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M O N T E R E Y B AY

RSB REGIONAL SMALL BUSINESS | WINTER 2015/2016

MONTEREY

S A N TA C R U Z

S A N BINSIGHT E N• MOMENTUM I T O • IMPACT

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WINTER 2015/2016

CONTENTS

RSB

REGIONAL SMALL BUSINESS VOLUME 1 ISSUE 2 WINTER 2015/2016 PUBLISHERS MICHAEL MEARA ANDY VAN VALER EDITOR ALICIA SCHOLER PROOFREADER JOSIE COWDEN CREATIVE DIRECTOR JOSH BECKER WRITERS DAMON ORION JESSICA M. PASKO EVELYN SHAFER MELISSA DUGE SPIERS PHOTOGRAPHERS GEORGE SAITAS JAKE J. THOMAS

16 UP FRONT 4 THE POLLSTER 6 REGIONAL NEWS ROUNDUP

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CONTRIBUTING PHOTOGRAPHERS JEREMEY BOT ALEX FERRIERA ALISHA MCCORMACK GEORGE POST BRANDON ROSSI MATTHEW SEIFNIA NEIL SIMMONS COVER GEORGE SAITAS PHOTOGRAPHY

FEATURES 8 RETURN TO LOCALISM IN A GLOBALIZED WORLD

13 SMALL BUSINESS SATURDAY 16 MY WEIRD BUSINESS 20 MADE HERE

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24 SHOW US YOUR ART

KNOW HOW 30 CASH FLOW IS YOUR

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FUEL GAUGE

35 YEAR END REVIEW

WRAP UP 40 GUEST COLUMN BUY LOCAL

JOIN US We can’t do this without you. We want to hear your perspectives, feedback and story ideas, and we [MPPWXVMZIXSVIƥIGXXLIQ[MXLMR our pages. )QEMPYW[MXLER]GSQQIRXW or ideas at editor@ VIKMSREPWQEPPFYWMRIWWGSQ For advertising inquires, call

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


FROM THE PUBLISHER

WELCOME BACK

I

n this edition of RSB we explore the localism movement: its origin, how it’s being expressed in our region and why it matters. I originally learned about localism initiatives in small business communities at a Bioneers conference in Marin a number of years ago. The founder of Business Alliance of Local Living Economies (BALLE) gave a presentation that spoke directly to concerns I had about our increasing separation from the source of products or services we purchase and the lack of a sustainable ethos in our consumption habits. I believe that the separation or distance from the food we eat, clothes we buy and other products we purchase in our daily lives contributes to a sense of detachment from our communities and the vital network of small businesses that serve those communities. Since that time, I have observed that localism and the related slow-food and slow-money movements are a part of a broader trend that is spreading nationwide. Even in my hometown of St. Louis, Mo., which is better known for baseball and beer than being a leader of social change, there is a nascent localism movement seen in the growing popularity of craft food and beverages, a slow-money initiative and even rooftop community-supported agriculture. It is evident that in communities across the nation, people are seeking greater transparency on where and how things are produced and a stronger connec-

tion to those individuals or businesses that produce and sell them. In this tricounty region in particular, we seem to be yearning for greater integration into our communities, accompanied by a sense that we are part of a unique ecosystem that is affected by the consumption choices we make. :KHQ,¾UVWPRYHGWRWKHUHJLRQ I spent more than a year exploring the natural beauty and wonders of the area. I occasionally ventured beyond the region but really had no need to do so. Even today, after living here for 15 years, I am still discovering new treasures that are not limited to the plentiful natural wonders that abound here. Some of our region’s greatest treasures are the individuals, institutions and businesses that reside in the area. Artists, academics, craftsmen, inventors, entrepreneurs, philosophers, and musicians are all a part of the rich bounty of resources available in our region. At RSB, we are part of a movement to encourage greater economic activity throughout the region in alignment with the sustainable values that permeate the area. The Monterey Bay is already a model for other regions about how to integrate those values and build a vibrant, thriving and sustainable ecosystem, but we have the potential to go so much further. There is ample opportunity for us to PRYHEH\RQGPDQ\RIWKHDUWL¾FLDO boundaries that continue to separate us throughout the region and to build a

more integrated regional identity and strategy to further enrich our communities. We invite you to explore the region more deeply and move beyond any limitations or preconceptions that may hinder your exploration. Not sure of where to start? I suggest you spend part of a day driving down Arroyo Seco Road in Monterey County to check out the many vineyards that have sprouted up during the last decade. Afterward you might have a picnic lunch on the Arroyo Seco river at the end of Arroyo Seco Road, where you can enjoy the canyon and numerous swimming holes along the river. Or you can partake in the Brew Cruz in Santa Cruz County and sample the many new micro breweries on that tour. If you don’t mind the noise you can enjoy the spectacle of the Hollister motorcycle rally that takes place each year around the Fourth of July. If a leisurely stroll and shopping excursion is more your speed, take a walk down Ocean 6WUHHWLQ&DUPHORU3DFL¾F$YHQXH in Santa Cruz and discover unique retail stores offering goods sourced or made locally. Weekly farmers markets throughout the region are also a great way to meet your fellow community members and sample the rich variety of locally grown food. These are all ways we can deepen and further our integration with the people and places in our region and satisfy our innate desire for community and connection. Michael Meara, Publisher

INSIGHT • MOMENTUM • IMPACT

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THE POLLSTER

IS IT IMPORTANT FOR YOUR BUSINESS TO BUY LOCAL? WHY OR WHY NOT?

I think it’s important to buy locally because it cuts down on our use of gas. If you don’t have to ship things as far, then they cost us less in terms of our carbon footprint. Also, it’s good to support local businesses to keep money in the area.

COURTNEY THOMPSON STUDENT

Buying locally is very important. In JEGX[IGSRXVEGXIHEPSGEPƥS[IV KVS[IVXSTVSHYGIƥSVEPEVVERKI ments based on Shakespeare’s TPE]W;IHIƤRMXIP]YRHIVWXERHXLI importance of supporting and being a part of the local economy.

BY JAKE J. THOMAS

TERRY TAYLOR CEO, SHAKESPEARE SOCIETY OF AMERICA

I believe in buying local to keep local businessmen in business. You might save a couple of dollars but you miss the camaraderie of talking to somebody, meeting them, trying stuff on. And to keep the money in town keeps the wheel turning.

ERNIE BUCK SALES, EAGLE IRON AND LEATHER

IF YOU DON’T DRIVE YOUR BUSINESS, YOU WILL BE DRIVEN OUT OF BUSINESS. ː%&)25%(6ˎ

I think that it’s important to buy locally so that we can keep money circulating in local economies. But I also think it’s important to support domestic trade so that businesses can reach wider markets.

ANNEROSE CALHOUN SALES, CAPITOLA MALL

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


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INSIGHT • MOMENTUM • IMPACT

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REGIONAL NEWS

The

BIZ BEAT

RECENT BUSINESS NEWS WORTH NOTING | BY JESSICA M. PASKO New Beer Trail Launches Annie Pautsch of the Santa Cruz’s Brew Cruz, which runs brewery and tasting room tours, has launched a new venture to promote the county’s rapidly expanding community of craft breweries. The Santa Cruz Beer Trail website is now live at SantaCruzBeerTrail.com and includes an interactive map, brewery social media feed, and will soon include a brewery passport modeled after the popular winery passports.

Monterey Bay Public Radio Station Set To Revamp

GOVERNOR SIGNS NEW REDEVELOPMENT BILL INTO LAW A bill championed by Assemblyman Luis Alejo (D-Salinas) to help struggling Central Coast communities has been signed into law by Gov. Jerry Brown. Assembly Bill 2 will allow local agencies (other than schools) to establish Community Revitalization and Investment Areas in disadvantaged communities characterized by an annual median household income less than 80 percent of the statewide average, plus other conditions related to unemployment, crime rates and deteriorated infrastructure. The bill’s intent is to help increase affordable housing and rebuild impoverished communities across the state.

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

Struggling public radio station KUSP 88.9 is planning to switch its format in light of ongoing financial problems. In the wake of several board resignations and more than $700,000 in debt, a decision has been made to switch to an all-music format. In recent years, the station had been airing more National Public Radio programming in an effort to boost listenership. The switch will mark a return to more local programming and music.

Santa Cruz Launches “Choose Santa Cruz” Campaign The city of Santa Cruz has launched a new economic initiative to support local businesses by encouraging new business growth and enticing companies to relocate to the area. The city’s Economic Development Office has been working closely with Design by Cosmic, a local


REGIONAL NEWS

design and advertising firm, on a rebranding campaign that includes a revamped website. According to the city’s economic officials, the new site will offer resources for small businesses in addition to telling the story of the local economy by showcasing the people who choose to work and live in Santa Cruz.

