July 2018 Issue of In Business Magazine

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JULY 2018

Special Section: 2018 Top 50 Small Business Industry Leaders



Experts share how to navigate the risks for enterprise success

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Business Intangibles $4.95 INBUSINESSPHX.COM

THIS ISSUE National Association of Women Business Owners – Phoenix

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JULY 2018



Risky Business? Experts Share How to Navigate the Risks for Enterprise Success

Owners of small and medium-sized businesses may feel the challenges even more keenly. Professionals in our business community share their expertise with In Business Magazine on some of business owners’ key “hot spots.” FEATURES


Businesses’ ‘Magnificent Seven’ Investments

Baldwin H. Tom discusses leveraging intangibles for business wealth.


Five Cryptocurrency Tax Mistakes the IRS Takes Seriously

Steve Moskowitz addresses tax implications of cryptocurrency. Industry



JULY 2018


Special Section: 2018 Top 50 Small Business


Risky Busin



Experts share how the risks to navigate for enterpris e success

JULY 2018

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Intangible s






of Women Business


Owners – Phoenix


Get a year of In Business Magazine Subscribe now at inbusinessphx.com

PARTNER SECTION How to Make Air Travel Less of a Pain by Kathleen Gramzay, BCTMB & Wellness Educator

Air travel can be tough. Between schlepping bags, the mental duress of contending with possible schedule changes and the actual time stuck in a seat, flying can definitely be a pain. If your life involves cross-country or international travel, you are already keenly aware that 5 to 15 hours in a cramped seat can definitely cause some discomfort. A recent flight to and from Greece, then from New York to Phoenix, had me using my favorite tips to stay comfortable on the trip. Try them to make your travel more enjoyable. 1. Preflight. Instead of sitting while waiting for your zone to be called, find a corner and take the opportunity to stretch, reach and bend. a) For Low Back. The arm of the end seat at the gate makes for a great bar to squat and do a low-back stretch. If you’re tall, use the ticket counter instead. Gently bend forward and hold on, with arms fully extended and feet planted. Slowly bend your knees and drop into a seated squat. Pay attention to the extending stretch in your low back, pausing in the spots where it especially feels good. You’ll be more comfortable on the flight and may inspire fellow travelers to follow your lead. b) For Hamstrings. Use either a chair seat or the low tables adjacent to do hamstring stretches to keep from cramping on the flight. Place your heel on it, leg straight. Lean slightly forward and tilt your pelvis back to stretch your hamstrings.

2. Get Aligned with Your Destination Time Zone. Set your watch to your destination time zone to start early adaptation to it. For international travel, night flights work if you can sleep on the plane and wake with the sun there. The trick is when you get there to not succumb to a nap but wait to sleep until night falls. If sleeping on a plane is challenging for you, better to do day flights. 3. Stay Hydrated. As always, staying hydrated is key for a healthy body and mind. When flying, it’s even more important to counter the lower humidity in air cabins that can cause dry eyes and leave you more

We need you to Transform a Life! New Pathways for Youth is seeking 35 volunteer mentors to match with youth having experienced Adverse Childhood Experiences. These youth are committed to transforming their lives. They now need you to step up and join their journey. Will you be the one? Join us for a Mentor Introduction Session on Tuesday evenings at 6:15 p.m. and on the 2nd and 4th Thursday of each month at 7:30 a.m. at 1001 East Pierce Street, Phoenix. RSVP to info@npfy.org.

Your commitment is urgent. Transform a life today! Become a New Pathways Mentor! New Pathways for Youth is an evidenced based mentoring program that matches well-trained mentors with youth in need of a caring adult relationship. Mentors receiving coaching and support to guide their mentoring relationship in the life skills curriculum offered by New Pathways.


Guest Editor

Dr. Heidi Jannenga, co-founder and president of WebPT, introduces the “Small Business” issue.



Allan Allford, Sharon Harper and Hugh H. Lytle respond to In Business Magazine’s burning business question of the month.



“Top Influencers for Online Sales Are … (Surprise!),” “For OnDemand Pros,” “New Communications Platform,” “Templates for Marketing Strategy,” “Credit Union Industry’s Race to Excellence” and “Barbershop Evolves to Luxury Salon for Men”

Transform a LIFE. Be a MENTOR. 6


41 National Association of Women Business Owners – Phoenix


Small Business Industry Leaders

Commercial Leasing & Property Management Fisher Commercial Real Estate

Patrick A. Clisham

Steven N. Berger

Kevin M. Judiscak

Engelman Berger, PC Engelman Berger is comprised of experienced lawyers who are well recognized for their expertise and are committed to assist our clients to resolve commercial disputes, document and implement commercial, real estate and public finance transactions, and to prevent futurelegal problems through proper planning. Our clients are national and local lenders, borrowers, lessors, tenants, family-owned businesses, developers, franchise owners, trustees, municipalities and investors. In our litigation practice, we provide creative and focused representation in all federal and state courts, bankruptcy court, arbitrations, mediations and settlement negotiations. We thoroughly analyze the client’s options and explain the strategy and choices involved in a resolution of the dispute.

At a Glance Company Name: Engelman Berger Main Office Address: 3636 N. Central Ave., Suite 700 Phoenix, AZ 85012 Phone: (602) 271-9090 Website: www.eblawyers.com Number of Offices in Metro Phoenix: 1 City Nationally Headquartered: Phoenix Managing Partners/Years With Firm: Patrick A. Clisham, Managing Partner – 9 years Steven N. Berger, Executive Committee – 19 years Kevin M. Judiscak, Executive Committee – 17 years Year Established Locally: 1999 Specialties: Business Disputes, Real Estate Disputes, Bankruptcy, Reorganization, Creditors’ Rights, Business Transactions, Real Estate Transactions, Water Law, Loan Workouts, Mediation, Public Finance, Bonds, Employment

Our experience reaches disputes over real estate issues, water rights issues, commercial landlord and tenant issues, franchise agreement issues, employment and non-compete issues, “business divorces,” debtor-creditor disputes of all kinds, including receiverships, bankruptcies and reorganizations. In our transaction practice, we facilitate business, financing – both public and private, and real estate deals by providing experienced guidance, advice and representation in negotiations and documentation. Examples include water use agreements, commercial lease transactions, asset-based lending documentation, real estate finance arrangements, tax-exempt public financing transactions, information technology sale and use contracts, business formations, and business sales. We provide services to clients in many different industries including lenders, credit unions, real estate developers in residential, commercial, hotel and other projects, restaurant owners, medical practices and professionals, retailers, wholesalers, agricultural concerns, charter schools and other non-profit organizations from churches to community based charities, municipalities and other public entities. The foremost motivation in providing our services is being problem solvers for our clients, helping to identify and achieve their goals. We listen to ensure success. We utilize many proven best practices and exclusive programs that we have developed to assist our clients. Viewing benefits as an investment, rather than a cost, our clients achieve better results and a return on their investment. Our lawyers are recognized in Martindale Hubbell AV ratings, Southwest SuperLawyers, and U.S. News & World Report’s Best Lawyers in America, among other ratings. We are locally owned and our firm and lawyers take an active role in community activities. Our lawyers and staff provide handson charitable services, advice and counsel on boards of directors, fundraising and financial support to a broad variety of important causes to support and enhance our community.

Fisher Commercial Real Estate is a full-service commercial real estate company that specializes in the leasing and sales of shopping centers and other commercial properties throughout Arizona. Fisher Commercial Real Estate has the capacity to competently handle everything from small, unanchored strip centers to larger community and power centers. Its agents also have experience in handling the disposition of free-standing buildings, pads, retail land and mixed-use projects. Top Executive: Steve Fisher Offices (Local): 1 Local Headquarters: 2415 E. Camelback Rd., Suite 700, Phoenix, AZ 85016 Phone: (602) 522-9100 Website: www.fishercommercial.com

Lincoln Properties Lincoln Property Company is an international full-service real estate firm offering real estate investment, development, design/construction management, leasing and property management/ receivership/asset management services. LPC has approximately 7,300 employees and maintains a presence in more than 200 U.S. cities and 12 countries throughout Europe. Top Executive: David Krumwiede Offices (Local): 1 Local Headquarters: 3131 E Camelback Rd., Phoenix, AZ 85016 Phone: (602) 912-8888 Website: www.lpcphx.com

Credit Reporting Reliable Background Screening For more than a quarter of a century, Reliable Background Screening has mitigated risk for thousands of clients by providing expert advice and unparalleled quality services. Its goal is to protect clients, their employees, their business, their brand and their assets. It works to do so by educating its clients about what background information they should have, and what the best methods are to acquire it. Top Executive: Rudy Troisi Offices (Local): 1 Local Headquarters: 3509 E. Shea Blvd., Phoenix, AZ 85028 Phone: (602) 870-7711 Website: www.reliablebackgroundscreening.com

49 2018 Top 50 Small Business Industry Leaders

JULY 2018




By the Numbers

What are leading brands learning from big digital marketplaces?



“Accounting Startup Focuses on Ethnic Niche” and “U.S. Egg Lays It Out for New Dog Treat Company”



“Phoenix Shows Strength as Investment Market,” “GCU’s West-side Commercial Hub,” “Florida REIT Attracted to Tempe” and “Camelback Corridor Is Hot Area”



“Meetings that Work – and Work Out,” “Pooled Approach to Healthcare Coverage” and “Boost Employee Well-Being Programs”



“Facing the Big Data Tsunami” and “Engaging Video Training Content on a Budget”


From the Top

Melissa Gray focuses on building up Avnet’s corporate social responsibility throughout the company.



In the second of a two-part feature on opportunity zones, local attorney discusses capital deployment and tax benefits under the new Opportunity Zone Program.



New releases give fresh insights on business thinking.



2018 Mercedes-Benz AMG GT Roadster Plus: Staying fit at the office can be as easy as keeping a treadmill under the desk.


Power Lunch

Flower Child – Farmhouse Sensibilities Plus: Tacos aren't just for Tuesdays.



Use vs. abuse of technology as a communication tool — and credibility may be a casualty. ON THE AGENDA



Women in the Workforce Forum — Arizona Technology Council Welcome Global Companies to the Valley — Global Chamber



Business events throughout the Valley

More than half (59%) of business leaders surveyed for the latest Future Enterprise Survey from law firm Seyfarth Shaw LLP echoed last year’s greatest management challenge: finding and keeping good employees. futureenterprise.com/home#h-survey

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July 2018 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.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jess Roman, Interim Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global ChamberÂŽ (480) 595-5000 www.globalchamber.org JRonit Urman, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org 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 Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org


JULY 2018


July 2018

VOL. 9, NO. 7

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers David Allazetta

Sean Gordon


Stacey Hanke Mike Hunter Ray Lancaster Steve Moskowitz

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Operations Louise Ferrari

Business Development Louise Ferrari

Russ LaFlash Camron McCartney Parker Shipe Cami Shore

Events Amy Corben



More: Visit your one-stop resource for everything business at www.inbusinessphx.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.


Women of Achievement


Stories of Achievement


Lifetime Achievement Honoree

Join us Oct. 5, the 2018

Renaissance Phoenix Downtown For sponsorship or early bulk registration, email us at event@inbusinessphx.com


JULY 2018

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Tom Beyer

Office Manager Allie Schimmel

Accounting Manager Todd Juhl Corporate Office InMedia Company 1 N. 1st Street, Sixth Floor Phoenix, AZ 85004 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 9, No. 7. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You July 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. Š 2018 InMedia Company, LLC. All rights reserved. No part of this magazine July be reproduced or transmitted in any form or by any means without written permission by the publisher.



What Risk?

Business is risk. It’s inherent in every decision: “Can I grow this idea to support a company — myself, my employees, my shareholders?” “Will a new hire or an investment in additional technology propel our growth?” “Should I take on venture capital?” These were just some of the decisions — and risks — I faced in co-founding and growing WebPT. Every choice had the potential to bring us one step, or even leaps and bounds, closer to achieving our vision — or slide us back in the other direction. And as we grew, so too did the stakes. The decisions we made no longer impacted just us –– they impacted our team and their families, as well as our customers, partners and investors. And when you’re playing in a highstakes game, it’s important to surround yourself with a supportive community. I believe that’s one thing that sets our local business community apart from the rest: There are so many folks who are willing to offer support rather than compete. In fact, WebPT wouldn’t be where it is today without the tremendous support of the local community. We’re fortunate to have access to a wealth of resources to help businesses — from young startups all the way up to seasoned companies that may not realize they’re perpetuating stale ideas — and In Business Magazine has tapped into some of that wealth for this issue. The cover story features local experts in five basic areas of business operation who have identified potential risk hot-spots and offered focused advice on dealing with them. On the subject of leveraging strengths business leaders may not have fully appreciated, Baldwin Tom discusses tangibles and intangibles in the feature article, “Businesses’ ‘Magnificent Seven’ Investments.” And Stacy Hanke, in the Roundtable feature, considers downsides as well as upsides in the way many businesses use technology as an internal communication tool. Attorney Marc L. Schultz completes his two-part discussion of the Opportunity Zone Program with this month’s article on parameters and tax benefits developers should understand with respect to their deployment of capital. On top of all that, this July issue of In Business Magazine includes a Briefs article offering new and counterintuitive information on online marketing influencers, a Startups article on an innovative pet food company in our midst, a Healthcare article on how businesses can boost their employee well-being programs, a Technology article on low-budget options for producing employee trainings as videos, and a look at an aspect of cryptocurrency often omitted from popular debates — tax implications and the IRS. If that’s not enough, this month’s issue also features a Special Section with the 2018 Top 50 Small Business Industry Leaders resource guide. It’s been my pleasure to work with In Business Magazine on many past articles, and I’m pleased to help bring you this July issue.

Dr. Heidi Jannenga, PT, DPT, ATC/L, is the co-founder and president of WebPT, the country’s leading rehab therapy EMR platform for enhancing patient care and fueling business growth. Prior to co-founding WebPT, Jannenga practiced as a physical therapist for more than 15 years. Today, she regularly speaks at technology, entrepreneurship and leadership events, and national PT industry conferences, and serves on the boards of the Children’s Museum of Phoenix, Arizona Science Center, Support My Club, Physical Therapy Political Action Committee and Arizona Community Foundation. webpt.com


Rick Weekly McCartney Podcast ® hosted by

OUR PODCAST Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area. Listen now at inbusinessphx.com.

Dr. Heidi Jannenga Co-founder and President WebPT


Inherent in Business We chose to focus on risk for this issue because it is inherent in all that we do in business and it is on the forefront of many decisions we, as business owners,

these decisions. This July issue is dedicated to that to a degree. We want to thank Heidi Jannenga for leading this

are making. To be risk-adverse and to have “known

issue. Her experience and successes (and, likely, some

outcomes” for what we decide to pursue in business

failures) have brought WebPT to all-star status among

is a goal, but never truly black and white. There is a

us as businesspeople locally and beyond. Her insight

lot of gray area that we work through to get as close

and willingness to share helped us shape this month’s

to risk-free as possible. Well, we are lucky that we

cover story and her ongoing work inspires many of

have mentors, business organizations, experts and

us to strive for great success.

all-nighters at hand to help us in getting through





JULY 2018


Special Section: 2018 Top 50 Small Business


Risky Busin


Experts share how the risks to navigate for enterpris e success

JULY 2018

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Business Intangible s





of Women Business


Owners – Phoenix


Get a year of In Business Magazine Subscribe now at inbusinessphx.com

—Rick McCartney,

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

Story Ideas/PR: editor@ inbusinessphx.com Business Events/ Connections: businessevents@ inbusinessphx.com Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com


JULY 2018



What have you identified most recently as your greatest risk to the ongoing success of your company, and what did you do to prevent it or overcome it?

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com

For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.

JULY 2018






President and CEO Delta Dental of Arizona Sector: Healthcare

President, CEO and Co-Founder Plaza Companies Sector: Real Estate

Chairman, CEO and Founder Equality Health Sector: Healthcare

Cybersecurity breaches may be the single greatest risk affecting all companies regardless of size or industry. It’s certainly on the short list of things that keep me awake at night. Research consistently shows that healthcare data breaches in particular are among the highest across industries, so we’ve dedicated significant resources to mitigating our cybersecurity risk. This includes regular employee training and education, creating stronger firewalls and encryption policies, and engaging with third-party security firms to enhance our network protections. In addition, we’ve launched a program with Medix Dental to offer a free IT security risk assessment to our network dental offices. The no-cost assessment identifies security risks and outlines a plan for remedying concerns to ensure patient data is less at risk. I have no doubt that cybersecurity breaches will continue and cybercriminals will likely become more clever and creative despite better awareness among executives and the investments made to protect their organization’s data. Business owners and executives will need to ensure their security efforts also continue to evolve to combat these threats.

The most important thing any company can do is to always maintain the reputation for excellence, credibility, ethics and accountability. Nothing is more important. To avoid risk requires everyone in the company, every day, working with the right work ethic in mind. It requires being timely, accountable, respectful of all, and responsive. It means always meeting — and, hopefully, over-delivering — on expectations. The right work ethic protects and strengthens the ongoing success of a company, and protects it from the risks inherent in the marketplace. And it starts with leadership and constant mindfulness of the standards mentioned previously. Additionally, we have found that it is critical to be versatile, innovative and able to work across market sectors. Companies can find themselves in a high-risk situation if they are not able to adapt to the economic environment around them. By working in sectors that have lower risk and stronger fundamentals, and by focusing on a culture of innovation in all we do, we minimize our risk and best position the company for future success.

“Every business is a risk — even more so when you’re banking your revenue on results, as we are at Equality Health. It’s literally written into our customer contracts that we get paid according to the metrics we deliver; specifically, how much more we open up access to culturally competent healthcare and improve outcomes for vulnerable patient populations. Definitely a risk, but it’s where the entire healthcare economy is headed and is central to our purposedriven mission. Our approach has been to embrace, not just accept, risk. We hire the best people. We give them the tools they need to succeed. More importantly, we make innovation a core value. A risk is a risk for a reason: It involves diving into uncharted territory to create change. And change doesn’t occur without innovation and passion.

Delta Dental of Arizona deltadentalaz.com Allan Allford is president and CEO of Delta Dental of Arizona, the leading dental benefits insurance company in the state. Allford is also the president of the Delta Dental of Arizona Foundation, which helps provide access to dental services and oral health education for Arizonans in need. In addition, Allford serves on several boards and professional associations within the Greater Phoenix community.

Plaza Companies theplazaco.com Sharon Harper is president, CEO and co-founder of Plaza Companies. Her forward-thinking commitment has helped make Plaza one of the premier real estate firms in Arizona and has earned her and Plaza respect throughout the industry and across the country. She is not only dedicated to her business endeavors, but is also actively involved in many different aspects of the community.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

Equality Health equalityhealth.com The common thread throughout Hugh H. Lytle’s 25 years of healthcare leadership is a focus on population health innovations with a strong social mission and a desire to bring systemic change to the U.S. healthcare system. As founder, chairman and CEO of Equality Health, Lytle works with managed care plans, employers and health systems to deliver a new level of culturally sensitive care to our most underserved communities.



by Mike Hunter

For On-Demand Pros Moonlighting.com is teaming up with gig economy pioneer Marion McGovern and other trailblazing companies to transform the way freelancers find work, make money and stay secure. “Essentially, we’re creating a way for gig workers to control their records without depending on a separate firm to secure the job. This means those platforms will cost less, and the workers make more,” says McGovern. “As we enhance this ‘platform for the

Top Influencers for Online Sales Are … (Surprise!) Top-ranked reviewers on online retail sites such as amazon.com may influence purchases, but a research study from Indiana University’s Kelley School of Business finds that those who post reviews less often and more informally can be seen as more trustworthy and have more of an impact on sales. Shyam Gopinath, assistant professor of marketing at Kelley, and two co-authors of a paper accepted for publication by Marketing Science found that the influence of top-rated reviewers was limited to instances such as brand-new products or products with a high variance in existing reviews. “Opinion leaders are typically defined as consumers who generate a high volume of influential word of mouth,” Gopinath and his colleagues wrote. “Since its influence is rarely measured directly, marketers trying to identify key influencers usually look for users who generate a high volume of content along with feedback from other users, such as helpfulness ratings. “While these reviewers generate a large volume of word-of-mouth and for this reason would seem to be inherently attractive to marketers, their actual influence on sales is much more complex.” Differences in influence were driven both by what they wrote and who reviewers were. “Our analysis demonstrates that top-ranked reviewers write reviews that are longer, more formal and with more punctuation but that are less social and less effective,” they said. “The results show that marketers should be extremely cautious in using reviewer rankings alone as a measure of opinion leadership or as a basis for establishing an influencer network.”

