courts to tax Internet sales — which would be a move away from a court ruling in the preInternet days against collecting sales tax on catalog sales — the SSTP is generally regarded as a unified approach that has the best chance of success. Although Arizona is not a member of the SSTP, Comanita says the state monitors it, and actions to simplify Arizona’s sales tax system “would give the state the option to either join or implement [its own] minimum simplification requirements.”

Dennis Hoffman, Ph.D., professor of economics at ASU’s W. P. Carey School of Business, calls Arizona’s sales tax system “one of the most confusing and complex cobwebs of differential government taxes.” This, he explains, is the difficulty online retailers face. There are state, local, county and district taxes, and the sales tax is assessed on different things differently across these jurisdictions.

Michelle Ahlmer, executive director of the Arizona Retailers Association, says the oft-cited case law on catalog sales found it was too hard for businesses to look up taxing jurisdictions, but notes that the same technology vendors are using today to sell their merchandise also makes it possible for them to look up those taxing jurisdictions.

In Arizona, the merchant’s requirement to collect sales tax depends on whether or not it has nexus in the state, and Comanita says the Department of Revenue considers a number of factors to determine if such nexus exists. These include the interrelationship between a business’s brick-and-mortar and online entities, such as whether a customer can buy an item online and return it to a store, whether store coupons can be redeemed at either site, and whether the business uses the same promotional flyers for both entities. (Best Buy, which

66

M ay 2012

operates in such a fashion, declined to be interviewed for this story.)

The Department also looks at whether the business’s actions help create, market and enhance the seller’s market into the state, such as “if part of the promotion is to say, ‘Because we have a warehouse here, you get it delivered faster,’” Comanita explains.

A company that does business online-only in other states as well as Arizona may be able to argue it has no nexus here, but Ahlmer notes that one of the Arizona Retailers Association members, which sells online only, is an Arizona business and therefore collects sales tax for Arizona residents. “We need to redefine what retail is,” she says, observing that warehouses, distribution centers and fulfillment centers are retail operations now. “Operations of retail have changed dramatically, and our statutes haven’t kept up with the definition or taxation.”

“Economics suggests you want tax fairness, not create distortions that encourage buyers to go from one establishment to another to avoid paying a tax,” says Dr. Hoffman, and asks, “Why put warehouse jobs above regular retailer jobs?”

An economic impact study the Arizona Retailers Association commissioned from Elliott D. Pollack & Company found the state lost 5,000 jobs in the period from 2006 to 2011 due to the sales tax “loophole” and predicted the number would escalate to 8,000 by 2015.

Noting that year-over-year sales growth of online businesses is 16 to 19 percent compared to 8 percent for mainstream retail, including those with an online component, Ahlmer says, “We don’t expect all sales to return to brick-and-mortar if there was a similar requirement for online to collect sales tax, but we do expect one in four to return.” And this, she notes, would impact jobs in Arizona.

Arizona Department of Revenue azdor.gov Arizona Retailers Association azretailers.com Arizona Tax Research Association arizonatax.org W. P. Carey School of Business wpcarey.asu.edu

inbusine ssmag.com

Harvest the Business Value of Your Technology

We can help.

Call me: Larry Bua Direct: 602.828.2254 Larry.Bua@BestIT.com

Most people my age don’t think they can get skin cancer. But I was diagnosed with stage one melanoma at 17. Now, I wear my scar proudly and tell my friends how important it is to get regular skin checks.

My answer was Mayo Clinic.

Caitlyn Potter, Phoenix, AZ

Because of Mayo Clinic’s collaborative model of care, Caity had an entire team on her side, focused on her recovery. Now, she is cancer-free and attending college. For over 100 years, people from all walks of life have come to Mayo Clinic for answers. Mayo is an in-network provider for millions of people. In most cases you don’t need a physician referral. For more information or to schedule an appointment, visit mayoclinic.org/arizona.