New Leaf Markets To Raise Minimum Wage New Leaf Community Markets will raise starting pay for full-time workers from $10.30 to $12 an hour as of Jan. 1, 2016. Employees who have been with the company for two years or more will get an additional adjustment based on tenure. The new pay scales will affect employees at New Leaf stores in downtown Santa Cruz, the Westside, Capitola, Half Moon Bay and Pleasanton. It won’t affect workers in Felton and Boulder Creek, as those stores operate with a franchise agreement under separate ownership.

California State University Monterey Bay Buys National Steinbeck Center CSUMB’s corporation has purGLEWIH XLI ƤRERGMEPP] WXVYKKPMRK Steinbeck Center in downtown Salinas, according to city and university SJƤGMEPW 8LI 9RMZIVWMX] 'SVTSVEXMSR at Monterey Bay, which operates as the business arm of the university, purchased the property on Main Street in September for $100,000 and paid the city bond debt of $3 million. The Steinbeck Center will remain a tenant with an 80-year lease, and, with the purchase, the city of Salinas has forgiven much of the museum’s lingering debt. Though university officials are

still determining how to use the building, they have stated they plan to offer outreach and services to the Salinas community, such as financial aid workshops. The purchase will help strengthen the connection between the university and downtown Salinas. “Generally this is our front door to Salinas and we’re going to use this as a way to connect to the community and respond to their needs more effectively,” CSUMB President Eduardo Ochoa told the Monterey Herald.

new Seafood Calculator will help their customers to easily and accurately rate the sustainability of their seafood. Sustainability ratings are based on evaluations of the abundance of fish populations, the impacts of fishing and how well the process of fishing or farming is controlled and managed. The free app is available to users in any sector of the seafood industry. More than 500 companies have tested and used the application so far, including many chefs and restaurants.

“Parklet” Program In Progress In Santa Cruz

Hollister Couple Launches New Brewery

Lúpulo Craft Beer House, The Penny Ice Creamery and Hula’s Island Grill will be partaking in the city’s pilot “parklet” program, in which small outdoor seating areas will take up spaces currently used as parking spots. Similar programs have been implemented around the state, including in Pacific Grove. The plan is still in the early stages but has been approved by the Santa Cruz City Council to move forward as a one-year pilot. A number of questions still remain, including potential caps on new parklets, parklet oversight and responsibility, among other issues. Proponents say the parklets will liven up the neighborhood and draw foot traffic from Pacific Avenue.

Brewery Twenty-Five’s beers are now available for sale at several local businesses in the Hollister area. Sean and Fran Fitzharris have been homebrewing for a number of years, but have only recently started selling their wares at retail outlets. The small-production capacity means quantity is limited, but beer fans can SJXIRƤRHMXSRXETEX6YRRMRK6SSWXIV in Hollister, or at Bear’s Hideaway and Vertigo Coffee in San Juan Bautista.

Monterey Bay Aquarium’s Seafood Watch And Partners Launch New App For Businesses Along with Seattle Fish and Fish Choice, the Monterey Bay Aquarium’s Seafood Watch program has launched a new mobile app to help businesses determine the sustainability of their seafood choices. Seattle Fish officials say their

Salinas Law Firm Creates New Team To Handle Agriculture Recalls L+G, LLP Attorneys at Law, a full-service law firm that specializes in agriculture, land use, food safety, and business and real estate, has launched a new team to help companies navigate the legal issues associated with produce investigations and recalls. The Recall-Ready.com team offers a full range of services that include an emergency response handbook, confidential investigation, communication consultants, an experienced group of foodborne illness defense attorneys, and technology experts. RSB

INSIGHT • MOMENTUM • IMPACT

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


LOCALISM / IN-DEPTH

Return to Localism in a Globalized World THINKING LOCAL DOES NOT MEAN THINKING SMALL

////////// BY MELISSA DUGE SPIERS e all think we know XLIHIƤRMXMSRSJ localism — it has to do with where we live … right? For most people it gets a little fuzzy after that, however, and even Wikipedia stumbles over a GPIEVHIƤRMXMSRŰ0SGEPMWQHIWGVMFIWE range of political philosophies which prioritize the local.” Yes. But, is it a political movement? A social philosophy? A business strategy? An environmental cause? The answer increasingly embraced by communities throughout XLI9RMXIH7XEXIWMWEPPSJXLIEFSZI For much of the world’s history, localism was the only socio-economic/political structure in existence — before global travel, transport and technol-

PHOTO BY GEORGE SAITAS

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ogy, everything was (by necessity) centered on local communities and regions. The industrial revolution is widely credited as the catalyst that shifted economies from the local to the global stage. Globalism was subsequently embraced with vigor during the 19th and 20th centuries, remaining prevalent throughout most of the developed world until the last quarter of the 20th century, when cynicism and disillusionment began to take hold in developed countries (federal voter turnout dropped from 63 percent in 1960 to 36 percent in 2014). A “crisis SJGSRƤHIRGIERHEGVMWMWSJGETEGMX]ű say authors Douglas Henton, John G. Melville, and Kimberly A. Walesh in Civic Revolutionaries — brought on by scandals and ethical lapses in major institutions, wars, terrorism, and

economic, social, and environmental problems far beyond the scope of local jurisdictions — caused citizens to turn closer to home. State politics, regionalism, and localism began to gain traction by the 1980s, giving people some sense of purpose and control. All originally developed in response to environmental pollution and farming concerns (a National Resources Defense Council study in 2007 found that harmful air pollution in California was up to 45 times greater for out-ofstate transported foods than local or regionally grown foods), but localism — the smallest “unit,” which refers to an area roughly 50 miles in diameter around any given town — soon came XSIRGSQTEWWEPPEVIEWSJPSGEPPMJI food, commerce, education, and political and social policies.

INSIGHT • MOMENTUM • IMPACT

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IN-DEPTH / LOCALISM

HOW TO PHOTO COURTESY OF JACQUIE ATCHISON

SHOP LOCAL Many excellent websites can point you XSPSGEPQIVGLERXWEVSYRHXLI&E]%VIE Think Local First: thinklocalsantacruz. SVKGQIQFIVW Ű=SYŭPP*MRHMXMR4EGMƤG+VSZIŹ Facebook page:JEGIFSSOGSQƤRHMXMR TEGMƤGKVSZI Buy Local Monterey:QSRXIVI]SVKIR YW)RZMVSRQIRXEP4VSKVEQW&Y]0SGEP

ADDITIONAL

READING BALLE: Be A Localist: bealocalist.org Civic Revolutionaries: Igniting the PasWMSRJSV'LERKIMR%QIVMGEĹ­W'SQQYRMties (2004) - Douglas Henton, John G. 1IPZMPPI/MQFIVP]%;EPIWL The Company We Keep: Reinventing 7QEPP&YWMRIWWJSV4ISTPI'SQQYRMX] ERH4PEGI  .SLR%FVEQW This Could Be The Start of Something Big:,S[7SGMEP1SZIQIRXWJSV6IKMSRal Equity are Reshaping Metropolitan %QIVMGE  1ERYIP4EXSV.V'LVMW Benner, Martha Matsuoka Deep Economy:8LI;IEPXLSJ'SQQYRMXMIWERHXLI(YVEFPI*YXYVI   - Bill McKibben Localism By The Numbers: https://lo GEPMWQF]XLIRYQFIVWWMPZVFEGOGSQ Localist Movements In A Global Economy  (EZMH.,IWW Natural Capitalism: Creating the Next Industrial Revolution  4EYP ,E[OIR%QSV]&0SZMRW0,YRXIV0SZMRW

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City of PaciďŹ c Grove’s Economic Development Commission’s “Business Walkâ€?