The algorithms used to rank reviewers on Amazon.com and other e-commerce sites are proprietary, but generally they appear to be based on the volume of reviews posted by a user and other factors, such as frequency. The top 1,000 Amazon reviewers are identified with badges, seen by some as a measure of credibility. Gopinath and his co-authors found that the effect of top-ranked reviewers on sales decreased as the age of the product rose, while the value of lower-ranked reviewers grew over time. “Nowadays, consumers can easily share their product experiences via the internet. Online communities and influencer networks can play an important role in increasing firm profitability, especially if managed properly,” they wrote. “Our findings help marketers understand why some reviewers are more impactful than others. … Our results show that it is important for a firm to identify, address and motivate influential word-of-mouth disseminators, rather than rely on site-wide rankings.” The paper’s other authors are Steve Carson, the David Eccles Faculty Fellow and a professor of marketing, and Elham Yazdani, a Ph.D. candidate in marketing, both at the David Eccles School of Business at the University of Utah. Gopinath, Carson and Yazdani studied review and sales activity for 182 new music albums released over a three-month period in early 2014 on amazon.com, the leading music retailer, and then compared it to direct market access sales data from A.C. Nielsen. Their research was confirmed by a similar “robustness” check study of those who posted reviews of camera equipment. —George Vlahakis, at Indiana University Kelley School of Business (https://kelley.iu.edu)

While 2017 marked 16-percent growth in U.S. eCommerce sales, it was outpaced by a 30-percent rise in online shopping fraud, reports Chargebacks911, a leading dispute mitigation and loss prevention firm. www.chargebacks911.com

people,’ there’s no reason to think the future isn’t bright.” moonlighting.com

New Communications Platform Tipi app is one of the newest platforms meant to address various issues resulting from stalling operational communication. It is an internal communications app that can increase operational control, team accountability, team alignment and efficiency by organizing company information and documenting internal business processes Tipi’s platform helps to structure and share information by organizing notes in folders by relevant work topic, and turns daily communication into a searchable knowledge base. It improves transparency and helps with issues of rewards and feedback, onboarding and retention, and remote team engagement and communication. tipihub.com

Templates for Marketing Strategy Infusionsoft recently unveiled a new platform built to empower millions of small businesses worldwide to create order in a new world where customers have more choices and expect personalized service. Using this redesigned interface and any of more than 50 pre-built, industry-specific templates, Infusionsoft users can implement marketing strategies proven to work for thousands of small businesses just like them. It is easy for small businesses to connect Infusionsoft to the other apps they rely on every day, with more than 1,000 integrations available now. Small businesses save time and increase productivity by having all their customer information and interactions in one place. Free trials of the interface are available. infusionsoft.com


JULY 2018



Barbershop Evolves to Luxury Salon for Men Phoenix is part of an ambitious 62-store expansion by Texas-based Boardroom Salon for Men, with multiple openings planned for early next year. “Boardroom prioritized the Phoenix market, with the opportunity to open eight to twelve salons, due to Phoenix being a large, vibrant, growing city with a strong business climate,” says Bruce Schultz, Boardroom co-founder and CEO. “It’s a city focused on a healthy lifestyle, with many successful shopping areas, great restaurants and a track record of entrepreneurial success.” Husband-and-wife team Bruce and Heather Schultz pioneered the concept of luxury salons for men with the launch of Boardroom in 2004, when the industry did not exist, delivering a relaxed grooming experience for men by providing exceptional haircuts, shaves and spa services in an elegant, country club environment. What started as an idea to build a single salon has now grown to 30 locations across Texas, Tennessee, Oklahoma and Georgia. Says Schultz, “Over the past 14 years, we’ve built a strong brand, reputation and proven business model that makes Boardroom a preferred tenant in the finest retail centers across the country. Our success has been directly related to our ability to build the best teams in the industry and provide a consistent client experience.” Another distinguishing factor is Boardroom’s annual membership, which offers members the freedom of unlimited haircut services plus 10 percent off all other services and products for one year. Memberships are honored at all Boardroom locations, making it convenient for frequent business travelers. Boardroom offers its staff competitive compensation and benefits packages, as well as career advancement and relocation opportunities. It

also takes a detailed approach when delivering value to clients by refining every aspect of their experience. With luxury salons for men becoming a fast-growing business category, the Schultz’s recognized an increased demand for licensed barbers. The couple recently opened Brighton Barber Institute (BBI), a premier barber curriculum to develop the industry’s top future talent. —Mike Hunter Boardroom Salon for Men boardroomsalon.com Brighton Barber Institute brightonbarber.com

At the recent CO-OP Financial Services THINK conference in Chandler, “Race to Excellence,” about 750 credit union leaders gathered to learn strategies to achieve excellence through the digital transformation of operations and member (customer) services. Technology is changing faster than ever, presenting new challenges and opportunities for credit unions — but, through strategic partnerships and collaboration, our industry is well-positioned to thrive. There were three key takeaways from THINK that to me sum up the changes in the credit union industry. First, having a member-centric strategy is crucial to helping redefine excellence for credit union members. Every new technology initiative, whether it’s open banking or artificial intelligence (AI), should be anchored around humanizing the customer experience. As financial commentator and THINK speaker Chris Skinner explained, “Today’s digital age demands you focus on the consumer first and build backward. It’s the opposite of what we have traditionally done. In the digital age, the most important piece is the humanity.” Second, technology advances, themselves — particularly AI — were discussed throughout the week. CO-OP unveiled “COOPER,” a foundational step to providing this technology to credit unions. Here is truly a membercentric tool, in which we can improve user experience, fight fraud and do our jobs better. Third, credit unions must rely on strategic business partnerships and collaboration to overcome the many hurdles in the race to excellence. That

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collaboration was on full display at THINK and it was encouraging to see so many credit union leaders sharing ideas and working together to creatively solve problems. Our industry has a goal — to meet our members’ needs with immediacy, relevance and personalization. We have the tradition of member service excellence to go with the latest in payments technology. As was said at THINK repeatedly, integrating that technology into a complete seamless experience for our members will be the key to our success. —Ray Lancaster, president and CEO of Pyramid Federal Credit Union (www.pyramidfcu.com) CO-OP Financial Services co-opfs.org

Phoenix Children’s Hospital has been ranked by U.S. News & World Report’s “Best Children’s Hospitals” this year in 10 out of 10 specialties, one of only 23 children’s hospitals in the United States. health.usnews.com/best-hospitals/pediatric-rankings

Photo courtesppy of Boardroom Salon for Men (top)

Credit Union Industry’s Race to Excellence


Leading Brands Are Learning from Big Digital Marketplaces New 4P model of marketing is based on precision, personalization, persuasion and perfection of execution by Mike Hunter

Large, global eCommerce communities like eBay, Amazon and Alibaba are disrupting the retail marketplace by bringing together vast numbers of buyers and sellers in frictionless transactional environments. Inspired by their success, brand marketers are rethinking go-to-market strategies to better integrate digital advertising with personalized shopper engagement and more effective conversion programs. “Ingenuity in the Global eCommerce Community,” new research by the Chief Marketing Officer Council in collaboration with eBay, explores the disruptive and transformative nature of global eCommerce communities — how the massive scale, data quality and customization capability of online marketplaces are bringing new levels of customer insight, enriched experiences and added value to brands. Digital commerce accounts for about 10 percent of the $5 trillion in total annual sales across all retail channels.

What makes these online marketplaces compelling and attractive to consumers? Easy to search and find products


24/7 convenience


Lower prices and pricing transparency


Better selection and availability


Quick and assured delivery


Good deals, discounts and offers


Third-party reviews and ratings


Mobile device accessibility


Secure and easy transaction


Predictable experience


Leveraging new technology to redefine online shopping


(AI, structured data, etc.) Access to new ideas, products and options


Richer, more relevant content


Personalized interface


Member benefits


Social media integration


Multiple payment options


Guaranteed satisfaction


Digital assistant support




Source: CMO Council’s “Ingenuity in the Global eCommerce Community” study bit.ly/cmos-spark

‘INGENUITY IN THE GLOBAL ECOMMERCE COMMUNITY’ The study asked respondents to name their top five ways in which big eCommerce channels were impacting the go-tomarket planning and strategies of major product marketers. According to the marketers surveyed, these included putting pressure on them to lower pricing; rethinking monetization and customer revenue models; forcing them to seek greater brand differentiation; recalibrating and allocating digital marketing spend; and shifting toward an agile, real-time marketing mode. “The millennial-driven shift to digital retail shopping is prompting the evolution of the old 4P model of marketing; now, more notably, we need precision, personalization, persuasion and perfection of execution to multiply purchases,” notes Donovan Neale-May, executive director of the CMO Council. “Exemplifying this are innovations in customer attraction, convenience, conversion and consistency of experience that are behind the success of eBay, Amazon and other digital commerce communities.” For its part, eBay is using advances in technology, such as augmented reality, artificial intelligence and machine learning to improve search relevancy and make buying and selling on eBay much more gratifying. “eBay has made it even easier to shop and sell on the platform by leveraging new technology to redefine what online shopping means today,” says Bridget Davies, eBay’s vice president of Advertising and Marketing Activation. “We use AI and big data to learn how people move at a granular scale to better connect with consumers, brands and businesses.” Davies points to eBay’s AI-powered, personalized homepage and more than 1.1 billion listings using structured data. “More than 80 percent of eBay users are logged in when they access our platform, allowing us to deterministically identify users across channels, browsers and devices rather than relying on cookie-based probability models,” she adds. The CMO Council report notes that marketers today are challenged to evidence how they are using data and real-time insights to “gain greater satisfaction from every customer interaction” and determine whether they have the ability to “scale the way they track the digital buying trail.” Chief Marketing Officer Council cmocouncil.org

The largest mall in the world by retail area is the Dubai Mall in the United Arab Emirates. It has more than 1,200 stores, more than 14,000 parking spaces, 250 hotel room in a five-star luxury resort, 22 movie screens, and 120 restaurants and cafés, along with exotic attractions of more than 140 species of aquatic animals. bit.ly/cmos-spark

The CMO Council’s new thought leadership initiative gathered insights from nearly 200 global brands and their physical and digital retail partners. This included category leaders like Lenovo, LEGO, Puma, Casio, Serta, Bosch, Brooks, PERRIN PARIS and Fruit of the Loom/ Spalding. The resulting best-practice report accents how brands are using proprietary data and insights to execute smarter customer acquisition campaigns that key off-of-seasonal, event-related, pricebased and more personalized offers and promotions. According to the survey, well over 50 percent believe large eCommerce communities are revolutionizing and reinventing the global retail marketplace and forcing them to rethink every aspect of how they go to market. In a telling self-assessment, 60 percent report that they need to embrace a more cohesive, integrated, multi-channel digital retail strategy to improve their own eCommerce business. bit.ly/cmos-spark


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U.S. Egg Lays It Out for New Dog Treat Company Scrappy & Scraps Gourmet Pet Treats is a local enterprise founded earlier this year with a mission to harvest eggshells from local restaurants and hotels and bake them into pet treats. This helps the food service industry lower its environmental impact and, in turn, benefit the eco-system. The recycled shells will be collected weekly, pasteurized and ground into a fine powder. The eggshell calcium helps build strong bones and teeth, aids in circulation, hormone distribution, muscular movement and neuron transmission. The magnesium in the shells also helps regulate blood pressure and heartbeat. The pet food company’s partnership with U.S. Egg got it off the ground. In fact, the inspiration for Scrappy & Scraps came from U.S. Egg owner George Gebran’s two young daughters. U.S. Egg is donating leftover eggshells to be used as an ingredient in the dog treats and estimates it will donate approximately 10,920 pounds of eggshells. “As a restaurant that prides itself on being ecologically conscious, we have a duty to reduce our environmental impact and help others do the same. Recycling the eggshells and baking them into nutritious dog treats will not only benefit the environment but other businesses, people and animals,” Gebran says. The concept fits well with U.S. Eggs’

commitment to making its restaurants environmentally friendly. The restaurants recycle, are carbon neutral, offer guests leftover coffee grounds for compost, have lowered the number of deliveries each week, use natural cleaning products and energy efficient lights. Through its partnership with Scrappy & Scraps, it will divert about five tons of eggshells from landfills this year. The recycled eggshells will be collected weekly and ground into a fine powder to be added to the dog treat batter. Eggshells are high in calcium and magnesium which helps build strong bones and teeth, aids in circulation and hormone distribution. In addition to the nutritious value for dogs, the shells will no longer take up space in the local landfill. About five tons of eggshells will be diverted from landfills this year. —Mike Hunter Scrappy & Scraps Gourmet Pet Treats scrappypettreats.com U.S. Egg useggrestaurant.com In its May newsletter, the Arizona

Accounting Startup Focuses on Ethnic Niche The Fuerza Local Business Accelerator Program is a six-month course that teaches entrepreneurs some of the fundamentals to launch or develop their business, creating a firm foundation for their goals. Lessons on accounting, business planning, social media, marketing and many other important topics are taught completely in Spanish by industry professionals and experts, giving students the opportunity to learn from some of the best in the Valley in their native language.

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Easy Numbers Consulting, LLC was one of the first companies to participate in Local First Arizona Foundation’s Fuerza Local Business Accelerator Program, which trains underserved Hispanic entrepreneurs on the basics of running a successful business. Ana Gordillo founded her company in 2015 to provide accounting services — from trade name registration, LLC filing, bookkeeping, payroll and income tax services to financial business advice and small-business education — to small businesses of fewer than 20 employees. With years of experience in the field, Gordillo took the step in 2015 to launch her own company. “I wanted to help my Latino community, who are known for being great entrepreneurs but sometimes lack the resources to properly keep records and understand their accounting to run a financially healthy business.” Her few initial clients, she says, “began to refer me to other business owners who also valued my help and trusted me to manage their accounting. Now, after three years of being in the business, I am proud to see my clients thrive. My business has given me the opportunity to serve over 100 entrepreneurs accomplish starting goals such as registering their LLCs to guiding them to make the right financial decisions to expand their businesses.”

Gardillo limits her clientele to businesses of 20 employees. “This allows me to focus better on businesses freshly starting or ones that, despite their small size or time in business, still struggle to manage their numbers,” she says, reiterating her belief in the need to educate those types of businesses of the importance of keeping their numbers organized and up to date regardless of how small they are. “Being a business owner is not an easy task. Beginnings were financially tough, as I invested all my savings in establishing my office. I came across many challenges, from making my business known, making all the decisions on my own and learning from my mistakes. Now, my business is well established and many times I find myself supporting my clients when they are going through rough patches by sharing my experiences.” —RaeAnne Marsh Easy Numbers Consulting, LLC facebook.com/easynumbersc

Arizona Commerce Authority indicated that capital formation in Arizona’s startup ecosystem is continuing to increase. It reported, “Eleven Arizona companies raised $67 million during the first quarter of 2018, according to data from PitchBook, the Venture Monitor report and the

Criminals Have A Plan To Steal Your Money. 1



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At Bank of Arizona, we offer a variety of fraud prevention services that can help you detect and prevent criminal activity. Call us today to discuss how we can help you fight fraud.

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© 2017 Bank of Arizona, a division of BOKF, NA. Member FDIC.

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Taking the Pulse of the Medical Office Market

CBRE Group, Inc. has created workplace planning product to help companies apply best-in-class workplace trends to their office layout, recognizing businesses’ increased interest in applying workplace strategy to their real estate process. The first of its kind in the industry and available to companies of any size, Spacer delivers a custom, architectready space program with square footage recommendations for every desk, office and collaboration space, along with the built-in amenities that matter to a company’s workforce, such as wellness rooms and community areas for eating and socializing. Targeting companies with 15-300 employees that may have never enlisted the help of a workplace consultant, the Web-based technology offers a user-friendly interface and a gamified experience that recommends customized office workspace specifications designed to help organizations enhance their company culture, drive productivity and creativity, and attract and retain the best talent. workplace.cbre.com

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steady, averaging seven percent. Sales of medical office condos rose approximately eight percent from fourth quarter 2017. Prices for medical condos fell slightly in the start of 2018 with a median price of $176 per square foot in first quarter. Sales of traditional, non-condo buildings dropped by 40 percent from the end of 2017. The median price for traditional buildings also fell to $136 per square foot, down from $157 per square foot in 2017. Transaction totals peaked in 2015 for traditional medical office buildings and reached cyclical highs in 2016 for medical office condos. Prices rose each of the past two years and are expected to be thwarted only by prospective increases in interest rates. The outlook for medical office space remains good, as the two main drivers for this space are population growth and expanding employment base. Year-over-year job growth has topped three percent, which is roughly twice the national average. More than 7,000 positions have been added in the healthcare industry. Growth in demand and a diminished pace of construction will likely prove this slowdown to be a temporary disruption during an otherwise extended, healthy growth period for medical office space. Colliers International Group Inc. colliers.com


Age-in-Place In partnership with Cadence Senior Living, Ryan Companies US, Inc. is designing, developing and building Azure Mesa, an upscale senior living community with an “age-in-place” model that will accommodate a total of 170 private pay, market-rate units. Construction on the 183,000-square foot project is now underway and expected to be complete in Summer 2019. HFF worked on behalf of Ryan Companies and Cadence to arrange a joint venture equity partnership with an institutional partner. The Cadence-Ryan team is working on a second Azure location in North Scottsdale and recently received Scottsdale City Council approval. www.ryancompanies.com www.cadencesl.com • www.hfflp.com

by Mike Hunter

Developer Expands into AZ Landsea Homes enters the Arizona market with the purchase of land in Chandler for a community that will include 78 single-family homesites and resort-style amenities. Land development is expected to begin in fall 2018, and the first closings are expected in late 2019. “Chandler’s low unemployment, steady job growth and premier school district have made it a destination location for new homebuyers,” says John Ho, chief executive officer of Landsea Homes. “Home to important, global technology companies like Intel and Orbital ATK, Chandler is the perfect market to introduce Landsea Homes.” landseahomes.com

Repurposing Prestigious Home Sites Custom homebuilder Green Street Communities has broken ground on two residential neighborhoods in Arcadia and Central Phoenix. Campus Grove, located in the Arcadia area, will offer four different floorplans for its 13 lots. The one- and two-story homes will range between 1,879 and 2,850 square feet. Acacia Court, northwest of 7th and Northern avenues, is in Central Phoenix’s prestigious Royal Palm neighborhood. Its six lots situated in a private cul-desac will offer various 3,000+-squarefoot floor plans on 10K+ sf lots. greenstreetcommunitiesinc.com

Marking the second-lowest vacancy rate in the past 20 years, Greater Phoenix’s multifamily market dropped 50 basis points to 5.4 percent in Q1 this year (even with nearly 9,000 new units delivered during the past 12 months). Driving this is the area’s population expansion and dynamic job growth — during the past 12 months, payrolls have expanded by 3 percent with the addition of 61,600 new workers. colliers.com

Photos courtesy of Ryan Companies US Inc., Landsea Homes and Green Street Communities (bottom, l to r)


The medical office space market slowed during the first three months of 2018. Rents fell, vacancy rose and sales of medical office properties fell off a bit. However, Colliers International anticipates this is a temporary disruption since fundamentals of the market remain strong. Vacancy in medical office buildings rose 10 basis points during the first quarter to 14.4 percent. The rate remains approximately 100 basis points lower year over year in both oncampus and off-campus medical properties. First quarter posted negative net absorption of approximately 11,500 square feet. Rental rates in medical office properties fell slightly during first quarter, following a rising trend in 2017. Asking rents at the end of first quarter were $23.01 per square foot, up less than one percent from a year ago. Delivery of new projects pushes rental rates up and a lack of new supply has kept rates lower. Asking rents in on-campus buildings have dipped lower in each of the past three quarters and ended first quarter at $24.96 per square foot. Rents in off-campus medical buildings also fell in first quarter. Current asking rents are $22.10 per square foot in this category. Sales of medical office properties slowed during the first quarter, though sales have picked up in the early part of second quarter. Prices inched lower and cap rates remained



by Mike Hunter

Meetings that Work – and Work Out It’s been said that “sitting is the new smoking” and a recent study revealed that those who sit without moving for more than two hours at a time during regular waking hours have a higher mortality rate than those who don’t. Wellness programs have become a popular way of addressing this. But imagine if company meetings provided teams with the opportunity to address and achieve organizational challenges and goals while also encouraging and enabling individuals to reduce stress and improve their health at the same time. Adventist Health – Portland — a faith-based, notfor-profit healthcare network serving the Portland, Oregon, metro area — did more than imagine it; it boldly pioneered the concept of trading conference chairs for treadmills and stationary bikes (see video at https://vimeo.com/261345865/d408235b2e) to improve employee wellness, which has become a top concern in nearly every industry across the globe. This innovative step is just one of many ways Adventist Health – Portland — which was named one of the healthiest U.S. workplaces — fulfills its mission to enhance employee health and wellness while improving engagement, productivity and job satisfaction. adventisthealth.org/Portland

Pooled Approach to Healthcare Coverage The Main Street program that Holmes Murphy started in 2014 to offer captive insurance programs for businesses with more than 50 employees was expanded earlier this year to target small businesses with 10–50 employees. The new program is not, actually, a captive but it works similarly to the original program by pooling together businesses to offer the best possible rates. Main Street is geared toward small companies that aren’t provided the same type of cost containment strategies many larger companies have available. Businesses are aggregated together to form a healthy risk pool, allowing rates to decrease and creating increased buying power for businesses. “We’ve seen great success with the Main Street program in Nebraska and hope to continue that success while helping small businesses in other states,” says Beau Reid, senior vice president of Employee Benefits at Holmes Murphy in Omaha. Scottsdale is one of three new markets Holmes Murphy recently added for its Main Street program, and the company has plans to expand the program nationwide later this year.

Boost Employee Well-Being Programs An increasing number of companies are implementing well-being programs to help their employees live healthier lives, reduce healthcare costs, and improve employee productivity and satisfaction. A recent employer survey by Willis Towers Watson found that 72 percent of U.S. companies “aim to improve their health and well-being strategies and programs over the next three years to differentiate themselves from organizations with which they compete for talent.” In fact, more than half (53 percent) of employees with access to a company well-being program say the initiative has made a positive impact on their health, according to a recent UnitedHealthcare survey. Among those, 88 percent said the programs motivated them to pay more attention to their health, 67 percent said the initiatives helped them reduce their bodyweight, and 30 percent said the resources helped detect a disease or medical condition. To help employers support their employees’ health goals, here are five C’s that may drive engagement and create a successful well-being program. Commitment — Executive leadership must make wellness a priority by leading the program and creating a culture of well-being. It is important they set the tone for their organization and serve as “CEO of Well-being” by passionately and visibly supporting, participating in and communicating the importance of wellness. Also, mid-level managers and direct supervisors should also set the tone for their departments by informing, educating and motivating employees. Communication — When it comes to wellbeing programs, “launch it and leave it” is not a good strategy. Businesses should establish communication touch-points throughout the year that reintroduce employees to the program and remind them about the value of participating — showing them what’s in it for them from the intrinsic perspective (their health) to the extrinsic perspective (available incentives). To support those efforts, businesses should consider forming a “Wellness Champion Network” composed of a group of volunteer employees who help in planning, communicating and implementing the program. Also, a well-being program website or intranet site can provide information and enable employees to get their questions answered.


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United Health Foundation’s “America’s Health Rankings® Annual Report,” the longest-running annual assessment of the nation’s health on a stateby-state basis, ranks Arizona at 31 overall. mericashealthrankings.org

Culture — Employees spend more waking hours at work than anywhere else, so it makes sense that creating a healthier environment would help support positive behavior changes. Some examples include providing stress-related educational information, creating indoor/outdoor walking paths, installing bike racks and on-site exercise equipment or yoga classes, a lunchtime walking club or a “Take the Stairs” campaign, and providing healthier vending options. Cash — Research shows that valued incentives drive participation, which can ultimately lead to engagement. Incentives must resonate with each business’s unique workforce. For example, merchant gift cards and premium credits resonate well with most employees. But incentives are not a one-size-fits-all proposition. The value and appeal of a particular incentive varies among employees, making the right incentive selection important. Contribute — A well-being program cannot be billed as “employee-focused” if employee input is not solicited and applied. By having an opportunity to share their feedback, employees can provide key information to structure the program to help meet their needs and interests, and give them a sense of ownership. It’s also valuable for the business leadership to both solicit and give open and honest feedback to further identify what is working and what needs to change to increase engagement and satisfaction. These five C’s can help improve a company’s well-being program and earn an A+ in employee engagement. —David Allazetta, CEO of UnitedHealthcare Employer & Individual for Arizona and New Mexico, which offers additional information about well-being programs on its website (uhc.com)

Striving to help make every day better for Arizona business. Your business succeeds when you take care of your people. We succeed when we take care of you. United Healthcare offers a broad portfolio of health plans designed to help every Arizona business give their employees access to affordable, quality care and resources so they can live healthier lives.

Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of Arizona, Inc. ©2017 United HealthCare Services, Inc. MT-1127685.0 3/17 ©2017 United HealthCare Services, Inc. 17-4120





by Mike Hunter

Facing the Big Data Tsunami An estimated 40 zettabytes (43 trillion gigabytes) of data will be created by 2020 (an increase of 300 times the amount of data in circulation in 2005), at a rate of 2.5 quintillion bytes per day. “The explosion in big data is both good news and bad news,” says James D’Arezzo, CEO of Condusiv Technologies. “It will make possible advances in dozens of fields, but it will also present serious challenges to the economy’s already overburdened IT sector.” D’Arezzo, whose company is a world leader in software-only storage performance solutions for virtual and physical server environments, adds, “Collecting data won’t be much of a problem. The real issue will be storage, accessibility and performance.” The Internet of Things is, of course, a major contributor to the boom in data collection and analysis; healthcare is one of many fields that is being greatly impacted by IoT advances. But D’Arezzo notes that in the business sector, a major across-the-board function—marketing—has gone from being a largely analog and promotional activity to a heavily digitized means of delivering business growth that has come to rival may soon surpass traditional IT as a center for technology spend. All told, it is estimated that 86 million U.S. workers now perform jobs that require the regular use of a computer. A recent survey of global IT managers suggests that degraded system performance due to slow processing of database applications costs each of these workers an average of fifteen minutes per day; at the current median salary of $58,000, that represents an annual time loss equivalent to $1,812 per worker, or almost $156 billion across the economy. Given the pressures of the big data boom, that productivity loss may soon increase dramatically. But it will not increase evenly, and those who fail to recoup endangered productivity will soon face a steepening competitive disadvantage. “To keep up, not just with the overall demands of big data but with their nimblest competitors, organizations will have to get the most out of their IT technology,” says D’Arezzo. “Part of the solution may be buying new hardware, but there are quicker and more cost-effective things IT system managers can do. One is to implement software that reduces input and output, which can improve [application] performance dramatically.” condusiv.com

JULY 2018



Engaging Video Training Content on a Budget A young, tech-based workforce has pushed the demand for online training and eLearning courses to unprecedented heights. Perhaps the biggest driver of this workplace demand is video content. Video training is such an effective means to facilitate learning, appealing to multiple brain functions at once and drastically improving retention. For a staff gearing more toward a millennial edge, courses embedded in video functionality take advantage of the primary means through which young people now absorb information. The great news is, making video content does not need a Hollywood-style set, but can be created on any budget.


This is the first and perhaps most daunting step to take – but it is the part of the process where businesses can save the most money. Thanks to some rather amazing technological advancements, the camera in most new phones is now remarkably powerful, focused and fully capable for most video capturing endeavors. In fact, as of 2017 the Apple iPhone 8 can shoot video in 4K. The same level of quality advancement goes for the built-in camera that is a frequent feature of many current laptops and desktops. In most cases, using the video capture from a phone or computer will be the most economical solution. For those who have some play in their budget, though, splurging on a microphone may be advisable. A number of professional-quality microphones can be had for around $100-$200, many podcast-style desktop microphones with USB outputs for easy connectivity. A stand for the phone camera can be purchased for under $50. So, a couple hundred dollars can really go a long way.


The hardware is covered, but what about the software and the process? How to curate the

content? Subtitles? Overdubs on sound? What about storage? The average minute of 4K video captured at 60fps is 400MB on an iPhone 8. How will the employees access content? Interact with content? This is where an all-in-one video content management system can prove to be the most budget-friendly, organized and advanced way to cover every facet of the video training content. A quality content management system can provide cloud storage for captured video, edited files and content library, saving a great deal on additional storage and servers. The system allows editing of content inhouse with relative ease; most systems are designed with the inexperienced user in mind, so no need to engage with the IT department or hire a marketing professional with video background. The depth of editing varies by product, but most will let the user include transitions, dub over video with new audio and music, add graphics, and even edit the frame with different filters and zoom capabilities. The strong point of a video content management system is specifically regarding video content. These platforms allow users to upload libraries of content and let managers assign specific videos to employees based on areas they would like for them to grow in. Employees can scan through the greater library; search by department, or even by keyword within the video itself to quickly find the info they need. Users can leave feedback at various points in the video, or chat about content within the system to gain a better-rounded approach and build team camaraderie. —Sean Gordon, CEO of HIRENAMI (hirenami.com), which offers a suite of solutions on its video content management platform; Gordon took his 20 years’ experience recruiting, hiring, training and unlocking the talent of people to found the company initially to address recruiting challenges for employees and employers

A recent Gartner Group study suggests that marketing leaders now devote a portion of their expense budget to technology equal to 3.24 percent of total enterprise revenue, just barely behind the current CIO technology spend of 3.4 percent of revenue (Pemberton, Chris, “2016-2017 Gartner CMO Spend Survey Reveals the CMO’s Growing Mandate,” Gartner Group, January 10, 2017).


The Opportunity Zone Program Deployment of capital: parameters and tax benefits (Part 2) by Marc L. Schultz

Part 1, last month, focused where the Opportunity Zones are located and the requirements to create an O-Fund.

Marc Schultz is a partner in Snell & Wilmer’s Phoenix office whose practice is concentrated in federal, local and state taxation matters, including complex transactions involving corporate, limited liability companies, limited partnerships, tax exempt entities and real property. Schultz currently chairs Snell & Wilmer’s Tax Credit Finance, Renewable Energy, and Opportunity Zones and Opportunity Funds groups, and is a frequent speaker and panelist on the New Markets Tax Credit program as well as the emerging impact of Opportunity Zones and Opportunity Funds. He is a graduate of Chicago-Kent College of Law (J.D.) and New York University School of Law (LL.M. Taxation) and formerly served on the board of directors for the Arizona Housing Finance Authority as an appointment by Arizona Governor Doug Ducey. swlaw.com

JULY 2018



The Opportunity Zone Program is new federal income tax incentive program designed to encourage private capital investment in Opportunity Zones (O-Zones), which are certain designated areas throughout the United States. Opportunity Funds (O-Funds) act as intermediaries between O-Fund investors and the actual investments in the O-Zone. O-Funds are required to hold 90 percent of their assets in O-Zone Property.


An O-Fund can satisfy the 90-percent requirement by making a direct cash equity investment after December 31, 2017, in a domestic corporation, partnership or limited liability company that constitutes an O-Zone Business at the time of investment, and for “substantially all” of the O-Fund’s holding period. In order to qualify as an O-Zone Business, a number of requirements and restrictions similar to those applicable under the New Markets Tax Credit (NMTC) Program need to be satisfied, including, but not limited to, a prohibition on certain “sin” businesses. Additionally, substantially all the tangible property owned or leased by the business is required to be O-Zone Business Property, at least 50 percent of the gross income of the business is required to be derived from the active conduct of a trade or business, a substantial portion of the intangible property of the business is required to be used in the active conduct of such business, and no more than 5 percent of the average of the aggregate unadjusted tax bases of the property of the business can be comprised of what is called “nonqualified financial property.” Upcoming guidance should provide some clarity with respect to many of these rules. It is hoped this guidance will follow the rules applicable to the NMTC program – which is a mature industry with a fair amount of developed law.


An O-Fund can satisfy the 90-percent requirement by directly acquiring O-Zone Business Property. Also, as noted above, “substantially all” of the tangible property of an O-Zone Business is required to be O-Zone Business Property. O-Zone Business Property is tangible property used in a trade or business that was acquired by purchase from an unrelated person after December 31, 2017. Relatedness is based upon a “more than” 20 percent test. Also, to be considered as O-Zone Business Property, either the original use of such tangible property in the O-Zone must commence with the O-Fund or the O-Zone Business, or the O-Fund or the O-Zone Business must substantially improve the tangible property. The substantial improvement requirement will likely be necessary for projects involving real estate, and requires that improvements are made to the tangible property during any 30-month period commencing after the acquisition date and the cost of the improvements must be at least as much as the tax

Information about Opportunity Zones is available on the Treasury Department’s Opportunity Zone resource page. cdfifund.gov/Pages/Opportunity-Zones.aspx

basis of the property at the beginning of the 30-month period (which would likely be the acquisition price of the property).


The Opportunity Zone Program provides three primary tax incentives to O-Fund investors. First, an investor may defer any gain by investing all or a portion of such gain recognized from the sale or exchange of an asset with an unrelated person in an O-Fund within 180 days of the recognition event. The amount of gain to be deferred by the investor (Deferred Gain) is equal to the amount that the investor contributes to the O-Fund. The Deferred Gain is required to be included in income upon either the date the investor sells or exchanges his or her interest in the O-Fund or December 31, 2026, whichever is earlier. Second, to the extent that the taxpayer has held the interest in the O-Fund for five and seven years prior to December 31, 2026, the amount of the Deferred Gain to be included in income on December 31, 2026, may be reduced by up to 15 percent of the Deferred Gain. The third major benefit of the program occurs when the investor holds an interest in the O-Fund for at least 10 years. In such a case, investors may make an election to increase the tax basis of their investment in the O-Fund to the investment’s fair market value on the date of a disposition of such an interest, thereby eliminating any taxable gain. This is where much of the excitement in the program has been generated because it allows investors to obtain tax-free appreciation on their O-Fund investment. Still, O-Funds and investors need to be cognizant that the Deferred Gain will be taxable on December 31, 2026 — which is prior to the 10-year holding benefit. The Opportunity Zone Program is an exciting new tax incentive program that offers substantial opportunities for its participants. We need guidance from Treasury to answer many of the deployment questions. Once this guidance is issued, the Opportunity Zone industry will move quickly, and it is important not to be left behind.

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Risky Business?

Experts share how to navigate the risks for enterprise success by RaeAnne Marsh Risk. It’s inherent in business; an element faced in every decision. Owners of small and mediumsized businesses may feel this even more keenly, as challenges seem to come from every direction and there are few — if any — among us who are expert in everything. Minimizing that risk requires researching and gathering the best intelligence. Technology is increasingly providing tools to help gather and even evaluate the information, but the human mind is still best at applying it. Professionals in our business community share their expertise with In Business Magazine on some of business owners’ key “hot spots.”

Company Financials “Today’s business world is manifested by a highly regulatory environment,” says Charles A. McLane, senior managing director of the Phoenix office of CBIZ MHM, LLC. “Thus, business owners are faced with a lot of complexity resulting in risks related to not knowing what they don’t know when it comes to areas like compliance and taxes.” He notes that failures in these areas can have a significant impact on cash flow and the ability to survive. In the area of compliance, payroll withholdings are an important element to stay on top of. Not only are compliance requirements around payroll withholdings very strict, but making those deposits is a requirement that can ultimately wind up as a personal responsibility of the owner. “The regulatory authorities view these deposits as money belonging to others. This type of liability may not be eliminated even in filing for bankruptcy if the business fails. Having a strong payroll system or outside provider and following the instructions of the provider will keep the owner away from a lot of trouble.” Tax filings are another area that can seem to be less critical early on, McLane says. “The owner believes that

the business is not making much money and thus the tax filings are not very important; they believe they don’t owe anything. However,” he explains, “early tax filings are important to establish appropriate elections, identify nondeductible items and ensure that the corporate structure is appropriate for possible future tax consequences. Failure to file timely can result in penalties and interest that will continue to compound until the filings are appropriately up to date.” When this occurs, there can be a significant impact on the company’s cash flow. In addition to past taxes, which could be 40 percent of profits, the company will need to pay penalties, interest and any taxes due on current operations. All of this together can wipe out the company’s cash flow and prohibit the payment of other necessary operating costs. “It is important for business owners to surround themselves with seasoned professionals who can educate them on areas like these or provide services to keep the business and owner compliant with the regulatory environment,” McLane says, emphasizing that, as discussed above, regulatory agencies will not accept ignorance as an excuse for failure to stay compliant.

Cybersecurity and Technology “Hackers do not discriminate based on the size of a business,” says Morey Haber vice president of technology at Beyond Trust. In fact, he adds, some of the smallest businesses contain the most sought after Personally Identifiable Information (PII) — treasure troves about their customers’ homes, cars, boats and financial investments. Even businesses like car washes and restaurants aren’t immune from hacking — after all, they are using customer data for monthly mailers and store promotions to market their services, not to mention having transaction data from point-of-sale systems. Michael Cocanower, president and CEO of Phoenix-based itSynergy, puts the warning in even stronger terms: “Data breaches are becoming more common in the workplace, no matter the size of the company.” He cites recent studies showing that 71 percent of cyberattacks occur at businesses with fewer than 100 employees. “The consequences can be disastrous,” he notes. “The U.S. National Cybersecurity Alliance reports that 60 percent of small companies are unable to sustain their businesses over six months after a cyberattack.” Says Haber, “Home-based business all the way up to enterprises need to take note of some very basic security practices to ensure they are not a victim of the next cyber security breach.” Cocanower makes an additional point: “Building a strong cyber defense wall is particularly important in light of the state’s new data breach notification law, which is not something businesses can ignore. In addition to being responsible for restitution to victims, businesses could face civil penalties from the Attorney General’s office that can run as high as $500,000. That would be devastating to a


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small business.” Addressing himself to smaller businesses, Haber explains that cyberattack tactics range from phishing and drive-by browser attacks to Web application flaws. “This means that hackers are not specifically targeting your business like a named bank or insurance company, but rather using opportunistic, automated techniques to trick individuals into allowing malware into your environment and informing them that a new compromised asset has been added to their manifest. After one of your assets is compromised, anything from surveillance, data extraction, or ransomware is possible based on the attacker’s motives.” Considering most small to medium-sized businesses do not have full-time information technology staff (let alone part-time security staff), security gaps appear in assets that are not properly identified, documented and remediated in a timely fashion, and this, he points out, leaves them a high risk compared to enterprises simply based on a lack of resources and processes to mitigate evolving threats. As cybersecurity experts, Cocanower and Haber regularly urge businesses to train employees — often a business’s weakest security link — to recognize and avoid phishing emails and social engineering attacks, with their potentially dangerous links and attachments, and to actively manage passwords. There is also growing awareness of risks involved in being tapped into the Internet of Things (IoT). “Hackers could breach the surveillance system in a building to watch and listen to everything that happens,” Cocanower


warns. “If the doors in your office building are power-controlled, they could disable the system in the middle of the night or turn off the power so the doors automatically open to comply with fire codes. The list of breach scenarios is endless.” For a more detailed list of cybersecurity best practices, please visit www.inbusinessphx.com for the online version of this article. Cocanower suggests the most important thing a business owner can do is to start with a comprehensive risk analysis. This involves identifying the universe of possible risks, then assigning a probability and impact score to each item. The product of those two numbers represents the business’s exposure to that possible risk. “With that data, you can start to focus where you have the greatest risk and work your way down the list until you have eliminated everything higher than the level of risk you are willing to accept,” he says. Equally critical to minimize risk are backup and disaster recovery, Cocanower notes. He points out that, last year, 45 percent of unplanned downtime was the result of hardware failure — a percentage that can be reduced by having backup infrastructure as well as a plan to replace old hardware before any issues arise — and data from StorageCraft put companies’ cost of this unplanned downtime at between $926 and $17,244 per minute. “Many businesses mistakenly think that backing up data or storing their data with a cloud service protects them in a disaster scenario, such as a power outage, a ransomware attack or another unexpected event that destroys or compromises data,” Cocanower says. He offers business owners three key considerations that can be the difference between surviving a major event and losing their business. Server Access - Having a backup of data on a business’s servers is important, but if those servers are gone and no other server is available to put that data on, it may not be very useful.

Recovery Drills - A backup and recovery plan that is not regularly tested is almost equivalent to no backup at all. Businesses that are not working with their IT staff or company to regularly simulate data loss or equipment loss and prove they are able to function in the event of a disaster are exposing themselves to tremendous risk. Recovery Point Objective (RPO; how much data a business can afford to recreate if forced to operate from backup) and Recovery Time Objective (RTO: how long a business needs to be up and running from its backup) — The executive team should discuss what the business can actually tolerate for these two values. The business should then design a backup and disaster recovery plan that meets its requirements, and, during testing, ensure it is within the acceptable RPO and RTO windows. Says Haber, “Information technology professionals recognize that paper-based recommendations are great when a company has resources to implement them (large and enterprise), but when dealing with small to medium-sized businesses, they need some help and the solution needs to be simple, easy, and cost effective. This is where managed service providers, technology partners and consultants can assist and provide a supplemental labor force, with expertise, to scale the best practice recommendations for the business.”

Healthcare “To any business, but particularly to small businesses, your workforce is your best asset, so investing in the mental and physical well-being of your employees will deliver healthy returns to your business,” says Kim Shepard, Cigna Market President for Arizona. In considering options for healthcare coverage for employees and their families, Shepard suggests business owns look for a plan that encourages or guides them to the highest- performing physicians and facilities (quality outcomes and cost efficiency) for their specific healthcare needs. At the same time, she says, “Ensure that your insurance carrier or administrator has the technology, tools and customer service education and support to help your employees choose the best plan for their circumstances and then use that coverage to their full advantage.” Shepard also suggests businesses consider alternate funding solutions (versus a traditional fully-insured premium arrangement) that allow the employer to reap the benefits of a healthy and engaged workforce.


Discussing an HR aspect of healthcare, Camille French, founder and principal of AmeriSource HR Consulting Group, points out that, even though the Patient Protection and Affordable Care Act (usually referred to as the “Affordable Care Act,” “ACA” or “Obamacare”) has been cut, fines are still applicable for the years the law was in effect. “We have also seen a trend in PPACA penalties for smaller Applicable Large Employers (ALEs). What we have found is that, within the first year of the ACA, many ALEs transitioned onto full self-funded or even partially self-funded plans without realizing that there are different and more complex reporting requirements for selffunded plans.” And, she says, the government is just now beginning to send letters for incorrect reporting, which may require employers to fix errors or pay a fine.

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Human Resources “All employers face challenges in hiring, managing, and retaining qualified employees and complying with workplace laws. However, those challenges can be especially acute for smaller businesses, which are often focused on survival, growth, and delivering a quality product or service,” observes Jill Chasson, an attorney with Coppersmith Brockelman in Phoenix. Additionally, compliance matters may end up being pushed aside, resulting in potentially costly mistakes. Says AmeriSource HR’s Camille French, “One of the most frequent business risks we encounter is trouble with HR compliance.” With the passage of Proposition 206, the Fair Wages and Healthy Family Act went into effect on July 1, 2017, and increases Arizona’s minimum wage incrementally until 2020. Pointing to just one of many aspects of the Proposition, she has found many employers have not been aware it also required all employers to offer paid sick leave to their employees — even if there is only one employee — up to a maximum of 24 or 40 hours, depending on the company’s size, and observes, “This has proven to be difficult for service-driven industries because employees can call out sick, leaving their scheduled shifts uncovered.” The recruitment and onboarding of new employees is another area where French has seen many risky business practices — starting at the very beginning, with the employment application. “Many employers have allowed applicants to submit a résumé in lieu of an application, but this can cause issues in the long run,” she says, explaining that a résumé is typically like a sales pitch in that it embellishes all the great accomplishments and abilities of an applicant, whereas the application process requires applicants to provide factual information and attest that the information is true and accurate. “Both serve a purpose, but they are not mutually exclusive,” she notes. “What we have seen some employers do is require applicants to acknowledge that their resume is accurate and factual, and this provides some peace of mind for the employer. However, applications are still the best way to ensure you are receiving accurate information.” French itemizes some of the application “no-nos” that employers need to be aware of in utilizing applications: asking the applicant’s Social Security Number, current earnings and whether he or she has been convicted of a felony. Additionally, employers in Arizona are required to have Smoke Free Arizona listed on their application as mandated by proposition 201. “We also commonly find that many small businesses in Arizona do not realize they have been mandated to run all new hires through the E-Verify system since 2008. This is true regardless of the size of the employer,” French says, relating, “Employers are not able to retroactively run their new hires if they have not been compliant with this, but can make a good faith effort to be in compliance by following the mandate moving forward.” Chasson cautions that one of the most significant mistakes small


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employers make is misclassifying employees as independent contractors. While this may seem to allow the company to avoid certain employee obligations, such as paying payroll taxes and workers’ compensation insurance premiums, it can prove much costlier later if the government determines employees have been misclassified. Says Chasson, “The company can be liable for back taxes, benefits costs and back wages, plus fines and penalties. As a general rule, the greater the degree of behavioral and financial control the company retains over how work is done, the more likely the worker should be classified as an employee.” Another classification issue arises over exempt versus non-exempt employees. Under the federal Fair Labor Standards Act, non-exempt employees must be paid overtime pay if they work more than 40 hours in a workweek. Employees who meet minimum-salary and dutiesbased requirements for exemption — which include those in executive, professional, administrative, outside sales and computer positions — do not have to be paid overtime. “Many businesses believe that paying an employee a regular salary is enough to avoid overtime obligations,” Chasson says. “But overlooking the duties tests can result in costly misclassification mistakes, including liability for double the amount of overtime not paid.” Chasson also characterizes recordkeeping obligations as an area of risk. Federal and state laws require employers to maintain employee records, including demographic information, tax forms, verification of employment authorization, hours worked, pay data and personnel records the company creates. “Small employers may find it cost-effective to use a professional employer organization or payroll service to manage some of these obligations,” she says. “For other types of records, such as those related to hiring, termination and employee performance, employers should set up a personnel file for each employee. Any medical or health records, such as doctor’s notes and leave of absence forms, should be kept in separate confidential files with restricted access.” “One of the biggest areas that get employers in trouble is the lack of knowledge of what ‘Protected Concerted Activity’ is,” French says. Protected Concerted Activity falls under the National Labor Relations Act and is monitored by the National Labor Relations Board. The term defines the activities employees may participate in without concern of employer retaliation. “This allows employees to come together with each other in an effort to create a better working condition, fair wages, et cetera,” she says, offering as examples employees sharing their wages with each other and posting about their workplace or boss on social media. “Employees have the right to do these things, and employers cannot prohibit or reprimand employees for participating in these activities. Arizona is a part of Region 28 of the NLRB, which is one of the stricter regions in terms of enforcement.”


