June 1, 2016

June 1, 2016

Colleen Padilla Assumes SOREDI Executive Director Position

Ron Fox retires 1

A few words from Greg: With a rapidly growing readership the Southern Oregon Business Journal is being recognized as a resource for the business professional and aspiring entrepreneur that can affect the growth of industry, jobs and the Southern Oregon economy. This has been our goal from the outset.

We remain in close contact with the communities and professional organizations of all six of our represented counties. Through these connections we plan to enhance the quality and quantity of useful information for the subscribers of the journal.

The inclusion of high-level articles from professional writers across the nation is a way to ensure we are not missing important information for your industry. The world-wide networking of business resources and marketing activity shrinks the size of our business world. Tying the larger world to our local activities will help to bring a stronger, more inclusive effort from educators, politicians and business professionals that will be a great assist to our corner of Oregon.

Our current delivery focus is on the implementation of IT systems that will make it equally easy to view the journal on your PC, iPad or mobile phone. Fonts, layouts and design become very important in creating a readable document that is also easily navigated. You know that, and we intend to provide the system you will appreciate.

Please feel free to share the Southern Oregon Business Journal with your friends and colleagues by providing them with the subscriber connection on the website at www.southernoregonbusiness.com.

Also, let me know if there are additional items you would like to see in the journal that will make it a more valuable read for you.

Take care,

Greg Henderson Greg Henderson, Publisher greg@southernoregonbusiness.com 2

ASSISTING THE ECONOMIES OF THE SIX COUNTIES OF SOUTHWEST OREGON

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Publishers Comments Business journal growth and improvements

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Customer Service 10 Tips

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Legislative actions Oregon shipping

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Greg Henderson Publisher 703 Divot Loop Sutherlin, Oregon 97479 www.southernoregonbusiness.com 541-315-6127 A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

SOREDI Padilla promotion

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Eagle Point GC Bob and Chana Hyer

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Association memberships SBDC tips on joining

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Neuroscience The science of shopping

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Business Failure Seven pitfalls

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Brookings construction $2.9 million project

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Curry County State of the County

22 Oregon Business Cycle Josh Lehner 24 A Person for the Job The Back Page 3

AmeriTitle is proud to announce the availability of ACH capabilities for both our Borrowers and Lenders.

ACH payment handling will eliminate delays in mail and lost checks allowing us to provide a more efficient service to you.

Barry Robinson General Manager

••••• barry@ameri-title.com (541) 672-6651 Fax: (541) 672-5793 1495 NW Garden Valley Blvd Roseburg, OR 97471

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10 Tips for Providing Great Customer Service to Your Clients

By Raphael Caixeta

2. Keep Clients Updated Feeling like you’re lost and that you don’t know what’s going on is one of the worst situations you can be in

Raphael Caixeta was a PHP and iOS developer and co-founder of Grip’d.

when you hire someone. Even if you don’t have any-

“In Memory of Raphael Caixeta We miss him dearly. “

know what you’re working on and how things are pro-

Raphael lost his life in a motorcycle accident while riding in Boca Raton on July 24, 2014.

Craig Agranoff www.gripd.com The way your customers feel towards you is important.

The more you show you care about them, the more they’ll likely want to continue working with you. With that in mind, providing good customer service to your clients should naturally be a major priority in your dayto-day schedule. This article lists tips and suggestions for ensuring that you’re treating your clients well.

1. Respond to Clients as Soon as Possible

thing major to report, you can still let your employer gressing. Are you on track on milestones? Did you find something that might become an issue later on? Status updates give clients reinforcements that they’re involved in the project.

If you’re experiencing trouble with something, let them know right away. It shows that you’re keeping them in the loop and that you have things under control. If it’s something major, communicating your concern right away allows clients to plan for possible delays in the project’s completion.

3. Go the Extra Mile If a client asks for you to do something that truly won’t

Speed is everything, especially when a client is request- cost you a lot in time and income, you have the option of ing something that’s time-sensitive. Try to reply to your

going the extra mile and doing it for them.

clients as soon as you can. Procrastinating on a response to a client’s email, phone call or voicemail doesn’t help anyone; you’re going to have to reply even-

tually, so why not do it as soon as possible? Avoid that "mark as unread" button in your email client.