In his excellent book, The Company We Keep: Reinventing Small Business for People, Community, and Place, John Abrams explains that Americans are largely fed up with “a political system that bargains back and forth about minor adjustments and never considers an actual overhaul ‌ small changes seem to have little impact and the big issues don’t get XEGOPIHMRWMKRMƤGERX[E]WĹą%WSPYXMSRXLEX is becoming more and more appealing, he says, is one that involves a “collaboration SJXLVIIX]TIWSJMRXIVHITIRHIRXIRXMXMIW (1) democratic, place-based small businesses; (2) local governmental agencies; ERH  GLEVMXEFPIRSRTVSƤXWXLEXEVIHIHMGEXIHXSWTIGMƤGKISKVETLMGEPVIKMSRWĹą Localism, then, seeks to create and strengthen a perfect codependent triangle of local businesses, governmental EKIRGMIWERHRSRTVSƤXWWSGMEPEGXMZMWXW who work together to keep everything from commercial revenues to community regulations, well, local. In Localist Movements in a Global Economy, David J. Hess suggests that “the localist model of privately held companies with a mission of community stewardship and an ability to choose environmental and social values over growth provides one pathway for restructuring the global economy in an era of environmental limits.â€? And what terrifying limits they are. For all the world to live as an American or Canadian over the next 25 years in the traditional capitalist/industrial revolution model — where everything is made in factories wherever it’s cheapest and most convenient, and then shipped to any mar-

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

ket with a demand — we would need two more earths to satisfy everyone. “Industry moves, mines, extracts, shovels, burns, wastes, pumps, and disposes of 4 million pounds of material in order to provide one average middle-class American family’s needs for the year. In 1990, the average American’s economic and personal EGXMZMXMIWQSFMPM^IHEĆĽS[SJVSYKLP] HV][IMKLXTSYRHWSJQEXIVMEPTIVHE] pounds of fuel, 46 of construction materials, 15 of farm, 6 of forest, 6 of industrial minerals, and 3 of metals. The average American’s daily activities emitted 130 pounds of gaseous material, created 45 pounds of material artifacts, 13 pounds of concentrated wastes, and 3.5 pounds of nongaseous wastes.â€? (Natural Capitalism, Paul Hawken, Amory B. Lovins, L. Hunter Lovins.) These are serious numbers, which are representative of “the big issues that HSRĹ­XKIXXEGOPIHMRWMKRMƤGERX[E]WĹąEW Abrams puts it. Environmental statistics EFSYRHXSTVSZIXLIGEWIJSVPSGEPMWQ percent of an American’s energy usage is indirect, i.e. it comes from everything we buy and use (goods and services), so it is relatively easy to see how using local food, products and services reduces the I\XIRHIHSVMRHMVIGXREXYVEPERHƤRERGMEP damage. On the at-home scale, one study showed that using a combination of local food, shopping, services, and transportation reduced a community’s carbon footprint by 11 percent in only six months. The largest areas of reduction? Home energy use and shopping. But can shopping locally really cure


PHOTO COURTESY OF BOOKSHOP SANTA CRUZ

the combined pressures of environmental destruction, political disillusionment, and general community disconnection, or is it just a fancy marketing campaign? The answer seems to be a resounding yes. Casey Coonerty Protti, whose family has owned local independent bookstore Bookshop Santa Cruz (which LSWXIHXLIƤVWXŰ8LMRO0SGEP*MVWXűQIIXing in 2007) for more than four decades, agrees that people occasionally suspect a Shop Local initiative is not so much a cure for the community as just a creative disguise for greed on the part of business owners. Local businesses are often accused of being anti-competitive, and of trying to throttle positive economic growth by limiting big-box retailers that might create a large number of immediate new jobs, Coonerty Protti says, but “the cost of taking jobs away from existing businesses and channeling XLEXKVS[XLMRXSWEPIWTVSƤXWXSSYXSJ XS[RGSQTERMIWSYXWXVMTWXLIFIRIƤXW gained.” Indeed this has been proven XMQIERHEKEMRSRIWXYH]WLS[IHXLEX for each $100 that “big-box stores” take in, only $15 stays within a community, versus $45 retained by locally owned stores. The ABA Indie Impact Series shows that on average, independent retailers have a 48 percent recirculation rate (in the local economy) versus 14 percent for national chains. Independent restaurants retain 65 percent versus 30 percent for chain restaurants. In the face of these numbers — daunting on a national or international scale, but seemingly hopeful when viewed locally — communities have taken it upon themselves to tackle the issues through grassroots movements and city hall initiatives alike. The number of “Buy Local” campaigns has doubled nationwide since 2005, and in 2014 independent businesses in communities with a long-term “buy local and independent campaign” reported revenue growth of 9.3 percent (almost double the 4.9 percent growth seen for independent businesses with no supporting campaign). In the Monterey Bay Area, Santa Cruz has nurtured a thriving “Think Local First” campaign since 2007,

Bookshop Santa Cruz’s original owner, Neal Coonerty, retrieving books after the 1989 earthquake

creating “a network of independent and locally owned businesses and community organizations joining together to promote economic vitality and preserve the unique character of our community.” Think Local First currently has more than 630 members, ranging from media outlets and museums to mom-andpop stores. They are drawn from, and involved in, nearly every conceivable area of Santa Cruz politics, commerce, and social outreach — often joining the organization through one aspect (for example, Shopping Locally) then realizing they need to participate in all areas. After all, increased participation in local political and social initiatives can impact commerce, and vice versa. Jacquie Atchison, Chair for the City SJ4EGMƤG+VSZIŭW)GSRSQMG(IZIPSTment Commission, took cues from Santa Cruz’s Think Local First when IWXEFPMWLMRK4EGMƤG+VSZIŭWS[RPSGEP initiatives. She organized local business and political heads to study the city’s RIIHW[MXLEYRMUYIJEGXƤRHMRKŰ&YWMness Walk” (where community leaders actually pounded the pavement, door to door, visiting 150 local establishments). After concluding their market research, representatives attended a Think Local First Santa Cruz meeting for inspiration and ideas, and then established their S[RŰ=SYŭPP*MRH-XMR4EGMƤG+VSZIű campaign which they hope will not only encourage local shopping but also foster a broader attitude of looking in 4EGMƤG+VSZIƤVWXJSVEPPWIVZMGIWERH entertainment. Both Santa Cruz and Pa-

GMƤG+VSZIEPWSVYRZIV]WYGGIWWJYP*MVWX Friday nights, in which local businesses stay open later and host special events SRXLIƤVWX*VMHE]SJIZIV]QSRXL[LMGL brings regular focus and attendance to local venues. 8LIFIRIƤXWKSJEVFI]SRHWLSTping dollars, too. A 1991 Oregon study found that small businesses donate about twice as much per employee to charitable organizations as large businesses. And Coonerty Protti points out XLIYRMUYIWSGMEPFIRIƤXWXLEXMRHITIRdent bookstores (in particular) offer to their communities. “Our localism goes beyond just being a physical presence in EXS[RXLEXOIITWTVSƤXWPSGEPHSREXIW locally, and uses local vendors,” she says. “There is something important about the fact that we make local decisions about which books to carry, which ultimately can impact the diversity of what is published and read.“ And in the end, isn’t that how localMWQWLSYPHVIEPP]FIHIƤRIH#8LMROMRK local does not mean thinking small, after all, it means making small gestures that effect huge changes. The simple decision to buy books at your local WXSVIIRHWYTRSXSRP]OIITMRKTVSƤXW jobs, and social services within the GSQQYRMX]FYXEPWSMRƥYIRGIW[LEXMW absorbed and woven into the intellectual fabric of the community. By putting local GSRGIVRWƤVWX[IEGXYEPP]GSRXVMFYXI to, broaden and diversify the ways in which we think about and relate to one another, our immediate environment, and beyond. RSB

INSIGHT • MOMENTUM • IMPACT

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


KEEPING IT LOCAL / IN-DEPTH

.((3,1*,7

LOCAL SMALL BUSINESS SATURDAY IS HELPING INDEPENDENT BUSINESSES STAY AFLOAT. ////////// BY DAMON ORION

F

or many of us, the name “Black Friday” conjures up images of consumers descending on the shopping QEPPWMRW[EVQWƤKLXMRK one another tooth-and-claw for the last remaining Xboxes, coffeemakers and children’s dolls. Yet according to Bryce Root, owner of the small business marketing consultancy The Root Group and co-founder of the small business advocacy organization Slingshot to Success, there’s a bright side to Black Friday and the season that it kicks off. “For many local businesses, the holiday season is what makes their year,” Root notes. “It puts them in the ‘black’ and eliminates the threat of closure, which usually takes place MRXLIƤVWXUYEVXIVMJXLILSPMHE]W haven’t gone as planned.” Root sees this as a good reason to shop at local stores as opposed to big-box or corporate outlets.

“When you think about it, the heart of Thanksgiving is all about celebrating community and being thankful and cognizant of family, friends and everyone around us,” he offers. “So by supporting local businesses, you’re able to ensure that those businesses in your community are supported and will remain open for many years to come.”

Especially useful in this regard is Black Friday’s lesser-known cousin, Small Business Saturday, which takes place on the Saturday after Thanksgiving. Established in 2010, the event was designed to encourage people all over the country to support local small businesses. Small Business 7EXYVHE][EWSJƤGMEPP]VIGSKRM^IHF] the U.S. Senate in 2011, with everyone

“By supporting local businesses, you’re able to ensure that those businesses in your community are supported and will remain open for many years to come.”