Leadership and Management “For business leaders, not having people they trust who are agendafree and willing to ask the important and hard questions represents one of the greatest risks to a business,” says executive coach and business consultant Tom Pierce, CEO of TKPierce, Ltd., observing that even in our hyperconnected world — where we measure our “friends” by the hundreds in not thousands of Facebook and LinkedIn connections — the business leader is often alone. Pierce cites a study conducted at Stanford Graduate School of Business that found nearly two-thirds of CEOs do not receive outside leadership advice, but also notes lack of advice is not necessarily the issue for most business leaders. “They seem to get plenty of advice from their board, their customers, their employees, even their family,” he says. “The issue is that each of these groups has a stake in the outcome.” Answering his own question, “Where does the business leader turn for the advice they so critically need?” Pierce points out that, for Benjamin Franklin, Andrew Carnegie and Henry Ford, it was a Mastermind of trusted peer advisors. “Each of these men credited much of their success to their group of trusted peers,” he says. In addition to meeting regularly, these groups shared many attributes: Members each led successful businesses, represented a variety of industries, kept strict confidentiality, were committed to each other’s success, and held each other accountable to their commitments. Says Pierce, “In our hyperconnected world with hundreds or thousands of friends and connections, it is easy to lose sight of the value, importance and power of a close group of peer advisors.” In fact, a 2017 study conducted by Dun & Bradstreet for Vistage International showed that leaders who had an agenda-free group of advisors grew 2.2 times faster than average SME companies. Pierce offers the following steps business owners can take to create their own group of peer advisors. Select the Right Peers — Based on their goals, business leaders should surround themselves with people who share their aspirations and commitment to success. Create a Safe Environment — Deep conversations about critical intellectual and emotional issues require an environment where participants never feel judged and where confidentiality is sacrosanct. Foster Valuable Interaction — While a safe environment provides essential emotional safety, intellectually, group members must also feel secure that there are specific strategies and processes for addressing challenges and identify opportunities. Be Accountable — It is not up to the group members to tell the business owner what to do, but rather the other way around. And the other members will then expect the business leader to follow through on that action.


Engage a Skilled Facilitator — Maximizing the potential of any group depends on leadership that inspires a high level of group cohesion, trust, vulnerability and a culture of collaboration. A skilled facilitator helps all the group members be active participants of the discussions. But leadership is not something reserved for just the executive, says Arnold Hickey, president of Accord Consulting Solutions International. Describing leadership simply as an attempt to influence, he points out, “Managers influence workers to produce quality output and to increase the volume of output. Salespeople influence prospects to buy from a given business. Customer service personnel influence customers as they help solve their problems. And so on.” Since in every business, everyone influences someone, Hickey notes, “The skills of leadership are needed in all corners of your organization.” Hickey enumerates some of the more important methods of leadership: modeling, or setting the example; sharing one’s vision and enlisting others; challenging the process and looking for ways to grow; empowering others to act; giving direction by setting goals and building trust; and encouraging the heart by giving positive reinforcement. And leadership need not be only top-down. “Organizational leadership,” Hickey says, “is a dual-focused management approach that works, simultaneously, toward what is best for individuals and what is best for a group as a whole. It is also an attitude and a work ethic that empowers an individual in any role to lead from the top, middle or bottom of an organization.” Accord Consulting Solutions International accordbusinessconsultant.com AmeriSource HR Consulting Group amerisourcehr.com BeyondTrust beyondtrust.com CBIZ MHM, LLC cbiz.com Cigna cigna.com Coppersmith Brockelman cblawyers.com itSynergy itsynergy.com TKPierce, Ltd. alignable.com/chandler-az/tk-pierce-ltd

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Businesses’ ‘Magnificent Seven’ Investments 1+1=7! Leveraging intangibles for business wealth by Baldwin H. Tom

Every day, businesses lose money by not understanding or leveraging their investments. When one considers the financials of organizations, it is clear that a significant portion of those investments are not captured in financial statements. Why? Because these are the people-side or soft-side intangible investments the accounting industry has yet to document. This may be a reason one views these same intangibles as not of significant value. But a business’s intangible investments can be just as valuable as those that appear on its quarterly report.


Baldwin H. Tom is a management consultant, professional speaker, and author of 1+1=7: How Smart Leaders Make 7 Investments to Maximize Value. A medical school scientist, professor, leadership program developer and founder of an award-winning science and technology firm, he leverages his experiences in those fields to provide insight and strategies to fit client needs. Tom is a Certified Management Consultant and served as the national board chair of the Institute of Management Consultants USA. geoddgroup.com

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There are seven capital investments available to every organization. Two are strictly on the task or tangible work side and five are focused on people and what they produce. This means that five of the seven, or 71 percent, of all capital investments are on the people, or the soft (intangible) side of the equation. Not surprisingly, there is hidden wealth and power buried in these people-side investments. When people work together, such as in teams, there is powerful leveraging such that 1+1 is no longer 2, but is more like 1+1=7. As a simple means to frame the seven investments, all work and efforts can be separated into two components: task side and people side. The task side encompasses tangibles such as hard issues and assets, work to be done, things, structures and fixtures. The people side is comprised of the intangibles like soft issues and assets, those who do the work, interactions, teamwork, culture and norms.


1. Financial Investments — Financial capital is the monetary currency used to run the business by purchasing materials/resources and investing in people to facilitate its success. There is little mystery here. Financial capital is one of two currencies of exchange between people who do the work and the work they do. The other currency of exchange on the intangible side is spiritual capital. 2. Physical Investments — Physical capital is represented in fixed materials needed for products and services. This includes tangible machinery, buildings, equipment and computers together with land and labor. The benefit of timely investments here is to ensure the enterprise remains competitive. Importantly, a commensurate investment on the people side — either in human, relationship and/or customer capital — is necessary in order to maximize ROI.


3. Human Investments — Investing in human capital is an easy one. Just as with physical capital investments, without upgrades technology becomes slow and/or obsolete. It is the same with people; there must be continuous upgrades. Training, coaching, education, mentoring and internships are obvious ways to increase people’s value. Importantly, the value of this investment spreads throughout an enterprise — in organizational capital (patents, processes, procedures), physical capital (innovative products and services), spiritual capital (morale, work satisfaction) and relationship capital (teamwork, customer relations). 4. Relationship Investments — One of the most valuable assets in an organization is relationships. Value is derived from this investment daily from leveraging people’s interactions. It’s about power and influence. The network of relationships (people inside and outside the organization) that interact with a business represents a significant resource. Building relationship capital delivers a host of ROI benefits resulting from a higher level of trust in products, sales, customer retention and even resolving disagreements. The multiplier for ROI may appear small, but secondary impact and synergies of relationships can be huge. 5. Spiritual Investments — Spiritual capital in a business is derived from the values created by an organization’s leadership. With a great deal of spiritual capital, there is ethical decision-making built into a value-based culture where the goal is less shareholder gain and more gain for customers and stakeholders. The culture engendered energizes and enriches the human spirit, fostering social connectedness and personal satisfaction. It spurs people to go the extra mile. It is about ethical leadership and

It is estimated that 40 zettabytes (43 trillion gigabytes) of data will be created by 2020 (an increase of 300 times the amount of data in circulation in 2005), at a rate of 2.5 quintillion bytes per day.


how people are treated. It is about consistency in leadership, e.g., no surprises. Such investments include a conscious effort to build a family culture that honors and supports each other. 6. Customer Investments — Customer capital is the relationship value a business builds with its customers. This goes beyond customer loyalty and includes customer feedback to the business, and partnering with the customer to produce new products and services. Value also manifests in the form of referrals and great press about the business from customers. Every executive recognizes the importance of paying attention to the customer. But just being nice (sending holiday cards or gifts) is only a beginning when it comes to enhancing ROI. Making efforts to partner with the customer is the ideal investment. 7. Organizational Investments — Organizational capital represents the value of an enterprise derived from mostly intangible assets such as processes, procedures, systems, patents, trade secrets, reputation, brand and intellectual property. Organizational investment is a most important investment leaders can make because this is where the memory of the enterprise resides. Building, investing in and maintaining one’s brand and reputation and protecting intellectual property (trade secrets, patents, processes and procedures) are critical to sustaining the enterprise. This is where one protects the knowledge, skills and expertise from being lost when talented people depart from the organization.

What Color Is Your Parachute? 2019 In today’s challenging job market, the time-tested advice of What Color Is Your Parachute? is needed more than ever. Recent grads facing a tough economic landscape, workers laid off mid-career and people searching for an inspiring work-life change all look to career guru Richard N. Bolles for support, encouragement, and advice on which job-hunt strategies work — and which don’t. This revised edition combines classic elements like the famed Flower Exercise with updated tips on social media and search tactics. Bolles demystifies the entire job-search process, from writing resumes to interviewing to networking, expertly guiding job-hunters toward their dream job. What Color Is Your Parachute? 2019: A Practical Manual for Job-Hunters and Career-Changers Richard N. Bolles


Business leadership can discover and leverage hidden wealth in their organization through these steps: 1. Inventory the business’s investments: Identify the investment areas it is focused on. 2. Pair investments: Match any task-side investment with a peopleside one. Thus, if a business invests in new technology, there will need to also be an investment in training for personnel. 3. Set goals for each investment: Determine goals and completion dates for each investment. 4. Determine where the business is now: Track the success of reaching investment goals. 5. Monitor progress toward goals: Evaluate the investments and how the business is doing in achieving goals. Make corrections or change course as needed. 6. Celebrate success: Reinforce success to encourage new efforts. 7. Repeat steps 1-6 There is no doubt that judicious investing on the people-side components paired with task-side investments yields significant ROI. Leveraging the intangibles accentuates power, creativity, innovation and, thereby, new products and services — and, thus, value generation and wealth in organizations.

Available: 8/14/2018


The Basics of Bitcoins and Blockchains There’s a lot of information on cryptocurrency and blockchains out there. But, for the uninitiated, most of this information can be indecipherable. The Basics of


As a means to discern which of the Magnificent 7 investments were most critical in a merger or acquisition, the corporate, healthcare and accounting industries were studied. In nearly every merger, success or failure was predicated on alignment or misalignment of culture between the merging entities. Culture in the Magnificent 7 schema is established within the collective investments of Human, Relationship and Spiritual capitals. These people-side intangible investments reinforce the notion that soft-side investments have significant impact in generating success or failure in a business.

352 pages

Ten Speed Press

Bitcoins and Blockchains aims to provide an accessible guide to this new currency and the revolutionary technology that powers it. Readers will gain an understanding of a broad spectrum of Bitcoin topics. The Basics of Bitcoins and Blockchains covers topics such as the history of Bitcoin, the Bitcoin blockchain, and Bitcoin buying, selling and mining. It also answers how payments are made and how transactions are kept secure. Other cryptocurrencies and cryptocurrency pricing are examined, answering how one puts a value on cryptocurrencies and digital tokens. The Basics of Bitcoins and Blockchains: An Introduction into Cryptocurrencies and the Technology that Powers Them Antony Lewis

200 pages


Available: 8/15/2018


Clockwork Most entrepreneurs started their business so they could be their own boss, only to find that, in reality, they are bogged down in the daily grind. Now, Mike Michalowicz, the author of Profit First and other small-business bestsellers, offers a straightforward step-by-step path out of this dilemma. In Clockwork, he draws on more than six years of research and real-life examples to explain his simple approach to making one’s business ultra-efficient. Whether the business has a staff of one, one hundred or somewhere in between, and whether the owner is a new entrepreneur or has been overworked and overstressed for years, Clockwork is the path to finally making one’s business work for oneself. Clockwork: Design Your Business to Run Itself Mike Michalowicz Portfolio

Over the next five years, automation and artificial intelligence will have the biggest impact on business operations and processes, according to 62 percent of business leaders surveyed for the latest Future Enterprise Survey from law firm Seyfarth Shaw LLP. futureenterprise.com/home#h-survey

272 pages Available: 8/21/2018




Melissa Gray: Building up Avnet’s CSR Corporate social responsibility is threaded throughout the company by RaeAnne Marsh

AVNET SOCIAL RESPONSIBILITY Avnet has a long history of giving back over its 97 years in business, chiefly through volunteerism and philanthropy. Through Avnet Cares, employees donate thousands of hours of volunteer time in their communities, and Avnet has made nearly a $1 million USD in charitable gifts each year. Avnet also created the Avnet Innovation Lab, whose third cohort, this year, involves 14 companies who are building solutions to a variety of challenges: to minimize waste, improve energy production, provide clean water without the need for electricity in remote areas or companies who can manufacture zero VOC epoxy compounds. “These are very cuttingedge companies and technologies, and we provide them with nocost grants to bootstrap aspects of their business, so they can get to market faster and help build their product and supply chain,” says Melissa Gray, VP of corporate affairs. “The Avnet Innovation Lab structure is flexible enough to allow us lots of room to innovate with ASU and our member companies.”

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“Our new Corporate Social Responsibility strategy is reshaped by our actions in the market,” says Melissa Gray, vice president of corporate affairs for Avnet, who has been heavily involved in formulating and implementing many of Avnet’s corporate responsibility initiatives. “Avnet is reinventing itself from a traditional distributor selling electronic components to a company that specializes in helping engineers move from idea and product concept to production — a solutions specialist. Now that our services are changing, so is our focus. We believe that we are uniquely positioned to use our technology skills to solve some of the world’s biggest challenges.” All that being said for the future, Avnet celebrated its silver anniversary with Hands-On Greater Phoenix’s Serve-A-Thon a few months ago — 25 consecutive years of Avnet being the lead sponsor in strengthening our communities through service. More than 50 volunteers from various organizations around the Valley came together to make a well-deserving school a more engaging place to learn and play. “We will continue to invest in building resilient communities as we add other parts of our strategy further down the line. In short, we take a long-term view to building great things,” Gray says. “Part of my job is to ensure that this 97-year-old company stays just as vibrant in our next 100 years.” Gray, who joined Avnet a year ago, has been heavily involved in the planning and execution of these initiatives. Of the Avnet Innovation Lab specifically, which had begun the year prior to her joining Avnet, she credits the team as very welcoming as they refined the process around lab membership, benefits and “graduation” from the program. It’s an attitude she promulgates overall. “First and foremost, we must use our special talents in unique ways that make real impact to achieve the Sustainable Development Goals (SDGs). It’s our imperative. Our culture is naturally wired to ‘reach further’ to create real and lasting impact, so we’re focused on building alignment to the SDG’s within the company this year. “Once you speak to people’s hearts, the business results naturally follow: increased engagement and retention, ability to attract the best talent, our customers’ Net Promoter score (a measure of how likely a customer is to recommend us to another). As I mentioned, this year is a really about driving internal alignment. As Avnet is transforming internally, we’re engaging our employees with new context to how we add value and create impact in larger society.” Gray believed the SDG framework is great for her team internally, and she felt she needed to invest in partners who would develop materials to teach others about the SDGs. “That is where Impact 2030 comes in. They are an extension of my team and create a network for me.” Avnet joined Impact 2030 last year as it shifted from traditional philanthropy and accelerated toward “impact investing.” The United National Sustainable Development Goals provides a framework to look at geography and realign around

developing community impact plans. There are 17 SDGs, from “no poverty” and “zero hunger” to building “the right partnerships” to achieve the goals. Says Gray, “Avnet is committed to teaching others about the SDGs, but also simplifying for our stakeholders how the goals can be achieved. The investments we make must drive impact along these 17 goals.” Not Impossible Labs was another big project Gray was a part of in mid-2017 — pitching the first “Profit with Purpose” component of the corporate social responsibility strategy to Avnet’s C-suite. “It was a team effort to identify, vet and frame the relationship with the right partner. Given the rebranding and new services Avnet offers as part of the transformation set in motion toward the end of 2016, it was important to select a partner that demonstrated our new ecosystem approach. Avnet needed a way to express its purpose for existence with social impact as a core component. We publicly announced the relationship at the Not Impossible Awards in January at CES 2018. That gave us time to create meaningful alignment between the Not Impossible projects and our business leaders.” Along with this, Avnet sponsors the Not Impossible Awards to celebrate those entrepreneurs who are on the cutting edge of technology for the sake of humanity. Winners receive advisory services from Avnet’s technology leaders in how to bring their product to market better, faster and more affordably. Gray notes that Avnet, with more than 15,000 employees in 125 countries, impacts sometimes close to home and sometimes far away. “The most significant extended impact is economic development for the communities we’re located within. Given those longer-term investments we make in communities, we create a lasting impact on cities and towns through our employees’ participation in the local community and involvement in local civic organizations. We’re hoping that some of the innovative technology we’re working on with customers leaves a lasting legacy of what we stand for — that’s the ultimate expression of what we’re about.” Avnet avnet.com

The United Nations’ 17 Sustainable Development Goals of the 2030 Agenda for Sustainable Development officially came into force on January 1, 2016. Goals range from “no poverty” and “zero hunger” to building “the right partnerships” to achieve the goals. un.org/sustainabledevelopment/sustainable-development-goals

JULY 2018

Arizona Technology Council and MST Solutions

Women in the Workforce Forum: Building an Employee Resource Group That Works Tues., July 24 | 11:30a – 1:00p Numerous studies show that diverse teams perform better and help their companies outperform their less diverse counterparts. Yet, most companies still have a problem attracting and retaining diverse talent. Creating an environment that is inclusive and supportive of diversity is no longer a nice-to-have aspect of operating a business, and employee resource groups (ERGs) or affinity groups can be an important component to any diversity and inclusion strategy. This forum offers the tools needed to create or improve a company’s ERG. Nicole Acevedo will share how MST Solutions built a Women in Technology group that supports women in its offices and contributes to its bottom line. Nicole Acevedo is a Salesforce consultant and lead for Women in Technology group at MST Solutions, a leading provider in customer relationship management (CRM) and marketing automation consulting that specializes in higher education, healthcare, financial services and public-sector solutions. Prior to MST, she worked in higher education in operational development and business technology integration. She currently serves as a commissioner for City of Phoenix Women’s Commission.

Global Chamber – Phoenix and Tiffany & Bosco

Welcome Global Companies to the Valley

Rick Weekly McCartney Podcast ® hosted by

Wed., July 25 | 5:30p – 7:30p Following the success of last year’s event, this second annual event brings together regional business and community leaders, including many in the Consular Corps of Arizona, to enjoy food, drink and the opportunity to interact with one another. Among the many special guests will be executives from companies from several states and countries, which will include Austria, Belgium, Brazil, Bulgaria, California, Cameroon, Canada, China, Democratic Republic of the Congo, Finland, Germany, Ghana, India, Japan, Malaysia, Mexico, Netherlands, Peru, Philippines, Poland, Romania, Russia, Serbia, Spain, Turkey and the UK. Speaking will be Alex Poulos with May Lu and the team at event host Tiffany & Bosco; Alfredo Molina, chairman of Consular Corps; Rick Buss, an executive at City of Peoria; Rod Beach, principal at Cresa Partners, representing the CRE community; Vince Thelander, Bank of America, representing the business community; and a yet-tobe-announced representative from the international education community. Members: free; non-members: $50 Tiffany & Bosco 2525 E. Camelback Rd., Phoenix

OUR PODCAST Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area. Listen now at inbusinessphx.com.


Upcoming and notable Sandler Training Workshop – Sell More Easily Aug

Thurs., Aug. 9


Find out how traditional sales methods don’t work, and how to become a trusted advisor instead of an annoying sales pest. aztechcouncil.org


Members: free; non-members: $15 MST Solutions 2195 W. Chandler Blvd., Chandler aztechcouncil.org

AUGUST 2018 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 NO AUGUST 2018 NOTABLE DATES 19 20 21 22 23 24 25 26 27 28 29 30


JULY 2018 Mon. – Tues., July 9 – 10

Sessions throughout the day

Community Boost – Phoenix Facebook Facebook is building more technology and new programs based on feedback from small businesses to help them grow, trade and hire. Presentations will help train small businesses and nonprofits with information that will help them reach their audiences, both organically and through advertising. Mon., July 9


8:00a – 9:00a

Events on Jackson

Java with Giles and Councilmember Thompson

245 E. Jackson St., Phoenix


Mesa Chamber of Commerce Tues., July 10

Mesa Mayor John Giles and District 6 Councilman Kevin Thompson host a community forum to update residents on events and initiatives impacting both District 6 and Mesa as a city. The community is invited to RSVP and attend, contributing to the conversation and ask questions of the leaders. RSVP is required.

7:30a – 9:00a

Thurs., July 12

4:30p – 6:30p


After 5 Mixer

Surprise Regional Chamber of Commerce

Greater Phoenix Chamber of Commerce

This Professional Coffee Club is casual, no RSVP needed; attendees share experiences and bond over a cup of coffee or tea. No agenda other than supporting each other and meeting new colleagues.

Attendees can enjoy gorgeous vista views, hand-crafted cocktails, and complimentary appetizers as they mix and mingle with other professionals from various industries throughout the Valley.



Members: free; non-members: $25

Mountain Vista Medical Center

Mariposa Point of Surprise

Arizona Grand Resort & Spa

1301 S. Crismon Rd., Mesa

16650 N. Stadium Way, Surprise

8000 S. Arizona Grand Pkwy., Phoenix




9 Tues., July 10

11:00a – 1:00p


12 Tues., July 10

11:00a – 1:00p

Signature Education Luncheon

Professional Women’s Alliance

North Phoenix Chamber of Commerce

Greater Phoenix Chamber of Commerce

Featured Guest Speaker: Brandy Lawson “Choosing to Enjoy the Ride: 3 Ways to Embrace the Entrepreneurial Roller Coaster,” presented by Brandy Lawson. Lawson is founder of FieryFX, a boutique digital agency, and a chief online officer for-hire.

Monthly event featuring a dynamic female leader in the community to share insights into leadership, career growth, community involvement and women’s issues. July’s speaker is Dr. Maria Harper-Marinick, chancellor of Maricopa Community Colleges.

Members: $20 online; non-members: $25 online; at the door: $30 cash

Members: $35; non-members: $55; members may choose to attend without lunch for free

Deer Valley Airport Restaurant

Phoenix Country Club

702 W. Deer Valley Rd., Phoenix

2901 N. 7th St., Phoenix



Tues., July 10


Tues., July 17

9:00a – 11:30a

7:30a – 8:45a

Safety Workshop

Networking Breakfast


Peoria Chamber of Commerce

Is OSHA coming to pay you a visit? Learn from the experts what happens at the opening conference, what they are looking for during their walkthru of your facility and what to expect from the closing conference. Be prepared and have your company ready for inspection.

Attendees have 45–90 seconds to give the group a commercial about their business.