Even if you can’t work on the task they’re requesting you to accomplish right away, at least let them know you got their request and then supply them with a timeline of when you’re able to get the task completed. If you can’t find the time to perform the task, it will be considerate of you to let them know as soon as possible so that they

can make alternative arrangements.

Not only will this result in an indebted and happy client, it can also go a long way in terms of keeping yourself in their radar for future projects.

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4. Fix Your Mistakes If you did something that didn’t end up working, you

do it. It’s part of being a professional. If you need more time on something, you should let them know as soon as

should repair it. A quick way to lose a client forever is not

possible, not after you’ve already missed the deadline.

admitting that you are at fault and not fixing your own

Honoring your commitments is very important.

mistakes. You should always strive for a high-quality output; it shows that you have a high level of standards in your craftsmanship.

Not taking responsibility of your own blunders is a surefire way of gaining a bad business reputation. Transparency is important in any business; service work is no dif-

ferent.

5. Listen to Your Clients It’s important to listen to what your clients are communicating to you. Like, reallylisten. Understand what they are saying and ask for clarifications on things that might be ambiguous. Clients might be unfamiliar with certain terminologies in our profession, and what you think they mean might be different to what they actually mean. For exam-

ple, they might be saying "pop-up window," which we know to be annoying HTML browser windows opened using JavaScript, but what they really want is a modal window (often called a Lightbox window).

7. Don’t Confuse Clients with Jargon Try to explain whatever the problem is as best as you can without making the client feel stupid. When proposing a solution, make sure you state it in terms they understand.

You could use analogies that are relevant to them. Read more about how to talk to clients effectively as well as how to get your ideas across to clients.

8. Be Patient I’ve lost count of how many times I’ve exhausted my patience on my clients. But I’ve never actually showed them my agitation. If you feel like the client is overstepping their boundaries, let them know in a cordial and professional manner. You just don’t want to start yelling and cursing at the people you make a living off of. Maintain professionalism at all times.

9. Know Everything You Need to Know You are a paid expert. Someone is giving you their hardearned money to do something they believe you have a high level of mastery of. You need to keep yourself up-todate with the profession and always be ready to answer questions your client needs to know. If you exhibit signs that you don’t know your craft inside out, you risk the chance of ruining your professional reputation.

10. Put Yourself in Their Shoes Listen to what their needs are, and then offer your suggestion on the best way to go about fulfilling their needs.

6. Keep Your Promises If you say you’re going to do something, make sure you

If you were in their shoes and were being treated the way you’re treating them, would you enjoy that experience? If so, you’re doing a good job. If not, you probably want to get a little better. It’s important to constantly evaluate the way you communicate with others. Our profession is heavily reliant on communication skills.

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truck-rail transshipment facilities.

5. OSA will be governed by a board appointed by

Common Sense for Oregon and Oregon Shipping Group

county commissioners from around the state, which

Legislative Action

ping. This model emphasizes the fact that efficient

2007 State Street Salem, Oregon 97301

shipping capabilities are needed at every corner of the

www.oregonshippinggroup.com

on ensuring the efficient movement of goods.

Key Points: Oregon Shipping Authority Summary: The State of Ore-

gon should establish an Oregon Shipping Authority (OSA) which can provide leadership and support to establish and maintain efficient, cost-effective and reliable freight shipping into, out of, and through Oregon.

1. Oregon exporters and importers are no longer able to ship significant container volumes through Terminal 6 at the Port of Portland, primarily due to labor-management disputes which caused the shipping lines to discontinue calling at the Port of Portland. The initial focus of OSA should be on restoring regular and frequent shipping services to the state’s only container shipping port, Terminal 6 at the Port of Portland.

2. The Governor’s Trade and Logistics Initiative has presented much needed subsidiary solutions which help facilitate shipping through Ports in Seattle and Tacoma, but the primary problem – lack of container shipping at Terminal 6 – remains to be adequately addressed. OSA can focus its sights on the Terminal 6 issues, while also being a vehicle to improve shipping throughout the

whole state.

3. OSA will foster long-term development of other deep water facilities in areas such as Coos Bay and Astoria/Warrenton to establish container terminals capable of handling the largest ocean-going container ships.

