November 2015 Issue of In Business Magazine

NOV. 2015

Special Section: Annual Business Owner’s Lending Guide

Arizona Com

ACA Bring

Business?

NOV. 2010

merce: Will the

5

YEARS OF IN BUSINESS MAGAZINE

Repairing Our

Business

Strategies Leverage your business’s own assets to invest and grow

Work Force Will we get it right this time

?

By the Numb ers Business Calendar Power Lunc h

This Issue

Scottsdale Area Chamber of Commerce Arizona Small Business Associa tion

InBusiness_111

0.indd 1

11/1/10 10:43 AM

Crowdfunding: the Good, the Bad, the Legal

Attitudes

Impact Multicultural

Marketing

Manage Energy not Engagement

THIS ISSUE Tempe Chamber of Commerce Arizona Technology Council

$4.95 INBUSINESSMAG.COM

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NOVEMBER 2015

COVER STORY

20

Business Strategies

Leading business minds discuss with In Business Magazine editor RaeAnne Marsh strategies and opportunities available to businesses to leverage their existing resources — capital, business niche, etc. — to invest in themselves to grow.

FEATURE

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PARTNER SECTIONS TEMPE CHAMBER

Manage Energy, Not Engagement

Brady Wilson discusses why and how executives should practice leadership with a broader perspective on employee “engagement.”

ADVANTAGE Winter 2O15 • tempechamber.org

2015 State of the City Address with Mayor Mitchell

DEPARTMENTS

By David E. Long, Principal, EdwardJones At Edward Jones, we believe strongly in the future of Tempe. We came here to build our regional campus in 2001, and as we have grown, so has this city.

Mayor Mark Mitchell

The 2015 State of the City Address with Mayor Mitchell will take place on Tuesday, Nov. 10, from 7:30 to 9 a.m. at the Doubletree by Hilton Tempe-Phoenix. Tickets are $50 for Tempe Chamber members and $70 for non-members.

The event includes breakfast, and the public

We chose Tempe, in part, because of its inviting business climate. Tempe city officials, Arizona State University officials and the Tempe Chamber of Commerce deserve credit for working together in a spirit of cooperation to foster a vital business community that supports Tempe is Perfect Fit for Edward Jones the economic well-being of our city.

Over the years, Edward Jones has set down roots in Tempe and thrived

State of the City is presented by:

across the United States. Our firm has identified tremendous potential for us to serve more individual investors in the Tempe-Phoenix metropolitan area. We have begun to intensively grow our number of branch offices in Maricopa and Pinal counties.

Platinum sponsor:

As we serve individual investors face to face, our goal here in Tempe is also to be known as a great place to work — while we help the Valley become one of the greatest places to live.

Based upon feedback from our associates, we have been named one of the best places to work by the Phoenix Business Journal for the past 11 years. The Arizona Republic has named us a Top Company to Work for in Arizona in the large company category.

Based upon feedback from our clients, Edward Jones ranked highest in

Gold sponsors: CenturyLink, Silicon Valley Bank, Wentworth Property Company

a tie in investor satisfaction with full service brokerage firms, according to the J.D. Power 2015 Full Service Investor Satisfaction Study.

We are proud of what we have achieved in Tempe and proud of what our city has achieved. As good citizens, we try to lead by example —

Silver sponsors: SRP, State Farm Insurance, Tempe Tourism Office Copper sponsors: American Airlines, APS, ASU University Affairs, Douglas Wilson Companies, First Transit, Opus Group, PCL, Construction/ Gannett Fleming, Southwest Airlines Co., Southwest Gas Corporation Print sponsor: AlphaGraphics at Elliot and Kyrene

volunteering time and energy to support causes such as Junior Achievement and the United Way. Edward Jones, a FORTUNE 500 firm, provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm’s business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm’s 13,000-plus financial advisors work directly with nearly 7 million clients.

Edward Jones, which ranked No. 6 on FORTUNE magazine’s “100 Best Companies to Work for 2015,” is headquartered in St. Louis. The Edward Jones website is located at www.edwardjones.com, and its recruiting website is www.careers.edwardjones.com.

Member SIPC

T E M P E C H A M B E R A D VA N TA G E

Te m p e C h a m b e r. o r g

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at the ASU Research Park. We started 14 years ago, rattling around in a building that seemed too big for just 64 home-office associates. Now, we are filled to capacity with more than 12 times our original number.

Our growth also occurs in our network of nearly 14,000 financial advisors

is invited to attend. Learn more and register at www.tempechamber.org.

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Tempe Chamber of Commerce

Arizona Technology Report Winter 2O15 aztechcouncil.org

Arizona Technology Council: The Voice of the Technology Industry

In This Issue Plans for Public Policy…Pg. 2 Guide offers ways for lawmakers to support tech in 2016

Ready for Their Close-up…Pg. 4 Arizona tech companies featured in new video series

Venture Madness…Pg. 6 Venture Madness tops Invest Southwest agenda

Management and Staff Steven G. Zylstra President + CEO

Leigh Goldstein Vice President, Operations + Events

Anne Rody Director, Finance + Administration

Merry Lake Merrell Director, Marketing + Communication

Deborah Zack Senior Director, Membership Services

Brian Krupski Director of Membership Services

Melissa Craven Executive Assistant to President + CEO

Alex Rodriguez Vice President, Southern Arizona Regional Office, Tucson

Don Rodriguez Editor

Ron Schott Executive Emeritus, Phoenix Office

Don Ruedy Executive Emeritus, Tucson Office

Justin Williams Executive Emeritus, Tucson Office

Jeremy Babendure, Ph.D. Executive Director, Arizona SciTech Festival

Three times a year we at the Arizona Technology Council get the opportunity to share with In Business readers new information and highlights of our organization’s activities. It’s never a challenge to find topics that give a glimpse of not only what we do but why our state is a leader in science and technology.

Our involvement also is part of the reason we’ve drawn more than 800 member companies — and counting. And our reports just scratch the surface on what’s happening.

Keep in mind, the Council represents just a portion of what makes Arizona so great. But greatness likely doesn’t come to mind for anyone keeping up with news reports about the state: the K-12 education system struggles, public policy can allow biases against anyone not born here or with different lifestyles, the overall job market hasn’t recovered as quickly as we would like.

With such a negative reputation among those who know Arizona only through such headlines, Gov. Doug Ducey has charged the Arizona Commerce Authority with a coordinated effort to improve Arizona’s brand. I definitely don’t dismiss the challenges that Arizona faces. But as we beat ourselves up over shortcomings, we ignore what we already have.

The governor is to be commended for moving to change this ill-gotten generalization. Arizona offers so much, and it’s obvious by just taking a look around. There’s the natural beauty from the Grand Canyon to Sedona and the man-made wonders from Roosevelt Dam to Biosphere II. While other states wrestle with crumbling infrastructures and dwindling water supplies, we have the Central Arizona Project and many new roads to get around on. And don’t forget our people, who offer a rich diversity of cultures and talent.

Steven G. Zylstra, President and CEO, Arizona Technology Council

The governor recently honored our first responders as heroes. In addition to those people who put their lives on the line for us all, we actually are surrounded by heroes every day. Here are just some examples of where they can be found: • State universities: These are more than just places that grant degrees. Who would imagine that a student at The University Arizona would discover water flows on Mars? That is one result of the space exploration that constantly involves our university researchers.

• World-class healthcare for children: If your child’s health has ever taken a turn for the worse, you don’t have to make the trek to Los Angeles for answers. Phoenix Children’s Hospital and Cardon Children’s Medical Center are right here to help.

Every parent of every child saved launches his own branding campaign for the hospitals — and the state.

• TGen: And if the children’s hospitals don’t have the solution today, teams at the Translational Genomics Research Institute are working on it. Through research on its own and special partnerships, TGen’s impact is global.

So before you buy into what the naysayers offer, take stock of what Arizona really offers its residents and the world. Be proactive like Gov. Ducey and work within your own networks to help change poor opinions about our state. We all deserve to be proud of Arizona.

Who We Are

The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office

Tucson Office

2800 N. Central Ave., Suite 1920 Phoenix, AZ 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, AZ 85747 Phone: 520-382-3281 Fax: 520-382-3299 tucson@aztechcouncil.org

ARIZONA TECHNOLOGY REPORT

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Arizona Technology Council

SPECIAL SECTION

10

Feedback

Noted business leaders Dennis Cornelius, Joel Gottesman and Liesl Harder Kielp respond to In Business Magazine’s burning business question of the month.

11

Briefs

“Cyber Security Hire Platform,” “Feedback Tool,” “Anywhere Communication App,” “Niche Concept and Sports Name Drive Business Launch” and “Arizona Business & Education Showcased in Film Series”

12

By the Numbers

Study focuses on emerging issues and differing attitudes in the C-suites around multicultural marketing.

Whether you’re a part of a start-up, emerging or well-established company in Arizona, we offer resources designed

We exist to help science and technology companies of all sizes and stages succeed. By serving as the principal point of connection,

for you to gain insight, education, and connections. In addition to our networking opportunities, public policy support and professional development

the Arizona Technology Council

THE RESOURCE GUIDE TO BUSINESS FINANCING 2015/2016

programs, our members receive

can help you build global

exclusive discounts on products and

partnerships to grow locally, get your innovations noticed and stay ahead of the curve.

Matthew Feeney, chairman of Snell & Wilmer, introduces the “Finance” issue.

President’s Message

aztechcouncil.org

connect + grow

Guest Editor

services and are provided numerous opportunities to get the word out about their unique value.

Sponsored by

13

DEPARTMENTS

16

Healthcare

“Go! Gargle!” “Expanding Delivery” and “Domestic Medical Travel as Healthcare Cost Solution”

18

Legal

With Arizona’s new crowdfunding law, companies should weigh the short- and long-term pros and cons of this financing opportunity.

27

Books

New releases give fresh insights on business thinking.

28

Nonprofit

Finding the right fundraising talent may be easier than nonprofits think — with the right training.

32

Assets

2016 Mercedes-Benz GLE 450 AMG Coupe PLUS: Coffee machines are a perk to perk up the office.

34

Power Lunch

FnB PLUS: Fish is not only on the menu, it’s part of the décor at some local restaurants.

66

Roundtable

Many small-business owners — women in particular — are under-informed about financial resources.

From the Top

Take a fresh look and watch us

Jeffrey Martin leads the Yulex Corporation in creating an industry for natural, renewable rubber.

grow with you as we continue to offer you membership benefits that will bring you closer to meeting your business goals.

take a fresh look

@aztechcouncil

aztechcouncil

602.343.8324

Major Banks Community Banks Credit Unions Lending Institutions & Resources

aztechcouncil.org

2800 n. central avenue • suite 1920 • phoenix, arizona 85004

NOV. 2015

INBUSINESSMAG.COM

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Business Owner’s Lending Guide 2015/2016

The annual resources and contacts guide

14

Technology

“Model Behavior: 3-D Printing Is Building”

ON THE AGENDA

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Spotlight

Governor’s Celebration of Innovation — Arizona Technology Council Guest Editor Economic Symposium — In Business Magazine

30

Calendar

Business events throughout the Valley

NOV. 20 1 5

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INBUSINESSMAG.COM

A proclamation by Phoenix Mayor Greg Stanton, being presented to In Business Magazine on the occasion of its 5th anniversary of publication, states, “Dedicated to informing, educating and bringing together the area business community, In Business Magazine has, since November 2010, been a true economic development leader and continues to work toward making Phoenix the place to do business.”

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Nov. 2015 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.

GROWING YOUR BUSINESS? We’re here for you.

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

When you’re looking for a commercial real estate loan, choose a local lender with a personalized approach.

• No application fees or prepayment penalties 1 • Purchase or refinance up to $5,000,000 2 • Owner or non-owner-occupied 3

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

• Competitive fixed rates • Terms of 5, 10 or 15 years • Amortizations of 15 or 20 years

Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

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Nancy Sanders, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

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Mark Hiegel, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com

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Mary Ann Miller, 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

(480) 678-1366 OurTownAZ.com

Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

INBUSINESSMAG.COM

I N FAMI LY BUSI N ESS, FAMI LY ALWAYS COMES BEFORE BUSI N ESS.

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Nov. 2015

VOL. 6, NO. 10

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers

Jennifer Anderson Laura Carabello Mike Hunter Keith Parsons Kaleigh Shufeldt Sherri Slayton Richard Tollefson Kevin J. Walsh Brady Wilson

ADVERTISING

Operations Louise Ferrari

Business Development

Louise Ferrari Craig Jeffries Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore Brandon Short

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

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

Post Your Local Jobs at inbusinessmag.com Read by those vested in business here, In Business Magazine and inbusinessmag.com have become the resource for business owners and executives in the Valley and beyond.

Now, business owners can post their open positions in a place where they are guaranteed to be seen by top candidates.

Visit inbusinessmag.com now to post your open positions!

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NOV. 2015

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Donna C. Mitchell, CPA

Office Manager Brittany Longfield

Accounting Manager Todd Juhl

Corporate Offices 4455 E. Camelback Road

Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com

www.inmediacompany.com Vol. 6, No. 10. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope.

InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. Š 2015 InMedia Company, LLC. All rights reserved.

No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

INBUSINESSMAG.COM

MATTHEW FEENEY, SNELL & WILMER

Paying Your Business Forward

Matthew Feeney is chairman of Snell & Wilmer, a full-service business law firm with more than 400 attorneys practicing in nine locations throughout the western United States and in Mexico. Feeney’s practice is concentrated in the areas of mergers and acquisitions, securities offerings, SEC reporting and compliance, and corporate governance matters, including advising corporate boards and board committees. He earned his Bachelor of Arts, magna cum laude, from the University of Notre Dame and his law degree, magna cum laude, from Notre Dame Law School.

Arizona is recognized as a key state for entrepreneurship and business startups, but our economic vitality also needs those small businesses to scale and grow. There are resources available to the business community to assist companies in reaching that higher level. But businesses can look inward to leverage their resources and invest in themselves to grow business, opportunity and profits.

In the early stages of any entrepreneurial venture, the natural focus is on attracting talent, acquiring customers and generating revenue. With limited resources to confront a seemingly endless stream of competitive threats, business owners often take a reactive approach to the consumption of professional services (e.g., engaging counsel only when something goes wrong). It’s almost always more expensive and time-consuming to address an issue after the fact, and, in certain situations, what’s broken can’t be fixed. Since a little knowledge can go a long way in avoiding costly, and potentially fatal, mistakes, business owners should also invest in their own continuing education. Through initiatives like our firm’s monthly Emerging Business Seminar Series™, we work to empower clients so they understand and can proactively address the challenges that may confront their businesses.

For the small to mid-sized business, concentrating on cash flow is the staple of day-to-day operations. This month’s cover story, “Business Investments: Using Your Own Money to Buy Success,” puts the focus on creating value into the future — whether the goal is cashing out for retirement or creating a business for the ages. In Business Magazine editor RaeAnne Marsh explores strategies and opportunities, with input from our business community’s leading professionals to demonstrate how this investment can grow Arizona’s economy.

Creating a sustainable, innovative and high-performing organizational culture is a desired end-game, but its achievement eludes many in spite of well-intentioned effort. Brady Wilson explores factors that aggravate what he terms the “engagement paradox” and how businesses can reach the desired goal in this issue’s “Management” feature. And addressing an aspect of healthcare, which continues to be a hot topic in employers’ benefits planning, Laura Carabello discusses the growth of domestic medical travel for surgical procedures or specific treatment.

Focused on helping strengthen the local business community, In Business Magazine has updated its “Business Lending Guide” to provide businesses with the Valley’s most comprehensive listing of local lenders and resources to assist them in finding lending opportunities.

This issue of In Business Magazine offers its business audience information on a wide range of topics, from businesses’ innovative application of new technology to data on how marketers are allocating resources for ethnic demographics. I’m pleased to help bring you this October issue of In Business Magazine, and hope you find it an informative read.

Sincerely,

Matthew Feeney Chairman Snell & Wilmer

Business Focus on Growth We call In Business Magazine “the magazine for business success,” and for good reason. Reading up on how to improve, enrich and empower business is a big part of our mission. In this issue, the cover story looks at ways business owners can use their business’s own successes and profitability to grow. After all, we all want our companies to flourish and to result in revenues that give rise to business growth; through the advice of many local experts, we look at how this can be achieved and what to focus on to get there. If nothing else, it is a stark reminder of what many of us, as business owners, should be directing ourselves to focus on.

We want to thank Matthew Feeney for leading this issue and sharing his expertise in helping businesses grow, as well as for his ongoing commitment to helping sustain an environment for our community that makes the Valley an attractive place in which to live and do business. I hope this issue will enlighten business owners, large and small, to engage themselves and key resources to better their business and take direction to growing their company and fulfilling their goals. —Rick McCartney, Publisher

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

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

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VALLEY LEADERS SOUND OFF

Q:

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

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

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What strategy have you followed in using your business’s resources or capital to grow, or what advice do you have for companies with capital to do so?

DENNIS CORNELIUS

JOEL GOTTESMAN

LIESL HARDER KIELP

Managing Partner CKS Advisors, LLC Sector: Finance

President Liquid Capital of Arizona Sector: Finance

Founder and CEO AguaSAC LLC Sector: Manufacturing

Business owners have many new choices as they consider the best alternative to finance growth. With restrictive changes in bank overregulation, many creative alternatives have filled the void.

One that we are seeing more often is the royalty method of raising capital for fast-growing companies. Royalty-based growth capital provides capital in exchange for a fixed percentage of a company’s future revenue (a “royalty”). The company pays the royalty monthly until its total payments reach a cap, expressed as a multiple of the investment amount.

Benefits of Royalty-Based Growth Capital include no fixed or minimum payment requirements, as monthly payments flex with the growth (or contraction) of the business; it generally does not require a personal guarantee; and it allows a company to secure significantly larger amounts of growth capital than would typically be available from other debt sources. It preserves ownership; because royalty-based growth capital is a form of debt, there is no significant equity dilution, nor is there a time-consuming valuation process. And success is not dependent on the sale of the business or other liquidity event.

In providing alternative financing for businesses, we work with startups to middle-market companies. A recurring challenge we see is how a business can fund new growth opportunities. If new financing is not an option, the question often becomes how a business can make the best use of its existing capital and resources.

Here are a few strategies our experience has shown to be effective: Work with suppliers to get longer payment terms; this is an often overlooked funding source, and suppliers may reward good customers with better payment terms.

Offer your customers a discount for early payment on outstanding invoices.

Rather than fund the startup costs of a new product or service, share resources, expertise and profits with a joint venture partner that can shoulder some of the ramp-up expenses. Leverage existing assets, including licensing of intellectual property that may not be mission critical; this can generate a revenue stream to fund other projects. Lease new equipment to preserve cash, and refinance owned equipment that may have been purchased with cash.

AguaSAC LLC self-funded its launch, a strategy I believe helps the business owner understand all costs associated with operating a business and is incentive to keep those costs contained.

In the beginning, AguaSAC outsourced all manufacturing operations. It was a lot more expensive, but it allowed us to see where we might experience pitfalls. Going into our own production facility could have been an expensive disaster had we not outsourced first.

A grant from the Arizona Commerce Authority gave us capital to install our own production facility. This required very little work on our part as we were connected to the group awarding the funds, but I believe a business can lose ground spending time writing grant requests or making pitches instead of pursuing sales to organically grow its business.

Now, the production facility has reduced our product costs exponentially and streamlined the overall operation.

We have capital assets that have allowed us to apply for an SBA loan and, through new retail sales channels, we’ll be able to purchase more productive equipment to meet and exceed these new sales opportunities.

CKS Advisors, LLC cksadvisors.com Dennis Cornelius is a managing partner at CKS Advisors, LLC, which offers businesses a comprehensive business analysis and audit, strategic financial investments, organizational development and restructuring, and more. In his 40 years’ experience in the financial services industry, nationally and internationally, he has advised clients on both sell-side and buy-side engagements in various industries.