Peoria Chamber of Commerce

Arizona Commerce Authority

Members: $10; non-members: $20

118 N. 7th Ave., Phoenix

8385 W. Mariners Way, Peoria


JULY 2018




For more events, visit “Business Events” at www.inbusinessphx.com

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

Tues., July 17

Tues., July 24

11:30a – 1:30p

11:30a – 1:00p

2018 Entrepreneur RISE Conference Panel

Women’s Business Connection

eWomenNetwork Phoenix/Scottsdale

Mesa Chamber of Commerce

A panel of chapter members who attended the eWomenNetwork Entrepreneur Conference RISE 2018 will address how to apply Sandra Yancey’s R.I.S.E. formula and key messages she shared from the main stage, takeaways from the breakout sessions and pre-conference workshops, and how to be part of the million women movement.

The Women’s Business Connection provides information and a networking forum for professional women looking to enhance their business skills.

Members: $45; non-member: $75 The Yard TEMPE – Broadway Room 149 S. Farmer Ave., Tempe ewomennetwork.com

Members: $15; non-members: $25 Thurs., July 19

Red Lobster

8:30a – 10:00a or 6:30p – 8:00p

1403 S. Alma School Rd., Mesa


Mindshare – Making Your Yelp Business Page Pop without Having to Spend a Dime! Arizona Small Business Association



Wed., July 18

Sophie Lapkin from Yelp Phoenix will be presenting on the free tools available to business users on Yelp (no sales pitch, guaranteed), including tips and tricks on how to best utilize and optimize the free tools available for businesses to make their page stand out from their competition.

Fri., July 27

Members: free; non-members: $35

Network over lunch.

ASBA Business Education Center

Members: $15; non-members: $20; at the door: add $5

4600 E. Washington St., Phoenix

Pomo Cucina & Pizzeria



19 11:30a – 1:00p

Scottsdale Area Chamber of Commerce

24 Thurs., July 19

11:30a – 1:00p

Meet Your Neighbors for Lunch


8977 N. Scottsdale Rd., Scottsdale


8:00a – 10:0a

Chamber Connections – Midday

Buenos Dias Networking Breakfast

Gilbert Chamber of Commerce

Hispanic Chamber of Commerce

This informal gathering is a fun way to share conversation with other professionals while learning more about businesses and services within our community.

This month’s presentation will help attendees gain insight of everything there is to know about hiring. Includes complimentary continental breakfast.


Members: free; non-members: $10

Native Grill and Wings

Ottawa University

4341 E. Baseline Rd., Gilbert

9414 N. 25th Ave., Phoenix


azhcc.com Thurs., July 19

Tues., July 31 7:30a – 9:00a

Noon – 1:00p

Ask an Expert

Small Business Master Series with PIXA

Chandler Chamber of Commerce

Greater Phoenix Chamber of Commerce

This month’s expert is Dave Seeman from Bring it Marketing, who will speak on creative low-cost and no-cost marketing.

For those feeling adrift in a sea of ever-growing marketing tactics, this interactive session is dedicated to defining and getting inside the heads of one’s target audience. Attendees will come away with a start on their own buyer personas and a plan for how to use them to craft effective marketing conversations and a comprehensive marketing strategy. Members: free; non-members: $75

Members: $5; non-members: $10 Chandler Chamber Office 25 S. Arizona Pl., Chandler chandlerchamber.com

National Bank of Arizona 6001 N. 24th St., Phoenix phoenixchamber.com




JULY 2018


Special Section: 2018 Top 50 Small Business


Risky Busin


Experts share how the risks to navigate for enterpris e success

JULY 2018

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Business Intangible s





of Women Business


Owners – Phoenix


Get a year of In Business Magazine Subscribe now at inbusinessphx.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. Full calendar online. events@inbusinessmag.com






JULY 2018


Special Section: 2018 Top 50 Small Business



sky Busin ess Experts share how the risks to navigate for enterpris e success

JULY 2018

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Intangible s






of Women Business


Owners – Phoenix


Get a year of In Business Magazine. Subscribe now at inbusinessphx.com

Tax attorney Steve Moskowitz founded what would become Moskowitz LLP more than 30 years ago, offering clients a full variety of services that include domestic, international and criminal tax law representation; tax planning; and tax preparation of current and delinquent fillings. Having practiced as a CPA before becoming a tax attorney and having worked at a “Big 8” (now “Big 4”) firm, as well as teaching tax, law and accounting at the nation’s most prestigious universities, Moskowitz has served as an expert legal analyst for top media outlets, where he appears daily on the radio and weekly on TV. His message is simple: Don’t go it alone against the IRS. moskowitzllp.com

JULY 2018



Five Cryptocurrency Tax Mistakes the IRS Takes Seriously . . . And how to avoid them by Steve Moskowitz

Since the release of Bitcoin in 2009, more than 4,000 alternative currencies have emerged in the decentralized banking market. For nearly 10 years, the IRS has sought to gain a foothold in what has since become a booming market with a rising number of participating asset holders. The recent Coinbase, Inc. case ruling makes it clear that the United States government is intent on pursuing digital currency holders who aren’t fully transparent in their online activity. In her decision handed down last November, Magistrate Judge Jacqueline Scott Corley in the U.S. District Court, California Northern District, said virtual currency exchange Coinbase must give the Internal Revenue Service information on accounts with transactions of greater than $20,000 — a decision that constituted a partial win for the IRS in its bid to seek records from the exchange. In order to avoid heavy fines of up to $250,000 and possible prison time, it is now more important than ever to properly document and report all digital currency transactions. Here are five essential best practices for reporting digital assets that can save those who engage in bitcoin transactions from big tax penalties. 1. Know the cost basis. The IRS considers cryptocurrency and digital currency property for tax purposes and may prosecute anyone neglecting to report it on their taxes. Some virtual exchanges provide a form 1099-K to their clients; most, however, do not, making it the client’s responsibility to determine the value of his digital assets. This is very important as it will affect the client’s taxability when he sells. 2. Remember that mined currency is income. If a person is paid for an activity, he must pay both income tax on the amount mined plus self-employment taxes, where applicable. Mining of cryptocurrency is the process of adding

transaction records to the blockchain, or public ledger of past transactions, and the person doing that mining must include in his gross income the value of that cryptocurrency on the day it was received. 3. Track and report all cryptocurrency purchases and sales. If cryptocurrency is used like cash, every purchase made - including that of goods and services - is a taxable event, and the purchaser must track details, such as the date of transaction and the amount paid. If the cryptocurrency itself is bought or sold, the IRS considers the activity similar to the purchase and sale of stock, and will expect individuals to keep a record of all their transactions — along with proof of the buy and sell prices and the dates of each individual transaction. 4. Report transfers of digital currency. The IRS may soon take the position that the transfer of digital assets is a reportable transaction, and require a report of any capital gains or losses. 5. Report payments made to employees, or currency received as a gift. Just as with government-backed currency, businesses are required to report all employee or contractor payments, and to pay employment and withholding tax where applicable. Those who are gifted digital currency must report it on their taxes, when they sell it, using the same cost basis as the person or entity who gave it to them. As yet, this is a largely uncharted realm. But the tax climate around cryptocurrency and digital assets is rapidly changing. Tax authorities around the globe are currently developing methods to investigate and prosecute cryptocurrency tax crime and fraudulent activity involving digital assets. It is wise to keep in mind that the IRS may allege there is no time limit on the IRS auditing a person’s or business’s taxes for fraudulent cryptocurrency activity.

In the case United States v. Coinbase, Inc., the ruling requires Coinbase to hand over to the IRS specified documents for accounts with the equivalent of at least $20,000 in any one transaction type (buy, sell, send or receive) in any one year during the period of 2013–2015.

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Chandler/Ahwatukee: SW corner of 48th St. and Ray Rd. 4729 E. Ray Rd. • Phoenix • 480-535-8848 Scottsdale: SW corner of Frank Lloyd Wright and the 101 15705 N. Hayden Rd. • Scottsdale • 480-378-0093






Risky Busin


Experts share how the risks to navigate for enterpris e success

JULY 2018

Tax Issues with Cryptocurrency DIY Employee Training Videos Leverage Those Intangible s






of Women Business


Owners – Phoenix


Get a year of In Business Magazine Subscribe now at inbusinessphx.com

2018 MERCEDESBENZ AMG GT ROADSTER City: 16 mpg Hwy: 21 mpg Trans: 7-speed AMG SPEEDSHIFT® DCT dualclutch rear-mounted transaxle 0-60 mph: 3.9 sec. MSRP: $124,400

2018 Mercedes-Benz AMG GT Roadster This sporty AMG machine by Mercedes-Benz is designed to perform and to impress. The V8 is a higher output with less displacement at 469 horsepower; its biturbo has a massive torque of 465 pound-feet, which peaks at just 1,700 rpm and holds it all the way to 5,000 rpm. The sport suspension is derived from racing with the double wishbone for all four wheels. The very precise handling is due to maximized strength and rigidity with minimized unsprung weight. A low center of gravity, low drag and optimal downforce aerodynamics combine to present the ideal driving experience. The analog instrumentation features dark grey gauge faces with carbon-effect centers and contrasting graphics with red rings and indicator needles. Digital segment-type ancillary instruments are neatly embedded within the larger speedometer and rev counter, while a multifunction display offers a variety of illustrated menus on a high-resolution color screen between the gauges. A functional celebration of motorsports style and success, the Panamericana grille introduces a new face of AMG that’s

rooted in its racing heritage. Its 15 vertical chrome bars are drawn from the AMG GT3 racecar, yet the form also recalls the legendary 300SL that won the Panamericana road race in 1952. It’s even more fitting as AMG enters its second half-century with a rich history of performance innovation not only behind it but accelerating into tomorrow as well. —Mike Hunter Mercedes-Benz mbusa.com

Tread Lightly Walking is part of many a wellness program encouraged

inches thick, Treadly is a multi-faceted treadmill that can

in today’s workplace. Taking a stretch around the block

be used and stored almost anywhere — or may be kept

or around the building may be good plan, but this time

always at hand under an office-worker’s desk.

of year if the heat doesn’t get you, the monsoons will. An easy-to-store treadmill can be an option. Lightweight and easy-to-store are among the breakthrough


JULY 2018



whether they are on the back “slow down area,” the central “constant speed” area or the forward-most

attributes of Treadly —

“speed up area” — and adjusts the speed accordingly.

making it easier for

The optional hydraulic handrail will increase Treadly’s

consumers to get fit and healthy in

Treadly uses a patented infrared stepping technology to track the position of the user’s feet on the belt —

their offices and work spaces as well as home. At just 55 pounds and only three and a half

maximum speed from 3.7 mph to 5 mph. —RaeAnne Marsh Treadly treadly.co

From the creators of the 45, 63 and 65 model lines comes MercedesBenz AMG 43, nine authentic performance vehicles with an AMG pedigree and a thirst for speed. From coupes and sedans to SUVs and roadsters, the power and handling of the 43-lineup beckon to the world’s most passionate drivers. All that’s left to do is grip the wheel and press the accelerator.

Photos courtesy of Mercedes-Benz (top, left), Treadly (bottom)


JULY 2018


Special Section: 2018 Top 50 Small Business

Master Your Social Position!

Social Media that gets noticed, backed by the credibility of In Business Magazine‌ Marketing Automation | Social Media | Digital Products www.inbusinessmag.com 480.588.9505



Flower Child – Farmhouse Sensibilities Well-suiting its focus on healthy eating, Flower Child’s décor evokes a back-on-the-farm feeling. The newest location, recently opened in Desert Ridge Marketplace in North Phoenix, is especially open and airy in its farmer’s market styling – simple, homey designs; a lot of light; and the chain’s signature cheerful touch of a cut flower on every table. The open expo kitchen allows guests to see chefs preparing each meal to-order. With a menu devoted to veggies, grains, fruits and healthy proteins, the fast-casual restaurant offers a wide selection of organic, gluten-free, vegetarian and vegan options for lunch and dinner, made from scratch every day. And flavor inspirations are equally wide-ranging. Bowls include the Late Riser, a combination of cage-free eggs, heirloom beans, quinoa, roasted chile, salsa, avocado, corn Greek yogurt and queso blanco, and Mother Earth, made with ancient grains, sweet potato, portobello mushroom, avocado cucumber, broccoli pesto, charred ion, leafy greens and hemp seed in a red pepper miso vinaigrette. There’s a Vietnamese Crunch salad, with savoy cabbage, romaine lettuce, quinoa, tomato,

MEDITERRANEAN QUINOA Tabbouleh, cauliflower, cucumber, tomato, sweet pepper, pistachio, feta, harissa yogurt vinaigrette $8

bell pepper pineapple, avocado, cashews, Thai basil, cilantro and mint mixed with a spicy lemongrass vinaigrette. Wraps are a popular lunch choice; Flower Child makes them with whole wheat, flax and chia seeds (or gluten-free pita). Among the varied side plates are a Sichuan Green Bean, Indian Spiced Cauliflower and Simple Sautéed Broccoli. Protein add-ons available are all-natural chicken, grass-fed beef, sustainable salmon and organic, non-GMO tofu. The drink menu includes a short alcoholic selection of wines and Arizona beers. It is a large restaurant with plentiful seating inside and on the patio. And its location in the southwest corner of the shopping center affords convenient parking away from the often-crowded big-box stores and “The District” central retail area they surround, making it as easy to pick up food “to go” as it is to stay and enjoy the meal there. 21001 N. Tatum Blvd., Phoenix • (480) 397-5058 5013 N. 44th St., Phoenix • (602) 429-6222 100 E. Camelback Rd., Phoenix • (480) 212-0180 10460 N. 90th St., Scottsdale • (480) 240-4400

VEGAN POKE Marinated beet, avocado, pickled mushroom, cucumber, radish, wasabi pea, smoked dulse, brown rice, spicy ponzu $9

Tacos Not Just for Tuesday Attesting to the popularity of tacos, “Taco Tuesday” is now showing up on the menu of restaurants not usually offering South of the Border selections. For great tacos any time, In Business Magazine suggests these as among the best in the Valley.

America’s Taco Shop

Restaurant Atoyac

Barrio Queen

The concept began with the hand-written

This no-frills roadside taqueria serves

Along with its always-friendly atmosphere

recipes from her mother that founder America

simple Oaxacan street food that continues

and lively “Dia de Muertos” (Day of the Dead)

Corrales brought with her from Mexico.

to earn it rave reviews. Folded, rolled or

décor, Barrio Queen offers one of the most

2041 N. 7th St., Phoenix • (602) 682-5627

crispy styles, with choices from land and

extensive selections of tacos in the Valley.

9261 E. Vía de Ventura, Scottsdale

sea (chicken, pulled pork, steak, chorizo,

7114 E. Stetson Dr., Scottsdale

(480) 278-7085

fish and shrimp).

(480) 656-4197

7001 E. 1st Ave., Scottsdale

1830 W Glendale Ave C, Phoenix

388 N. Gilbert Rd., Gilbert • (480) 634-0502

(480) 278-7070 • americastacoshop.com

(602) 246-1111 • restaurantatoyac.com

21001 N. Tatum Rd., Phoenix (480) 466-7445 • barrioqueen.com

JULY 2018



Flower Child, the healthy, happy, fast-casual restaurant, is one of Sam Fox’s concepts that earned the renowned restaurateur a coveted “Hot Concept Award” from Nation’s Restaurant News. The prestigious award honors forwardthinking brands at the leading edge of food service, and is not usually awarded to one restaurateur multiple times.

Photos courtesy of Fox Restaurant Concepts (top), America’s Taco Shop, Restaurant Atoyac, Barrio Queen(bottom, l to r)



Summer 2018 • nawbo.org/

My new adventure: 2018-19 NAWBO Phoenix President by Ronit Urman

It is with great honor that I accepted the role of 2018-2019 NAWBO Phoenix President. I’m excited to lead our chapter into a great year as we align with the NAWBO mission: “Strengthen the wealthcreating capacity of our members and promote economic development; create innovative and effective changes in the business culture; build strategic alliances, coalitions, and affiliations; and transform public policy and influence opinion makers.” I’m looking forward to leading this chapter to be the “talk of the town.” If you are a woman business owner, this is the one organization to which you will be proud to belong. As we look at our next year, we are striving to increase our membership and corporate partners’ support. In order to achieve these goals, we are listening and researching what our members would like to hear and learn. We will bring the programs that will support every group of women business owners. Programs will support established women business owners as well as the new businesses that are relocating to the Phoenix area. The young professionals who are starting their dreams will be the future leaders of this organization and therefore we must reach out now to help the next generation of successful women CEOs take advantage of our experience and use it as a base on which to build. Our monthly luncheons are held on the second Wednesday of the month at Gainey Ranch Golf Club. There, you will be able to meet many amazing women (and some men) with whom you will be able to connect and collaborate. You will be inspired and learn from our speakers or a panel discussion on subjects that are important to you and your business and will support your goals and vision. In addition to that we have: • An award-winning mentoring program that has a proven high level of success and increased ROI • Rise up program — to learn about diversity in the workforce • Public Policy/Advocacy Day — to learn how to get involved and make a difference I encourage you take a moment to think about how important it is to empower women entrepreneurs for economic, social and political growth. Join us as we continue to create a safe place for women to strengthen their ability to grow individually and within their communities. To learn more about who we are and the programs we have to offer, please visit us at www.NAWBO.org/Phoenix.


Respectfully, Ronit Urman, NAWBO Phoenix President Designated Broker, Urman Enterprises LLC. urmanent.com NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.


We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at nawbo.org/phoenix and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.

For more infomation, visit www.nawbo.org/phoenix.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207, Scottsdale, Arizona 85260 480-289-5768 • info@NAWBOphx.org



Creating a Winning Team by Jean Briese

“Winning is not a sometime thing; it’s an all the time thing. You don’t win once in a while... you don’t do things right once in a while... you do them right all the time. Winning is habit. Unfortunately, so is losing.” —Vince Lombardi America loses $360 billion annually due to an unmotivated work group. The same study shows that engaged employees are 43 percent more productive than non-engaged employees. In a recent survey, more than 90 percent of executives said culture is important at their firms, and 78 percent said culture is among the top five things that make their company valuable.

Only 15 percent said their own corporate culture is where it needed to be and believe that improving culture would improve results. Business leaders believe a strong organizational culture is critical to success, yet culture tends to feel like some magic force that few know how to control. The good news is that it isn’t magic. There are

five pillars that are shared by all high-performing teams that I have captured in the iLEAD Principle. Put these into action immediately to improve your culture- and your results!

Inspire. Listen. Empower. Appreciate. Deliver Clear Expectations. Inspire

Leaders who inspire influence others to take action. But exactly how do you inspire? Inspiring leaders are those who use their unique combination of strengths to motivate individuals and teams to take on bold missions — and hold them accountable for results. And they unlock higher performance through empowerment, not command and control. Here are some practical ideas to help inspire your employees: • Paint your employees an attractive picture of the future of the organization and their place in it, and provide the rationale why certain goals have to be pursued. • Connect your employees to the “why.” Remind them of how their work improves people’s lives. • Distribute client testimonials. • Announce when profits are donated to charities.


It is probably not a surprise that most employees do not feel heard at work. The inspirational leader listens to the people in her organization. Talking to people about your passion is not enough. You must allow the ideas and thoughts of your staff to help form the vision and mission, or, minimally, the goals and action plan. No one is ever 100-percent supportive of a direction she had no part in formulating. Here are a few tips for connecting with your team on this level: • Hold a daily huddle — informally gather everyone around, standing, not sitting. It’s a chance to share wins, best practices and celebrations, and answer burning questions. • Find out what motivates and inspires each employee, and actively look for their ideas and opinions. • Simply asking how someone is doing personally and really listening to her answer is a good first step.


An employee who clearly understands the core values, purpose and direction of the company can easily make consistent decisions and take



appropriate action at any junction. It’s on you as the leader to impart your vision. That’s how you lead. Some tips for empowering your team include: • Clearly define the roles. Require accountability. Support their independence. • Make it okay to take responsible risks. Encourage safe failure. • Challenge status quo. • Reward self-improvement.


About 43 percent of highly engaged employees receive feedback at least once a week, compared to 18 percent of employees with low engagement. How do you show appreciation and give feedback? • Catch them doing the little things right. (Great for the daily huddle.) • Diversify awards to meet employees’ needs. These awards can include outings, trophies, point reward system, PTO. • Honor employees publicly. Recognize and praise often.

Deliver Clear Expectations

This seems obvious. But in so many organizations it isn’t. Maybe the leaders know the key performance metrics. I have been in organizations where the directors in charge of the teams didn’t understand how the decisions they made impacted the overall goals of the organizations. Communicate clearly so everyone understands what’s needed and their part in success!

Inspire. Listen. Empower. Appreciate. Deliver Clear Expectations.

Add these techniques to your culture and start creating winning teams today. Jean Briese is Arizona’s most reviewed and highestrated speaker, an award-winning sales leader and a transformational coach. For more information, visit www. jeanbriese.com

What to Do When a Family Crisis Affects Your Business by Selina Schuh

As business owners, we tend to live and breathe our business. However, sometimes crises hit in other areas of our lives. How we manage our energy and attention in these times can make or break our business. Recently, my father, who lives in Europe, was unexpectedly diagnosed with a terminal illness. This meant talking to family and caregivers during my most productive hours, sidelining many of my business projects. In addition, the shock of the impending loss triggered grieving, which caused me to be even less productive. During the first few days, I struggled to keep up business as usual. After a few days, however, I realized I needed to create change.

Take Time to Assess the Situation

I took time to sit down and look at the scope of the crisis. I knew with my father dying I would be facing two distinct challenges. In the immediate future, this meant dealing with medical staff, alerting friends and family, being present for my grieving mother and, eventually, organizing a funeral. Secondly, it meant that my parents’ home had to be cleared and sold, and my mother moved to a new living situation. All of this had to be navigated half a world away and would require me being physically absent from my business. I realized this was not a shortterm crisis, but one that would affect several months of my life. So, as you deal with your particular crisis, allow yourself to take a breath first and survey the situation. Make a list of all the most important tasks that need to get done and try to determine how long this crisis will affect your life.


Once I had created my list, I realized there were many tasks that I was able to continue. However, some of the work, such as writing blogs, was impossible for me to keep up in my current state of mind. Luckily, I had several people in my close network who are familiar with my writing style and content. They were more than happy to help out. Most of us, as we build our business, also build vast networks of qualified professionals. Look at the work you need to delegate and then reach out to the people you know.

Reduce Your Expectations of Productivity

In the beginning, I felt incredibly stressed about how I was going to get everything done. Then I realized that not everything had to get done. I postponed and cancelled many meetings. I chose one or two main tasks per day and felt good if I was able to accomplish them. Once I let go of my expectation and acknowledged that this was indeed a crisis, I was able to relax. As a result, I actually got more done than I expected.