INSIGHT • MOMENTUM • IMPACT

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IN-DEPTH / KEEPING IT LOCAL

from governors and mayors to President Obama himself urging shoppers to support local establishments on that day. Support for Small Business Saturday has grown exponentially each year, with an estimated $5.7 billion going to small independent businesses on Nov. 30, 2013 and $14.3 billion on Nov. 29, 2014. Helping attract notice to the event are volunteer Neighborhood Champions who organize such events as shopping center block parties and scavenger hunts. The San Jose- and Capitola-based ski and snowboard shop Helm of Sun Valley began participating in Small Business Saturday in 2013. The store’s KIRIVEPQEREKIV.SLR+PSZIVƤVWX heard about the day through an email advertisement from the event’s founder, American Express, which has been offering free web ads to participating small business owners since 2012. Ű-[SYPHHIƤRMXIP]VIGSQQIRH that a small local business participate in Small Business Saturday,” Glover states. “Why wouldn’t you take advantage of free advertising and promotion for your store?”

As Root points out, local chambers and organizations like Santa Cruz’s Think Local First have embraced Small Business Saturday. “The ‘localism’ initiative is now top-of-mind with the majority of community members,” he adds. “People are now in the mindset that wherever and whenever possible, they need to support local.” Root and his associates at Slingshot to Success hosted a small business makeover contest last holiday season. The winner of the competition received business-building services valued at more than $22,000, including print and digital advertising, customized employee apparel and the creation of business videos, photos and signs. Among the many local businesses offering their services to the winner are Monterey County Weekly, Metastyle Films, Monterey Signs, and Santa Cruz Waves. According to Slingshot to Success co-founder Andy Van Valer, inspiration for the makeover came from “watching so many small businesses struggle when they didn’t have to. Many are working long hours and have salespeople telling them all the time what they need, and they really have no one who

is there to help them get into action toward solutions.“ Late one night, Van Valer was watching a show in which a family was sent away on vacation while their home was completely remodeled. “I thought, Ŭ;LEXEREQE^MRKMHIE;L]HSRŭX[I do that for a business?’” he recalls. The winner of Slingshot to Success’ recent 2015 Small Business Makeover was Santa Cruz’s In The Breadbox, the ƤVWXGIVXMƤIHKPYXIRJVIIGSQQIVGMEP kitchen in the United States. In the Breadbox shares its newly opened kitchen with a number of other local businesses, including Teresa’s Salsa and Friends in Cheeses Jam Co. The company’s retail bakery sells its shared kitchen tenants’ products as well as its own to-go food, which includes bread, sandwiches and pizza. While In The Breadbox’s founder, Jenn Ulmer Jenkins, is quick to voice her gratitude for the help with the company logo, signs, website, press, elevator pitch training and photography that she has received as the makeover winner, she notes, “The main thing with this is the strategic planning and marketing advice from Slingshot SV

LOCALIZING CYBER MONDAY On the Monday after Thanksgiving—aka Cyber Monday—a vast number of businesses offer sizeable discounts on merchandise sold online. The deals are hard XSVIWMWXMRERH']FIV1SRHE] sales reached $2.29 billion and $2.68 billion, respectively. Bryce Root has some savvy advice for entrepreneurs who are interested in localizing Cyber Monday. To begin with, he recommends that local businesses use their topnotch visuals, headlines and overall content to catch the eye of online visitors and social media followers. He adds, however, that it is the timing of business owners’ social media

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and email marketing to loyal customers that will be essential as the local news begins to cover this topic on Friday evening and Saturday morning. “Black Friday weekend is traditionally a very slow news weekend, so Cyber Monday is a hot topic,” he says. “As a business owner, you need to be very creative and develop a unique angle to what you’re doing on Cyber Monday. Reporters will be anxious to learn more.” &YWMRIWWS[RIVWEPWSRIIHXSƤRHXLI right timing and balance of their promotion of Cyber Monday. “They need to still drive sales Thursday through Sunday of Black

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

Friday weekend, so focusing on specialty products or unique opportunities on Monday will eliminate customers curbing their spending until Monday rolls around, making both shopping periods fruitful,” Root states. He adds that it is vital to take full advantage of the opportunities available to business owners from Thanksgiving through Cyber Monday. “The weeks leading up to the week before Christmas can be painfully slow for many retailers,” he says. “A simple yet memorable reminder at checkout regarding Monday’s deals will FIIWWIRXMEPXSXSTSJJXLIWIƤZIHE]WSJ shopping.”


KEEPING IT LOCAL / IN-DEPTH

2015 Winner of Slingshot to Success’ Small Business Makeover

GIVING TUESDAY Since 2012, the Tuesday after Thanksgiving has been known as Giving Tuesday (often written as #GivingTuesday). Created by the New York City-based cultural center 92nd Street Y and the United Nations Foundation as a means of counterbalancing holiday season consumerism, the event promotes philanthropy and end-of-year giving. Giving Tuesday has drummed up a huge EQSYRXSJWYTTSVXJSVRSRTVSƤXSVKERM^E tions so far. According to a report released by the Washington, D.C.-based organization The Case Foundation, the event raised an estimated $45.7 million for various causes last year, with donations growing by 63 percent from the previous year. Tools and resources for participation in Giving Tuesday can be found at givingtuesday.org.

and The Root Group that put this SR8LI]ŭVIƤRHMRKPSXWSJRI[MHIEW for me that I wasn’t thinking about FIJSVIJSVMRWXERGISYXWSYVGMRKQ] ƥSYVTVSHYGXMSRXSEGSTEGOEKMRK company—things to help the business make more money than just the local income. These guys know what they’re doing, and they’re really helping me and putting me in touch with a lot of different people I need to be in touch with.” Andy Van Valer is pleased to be lending a hand. “We want to provide services and tools that will help business owners continue to succeed in the Monterey Bay Region,” he says. “Locally owned businesses and entrepreneurship fuels America’s economic innovation and prosperity and builds strong communities, linking people in a web of economic and social relationships, contributing to

local schools, causes and the needed infrastructure. Local ownership ensures that important decisions are made locally by people who live in the community and who will feel the impacts of those decisions.” RSB

5(6285&(6 Small Business Saturday: americanexpress.com/us/small-business/ shop-small/ Slingshot to Success’ Small Business Makeover: slingshottosuccess. com/business-makeover.html The Root Group: rootgroupmarketing.com In the Breadbox: inthebreadbox.com Helm of Sun Valley: helmofsunvalley.com/ Slingshot SV: slingshotsv.com

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


MARTY MAGIC / MY

WEIRD BUSINESS

OUTSIDE THE BOX

CUTE LITTLE TEDDY BEARS? NO, THANKS. VETERAN JEWELER MARTY MAGIC WOULD RATHER MAKE DRAGONS, ALIENS, NINJA STARS, AND JELLYFISH. BY DAMON ORION

PHOTO BY MATTHEW SEIFNIA

I

tâ&#x20AC;&#x2122;s not that Marty Bobroskie is against making jewelU\LQWKHVKDSHVRIKHDUWVURVHVDQGEXWWHUÂżLHV<RXÂľOO žQGDOORIWKRVHWKLQJVLQKHULQYHQWRU\ÂąWKH\ÂľUH just outnumbered by the snakes, squids, trolls, ants, dragons, and lizards. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve become a niche market for the unusual subjects,â&#x20AC;? notes the 64-year-old namesake of the Santa Cruz-based family business known as Marty Magic. â&#x20AC;&#x153;It gets really fun to think of what might be the oddest thing I could make. Surprisingly, the more offbeat I go, the more success we seem to have with it. There are entomologists and marine biologists out there who want something thatâ&#x20AC;&#x2122;s not your cute little teddy bear.â&#x20AC;? Bobroskie launched her career as a jewelry maker by selling her work at fairs and art festivals in the Silicon Valley area. â&#x20AC;&#x153;I was really blessed to kind of fall into things at the right time and place in the late â&#x20AC;&#x2122;70s, right when the Silicon Valley was starting to burst with alternative minds and tastes,â&#x20AC;? she recalls. As Silicon Valley boomed, so did Bobroskieâ&#x20AC;&#x2122;s busiQHVV² )RUWKHžUVWWLPH WKHUHZHUH PDQ\ WZRLQFRPH families, and these techie people didnâ&#x20AC;&#x2122;t necessarily want your mainstream pieces of jewelry,â&#x20AC;? the entrepreneur states. â&#x20AC;&#x153;They were more adventuresome: they were happy to wear

a dragon, a strange sea creature or an octopus.â&#x20AC;? Among Marty Magicâ&#x20AC;&#x2122;s most unique designs are nauWLOXVHV9HQXVÂż\WUDSVUKLQRFHURVEHHWOHVDQGFXWWOHžVK The last of these designs was the brainchild of Bobroskieâ&#x20AC;&#x2122;s daughter, Alisha McCormack, who works fulltime at Marty Magicâ&#x20AC;&#x2122;s in-house workshop as a designer, photographer and customer service representative.