Liquid Capital of Arizona az.liquidcapitalcorp.com Joel Gottesman owns Liquid Capital of Arizona, which specializes in alternative finance, including asset-based lending, factoring, export finance, inventory finance and purchase order finance. In his career, Gottesman has been a successful business attorney, specializing in M&A and banking law; a bank executive; and a small-business owner. He authored “Field Guide to Small Business Finance” for the Arizona Small Business Association, which was published in the September 2015 issue of In Business Magazine.

AguaSAC LLC aguasac.com Liesl Harder Kielp founded AguaSAC LLC to provide competitive employment opportunities for adults with developmental disabilities through the packaging and distribution of quality artesian spring water in a unique and Bisphenol A-free pouch. In addition to her innovative design that gives the pouch structure and stability, Kielp also created a filling line that enables AguaSAC to achieve the similar speeds as bottling lines.

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

QUICK AND TO THE POINT

BYTES

BY MIKE HUNTER

Cyber Security Hire Platform Cybrary launched its Cyber Security Job Platform. This talent platform is designed to meet the demand for skilled cyber security professionals, which is growing four times faster than the overall IT job market and 12 times faster than the total labor market. Currently, there are more than a million open job postings for cyber security positions around the world. cybrary.it

Feedback Tool Hinted, a people analytics app, has launched and is available in the Apple App Store. This new social network mobile application enables small teams or individuals to provide peers with semi-anonymous feedback. The tool is gamified and sessions last less than a minute. The app is used for hiring, team composition, and learning and development decisions. The Hinted App is available for download on iPhone and iPad for free. hinted.com

Anywhere Communication App Webchat, social media channels and mobile communications are quickly taking over the role of traditional telephone contact in the field of customer service. In order to enable organizations to provide the best-possible service for their customers via all channels of communication, European market leader Workstreampeople is launching a new version of Anywhere365. This platform offers intelligent communication and dialogue management tools, on-site or from the cloud, for organizations of any size. workstreampeople.com/Anywhere365

Niche Concept and Sports Name Drive Business Launch

With the help of the National Football League as an economic development resource, Arizona Cardinals’ long snapper Mike Leach and his wife, Julie, recently entered the Greater Phoenix area’s entrepreneurial mix with Potty Pals, a multi-faceted system to help parents potty train their toddlers.

The Leaches initially came up with the concept for Potty Pals in 2011 while they were potty training their second child. They couldn’t find a comprehensive kit on the market similar to what they had in mind that not only reinforced positive behavior but also made potty training less daunting. This led them to develop their own system, which was the initial idea for Potty Pals.

Armed with information from the 2014 NFL Consumer Products Boot Camp workshops on building a business in consumer products, from protecting intellectual property to sales and promotion — “A lot of it was geared toward how to get an NFL license for your product,” Leach relates, explaining the NFL has been making an effort in the past 10 years to make opportunities for players after they retire from the playing field, including executive programs with such prestigious MBA schools as Harvard and Wharton — and the response to their prototype they had brought, they moved forward on their idea. “The positive feedback we received at the NFL Consumer Products Boot Camp is really what encouraged us to formally develop the Potty Pals concept,” says Mike Leach.

“It took three years to get to the prototype,” says Julie Leach, who has an MBA and a business background in sales, relating they had talked to business and financial advisors as to the product’s viability. The best advice, relates Julie, came from former New York Giants linebacker Carl Banks, who has established a successful clothing line. In addition to offering help in getting word out about their product, “He told us to launch while Mike was still playing,” she says.

Crediting input from their children, now elementary school-aged, the Leaches explain they developed four characters, each with a different personality so children can choose the one they relate to best. Says Julie, “It was fun for them to see us work on the project and bring it to life — and be part of the process.”

Funding the enterprise themselves, the Leaches also built a community benefit into their business —RaeAnne Marsh plan and donate 10 percent of the proceeds to Phoenix Children’s Hospital.

Potty Pals pottypals.com

VISUALIZE

Arizona Business & Education Showcased in Film Series A series of 10 videos aimed at promoting the Arizona technology industry and education throughout the U.S. as well as globally is being produced by MediaTHP, a local media/film production company, as part of on-going efforts by the local government to promote a favorable business climate in Arizona to external parties. The series focuses on specific topics related to the technology industry and education, working with tech organizations from the seven sectors supported by the Arizona Technology Council, and also includes interviews with Sandra Watson, president and CEO of the Arizona Commerce Authority, Eileen Klein, president of the Arizona Photo courtesy of Potty Pals

Board of Regents, plus researchers and their students at Arizona State University, The University of Arizona and Northern Arizona University. vimeo.com/album/3613681

Making a Play for Business The NFL Player Engagement Department’s first Consumer Products Boot Camp was held in 2014. Now annual, the program is open to current and former NFL players and is presented under the guidance of University of Maryland Robert H. Smith School of Business faculty.

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METRICS & MEASUREMENTS

Multicultural Marketing and a Changing Mainstream

Marketers and CEOs differ on importance of multicultural engagement strategies

by Mike Hunter

MULTICULTURAL BUDGET Specific to investments into multicultural programs, marketers indicate that: • Twenty percent invest in excess of 15 percent of overall marketing budgets to engaging with multicultural markets; 28 percent spend less than 5 percent.

• Fifty-three percent of marketers believe their investment into the multicultural market will increase going forward; 15 percent believe this increase will be significant; only 2 percent anticipate a decrease in investment.

• Twenty percent of marketers felt that multicultural strategies were mandatory and unanimously embraced across the organization, and just over one in four believed that the multicultural market was mission critical for the organization.

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Without doubt, the multicultural market in the United States is an increasingly powerful consumer. Research by Geoscape, the leader in business intelligence across the multicultural market, shows Hispanics currently represent 18 percent of American households but were responsible for nearly half of the growth in consumer spending from 2013 to 2014. Between Asian-American and Hispanic markets, the groups accounted for two-thirds of the total economic spending growth.

According to Geoscape, the Asian-American, AfricanAmerican and Hispanic groups, combined, will grow to nearly 130 million by the year 2020. Furthermore, the non-Hispanic white population will become the minority, dropping below 50 percent of the population by 2042.

So multicultural marketing strategies will become increasingly important to brands looking to engage in a more culturally relevant and personalized manner. But a new Chief Marketing Officer Council study reveals that, despite rapid population growth and strong support for initiatives within marketing circles, CEO and board support falls far short, failing to assist marketers’ ability to prioritize and fully fund their efforts.

A new poll from the CMO Council and Geoscape entitled “Activating the New American Mainstream” reveals that half of the 150 North America-based senior marketing executives surveyed feel there is some level of support for multicultural engagement strategies from the senior levels of the organization. While 67 percent of these executives admit the CMO has a high level of buy-in and support for multicultural efforts, 55 percent admit that the CEO does not share that opinion, failing to fully support initiatives.

This lack of top-level support translates into a de-prioritization of multicultural engagement programs as more than half (51 percent) of marketers admit that there are simply too many competing priorities.

For those marketers who have deployed multicultural marketing strategies, the operational approach is one that fails to separate initiatives into significant segments. Only 16 percent of marketers are separating marketing initiatives for specific ethnic groups, a practice that would allow for a deeper level of engagement thanks to relevant communications based on cultural behavioral patterns and insights.

“By understanding cultural nuances and marketing in a proactive and Budgeting for Multicultural Marketing data-driven manner, marketers are Approximate percentage How the company determines the amount of marketing budget to positioned to grow ROI … however, none of marketing budget allocate to multicultural marketing initiatives: of this happens overnight,” observes allocated to multicultural Percent of marketing initiatives: César M. Melgoza, founder and CEO Respondents Basis of Geoscape. “Targeting consumers Percent of Percent of 53% What is required to reach the company’s growth goals Respondents Budget without understanding their unique 49% ROI cultural behaviors and preferences 27% 5% Percentage of multicultural consumers considered a fit risks growth optimization among the 48% 27% 5–10% for the company’s products or services consumer groups that quarterly and 22% 11–15% 23% Percentage of anticipated future growth for the company annual budgets and success can hinge.”

9% 16–25% 6% Competitor spending on multicultural Notes Liz Miller, senior vice president of marketing with the CMO Council, 14% 26% 8% Other “Multicultural marketing strategies must The manner of the company’s operational approach to the new mainstream consumer: move away from the niche campaign Percent of mindset and become an engrained Respondents Characterization of Deployment Efforts part of any personalized customer 54% Total market approach, where all cultures are integrated with pooled resources experience strategy.” Pointing out it is no longer a scenario of replacing images One multicultural marketing initiative that combines Hispanic, Asian-American and African17% American, with resources and staff separate from general marketing efforts or localizing content into a different Separate marketing initiatives for Hispanic, Asian-American and African-American, with language, she says, “This is about 9% separate resources and staff for each truly understanding the nuances of 7% Hispanic marketing initiative with separate the customer, including any culturally distinct behaviors and buying patterns 6% Competitor spending on multicultural that can and must alter the way our 8% Other resources and staff brands reach and engage.”

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Online poll of 150 senior marketing executives — approximately 36 percent hail from B2B organizations, 29 percent are from strictly B2C organization, and 36 percent are from hybrid organizations; 43 percent hail from organizations with revenues in excess of U.S. $1 billion.

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Chief Marketing Officer Council cmocouncil.org Geoscape geoscape.com

The annual CMO Summit taking place December 7–8 in Napa, Calif., will focus on the theme “CMO Rising,” and will cover numerous topics with an eye toward reshaping the role through talent, technology and transformation. cmosummit.org

MINDING THEIR BUSINESS

Jeffrey Martin: Creating an Industry for Natural, Renewable Rubber The Yulex Corporation is leading the way in a new industry of specialty, purified, environmentally friendly rubbers

by Kaleigh Shufeldt Fifteen years ago, Jeffrey Martin co-founded the Yulex Corporation with Dan Swiger after learning about a technology licensed from the United States Department of Agriculture to extract natural rubber latex from the guayule plant. Yulex’s mission is “to protect and improve the planet and its people by providing pure and improved plant-based products, which promote the sustainable production of materials and energy,” Martin explains. A material science engineer and part of two successful medical device startups, Martin says Yulex and its mission is “right up my alley.”

Rubber is everywhere, he points out. People use rubber on a daily basis — as they stretch on a yoga mat, lace up their running shoes, play fetch with their dog, snap on latex gloves.

These everyday products touch our skin, yet most individuals don’t know what is in rubber or how it’s made. More than 40,000 rubber products are derived from petroleum-based and toxic sources, says Martin, the company’s president and CEO. Southeast Asia is currently the main exporter of rubber.

Martin is looking to change that by building a natural rubber industry in the United States in an environmentally conscious manner through the use of the guayule plant. Guayule, a natural source of rubber indigenous to the Southwest United States and Mexico, is a wild crop. In order to build the industry, Martin explains, Yulex has had to domesticate the wild crop into a commercial crop.

Yulex started as a small pilot plant, renting office space and growing the guayule crop on an experimental basis. “Five years ago, we scaled up and built the first manufacturing facility,” Martin explains. The company expanded to a five-acre purification plant in Chandler due to a demand for premium, highly purified rubber by consumer product companies.

Acknowledging the importance of believing in the business and his team to successfully meet the challenges of growing the company, Martin says, “Building a successful business takes a broad vision, but the willingness to take thousands of small steps to get there.”

Once Yulex demonstrated the benefit of using sustainable and safe rubber, Martin says customers embraced the new products. After a crop is grown, Yulex extracts and purifies the rubber, ending with finished raw materials, Martin explains.

Yulex then sells the material to companies to develop new products, though Yulex’s hand in the manufacturing doesn’t stop there. “Our scientists and engineers will work with the companies to help create prototypes, meet product specifications and help with market research,” Martin says.

“We work all the way through to the consumers.” This unique model was needed to accelerate customer adoption of these products and expand the company.

Martin believes the “tipping point in the industry will be the breakthrough of our hybrid technology,” an advancement called genome-assisted breeding technology. Molecular breeding for plants is a recent advancement, Martin notes, explaining this helps domesticate wild crops to ensure consistency — which is necessary in a crop’s commercialization.

“The real secret to success is the agriculture,” Martin says. It takes time to provide commercial yields. An initial guayule crop will grow in two years; with a root system in place, it then takes one year for the plants to regrow. Once there is a high yield of rubber per acre through molecular breeding, Martin is betting the industry will follow.

Yulex is a small company that focuses on consumer products, which is only 30 percent of the rubber market. Larger companies concentrate on products for the transportation industry, such as rubber for tires. Martin’s vision for Yulex is to perfect and then provide the hybrid technology to manufacturers. Multiple companies needs to be working to create renewable rubber materials, Martin says. Once they have the technology, these larger companies will add to the industry and produce guayule rubber-based products.

The Arizona climate is the perfect place to build this industry, Martin says. The guayule plant grows best in an arid climate, which makes our state the perfect place to develop the agriculture, while the support and infrastructure in Arizona has also helped launch Yulex. Yulex was supported in its early stages by the University of Arizona’s Maricopa Agricultural Center and the U.S. Arid Land Agricultural Research Center, a local division of the USDA in Maricopa. This new industry is “all happening within the State of Arizona,” Martin says.

Arizona has the potential to be the main hub for the natural rubber industry, creating agricultural, scientific and engineering jobs, Martin believes, although he sees this growth requiring a shared vision from industry, academic, federal and state sectors. Yulex is recognized as a leader in the industry and an important contributor to the state’s economy, and has amassed numerous awards that include the Fast Lane Award from the Arizona BioIndustry Association in 2013 and the Green Innovator of the Year Award from the Arizona Technology Council in 2009 and 2011.

THE YULEX CORPORATION • The Yulex Corporation has 30 full-time employees based in Chandler, Ariz., and 10 employees — molecular breeders and scientists — based out of San Diego.

• Yulex derived rubber from the bark of the guayule plant by grinding up the branches to release intact rubber particles and creating a solvent. When placed in a centrifuge, the solvent separated from the rubber particles. The rubber portion is then purified to get a finished raw material.

• This year, “The Digest” ranked Yulex number 5 in the 50 Hottest Smaller Companies in the Advanced Bioeconomy, number 28 in the 30 Hottest Companies in renewable Bioeconomy and number 23 in the 35 Hottest Companies in Feedstock Development & Aggregation in the Advanced Bioeconomy.

Yulex Corporation yulex.com

The Guayule plant (Parthenium argentatum) takes two years to grow to maturity. A harvester then cuts the plants and leaves the roots. Once the root system is in place, it only takes a year for the plant to regrow. This perennial crop is continuously harvested using the same root system. bitly.com/az-edu-guayule

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Model Behavior: 3-D Printing Is Building “In construction, we’re bidding the concept of what we can deliver,” says Jeff Perelman, senior vice president and chief growth and strategy officer of Sundt Construction, Inc., explaining the advantage of 3-D over 2-D is “it’s hard to go from a two-dimensional piece of paper to give people a sense of scale of what you’re building.” Building a model rather than simply producing a rendering is nothing new in construction, but, Perelman notes, while an architect may spend a year or two iterating a few designs, a contractor may have only two to four weeks for the bid process — which is not enough time to send out to a modeler. Perelman is looking at 3-D printing to fill that need.

Perelman also sees the 3-D technology helping the company in designing solutions and determining the plan — for instance, sequencing the component aspects of a job, placing materials and determining quantities.

The debut endeavor for Sundt’s new 3-D printer was a special cover for the book Sundt produced for its recent 125th birthday celebration to showcase many of the company’s significant projects. Sundt’s engineers developed the “Sundt City” and bridge design from the 3-D concept proposed by WHYFOR Design. In addition to heightening the visual impact of the book, it provided a non-critical opportunity to practice with the printer prior to using it on a bid.

Perelman shares that the 3-D printing process was much slower than anticipated, and working in a single color is another shortcoming. But it is effective in showing scale and proportion. And Perelman believes a 3-D print can be valuable in some bidding circumstances, including providing a visual reference for the narrative in the bid document.

When bidding to be part of the design team on a project when the developer or owner is looking to balance the creativity of the architect with the contractor’s practicality and knowledge of constructability, “you’re bidding your qualifications,” Perelman explains. “A visual image would be wonderful,” enabling

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“Sundt City “ cover for the 125th-anniversary book

the contractor to submit not just cost to build but actual design ideas. Also, for highly technical projects — such as a processing plant or water treatment plant — or in a live environment with complex flows of piping for, for instance, chemicals, water and air, it could be advantageous to print key sections “so they can see that we understand the complexity of building their project.” And for building a road, “We can print the configurations of different months in sequence,” to determine how to sequence the project for the least disruption of traffic.

Sundt’s bid process already includes creating a 3-D rendering in a computer to pressure-test a project’s sequence, design, schedule and material count, making it relatively easy to go to the next step of programming a 3-D printer.

“It’s taken us months to learn what we can do with the 3-D printer,” says Perelman of the practice Sundt has had on the book project.

But he believes it is important to start early in learning to work with it, as he sees valuable applications in the future. “Some structures have custom pieces, such as plumbing and piping in a complex industrial environment. And if it can handle specific metals, it can be used for key componentry,” he says. It may even be used for printing bigger pieces of structures on a job site, rather than pouring.

“Once you start with the technology, the engineers can make it work,” Perelman says.

“We want to be on the leading edge of where 3-D printing will show up in actually building —RaeAnne Marsh buildings.”

Sundt Construction, Inc. sundt.com

Applications of 3-D printing are being explored in such diverse areas as food, clothing, medical devices, automobile and firearm manufacturing.

Photo courtesy of Sundt Construction, Inc.

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YOUR BENEFIT IN BUSINESS

WELL WELL WELL

BY RAEANNE MARSH

Go! Gargle!

Improving on the tried-andtrue sore throat home remedy of gargling with salt water, registered nurse January O’Connor devised her GoGargle formulation initially for her husband, adding honey, aloe, mint and chamomile for their immediate soothing benefit as the salt-water gargle works to reduce swelling. The Scottsdale resident began marketing it as a compressed and convenient effervescent tablet, and, at a retailer’s convention, took the award for “Best New Product of 2014” against products from giants Ricola and Johnson & Johnson. Kmart was recently added to its numerous outlets that include CVS Pharmacy, Walgreens, Bashas’ and Albertsons. gogargle.com

Expanding Delivery The new name of Abrazo Community Health Network better expresses the sense of caring that underlies the philosophy of the healthcare system that has evolved from what was previously a hospital system (“abrazo” means “embrace” in Spanish), explains Kat Rondeau, chief business development officer. “The new brand rolled out in May was the result of research regarding what a community looks for in a health system” — which is not just hospitals but an integrated healthcare delivery system.

Abrazo also is embracing the future of healthcare in Arizona by expanding the depth and breadth of its resources. Since 2014, Abrazo has invested $100 million in new technologies to allow for better integration of medical records.

“Last September, we started to invest in these technologies and roll out systems so we would be in a better position to be a partner with other

Domestic Medical Travel as Healthcare Cost Solution

Companies today face mounting pressure to provide appropriate healthcare coverage despite staggering costs. Rising to the challenge, a growing number of business owners and corporate executives have sought strategies to help avoid substantial monetary penalties for non-compliance under reform’s new regulations and, concurrently, curb healthcare costs.

In this environment, medical travel — leaving one’s home state or region to travel to a center for excellence (COE) for high-quality, more affordable surgical procedures or episodes of treatment — has quickly become the go-to benefit option for many of the nation’s leading self-insured companies. This now includes the country’s largest “giant” employers as well as midsized companies and smaller organizations.

FOLLOWING THE LEADERS While there are no authoritative statistics regarding employer adoption of domestic medical travel programs, it is estimated that 15 percent of the nation’s 50 largest employers now offer this benefit option.

Businesses of every size are taking note that companies like Walmart, Lowe’s, Jet Blue and others have begun offering U.S. domestic medical travel programs to their employees, covering the medical treatment and expenses as well as expenses for a required caregiver. The message: Medical travel is a viable strategy for cutting healthcare costs.