4. OSA can be a conduit for the export and import of goods, and has the potential to greatly expand state

provides better representation for businesses from outside of the greater Portland area that engage in ship-

state, and shippers need an authority focused directly 6. Container shipping and bulk shipping by sea are the major ways that Oregon businesses get their products to other nations. Improving rail, truck and sea shipping capabilities is necessary for the State of Oregon and Oregon businesses to stay competitive in domestic and global markets. OSA will have the authority and resources to improve Oregon’s competitive posture domestically and globally.

Common Sense for Oregon and the Oregon Shipping Group are working on a major project to restore container shipping at Terminal 6 at the Port of Portland.

The group is crafting legislation aimed at restoring predictable, efficient and cost effective container shipping to the container port.

The Oregon Trade and Container Shipping Development Act creates the Oregon Shipping Authority (OSA). This is a public corporation which would be run by a board of nine directors appointed by County Commissioners from across the state. The Oregon Shipping Authority (OSA) can focus the power of the state on resolving container shipping issues and making Terminal 6 an attractive Port of Call for shipping lines.

Salem Business Attorney and President of Common Sense For Oregon Kevin Mannix along with Attorney Connor Harrington are spearheading this effort and will be pressing this legislation for the 2017 Oregon legislative session.

Kevin Mannix

export-import capabilities with the increased development of its port and transportation facilities, including 7

PORT STATEMENT ON WESTWOOD SHIPPING DEPARTURE, PORT OF PORTLAND, MAY 18, 2016 NEWS RELEASE Port of Portland For Immediate Release – May 18, 2016 – No. 28 Melanie Mesaros – (503) 415-6054 – Melanie.Mesaros@portofportland.com Port statement on Westwood Shipping departure Westwood Shipping announced to customers their last call to Portland will be May 21. In a letter to customers the Puyallup-based shipping company cited economics of a single call per month do not justify continued Portland service.

While we are disappointed with this news, we also understand the underlying economics of the carrier industry are at play like over-capacity and exceptionally low rates. We are hopeful that Westwood will return to T-6 when market dynamics improve.

We very much appreciate Westwood’s support and partnership over the last few years. Our marketing team will continue to focus on recruitment of new carrier service and assist shippers with access to markets.

Westwood has called Portland’s Terminal 6 with container service since July 2010. After Hanjin and Hapag-Lloyd pulled out in March 2015 Westwood suspended service in April, but returned with monthly export calls last July.

Each call to Portland took about 150 containers of hay, grass seed, dried fruits, other mixed agricultural goods and paperboard for export to Japan.

Bulk, breakbulk and auto operations at terminals 2, 4, 5 and 6 are not impacted.

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Board of Directors

Front row left to right: David Reeves, City of Grants Pass, Rick Dyer, Jackson County Commissioner, Dr. Susan Walsh, Southern Oregon University, Michael Lynch, Moss Adams, Bill Thorndike, Executive Board, Medford Fabrication, Steve Vincent, Avista Utilities. Back Row left to right: Dave Kanner, City of Ashland, Dennis Roler, City Councilor, City of Grants Pass, Jonathan Bilden, City Councilor, City of Eagle Point, Chris Corcoran, City Councilor, City of Medford, Aaron Ausland, Board Vice President, CEO of Ausland Group, Matt Stephenson, Board President, CFO of Rogue Federal Credit Union, Monte Mendenhall, Executive Board, PacificCorp, Cherryl Walker, Josephine County Commissioner, Dr. Peter Angstadt, Executive Board, President of Rogue Community College.Not pictured: Dean Wendle, Secretary/Treasurer, Rogue Community College Board, Allen Broderick, City Councilor, City of Central Point, Adam Hanks, City of Ashland, Bill W. Hoke, City of Medford, City of Medford, Gloria Schell, US Bank, Liz Shelby, Southern Oregon University.

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Padilla will Assume Executive Director Role on May 31, 2016

“Colleen’s hands-on experience and passion for our region made it clear she’s the right fit. Her support from public

and private peers in the industry was astounding. She has proven to be creative and possesses an open-minded zeal needed to take SOREDI into the future.” said Aaron Ausland, Incoming SOREDI Board Chair.