AnglerďŹ sh. PHOTO BY ALISHA MCCORMACK

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Abby modeling the spiderweb wrap. PHOTO BY JEREMEY BOT

“IT GETS REALLY FUN TO THINK OF WHAT MIGHT BE THE ODDEST THING I COULD MAKE. SURPRISINGLY, THE MORE OFFBEAT I GO, THE MORE SUCCESS WE SEEM TO HAVE WITH IT.”

The lost-wax casting method lends itself equally well to the manufacturing of tiny pieces of jewelry or huge bronze sculptures. As a result, Bobroskie is able to craft pieces whose prices range anywhere from $22 to $10,000. “So that gives me a pretty big market spread,” she notes. One item at the upper end of that spectrum is a custom wedding tiara that Bobroskie constructed for a collector who buys from her regularly. Sculpted in the shape of a dragon and a phoenix facing one another, the piece is made of rose gold and sterling

While Marty and Alisha are the company’s main jewelry designers, Bobroskie’s husband Art and their son John, a senior at San Francisco State University, have been known to contribute designs. Art, who has worked for both Microsoft and Apple at different times, also serves as Marty Magic’s IT specialist. Rounding out the staff are Alison Tozer, who assists with packaging, shipping and polishing, and freelance photo editor/graphic GHVLJQHU/DXUD<RXQJ Marty Magic’s favored method of making jewelry is lost-wax casting, which consists of sculpting a model in wax DQGSXWWLQJLWLQDPHWDO¿DVN7KHMHZHOU\PDNHUWKHQSRXUVD plaster-like material around the wax model, heats it in a kiln to melt the wax and pours molten sterling silver, bronze or gold into the resulting cavity. Phoenix dragon tiara. PHOTO BY ALISHA MCCORMACK

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


Mirage dragon pendant with a Mexican ďŹ re opal. PHOTO BY GEORGE POST

Rainbow prism â&#x20AC;&#x201C; a one-of-a-king ring.

Teresa modeling the python wrap. PHOTO BY JEREMEY BOT

PHOTO BY ALISHA MCCORMACK

VLOYHUDQGLQODLGZLWKWZR0H[LFDQžUHRSDOVDQGWZR$XVWUDOLDQ opals. Its buyer wore the tiara during her wedding at the Las Vegas Hard Rock CafĂŠ, which took place at 11:00 on 11/11/11. Marty Magic has also crafted one-of-a-kind pieces for Prince (yes, that Prince) and sold jewelry to the likes of Whoopi Goldberg, Joan Baez and fantasy novelist Anne McCaffrey. The companyâ&#x20AC;&#x2122;s creations have also been worn by Commander Riker on Star Trek: The Next Generation and by the character of Joyce Brewster (played by Barbra Streisand) in the movie The Guilt Trip. Over the years, Bobroskieâ&#x20AC;&#x2122;s designs have changed with her interests. While she still makes dragons (always big sellers at Renaissance fairs and pirate festivals), the bulk of her most recent work UHÂżHFWVKHUJURZLQJLQWHUHVWLQWUDYHODQGQDWXUH²,ZDVUHDOO\ blessed to travel extensively as a girl,â&#x20AC;? notes the jeweler, whose IDWKHUZDVDžHOGJHRORJLVWZKRLQVWLOOHGWKHORYHRIWUDYHOLQKHU While exploring regions like Africa, the Philippines, Cambodia, India and the Great Barrier Reef, she has come face-to-face with a

number of unusual creatures that have inspired jewelry designs. Marty Magicâ&#x20AC;&#x2122;s ocean-themed pieces have been the companyâ&#x20AC;&#x2122;s EHVWVHOOLQJLWHPVRYHUWKHSDVWžYHRUWHQ\HDUVZLWK*RRJOH VHDUFKHVIRUDQJOHUžVKRUVTXLGMHZHOU\OHDGLQJEX\HUVWRWKHEXVLnessâ&#x20AC;&#x2122;s website or Etsy page. According to Bobroskie, the latter of these sites is probably the businessâ&#x20AC;&#x2122;s biggest avenue of marketing. The company was also recently accepted to the newly founded online store Handmade at Amazon. While the digital revolution has enabled Bobroskie to cut back on the time she spends traveling to and from fairs, she and her family still sell their jewelry in person at six to eight events a year. As you might imagine, this makes for a full schedule. â&#x20AC;&#x153;If I had more time to design, Iâ&#x20AC;&#x2122;d have an entire zoo of charms at my žQJHUWLSVÂłVKHQRWHV²%XW,ÂľPVWLOOZRUNLQJRQWKDWÂł RSB martymagic.com/ etsy.com/shop/martymagic

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


MANN PACKING / MADE

HERE

Woman in Charge of a Mann’s World MANN PACKING’S LORRI KOSTER LEADS THE SALINAS-BASED VEGETABLE GROWERS AND SHIPPERS ////////// BY EVELYN SHAFER

PHOTOS COURTESY OF MANN PACKING

F

or Salinas Valley, the “Salad Bowl of the World,” veggies are no small side dish in the local economy. Here, agriculture reigns supreme, and Mann Packing Company is at the heart of the industry as a leading grower, packager and shipper of fresh produce. It’s been family-owned for three generations, but these days it’s also female-fronted. At the head of the company founded by H.W. “Cy” Mann in 1939 is chairman and CEO Lorri Koster. Daughter of co-founder Don Nucci, Koster carries on the family business alongside the Ramsey family to make Mann Packing a 75-year success story. /SWXIV[SYPHZMWMXLIVHEHMRXLISJƤGI as a kid, organize Mann Packing posters in the garage during eighth grade, and do afterWGLSSPƤPMRKERHTLSRIERW[IVMRKJSVXLI company during her formative years, is now the voice and face of what has transformed into a female-owned company. With women serving as more than 65 percent of its

WLEVILSPHIVW1ERR4EGOMRKMWGIVXMƤIHF] the Women’s Business Enterprise National Council (WBENC). It’s all about “moms selling to moms,” says the staunch 49ers fan and busy baseball mom of two teenage boys ages 16 and 18. “I just know what it’s like wondering, ‘Oh KSWLMXŭW[LEXŭWJSVHMRRIVERH[LEX am I gonna put in their lunch tomorrow?’” Koster has combined her acute maternal and business instincts to rise through XLIVEROWEWEƤIVGIERHEGGPEMQIHMRHYWXV] spokesperson concerned with her community just as much as she is with commerce. She was honored as last year’s Ag Leader of the Year by the National Steinbeck Center, and in 2006 she was named Ag Woman SJXLI=IEVF]7EPMREWFEWIHRSRTVSƤX%K Against Hunger. She asserts that you have got to teach kids how to eat. “From very early on, I was turning bags of Doritos over asking my kids to look at the nutritional value, and they

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MADE HERE \ MANN PACKING

“From very early on, I was turning bags of Doritos over asking my kids to look at the nutritional value and they would be shocked. And they would help me cook. I think kids eat more when they help prepare the meal (and are) more hands-on.”

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

would be shocked. And they would help me cook. I think kids eat more when they help prepare the meal (and are) more hands-on.” Bringing home products to test in her kitchen and try out on her own family, she keeps work on her mind during vacations, going into grocery stores to check the stock of Mann Packing produce on the shelves. Her personal favorites? “The new Power Blend that’s got Brussels sprouts, broccolini, cauPMƥS[IVERHEPPXLIWIWYTIVRYXVMXMSYW foods but stays crunchy, so when you add cranberries and dressing on it, it doesn’t get soggy. But broccolini is my all-time favorite.” Propagating an expansive line of prepped fresh veggies, Mann Packing continues to thrive in a shifting international marketplace. Koster attributes its ability to adapt to new trends to its blended portfolio of retail, food service and commodity—in addition to its cache of exceptional local growers cultivating our abundant region. “The climate and the soil allow us to have a long growing season and it’s usually consistent,” she says of Salinas. “It’s a great place to grow but it’s difƤGYPXXSTVSGIWWLIVIWS-LSTI[I have policy (in the future) that makes it easier.” Despite her admitted love of her hometown, Koster eschews the rosecolored glasses and warns that Salinas needs to continue to nurture a business-friendly environment in order for companies like Mann to remain. “The cost of living here is high,” she points out, “so we need affordable housing, we need good schools, we need safe neighborhoods to continue to do business here.” The forward thinker is a strong proponent of developing an innovative green workforce locally. Also an advisor for Cal Safe Soil, which focuses on transforming food waste into nutrientrich soil that can be churned back into farmland, she is driven to help make Salinas a hub where emerging ag tech companies come and provide job opportunities.