Practice Self-Care

In times of crisis, we are often pushed past our emotional limits. The only way to navigate such situations with some grace is to allow ourselves time to get enough sleep. Eating well certainly helps; however, many crises take us out of our normal routine, and trying to keep up a


healthy diet may just increase our sense of stress. Rest is often the one component we can control. If your crisis extends over a long period of time, make sure you include exercise in your daily routine. This doesn’t mean you need to be at the gym every day. I merely went for a walk each day. I did it first thing, so I would not miss it if the day took an unexpected turn. This allowed me to let go of some of my stress and to mentally make a plan for the day. Crises are not the norm. They are temporary situations. As business owners, we often feel we should be productive 24/7. When we are able to understand crises as something out of the ordinary, and honor them with the time and attention they deserve, we are more likely to be present to the deep lessons these events hold for us and to navigate them more successfully. Selina Schuh is an educator, author, speaker and owner of Empowered Living Strategies. She teaches women who are feeling frustrated and under-appreciated in their relationships step-bystep skills to create deeply connected relationships. To view her library of free resources, visit empoweredls.com/free-resources.



Do Your Employees Have Your Back? Create a Culture of Engagement. by Cindy Gordon, Business Rescue Coaching, LLC Wouldn’t it be wonderful to take a month-long vacation from your business and know that your employees were taking care of everything the way you would? Imagine relaxing on a beach or sightseeing through Europe and not checking your text, emails or phone messages because your employees have your back! According to Gallup’s 2017 State of the American Workplace report, only 30 percent of the U.S. workforce is highly engaged at work (engaged employees are involved in, enthusiastic about and committed to their work and workplace). It’s no wonder that business owners and leaders are more stressed and overworked than ever. However, investing time in building supportive relationships with your employees will not only help your business run more smoothly and effectively but will also drive profitability at a faster rate than ever. There are three elements leaders must build on to create a “got your back” environment. 1. Emotional intelligence awareness 2. Supportive communication skills 3. Consistent leadership behaviors

Emotional Intelligence Awareness

Emotional intelligence is the capacity to be aware of, control and express one’s emotions, and to handle interpersonal relationships sensibly and empathetically. Leaders who have a high level of emotional intelligence notice the impact of their emotions on others and use this sense to build connection with their workforce. It is a common adage that people don’t leave companies, they leave bosses. Therefore, bosses who build their emotional intelligence capacity are more likely to have employees who are highly committed to them and the organization. Daniel Goleman, the father of emotional intelligence, asserts that the leader’s mood and behaviors drive the moods and behaviors of everyone else. A cranky and ruthless boss creates a toxic organization filled with negative underachievers who ignore opportunities, while an inspirational, inclusive leader produces helpers who take on any challenge. Which type of workplace are you creating?



Supportive Communication Skills

Have you ever gone to someone with an idea and gotten shot down before fully explaining it? There is no quicker way to diminish a relationship by talking dismissively to someone. Developing communication skills that open the door to building positive rapport will show your employees they have your ear and you care about what they have to say. Some of the best communication skills are seen in improv comedy. These tactics encourage people to build on ideas given to them by others. The simple “Yes, and” skill is taught at many leadership workshops because of its powerful, positive effect on a conversation. It provides a positive framing of the conversation (an important emotional intelligence capacity) and encourages collaborative ideas to build on an initial concept. This skill shouts, “I support you – we’re in this together!!”

Consistent Leadership Behaviors

Actions speak louder than words. Have you ever been told by someone, “I’ll call you back in five minutes” and 45 minutes later you’re still waiting to hear from them? How does that make you feel? Unimportant? Insignificant?

Redundant? Yes! Consistencies between a leader’s words and actions are at the root of employee engagement issues. To build a “got your back” environment, leaders must be very cognizant of their behaviors. The leader who, for example, seeks opportunities to look after the best interest of others will be seen more favorably and will likely be looked after by others. The leader who picks and chooses who to be nice to will be looked down upon and will create an environment of “every person for themselves.” Leaders must realize that they are the drivers of their workplace culture. It is up to them to set the tone for a “got your back” environment. Don’t expect your employees to have your back if they don’t feel that you’ve got theirs! Cindy Gordon is the owner of Business Rescue Coaching, LLC. (BusinessRescueCoaching.com). She is a strong evangelist of the importance for business owners and leaders to create a highly engaged workforce to achieve more success with less stress.

Women Business Owners Benefit from NAWBO Mentoring Program By Sandra Abbey

Each year, the Phoenix Chapter of the National Association of Women Business Owners has provided one of the Valley’s only business mentoring programs that is designed and facilitated exclusively for women business owners. Hundreds of women have benefitted as mentors or mentees. Mentees develop a business plan, learn from experts in the community and form masterminding partnerships with experienced mentors and other program participants. The nine-month-long program has been sponsored by a number of organizations over the years and is currently seeking partners to sponsor the 2018-2019 program. A long-established relationship with the Maricopa County Small Business Development Center has been a mutually beneficial community partnership over the years, introducing women business owners who participate in the NAWBO mentoring program to business development tools and oneon-one counseling. Notable NAWBO mentoring program chairs over the last several years have included SBDC counselors Nancy Sanders and Paula Wittekind, as well as experienced NAWBO business owners Cindy Gordan and Sara Regester. I am joining these notable women as program chair for 201819. I am an experienced business strategy and results consultant who plans to bring my unique style of authentic, supportive accountability and sense of community to the program. My goals are to help more mentors and mentees achieve their goals of generating jobs, increasing revenue, serving more customers and clients in the community, and developing a leadership legacy for the future. The Phoenix Chapter has received accolades from the national NAWBO organization related to the mentoring program, and an additional goal for the coming year is to develop a turnkey program guide that can be shared with other NAWBO chapters around the country. We know this program is producing incredible results for our mentees and mentors here in the Valley, but we don’t want this to be a best-kept secret any longer. We look forward to role modeling the program nationally. To make a bigger impact this year, applications to the mentoring program will be


open to both NAWBO members and nonmembers. Applications will be available in early August and must be submitted to the mentoring committee by Friday, Aug. 31, 2018. Mentors and mentees will be matched and the program will kick off in September and run through May 2019, culminating with a celebration of the business and personal goals and accomplishments of each mentee and mentor. Each month of the program, a subject matter expert speaks on a different topic related to developing and growing a business. Additionally, a monthly facilitated mastermind group for mentees and mentors focuses on implementing the business building topics within each mentee’s own business and using this information to achieve her individual developmental goals. Many mentees and mentors meet outside these formal sessions and form lasting business relationships and friendships. Woman business owners who want to participate in the next Mentoring Program must meet the following criteria: • Have a vision, goal and commitment to developing their current business or business idea; • Have a high level of commitment to the nine-month program (September 2018 to May 2019); • Be willing to dedicate 7-10 hours

each month to attend topic sessions, mastermind meetings with their mentors, and complete assignments directly related to the development of their business; • Be a current business owner for a minimum of one year (recommended, but not required); and • Active NAWBO members receive a discount on the mentoring program; however, this year the program will be offered to non-members. Mentors should have the following qualifications: 1. Will commit to attend the September and October speaker sessions and the monthly mastermind sessions October through May; 2. Have at least three years’ experience as a business owner, or other equivalent experience; and 3. Have a proven business development and growth record. Sandra Abbey is the NAWBO Mentoring Program chair and owner of Leader Discovery. For more information, visit www.nawbophx.org.



How to Make Air Travel Less of a Pain by Kathleen Gramzay, BCTMB & Wellness Educator

Air travel can be tough. Between schlepping bags, the mental duress of contending with possible schedule changes and the actual time stuck in a seat, flying can definitely be a pain. If your life involves cross-country or international travel, you are already keenly aware that 5 to 15 hours in a cramped seat can definitely cause some discomfort. A recent flight to and from Greece, then from New York to Phoenix, had me using my favorite tips to stay comfortable on the trip. Try them to make your travel more enjoyable. 1. Preflight. Instead of sitting while waiting for your zone to be called, find a corner and take the opportunity to stretch, reach and bend. a) For Low Back. The arm of the end seat at the gate makes for a great bar to squat and do a low-back stretch. If you’re tall, use the ticket counter instead. Gently bend forward and hold on, with arms fully extended and feet planted. Slowly bend your knees and drop into a seated squat. Pay attention to the extending stretch in your low back, pausing in the spots where it especially feels good. You’ll be more comfortable on the flight and may inspire fellow travelers to follow your lead. b) For Hamstrings. Use either a chair seat or the low tables adjacent to do hamstring stretches to keep from cramping on the flight. Place your heel on it, leg straight. Lean slightly forward and tilt your pelvis back to stretch your hamstrings.

2. Get Aligned with Your Destination Time Zone. Set your watch to your destination time zone to start early adaptation to it. For international travel, night flights work if you can sleep on the plane and wake with the sun there. The trick is when you get there to not succumb to a nap but wait to sleep until night falls. If sleeping on a plane is challenging for you, better to do day flights. 3. Stay Hydrated. As always, staying hydrated is key for a healthy body and mind. When flying, it’s even more important to counter the lower humidity in air cabins that can cause dry eyes and leave you more

We need you to Transform a Life! New Pathways for Youth is seeking 35 volunteer mentors to match with youth having experienced Adverse Childhood Experiences. These youth are committed to transforming their lives. They now need you to step up and join their journey. Will you be the one? Join us for a Mentor Introduction Session on Tuesday evenings at 6:15 p.m. and on the 2nd and 4th Thursday of each month at 7:30 a.m. at 1001 East Pierce Street, Phoenix. RSVP to info@npfy.org.

Your commitment is urgent. Transform a life today! Become a New Pathways Mentor! New Pathways for Youth is an evidenced based mentoring program that matches well-trained mentors with youth in need of a caring adult relationship. Mentors receiving coaching and support to guide their mentoring relationship in the life skills curriculum offered by New Pathways.

Transform a LIFE. Be a MENTOR. 6


vulnerable to possible infection. If you’re going to drink coffee or cocktails, do so in moderation and increase your water intake to offset them. 4. Strengthen Your Respiratory System. Recycled air and a lot of people increase the chance of exposure to infection. I travel with a quarter-ounce bottle of eucalyptus oil, as eucalyptus kills bacteria in the respiratory system. Place a few drops in your clean hands, rub them together and inhale. If you’re surrounded by coughing and sneezing, it’s a life saver. Immune system boosters like Emergen-C or Airborne can also help. 5. Stay Nourished. Travel with a healthy snack in your bag that works for you; almonds and miniature tangerines is a personal favorite. The protein and fruit provide a balance for blood sugar along with vitamin C. That and a bottle of water, and you’re set if there are delays in flight service. Staying nourished and hydrated also helps you stay mentally calm if there are unexpected travel challenges. 6. Keep Your Knees Lower than Your Hips. This takes the strain of the low back. Raise your hips by placing an airplane pillow just under your butt bones to increase the angle. During the flight, periodically tilt your pelvis back and forth to alleviate low-back stiffness. 7. Move During the flight. Flex and circle your ankles every hour or so to increase circulation and counter swelling that can be caused by lower cabin pressure and reduced oxygen absorbed by the blood. (Also helps to counter deep vein thrombosis — blood clots). If you can’t stretch your legs while in your seat, be sure to get up and walk the aisle, optimally once an hour. 8. Be Productive Waiting to Deplane. Take advantage of the wait and move your parts — neck and shoulder circles, pelvic tilts, knee and ankle flexing to activate your muscles so you’re ready to move once you get to do so. Moving with ease lends to a more enjoyable trip whether for business or fun. Happy, smooth, comfortable travels to you.

Kathleen Gramzay, BCTMB, is a speaker, author, developer and national continuing education provider of Kinessage®. She is a soft-tissue and movement specialist serving wellness-conscious businesses and their employees to live more productive, joyful lives. For more information, visit www.kathleengramzay.com.


NAWBO Members Are Driving the Economic Growth of Phoenix Trio offers secrets to their success by Laurie W. Anderson, Cactus Creative

Three members of the Phoenix chapter of the National Association of Women Business Owners are part of the elite group of the top Women-Owned Businesses as named by the Phoenix Business Journal. Each Phoenix business owner learned early in her career that women do business differently from their male counterparts. Rosaria Cain, Robin Orchard and Ginger Clayton recently shared valuable advice for other female entrepreneurs. Cain is the CEO of Knoodle, a full-service advertising and marketing agency. “I started my business 19 years ago because I was tired of working for men in corporate America,” she says. Cain attests that a large contributor to the success of Knoodle was knowing she was in control of her choices. She stresses the importance of creating a workplace where people can work in harmony to serve the needs of clients. “As women, we all have these choices and should not fall prey to the ‘#MeToo’ movement or self-victimization,” Cain explains. “Instead, we should take it upon ourselves to create vibrant change, paving the way for future success for ourselves and other women.” Last year, Cain rejoined NAWBO to take advantage of its national reach to other successful women entrepreneurs through its conferences and NAWBO Circle. For Orchard, president of Orchard Medical Consulting, a national leader in providing nurse care management, success came from not trying to build her business like a man. “Generally speaking, men like to learn by doing,” she explains. “Women tend to thrive in a group environment that is filled with talented people who readily and generously offer advice. I have found NAWBO to be just that place.”

Orchard has been a member of NAWBO for more than 10 years and uses the relationships she has built with members to receive valuable business advice. As a past mentor of NAWBO’s award-winning mentoring program, Orchard generously sponsors the program so other, newer women business owners can thrive. Clayton is the owner of Elontec, a singlesource provider of office furniture, relocation and technology solutions since 1997. Business success for her came by understanding how to balance all the roles a woman faces. Being entrepreneurial, Clayton saw that she must not only help others through her business, but through community service. “As women business owners, we face great challenges from managing our business, servicing the nonprofit community, raising children, being wives and, often, caring for elder parents,” she says. “We have to continuously listen, learn and lead to create a legacy.” And a legacy is definitely what Clayton is creating. In 2013, she founded the Diaper Bank of Central Arizona to build a sustainable diaper bank resource that enables Valley nonprofit agencies to help their clients by providing diapers. “These three amazing women are an inspiration to NAWBO Phoenix members,” says Ronit Urman, 2018-19 NAWBO Phoenix President. “They remind us that, as women, we can accomplish anything. It takes a clear picture of the change you want to create, a group environment filled with talented people who readily offer advice, and the desire to create a legacy. And lots of hard work.” For more information about NAWBO Phoenix, visit www.nawbophx.org.



Top Ten Tips for Creating Your Business Plan by Christina Heide

Why should you have a business plan? A business plan provides clear objectives for well-planned business goals and strategies to be met to ensure financial success. It also provides reassurance to lenders and investors that requested funds are being used appropriately to meet these goals. Below are ten tips to guide you through the process of developing your business plan. 1. Prepare an executive summary a. This is a quick overview of your business plan that touches all the high points. b. It should include an in-depth company profile and goals. c. Break down your goals into first-, second- and third-year plans. This is commonly referred to as your road map to success. 2. Research your industry a. Always know your competition and where you fit in. 3. Know what differentiates your business from others in your field a. Provide detailed information and descriptions. Don’t assume the person reading your business plan knows all about your business; educate and enlighten them. b. Include: What do you sell/offer/provide? How does it benefit customers/consumers? Product life cycle? 4. Internal structure plan a. Every company operates differently; describe your company’s management structure. b. Outline roles for key players in your company (CEO/COO/ President/VP/CFO/HR, etc.). c. Provide owner and management resumes. Be sure to include the value each brings to the business. 5. Create a marketing/sales plan a. Outline your plan to market your business. b. Provide information on who will be doing your marketing (internal/external) and why you chose them. c. Be sure to include sales strategy, advertising, marketing partners, etc. 6. Funding request a. If monies are needed, be sure to know the amount of loan request and purpose of the monies (working capital, FF&E —

fixtures/furniture/equipment, tenant improvement, commercial real estate). b. Provide information on who will be providing needed monies and where you are in the process. c. If monies are not needed, provide an overview of how costs will be covered. 7. Financial projection a. Outline the route needed to grow revenues. b. Reiterate and explain in greater detail the first-, second- and third-year business plans. 8. Include all adjunctive information a. Permits, licenses, leases, etc. 9. Focus on presentation a. You want people to want to read your business plan and support your idea. b. Make it interesting and highlight key points. c. Provide enough detail for your business plan to guide you from first- to third-year success. (Revisit your business plan several times throughout each year to ensure you are staying on track.) d. Put it in a protective binder, Power Point presentation or USB drive and make sure all of the company key players have one, have read it and are ensuring its execution. 10. Use local resources to assist with preparing your business plan at no cost to you a. Small Business Development Center Phoenix (www.maricopa-sbdc.com) b. Small Business Administration Website (www.sba.gov) c. SCORE Mentoring (www.score.org) Christina Heide is the vice president, senior commercial acquisition officer for Wells Fargo Bank Group. For more information, visit www.wellsfargo.com.

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Small Business Industry Leaders

Keeping Small Business Up and Running

Robert Blaney has served as the district director of the U.S. Small Business Administration for the State of Arizona since 1998. His varied experience includes work as a federal agent, police officer, vice-president of an insurance brokerage and district director for the late Congressman Jack Kemp. He is a native of western New York and a graduate of the State University College of New York at Buffalo.

The U.S. Small Business Administration has been changing and modernizing our lending programs to keep pace with our growing economy. The pace of SBA loan-making is always a healthy sign for a good economy because the credit market is one of the foundations for ensuring the availability of financing for small businesses trying to establish themselves, grow and create new jobs throughout Arizona. The past September, the SBA introduced Lender Match, a free online referral tool that brings together entrepreneurs and SBA lenders to help increase access to capital. It is designed to make it easier for entrepreneurs to connect with potential lenders by allowing a small business to fill out a quick online form, without registration, and connect them with lenders usually within 48 hours. Lender Match is available to all SBA 7(a) and 504 lenders across Arizona. This past April, SBA announced a new 504 Loan and the Debenture that funds with a 25-year maturity. This new 25-year Debenture is available for 504 Projects that are approved after April 2018. The purpose of the 504 Loan Program is to provide long-term financing for the purchase or improvement of land, buildings and major equipment. Loans are made by lenders in conjunction with Certified Development Companies (CDCs), that are regulated by the SBA to promote economic development within the community. The new 504 Loan term complements the 10- and 20-year 504 Loan and Debenture that have been available since 1986. Small businesses and the lending industry have emphasized the need for an affordable, fixed-rate instrument with a term-to-maturity more closely resembling other longer-term mortgages. The option for extending the payment cycle by an additional 60 months gives small business borrowers the opportunity for lower monthly payments, which can significantly help their cash flow. With all the news last fall regarding the damage faced in Texas, Florida and Puerto Rico, it is always a good time for business owners to think about preparing for a disaster that can affect their business. When most of us think of a disaster, we think of a hurricane, earthquake or tornado. But Arizona’s monsoon season can create havoc and, as we have seen in the past, forest fires can create tragedy. Small-business owners are well-advised to back up records, store data offsite and develop a continuity of operations plan to get their business back up and running as soon as possible. If you have hired new employees in the last year, now is the best time to make sure they are aware of the operational and procedural priorities of your business. This will allow them to better assist you in coming back online should a disaster occur. Nearly one in 10 small businesses in the U.S. is owned by a veteran and that number continues to grow. The SBAfunded Arizona Veterans Business Outreach Center, the Arizona Small Business Development Center Network, the SCORE Association and multiple small-business owners and other military veterans work to prepare veterans to succeed as entrepreneurs because their success is our nation’s success. Through the Boots to Business initiative, thousands of service members have the opportunity to learn the nuts and bolts of how to start and grow a business, learn where to seek technical assistance and become successful entrepreneurs. The SBA continues that program Accounting & Tax Services at all four Arizona military installations and with the Arizona National Guard. On the other side of that coin, most business owners never have Alternative Funding a regret when they hire a Vet. Business Banking / SBA Lending It is exciting for me to participate again this year with In Business Business Organizations & Associations Magazine as they launch the 2018 Small Business Guide, because it is Commercial Insurance such a useful directory for local and area businesses.


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Small Business Industry Leaders

Accounting & Tax Services CBIZ and Mayer Hoffman McCann, P.C. CBIZ provides accounting, tax and business valuation, benefits and insurance, and consulting services to real estate, not-for-profit, retail, construction, healthcare, and manufacturing and distribution business in the Phoenix marketplace. Top Executive: Steven L. Gerard Offices (Local / National): 1 / 100+ Local Headquarters: 4722 N. 24th Street., Suite 300, Phoenix, AZ 85016 Phone: (602) 264-6835 Website: www.cbiz.com

Liquid Capital Liquid Capital provides innovative financing solutions for small to middle-market businesses and a strategic accounts payable outsourcing program for large corporate and governmental buyers of goods and services. Top Executive: Joel Gottesman Offices (Local / National): 1 / 41 Local Headquarters: 8679 E. San Alberto Dr., Suite 201, Scottsdale, AZ 85258 Phone: (480) 473-2105 Website: www.liquidcapitalcorp.com

Business Banking / SBA Lending

Duran Accounting Solutions LLC

Alliance Bank of Arizona

Duran Accounting Solutions LLC provides accounting and tax solutions to businesses with integrity, professionalism and a high focus on customer service.

Alliance Bank of Arizona is a division of Western Alliance Bank, the go-to bank for business in its growing markets. Alliance Bank of Arizona offers a full spectrum of deposit, lending, treasury management and online banking products and services, plus superior, personalized service to meet the needs of local businesses.