Ms. Padilla has been a longtime resident of Southern Oregon and has worked for SOREDI for the last 15 years. She has a B.S. in Communication and a Masters in Management from SOU. She currently serves as a Member and Secretary of Oregon Economic Development Association Board of Directors. Ms. Padilla received a significant number of letters of support from public and private economic development practitioners and businesses for her in the role of Executive Director. She is respected by those

Colleen Padilla Medford, OR. – May 11, 2016: Concluding an extensive 3-month search process, the SOREDI Executive Director Search Committee and SOREDI Board of Directors is proud to announce that they have chosen Colleen Padilla as the new Executive Director for SOREDI. The SOREDI Executive Director Selection Committee was formed in early February 2016 in response to current Executive Director Ron Fox’s announced retirement. The Selection Committee was made up of members of public jurisdictions, businesses, as well as chambers.

This nationwide search yielded more than 50 applicants.

The Selection Committee narrowed down the applicant

close to the industry for her leadership, foresight, and willingness to be part of a team. Ms. Padilla is responsible for the innovative regional marketing campaign known as the “Southern Oregon Edge” and has won several State awards.

After learning of Ms. Padilla’s appointment to follow him as Executive Director, Ron Fox, said, “Having worked with Colleen these past years I am confident in her ability to lead SOREDI into the future and build on the momentum that we have been able to establish.”

Ms. Padilla will assume her new role as Executive Director on May 31, 2016.

About SOREDI: SOREDI is a private, membership-

field to the three most highly qualified candidates and con- based, non-profit organization, governed by a board of directors. Its staff is charged with local business expansion ducted personal interviews with each of them.

The most highly qualified candidate, and clear choice was Ms. Padilla, who currently serves as the Senior Business Development Manager at SOREDI. The Selection Committee and Board fervently believe she represents the best choice to lead SOREDI forward, building relationships with member and non-members businesses, and honoring

and new business recruitment efforts, financial assistance to start-up companies through its business loan fund, and management of Enterprise Zones in Jackson and Josephine Counties. The agency was formed as a regional economic development agency in 1987.

Learn more at http://www.soredi.org.

SOREDI’s history.

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EAGLE POINT, OR - Bob and Chana Hyer have been busy putting their shine on one of the jewels of the Rogue Valley, the Eagle Point Golf Club.

Designed by Robert Trent Jones Jr., the course was named one of the ten best in the country in 1996 by Golf Magazine. When the couple bought the course on July 30, 2013, they got to work bringing the fairways back to their former grandeur.

They upgraded the 250-seat events pavilion so that it is welcoming year round. They improved the Talon Grill, and it is now frequently overflowing with customers.

The course is striving to create more programs that welcome women golfers, young people and create a more family-friendly atmosphere. Eagle Point Golf Club employs up to 65 employees in peak season, and the Hyers say employment costs for the course runs about $1 million annually.

Next on their list of projects is an ambitious plan to create a boutique hotel on the course, which will make it more of a destination that will attract corporate events as well as provide a place to stay for wedding parties, and golfers wanting to spend the weekend.

Bob and Chana Hyer, Owners Eagle Point Golf Club www.EaglePointGolf.com 100 Eagle Point Dr. Eagle Point, OR 97524 (541) 826-8225

“We felt

there was a disconnect between the golf community and Eagle Point and our objective was to kind of bring that together.�

- Bob Hyer, Owner, Eagle Point Golf Club 11

If you hit a hole-in-one twice on the same day, it might give you some idea of the excitement Bob Hyer felt on July 30, 2013. Not only did he close the deal on the purchase of the Eagle Point Golf Course, but Hyer met Robert Trent Jones Jr., the famous designer of the 7,099-yard course, named one of the ten best in the country in 1996 by Golf Magazine.

“It was a phenomenal day,” remembers Hyer. “Robert Trent Jones Jr. invited me to play Chambers Bay with him. A friendship was born.”

To this day, those serendipitous events still stir up a lot of feelings inside Hyer. The only thing missing was actually hitting a real hole in one.

Moving from Vancouver, Washington, the couple had successful careers before they came to the valley. Bob had a Financial planning practice, and Chana is a well-known landscape designer. Growing up in Southern California, Bob’s favorite sport at the time was baseball, which he continued to play through school and a six-year stint in the U.S. Air Force. After his military service, he came back to the Northwest and started playing a bit of golf. He wasn’t enamored with the game, however, until he played one of Jones’courses, Keystone Ranch, in Colorado. From then on, he wanted to play on every Robert Trent Jones Jr. course he could find because of the way they seamlessly flow with the terrain, and how he felt immersed in the nature that Bob & Chana Hyer with their grandchildren at Robert Trent Jones Jr.’s Totem Pole at Eagle Point Golf Club.