MANN PACKING / MADE

HERE

“The cost of living here is high, so we need affordable housing, we need good schools, we need safe neighborhoods to continue to do business here.” 4MPMRKWSQYGLSRLIVZIKKMIƤPPIH plate—nurturing economic growth in Salinas and allocating her “downtime” to volunteering—what is Koster’s favorite piece of advice to other female IRXVITVIRIYVW#-XŭWSRIWLIƤRHWLEVH to follow. “Make time for yourself,” she sighs. “That’s my one weakness. On a list of 1 to 10 I’m number 15; but you’ve got to

TYX]SYVS\]KIRQEWOSRƤVWXű Of that Women Owned Business GIVXMƤGEXMSR[LMGLWLIJYPP]ETTVIGM ates and understands is important to a lot of customers, Koster says it’s ultimately secondary to the original mission of the company. “It’s a card I’m happy to play but I always say that we have quality and we have service, so it just makes a win-win situation into a

win-win-win.” Still, let’s address the elephant in XLIVSSQ-WXLIVISJƤGIFERXIVEFSYX the irony that this women-owned-andoperated company is called Mann Packing? Ű3LIZIV]HE]ű/SWXIVPEYKLWŰ;I always say we’re going to change it to Wo-Mann Packing.” RSB

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PHOTO BY NEIL SIMMONS PHOTOGRAPHY

painted boards

COLBY PHILLIPS

Colby Phillips is a third generation skateboard artist who has taken after his dad and grandfather by having his designs featured on shirts, decks and everything in between.

GUEST OF HONOR BETHANY HAMILTON KICKS OFF SANTA CRUZ EVENT

by Andy Van Valer

B

ethany Hamilton kicked off a special event in Santa Cruz that brought together an unprecedented array of renowned local artists to paint surfboards for a great cause. Proceeds from an online auction of the original surfboards were donated to support Changebound, an organization that nurtures young entrepreneurs through coworking space and mentorship. Bethany Hamlilton was featured at the event as an inspirational speaker. If you don’t already know Bethany from the movie Soul Surfer, she is the surfer who lost her arm in a shark attack and returned to the water a month later. She went on to win LIVƤVWXREXMSREPXMXPIPIWWXLERE year following the incident that transformed her story from one of tragedy to triumph. Check out some of our locals doing EQE^MRKEVXSRWYVJFSEVHW

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

JIM MBO O PHIL LLIP PS

Jimbo Phillips is from Santa Cruz and was born and raised in the art world. At an early age Jim began working for his father doing graphics for the skateboard industry, creating eye-popping artwork for Tshirt designs, decals, magazine ads and skateboards. In the early ‘90s he started his own graphic art business and continued to work for skateboard companies as well as other major brands such as Toyota, Nike, Snickers, Volcom and many more.


BENEFIT / ART

MA AIA A NEG GRE

JAMES DE LEON

A Northern California native, avid athlete, and accomplished visual artist, Maia Negre’s ocean-inspired paintMRKWEVIEFIEYXMJYPVIƥIGXMSR of energy, action and aesthetics. Her contemporary abstract landscapes are delicate and dreamy, evoking a visceral sense of inner connectivity and balance. Maia’s artwork can be found on a range of nationally distributed accessory products from stationery to clothing.

JOE FENTON

Joe Fenton is a California native. For the past year Joe has been creating the ocean GSQMGŰ-RXLI&YFFPI'SQMGW from the Kelp,” showcasing the thought-life of Sam the ƤWL,MWQSXMZEXMSRXS[VMXI stories and make art comes largely from our current need to preserve and protect the ocean and environment like never before.

James De Leon started his career as an illustrator at the age of 17 by creating the art for book covers, posters, magazine covers, advertising and editorials. He then moved into the position of senior designer in the product development wing of O’Neill, designing all of their apparel and accessories.

FRANK WALSH

Frank Walsh’s art has been exhibited and collected throughout North America, Japan, Hong Kong, and Finland. Of his unique style of composition, Frank has said, “If I can bring the viewer into a world that may be foreign and alien, and have them leave with a feeling of peace and serenity, then I’ve succeeded.”

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TAYLOR REINHOLD

Taylor Reinhold was born and raised in Santa Cruz. He started the Made Fresh Collective in 2009 and since then has been working to promote creativity amongst youth through artistic community outreach projects. He has organized and led workshops MRQYPXMTPIRSRTVSƤXSVKERM^E tions such as Youth Now and Mariposa Arts.

DOMIINIQU UE DE LE EON N

Dominique de Leon is a 20-year-old artist living in Santa Cruz with a passion for creating art, whether it be costuming, drawing or painting. Her artwork has been recognized throughout the world and her costumes have made her an Internet celebrity.

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

YESHE JACKSON

Yeshe Jackson is a renowned artist from Santa Cruz. He sees beautiful color everywhere, from purple greys of an ominous raincloud to the vibrant orange of grape leaves in the fall, and he is driven to try and express his love for these colors on canvas.


PHOTO BY BRANDON ROSSI

PHOTO BY BRANDON ROSSI

PHOTO BY ALEX FERRIERA

PHOTO BY ALEX FERRIERA

PHOTO BY BRANDON ROSSI

PHOTO BY NEIL SIMMONS PHOTOGRAPHY

BENEFIT / ART

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ART / SHOW US YOUR ART

PHILâ&#x20AC;&#x2122;S FIS H MARKET

SHOW US YOUR ART

Decor can make the difference between a bland business and a vibrant one. Businesses in Moss Landing share why they chose their art to make their spaces pop. PHOTO ESSAY BY JAKE J. THOMAS

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

LA BOUTIQUE GUAT EMALA


SHOW US YOUR ART / ART

HER EAGLE IRON AND LEAT

Eagle Iron and Leather Anyone who drives past Moss Landing on Hwy 1 is likely to have seen the giant motorcycle sculptures made out of found objects that surround Eagle Iron and Leather. Speaking with Ernie Buck inside the store, this was by design. The owner commissioned the large artworks because he knew it would make people stop out of curiosity. He was right.

Phil’s Fish Market Phil’s is a Moss Landing institution and the art is a part of the reason. Full of artistic flourishes, the Fish Market uses painting and sculpture in their design to create a fun and playful atmosphere. From murals and sculpture to carved pumpkins, the market is a whimsical place to eat fresh seafood.

La Boutique Guatemala Nestled in the heart of Moss Landing is a very cool “boho chic boutique” featuring local art and imported art from Guatemala. From the furniture made out of recycled wine barrels to the skate shoes made from Guatemalan textiles, there are endless treasures to be found.

Shakespeare Society of America If you like Shakespeare, you have to visit this amazing collection of costumes, prints and paraphernalia. Part store, part museum, the entire place is devoted to the bard. With a staff enthusiastic to share, a tour of this spot is amusing and charming. RSB

Y OF AMERICA SHAKESPEARE SOCIET INSIGHT • MOMENTUM • IMPACT

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CASH FLOW Cash Flow is Your Company’s Main Fuel Gauge | BY ANDY VAN VALER

30

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


CASH FLOW / KNOW

F

ocusing on just business KVS[XLSVIZIRTVSƤXGSYPH lead to trouble. Successful entrepreneurs and small busiRIWWIWJSGYWSRGEWLƥS[ With cash in the bank, it might RSXQEXXIV[LEX]SYVTVSƤX and-loss statement looks like. But if you run out of cash, you’re like a car that’s run out of gas. A balance sheet that shows rising sales and a healthy bottom line won’t mean a thing if you don’t have enough cash on hand to pay your bills or make payroll. And, all too often, that’s exactly what happens. Even when business is good, some small business owners simply don’t have enough cash on hand to survive.

CASH IN - CASH OUT 8LI[E]GEWLƥS[WXLVSYKL]SYVGSQ pany is what makes cash so important. You start out with some cash in your checking account, with other cash tied up in inventories of raw ingredients, works in progress ERHƤRMWLIHKSSHW=SYWIPPXSGYWXSQIVWSR GVIHMXWSEGGSYRXWVIGIMZEFPIVMWIXSVIƥIGX the cash owed to you. When payments arrive, GEWLƥS[WFEGOMRXS]SYVGSQTER]GSQTPIX ing the cycle. But is the cycle helping you or hurting you? It depends … A fast-growing company can quickly and easily outpace its cash supply. Rising sales might mean laying out more cash for additional inventory, increased production capacity, more employees and higher sales costs — expenses that your company has to pay almost as soon as they are incurred. Meanwhile, your accounts receivable are also increasing, but you don’t expect custom-

HOW

ers to pay you for 30 days — or perhaps up to 90 days if they are slow. It just takes one timing issue and the ƥS[MWHMWVYTXIH

STOP-AND-GO INDICATORS Your balance sheet can only tell you [LIXLIV]SYVGSQTER]MWTVSƤXEFPI-XŭW]SYV GEWLƥS[WXEXIQIRXXLEX[EVRW]SYEFSYX VYRRMRKSYXSJGEWL-JXLITVSƤXERHPSWW statement is your company’s speedometer, XLIRXLIGEWLƥS[WXEXIQIRXMWMXWKEW gauge. And though it’s nice to know how fast you are going, it’s far more important to know whether you have the necessary fuel to reach your destination. 9RJSVXYREXIP]GEWLƥS[WXEXIQIRXWEVI not always so simple to create. They require you to sort, categorize and make adjustments XSRYQFIVWSR]SYVƤRERGMEPWXEXIQIRXW=SY also have to make some realistic assumptions about future expenses and revenues. But the payoff for this work can be enormous. If projections show that you’re about to run out of cash, you can take immediate action to LIEHSJJXLIMQTIRHMRKGVMWMWWYGLEW • Deferring some purchases to reduce outlays. • Stepping up collection of receivables to EGGIPIVEXIXLIMRƥS[SJGEWL ŵ8EPOMRKXSEFEROEFSYXEPSERJSV[SVO ing capital (if you have enough time and a healthy balance sheet). • Creative solutions like creating a product XLEXGERWIPPJEWXERHLEWEPS[GSWXFYX MQQIHMEXIGEWL IKEJƤPMEXIZIRXYVIW eBook or ClickBank Products).