Top Executive: Regina Duran Offices (Local): 1 Local Headquarters: 2633 E. Indian School Rd., Phoenix, AZ 85016 Phone: (480) 248-6755 Website: www.durranaccounting.com

YB Company, LLC YB Company, LLC was created with the purpose of assisting small-business owners with achieving their entrepreneurial goals. Committed to its clients, YB tailors its accounting, consulting and tax services to their specific needs Top Executive: Yesena Barraza Offices (Local): 1 Local Headquarters: 1601 N. 7th Ave., Suite 350, Phoenix, AZ 85006 Phone: (623) 243-1272 Website: www.ybcompanycpa.com

Alternative Funding FSW Funding FSW provides immediate funding to small businesses by advancing funds against an approved commercial invoice. Top Executive: Robyn Barrett Offices (Local): 1 Local Headquarters: 4530 E. Shea Blvd., Suite 142, Phoenix, AZ 85028 Phone: (602) 535-5984 Website: www.fswfunding.com


JULY 2018

Top Executive: Don H. Garner Offices (Local / National): 11 / 43 national as part of larger company Local Headquarters: 1 E. Washington St., Phoenix, AZ 85004 Phone: (602) 389-3500 Website: www.westernalliancebancorporation.com

Business Organizations & Associations Arizona Small Business Association ASBA is the largest trade association in Arizona, representing 10,000+ member businesses and more than half a million employees in all 15 counties. ASBA focuses on four key fundamentals of business: effective small-business education, dynamic professional connections, essential support resources and public policy. Top Executive: Jess Roman Offices (Local): 2 Local Headquarters: 4600 E. Washington St., Suite 340, Phoenix, AZ 85034 Phone: (602) 306-4000 Website: www.asba.com

Local First Arizona Local First Arizona is a nonprofit organization working to strengthen communities and local economies through supporting, maintaining and celebrating locally owned businesses throughout the State of Arizona. Top Executive: Kimber Lanning Offices (Local): 1 Local Headquarters: 407 E. Roosevelt St., Phoenix, AZ 85004 Phone: (602) 956-0909 Website: www.localfirstaz.com

Commercial Insurance

National Bank of Arizona

CopperPoint Insurance Companies

National Bank of Arizona provides local expertise and focuses on delivering award-winning service. It is more than just a business bank; it has expanded to a full-service financial institution offering a suite of products and services tailored to business.

CopperPoint provides workers compensation insurance coverage for more than 16,000 businesses statewide, ensuring workers the care they need if they are injured on the job. It has been providing workers compensation insurance to Arizona businesses since 1925.

Top Executive: Mark Young Offices (Local / National): 24 / 66 Local Headquarters: 6001 N. 24th St., Phoenix, AZ 85016 Phone: (602) 212-5524 Website: www.nbarizona.com

Pinnacle Bank

Top Executive: Marc E. Schmittlein Offices (Local): 1 Local Headquarters: 3030 N. 3rd St., Phoenix, AZ 85012 Phone: (602) 631-2300 Website: www.copperpoint.com

Pinnacle Bank is an Arizona-based, businessoriented bank serving small businesses and the community in Northeast Phoenix and Scottsdale and along the Camelback corridor. It has a specific expertise in SBA and Residential Mortgage & Construction Lending. Top Executive: Michael J. Thorell Offices (Local): 3 Local Headquarters: 14287 N. 87th St., Suite 123, Scottsdale, AZ 85260 Phone: (480) 609-0055 Website: www.pinnaclebankaz.com

Small Business Owners! with Rick McCartney


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Small Business Industry Leaders

Moving Health Forward Together

At Blue Cross Blue Shield of Arizona (BCBSAZ) we’ve learned a powerful lesson over the years -- the best way to predict the future is to create it. And we’ve been busy doing just that – creating the future by moving health forward. With 75 plus years of serving Arizona businesses and the nationwide reach of the Blue plans, we are putting our extensive insights, long-standing provider relationships and proven clinical results to work for businesses like yours: Insights – through insights, we anticipate your employees’ health needs so they have a better health journey. Relationships – through our relationships, we are making healthcare services more effective and challenging the status quo in the way healthcare is delivered. Results – through a focus on results, we are taking actions that lead to improved quality of life and lower healthcare costs. With a multigenerational workforce, pressure on medical costs, growth of new treatments and concerns about societal health, BCBSAZ is accelerating change so that we have better healthcare starting now.

FOCUS ON WHAT MATTERS TO YOU We know that healthy employees lead to a more competitive benefit program for your company. That’s why we focus on helping your employees stay well and providing additional care to those who need it.

As the largest local insurance company in Arizona, we deliver health insurance products, related services and networks to more than 1.5 million customers.1 In a recent satisfaction study, 92% of those surveyed reported they were satisfied with our products and services.2 We offer: Medical Plans – PPO or HMO plans with a wide range of deductibles, including high deductible health plans that work with a health savings account (HSA). Dental Plans – Standard plans include 100% in-network coverage for diagnostic and preventive services. Additional Products and Services – Life, shortterm disability, long-term disability, critical illness, accident, cancer, COBRA services and a visionsavings program through Vision Care.3

A PARTNER YOU TRUST Companies like yours need a partner leading the way, innovating, and creating that future, not simply reacting to it. BCBSAZ is that partner. We’re helping to create a future where people get healthier faster and stay healthier longer. That is a future we can all look forward to. 1. Some plans are not offered or underwritten by Blue Cross Blue Shield of Arizona. 2. The Customer Study and Group Benefits Administrator Study were conducted in 2015 by Thoroughbred Research, an independent research company.

At a Glance Company Name: Blue Cross Blue Shield of Arizona Main Office Address: 2444 W. Las Palmaritas Dr., Phoenix, AZ 85021 Phone: (602) 864-5792 Website: www.azblue.com Number of Offices in Metro Phoenix: 2 Number of Staff: 1,428 City Nationally Headquartered: Phoenix, AZ CEO: Pam Kehaly No. of Years with Firm: 11 Year Established Locally: 1939 Specialties: Employer Group Health Insurance, Individual Health Insurance, Dental Insurance

3. Vision Care is not insurance, it is an independent company that provides discount eye services and products.



JULY 2018



Small Business Industry Leaders

Commercial Leasing & Property Management Fisher Commercial Real Estate

Patrick A. Clisham

Steven N. Berger

Kevin M. Judiscak

Engelman Berger, PC Engelman Berger is comprised of experienced lawyers who are well recognized for their expertise and are committed to assist our clients to resolve commercial disputes, document and implement commercial, real estate and public finance transactions, and to prevent futurelegal problems through proper planning. Our clients are national and local lenders, borrowers, lessors, tenants, family-owned businesses, developers, franchise owners, trustees, municipalities and investors. In our litigation practice, we provide creative and focused representation in all federal and state courts, bankruptcy court, arbitrations, mediations and settlement negotiations. We thoroughly analyze the client’s options and explain the strategy and choices involved in a resolution of the dispute.

At a Glance Company Name: Engelman Berger Main Office Address: 3636 N. Central Ave., Suite 700 Phoenix, AZ 85012 Phone: (602) 271-9090 Website: www.eblawyers.com Number of Offices in Metro Phoenix: 1 City Nationally Headquartered: Phoenix Managing Partners/Years With Firm: Patrick A. Clisham, Managing Partner – 9 years Steven N. Berger, Executive Committee – 19 years Kevin M. Judiscak, Executive Committee – 17 years Year Established Locally: 1999 Specialties: Business Disputes, Real Estate Disputes, Bankruptcy, Reorganization, Creditors’ Rights, Business Transactions, Real Estate Transactions, Water Law, Loan Workouts, Mediation, Public Finance, Bonds, Employment

Our experience reaches disputes over real estate issues, water rights issues, commercial landlord and tenant issues, franchise agreement issues, employment and non-compete issues, “business divorces,” debtor-creditor disputes of all kinds, including receiverships, bankruptcies and reorganizations. In our transaction practice, we facilitate business, financing – both public and private, and real estate deals by providing experienced guidance, advice and representation in negotiations and documentation. Examples include water use agreements, commercial lease transactions, asset-based lending documentation, real estate finance arrangements, tax-exempt public financing transactions, information technology sale and use contracts, business formations, and business sales. We provide services to clients in many different industries including lenders, credit unions, real estate developers in residential, commercial, hotel and other projects, restaurant owners, medical practices and professionals, retailers, wholesalers, agricultural concerns, charter schools and other non-profit organizations from churches to community based charities, municipalities and other public entities. The foremost motivation in providing our services is being problem solvers for our clients, helping to identify and achieve their goals. We listen to ensure success. We utilize many proven best practices and exclusive programs that we have developed to assist our clients. Viewing benefits as an investment, rather than a cost, our clients achieve better results and a return on their investment. Our lawyers are recognized in Martindale Hubbell AV ratings, Southwest SuperLawyers, and U.S. News & World Report’s Best Lawyers in America, among other ratings. We are locally owned and our firm and lawyers take an active role in community activities. Our lawyers and staff provide handson charitable services, advice and counsel on boards of directors, fundraising and financial support to a broad variety of important causes to support and enhance our community.

Fisher Commercial Real Estate is a full-service commercial real estate company that specializes in the leasing and sales of shopping centers and other commercial properties throughout Arizona. Fisher Commercial Real Estate has the capacity to competently handle everything from small, unanchored strip centers to larger community and power centers. Its agents also have experience in handling the disposition of free-standing buildings, pads, retail land and mixed-use projects. Top Executive: Steve Fisher Offices (Local): 1 Local Headquarters: 2415 E. Camelback Rd., Suite 700, Phoenix, AZ 85016 Phone: (602) 522-9100 Website: www.fishercommercial.com

Lincoln Properties Lincoln Property Company is an international full-service real estate firm offering real estate investment, development, design/construction management, leasing and property management/ receivership/asset management services. LPC has approximately 7,300 employees and maintains a presence in more than 200 U.S. cities and 12 countries throughout Europe. Top Executive: David Krumwiede Offices (Local): 1 Local Headquarters: 3131 E Camelback Rd., Phoenix, AZ 85016 Phone: (602) 912-8888 Website: www.lpcphx.com

Credit Reporting Reliable Background Screening For more than a quarter of a century, Reliable Background Screening has mitigated risk for thousands of clients by providing expert advice and unparalleled quality services. Its goal is to protect clients, their employees, their business, their brand and their assets. It works to do so by educating its clients about what background information they should have, and what the best methods are to acquire it. Top Executive: Rudy Troisi Offices (Local): 1 Local Headquarters: 3509 E. Shea Blvd., Phoenix, AZ 85028 Phone: (602) 870-7711 Website: www.reliablebackgroundscreening.com



JULY 2018



Risk Assessment Group With its primary offices located in Phoenix, Arizona, Risk Assessment Group has been providing national background screening for more than a decade. Its philosophy of exemplary customer service starts with C.A.R.E. — Compliance, Accuracy, Reliable Turnaround Time, Exemplary Customer Service. Its primary focus is on providing clients with services tailored specifically around their needs. Top Executive: Brad Brigham Offices (Local): 1 Local Headquarters: 2100 S. Rural Rd., Tempe, AZ 85282 Phone: (866) 777-1114 Website: www.riskassessmentgroup.com

Delivery Services Corporate Delivery Service With more than 19 years of experience in the courier services industry, Corporate Delivery Service is able to successfully meet the courier delivery needs of the Phoenix business community. Top Executive: Bob Bruden Offices (Local): 1 Local Headquarters: 11225 N. 28 Dr., Phoenix AZ 85029 Phone: (623) 572-7345 Website: www.corpdelservice.com

OnTrac OnTrac is the faster, more affordable alternative to the National Carriers’ Ground service. Small-package shippers choose OnTrac because it can speed up ground delivery without the added cost of express shipping. Top Executive: Robert E. Humphrey Jr. Offices (Local / National): 3 / 100+ Local Headquarters: 4440 E Elwood St., Phoenix, AZ 85040 Phone: (800) 334-5000 Website: www.ontrac.com

Quicksilver Express Courier Quicksilver was founded on the simple premise of “listening to our customers” – and what they said they wanted was prompt, dependable service; a positive image; and timesaving management features. So, from the company’s modest beginning in 1982, it began delivering what they wanted. Top Executive: Mike Crary, CEO Offices (Local / National): 1 / 4 Local Headquarters: 4625 W McDowell Rd., Suite 160, Phoenix, AZ 85035 Phone: (602) 272-7200 Website: www.qec.com

Small Business Industry Leaders

Employee Benefits / Insurance Benefit Commerce Group Benefit Commerce Group is an innovative and award-winning employee benefits consulting firm that is committed to changing the healthcare cost paradigm. Top Executive: Scott Wood Offices (Local): 1 Local Headquarters: 14300 N. Northsight Blvd., Suite 221, Scottsdale, AZ 85260 Phone: (480) 515-5010 Website: www.benefitcommerce.com

Holmes Murphy & Associates Holmes Murphy takes pride in selling “thinking,” not insurance. In a nutshell, the firm sells the cumulative knowledge and experience that make insurance and businesses work better. It’s a philosophy that’s worked since the firm’s inception more than 85 years ago. As an independent brokerage, it serves business and industry leaders across the nation in the areas of property casualty insurance, employee benefits, captive insurance, risk management and loss control. Top Executive: Dan Keough Offices (Local / National): 1 / 12 Local Headquarters: 7047 E. Greenway Pkwy., Suite 210, Scottsdale, AZ 85254 Phone: (480) 951-1776 Website: www.holmesmurphy.com

At a Glance Company Name: Radix Law Main Office Address: 15205 N. Kierland Blvd. Suite 200 Scottsdale, AZ 85254 Phone: (602) 606-9300 Website: radixlaw.com

Radix Law In 2008, attorney Jonathan Frutkin founded the firm with a goal of providing top-notch legal representation to business, family and individual clients throughout Arizona. Frutkin is a thirdgeneration lawyer; his family has worked closely with business owners and their families for nearly 100 years. In 2017, the firm changed its name from The Frutkin Law Firm to Radix Law. The word “radix” is Latin in origin and stands for the concept of roots: the root of a tree, the root of knowledge, or the root of a number. The name


Number of Offices in Metro Phoenix: 1 Number of Staff: 20

reflects the firm’s values: a business law firm that knows how the law helps clients pursue opportunities and deal with challenges. The firm and its team of 12 attorneys considers itself to be rooted in Arizona with their office located at Kierland Commons in Scottsdale. Radix Law helps businesses, individuals and families with their business law, bankruptcy, taxation, asset protection, real estate law, wills, trusts and estates, and litigation needs.

City Nationally Headquartered: Scottsdale, AZ CEO/Managing Director: Jonathan Frutkin No. of Years with Firm: 10 Year Established Locally: 2008 Specialties: Business Law, Bankruptcy, Real Estate Law, Wills, Trusts, Estates and Litigation

JULY 2018



Small Business Industry Leaders

Healthcare Insurance Blue Cross Blue Shield of Arizona BCBSAZ offers various health plans for individuals, families, and small and large businesses. BCBSAZ also offers Medicare supplement plans to individuals over age 65. BCBSAZ is committed to improving the quality of life of Arizonans. Top Executive: Pam Kehaly Local Headquarters: 2444 W. Las Palmaritas Dr., Phoenix, AZ 85021 Phone: (602) 864-4100 Website: www.azblue.com

Brodin HR Law Whether it’s a workplace investigation, HR compliance review, employment law issue or other legal services related to human resources, Brodin HR Law can help. Top Executive: Jeff Brodin Offices (Local): 1 Local Headquarters: 3636 N. Central Ave., Suite 700, Phoenix, AZ 85012 Phone: (480) 351-7700 Website: brodinhrlaw.com

Information Technology

Delta Dental of Arizona

Gartman Technical Services, Inc.

With 40 years of experience insuring healthy smiles across the state, Delta Dental of Arizona is passionate about oral health and its importance to generations of families. Delta Dental works hard to improve oral health by emphasizing preventive care and making dental coverage accessible to a wide variety of employers, groups and individuals. With the largest network of dentists, locally and nationally, Delta Dental offers a full range of plans to fit any budget and any size company.

Gartman Technical Services, Inc. is a full-service IT company specializing in designing the correct hardware, network and software configurations for its clients. Technicians are experienced in all aspects of hardware configurations, software and network integration.

Top Executive: Allan Allford Local Headquarters: 5656 W. Talavi Blvd., Glendale, AZ 85306 Phone: (602) 938-3131 Website: www.deltadentalaz.com

Human Resources / Hiring AmeriSource HR Consulting Group, LLC AmeriSource helps business owners build the foundation, manage the growth and establish efficiencies within their business. Top Executive: Camille French Offices: (Local): 1 Local Headquarters: 1221 E. Osborn Rd., Suite A204, Phoenix, AZ 85014 Phone: (602) 343-6444 Website: amerisourcehr.com

Arizona Correctional Industries Arizona Correctional Industries today is a vibrant business creating innovative solutions for customers while helping inmates gain the job skills to lead productive lives. ACI’s strength is working with its business partners and customers to answer their questions. Top Executive: Brian Radecki Offices (Local / National): 1 / 15 Local Headquarters: 3279 Harbour Dr., Phoenix, AZ 85034 Phone: (602) 272-7600 Website: aci.az.gov


JULY 2018

Top Executive: Glen Gartman Offices (Local): 1 Local Headquarters: 735 N. 19th Ave., Phoenix, AZ 85009 Phone: (602) 788-8121 Website: gartmantechnical.com

itSynergy Since its inception in 1997, Phoenix-based itSynergy has been the leading Information technology consulting organization empowering small and mid-market businesses with strategic IT guidance, comprehensive IT services, and custom software development solutions that provide distinct competitive advantages. Leveraging the latest Microsoft® technology, the firm builds, deploys and supports solutions that improve efficiencies, drive bottom-line results and enable clients to focus on their core business. Top Executive: Michael W. Cocanower Offices (Local): 1 Local Headquarters: 7310 N. 16th St., Suite 130, Phoenix, AZ 85020 Phone: (602) 297-2400 Website: itsynergy.com

OneNeck IT Solutions Corporation OneNeck is a leading provider of hybrid IT solutions tailored for mid-market and enterprise companies, including cloud and hosting solutions, managed services, ERP application management, professional services, IT hardware and top-tier data centers. Top Executive: Terry Swanson Offices (Local / National): 1 / 15 Local Headquarters: 5301 N. Pima Rd., Suite 100, Scottsdale, AZ 85250 Phone: (480) 315-3000 Website: www.oneneck.com

Janitorial Jani-King Family-owned and -operated Jani-King Southwest provides state-of-the-art commercial cleaning services to hotels, restaurants, surgery centers, schools, financial institutions, manufacturing facilities and municipal buildings from regional support centers in Phoenix and Tucson. Top Executive: Julie Robinson Offices (Local): 1 Local Headquarters: 7740 N. 16th St., Suite 110, Phoenix, AZ 85020 Phone: (602) 433-0550 Website: www.janiking.com

Law Firms Engelman Berger Engelman Berger is comprised of experienced lawyers who are well recognized for their expertise and committed to resolve commercial disputes and assist clients in preventing legal problems through proper planning. Top Executive: David Wm. Engelman and Steven N. Berger Offices (Local): 1 Local Headquarters: 3636 N. Central Ave., Suite 700, Phoenix, AZ 85012 Phone: (602) 271-9090 Website: www.eblawyers.com

Fennemore Craig Fennemore Craig is a full-service law firm with more than 190 attorneys. A law firm in tune with the business engine, Fennemore Craig has helped the West’s entrepreneurs as well as its largest businesses for more than 130 years, whether pursuing solutions or defending their interests in federal and state courts, administrative agencies and arbitration proceedings. Top Executive: Stephen A. Good Offices (Local / National): 1 / 5 Local Headquarters: 2394 E. Camelback Rd., Suite 600, Phoenix, AZ 85016 Phone: (602) 916-5000 Website: www.fclaw.com

Radix Law The firm and its team of 12 attorneys considers itself to be rooted in Arizona, with its office located at Kierland Commons in Scottsdale. Top Executive: Jonathan Frutkin Offices (Local): 1 Local Headquarters: 15205 N. Kierland Blvd., Suite 200, Scottsdale, AZ 85254 Phone: (602) 606-9300 Website: radixlaw.com




Marketing & Social Media Falling Up Media Falling Up Media crafts the content that tells the client’s story and distributes that content through the right channels to target its ideal audience at the right place, at the right time. Always knowing their ROI, clients never have to guess when and where their next sale is coming from. Top Executive: Cody Kluver and Cody Helgeson Offices (Local): 1 Local Headquarters: 515 E. Grant St., Phoenix, AZ 85004 Phone: (623) 349-1736 Website: www.fallingupmedia.com

Ideas Collide LLC Ideas Collide LLC provides solutions to any communications problem. The agency works to be an extension of its clients’ marketing team — the big ideas department and the go-to for collaborating on every aspect of marketing, public relations, advertising and design. Top Executive: Matthew Clyde Offices (Local / National): 1 / 1 Local Headquarters: 6125 E. Indian School Rd., Suite 1001, Scottsdale, AZ 85251 Phone: (480) 659-4520 Website: www.ideascollide.com

Infusionsoft Infusionsoft provides small-business solutions built exclusively to help conquer the chaos through a Web-based system that combines intelligent automation with powerful CRM, email marketing, e-commerce and social media tools. Top Executive: Clate Mask Offices (Local): 1 Local Headquarters: 1260 S. Spectrum Blvd., Chandler, AZ 85286 Phone: (480) 807-0644 Website: www.infusionsoft.com

The James Agency Providing innovative ideas and creative solutions for clients’ biggest problems, the agency’s tight-knit tribe ditches conventional industry BS to maximize each client’s time, money and sanity while acting as an extension of its team. Top Executive: Veronique James Offices (Local): 1 Local Headquarters: 6240 E. Thomas Rd., Suite 200, Scottsdale, AZ 85251 Phone: (480) 248-6710 Website: thejamesagency.com

Small Business Industry Leaders

KEO Marketing

Goodmans Interior Structures

Specializing in business to business (B2B) marketing strategy, creative, messaging, infrastructure, execution, analytics and results, KEO Marketing helps companies as well as medium-sized businesses achieve and exceed their marketing and sales goals.

Goodmans represents millions of quality commercial furnishing products from manufacturers that include Herman Miller, Geiger, Davis, Nemschoff, Nucraft, Fixtures, Global, Hon, National, La-Z-Boy and more than 400 others. Services include space planning through installation.

Top Executive: Sheila Kloefkorn Offices (Local): 1 Local Headquarters: 515 E. Grant St., Suite 150, Phoenix, AZ 85004 Phone: (480) 413-2090 Website: keomarketing.com

Office Furniture

Top Executive: Adam Goodman Offices (Local / National): 1 / 3 Local Headquarters: 1400 E. Indian School Rd., Phoenix, AZ 85014 Phone: (602) 263-1110 Website: www.goodmans.com

Copenhagen Imports Copenhagen is focused on helping clients improve productivity by designing for them the perfect work environment, from executive suites to functional home offices.

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Top Executive: Erik Neilsen Offices (Local / National): 4 / 7 Local Headquarters: 1701 E. Camelback Rd., Phoenix, AZ 85016 Phone: (602) 266-8060 Website: www.copenhagenliving.com

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Looking for a way to fund business growth? Fortunately for you, not all lenders are the same.