Coincidentally, when Robert Trent Jones Jr. built the Eagle Point Golf Course in 1996, the Hyers were busy with their own landscaping project. Chana had found a 20-acre parcel north of Vancouver and had a vision for the property, which was overgrown and required a lot of hands-on work. They found structures hidden in the vegetation, and they turned the property into their own version of Butchart Gardens. It became popular for weddings and other special events.

When the opportunity to buy a Robert Trent Jones Jr. course came up, Bob was on a plane to Southern Oregon the next day. When Bob first proposed the opportunity and the move, Chana was hesitant. But after her first visit, the Eagle Point Golf Club, the wineries, the hiking, the music scene and the beauty of the Rogue Valley appealed to her. “We have to live here,” she said, reminiscing about her change of heart. “We have to be involved in the community. We need to embrace the community and the community has embraced us.”

Rather than the golf course being separate from the community, the couple has worked hard to establish a solid relationship with the city of Eagle Point and its residents. They enjoy working with local businesses and felt a real sense of belonging to the valley. “We felt there was a disconnect between the golf community and the town of Eagle Point, and our objective was to bring them together,” Bob said.

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After improving the course for almost three years, the Hyers are ready to take it to the next level. They upgraded the 250-seat events pavilion so that it is welcoming year round. They improved the Talon Grill, and it is now packed with customers. Chana said the course is striving to create more programs that welcome women golfers, youth and create a more family-friendly atmosphere. The course employs up to 65 employees in peak season, and the couple says they are able to attract many people from the local community and also use a lot of local contractors from the Rogue Valley. “Our staff right now is really high end, quality people,” Chana said. “You’ve got to create an atmosphere where they want to work.”

The Hyers are working on the prospect of providing overnight lodging on the golf course. This will open up Eagle Point to more tourists, and create a venue that will attract corporate events as well as provide a place to stay for wedding parties and golfers alike. If that isn’t enough, the Hyers plan on building their retirement home next to the golf course, which will include plenty of room for their three grandchildren.

Before they came here, only Bob had the golfing bug.

Chana now looks at the design and attention to detail of the Eagle Point Golf Course and refers to it as “a work of art” and now enjoys playing also. Now the couple shares the same passion for the Eagle Point Golf Course and the community. “We were grateful to be able to have the opportunity, and the timing was just right so that we could obtain the golf course and move here and be part of the community,” Chana said.

541) 773-8946

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Mark Gregory State Director Oregon SBDC

Arlene Soto SWOCC

Sam Gross Business Entrepreneur

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How important is it for my small business to belong to an industry association and where do I find one?

DOWN TO BUSINESS

A look at small business questions from the Southwestern Oregon Community College Small Business Development Center (SBDC).

By Arlene M. Soto CMA, Southwestern SBDC Director

Industry associations, also known as trade groups or business associations are organizations founded and usually funded by businesses in that specific type of business or industry. Thousands of industry trade groups are in existence worldwide. Almost every industry has at least one trade group. Industry associations provide access to a multitude of benefits which can include: certification, education, trade information, trends, political lobbying, group insurance rates, market research, advertising, networking opportunities and more for their members and affiliates. The importance of joining a trade group depends on why you are considering membership and how involved you plan to be in the association.

Before joining an industry trade association, research the benefits provided by the organization. Are the benefits provided important for your business success?

Who are the members? How long has the organization been in existence? What are the costs to join and be involved in the organization? Is there a local chapter?

Gale Publishing provides a resource called The Encyclopedia of Associations which is available in many libraries in their reference books section or via an online database the library subscribes to. According to the Gale website, “EA is your guide to more than 23,000 organizations. The only comprehensive source for detailed information on nonprofit American membership organizations of national scope. Each entry features a range of valuable data, typically including the organization’s complete name, address, email and/or web site and phone; the primary official’s name and title; founding date; purpose and activities; dues; national and international conferences; and more.” The local Small Business Development Center office can also access industry association data through SBDCNet market research.