A key driver of medical travel is the increased demand for outpatient surgery. The number of outpatient procedures done in the U.S. tripled between 1999 and 2005. Advanced medical technology has allowed patients to go home just hours after a procedure rather than several days.

Outpatient surgeries account for about 75 percent of medical travel procedures, according to experts, in part because the out-of-pocket payments are relatively high in the U.S.

providers and health systems,” Rondeau says.

Orthopedics is a major focus across the Abrazo network, with first-to-Arizona procedures like Mazor spine surgery, along with MAKOplasty robotic surgery. In addition, Abrazo West Campus opened the only Level 1 Trauma Center to serve the burgeoning West Valley, and Abrazo Central Campus became the only Arizona hospital to have the Brainpath system, enabling minimally invasive surgery to remove deep brain tumors. abrazohealth.com

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DOMESTIC MEDICAL TRAVEL In response to its growing popularity, domestic medical travel has spawned a new breed of health management company that gives employers access to the country’s top hospitals and doctors — at a predictable cost.

The select hospitals and preferred networks involved in these programs must adhere to strict benchmarks for positive outcomes, low hospitalacquired infection rates, high patient satisfaction,

advanced staff training and skills, thorough patient data capture and other factors. Doctor costs, hospital expenses and fees are part of a single, transparent price.

EMPLOYER ADOPTION While large employers have dominated the domestic medical travel marketplace, many midsized and small employers are growing more receptive to this concept, and aggregating their purchasing power through coalitions and other multiple employer welfare arrangements.

Employers of all sizes build in incentive programs to prompt workforce uptake of the benefit, including waiving co-pays and deductibles and covering both patient and companion/ caregiver travel expenses. One of the drivers is the documented track record of a COE to achieve better results for specific procedures, mitigating complications, redo’s and readmissions — which can be very expensive in terms of hard costs, time lost from work and the health of employees.

While quality of care has traditionally been the primary deciding factor in choosing a hospital or physician for a specific treatment or procedure, the cost of healthcare has become an increasingly important factor for consideration. Having access to geographically specific healthcare cost information will also be key to empowering patients to make more informed decisions regarding whether or not to travel for care and how to plan for it financially.

—Laura Carabello, founder and principal of CPR Strategic Marketing Communications, and editor and publisher of Medical Travel Today and U.S. Domestic Medical Travel™. medicaltraveltoday.com usdomesticmedicaltravel.com

The Greater Phoenix Economic Council Healthcare Leadership Council recently unveiled a website around the emerging healthcare industry in Metro Phoenix, designed to showcase the innovation capacity and robust ecosystems of its healthcare and bioscience sectors — which is projected to grow 31.9 percent over the next 10 years, outpacing the projected national average growth of 19.5 percent. greaterphoenixhealth.com

LAW MATTERS TO BUSINESS

Equity Crowdfunding Comes to Arizona Companies should weigh the short- and long-term pros and cons of this financing opportunity

by Kevin J. Walsh.

Kevin J. Walsh is a member of Quarles & Brady LLP’s Business Law Practice Group in Phoenix. He concentrates his practice in the areas of mergers and acquisitions, venture capital, private equity, early-stage and emerging growth companies, equity and debt financing, and general business counseling. quarles.com

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Arizona’s new crowdfunding law, which is intended to give small companies in the local Arizona economy greater access to capital, took effect on July 3, 2015. Arizona joins a growing number of states that have recently enacted laws permitting some form of equity crowdfunding. For startups and other emerging growth businesses that may not have ready access to traditional sources of funding, equity crowdfunding may be an attractive option for raising capital.

Crowdfunding is the process by which companies raise capital with relatively small individual investments from a large number of investors, typically through the Internet and social media. Historically, crowdfunding has existed primarily in reward-based or donation-based models. These types of models are often associated with platforms like Kickstarter, which allows individuals to contribute funds to particular projects, either as donations or in exchange for certain products or prizes. By comparison, equity crowdfunding is the process by which a company raises capital through crowdfunding in exchange for equity interest in the company.

In 2012, the JOBS Act, formally known as the Jumpstart Our Business Startups Act of 2012, was enacted partly to facilitate capital raises for smaller companies by easing the regulatory burdens imposed by federal securities law. Congress tasked the SEC with adopting rules for crowdfunding offerings under Title III of the JOBS Act. The SEC released proposed rules on Oct. 23, 2013, but has not yet issued the final rules. Until final rules are issued and take effect, equity crowdfunding under Title III of the JOBS Act remains unlawful. In the meantime, Arizona and several other states have acted where the SEC has failed to do so.

Under Arizona’s crowdfunding law, a company can raise up to $2.5 million if it provides investors with its audited financial statements, or up to $1 million otherwise, from investors in an offering. An investor can invest up to $10,000 in any company, or, if he or she is an “accredited investor” under federal law, an unlimited amount.

Arizona’s new crowdfunding law is not available for everyone. A company can offer and sell securities only to Arizona residents and must be “doing business” in Arizona,

which requires, among other things, that it maintain its principal office in Arizona and derive at least 80 percent of its gross revenues from operations in Arizona. Additionally, a company must use at least 80 percent of the net proceeds from the offering in connection with operating a business or rendering services in Arizona. Although many local companies will satisfy these requirements, businesses with a more regional or national presence will likely not qualify.

Raising capital under Arizona’s crowdfunding law has its drawbacks. Prior to commencing an offering, the company must specify the offering period and the target offering amount. All funds invested during the offering period must go to an escrow account until the end of the offering period. If the company fails to raise at least 80 percent of the target offering amount, the offering is deemed to be a failed offering and all funds must be returned to investors. Additionally, federal law imposes limitations that could restrict a company from raising additional funds for up to six months after the offering, which might not be a viable option for many startups. Consequently, companies considering an offering under Arizona’s crowdfunding law must carefully consider their short-term and long-term capital needs before commencing any offering.

Conducting an offering under Arizona’s crowdfunding law also imposes ongoing disclosure obligations with which a company must comply. In particular, for so long as any securities issued under the offering remain outstanding, a company must provide investors with quarterly reports regarding its business, including a summary of any compensation received by each director and executive officer of the company and an analysis by management of the company’s business operations and financial condition.

Investors should be aware of the risks of any crowdfunding offering. Most startups go out of business within a few years of launching, and, because there is no active market for securities bought in a crowdfunding offering, even investors who invest in successful companies may find it difficult to achieve liquidity for their investment. Unless and until a market for these securities develops or the company is acquired, investors could be holding their investment indefinitely.

Equity crowdfunding is growing rapidly. Arizona joins 28 other states that now permit equity crowdfunding, and crowdfunding legislation is currently pending in several other states as well.

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usinesses create revenue and income relative to how they utilize assets. When a business owner goes into the marketplace to try to raise money, the bigger the business’s asset base, the better its position to do so — whether it needs to buy things to sell or make things to sell, says Michael Denning, Ph.D., professor of practice, marketing, at the W. P. Carey School of Business at Arizona State University.

Assets, he notes, include people to create the value that goes into the product or service the business sells. Business owners may need to step back from the narrow focus on day-to-day survival to consider, “How can I create the greatest leverage, so that, with least amount of investment, I get greatest amount of return?”

And the answer to that may be vastly different for someone who went into business to be his own boss — which impelled many in the recent economic downturn that pushed unemployment rates to new heights — from someone who went into business to make money.

“Usually, when we talk about creating value in a business, we talk about trying to increase liquidation value,” Dr. Denning says, explaining this may be from the owner cashing out, in some way, the equity he has built up in the business, such as from someone buying it or going public. Building value means making it worth more than it is today, but Dr. Denning notes it is the buyer who establishes the value of something that is going to be marketed; “If there is no buyer, it has no value except for the owner himself.”

There are strategies that businesses can use to marshal their internal resources rather than looking to outside funding. But Rick Murray, CEO of the Arizona Small Business Association, advises small-business owners to be sure they are looking

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at growing for the sake of increasing revenues, not for sake of adding personnel and just being larger. “They must have a return on investment,” he says, noting that if the result does not increase the business’s EBITA (earnings before interest, taxes and amortization), the business owner should think twice about taking steps to grow it. “It doesn’t make sense to grow if you have same profitability; you’re just working harder for the same amount of money,” he says.

However, business owners may be driven by any of a variety of motivations, and Bob Wilson, co-principal of Stoney-Wilson Business Consulting, notes, “Everything you do leads down that path to get to that objective.” Growing big is one motivation Wilson has seen, but others are name recognition, wanting the cash, pride, wanting to leave solid assets for one’s family, and wanting simply to do good and create products that help other people. “We see a lot of this,” he says. And some people “just like doing what they do,” and want just to have enough to have a comfortable life while doing it.

Whatever the motivation, it’s important to establish long-term goals and objectives. Says Wilson, “A lot of businesses don’t do this; they live for today.”

But there’s a step even before that. Observes Dr. Denning, “No plan is worth anything unless you’re clear about what you’re trying to do.”

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Cultivate an Investment Mentality

The entrepreneur trying to create wealth — whether for self, heirs or another beneficiary — needs to have an investment mentality in the business. “They have to reinvest the proceeds they would normally take out of the business back into the business,” Dr. Denning explains. This is at the heart of using the business’s internal resources to grow as opposed to seeking outside investors.

This can be directed to diversification to offer more variety to existing customers, acquiring a complementary business, or organic growth — expanding outside the existing market area or increasing the volume of sales of the product or service to the existing customer base. “Expanding inventory to be able to sell additional items, including bringing on new product, is easier and more realistic today than it was two years ago,” Murray says, observing that we are now out of the recession.

Making the Most of Internal Resources … Now

There are a variety of options businesses can use to leverage non-external resources, including, says Mike Patterson, a shareholder with the Phoenix office of Polsinelli, “unusual hybrid-type of financing for people who don’t want the traditional external equity of venture capital financing.”

One of these that Patterson has begun to see recently in the Phoenix market is royaltybased financing. Basically, it is lending, with payments based on the company’s cash flow and ability to pay, and a balloon payment at the end of a couple of years. “It doesn’t give away equity,” Patterson explains. “It allows people who are ramping up, who aren’t revenue-positive, to reinvest into their company.” There are underwriting considerations as to whether this is suitable for a business. “It’s not for startups; the business must have a proven track record of moving toward its goal,” says Patterson. A suitable business may be one with intellectual property assets, and a good management team is as important as with traditional lending.

Another option is receivable financing, or factoring of receivables. A business may have made a lot of sales but have receivables that may be 30 or 60 or 90 days out, or may be looking to break into a market and, in order to compete with established companies, need to offer preferential payment terms. Factoring can help meet immediate cash need — for instance, payroll and manufacturing costs.

“Employees may have an interest in investing in the company, through employee-based equity plans that are qualified under federal and state tax laws,” Patterson continues.

An employee stock ownership plan (ESOP) is one of a plethora of alternatives whereby employees can buy into a company. “This is a real benefit if you’re looking for money that’s not outside the company,” Patterson says, observing it builds loyalty and increases the employee’s motivation to do well and help make the company stock worth more; fostering an owner mentality. “There are tax implications, but no cash outlay.”

Businesses may also find they qualify for a grant. There are grant programs from federal, state and city governments as well as private foundations for, among others, women-owned businesses, veteran-owned businesses, minority-owned businesses and businesses that target depressed areas to create jobs. AguaSAC founder Liesl Harder Kielp, in this issue’s “Feedback” feature, shares that her company was helped tremendously by a grant from the Arizona Commerce Authority. And JPMorganChase announced last month that it was putting $100,000 seed money into the Metro Phoenix Export Alliance for imports and exports. “So if you’re not currently exporting, you may want to consider doing that,” Patterson says.

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Businesses may also find they qualify for a grant. There are grant programs from federal, state and city governments as well as private foundations for, among others, women-owned businesses, veteran-owned businesses, minority-owned businesses and businesses that target depressed areas to create jobs.

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… and Later

Companies that work in technology may have ideas that are patentable, and each patent is an asset that increases the worth of the company. “A patent can be licensed, and a lender can lend against it,” Patterson explains.

Companies that work in technology may have ideas that are patentable, and each patent is an asset that increases the worth of the company. “A patent can be licensed, and a lender can lend against it,” Patterson explains. Some businesses his firm works with, he shares, train their employees to come up with patentable ideas, which can include improving on products or processes that already exist.

There may be opportunities for a business to partner with another that is in a complementary industry. An example Patterson offers is a company that provides a technology which could be applied to, for instance, the banking and credit union market, but the company has never broken into that market. “They might find someone who serves that market in another way, and use its relationships.” It could be a joint venture, for a company to expand what it’s been doing with another company that will share the benefit, but there is no cash outlay.

“You can create new relationships [with someone] to be the front person for you, almost like a salesman,” Wilson suggests for a business looking to expand into other markets. “They can add your product to what they are already selling.” This strategy may be especially well-suited to breaking into a new market internationally, with the business offering the representative a percentage of the sales.

Discussing the potential of strategic acquisitions to help a company grow, Chuck McLane, lead managing director of Operations with CBIZ, observes, “There are synergies to generate revenues through involvement of other lines of business that tie to yours,” including buying an existing business.

He also suggests a business look at the supply chain of where its goods or supplies are coming from.

The nonprofit community may offer opportunities for for-profit businesses through public-private partnerships (PPPs). There may be opportunity to create an internship program that would benefit both parties, or they may work together to create specialized technology. Notes Patterson, “ASU was just awarded ‘most innovative university in the nation’ partly because it does so many PPPs as well as working with entrepreneurs.”

Developing intellectual property with future value in a larger scale is another way a business could develop value into the future. To this end, businesses might tap into the younger workforce coming out of college, McLane observes, and perhaps promise them equity in the future company. “They’ll work harder and with greater purpose to produce intellectual property utilized for the future.” It could be creating a product to sell to others or be something that benefits the company internally by creating new processes.

Also touching on processes, automation and improving on what was previously done manually can also boost future value.

Social media provides a means to create value, McLane points out. “It creates volume and attention for the company, which leads to greater value in the long run.” The volume itself, not just the connecting to potential customers, adds greater value to the organization.

Strategies, of course, are based on the resources a business has available, and the more resources it has, the more its alternatives. “It takes more sweat equity to build when it’s a small business,” McLane observes. But the size of the marketplace impacts as well. “Have a business plan that identifies that the market is large enough that a small penetration will produce enough cash flow for your need,” he says, explaining businesses must confront both a time gap and a money gap — to show they can achieve the target penetration within a reasonable time in order to convince people to put in the effort.

Using Outside Resources

Business owners may find options with resources outside of their business, such as drawing on equity in real estate or taking out a second mortgage on their home. “They get financing on existing assets because the business, itself, does not support financing from a bank,” McLane says. “We see this most often with small businesses just starting out — they have an idea but no revenue yet, so use the personal finances of the ownership group.” This includes using their salaries from their current employment, credit cards, and resources from family and friends.

“For any small business, the opportunity to grow without giving up equity is the preferred way,” says ASBA’s Murray. Giving up equity, he notes, creates expectations from the investors and adds responsibilities on the business owner — including communication with the investors and managing their expectations.

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Pay Attention to Cash Flow

“Cash is king in a small business, but it’s also the rest of the deck as well,” Dr. Denning puts it neatly. He notes that most small businesses fail, mostly, because of bad management, and “management of cash is right up there near the top.”

Business owners should consider how to maximize their cash flow, including minimizing the outflow. This can be accomplished by stretching trade payables. “Get the best terms on when you pay people, and the most aggressive terms on when you collect,” Dr. Denning explains.

It may seem attractive to buy a building for the business rather than paying rent, but Wilson notes that, too, comes back to cash flow. Among other considerations about buying a building are: Where is the value? Is the deal on the mortgage better than the cost of rent?

Decisions on major purchases, whether of equipment or real estate, depend on access to liquidity — what kind of financial condition the business is in and what is the most prudent use of the capital it has. And analyze the effect in both the short term and the long term. Notes Dr. Denning, “You may use up assets and not have the liquidity to take advantage of an opportunity that comes along, such as the purchase of a competitor.”

It may be feasible to cut existing expenses, such as renegotiating rent, Wilson suggests. Or even identify unnecessary assets that can be sold to generate cash.

Plan to Grow

“Start with the objective of the particular owner,” Dr. Denning says.

“They have to be clear in their own mind of what they’re doing and why they’re doing it.” But he notes reinvesting in the business must be part of the plan for value creation for

Murray notes the value of a measured approach to growth. “Small businesses need to plan to grow at a reasonable rate, so that if they have to expand or buy equipment it can be done in increments — so it’s achievable,” he explains.

But one of the first things to do, Dr. Denning believes, is invest in people, “so you have the human resources and intellectual capital” to sustain the business.

Small businesses are typically understaffed, he observes. “They don’t have ‘A’ players in every position, nor bench strength.”

While business owners focus on being successful enough to survive to achieve their goals, the larger community benefits as well. Points out Patterson, not only do businesses pay taxes, but “as a business grows, it creates jobs. And those families pay taxes and consume within the state — which also creates tax revenue.” Furthermore, as businesses grow, there may be a snowball effect as they create clusters and synergies that attract other jobs.

A business owner may be focused on building a company to hand down to his or her children, building the company’s value in the marketplace, or creating value to him- or herself — self-actualization, pride of ownership or sense of accomplishment. “Start with the objective of the particular owner,” Dr. Denning says. “They have to be clear in their own mind of what they’re doing and why they’re doing it.” But he notes reinvesting in the business must be part of the plan for value creation for small and medium-sized businesses. “Make sure heirs — or whoever takes over the company — will have a sufficient asset base to survive the ups and down that normally occur in business cycles.”

Arizona Small Business Association asba.com CBIZ cbiz.com Polsinelli polsinelli.com Stoney-Wilson Business Consulting stoneywilson.com W. P. Carey School of Business wpcarey.asu.edu

small and medium-sized businesses.

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DECISIONS THAT MATTER

Manage Energy, Not Engagement Practice leadership with broader perspective on ‘engagement’

by Brady Wilson

Brady Wilson is cofounder of Juice Inc., a corporate training company that services organizations from Toronto to Los Angeles.

Also a speaker, trainer and author, Wilson recently released his latest book, Beyond Engagement: A BrainBased Approach That Blends the Engagement Managers Want with the Energy Employees Need. bradywilson.com

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After 20 years of trying to get it right, few organizations truly understand employee engagement or have failed to see its improvement in their company. And yet, there are organizations that have increased engagement — but find their employees are drained and depleted.

What causes this “engagement paradox”? It’s simple.

Managing engagement turns out to be just another drain on the most precious resource in business today: energy.

It’s not that employees don’t want to be engaged.

They’re committed and loyal workers; however, in today’s “over-extended” era, they’re simply struggling to make it to the weekend. Lacking energy, they resort to quick fixes, workarounds and reactive firefighting, thereby hardwiring depletion into the system.

To create a sustainable, innovative and high-performing organizational culture, businesses need to focus on both engagement and energy — essentially, moving “beyond engagement” as we know it today.

Simply put, employees need a pep in their step.

Brain science provides us with an understanding of how to get there. Here are 10 ways for leaders to look at engagement differently, shift their thinking toward a culture that puts energy first — and reap the rewards.

Manage energy, not engagement. Brain science shows that when we are low on energy, the first thing we lose is our “executive function” — our ability to focus, to regulate emotions, prioritize, plan, make decisions and take action.

Traditionally, engagement initiatives focus on getting employees to give more discretionary effort. But effort without energy spawns duct-tape fixes and fire-fighting — creating the perfect ecosystem for depletion. By managing employees’ energy instead of engagement levels, leaders safeguard people’s executive function — and unlock the energy that fuels passion, innovation and enthusiasm, generating sustainable engagement.

Deliver experiences, not promises. The brain is wired to pursue activities that promise reward — regardless of whether the experience of reward is actually delivered. Often, leaders gravitate toward elaborate recognition/reward programs and

intricate performance management systems that hold — but don’t deliver on — the promise of fixing issues once and for all. This creates cynicism, corroding the entire employee experience — and employees begin to see employee engagement as nothing more than a con game.