-XŭW]SYVGEWLƥS[WXEXIQIRXXLEX[EVRW]SY EFSYXVYRRMRKSYXSJGEWL-JXLITVSƤXERHPSWW statement is your company’s speedometer, then XLIGEWLƥS[WXEXIQIRXMWMXWKEWKEYKI

INSIGHT • MOMENTUM • IMPACT

31


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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


CASH FLOW / KNOW

HOW

/IITMRKEGSRWMWXIRXI]ISR]SYVGEWLƥS[ “fuel gauge” will ensure that your small business reaches its destination. It may be a bumpy ride, but the journey will be worth taking. • Watch for the new user-friendly small business dashboards coming out that will give you total visibility into your business. They’ll tell you exactly what’s going on at all times so you know what’s working and what’s not. You’ll receive a warning if your inventory is too high or your payables are getting too long.

MAXIMIZING CASH FLOW Once you’re equipped to keep a close eye on your company’s cash position and future cash needs, you can focus on making sure enough cash is always on hand. The goal is XSQE\MQM^IGEWLƥS[[LMGLIREFPIW]SY to take advantage of vendor discounts, pay down debt and add inventory, equipment and people to grow your company. Having extra cash on hand also helps when there’s a special opportunity, a big order, or for the repair of a piece of equipment. 8LIƤVWXWXITMRQE\MQM^MRKGEWLMWXSPSSO at inventory and receivables, which usually are EGSQTER]ŭWFMKKIWXGEWLHVEMRW • Get rid of excess inventory. ŵ6IHYGI[SVOMRKMRZIRXSV]ERHHYQTXLI stuff that’s been sitting on the shelves gathering dust. ŵ7IIMJWYTTPMIVW[MPP[EVILSYWIQSVISJ ]SYVVE[QEXIVMEPWHIPMZIVMRKERHMRZSMG MRKSRP][LIR]SYEVIVIEH]XSYWIXLIQ ŵ'EVIJYPP]GSRXVSPVIGIMZEFPIWERHWTIIH up the collection process. ŵ6IUYMVIGVIHMXETTPMGEXMSRWJVSQRI[ERH I\MWXMRKGYWXSQIVWERHVYRGVIHMXGLIGOW before shipping. • Require partial payment in advance from

TSSVVMWOWSVWPS[TE]MRKGYWXSQIVW • Offer a discount for prompt payment. • Make sure invoices are correct and mailed XSXLIVMKLXHITEVXQIRXWS]SYVGYWXSQIVW don’t have an excuse to delay processing. ŵ-JERMRZSMGIMWRSXTEMH[LIRHYIKIXE commitment for payment in full. • Deposit checks daily. ŵ,EZITE]QIRXWQEMPIHSV[MVIHXSEFERO lock box to speed up deposits. Controlling payables also help to generate cash. Wait until the due date to pay bills. Some vendors will allow you to stretch another 15 or 30 days if you are an otherwise good customer. Ask for terms on anything you buy; sellers who KMZIXIVQWEVITVSZMHMRK]SY[MXLJVIIƤRERGMRK so take advantage of it. There may be other ways you can modify ]SYVSTIVEXMSRWXSVIHYGIXLISYXƥS[SJGEWL • Consider leasing or renting equipment instead of buying it. ŵ9WIGSQQMWWMSRFEWIHWEPIWVITWMRWXIEH of a salaried salesforce. ŵ&VMRKMRXIQTWXSQIIXTIEORIIHWVEXLIV XLERLMVMRKQSVITIVQERIRX[SVOIVW • Subcontract some of your manufacturing VEXLIVXLERHSMRKMXEPPMRLSYWI All of these steps involve tradeoffs — some loss of control or higher operating costs. These costs must be weighed against XLIFIRIƤXWSJLEZMRKQSVIGEWLSRLERH Keeping a consistent eye on your cash ƥS[ŰJYIPKEYKIű[MPPIRWYVIXLEX]SYVWQEPP business reaches its destination. It may be a bumpy ride, but the journey will be worth taking. RSB

INSIGHT • MOMENTUM • IMPACT

33


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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


ARE YOU READY FOR NEXT YEAR? END OF YEAR EVALUATION – THE BEST TIME EVER SPENT ON YOUR BUSINESS By Andy Van Valer

R

unning a small business can be chaotic. It’s so easy to get sucked into the day-to-day operations required XSOIITXLMRKWVYRRMRKTVSƤXEFP]ERHWQSSXLP]&YX don’t forget to spend some time at the end of the year XSVIƥIGXSR[LEX[IRX[IPPXLITEWX]IEV[LEXHMHRŭXKS[IPP and where you want to focus your efforts in the New Year. This is one of the best ways you can impact your future business success.

At the end of the year every business should convene a strategic planning meeting. This doesn’t have to take a lot of time. Even if you dedicate one hour to four at most, you won’t regret it. Focusing on a few key areas of your business can WMKRMƤGERXP]MQTVSZI]SYVƤRERGMEPKVS[XLERHSTTSVXYRMX]MR XLI]IEVXSGSQI'SRWMHIVXLIJSPPS[MRKUYIWXMSRW ;LIVIEVI]SYRS[? Review your current business posiXMSRLS[[IPP]SYHMHƤRERGMEPP]ERHLS[]SYFEPERGIH[SVO

INSIGHT • MOMENTUM • IMPACT

35


KNOW HOW / END OF YEAR EVALUATION

Every year you get a chance to start new. and your personal life. What worked and what didn’t? Quickly review your mission, vision and values. Are you still on track? Where are you going? What is it that you want to EGGSQTPMWLMRXLIGSQMRK]IEVƤRERGMEPP]SVWLMJXMR]SYV business? What obstacles can you remove? What partnerships can you change? What products or services do you want to add and what do you want to remove? ,S[[MPP]SYKIXXLIVI# Lay out a roadmap to connect where you are now to where you’re going. Set your strategic objectives, goals and action items and how you’ll achieve your goals with a timeline. Strategic plans come in many different shapes and sizes, but the following components are typically [LEX]MIPHXLIKVIEXIWXVI[EVHW SWOT Analysis: The most important tool to help you create a summarized view of your current position. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Financial Assessment: Based on last year’s results and future forecasts, take time to plan and predict the future. This will allow you to gain much better GSRXVSPSZIV]SYVFYWMRIWWŭWƤRERGMEPTIVJSVQERGI Before you get too far into your planning process, LIVIEVIWSQIUYMGOXMTW ŵ%PPS[XMQIJSVWXVEXIKMGFMKTMGXYVIXLMROMRK • Make sure your plan is actionable and isn’t too aggressive. ŵ(SRŭX[VMXI]SYVTPERMRWXSRIMXRIIHWXSFI ƥYMHERHGLERKIEFPI • Base decisions on good information and data. Bad info can lead to poor decisions. It’s also important for a business to know and YRHIVWXERHLS[MXƤXWMRERHGSQTIXIW[MXLSXLIVFYWM nesses within its industry. Researching your industry and XLIFYWMRIWWIRZMVSRQIRX[MPPFIRIƤX]SYERHSV]SYV management team by putting you in a position to develop a successful strategy for both the long and short term. 1SWXIRXVITVIRIYVWHSRŭXXEOIXLIXMQIXSVIƥIGXSR their past work and, instead, think only about what the New Year could bring. Yet there’s so much you can gain from this process. Conducting a SWOT analysis is the ƤVWXWXITJSVIZIV]WQEPPFYWMRIWWS[RIVERHJSYRHIVXS review the past year and plan the next year. RSB

36

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

SWOT Analysis SWOT is a common phrase used to abbreviate Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a process where you and your team identify the internal and external factors that will affect your company’s future performance. The strengths and the weaknesses are areas within your business you have control over. The opportunities and XLVIEXWEVIXLSWISYXWMHIJSVGIWXLEXGSYPHFIRIƤXSV hurt your business. Conducting a SWOT analysis is like giving your business a yearly health check-up.