Membership in a trade association is a good way for small business owners to learn, spot important trends, access resources and collaborate with others in their industry or in their community. Four associations that interest small businesses are: the local chamber of commerce, the National Small Business Association, www.nsba.net, the National Association for the Self-Employed, www.nase.org and the National Federation of Independent Business, www.nfib.com.

The SBDC is a partnership of the U.S. Small Business Administration, the Oregon Small Business Development Center Network, the Oregon Business Development Department and Southwestern Oregon Community College. Arlene M. Soto has been the Director of the Southwestern Small Business Development Center since July 2007. To ask a question call 541-756-6445, e-mail asoto@socc.edu, or write 2455 Maple Leaf, North Bend, OR 97459. Additional help is available at the OSBDCN Web page www.bizcenter.org.

Carefully consider whether the services and benefits offered by the association are unavailable or too expensive to obtain another way. How will your business benefit from membership in the organization?

Southwestern Oregon Community College

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03/04/2016 CARL MARCI, E-COMMERCE, NIELSEN CONSUMER NEUROSCIENCE

THE SCIENCE OF SHOPPING: NIELSEN CONSUMER NEUROSCIENCE AT DIGIDAY RETAIL SUMMIT

The world of retail is changing, but the market’s evolution presents numerous opportunities for all retailers—from e-commerce businesses to brickand-mortar stores or a combination of the two. But how can retailers of all types anticipate the next set of changes coming their way? Some are identifying new purchasing patterns with consumer neuroscience.

On Jan. 25 2016, Dr. Carl Marci, chief neuroscientist and executive vice president of Nielsen Consumer Neuroscience, spoke on the role of emotions in retail environments at the Digiday Retail Summit in Laguna Beach, Calif. The summit looked at the opportunities and challenges of the modern consumer experience, considering all of the development in mobile commerce with digital and in-store synergies. Thought leaders from various brands explored the latest developments within retail.

Dr. Marci’s presentation, “Bricks and Clicks, Emotions in Retail,” discussed the complexity of the human brain and how the purchase process is changing, requiring retailers to be better equipped at addressing consumer needs given an evolving, complex e-commerce and traditional brick and mortar environment.

Personal relevance and emotional engagement are paramount. Retailers today must consider the entire path to purchase and understand how best to influence consumers along their buying journey. “It is important to create an experience for shoppers so that you create an emotional response, and get their reward pathways to fire so that consumers will want to come and buy again,” said Marci.

He described three important points within the shopper journey—“pretail”, “retail” and “post-tail” environments. In pretail, marketing communications and word of mouth experiences can help retailers make a connection outside of the commercial environment and generate an emotional response with consumers that is stored for future use. In retail, the emotional memory is retriggered and a buying opportunity occurs. Then, in post-tail, consumers bond with the product in a fulfillment

experience. Importantly, during the post-tail experience, buyers also can become advocates, further setting up future buyers and reinforcing their own relationship to the brand, product or service.

“Each step along the path to purchase is an opportunity to make an emotional connection,” said Marci.

Dr. Marci also spoke about the importance of measuring emotions using the modern tools of consumer neuroscience along multiple touchpoints during the purchase strategy—from marketing communications to shelf layouts, point-of-sale material and package design. By using tools such as eye tracking, EEG and biometrics, often combined with self-reporting, we can identify visual hot spots and blind spots and determine the levels of emotional impact to help clients make it easier for the consumer to process information on the path to purchase.

In speaking about clicks and the digital world, Dr. Marci noted that the bar is higher than ever, with more distractions as platforms and content proliferate. Each digital environment offers its own challenges from page layout to product visualization to integrating recommendations and reviews. Emotion matters in any environment.

“Relevance brings people in, directs them to content, and creates emotionally strong journeys. Irrelevance and boredom push people away; they retreat from the content and respond to their own thoughts,” said Marci. http://sites.nielsen.com/newscenter/the-science-ofshopping-nielsen-consumer-neuroscience-atdigiday-retail-summit/

Carl Marci

Dr. Carl D. Marci is Chief Neuroscientist of Nielsen Consumer Neuroscience. He is also on faculty at Harvard Medical School and is the former Director of Social Neuroscience at the Massachusetts General Hospital and past Visiting Lecturer at the Massachusetts Institute of Technology Program in Media Arts & Sciences.