To energize employees, leaders must make a critical shift from the promise of reward to delivery of reward — moving beyond non-rewarding engagement activities to helping people experience the reward of an energized environment.

Target emotion, not logic. We live and work in a “feelings economy,” where feelings — not intellect — drive employee behavior. Research shows the limbic system (the brain’s emotional center) defines what we experience as reality. So if employees don’t feel they’re valued, all the assertions, declarations and assurances in the world can’t make it true for them.

Employee engagement initiatives that target the rational brain ignore the importance of the emotional brain in defining each individual’s day-to-day experience. To inject employees with energy in their day-to-day jobs, leaders must appeal to the emotional brain. Taking time to understand what matters most to one‘s employees and then acting upon that information is an incredibly effective way to show compassion and support. And the benefits are huge: According to the Corporate Leadership Council, tapping in to emotional engagement enables employees to offer their employer 400 percent more discretionary effort!

Trust conversations, not surveys. Businesses that rely on annual engagement surveys get only a snapshot of the employee experience. They do not generate the intel needed to energize employees to do their very best on a daily basis.

Instead, leaders who shift from surveys to frequent, face-to-face, meaningful conversations with employees can generate energy and enthusiasm throughout an entire organization. This is because quality leader/employee conversations release all kinds of hormones in our brains: hormones that promote trust, focus and creativity; that deepen relationships and unlock results.

Seek tension, not harmony. The brain’s natural response to tension is to interpret it as a threat. Leaders often respond

The Harvard Business Review reports that a recent Interact/Harris poll found more than half of respondents said their biggest complaint was that their bosses didn’t have time to meet with them in person (52 percent), while a similar percentage (51 percent) said their bosses refused to speak to them at all. hbr.org

BETTERING YOUR BUSINESS

The Second Decision to tension by slipping into unhealthy behaviors such as overpowering others, giving in to the tension, or avoiding it altogether.

But, believe it or not, our brains are actually energized by tension.

This is because the tension between the current way of doing things and the desired way of doing things can spark innovative thinking. When leaders learn to not avoid tension but instead stand amid it to deal with competing priorities, they can create surprisingly amazing solutions.

Practice partnering, not parenting. Because the emotional brain perceives “shared responsibility” as a risk, managers will often resort to parenting-type behaviors, like manipulating and micro-managing employees, which introduces negative feelings such as guilt and shame into the overall organizational culture.

The goal is to function solidly in an adult-to-adult mode. By shifting from a “parenting” to “partnering” managerial style, both parties can co-author powerful solutions that employees are willing to adopt and implement. In return, managers recoup time and mind-space previously spent on parenting.

Pull out the backstory, not the action plan. Too often, organizations take engagement survey results at face value and come up with broad-brush action plans without pausing to understand their context. These “one-size-only” strategies are devoid of quality conversation, practically guaranteeing employee resistance.

The brain thrives on connections — and in the business world, connections are realized through conversation. Through frequent, quality conversations, leaders can draw out the backstory behind engagement scores, identify what matters most to employees, and partner with them to create solutions that generate meaningful energy.

Think sticks, not carrots. Our brains respond more to “sticks” than to “carrots.” However, leaders often gravitate to offering carrots like recognition, cheerleading and inspiration. What they should be doing is looking for and addressing psychological forms of interference like bullying, self-doubt, unresolved conflict and team tension: things that undo employees’ ability to access their knowledge, experience, skills and strengths.

By “thinking sticks” and identifying and removing forms of interference, leaders can produce environments where employees can be their best selves — and entire organizations can experience stunning business gains.

Meet needs, not scores. As mentioned above, our brains make decisions for emotional reasons, and then justify those decisions rationally. When needs go unmet, employees may act out in unskillful ways — forming cliques, gossiping and creating friction — that permeate the organization with interference.

Leaders who meet employees’ individual needs (instead of focusing on annual survey scores) can inspire employees and sustain workplace energy — buoying employees’ energy and saving themselves precious time dealing with interoffice conflict.

Challenge beliefs, not emotions. Our brains do not allot us the resources to do something unless we are convinced something is possible.

Self-limiting employee beliefs can produce low levels of agency and self-efficacy, bringing engagement initiatives to a standstill. According to science, it is not our capability but our belief in our capability that makes us effective.

Leaders who recalibrate employees’ unhelpful beliefs — targeting their personal feelings of self-doubt, second-guessing and frayed confidence — can produce a much greater sense of agency in their workforce.

According to communications consulting firm Interact, a Harris Poll survey among employees who work virtually found they report a strong need for personal communication with their managers. interactauthentically.com

Author Randy H. Nelson knows that in business, the majority of entrepreneurial CEOs are not required to be qualified to lead their organizations. In The Second Decision, Nelson has combined his six years of naval service, 25 years of business experience and thousands of hours with business leaders to develop The Entrepreneur QualCard™.

Chapter by chapter, the reader will discover whether he is a leader who will put the company on his shoulders, a role-player who takes another position in the company, or a creator who moves on to the next big idea. This book will help the entrepreneur determine his role and make the hard leadership decisions to help his company beat the odds and keep growing for years to come.

Title: The Second Decision: the QUALIFIED entrepreneur Author: Randy H. Nelson Publisher: Advantage Media Group Available: November 30, 2015 Pages: 346 $23.99

The McKinsey Edge The McKinsey Edge culls the personal best practices of an exclusive group of managers connected to McKinsey & Company, a firm that services 80 percent of the world’s largest corporations. Through a wealth of 47 rigorously selected, battle-tested, immediately implementable and practical tips, readers will discover the secrets to building the self, growing with others, enhancing process management, and going the extra mile to reach the next leadership horizon. Everyone struggling to accelerate his career will keep this book at his fingertips for its rare, real-world advice for ascending through the levels of management — each of which requires a specific mindset and capability that only a handful of people ever master.

Title: The McKinsey Edge: Success Principles from the World’s Most Powerful Consulting Firm Author: Shu Hattori Publisher: McGraw-Hill Education Available: November 27, 2015 Pages: 192 $28

The Marketing Plan Handbook Marketing expert Robert W. Bly cuts through the clutter of short-lived marketing techniques and trendy gimmicks to reveal the critical steps a businessperson needs to cross over from business owner to marketplace competitor. Dishing bite-sized lessons, supported by in-chapter exercises and end-of-chapter actions, Bly coaches the reader in creating an effective marketing plan that produces the results of an expensive marketing consultant without the hefty cost, from learning how to develop a clear business vision to marketing through to creating an effective implementation schedule, including how to review and troubleshoot for future success and growth. Whether embarking on a new venture or reviving a current business plan, this practical handbook provides the reader with next steps toward business success and survival.

Title: The Marketing Plan Handbook: Develop Big-Picture Marketing Plans for Pennies on the Dollar Author: Robert W. Bly Publisher: Entrepreneur Press Available: November 24, 2015 Pages: 324 $19.95

27 20NOV.1 5 INBUSINESSMAG.COM

INVESTING IN COMMUNITY

Coaching for Fundraising Success Finding the right fundraising talent may be easier than nonprofits think — with the right training

by Richard Tollefson

NOV.

UP NEXT MONTH: When and Why to Engage Fundraising Consultants

THE BEST FUNDRAISING COACHING …

• Is flexible and adaptable to the rigor and uncertainty that leaders in the fundraising profession face each day.

• Offers a blend of practical knowledge and easy-to-follow processes that can help establish benchmarks and accountabilities for the team.

• Includes a mix of national and local perspective to guide thinking.

—Kristin Priscella, chief operating officer for external affairs, Arizona Science Center

Though they possess innate fundraising instincts and a passion for their nonprofit missions, Kristin Priscella and Annet Ruiter admit they weren’t necessarily born fundraisers.

Priscella, Arizona Science Center’s chief operating officer for external affairs, started within her organization in a marketing capacity. Ruiter, vice president of external affairs for Planned Parenthood Arizona Inc. and Planned Parenthood Advocates of Arizona, began her career as a Planned Parenthood volunteer and healthcare assistant.

Today, both oversee development functions within their nonprofits, and both participated in fundraising coaching before assuming their respective roles.

“Sometimes an individual in your organization will have excellent passion, and the instincts are there, but they don’t have the expertise and skill,” says Ruiter. “That is when you want to invest in coaching.”

Says Priscella, “Grant writing, proposal development, the art of the pitch, gift tree structure, annual fund tactics — these can all be taught. If you have a candidate — internally or externally — with the innate skills, fundraising training can be transformational to them and the organization.”

While some of these skills can and should be learned through coursework and seminars offered by professional fundraising organizations, both women say that individual coaching was most valuable.

“When I promoted Kristin, I knew that for her to excel in the role, she would need to learn to work smarter, not harder, and that it would require personalized and intensive training,” says Chevy Humphrey, president and CEO of Arizona Science Center.

“The benefits have been extraordinary.”

Priscella’s year-long coaching included day-to-day support from a team of mentors with national and community connections and more than 50 years of shared fundraising experience. Ruiter’s coaching was similar.

“I was able to test my assumptions and bring my questions to professionals with a rich fundraising history,” says Ruiter. “It helped build my confidence, and I felt 100 percent safe to ask what I wanted. With a contract-bound, confidential coaching

relationship versus a community mentorship, I think you can be more open.”

“The fundraising community is changing rapidly,” says Priscella, “and the role and expectations of good fundraisers are shifting. As a result, we need to be acutely aware of local trends, national influencers and the next wave of transition. Learning from coaches who are watching national and local industry bestpractices closely is the most valuable type of training.”

Concerned about coaching costs? Planned Parenthood Arizona CEO Bryan Howard points to employee turnover when coaching isn’t part of the equation. He suggested and supported Ruiter’s individualized coaching curriculum.

“Nonprofits benefit when we retain and invest in existing talent. Bringing outsiders up to speed when you lose existing talent — and especially in development, we know that donors mostly give for two reasons: affinity for the mission, but also because of their trust in the relationships — will have an impact on the bottom line.”

Ruiter, incidentally, won the 2015 Planned Parenthood Development Officer Conference Award as fundraiser of the year — testament, she says, to the fundraising coaching she received. “Had I not had the mentorship and the skill-building and confidence that came with it, I wouldn’t have made it eight years in fundraising.” She believes the correct training can lead to longevity for fundraising professionals and stability for the nonprofits they serve.

“The most successful for-profit companies invest in their employees at a very high rate,” says Humphrey. “They give them the training, tools and ongoing support they need to best serve the company. Why should nonprofits act any differently — especially when our ‘shareholders’ are the communities we serve?”

What components should a coaching curriculum include?

The Author: Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.

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NOV. 20 1 5

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INBUSINESSMAG.COM

development leaders.

After completing fundraising coaching, Mark Saville, director of development at Arizona Opera, doubled the nonprofit’s donor base his first year, exceeded all budgeted goals and achieved the highest contributed revenue in the company’s 44-year history. Arizona Opera has since been named “the best comeback in the arts” for Phoenix.

BY MIKE HUNTER

OCTOBER 2015

Arizona Technology Council

Governor’s Celebration of Innovation Thurs., Nov. 12 | 4:00p – 8:00p Honoring technology leaders and innovators from across the state, the Arizona Technology Council in partnership with the Arizona Commerce Authority presents the Governor’s Celebration of Innovation. The annual awards gala attracts more than 1,000 attendees each year for a night of networking, food and entertainment.

This year’s theme is “Future Forward.” The early part of the evening will be the Technology Showcase, with more than 50 Arizona companies exhibiting, and a strolling dinner.

The highlight of the evening will be the theater-style awards program. The gala will also include specialty desserts and live music following the awards.

Arizona State University President Michael M. Crow has been chosen by a live vote as the 2015 OneNeck IT Solutions Lifetime Achievement Award winner. Other winners already named are Thomas Curzon, of Phoenix, for the William F. McWhortor Community Service Leader of the Year Award; Alexi Venneri, of Scottsdale, for the Ed Denison Business Leader of the Year Award; Raytheon Missile Systems, of Tucson, for the Pioneering Award; Arizona State University Biodesign Institute, Zmapp, of Tempe, for the Judges Award; and Medtronic Tempe Campus, of Tempe, for the Large Company Award.

To be announced at the event are award winners for Innovator of the Year – Start-Up Company, Innovator of the Year – Small Company, Innovator of the Year – Academia, Future Innovators and Teacher of the Year.

“With the support of the Arizona Commerce Authority, the Governor’s Celebration of Innovation has become the premier technology community gathering of its kind in Arizona,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council. “Winners and deserving finalists are recognized for their prestigious technology achievements and innovations that have the power to transform our state and build a sustainable economy with jobs that, typically, pay significantly higher than average wages. With the help of these creative minds, Arizona is gaining a competitive edge as a global leader in science and technology.” —RaeAnne Marsh Members: $150; non-members: $200 Phoenix Convention Center, West Building 100 N. 3rd St., Phoenix azcommerce.com

Scottsdale Area Chamber of Commerce

30th Annual Sterling Awards Fri., Nov. 20 | 11:30a – 1:30p Celebrating 30 years of honoring Scottsdale businesses, this elaborate event recognizes businesses in four categories every year. Nominations are received and the Sterling Awards judges do an incredible job looking over applications, doing site visits and digging into aspects of the business, conducting the assessments with an attentiveness that truly elevates the caliber of these awards.

There are four categories of awards. For Non Profit, finalists are Franciscan Renewal Center, Playworks and Shoebox Ministries. Finalists for Micro Business are CME Locksmith, Money Radio 1510am and Splash Printing & Marketing. The finalists for Small Business are Caliber, Chickfil-A and PHX Architecture. And finalists for Big Business are McKesson, TPC Scottsdale and V.I.P Mortgage, Inc. The awards ceremony takes place at the Chaparral Suites Resort Scottsdale and is a formal luncheon that will include videos of each of the finalists and special guests. Businesspeople from all over the Valley attend this prestigious event, and both finalists and winners are given great accolades for the year to come, including a personalized logo to use on collateral and other congratulatory events that honor their success.

The Scottsdale Chamber of Commerce has recently announced its new president and CEO, Mark Hiegel, a longtime area businessman whose expertise in marketing and business makes him a fantastic asset to the future of the Scottsdale Area Chamber.

Tickets and sponsorships can be purchased for this event to help honor these companies through the chamber’s —Mike Hunter website. $85 Chaparral Suites Scottsdale 5001 N. Scottsdale Rd., Scottsdale

SAVE THE DATE

Upcoming and notable 24th Annual Bud Shootout DEC.

Fri., Dec 4

4

Arizona Hispanic Chamber of Commerce golf tournament benefits the AZHCC Scholarship Program and the ASU Hispanic Business Alumni Program. azhcc.com

Economic Development Red Carpet Tour and Mayor’s Annual Business Address DEC.

Tues., Dec. 8

8

The Gilbert Chamber of Commerce presents a progressive Red Carpet Tour that offers a behind-the-scenes look at leading developments in and around the Town of Gilbert. gilbertaz.com

scottsdalechamber.com

aztechcouncil.org

NOVEMBER 2015

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NOVEMBER 2015 NOTABLE DATES

15 16 17 18 19 20 21 Sun., Nov. 1 – Daylight Saving Time Ends

Wed., Nov. 11 – Veterans’ Day

22 23 24 25 26 27 28 Tues., Nov. 3 – Election Day

Thurs., Nov. 26 – Thanksgiving Day

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NOVEMBER 2015 Fri., Nov. 6

Thurs., Nov. 12

8:00a – 9:30a

Global Chamber

Scottsdale Area Chamber of Commerce

Scottsdale Area Chamber of Commerce

Metro Phoenix is a U.S. crossroads hub for all types of transportation for life sciences, semi-con, electronics, aerospace, agriculture and more — no limits. How much more effective can the region be to become a more powerful player with logistics?

7501 E. McCormick Pkwy., Scottsdale

Members: free; non-members: $25

scottsdalechamber.com

SkySong

This Friday Forum presentation is designed to uncover some core concepts and show that a little bit of marketing knowledge can go a long way.

Free

Thurs., Nov 5

5:30p

7:30a – 9:00a

Can Phoenix Be a World-Class Logistics Hub?

Event Marketing & Search Engine Optimization

1475 N. Scottsdale Rd., Scottsdale

23rd Annual Best of West Awards Dinner

globalchamber.org

WESTMARC

Tues., Nov. 10

Recognizing outstanding contributions to the image, lifestyle and economic development of the West Valley, WESTMARC will announce West Valley award winners in three categories: Economic Engine, Quality of Life Enhancement, and Excellence in Innovation.

Wake Up Ahwatukee

Members: $250; non-member: $275

Members: $5; non-members: $15

WigWam Resort

iAloha Radio

300 E. Wigwam Blvd., Litchfield Park

637 S. 48th St., Tempe

westmarc.org

ahwatukeechamber.com

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Fri., Nov. 3

8:00 – 9:00a

Ahwatukee Foothills Chamber of Commerce The morning mixer provides a chance for quality networking in a relaxed, group environment with other business professionals from the Ahwatukee area.

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10 Wed., Nov. 11

7:30a – 10:30a

7:30a – 9:00a

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12 Wed., Nov. 11

11:00a – 1:30p

Business Diversity Summit and Matchmaking Forum

Wake Up Chandler

Goal-Setting Workshop

Chandler Chamber of Commerce

eWomen Network – Phoenix/Scottsdale

Arizona Hispanic Chamber of Commerce

Wake-Up Chandler is a great way to start off the morning by networking with other businesses. Bring business cards and brochures, and be prepared to give a 30-second commercial about your business.

This event spotlights the growing contributions of minority-owned businesses in Arizona, and includes the annual Phoenix Minority Business Enterprise Awards and the induction of local companies into the Arizona Million Dollar Circle of Excellence, a recognition of companies that annually spend at least $1 million with minority-owned suppliers in Arizona. The event also features a matchmaking forum for suppliers and buyers.

Wed., Nov. 11

Members: $5; non-members: $15

Did you know businesses that follow a plan see 60 percent more growth than those that don’t? In this hands-on mini-workshop, you will walk away with the tools and resources necessary to get you on the path to success. You will also learn a simplified approach to goal setting that is aligned with your vision and works, a goal setting guide with worksheets that will serve as your working document throughout the year, and the start of a clear and realistic plan for 2016.

Burst of Butterflies

Members: $38; non-members: $48

141 W. Boston St., Chandler

Raven Golf Club

chandlerchamber.com

new.ewomennetwork.com

3636 E. Baseline Rd, Phoenix

11:30a – 1:00p

Military Affairs Business Luncheon

$75

Tempe Chamber of Commerce

Arizona Biltmore

The Tempe Chamber Military Affairs Committee will present scholarships to outstanding students from the ASU ROTC program — two outstanding cadets from the ASU Army and ASU Air Force and one Midshipman from ASU Navy ROTC programs. Recipients of these scholarships exemplify honor, integrity, hard work and dedication to their education and the United States Military.

2400 E. Missouri Ave., Phoenix azhcc.com

Members: $25; non-members: $35

NOV. 20 1 5

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INBUSINESSMAG.COM

Heidi’s Events & Catering

2095 W. 15th St., Tempe

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

tempechamber.com

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

Fri., Nov. 13

Thurs., Nov. 19

6:00p – 9:00p

8:30a – 10:30a

20th Annual Gilbert Community Excellence Awards

‘More Than Just Cigars, Rum & Coffee’

Gilbert Chamber of Commerce

Organization for Women in International Trade – Phoenix

Sponsored by APS, this formal evening is filled with celebration as attendees honor those in the community who have excelled in areas of business, education and community involvement. Enjoy samplings from the Taste of Gilbert restaurant showcase. A cash bar will be available for the purchase of soda and wine.

This month’s program is “More Than Just Cigars, Rum & Coffee — The Impact of Recent Developments in the U.S. Embargo on Cuba on U.S. Companies.”