Performing SWOT The best way to approach the analysis is to recognize your Strengths and Weaknesses before tackling the Opportunities and Threats. The more Strengths and Opportunities, the better they can both FIWIIREWXLIFMKKIVMRƥYIRGIWJSVXLIWYGGIWWSJ your company. You need to be aware that the most important rule is not to leave anything out no matter how small the issue may be. 8LIVIMWRSƤ\IH[E]SJGSRHYGXMRKE7;38 analysis, but it should be done in a way that you feel most comfortable with, and, more importantly, in a way you understand. The objective is to be in a position where you can determine a strategy for the future to improve your company’s overall performance (or mEMRXEMRMXMJ]SYEVILETT][MXL]SYVƤREPEREP]WMW 

Understanding your Strengths and Weaknesses Your strategy must take account of how your business’s strengths and weaknesses will affect your marketing.

Using the Analysis A SWOT analysis is primarily used to evaluate the current position of your business to determine a strategy for the future. Once the SWOT analysis is complete, it will then be time to put it all together and look closely to create a strategy. This will involve how you can leverage the opportunities and how to eliminate or deal with the Threats.


SWOT ANALYSIS / KNOW

HOW

Poor Planning Promotes Poor Performance

2. WEAKNESSES Recognizing your business’s Weaknesses will require you to be honest and realistic. Don’t leave anything out as this is an important step toward realizing what needs to be done to minimize this list in the future. Here are a few examples: ŵ0MQMXIHƤRERGMEPVIWSYVGIW • Unable to react quickly to market changes • Lack of an established reputation ŵ-RIJƤGMIRXW]WXIQW

4. THREATS 1. STRENGTHS

8LIƤREPTEVXSJXLIEREP]WMW[MPPEPWSFI the most feared — the Threats. Yet it has to be done. Taking into account what you have listed as your weaknesses, the Threats to your business will now seem all too clear. Examples include: • Emergence of a new competitor • Advancement of new technology • More sophisticated, attractive or cheaper versions of your product or service • New legislation • A downturn in the economy — reducing overall demand

The Strengths can be considered anything that is favorable for your business. For example: ŵ4IVWSREPERHƥI\MFPIGYWXSQIV service • Price of product or service ŵ7TIGMEPJIEXYVIWSVFIRIƤXWXLEX your product offers • Specialist skills in what you do

3. OPPORTUNITIES The Strengths you listed in your SWOT EREP]WMWGERRS[MRƥYIRGIXLI3TTSVXYRM ties for your business. Opportunities can be interpreted as targets to achieve and exploit in the future. For example: • Increased demand from a successful customer • Using the Internet to reach new markets • Exploring new technologies

Expect the best, plan for the worst, and you’ll never be disappointed.

INSIGHT • MOMENTUM • IMPACT

37


Are you looking for a loan to grow your business? Call the Small Business Development Center for no-cost loan preparation help.

Our clients received over $5 million for operating capital last year. We can help you too!

831-479-6136|www.centralcoastsbdc.org

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REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz


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The College of Business also offers a fully online MBA. Executive Track ~ Traditional Track

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INSIGHT â&#x20AC;˘ MOMENTUM â&#x20AC;˘ IMPACT

39


GUEST COLUMN

/ BUY LOCAL

How Buying Local Can Empower the Community and Strengthen the Economy BY MARY ANN LEFFEL AND BRIAN E. TURLINGTON

W

hat exactly is buying local? Itâ&#x20AC;&#x2122;s easy to talk about, but the impact of supporting local businesses is far more wide-reaching than it appears. Buying local is the opportunity we all have to increase our regionâ&#x20AC;&#x2122;s economic wellbeing and our own quality of life.

40

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

Letâ&#x20AC;&#x2122;s use a scenario common to many families to illustrate how buying local works and to demonstrate the power of individual activity within our region. Weâ&#x20AC;&#x2122;ll begin in the hospitality sector, then explore how the economic impact expands into other industry segments in the region. A local couple sets a wedding date

and instead of leaving the area, taking their 50 invited guests with them, they select a venue in their region. The big day will include a ceremony, dinner, '-EHYHUDJHVDSKRWRJUDSKHUÂżRZHU arrangements, rented tuxedos, and a wedding gown, not to mention personal grooming requirements (nails, hair, makeup, etc.), as well as a limo and any


BUY LOCAL / GUEST

number of additional details. A local designer/printer may have also been used in advance for the web design and invitations. Letâ&#x20AC;&#x2122;s say the total cost is $7,000 for a basic dinner, reception and venue that employs approximately 12 people in varying roles such as an event planner and kitchen and wait staff. The specialL]HGDGGLWLRQRIÂżRZHUVSKRWRJUDSKHU audio/visual, and music all adds an additional person, and most likely two per service. When you include the add-ons for personal preparation of the wedding party and some guests, you add another 5 to 6 people employed for a few hours to an entire day. All of these additional items increase the local expenditure by $6-8,000. Now we add the extra expenditures by guests and family while they are in town. It usually includes groceries, dining in restaurants, clothing items, car rentals, airline tickets, tourism activities and exhibitions (e.g. the

Monterey Bay Aquarium) and small sundry items. Outside sources explain that a group of this size will typically spend an additional $5,000 over a threeday period. If we add an average of $159 per night plus $41 in taxes on a hotel room for 32 room nights (accounting for the guests who choose to stay over, some for multiple nights), we have another $6,400 that has gone into the local economy. So, by doing the math, just one small event (not small according to the bride and groom, of course) can potentially generate as much as $26,000, which is spread around to many different places and people based in the local economy. Now is where it becomes interesting. Those dollars do not stop at their original target. They work their way through four RUžYHKDQGVDQGKRXVHKROGVZLWKLQWKH next month and the impact can become as much as $80,000 when you take into account money spent on rent, gas, school supplies, clothing, hair, dry cleaning, etc.

COLUMN

The way to keep the quality of life we all experience is to shop locally and thereby keep your friends and neighbors employed. All of these dollars pass on and on, keeping the community healthy and vibrant. We enjoy choices and variety. The way to keep the quality of life we all experience is to shop locally and thereby keep your friends and neighbors employed. RSB By Mary Ann Leffel, President of the Board, and Brian E. Turlington, Executive Director of Monterey County Business Council

INSIGHT â&#x20AC;˘ MOMENTUM â&#x20AC;˘ IMPACT

41


Think Local First â&#x20AC;&#x201C; County of Santa Cruz is a network of independent and locally owned businesses and community organizations joining together to promote economic vitality and preserve the unique character of our community.

A RT FOR YOUR HOME & BUSINESS

JOIN US FIRST FRIDAYS FOR MUSIC, LIBATIONS & ART. UPCOMING SHOWS: FACEBOOK.COM/STUDIO114PRESENTS

Pick up a new 2016 Directory at TLF Member Businesses

thinklocalsantacruz.org Photo: Kenan Chan Photography

42

REGIONAL SMALL BUSINESS | Monterey, San Benito, Santa Cruz

1050 RIVER STREET SANTA CRUZ CA STUDIO 114 831.332.9883


Get noticed.

RSB has you covered with print, online, video & sponsorship

Print: Build credibility for your brand. Every other month over 12,000 small business owners in our region receive our magazine.

Online: Drive trafďŹ c to your site with links to relevant content.

Video: We will customize a video of your companyâ&#x20AC;&#x2122;s story which you can post on your own website or blog.

Sponsorship of our future events and awards will position your business as a thought leader in the community.

M O N T E R E Y B AY

RSB REGIONAL

SMALL

BUSINESS

JOIN US: Become an advertiser, subscriber or contributor. Just follow the links on our site or contact us by email respond@regionalsmallbiz.com.*SVEHZIVXMWMRKMRUYMVIWGEPPSVIQEMPWEPIW$VIKMSREPWQEPPFM^GSQ INSIGHT â&#x20AC;˘ MOMENTUM â&#x20AC;˘ IMPACT

43


'LG\RXUEXVLQHVVGHOLYHUWKHSUR戮WV you wanted last year? Do you want it to this year?

SLI NG S HOT

KNOWLEDGE 路 MOMENTUM 路 IMPACT Slingshot Family of Solutions RegionalSmallBiz.com | SlingshotToSuccess.com | SlingshotSV.com

Regional Small Business Monterey Bay Second Edition  

In each issue, we’ll provide an in-depth look at a successful regional business, including the lifestyle choices that influence their format...

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