“We consider FSW Funding a partner in our business.” —Cliff, founder of software development company, Arizona & Mexico

FSW Funding promises: • Fast funding for working capital • Flexible and innovative lines of credit • NO termination fees, contracts, or minimum volume requirements Contact us today to learn more about our financing services

602-535-5984 4530 E. Shea Blvd, Ste. 142, Phoenix, AZ 85028

www.fswfunding.com robyn@fswfunding.com




JULY 2018



Small Business Industry Leaders

IKEA In addition to the store’s extensive stock of furnishings and furniture, IKEA Business offers its customers free consultation and design services — in its store or at the customer’s place of business. Top Executive: Peter Agnefjäll Offices (Local / National): 1 / 40 Local Headquarters: 2110 IKEA Way, Tempe, AZ 85284 Phone: (888) 888-4532 Website: www.ikea.com/us

Office Supplies OPACS Inc. OPACS recognizes and values the unique identity and culture of each organization and strives to customize its programs and services to fit their needs. Expert sales team members will listen to its customers to identify the best service and value fit for that organization to maximize the productivity of its team and provide seamless procurement processes. Top Executive: Travis Kimmel Offices (Local): 1 Local Headquarters: 8340 E. Raintree Dr., Suite E, Scottsdale, AZ 85260 Phone: (602) 840-6678 Website: www.opacs.com

Wist Office Products Competitive pricing among all product categories allows Wist to achieve success that is shared with team members, communities and clients, who experience reliable business practices, sound ethics and a commitment to sustaining the environment. Top Executive: Ian and Robert Wist Offices (Local): 1 Local Headquarters: 107 W. Julie Dr., Tempe, AZ 85283 Phone: (480) 921-2900 Website: www.wist.com

Payroll Services Compass-i LLC. Compass-I was started in 2002 with the purpose of providing businesses a cost-effective and flexible escape from expensive employee leasing (PEO) arrangements. Compass-i brings all the elements to support the employment life cycle through an on-demand platform. This approach allows clients to receive and ultimately pay for only the services they need and use. Top Executive: Chip Shank Offices (Local): 1 Local Headquarters: 301 W. Warner Rd., Suite 132, Tempe, AZ 85284 Phone: (480) 893-1394 Website: www.compass-i.com

Stearns Bank: A Strong and Stable Business Bank Stearns Bank has established a reputation across the Valley as a strong and stable business bank specializing in fast and flexible commercial finance. As a top-ranked bank, we stand ready to meet all your financial needs and get the job done!

COMMERCIAL REAL ESTATE & CONSTRUCTION LOANS • Typical loans up to $10 million (larger amounts welcome) • In-house project funding & supervision by our construction finance department • Work directly with us, from plans to completion

EQUIPMENT FINANCING & LEASING • A direct source for new or used equipment


JULY 2018

Interlogic Outsourcing, Inc. (IOI) is a national and award-winning provider of cloud-based payroll and employer services offering scalable solutions to enable businesses of all sizes to achieve greater efficiencies and reduce bottom-line costs by deploying state-of-the-art technology. Top Executive: Najeeb A. Kahn Offices (Local / National): 2 / 11 Local Headquarters: 4300 N. Miller Rd., Suite 151, Scottsdale, AZ 85251 Phone: (480) 619-4110 Website: www.ioipay.com

PCS Payroll Control Systems was founded in 1995, and is a leading provider of payroll, payroll tax, time and labor, and human resources solutions. Its team of experienced payroll professionals is committed to service, quality and excellence. Top Executive: Joseph M. Reilly Jr. jlOffices (Local / National): 1 / 4 Local Headquarters: 3230 E. Broadway Rd., Suite C-130, Phoenix, AZ 85040 Phone: (480) 325-4020 Website: www.pcspay.com

At a Glance Company Name: Stearns Bank N.A. Main Office Address: 9225 E. Shea Blvd. Scottsdale, AZ 85260

NATIONWIDE PREFERRED SBA LENDER • Fast in-house approvals & processing to close your loan quickly • Flexible terms up to 25 years • No defined “credit box” • Work with the same Stearns team throughout the entire loan process

IOI Payroll Services, Inc.

Phone: (480) 314-4200 Website: www.stearnsbank.com/arizona Number of Offices in Metro Phoenix: 1

• Variety of terms available, such as no payments for 90 days • One-hour response time with personal contact all the time Stearns Bank is a $1.7-billion independent, employee-owned financial institution established in 1912, led by current owner and CEO Norm Skalicky since 1964. In 1997, Stearns Bank opened a bank in Scottsdale, Ariz., at its current location of 92nd Street and Shea Blvd. Besides Arizona, Stearns has branch locations in Minnesota, Florida and Georgia. We will get the job done for YOU!

Number of Staff: 374 (nationally), 22 (Arizona) City Nationally Headquartered: St. Cloud, MN CEO/Managing Director: Norm Skalicky, CEO No. of Years with Firm: 53 Year Established Locally: 1997 Specialties: SBA Loans, Commercial/ Construction Loans, Equipment Finance



Small Business Industry Leaders

Liquid Capital of Arizona: Financing Success Liquid Capital of Arizona provides innovative financing solutions for startup, established and middle-market businesses. Our solutions enable us to meet a broad range of businesses’ needs: • Asset Based Lending — credit facilities for well-established small and middle-market companies. • Factoring Accounts Receivable — purchase of invoices to accelerate cash receipts. • Inventory Finance Program — funding for up to 100% of inventory of all types. • Purchase Order Finance — funding for the manufacture of pre-sold products. • Export and Import Finance — all programs apply to both domestic and export business. • Credit Insurance — convenient pay-as-yougo credit insurance under our own policy. • Cash Advance Programs —for earlier-stage companies. The Liquid Capital network consists of more than 60 independently owned businesses (Principals) operating throughout the United States, Canada, Mexico, Puerto Rico and Hong Kong, sharing a common platform for credit administration and systems. The Liquid Capital Principals have funded more than $3 billion since inception.

Joel and Natalie Gottesman have been Principals in Arizona for nine years. During this time, Liquid Capital of Arizona has been a consistent leader in funding volume within the Liquid Capital network. In commenting about the success of Liquid Capital, Joel indicates that “we provide very effective working capital solutions for our clients and help them reach their full growth potential.” He also notes that his company is the funding source and that “we have our own funds deployed alongside our client’s funds.” During his career, Joel has been a practicing attorney and bank executive, with successful leadership roles and board of director experience. He earned a B.S. in Business from Miami University, Oxford, Ohio, and a Juris Doctor from the University of Minnesota School of Law. Before owning Liquid Capital of Arizona, Joel was the CAO and general counsel for First National Bank of Arizona, a $4-billion banking enterprise, and the general counsel for a $45-billion asset NYSE-listed company. He was a director and officer at Briggs and Morgan, a 150-attorney law firm in Minneapolis with a successful business law practice in banking, mergers and acquisitions, and securities law. Joel has also served on the boards of directors of several public and privately held companies and on the board of the Boys and Girls Clubs of Minneapolis & St. Paul. Liquid Capital’s clients benefit from Joel’s background, experience and contacts in law, finance and management to further their growth and potential.

Natalie and Joel Gottesman, co-owners

Co-owner Natalie Gottesman makes sure that Liquid Capital clients’ daily financing needs are handled on a timely and efficient basis. During her career, she has been a speech/language pathologist in hospital clinical settings. She has also sold residential real estate. Natalie received a B.S. in Education from Miami University and an M.A. in Speech/ Language Pathology & Audiology from Cleveland State University. Joel and Natalie take pride in being able to offer their clients creative strategies and effective financing tools to help them grow and succeed.

At a Glance Company Name: Liquid Capital of Arizona Main Office Address: 9304 E. Raintree Dr., Suite 120, Scottsdale, AZ 85260 Phone: (480) 473-2105 Website: www.az.liquidcapitalcorp.com Number of Offices in Metro Phoenix: 1 City Nationally Headquartered: Scottsdale President & Owner: Joel Gottesman No. of Years with Firm: 9 Year Established Locally: 2009 Specialties: Alternative Finance for Small and Middle-Market Companies

Liquid Capital Scottsdale Headquarter



JULY 2018



Small Business Industry Leaders

Payroll Services (cont.)

Printing / Promotions

Telecommunications / Mobile

Planet Payroll

Paramount Promotions

Cox Business

Planet Payroll’s tagline is “More than just payroll!” Aiming to be clients’ No. 1 go-to for staff-related matters, it offers human resources solutions, health insurance, retirement plans, ACA compliance and much more, as well as payroll services.

Paramount Promotions offers exhibition displays, graphics, banner stands, tabletop displays, counters, kiosks and more to help businesses highlight their brand name and services — and the expertise to make the exhibit the absolute best it can be. Paramount Promotions can help create a “Show-Stopping booth” to reach customers and prospects, all at affordable pricing.

Cox Business provides voice, data and video services for more than 330,000 small and regional businesses, including healthcare providers; K-12 and higher education; financial institutions; and federal, state and local government organizations.

Top Executive: Steven Barnett Offices (Local): 1 Local Headquarters: 711 E. Carefree Hwy., Phoenix, AZ 85085 Phone: (623) 434-3436 Website: www.planetpayroll.com

Top Executive: Christine Hohenshell Offices (Local): 1 Local Headquarters: 3440 E. Roeser Rd., Phoenix, AZ 85040 Phone: (602) 306-1300 Website: www.paramountpromotions.com

Top Executive: Ed Aaronson Offices (Local / National): n/a Local Headquarters: 1550 W. Deer Valley Rd., Phoenix, AZ 85027 Phone: (800) 526-4158 Website: www.coxbusinessaz.com


Promotional Products HP2 HP2 has the experience and ability to assure that the right promotional items, corporate awards, logo shirts or other personalized items are selected and designed properly and done to meet clients’ needs.

er guides

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Top Executive: Marc Hawkins Offices (Local): 1 Local headquarters: 2880 E. Northern Ave., Phoenix, AZ 85028 Phone: (602) 235-9099 Website: www.hp2promo.com

Nextiva’s mission is to provide reliable, unified communications products backed by a dedication to delivering amazing service to businesses across the country. Its cloud-based phone systems, fax communications and Web-based tools are designed to increase flexibility, productivity and efficiency for businesses of all sizes in a variety of industries. Top Executive: Tracy Conrad Offices (Local / National): 1 / 14 Local Headquarters: 8800 E. Chaparral Rd., Suite 300, Scottsdale, AZ 85250 Phone: (800) 983-4289 Website: www.nextiva.com

Wist Office Products: Buying ‘Local’ Has Never Been Easier When it comes to supporting the “buy local” movement, Wist Office Products is leading the way in sending the message that “when you buy from a hometown company, you benefit more than just your bottom line; you’re supporting higherpaying jobs for the people in your community and the local economy.” As a third-generation, family-owned and -operated business headquartered in Tempe, Wist Office Products boasts a long history of supplying Arizona businesses with quality office products at competitive prices. From office supplies and janitorial products to office furniture and breakroom supplies, it’s the company’s commitment to excellent customer service that allows it to compete with the bigger, box-store chains in the office supply industry. Wist’s commitment to customer service excellence has been recognized by numerous business organizations as the company has won several awards, including In Business Magazine’s Top 50 Small Business Resources (2013-2015), and Ranking Arizona’s Best Office Supply Company for

At a Glance Company Name: Wist Office Products Main Office Address: 107 W. Julie Dr., Tempe, AZ 85283 Phone: (480) 921-2900 Website: www.wist.com Number of Offices in Metro Phoenix: 1

the last nine years. It also is an annual winner of the Alfred P. Sloan Award for workplace flexibility, which demonstrates the company’s dedication to its employees. As a charter member of Local First Arizona, Wist Office Products helps to strengthen and promote local business across Arizona. With free next-day delivery and easy, online ordering, Wist Office Products offers a solution to reducing the cost of business products while exceeding your service expectations. Wist Office Products can be reached online at www.wist.com or by calling (480) 921-2900.

Number of Staff: 65 City Nationally Headquartered: Tempe, AZ CEO/Managing Director: Robert Wist, President Ian Wist, General Manager No. of Years with Firm: Robert: 42 / Ian: 30 Year Established Locally: 1955 Specialties: Office Supplies, Office Furniture, Janitorial Products, Breakroom Supplies and Exceptional Customer Service



JULY 2018


Get to know the

BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. It’s a network designed to exceed business continuity requirements and service designed to exceed expectations. That’s how we do business.

623-594-5238 coxbusinessaz.com

Internet. Data. Phone.

WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources, to financing and forecasting. All in one place. All from experts in their fields. SRP is happy to provide this free service because what’s good for business is good for all of us. Learn more at srpbizresource.com.

“Highest Customer Satisfaction with Business Electric Service in the West among Large Utilities” Salt River Project received the highest numerical score among 13 large utilities in the West in the J.D. Power 2016 Electric Utility Business Customer Satisfaction Study, based on 21,852 responses, and measures the experiences and perceptions of business customers surveyed March-November 2015. Your experiences may vary. Visit jdpower.com.

Abbey, Sandra, 47

Corrales, America, 42

Harper, Sharon, 12

Moskowitz, Steve, 38

Acevedo, Nicole, 35

D’Arezzo, James, 22

Heide, Christina, 50

Neale-May, Donovan, 15

Allazetta, David, 20

Davies, Bridget, 15

Hickey, Arnold, 26

Pierce, Tom, 26

Allford, Allan, 12

French, Camille, 26

Ho, John, 18

Poulos, Alex, 35

Anderson, Laurie W., 49

Frutkin, Jonathan, 57

Jannenga, Dr. Heidi, 11

Reid, Beau, 20

Beach, Rod, 35

Gebran, George, 16

Judiscak, Kevin M., 56

Schuh, Selina, 45

Berger, Steven N., 56

Gordillo, Ana, 16

Kehaly, Pam, 55

Schultz, Bruce, 14

Blaney, Robert, 53

Gordon, Cindy, 46

Lancaster, Ray, 14

Schultz, Marc L., 24

Bolles, Richard N., 33

Gordon, Sean, 22

Lewis, Antony, 33

Shepard, Kim, 26

Briese, Jean, 44

Gottesman, Joel, 61

Lu, May, 35

Skalicky, Norm, 60

Buss, Rick, 35

Gottesman, Natalie, 61

Lytle, Hugh H., 12

Tom, Baldwin H., 32

Chasson, Jill, 26

Gramzay, Kathleen, 48

McGovern, Marion, 13

Urman, Ronit, 43

Clisham, Patrick A., 56

Gray, Melissa, 34

McLane, Charles A., 26

Wist, Ian, 62

Cocanower, Michael, 26

Haber, Morey, 26

Michalowicz, Mike, 33

Wist, Robert, 62

Corley, Jacqueline Scott, 38

Hanke, Stacey, 66

Molina, Alfred, 35

1st Bank, 8

CO-OP Financial Services, 14

Landsea Homes, 18

Stacey Hanke Inc., 66

Accord Consulting Solutions International, 26

Coppersmith Brockelman, 26

Leader Discovery, 47

Stearns Bank, 60

Cox Business, 63

Liquid Capital of Arizona, 61

Cresa Partners, 35

LP Insurance Services, 17

Surprise Regional Chamber of Commerce, 36

Delta Dental, 4, 12

Mayo Clinic, 23

Easy Numbers Consulting, LLC, 16

Mercedes-Benz, 40

eBay, 15

Mesa Chamber of Commerce, 36, 37

Empowered Living Strategies, 45

Moonlighting.com, 13

Engelman Berger, PC, 56

Moskowitz LLP, 38

Enterprise Bank & Trust, 10, 41

MST Solutions, 35

Equality Health, 12, 67

National Association of Women Business Owners – Phoenix, 43

Adventist Health – Portland, 20 Alliance Bank of Arizona, 2 America’s Taco Shop, 42 AmeriSource HR Consulting Group, 26 APS, 7 Arizona Diamondbacks, 9 Arizona Small Business Association, 37 Arizona Technology Council, 35 Avnet, 34 Bank of Arizona, 17

eWomenNetwork Phoenix/Scottsdale, 37

Barrio Queen, 42

Facebook, 36

New Pathways for Youth, 48

BeyondTrust, 26

Flower Child, 42

Blue Cross Blue Shield of Arizona, 55, 68

FSW Funding, 59

North Phoenix Chamber of Commerce, 36

BMO Harris Bank, 25 Boardroom Salon for Men, 14

Gilbert Chamber of Commerce, 37 Global Chamber – Phoenix, 35

National Bank of Arizona, 52

Peoria Chamber of Commerce, 36 Peoria, City of, 35 Plaza Companies, 12

Business Rescue Coaching, LLC, 46

Greater Phoenix Chamber of Commerce, 36, 37

Cactus Creative, 49

Green Street Communities, 18

Quarles & Brady LLP, 5

Cadence Senior Living, 18


Radix Law, 57


Hispanic Chamber of Commerce, 37

Restaurant Atoyac, 42

CBRE Group, 18

Holmes Murphy, 20

RevAZ, 36

Chandler Chamber of Commerce, 37

Indiana University Kelley School of Business, 13

Ryan Companies US, Inc., 18

Chief Marketing Officer Council, 15 Cigna, 26 Colliers International Group Inc., 18 Condusiv Technologies, 22 Consular Corps, 35

Infusionsoft, 13 itSynergy, 26 Jive, 8 JLL, 19

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

Thelander, Vince, 35 Tiffany & Bosco, 35 Tipi, 13 TKPierce, Ltd., 26 Treadly, 40 U.S. District Court, California Northern District, 38 U.S. Egg, 16 U.S. Small Business Administration, Arizona District, 53 UnitedHealthcare, 20, 21 Wallbeds ‘n’ More, 39 WebPT, 11 Wells Fargo Bank Group, 50 Wist Office Products Company, 62

Pyramid Federal Credit Union, 14

Scottsdale Area Chamber of Commerce, 37

Snell & Wilmer, 3, 24

OUR PODCAST: Join us for interesting, informative and inspiring conversations with top local businesspeople in the Greater Phoenix area.

SRP, 64

Listen now at inbusinessphx.com.

Scrappy & Scraps Gourmet Pet Treats, 16

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Is Technology Costing You Credibility and Influence? Its use vs. abuse as a tool in communication by Stacey Hanke




JULY 2018


Special Section : 2018 Top 50 Small Business



isky Busi ness Experts share how the risks for enterp to navigate rise succe ss

JULY 2018

Tax Issues Cryptocurrenwith cy DIY Employe Training Videose Leverage Those Intangibles







of Women Business


Owners – Phoenix



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Stacey Hanke is the founder and communication expert of Stacey Hanke Inc. She is the author of Influence Redefined: Be the Leader You Were Meant to Be, Monday to Monday and Yes You Can! Everything You Need From A to Z to Influence Others to Take Action. Hanke and her team have delivered thousands of presentations and workshops for leaders of Fortune 500 companies, including Coca-Cola, Nationwide, FedEx, Kohl’s and AbbVie. staceyhankeinc.com

JULY 2018



You’re the boss, the leader, the master of business; yet your team is becoming increasingly frustrated with your over use of technology in the workplace. Employees cannot express how your behavior is challenging their willingness to act upon what you say. Influence is essential to running a successful organization and can be earned only through the development of trust, credibility and respect. It comes from a leader’s consistent actions, execution and communication. Technology is no exception. It’s time to consider your digital behaviors and how bad habits may be costing you influence in the workplace. Put Down the Phone — Your Time Is NOT More Valuable! The value of someone’s time is subjective. Sure, you may earn more than an employee, but when he dedicates countless work hours to a project, his value of the time invested grows exponentially. When that employee approaches you to discuss the ongoing status of the project, he already knows what his time is worth and expects to have your full, undivided attention. Few things are as disrespectful than a leader who interrupts a conversation with an employee to answer the phone — no matter how important the call may be. Tip: When conversing with employees one-on-one, in the hallway or a meeting, put down the phone. Make certain your ringer is silenced and your phone isn’t visible during conversations. Communicate your desire to actively listen by giving them your undivided attention. Hang Up the Email. Pick Up the Phone. Few things frustrate people like back-and-forth emails about something that could have been resolved in minutes on the phone. Employees are likely overwhelmed in their workday, battling through a barrage of noise and distractions. They rely on their leader to be clear and concise in all communication. Since emails lack tone, inflection and body language, they are easily misconstrued. What is said by the writer isn’t always accurately interpreted by the reader. Tip: Next time you find yourself writing paragraphs or playing email ping-pong, just pick up the phone and resolve the conversation directly. You’ll be surprised the time and confusion you’ll save. Stop Being a Texting Tycoon. I once worked with a leader who engaged with his employees daily, inquiring about their day and how he could help. His intentions were great and would have worked except for one little problem — he did it all via text messaging. Think about that. Employees are trying to talk with clients on the phone, answer colleague emails, attend meetings and all while their smartphones are blowing up with text messages from their leader. Because the messages came from their boss, they felt pressured to respond immediately, often interrupting important tasks and conversations requiring their utmost

concentration. Worse still, when the boss would visit employees face to face, they questioned his motives for doing so. Text messages are great for confirming appointments, sharing phone numbers or quick data points. They should not be used as a method of engaging in meaningful communication. Tip: Relationships are developed when leaders invest themselves in conversation and connect directly with their employees. Get out of the office, walk over to your employee workspaces and engage face to face. If your employee works virtually, set up a teleconference so you can see each other’s facial expressions and make necessary eye connection. Stop Cyberstalking. Your employees are hard at work tackling the priorities you’ve outlined for them; they may not always be available at a moment’s notice. Frustrating behavior occurs when the leader is unsuccessful at reaching the employee in a first attempt and winds up leaving no digital stone unturned trying to connect. If you’ve called your employee and left a voicemail message, she will get it and return your call when the time is right. If you’ve emailed her, she will respond. If you’ve texted her, she will text back. You’re the boss and her priority; just give her the time necessary to respond. Calling to leave a message, following up with an email on the subject, then texting to say you’ve called and emailed is an abuse of technology sure to irritate those on the receiving end. Tip: Choose one method to contact employees when you need their immediate attention. If walking to their desk isn’t an option, either text, email or call. Don’t do all three. Remain consistent in your choice of tools so employees will come to trust your method of contacting them when an immediate need arises. Technology is an excellent resource for everyone and, when used appropriately, can support your efforts in establishing influence in the workplace. When technology is abused, it can cost you the influence and create an atmosphere of frustration and unwillingness among employees. Be mindful of how you use technology and the impact it may have on others.

Research continues to build that shows multitasking to diminish productivity. The mental juggling of multitasking performing multiple tasks simultaneously or in rapid succession, or switching from one task to another — incurs a loss of time as the brain switches gears, as well as potential catastrophic overload. apa.org/research/action/multitask.aspx

Embracing culture. Empowering health. Equality Health is the nation’s leading integrated health delivery system focused solely on improving care for diverse communities through culturally sensitive providers and programs that improve access, quality, and trust.

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