Members: free; non-members: $35 Maricopa Association of Governments Thurs., Nov. 19

$50

302 N. First Ave., Phoenix

owitphoenix.org

11:30a – 1:00p

SanTan Elegante Conference & Reception Center

Hot Topics & Lunch

1800 S. SanTan Village Pkwy., Gilbert

“Using Amazon to Onboard, Market and Grow Your Business.” Amazon has grown to become the biggest marketplace for online shopping, and has managed to create a whole new set of millionaires by allowing businesses and individuals to leverage the Amazon platform. In this presentation, Karthik Subramaniam, a software development engineer at Amazon.com, will teach how to develop and grow your business on Amazon.

Tempe Chamber of Commerce

gilbertaz.com Tues., Nov. 17

11:30a – 1:00p

Using a YouTube Channel to Market Your Business Arizona Small Business Association YouTube is not just for posting silly videos. It can also be used as a highly effective business tool. Use it to show off your expertise; share knowledge; market your products; and connect with customers, colleagues and prospects.

Members: $25; non-members: $35

Members: free; non-members: $10 ASBA’s Business Education Center

Country Inn & Suites 4234 S. 48th St., Phoenix

4600 E. Washington St., Phoenix

tempechamber.com

asba.com

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17

18

19 Wed., Nov. 18

Wed., Nov. 18

6:00p – 8:00p

Local First Arizona + Fuerza Local Member Mixer Local First Arizona

5:30p – 8:00p

Tues., Nov. 30

3:30p – 5:00p

Women’s Networking Group

Phoenix Metro Chamber of Commerce

Mesa Chamber of Commerce

Meet like-minded professionals who want to help create a strong, local economy.

Held the fourth Tuesday of each month, events vary between networking sessions and educational programs. This month’s event is “Wrapping Christmas Gift for Adopt a Family.”

Members: free; non-members: $10

Members: $10; non-members: $20

Rick Bronson’s House of Comedy

Hilton Phoenix/Mesa

5350 E. High St., Phoenix

1011 W. Holmes Ave., Mesa

phoenixmetrochamber.com

mesachamberofcommerce.org

Fri., Nov. 20

11:30a – 1:30p

30th Annual Sterling Awards Scottsdale Area Chamber of Commerce As the Chamber’s marquee event, the Sterling Awards embody the spirit of the organization by celebrating the people and companies that make our community a great place to live, work and play.

Free

$85

Southwest Autism Research & Resource Center

Chaparral Suites Resort Scottsdale

localfirstaz.com

30

Elite Networking Mixer

Join local business owners from across the Valley for a unique networking event highlighting Southwest Autism Research & Resource Center and the Beneficial Beans urban garden.

2225 N. 16th St., Phoenix

20

5001 N. Scottsdale Rd., Scottsdale scottsdalechamber.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

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NOV. 20 1 5

INBUSINESSMAG.COM

WE VALUE WHAT WE OWN

City: 17 Hwy: 23 Trans: 9-speed automatic 0-60 mph: 5.6 sec MSRP: $65,100

The AMG GLE 63 S Coupe is the all-powerful version, priced at $109,300, with a hand-crafted 5.5L AMG bi-turbo V-8 engine that allows an acceleration of 0-60 mph in 4.2 sec. and 577 horsepower with torque 561 lb-ft.

2016 Mercedes-Benz GLE 450 AMG Coupe: All Body and Soul

Designed to impress with speed and a sleek new design, the GLE Coupe is a breakthrough for Mercedes. This vehicle has a confident stance and is an SUV for the future. The 3.0-liter bi-turbo V6 engine empowers this new Mercedes with 362 horsepower and an impressive 384 pound-feet of torque. Its 9-speed automatic transmission coupled with all-wheel drive performance allows for best handling and quick response.

The look of this SUV “coupe” pushes the long-standing tradition of the smaller coupe and uses the coupe attributes of quick, sure handling as its influence for the broader SUV market. However, the GLE is more than a new body style and impressive engineering under the hood. This four-door coupe

Mercedes-Benz mbusa.com

Office Perks

Bunn iMIX-5 Black

The need for fuel to start the day at the office usually involves a stop at a nearby coffee spot.

Eliminate that and perk up the office (and staff) with one of these true and tested “do it yourself” espresso/cappuccino machines. Yes, they are expensive, but they’ll keep the office caffeinated and ready to go.

NOV. 20 1 5

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INBUSINESSMAG.COM

allows three to sit comfortably in the second-row seating and, despite its overall “coupe” appeal, is quite the SUV. It has the widest rear seat in its class, and that space can double as storage space — folding the seats down adds more than 60 cubic feet of utility or luggage space. The available panorama roof offers the sense of even more open space, making certain the roomy feel of a larger SUV is achieved.

The 4Matic permanent all-wheel drive and the Dynamic Select multimode driving program offer handling in both the sport mode and the conform mode. The technologies offer Collision Prevention Assist with autonomous braking, ensuring safety and security like no other SUV in its class.

The cabin is pure comfort. Leather throughout with trim to satisfy any taste, Mercedes uses chrome, aluminum and wood strips to enhance the stylish curves that make up the structure of this beast. The sporty appeal and easy-use instrument panels and displays mean that, for the driver, knowing the performance and feeling it can all come together on each drive.

All set atop standard 21-inch wheels, this new and unique SUV is something other carmakers will be mimicking very soon.

JURA® GIGA X7 Professional

powdered-

Grindmaster PIC-5 Powdered Specialty Beverage Dispenser

drink machine

This five-flavor, hot powdered

power of two

features a large,

specialty beverage dispenser is

grinders and

lighted display

perfect for dispensing a variety

two heating

that draws

of products, including flavored

systems,

customers’

cappuccinos, gourmet hot cocoas,

the stylish,

attention to the

chai teas, hot apple cider and

professional-

hot, fresh cappuccino, and it can

even soup. Its easy-to-adjust

quality JURA GIGA X7 Professional

even display advertising messaging.

“Direct Product Control” powder

produces two coffee specialties at

Its five 8-pound hoppers will serve

flow gives the user complete

once, providing an unprecedented

up a variety of different cappuccino

control over the strength of the

range of possibilities and fulfilling

flavors to please a large office.

beverages every time. $3,959

the coffee lover’s every need.

$4,005 bunn.com

grindmaster.com

$8,999 jura.com

This hot

With the

The Crossover SUV: According to Kelley Blue Book, the compact-crossover category is among the fastest-growing segments in the industry, while three-row crossovers have become a common suburban shuttle; in between are a variety of roomy, sporty and/or luxurious options.

Photos courtesy of Mercedes-Benz (top and far left), Bunn, Jura (bottom, left to right)

2016 Mercedes-Benz GLE 450 AMG Coupe

BY MIKE HUNTER

The Wilkes MBA A Great Investment Invest in your future.

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MEALS THAT MATTER

BY MIKE HUNTER

FnB: Uniquely Arizona, Nationally Known

Noodles, greens, carrots, kohlarabi, i’itoi onions and sesame $9

BO SSAM BURRITO Roasted pork, pickled apples, rice, hoisin sauce, cocks combs and kimchi purée $12

The creation of two truly passionate industry professionals, Chef Charleen Badman and Front of House Manager Pavle Milic, continues to impress and reinvent with their Old Town Scottsdale eatery, FnB. This well-known hot spot is a culmination of local growers, inventive and flavorful cuisine and beverages that inspire.

FnB has long been an evening must for dinner, but for lunch, it is a perfect midday event. A menu that changes daily means each visit is a new culinary surprise. Some favorites include the Confit Chicken Liver Toast to start, made with egg, pickled beets and pea greens. Richard’s Cold Beef Tenderloin is a great treat.The Chicken Paillard is just a sample of Chef Charleen’s rustic taste. It is a superbly flavorful dish with chickpeas, summer vegetables, kohlrabi and pine nuts. Some of the other examples of FnB’s culinary excitement are the Alaskan Halibut and Pork Flat Iron. The halibut is prepared with chanterelles, haricot verts and corn sauce with a hint of tarragon. The Pork Flat Iron is topped with an incredible mixture of corn, peaches, almonds and chimichurri.

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INBUSINESSMAG.COM

FnB 7125 E. 5th Ave., Scottsdale (480) 284-4777 fnbrestaurant.com

Gone Fishing

Bluewater Grill

Hillstone

Kona Grill

At some of our local restaurants, fish is not only on

Extensive seafood

From sushi to steak,

The dishes are crafted from

menu includes an

the menu may not have

scratch, with an assortment

oyster bar and a sushi

much depth but offers

of fresh sushi on a menu of

bar. And the seafood

plenty of variety as well

oriental-inspired dishes as

theme is carried

as a selection of wines by

well as favorite American

out throughout the

the glass to complement

tastes. With an aquarium

restaurant to create

the meal. The koi pool by

as centerpiece, the

an atmosphere that

the entrance sets up a

restaurant’s ambience is a

celebrates seafaring

nice mood that enhances

relaxing haven from a busy

traditions.

the sophisticated décor.

business schedule.

1720 E. Camelback Rd.,

2650 E. Camelback Rd.,

Four local locations:

Phoenix

Phoenix

Chandler, Gilbert, Phoenix,

(602) 277-3474

(602) 957-9700

Scottsdale

bluewatergrill.com

hillstone.com

konagrill.com

the menu, it’s part of the décor.

NOV. 20 1 5

The midday atmosphere is intimate, rustic and charming. The great windows accentuate the open atmosphere that is so perfect for lunch. The service is impeccable, with knowledgeable and fun wait staff and a team in the kitchen that will impress not only in taste and presentation but in creation as well. Offering a neighborhood appeal, immediately adjacent is a quaint specialty market where connoisseurs can get a multitude of items from fresh-cut flowers to freshly baked breads, from local produce to gourmet local cheeses.

Pavle Milic helped FnB earn national recognition early on by curating the first Arizona-only wine program. Milic continues to champion Arizona winemakers by featuring the state›s best as well as crafting his own boutique wine label, Los Milics, which he produces in collaboration with the celebrated Dos Cabezas Wineworks of Southern Arizona.

Photos courtesy of FnB (top and middle), Kona Grill (bottom)

CHINESE CHICKEN SALAD

TEMPE CHAMBER

ADVANTAGE Winter 2O15 • tempechamber.org

2015 State of the City Address with Mayor Mitchell

By David E. Long, Principal, EdwardJones

Mayor Mark Mitchell

The 2015 State of the City Address with Mayor Mitchell will take place on Tuesday, Nov. 10, from 7:30 to 9 a.m. at the Doubletree by Hilton Tempe-Phoenix. Tickets are $50 for Tempe Chamber members and $70 for non-members.

The event includes breakfast, and the public is invited to attend. Learn more and register at www.tempechamber.org.

State of the City is presented by:

Platinum sponsor:

Gold sponsors: CenturyLink, Silicon Valley Bank, Wentworth Property Company Silver sponsors: SRP, State Farm Insurance, Tempe Tourism Office Copper sponsors: American Airlines, APS, ASU University Affairs, Douglas Wilson Companies, First Transit, Opus Group, PCL, Construction/ Gannett Fleming, Southwest Airlines Co., Southwest Gas Corporation Print sponsor: AlphaGraphics at Elliot and Kyrene

Te m p e C h a m b e r. o r g

At Edward Jones, we believe strongly in the future of Tempe. We came here to build our regional campus in 2001, and as we have grown, so has this city.

We chose Tempe, in part, because of its inviting business climate. Tempe city officials, Arizona State University officials and the Tempe Chamber of Commerce deserve credit for working together in a spirit of cooperation to foster a vital business community that supports Tempe is Perfect Fit for Edward Jones the economic well-being of our city.

Over the years, Edward Jones has set down roots in Tempe and thrived at the ASU Research Park. We started 14 years ago, rattling around in a building that seemed too big for just 64 home-office associates. Now, we are filled to capacity with more than 12 times our original number.

Our growth also occurs in our network of nearly 14,000 financial advisors across the United States. Our firm has identified tremendous potential for us to serve more individual investors in the Tempe-Phoenix metropolitan area. We have begun to intensively grow our number of branch offices in Maricopa and Pinal counties.

As we serve individual investors face to face, our goal here in Tempe is also to be known as a great place to work — while we help the Valley become one of the greatest places to live.

Based upon feedback from our associates, we have been named one of the best places to work by the Phoenix Business Journal for the past 11 years. The Arizona Republic has named us a Top Company to Work for in Arizona in the large company category.

Based upon feedback from our clients, Edward Jones ranked highest in a tie in investor satisfaction with full service brokerage firms, according to the J.D. Power 2015 Full Service Investor Satisfaction Study.

We are proud of what we have achieved in Tempe and proud of what our city has achieved. As good citizens, we try to lead by example — volunteering time and energy to support causes such as Junior Achievement and the United Way. Edward Jones, a FORTUNE 500 firm, provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm’s business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm’s 13,000-plus financial advisors work directly with nearly 7 million clients.

Edward Jones, which ranked No. 6 on FORTUNE magazine’s “100 Best Companies to Work for 2015,” is headquartered in St. Louis. The Edward Jones website is located at www.edwardjones.com, and its recruiting website is www.careers.edwardjones.com.

Member SIPC

T E M P E C H A M B E R A D VA N TA G E

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Front row, left to right: Cadet Bryce Muzzy, of the Air Force ROTC; Cadet Larissa Fluegel, of the Army ROTC; and Midshipman Cameron Gunn, of the Navy ROTC. Back row, left to right: Tom Waldron and Dr. David Gorley.

Military Affairs Committee Honors ROTC The Military Affairs Committee (MAC) of the Tempe Chamber of Commerce was founded more than 30 years ago to facilitate a favorable and mutually rewarding relationship between the Tempe business community and military units here in the Valley. The Tempe Chamber is the first chamber in the Valley to develop a program that rewards outstanding members of the military. For many units, it is their only civilian recognition/award program.

Each month, the committee gathers to honor an outstanding member of the Guard or Reserve who receives an award for his or her service. On Wednesday, November 11, MAC will be presenting scholarships to outstanding students from the ASU ROTC program. Recipients of these scholarships exemplify honor, integrity, hard work and dedication to their education and the United States military. Scholarships will be presented to two outstanding cadets

from the ASU Army and ASU Air Force and one Midshipman from ASU Navy ROTC programs.

This will be hosted at Heidi’s Events and Catering, 2095 W. 15th Street from 11:30 a.m. to 1 p.m. Cost to attend is $25 for members of the Tempe Chamber of Commerce or MAC and $35 for the general public. Reservations can be made at www.tempechamber.org or by calling 480.967.7891.

Tempe Leadership Class XXX: Bike Corral Project SAVE THE DATE:

2016 Tempe Chamber Classic Golf Tournament April 8, 2016 • 7:30 a.m. shotgun start Ravel Golf Club, 3636 E Baseline, Phoenix, AZ 85042 Showcase your business by: • Becoming an event or hole sponsor • Donating to raffle and silent auction • Sending a foursome of golfers For more information, please visit www.tempechamber.org or call 480.967.7891.

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T E M P E C H A M B E R A D V A N TA G E

For more than 30 years, more than 700 diverse, dedicated individuals have participated in the Tempe Leadership Program. Like-minded individuals come together to challenge one another with the task of making a real difference in our community.

Recognizing that Tempe is a thriving bicycle friendly community, Class XXX sought to support the Tempe General Plan and Downtown Parking Plan recommendation for permanent bike valets. The Bike Corral Project is a dualuse facility, providing open bike parking for the park and surrounding area every day, as well as a permanent, secure location for a staffed bike valet during special events.

Class XXX celebrated the grand opening of this project on September 30 along with members of Tempe Leadership Alumni, city leaders, members of the Tempe Chamber and the greater Tempe community.

For more information on the Bike Corral Project, please visit www.tempebikecorral.com.

Looking Back to Move Tempe Forward This past July, members of the Tempe Chamber of Commerce gathered to celebrate the accomplishments of the previous year that have helped strengthen our commitment to the community as well as plans for the future. We took a moment to thank those volunteers who have served on committees and our board of directors, as we welcomed our leadership for the year ahead.

In addition to some motivating words by incoming Chairman of the Board Tim Ronan, guests were entertained by stories from local Valley icon Ted Simons, Emmy Award-winning host and managing editor of the “Arizona Horizon” news program on PBS Channel 8, who served as the keynote speaker.

Below are some of the major accomplishments of the Tempe Chamber and its committees over the past year: The Ambassadors Committee engaged in 53 ribbon cuttings and grand openings and hosted 24 Chamber mixers. They also introduced Restaurant Rush Week, where, for one week of each month, the Ambassadors Committee spotlights a Chamber member restaurant and offers incentives to have a meal there.

The Business Development Council continued the success of the monthly Hot Topics lecture series by offering 11 educational presentations from community leaders and

Frank Woertz, 2015 Volunteer of the Year

Te m p e C h a m b e r. o r g

Incoming Chairman of the Board Tim Ronan with outgoing board members Jeff Mirasola, Kelly Lorenzen and Aqeel Shahid

industry experts, including Mayor Mark Mitchell, Arizona State University President Michael Crow, past Business Women of the Year recipients, members of the Tempe City Council and Tempe Fire Chief Greg Ruiz.

The Business Owners Forum provided a confidential environment where business owners offered free advice and suggestions to their peers to help build and improve their business, as well as kept business owners up to date on current topics affecting the economy and business community.

The Government Relations and Transportation Committee continued the Tempe Chamber’s presence at the Arizona Legislature and U.S. Congress through coalitions and direct lobbying; developed policy agendas for the federal, state and local levels; supported moving forward on the Tempe Streetcar; supported the Central Arizona Project four-cent tax extension; and much more.

The Military Affairs Committee continued its longstanding role as liaison between the business community and the various military units within the Valley by hosting nine luncheons to recognize the accomplishments

and commitment of outstanding men and women serving in military units throughout the area. The committee also presented scholarships to outstanding cadets from the Army and Air Force ROTC and a midshipman from the Navy ROTC. The Tempe Links Classic Committee planned and executed a dynamic golf tournament at ASU Karsten, which continues to serve as one of the Chamber’s most exciting networking fundraisers.

The Women in Business Council ensured the continued viability of the Women in Business Conference and its mission of focusing on reaching, achieving and celebrating success; identified and honored the 20th Business Woman of the Year; completed another successful six-month Mentoring Program to assist women in attaining their personal and professional goals; and hosted a four-part leadership speaker series featuring guest speakers and seminars designed to guide participants on becoming leaders through positive transformation at work and at home.

Learn more about the Tempe Chamber and its committees at www.tempechamber.org.

T E M P E C H A M B E R A D VA N TA G E

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Ribbons Cuttings with the Tempe Chamber are sponsored by ManageStaff

Business is BOOMING!

Each month we celebrate Chamber members! Some are new, some have moved, and some are re-opening. If you are interested in hosting a ribbon cutting for your business, please contact Melody at 480.736.4284 or melody@tempechamber.org.

Integrity First Financial Group

MAD Greens

2000 E. Rio Salado Parkway, Ste. 1215, Tempe, AZ 85281

BackFit Health & Spine

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4535 Lakeshore Dr., Ste. 1, Tempe, AZ 85282

1855 E. Guadalupe, #112, Tempe, AZ 85283

T E M P E C H A M B E R A D V A N TA G E

Primary Residential Mortgage

Advantage Resourcing

9280 S. Kyrene Rd., #134, Tempe, AZ 85284

4500 S. Lakeshore Dr., Ste. 400, Tempe, AZ 85282

Ribbons Cuttings with the Tempe Chamber are sponsored by ManageStaff

Dierks Bentley’s Whiskey Row

Bikram Yoga Tempe

TCH

7525 E. Camelback Rd., #100, Scottsdale, AZ 85251

1825 E. Guadalupe Rd., #103, Tempe, AZ 85283

215 W. Lodge Dr., Tempe, AZ 85283

Te m p e C h a m b e r. o r g

Hazelrock Coffee & Sweets

725 S. Rural Rd., #105, Tempe, AZ 85281

Tempe Leadership Class XXVIII Threadz for Success Teen Resource Center

T E M P E C H A M B E R A D VA N TA G E

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Must Attend Opportunities with the Tempe Chamber of Commerce: Check out these great opportunities to connect and collaborate with community leaders in Tempe:

HOT TOPICS & LUNCH: SPONSORED BY SRP

$25 for Members $35 for Guests See www.tempechamber.org for location details.

USING AMAZON TO ONBOARD, MARKET AND GROW YOUR BUSINESS Thursday, November 19 11:30 a.m. – 1:00 p.m.

THE DROUGHT IN ARIZONA. WHAT’S NEXT? PRESENTED

BY SRP Thursday, December 17 11:30 a.m. – 1:00 p.m.

LUNCHTIME LEARNING FORUM $25 for Members $35 for Guests See www.tempechamber.org for location details.

TELLING YOUR COMPANY’S STORY PRESENTED BY CARY PFEFFER Thursday, November 12 11:30 a.m. – 1:00 p.m.

HOLIDAY HEALTH: HOW TO PARTY WITHOUT THE POUNDS WITH DR. BEN ZORENSKY Thursday, December 10 11:30 a.m. – 1:00 p.m.

BUSINESS BEFORE HOURS: SPONSORED BY WELLS FARGO

Free for Members $10 for General Public TUESDAY, NOVEMBER 17 7:30 a.m. – 8:30 a.m.

Cookies From Home 1605 W. University Dr., #106 TUESDAY, DECEMBER 15 7:30 a.m. – 8:30 a.m.

Landings Credit Union 2800 S. Mill Ave.

BUSINESS AFTER HOURS: SPONSORED BY COX BUSINESS

Free for Members $10 for General Public TUESDAY, NOVEMBER 18, 5:30 p.m. – 7:00 p.m.

Joe’s Crab Shack 1606 W. Baseline Rd. TUESDAY, DECEMBER 16 5:30 p.m. – 7:00 p.m.

Tilted Kilt 660 W. Warner Rd.

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

Campus • Evening • Online

A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).

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T E M P E C H A M B E R A D V A N TA G E

Te m p e C h a m b e r. o r g

T E M P E C H A M B E R A D VA N TA G E

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Board of Directors Chairman of the Board: Tim Ronan Chair-Elect: Brian Wood Treasurer: Kjell Andreassen Vice-Chairs: Jesus M. Campa, Dawn Hocking, Paul Mittman Immediate Past Chair: Kristine Kassel Mary Ann Miller, President and CEO maryann@tempechamber.org Sean Donovan, Vice President, Media and Program Development sean@tempechamber.org Meghan Dorn, Communications Director meghandorn@tempechamber.org Melody Elkin, Vice President, Membership Development melody@tempechamber.org Julie Flanigan, Director of Finance julieflanigan@tempechamber.org

Directors: Peter Adams, Leslie Barrett, Nigel Brooks, Bill Goodman, Misty Howell, Dave Long, Lynda Santoro, Randy Schultz, Robert Nyal Sewell, Glenn Williams, Liz White Ex-Officios: Andrew Ching, Angela Creedon, Joe Hughes, Vic Linoff, Stephanie Nowack, Janeen Rohovit Committee Chairs: Nigel Brooks, Neil Chitel, Andrea Fox, Jeff Heisner, Kristine Kassel, Todd LaBarbera, Janeen Rohovit, Frank Woertz, Lori Zurcher Tempe Chamber of Commerce 909 E. Apache Blvd., Tempe, AZ 85281 480.967.7891 www.tempechamber.org

Shari Hodziewich, Membership Retention shari@tempechamber.org Courtney McIntyre, Director of Operations and Membership Engagement courtneymcintyre@tempechamber.org

GiveToPCHF.org

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T E M P E C H A M B E R A D V A N TA G E

Arizona Technology Report Winter 2O15 aztechcouncil.org

Arizona Technology Council: The Voice of the Technology Industry

In This Issue Plans for Public Policy…Pg. 2 Guide offers ways for lawmakers to support tech in 2016

Ready for Their Close-up…Pg. 4 Arizona tech companies featured in new video series

Venture Madness…Pg. 6 Venture Madness tops Invest Southwest agenda

Management and Staff Steven G. Zylstra President + CEO

Leigh Goldstein Vice President, Operations + Events

Anne Rody Director, Finance + Administration

Merry Lake Merrell Director, Marketing + Communication

Deborah Zack Senior Director, Membership Services

Brian Krupski Director of Membership Services

Melissa Craven Executive Assistant to President + CEO

Alex Rodriguez Vice President, Southern Arizona Regional Office, Tucson

Don Rodriguez Editor

Ron Schott Executive Emeritus, Phoenix Office

Don Ruedy Executive Emeritus, Tucson Office

Justin Williams Executive Emeritus, Tucson Office

Jeremy Babendure, Ph.D. Executive Director, Arizona SciTech Festival

aztechcouncil.org

President’s Message Three times a year we at the Arizona Technology Council get the opportunity to share with In Business readers new information and highlights of our organization’s activities. It’s never a challenge to find topics that give a glimpse of not only what we do but why our state is a leader in science and technology.

Our involvement also is part of the reason we’ve drawn more than 800 member companies — and counting. And our reports just scratch the surface on what’s happening.

Keep in mind, the Council represents just a portion of what makes Arizona so great. But greatness likely doesn’t come to mind for anyone keeping up with news reports about the state: the K-12 education system struggles, public policy can allow biases against anyone not born here or with different lifestyles, the overall job market hasn’t recovered as quickly as we would like.

With such a negative reputation among those who know Arizona only through such headlines, Gov. Doug Ducey has charged the Arizona Commerce Authority with a coordinated effort to improve Arizona’s brand. I definitely don’t dismiss the challenges that Arizona faces. But as we beat ourselves up over shortcomings, we ignore what we already have.

The governor is to be commended for moving to change this ill-gotten generalization. Arizona offers so much, and it’s obvious by just taking a look around. There’s the natural beauty from the Grand Canyon to Sedona and the man-made wonders from Roosevelt Dam to Biosphere II. While other states wrestle with crumbling infrastructures and dwindling water supplies, we have the Central Arizona Project and many new roads to get around on. And don’t forget our people, who offer a rich diversity of cultures and talent.

Steven G. Zylstra, President and CEO, Arizona Technology Council

The governor recently honored our first responders as heroes. In addition to those people who put their lives on the line for us all, we actually are surrounded by heroes every day. Here are just some examples of where they can be found: • State universities: These are more than just places that grant degrees. Who would imagine that a student at The University Arizona would discover water flows on Mars? That is one result of the space exploration that constantly involves our university researchers.

• World-class healthcare for children: If your child’s health has ever taken a turn for the worse, you don’t have to make the trek to Los Angeles for answers. Phoenix Children’s Hospital and Cardon Children’s Medical Center are right here to help.

Every parent of every child saved launches his own branding campaign for the hospitals — and the state.

• TGen: And if the children’s hospitals don’t have the solution today, teams at the Translational Genomics Research Institute are working on it. Through research on its own and special partnerships, TGen’s impact is global.

So before you buy into what the naysayers offer, take stock of what Arizona really offers its residents and the world. Be proactive like Gov. Ducey and work within your own networks to help change poor opinions about our state. We all deserve to be proud of Arizona.

Who We Are

The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office

Tucson Office

2800 N. Central Ave., Suite 1920 Phoenix, AZ 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, AZ 85747 Phone: 520-382-3281 Fax: 520-382-3299 tucson@aztechcouncil.org

ARIZONA TECHNOLOGY REPORT

1

Plans for Public Policy

Guide offers ways for lawmakers to support tech in 2016 As state lawmakers look ahead to the convening of the 53rd Arizona Legislature, so is the Arizona Technology Council.

Headed by the collective efforts of members of its Public Policy Committee, the Council has prepared its 2016 Public Policy Guide to assist elected officials and other stakeholders at all levels of government — federal as well as state — and business as they craft legislation and policies that affect residents and the Arizona economy.

The Council continuously monitors federal, state and local legislation and policies that impact the sustainability and growth of Arizona’s technology industry. To create the guide, the Committee prepared ideas, goals and legislative initiatives that: • Improve the business climate for technology-based businesses, • Provide sources of capital that encourage entrepreneurship, • Create an environment that supports science- and technologyrelated job retention and creation, and • Attract and train the talent required to compete in a global innovation economy.

The results offer a roadmap that lawmakers can follow to achieve successes that can be felt far beyond the technology community.

Specifically for the Legislature, the guide cites these areas as priorities: Recapitalization of the Angel Investment Tax Credit Program – Re-fund the program at the level of $20 million for the life of the program.

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ARIZONA TECHNOLOGY REPORT

In the 2014 legislative session, the Legislature extended the sunset date of the highly successful Angel Investment Tax Credit from 2016 to 2021.

Though the bill extended the life of the program, there were no additional funds allocated to the program and the program has depleted the initial $20 million authorized when the program was created.

Implement the Dodd-Frank small fund exemption – Update Arizona’s investment adviser registration statutes to allow the private fund exemption. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and substantially changed federal financial services and securities laws, including the regulation of investment advisers. The previous exemption for investment advisers with fewer than 15 clients and who did not hold themselves out to the public as investment advisers was eliminated. It was replaced with a “reporting adviser” exemption for advisers who either solely advise venture capital funds or advise “qualifying private funds” with less than $150 million in assets. Most states were able to update the exemptions for adviser registration by rule or order. However, Arizona’s registration exemptions are in statute and will need to be updated through legislation to remove the disincentive to this type of investment in this state.

Appropriately fund the state’s education system at all levels, including pre-kindergarten, K-12 and postsecondary – Short-term reforms should include funding K-12 education according to the Proposition 301 formula as well as alternative ideas to restore K-12, CTE, university and

community college funding. Long-term efforts require comprehensive funding reform to modernize and promote a 21st-century delivery model of education that focuses on performance and accountability.

Create and fund a job training program – Advocate for the Legislature to reinstate a funding structure to the Job Training fund administered by the Arizona Commerce Authority to help attract and grow businesses in Arizona. In the 2015 legislative session, the Job Training tax was repealed from the fiscal 2017 budget, a year earlier than it was scheduled to sunset. This tax provided funds to attract new businesses, and support small and rural Arizona companies by offering reimbursable grant money for job training to new and existing employees.

In addition to these priorities, there are other results that the Council believes should be targeted by the Legislature when its members come together in January: Aerospace, aviation & defense – State leaders and members of the Legislature must continue to develop strategies that will maintain, strengthen and grow the aerospace, defense, aviation and unmanned systems industrial base that will provide Arizona a competitive edge as a top state supporting U.S. national security objectives.

Biosciences – Advocate collaboratively with Arizona stakeholders to support the discovery, development, commercialization, delivery and availability of bioscience innovations. In addition, the Council advocates at the state and federal level for a competitive regulatory and tax environment.

Cybersecurity – There is no question that we are in a cyberwar being waged globally but primarily in the private sector. As a result, American businesses find themselves at the forefront of the battle. Improving cybersecurity is now critical for businesses of all sizes and types.

Energy – To attract investment capital as well as retain and grow its technology business sector, Arizona needs predictable and investable

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energy markets. Additionally, the state needs a secure and adequate water supply.

State budget – Of particular importance is a state budget and process that is strategic and reliable. It should provide for the core needs of the state and reflect opportunities to leverage technology for greater efficiency and effectiveness of state government. For example, legislators should focus on building an Arizona that requires a high-quality education system to develop and maintain the workforce needed to attract and retain high-wage jobs.

On the national level, the Council is involved with many federal policy issues that impact member companies. Through its partnership with the Technology Councils of North America (TECNA) and CompTIA, it is regularly interacting with the congressional delegation on a number of critical issues.

Likely one of the most important topics is trade. The U.S. technology industry needs 21st-century free trade agreements to ensure the movement of data across borders, which is vital to moving internal communications, R&D data, human resources information and processing payments. Additionally, agreements must address intellectual property and trade secrets protections, and the elimination of tariffs for technology goods.

For additional details about the Council’s position on these and other issues, see the Guide at www.aztechcouncil.org.

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ARIZONA TECHNOLOGY REPORT

3

Ready for Their Close-up

Arizona tech community members featured in video series When producers of a new series of videos set out to capture the essence of Arizona’s technology community, they made

a discovery: energy. But this shouldn’t be confused with the tech sector of the same name. Instead, it’s the common motivator they

witnessed among every company featured in the videos.

A team from MediaTHP, a Scottsdale-based media/film production company, traveled throughout the state to capture a cross-section of players that represent the tech scene.

The common thread they found was all were hopeful for Arizona’s technology future, says multimedia producer Remi Vaughn. “Everybody wants to contribute,” she says. “I had no idea.”

When Vaughn initially asked those inside and outside her network whether there was any person or group interested in her original idea to promote Arizona technology through film, she was connected with the Arizona Technology Council and its president and CEO, Steven G. Zylstra. The result is a richly produced collection of interviews and behind-the-scenes views of an array of companies in the state, with Zylstra in a featured role to provide a narrative that ties it all together.

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ARIZONA TECHNOLOGY REPORT

Without Borders The project includes these segments: • Introduction to the Arizona Technology Council • Arizona as an emerging technology hub in the U.S. • The seven technology sectors of Arizona • Supporting entrepreneurs in Arizona • STEM education in Arizona • Unique applications of Arizona technology companies

Member Presence Representatives from tech firms appear on camera to provide examples of the current state of the industry. Participating Council member companies are 4D Technology, Cactus Semiconductor, CyrusOne, Edmunds Optics, Entreprix, First Solar, GPS Insight, Honeywell, Instant Bioscan, Involta, Local Motors, Tallwave and Zygo.

The segments will be rolled out in e-mails to Council members and others on its distribution list. Also included will be related blogs that can be accessed on the Council’s home page, www.aztechcouncil.org. In addition, MediaTHP plans to synthesize the six segments into a 5-minute video that can be used by state agencies and the universities as needed.

For Vaughn, focusing on technology as a topic was no shot in the dark; it was a chance to bring together two worlds in which she has been a part. While she has had the production company for some time, she had spent more attention on her career in cybersecurity. Reaching her pinnacle as a chief information security officer, she has worked for companies such as American Express, Caesars Entertainment, NBC Universal and Warner Bros. Last fall she decided “it was the right time for me to stop.”

She is far from starting from scratch, however, in the creative field. She is a graduate of the National French School of Cinematography in Paris and has a B.A. in mass media and film. That’s in addition to a B.A. in Anglo-Saxon literature and an MSBA in financial management and information technology.

aztechcouncil.org

Arizona, Mexico groups make deal to aid startups In the world of startups, striving to be the best is a given. But that can be easier said than done when first launching. Thanks to a new agreement signed in Mexico City, startups will get the chance to benefit from best practices, no matter on which side of the border they were born.

Leaders of the Arizona Technology Council, the Arizona Business Incubation Association (AZBIA) and Startup Mexico (SUM) signed a cooperation agreement crafted to bolster the economic diversity of the region by cultivating knowledge-based businesses. Besides sharing best practices, they all committed to ensuring investment opportunities and incubators are rendered accessible to new markets.

“Tech startups and other knowledge-based businesses are crucial drivers of economic growth because they provide the high-paying, high-skill jobs that improve the communities around them,” says Steven G. Zylstra, the Council’s president and CEO. “By joining forces with the Arizona Business Association and Startup Mexico, the Council will ensure that the Southwest’s robust technology ecosystem grows and becomes even more interconnected.”

The beneficiaries will be innovators and technology entrepreneurs across Arizona and Mexico. Under the pact, each group also will help facilitate contact between startups and angel investors and other financing opportunities across their markets. The agreement also allows Mexican startups to benefit from incubation programs in Arizona and vice versa. All three organizations have committed to advocate for local startup competitions allowing participants from other markets.

‘Entrepreneurship Wins’ “Whenever the number of funding opportunities goes up, entrepreneurship wins,” says Thomas Rainey, president of the Arizona Business Incubation Association. “This agreement means that more investors will be introduced to more promising startups, accelerating economic growth and job creation.”

“Cooperation between Arizona and Mexico pays great dividends,” says Marcus Dantus, CEO of Startup Mexico. “Over 7,500 Arizona companies export goods, and Mexico accounts for 40 percent of Arizona’s exports. By cross-pollinating Arizona and Mexico’s incubation ecosystem, we can ensure that our mutually beneficial economic growth continues.”

AZBIA is a trade association promoting collaboration and best practices among incubators, accelerators and co-working spaces. Its member organizations represent business, research and education, economic development, government, and other professions involved in supporting entrepreneurs.

Startup Mexico brings together entrepreneurs and private sector experts to develop or improve products and services. As Mexico City’s first innovation campus, it is home to an ecosystem that molds ideas into high-impact businesses. Entrepreneurs, financiers and business consultants collaborate in SUM’s six-month incubation program.

Zylstra also joined Phoenix Mayor Greg Stanton and other Arizona mayors in Mexico City as they explored the opportunities of trade between Arizona and Mexico. Phoenix has been a leader in educating businesses about global export opportunities, and exports have increased year over year. Stanton took this reputation to a new level during the trip when he and Mexico City Mayor Miguel Angel Mancera signed a memorandum of understanding creating a Global Cities Economic Partnership between the two cities.

ARIZONA TECHNOLOGY REPORT

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Venture Madness tops Invest Southwest agenda Why wait until March to follow your bracket? Venture Madness, presented by Invest Southwest in partnership with the Arizona Commerce Authority, offers the chance for 64 of the most promising startups to go head-to-headfor a share of $100,000 in cash prizes.

The competition is a highlight of Invest Southwest, which will be held March 2–4 at Talking Stick Resort in Scottsdale.

After online elimination rounds, Venture Madness culminates onsite with a “Sweet 16” of companies advancing to live pitches to determine which company is the 2016 Venture Madness Champion. Registration is free and open to early-stage firms with proven market traction. The deadline to be considered is 3 p.m.

MST on Dec. 17.

The annual Invest Southwest also serves the entrepreneurial ecosystem through: • Workshops and seminars targeting startups and new investors, • Networking between investors and entrepreneurs, and

• Marketing and public relations opportunities to elevate startup and investor.

Startups looking to reach the next level can benefit by getting advice on pitching to investors, fundraising, legal regulations, hiring

practices, marketing and other important areas.

For investors — well-established venture capital fund or individual — there are opportunities to learn more about working with startups besides meeting owners.

More information is available at investsouthwest.org.

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ARIZONA TECHNOLOGY REPORT

Startups Get Chance to Make Best Pitch When first launching a company, it’s not unusual to wonder: Is anyone listening? For Mesa-based Crowd Mics, winner of the pitch contest at the Arizona Technology Council’s AZ StartupConnect last year, the answer is “yes.”

Telling the audience about the product that turns a cell phone into a personal microphone and voting device at events, company CEO and cofounder Tom Holladay summarized, “At the end of the day, here’s what we’re actually trying to accomplish: We’re trying to get the technology out of the way and just let human beings interact and communicate with other human beings.”

Holladay convinced more than the crowd that day. Since claiming top honors at the pitch contest, Holladay and co-founder brother Sean

were interviewed by BBC Tech; and named top innovators in the event industry for 2015 by BizBash, the event industry’s leading publication.

In addition, the Crowd Mics 2.3 update recently was rolled out.

This leads to the question of who’s next when the pitch contest is held at the 2015 AZ StartupConnect on Dec. 9 at Arizona State University’s SkySong, Building #3, 1475 N. Scottsdale Road, Scottsdale.

Besides plenty of networking opportunities, the all-day event will feature a series of breakout sessions on three tracks geared toward new entrepreneurs: foundation strategies, launch strategies and growth strategies. Costs for participants will be $50 for members and $75 for nonmembers, including lunch and a cocktail reception at the end of the day.

For more details, go to www.aztechcouncil.org.

Taking the Lead

Meet 3 newest members of Council’s board Three executives from technology and securities firms recently were named to the Arizona Technology Council’s Board of Directors for three-year terms ending October 31, 2018.

Mike Chadwick is managing director at CKS Securities — a division of Scottsdale-based CKS Advisors, a full-service capital and growth advisory services provider that supports businesses throughout their entire lifecycle.

Previously, he was senior managing director of YAM Capital, the private equity arm of GoDaddy founder Bob Parsons. He also had been cofounder of CopiaMobile (now nGage Labs), where he was COO for three years. Earlier, Chadwick was vice president of technology at GoDaddy and CTO of its technology business unit. He was charged with developing the company’s core Internet presence products and its worldwide IT operations. Chadwick holds a B.S. in computer science from The University of Arizona.

aztechcouncil.org

Alex J. Iuorio is senior vice president, supplier marketing and business development at Phoenix-based Avnet, one of the largest global distributors of electronic components, computer and IT solutions, embedded technology and services. In his role, he leads the supplier teams along with the business development organization within Avnet Electronics Marketing Americas, where he coordinates its domestic and global initiatives.

Previously, he worked at Hall-Mark Electronics, which was acquired by Avnet. Iuorio holds a B.A. from the University of Illinois, with fields of concentration in mathematics, economics and political science.

Bill Ponseti is president and CEO of InEight of Scottsdale, which provides technology solutions that connect owners, operators and contractors to people, information and projects. He is working to deliver on this vision for engineering, construction and operations (EC&O); oil & gas; mining; utilities; and other project-driven companies by creating comprehensive software solutions that support capital and maintenance projects. During his term, InEight has acquired Hard Dollar Corp., Aeka Consulting, et alia. Previously, he was global vice president and head of the EC&O industry business unit at SAP. He holds an M.S. in quantum physics and a B.S. in theoretical physics, and also was awarded a Ph.D. in quantum mechanics.

ARIZONA TECHNOLOGY REPORT

7

connect + grow

Whether you’re a part of a start-up,

We exist to help science and

in Arizona, we offer resources designed

technology companies of all sizes and stages succeed. By serving as the principal point of connection, the Arizona Technology Council can help you build global partnerships to grow locally, get your innovations noticed and stay ahead of the curve.

emerging or well-established company for you to gain insight, education, and connections. In addition to our networking opportunities, public policy support and professional development programs, our members receive exclusive discounts on products and services and are provided numerous opportunities to get the word out about their unique value.

Take a fresh look and watch us grow with you as we continue to offer you membership benefits that will bring you closer to meeting your business goals.

take a fresh look

@aztechcouncil

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602.343.8324

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Value Balance The Merriam-Webster Dictionary defines balance as “... a state in which different things occur in equal or proper amounts or have an equal or proper amount of importance.” A 2014 Gallup poll found that only 26 percent of Americans have a “great deal” or “quite a lot” of confidence in U.S. financial institutions. That figure is less than half of what it was a decade ago, at its all-time high of 53 percent. In fact, when it comes to public confidence, banks are ranked just below public education and just above the criminal justice system. Congress is ranked at the bottom of the list, at only 7 percent. So it could be worse.

The stark reality is that we in the banking industry struggle with balance every day.

Our customers have grown accustomed to instant access, and they demand a safe environment for their financial resources. At the same time, our legislators are working overtime to regulate an industry that many feel is to blame for everything. The solution?

More regulation.

The truth is that banking regulation in the United States is highly fragmented. The U.S. maintains separate securities, commodities, and insurance regulatory agencies, separate from the bank regulatory agencies — at the federal and state level — that address privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and the promotion of lending to lower-income populations, with regulations on both federal and state levels. The Arizona Bankers Association is working to mobilize bank leaders and employees to enhance grassroots contacts and involvement toward balancing reasonable regulation and oversight with meeting customers’ needs and wants.

Mike Thorell currently serves as the chairman of the Arizona Bankers Association. He has been the president and CEO of Pinnacle Bank since 2008, overseeing all functions and strategic initiatives for the bank, and has more than 25 years of community banking experience.

Thorell has also served as chairman of the Boys & Girls Clubs of Greater Scottsdale and the Fiesta Bowl Committee.

I’m sure that this year’s issue of the In Business Magazine lending guide will bring together critical information to assist businesses with finding the value of developing a relationship with their banker.

Michael J. Thorell Chairman • Arizona Bankers Association President and Chief Executive Officer • Pinnacle Bank

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INBUSINESSMAG.COM

INBUSINESSMAG.COM

NOV. 2015

Funding is consistently among the top concerns shared by our readers. As part of our “Financial” issue of In Business Magazine, our editorial staff has compiled this annual Business Lending Guide. This guide is a listing of local lenders, contacts and resources that will assist business owners in finding lending opportunities. We contacted federally and state-chartered banks, credit unions and selected other lenders and resources to provide information about the variety of loans or assistance programs they offer locally. This guide will be available online and through our partner organizations until November 2016.

Our list is compiled of institutions based here locally who responded to our questionnaire by press time.

Please check the information, as contacts and phone numbers may change throughout the year. Many of the institutions have multiple locations throughout Arizona; this guide lists their main office in the Greater Phoenix area. To participate or advertise in our 2016/2017 guide, please contact us at info@inbusinessmag.com or visit our website at www.inbusinessmag.com. © 2015 InMedia Company, LLC.

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DID YOU KNOW

Criminals Have a Plan to Steal Your Money. What’s Your Plan to Keep It?

by Keith Parsons Cyber criminals have become more sophisticated than ever. Thwarting cyber thieves begins with awareness and education — for business owners and everyone in their organization.

COMMON SCAMS AND WAYS TO DEFEAT THEM “Our bank account was compromised … please wire your payments here, instead.” A trusted vendor sends an email with new wire instructions, claiming that their bank account was compromised.

You wire payment, only to find later the email was fraudulent — and the money is gone. Prevention tip: Always verify changes in payment instructions via telephone or in person, and talk to a trusted person you know. Thieves may hack someone’s email and lurk for months, studying how they sound in their emails and who they talk to.

“Let us prove we can save you money.”

Every business owner wants the best deal possible, especially on overhead expenses like office cleaning services. A recent scam uncovered thieves posing as a cleaning crew to offer their services for just one

night at a cut-rate price to prove what they can do.

Instead of cleaning, they spent the night rummaging through desks and file cabinets, looking for checks, check stock and bank account numbers. Prevention

countries, then move to the Southwest where they

tip: It sounds like a cliché, but if something sounds

count on businesses and their clients to have fewer

too good to be true, it probably is. Do business

checks and balances, and, at smaller organizations,

with people you know, and secure checks and bank

less sophisticated technology. Prevention Tip: Every

statements the same as cash.

organization can download free software from IBM,

“We just don’t have the staff to require two

called Trusteer Rapport, to use in addition to anti-

people to authorize a wire payment.” This is

virus software. Trusteer is critical to specifically help

a common dilemma, especially since automated

guard against financial attacks that come in forms

systems have led to more thinly staffed accounting

other than computer viruses.

operations. Criminals know this pain, and count on it. Thieves use multiple schemes — telephone,

Bank of Arizona bankofarizona.com

email, text messaging, etc. — to steal computer

Keith Parsons is a senior vice president and director of

credentials of the employee in an organization who can authorize wire transfers. Prevention tip: The best thing to make it harder for thieves is to have two people approve every wire, every time.

“Technology to fight fraud is too expensive.”

Criminals make more than $5 billion off of fraud every day. They perfect their techniques in foreign

Financial Crimes at BOK Financial, a top 25 U.S.-based bank providing services as Bank of Arizona, Bank of Albuquerque, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma and Colorado State Bank and Trust. Before entering the banking industry, Parsons worked for the National Security Administration as an intelligence analyst and in Counter Narcotics as a senior intelligence analyst.

Helping you keep the wheels of business turning As a small business owner, you keep the wheels turning in our country. That's why BBVA Compass is committed to the success of the small businesses like yours. Whether you are just starting out or positioning your business for growth, our seasoned banking professionals provide financing solutions that really work for you. Give us a call today.

James Kirkham, VP / (602) 499-3448

1-800-COMPASS • bbvacompass.com

banking on a brighter future.

BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC.

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NOV. 2015

INBUSINESSMAG.COM

Take your business to new places

If you’ve got a vision, an SBA loan can help you get there. Our longer terms and lower down payments can help your business grow and keep our communities strong and vibrant.

An SBA loan can help you: • Purchase commercial real estate • Acquire a business • Expand your business • Buy equipment • Build inventory Stop by and talk with a banker today.

You can also give us a call at 1-800-545-0670 (Monday – Friday, 7:00 a.m. – 7:00 p.m. Central Time) or visit us at wellsfargo.com/biz to learn more.

Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2013.

All financing is subject to credit approval and SBA eligibility. © 2015 Wells Fargo Bank, N.A. All rights reserved. (1687705_16544)

*

1 SBA lender* for the 5th year

#

Borrow with confidence

BUSINESS LENDING GUIDE BANKS Alerus Bank 17045 N. Scottsdale Rd. Scottsdale, AZ 85255 Contact: Rob Schwister Phone: (480) 905-2407 Website: alerusfinancial.com Types of Loans/Services: SBA loans, term loans, lines of credit

Alliance Bank of Arizona 1 E. Washington St. Phoenix, AZ 85004 Contact: Ruza Radulovic Phone: (602) 386-5500 Website: alliancebankofarizona.com Types of Loans/Services: corporate banking, commercial real estate lending, public finance, business and professional banking, SBA lending, treasury management services

Arizona Bank & Trust 2036 E. Camelback Rd. Phoenix, AZ 85016 Contact: Troy Norris Phone: (480) 844-4558 Website: arizbank.com Types of Loans/Services: commercial loans, including lines of credit, equipment, real estate, construction

Arizona Business Bank 2600 N. Central Ave., Ste. 2000 Phoenix, AZ 85004 Contact: Toby Day Phone: (602) 240-2700 Website: azbizbank.com Types of Loans/Services: revolving lines of credit, term loans, letters of credit, real estate, SBA loans

Bank 1440 7010 E. Chauncey Ln., Ste. 120 Phoenix, AZ 85054 Contact: Darcie Storms Phone: (623) 334-6200 Website: bank1440.com Types of Loans/Services: commercial term mortgages, business loans, SBA loans

Bank of America, NA

BNC National Bank

Commerce Bank of Arizona

201 E. Washington St. Phoenix, AZ 85004 Contact: Small Business Banking Phone: (888) 287-4637 Website: bankofamerica.com Types of Loans/Services: lines of credit, term loans, SBA lending

20175 N. 67 Ave. Glendale, AZ 85308 Contact: Scott Spillman Phone: (602) 508-3760 Website: bncbank.com Types of Loans/Services: revolving lines of credit for short-term operating needs, working capital loans, term loans for business equipment, commercial real estate loans, SBA loans, 504 commercial real estate loans, business agricultural loans, letters of credit

4110 N. Scottsdale Rd., Ste. 120 Scottsdale, AZ 85251 Contact: Larry O’Malley Phone: (480) 253-4504 Website: commercebankaz.com Types of Loans/Services: businessrelated loans of all types

Bank of Arizona, NA 16767 N. Perimeter Dr. Scottsdale, AZ 85260 Contact: Business Banking Department Phone: (602) 808-5331 Website: bankofarizona.com Types of Loans/Services: revolving lines of credit, real estate lines of credit, equipment or vehicle term loans, real estate term loans, construction financing, equipment leasing, SBA loans

BBVA Compass Bank 4010 E. Thomas Rd. Phoenix, AZ 85018 Contact: Romeo Zavala Phone: (602) 522-2580 Website: bbvacompass.com Types of Loans/Services: SBA loans, lines of credit, commercial real estate lending, working capital financing, residential construction, energy lending, business leasing, business credit cards

Biltmore Bank of Arizona 5055 N. 32nd St. Phoenix, AZ 85018 Contact: Richard Endicott Phone: (602) 992-5055 Website: biltmorebankaz.com Types of Loans/Services: commercial lines, SBA, USDA, solar, SFR pools, Arizona Commerce Authority, industrial, treasury management products

BMO Harris Bank One E. Camelback Rd. Phoenix, AZ 85012 Contact: Don Satiroff Phone: (602) 650-3850 Website: bmoharris.com Types of Loans/Services: business and corporate lending, lines of credit, equipment leasing, asset-based lending, commercial real estate, SBA & community development loans, treasury management services

Visit us online at www.inbusinessmag.com to see more on each lender, including contacts

Comerica Bank 425 S. Mill Ave. Tempe, AZ 85282 Contact: Sue Ligocki Phone: (480) 966-0846 Website: comerica.com Types of Loans/Services: commercial property loans, business lines of credit, business loans, credit cards

Enterprise Bank 3900 E. Camelback Rd., Ste. 180 Phoenix, AZ 85018 Contact: Zach Morrison Phone: (602) 824-5700 Website: enterprisebank.com Types of Loans/Services: commercial loans, equipment, real estate, construction, SBA loans, lines of credit

First Fidelity Bank 6232 N. 32nd St. Phoenix, AZ 85018 Phone: (602) 912-5555 Website: ffb.com Types of Loans/Services: revolving lines of credit, commercial real estate, residential real estate, equipment, SBA, oil and gas production loans, commercial leasing

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #1: Not having a relationship with your business banker.

It is important to have a banker who knows you and your business to help make the best financial decisions. Your banker is well versed in all of the financing options available to your business and will be the best ally to get you up and running in the most efficient and financially responsible way.

How to Avoid It: Whether you’re starting your business, thinking about expanding or just looking for sound advice, your first step should be to make an appointment with your banker. Be prepared to discuss previous financial information, current finances and the goals for your business. When your banker has all of the details, he or she will be able to point your business in the right direction, connect you with the right people within the bank and advise as necessary on the next steps.

—Sherri Slayton, executive vice president of Alliance Bank of Arizona, a division of Western Alliance Bank, which is the primary affiliate of Phoenix-based Western Alliance Bancorporation, one of the fastest-growing bank holding companies in the U.S. Alliance Bank of Arizona alliancebankofarizona.com

and areas of expertise.

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INBUSINESSMAG.COM

Geared for growth?

We’ll solve your cash problem.

Startup. Established. Middle Market.

The need for working capital doesn’t discriminate.

Liquid Capital of Arizona offers customized working capital solutions to companies geared for growth. Our array of financing products ranges from asset-based loans and factoring to inventory finance. The most common scenarios where we are able to help are: n A business does not qualify for bank financing

n A business has financing but needs additional capital to fund growth

n A business has specialized needs not met by their bank or funding source

(e.g., export sales, or large sales to select customers)

Liquid Capital of Arizona is locally owned. Clients deal directly with the decision maker, who also funds the deals. In many cases cash is available within a few days. Our approach is unique; no hidden administrative, minimum or termination fees.

We don’t lock clients into long-term contracts, either.

If you need working capital to move your business forward, we welcome the opportunity to meet and discuss your options.

For more information: Joel Gottesman Liquid Capital of Arizona jgottesman@liquidcapitalcorp.com Phone: 480-473-2105 Joel Gottesman, owner and President of Liquid Capital of Arizona, has 30 years of experience as an attorney, banker, and small business owner.

We help business grow.

8679 East San Alberto Drive, Suite 201 Scottsdale, AZ 85258 www.az.liquidcapitalcorp.com

Liquid Capital of Arizona is part of a network of 80 independently-owned businesses throughout the U.S., Canada and Mexico.

BUSINESS LENDING GUIDE First International Bank & Trust

Gateway Bank

JPMorgan Chase

Mutual of Omaha Bank

2231 E. Camelback Rd. Phoenix, AZ 85016 Contact: Craig Ealy Phone: (480) 946-2967 Website: firstintlbank.com Types of Loans/Services: agriculture, business, SBA loans

6860 E. Warner Rd. Mesa, AZ 85212 Contact: James L. Christensen Phone: (480) 358-1000 Website: gcbaz.com Types of Loans/Services: commercial lending

201 N. Central Ave. Phoenix, AZ 85004 Contact: SBA Lending Department Phone: (888) 536-3722 Website: chase.com Types of Loans/Services: commercial lending, SBA lending

First Scottsdale Bank

Goldwater Bank

Johnson Bank

9200 E. Pima Center Pkwy.

Scottsdale, AZ 85258 Contact: Kevin Halloran Phone: (480) 458-2249 Website: mutualofomahabank.com Types of Loans/Services: commercial and industrial, commercial real estate, SBA, mortgage, personal and association lending

15190 N. Hayden Rd. Scottsdale, AZ 85260 Contact: Steve Heselp Phone: (480) 998-8408 Website: fnbscottsdale.com Types of Loans/Services: commercial lending, SBA loans

7135 E. Camelback Rd., Ste. 201 Scottsdale, AZ 85251 Contact: Robert Simpson Phone: (480) 281-8232 Website: goldwaterbank.com Types of Loans/Services: business lending, mortgage lending, consumer lending

3131 E. Camelback Rd., Ste. 100 Phoenix, AZ 85016 Contact: Cathy Camacho Phone: (602) 381-2100 Website: johnsonbank.com Types of Loans/Services: lines of credit, commercial mortgages, equipment leasing, SBA loans

Great Western Bank

KS StateBank

1721 N. Arizona Ave., Ste. 1 Chandler, AZ 85225 Contact: David Telya Phone: (480) 917-0139 Website: greatwesternbank.com Types of Loans/Services: commercial and consumer loans

3877 N. 7th St., Ste. 150 Phoenix, AZ 85014 Contact: Frank Coumides Phone: (602) 332-7828 Website: ksstatebank.com Types of Loans/Services: commercial loans to small and mid-size businesses for equipment, real estate and expansion

FirstBank 2525 E. Camelback Rd., Ste. 115 Phoenix, AZ 85016 Contact: Angel Sanchez Phone: (602) 667-6900 Website: efirstbank.com Types of Loans/Services: commercial real estate, construction, SBA loans, lines of credit, residential real estate

Meridian Bank, NA

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #2: Not having a business plan or anticipating cash needs for seasonality or growth. A business plan allows you as the owner to prioritize your objectives and plan accordingly for the future.

This plan could include projected growth in revenues, employee needs, and necessary cash needs that will impact the business. A business plan also allows the bank to have a perspective on the future plans and cash or capital needs of your business.

How to Avoid It: Discuss with your banker the short- and long-term goals for your business. Look at different scenarios for growth or seasonality and how those scenarios will affect your need for cash.

Your banker will be able to give you a better idea of the plans that should be put in place to meet your requirements. You should also talk to your banker about having a back-up plan should there be unexpected changes in your business to ensure the end-goal is still going to be attainable. —Sherri Slayton, executive vice president of Alliance Bank of Arizona

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NOV. 2015

2700 N. Central Ave., Ste. 110 Phoenix, AZ 85004 Contact: Erik Frandsen Phone: (602) 274-7500 Website: meridianbank.com Types of Loans/Services: term/ installment loans, business line of credit, SBA loans, commercial loans

Metro Phoenix Bank 4686 E. Van Buren St., Ste. 150 Phoenix, AZ 85008 Contact: Michael Morano Phone: (602) 346-1800 Website: metrophoenixbank.com Types of Loans/Services: commercial lending

MidFirst Bank 3030 E. Camelback Rd. Phoenix, AZ 85016 Contact: Barb Bandura Phone: (602) 801-5000 Website: midfirst.com Types of Loans/Services: SBA loans, business express loans, business lines of credit, business term loans, commercial real estate lending, business equipment lease financing

National Bank of Arizona 6001 N. 24th St., Phoenix, AZ 85016 Contact: Mike Casa Phone: (602) 235-6000 Website: nbarizona.com Types of Loans/Services: consumer, residential real estate, commercial, corporate, treasury management, commercial real estate, wealth management, nonprofit, energy lending

Parkway Bank 11011 N. Tatum Blvd.

Phoenix, AZ 85028 Contact: Frank Sutter Phone: (602) 765-8501 Website: parkwaybank.com Types of Loans/Services: an array of conventional business loans as well as SBA financing

Pinnacle Bank 14287 N. 87th St., Ste. 123 Scottsdale, AZ 85260 Contact: Tim Romano and Scott Willits Phone: (480) 609-0055 Website: pinnaclebankaz.com Types of Loans/Services: lines of credit, equipment loans, term loans, real estate construction loans, standby letters of credit, SBA loans

RepublicBankAz 909 E. Missouri Ave. Phoenix, AZ 85014 Contact: Ralph Tapscott Phone: (602) 277-2500 Website: republicbankaz.com Types of Loans/Services: commercial loans and lines of credit, commercial real estate loans, commercial construction loans, SBA loans

INBUSINESSMAG.COM

BUSINESS LENDING GUIDE Stearns Bank N.A., Arizona 9225 E. Shea Blvd.

Scottsdale, AZ 85260 Contact: Tom Hozier Phone: (480) 314-4200 Website: stearnsbank.com Types of Loans/Services: SBA loans, commercial and construction lending, equipment finance and leasing, USDA rural development loans

TCF Bank 11 S. McClintock Dr. Tempe, AZ 85281 Contact: Consumer Loans Department Phone: (800) 823-5363 Website: tcfbank.com Types of Loans/Services: working capital lines of credit, term loans, commercial real estate loans, leasing, business credit cards

U.S. Bank SBA Division Regional Office 2222 E. Camelback Rd. Phoenix, AZ 85016 Contact: SBA Division Administrative Office Phone: (800) 431-7101 Website: usbank.com Types of Loans/Services: SBA loans, lines of credit, equipment leasing, term loans, agricultural loans, quick credit, commercial real estate

Washington Federal 2196 E. Camelback Rd., Ste. 100 Phoenix, AZ 85016 Contact: Scott Stemm Phone: (602) 553-7434 Website: washingtonfederal.com Types of Loans/Services: commercial lending, commercial real estate financing, lines of credit, term loans, business credit cards, SBA loans

Visit us online at www.inbusinessmag.com to see more on each lender, including contacts and areas of expertise.

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #3: Lack of quality accounting and financial information.

It is important to have access to and utilize qualified accounting or bookkeeping resources not only to help you have appropriate accounting and inventory control, but to maintain the accounts receivable and payable systems that track financial information and produce financial statements. Accurate financial statements are crucial to obtaining a loan and to managing your business.

How to Avoid It: Invest in an accounting system or bookkeeping system at your business, or hire a bookkeeper or accounting service to produce periodic financial reporting that includes profit and loss statements and balance sheets. Secure online banking systems and bill pay systems that integrate with your accounting or bookkeeping systems are critical to seamlessly producing monthly, quarterly and annual financial statements and will assist with tax return preparation. —Sherri Slayton, executive vice president of Alliance Bank of Arizona

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BUSINESS LENDING GUIDE Wells Fargo Bank 100 W. Washington St. Phoenix, AZ 85003 Contact: Jennifer Anderson Phone: (602) 378- 5133 Website: wellsfargo.com/biz Types of Loans/Services: business loans of all types, including real estate, lines of credit, equipment and SBA

West Valley National Bank 5635 N. Scottsdale Rd., Ste. 150 Scottsdale, AZ 85250 Contact: Debra Ingle Phone: (480) 429-6750 Website: wvnb.net Types of Loans/Services: SBA 7(A), SBA 504, working capital, owneroccupied real estate, A/R lines of credit

Western State Bank 7001 N. Scottsdale Rd., Ste. 1000 Scottsdale, AZ 85253 Contact: Shane Randall Phone: (480) 596-0883 Website: westernbanks.com Types of Loans/Services: commercial term loans, commercial lines of credit, construction lines of credit, lease financing, corporate credit cards, agricultural loans

CREDIT UNIONS Arizona Central Credit Union 2020 N. Central Ave., Ste. 800 Phoenix, AZ 85004 Contact: Jeffrey Frank Phone: (602) 523-8342 Website: azcentralcu.org Types of Loans/Services: SBA loans, commercial real estate loans, lines of credit, term loans

Arizona State Credit Union 2355 W. Pinnacle Peak Rd. Phoenix, AZ 85027 Contact: Pat Blaine Phone: (602) 467-4262 Website: azstcu.org Types of Loans/Services: term loans, unsecured lines of credit, commercial real estate mortgages, business vehicle loans, business credit cards, business overdrafts

Credit Union West 2402 W. Grant St. Phoenix, AZ 85009 Contact: Business Service Center Phone: (602) 631-3200 Website: cuwest.org Types of Loans/Services: business loans

Desert Schools Federal Credit Union 148 N. 48th St. Phoenix, AZ 85034 Contact: Herb Ramirez Phone: (602) 663-8674 Website: desertschools.org Types of Loans/Services: working capital financing, equipment loans, owner-occupied real estate, commercial real estate

TruWest Credit Union 345 W. Warner Rd. Tempe, AZ 85284 Contact: Daniel Desmond Phone: (480) 441-5900 Website: truwest.org Types of Loans/Services: business loans, secured and unsecured lines of credit, business credit cards, commercial real estate lending, equipment financing

ALTERNATIVE LENDING Altima Business Solutions 1820 E. Ray Rd. Chandler, AZ 85225 Contact: Andre Wilson Phone: (480) 264-5150 Website: altimabusinesssolutions.com Types of Loans/Services: angel/ venture capital, private equity, merchant funding, equipment leasing, factoring, contract financing

FSW Funding

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #4: Managing the profitability of the business for tax purposes. One attractive income tax strategy is trying to reduce tax liability by reducing the taxable income of the business through various tactics. While this may result in lower tax liabilities in the current period, it can also reduce or eliminate reported income, which is typically the number used when qualifying for a loan.

How to Avoid It: Talk to your accountant and banker when you are considering deferring recognition of income, pre-paying expenses, expensing items that could be capitalized or accelerating depreciation for tax purposes. These strategies should be considered in balance with the need to meet debt service coverage and other loan requirements. —Sherri Slayton, executive vice president of Alliance Bank of Arizona

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NOV. 2015

4530 E. Shea Blvd., Ste. 142 Phoenix, AZ 85028 Contact: Robyn Barrett Phone: (602) 535-5984 ext. 1 Website: fswfunding.com Types of Loans/Services: choose or add lines of credit, letters of credit, factoring, asset-based lending

Liquid Capital 8679 E. San Alberto Dr., Ste. 201 Scottsdale, AZ 85262 Contact: Joel Gottesman Phone: (480) 473-2105 Website: az.liquidcapitalcorp.com Types of Loans/Services: factoring, purchase order and inventory finance, exports and Quick Pay programs

Sir Mortgage & Finance 4040 E. Camelback Rd., Ste. 210 Phoenix, AZ 85018 Contact: Greg Sir Phone: (602) 954-6677 Website: sirmortgage.com Types of Loans/Services: residential, commercial and construction loans

Southwestern Business Financing Corporation 3200 N. Central Ave., Ste. 1550 Phoenix, AZ 85012 Contact: Teresa Maldelin Phone: (602) 495-2185 Website: swbfc.com Types of Loans/Services: SBA 504 financing

LENDING RESOURCES ACCIÓN P.O. Box 41237 Tucson, AZ 85717 Phone: (520) 682-3648 Website: accionaz.org Types of Services: loans, lines of credit, management services, investment, governance

Arizona Commerce Authority 333 N. Central Ave., Ste. 1900 Phoenix, AZ 85004 Phone: (602) 845-1200 Email: smallbiz@azcommerce.com Website: azcommerce.com Types of Services: business-growing strategies, market research, licensing information, statewide resource information, workforce assistance

Arizona Loans for Assistive Technology Institute for Human Development University Affiliated Program Northern Arizona University 2400 N. Central Ave., Ste. 300 Phoenix, AZ 85004 Contact: Martha Lewis Phone: (602) 776-4670 Website: azlat.org Types of Services: loans for persons with disabilities to purchase assistive technology, training and technical assistance; equipment reutilization; Self Employment for Entrepreneurs with Disabilities program

Center for Entrepreneurial Innovation 275 N. GateWay Dr., Phoenix, AZ 85034 Phone: (602) 286-8950 Website: ceigateway.com Types of Services: incubator start-up and early-stage companies; access to facilities space; mentorship opportunities; business development resources; weekly educational seminars open to the public; and more

INBUSINESSMAG.COM

BUSINESS LENDING GUIDE City of Phoenix Expand Program 200 W. Washington St. Phoenix, AZ 85003 Contact: Christine Mackay Phone: (602) 262-6005 Website: phoenix.gov/econdev Types of Services: assistance in finding loans for businesses, collateral reserve deposits

Industrial Development Authority (IDA) of Maricopa County c/o Maricopa County Administration Office 301 W. Jefferson St., 10th Floor Phoenix, AZ 85003 Contact: Greg Ghalfi Phone: (602) 506-1888 Website: mcida.com Types of Services: conduit financing, project financing, manufacturing facility bonds

Neighborhood Economic Development Corporation (NEDCO)

SBA – Small Business Administration (SBA)

10 W. Main St. Mesa, AZ 85201 Phone: (480) 258-6927 Website: nedco-mesa.org Types of Services: alternative financing programs for new and start-up businesses, entrepreneur education, loan readiness assessment, business credit repair, loan application assistance

2828 N. Central Ave., Ste. 800 Phoenix, AZ 85004-1093 Contact: Robert Blaney Phone: (602) 745-7200 Website: sba.gov Types of Services: loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses

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Take a fresh look and watc grow with h us you as we cont to offer inue you mem bership that will benefits bring you closer meeting to your busi ness goal s.

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Small Business Development Center (SBDC)

2828 N. Central Ave., Ste. 800 Phoenix, AZ 85004-1093 Phone: (602) 745-7250 Website: score.org Types of Services: resources, templates and tools to assist entrepreneurs in developing tools and plans

2411 W. 14th St. Tempe, AZ 85281 Phone: (480) 731-8720 Website: azsbdc.net Types of Services: assistance for small businesses in every stage of development, SBA loan assistance, free one-on-one business counseling, workshops and training programs

Visit us online at www.inbusinessmag.com to see more on each lender, including contacts and areas of expertise.

INBUSINESSMAG.COM

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CHECK IT OUT ONLINE

@aztechco uncil aztechcou 2800 n. ncil 602.3 central avenue 43.8324 • suite aztechcou 1920 • phoenix, ncil.org arizona 85004

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Lending

Major Ban ks Commu nity Ban ks Credit Uni ons s & Res ourc

Institution

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The 2015/2016 edition of the In Business Magazine Business Owner’s Lending Guide will be available on our website until October 2016.

NOV. 2015

61

Out In Front.

When Arizona Snowbowl needed a lift, we said “how high?”

“Arizona Snowbowl isn’t your typical business — and Alliance isn’t your typical bank. They’ve taken the time to understand the needs of a seasonal business like ours and have been a catalyst in growing Snowbowl.”

– Eric Borowsky, Managing Partner, Arizona Snowbowl

602.952.5400

AllianceBankofArizona.com

A division of Western Alliance Bank. Member FDIC.

NOVEMBER 2015

In Business Magazine is pleased to offer the MarketPlace for our readers. This section is for

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For more information, please contact us at (480) 588-9505 or by email at

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INBUSINESSMAG.COM

Howard, Bryan, 28

Mitchell, Mark, Mayor, 35

Ruiter, Annet, 28

Anderson, Jennifer, 66

Humphrey, Chevy, 28

Murray, Rick, 20

Simons, Ted, 29, 37

Bly, Robert W., 27

Iuorio, Alex J., 49

Nelson, Randy H., 27

Slayton, Sherri, 57, 58, 59, 60

Carabello, Laura, 16

Kielp, Liesl Harder, 10

O’Connor, January, 16

Stanton, Greg, Mayor, 29, 47

Chadwick, Mike, 49

Leach, Julie, 11

Parsons, Keith, 54

Thorell, Michael J., 54

Cornelius, Dennis, 10

Leach, Mike, 11

Patterson, Mike, 20

Vaughn, Remi, 46

Crow, Michael M., 29

Long, David E., 35

Perelman, Jeff, 14

Walsh, Kevin J., 18

Dantus, Marcus, 47

Mancera, Miguel Angel, Mayor, 47

Ponseti, Bill, 49

Wilson, Bob, 20

Denning, Michael, Ph.D., 20

Martin, Jeffrey, 13

Priscella, Kristin, 28

Wilson, Brady, 26

Feeney, Matthew, 9

McLane, Chuck, 20

Rainey, Thomas, 47

Zylstra, Steven G., 43

Gottesman, Joel, 10

Melgoza, César M., 12

Ronan, Tim, 37

Hattori, Shu, 27

Miller, Liz, 12

Rondeau, Kat, 16

CPR Strategic Marketing Communications, 16

Mesa Chamber of Commerce, 31

SRP, 14, 15

NewSpring Pharmacy, 63

Startup Mexico, 47

Organization for Women in International Trade – Phoenix, 31

Stearns Bank, 59

1100KFNX, 41 Abrazo Community Health Network, 16 AguaSAC LLC, 10 Ahwatukee Foothills Chamber of Commerce, 30 Alerus, 7 Alliance Bank of Arizona, 3, 57, 58, 59, 60, 62 APS, 19 Arizona Bankers Association, 54 Arizona Business Incubation Association, 47 Arizona Hispanic Chamber of Commerce, 30 Arizona Science Center, 28 Arizona Small Business Association, 20, 31 Arizona State University, 20 Arizona Technology Council, 29, 43 Avnet, 49

Cybrary, 11 Desert Schools Federal Credit Union, 6

Our Town America, 6

Downtown Phoenix Inc., 64

Phoenix Children’s Hospital Foundation, 42

Edward Jones, 35

Phoenix Metro Chamber of Commerce, 31

eWoman Network – Phoenix/Scottsdale, 30

Phoenix Philanthropy Group, The, 28

FnB, 34 FSW Funding, 63 Gallagher & Kennedy, 2 Geoscape, 12 Gilbert Chamber of Commerce, 31

Pinnacle Bank, 54, 52 Planned Parenthood Arizona Inc., 28 Polsinelli, 20

Banner Health Network, 68 BBVA Compass, 54 Bluewater Grill, 34 BOK Financial, 54

Stoney-Wilson Business Consulting, 20 Sundt Construction, Inc., 14 Tempe Chamber of Commerce, 30, 31, 35 Tempe, City of, 35 ThinkSmallBiz, 64 W. P. Carey School of Business, 20 Wells Fargo Bank, 48, 55, 66 West Valley National Bank, 61 WESTMARC, 30

Potty Pals, 11 Quarles & Brady LLP, 18

Global Chamber, 30

Scottsdale Area Chamber of Commerce, 30, 31

GoGargle, 16

Snell & Wilmer, 9

Wilkes University, 33 Workstreampeople, 11 Yulex Corporation, 13

GPS Insight, 5 Grand Canyon University, 40

CHECK US OUT

Grindmaster, 32

Bank of Arizona, 54

Hillstone, 34 Hinted, 11 IKEA, 2 InEight, 49 Infusionsoft, 64

Bunn, 32

Juice Inc., 26

Cathy Hotchkiss, 64 CBIZ, 20

JURA, 32 Kona Grill, 34

Chandler Chamber of Commerce, 30 Chief Marketing Officer Council, 12 CKS Advisors, LLC, 10 CKS Securities, 49 CopperPoint, 7

Cushman & Wakefield, 17

Liquid Capital of Arizona, 10, 57 Local First Arizona, 6, 31 Maricopa Corporate College, 68 MediaTHP, 11, 46 Mercedes-Benz, 32

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

/inbusinessmagphx

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

@inbusinessmag

65 20NOV.1 5 INBUSINESSMAG.COM

FEBRUARY 2015

A CANDID FORUM

Raising Awareness of Financial Resources Women in business, in particular, are under-informed about financial resources

by Jennifer Anderson According to a recent Wells Fargo/Gallup national study, “Diverse Small-Business Owners Share Their Experiences,” 71 percent of women business owners say they feel very satisfied as a business owner and 89 percent would own a business rather than do anything else. Yet, surprisingly, the survey also found that women are largely unaware of the many resources available to help them access capital, and even expressed less overall interest than men in learning about credit-related issues, particularly choosing the type of credit that is best for their business needs (although both are low, at 17 percent versus 28 percent).

In today’s economic environment, acquiring capital to operate and grow is one of many challenges businesses face. To maximize the chances of being approved for a loan, it’s important that business owners be prepared to answer these questions that lenders will typically ask: How much do you need? What will you do with the financing? How will you pay it back?

HOW MUCH DO YOU NEED? This the most fundamental question. Having a precise answer is the business owner’s first step in proving she is prepared. If the business owner is not sure how much to ask for, she should revisit her business plan and business financials — considering what capital is available and what is projected to be needed to reach the business goals.

HOW WILL YOU REPAY YOUR LOAN? The last question requires the most detailed documentation.

Current financials will show how much cash the business generates now. It is also necessary to prepare cash flow projections: best estimates of how much it’s anticipated that the business will generate after receiving the loan. This should include principal and interest payments in the forecasts, keeping the loan terms within bank policy guidelines.

If the loan is secured by collateral, the business owner should be prepared to explain exactly what tangible assets she can offer as a guarantee. Examples are equipment, a house or a car. In addition to collateral, the business owner should also be prepared to share how much cash she will personally put into the business. When outlining debts and assets, therefore, it is helpful to include personal financial information as well.

This will help the lender get a sense of the business owner’s personal financial stability.

It will be important for the business owner to explain clearly what she intends to do with the loan and why she expects the venture to succeed. It is also important she be prepared to discuss her own business qualifications. Because the success of a small business largely depends on leadership, the business owner’s skills and knowledge are an important part of the company’s profile.

WHY DO YOU NEED IT? This is really a two-part question. Lenders are interested in knowing whether the business owner is seeking financing to solve a problem or to seize an opportunity.

It’s important to maintain an up-to-date business plan and revise it regularly as the business grows. Those just getting started can find guidance online, such as a step-by-step guide available on the Business Plan Center at WellsFargoWorks.com.

Jennifer Anderson is senior vice president and Business Banking manager for Wells Fargo in Arizona. She is responsible for Wells Fargo’s 200-person Arizona Business Banking team serving businesses with annual revenues up to $20 million, and specialty units serving governments, nonprofits, agribusiness and professionals. The team is housed in 13 Business Banking offices across Arizona. wellsfargo.com

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Resources for Women Today, there’s a growing list of government, nonprofit and private organizations that provide resources for women in business. Here are a few to consider: Financial service providers that have a special

U.S. Small Business Administration: The SBA operates Women’s Business

focus on women-owned businesses: More

Centers across the country — a network of educational centers designed to assist

financial institutions are recognizing the importance

women in starting and growing small businesses. When a business owner is

and growth of the segment — nearly 30 percent of

ready for a loan, she may want to consider an SBA loan, which is offered through

businesses are owned by women today. As a result,

banks and other lending institutions. SBA loan products, such as SBA 7(a) and

more financial institutions are adding services and

504 loans, can be good options for some creditworthy small-business owners

programs specially geared toward helping women

who may not able to obtain conventional loans or loan terms that meet their

learn about financing options and how to obtain a

business needs. sba.gov/tools/local-assistance/wbc

small business loan. At Wells Fargo, for example, we set a commitment to lend a cumulative total of

National Association of Women Business Owners: With more than 5,000

$55 billion to women-owned businesses by 2020,

members and 60 chapters, NAWBO is a valuable resource helping to propel

in addition to offering numerous resources for small

women business owners into greater economic, social and political spheres of

businesses in general. wellsfargoworks.com

power worldwide. nawbo.org

In the U.S., more than 9.1 million businesses are owned by women, employing nearly 7.9 million people and generating $1.4 trillion in sales as of 2014. —NAWBO, WBO statistics 2015 nawbo.org/resources/women-business-owner-statistics

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