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The Seven Pitfalls of Business Failure and How to Avoid Them

by Patricia Schaefer

When you're starting a new business, the last thing you want to focus on is failure. But if you address the common reasons for failure up front, you'll be much less likely to fall victim to them yourself. Here are the top 7 reasons why businesses fail and tips for avoiding them.

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ccording to statistics published by the Small Business Administration (SBA), about half of all employer establishments survive at least five years and a third survive ten years or more. This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.

Often overlooked, less-than-robust health has been responsible for more than a few bankruptcies.

You have drive, determination, patience and a positive attitude. When others throw in the towel, you are more determined than ever.

Failures don't defeat you. You learn from your mistakes, and use these lessons to succeed the next time around.

Brian Head, Economist with the SBA Office of Advocacy, noted that studies of successful business owners showed they attributed much of their success to "building on earlier failures;" on using failures as a "learning process."

You thrive on independence, and are skilled at taking charge when a creative or intelligent solution is needed.

This is especially important when under strict time constraints.

You like -- if not love -- your fellow man, and show this in your honesty, integrity, and interactions with others. You get along with and can deal with all According to statistics published different types of individuals. by the Small Business Administration (SBA), about half of all employer establishments survive at least five 2. Poor Management

Better success rates notwithstanding, a significant percentage of new businesses do fail. Expert opinions abound about what a business owner should and shouldn't do to keep a new business afloat in the perilous waters of the entrepreneurial sea. There are, however, key factors that -- if not avoided -- will be certain to weigh down a business and possibly sink it forevermore.

1. You start your business for the wrong reasons.

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ould the sole reason you would be starting your own business be that you would want to make a lot of money? Do you think that if you had your own business that you'd have more time with your family? Or maybe that you wouldn't have to answer to anyone else? If so, you'd better think again.

On the other hand, if you start your business for these reasons, you'll have a better chance at entrepreneurial success: You have a passion and love for what you'll be doing, and strongly believe -- based on educated study and investigation -- that your product or service would fulfill a real need in the marketplace.

You are physically fit and possess the needed mental stamina to withstand potential challenges.

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any a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees.

Unless they recognize what they don't do well, and seek help, business owners may soon face disaster. They must also be educated and alert to fraud, and put into place measures to avoid it.

Neglect of a business can also be its downfall. Care must be taken to regularly study, organize, plan and control all activities of its operations. This includes the continuing study of market research and customer data, an area which may be more prone to disregard once a business has been established.

A successful manager is also a good leader who creates a work climate that encourages productivity. He or she has a skill at hiring competent people, training them and is able to delegate. A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new 17 possibilities for the future.

thodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.

It is critical for all businesses to have a business plan.

Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

3. Insufficient Capital

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common fatal mistake for many failed businesses is

having insufficient operating funds. Business owners underestimate how much money is needed and they are forced to close before they even have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales.

It is imperative to ascertain how much money your business will require; not only the costs of starting, but the costs of staying in business. It is important to take into consideration that many businesses take a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs. This business startup calculator will help you predict how much money you'll need to launch your business.

4. Location, Location, Location

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our college professor was right -- location is critical to the success of your business. Whereas a good business location may enable a struggling business to ultimately survive and thrive, a bad location could spell disaster to even the best-managed enterprise.

Some factors to consider:

Where your customers are Traffic, accessibility, parking and lighting Location of competitors Condition and safety of building Local incentive programs for business start-ups in spcific targeted areas The history, community flavor and receptiveness to a new business at a prospective site 5. Lack of Planning

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nyone who has ever been in charge of a successful major event knows that were it not for their careful, me-

Components may include: Description of the business, vision, goals, and keys to success Work force needs Potential problems and solutions Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast Analysis of competition Marketing, advertising and promotional activities Budgeting and managing company growth In addition, most bankers request a business plan if you are seeking to secure additional capital for your company.

6. Overexpansion

A

leading cause of business failure, overexpansion often happens when business owners confuse success with how fast they can expand their business. A focus on slow and steady growth is optimum. Many a bankruptcy has been caused by rapidly expanding companies.

At the same time, you do not want to repress growth.

Once you have an established solid customer base and a good cash flow, let your success help you set the right measured pace. Some indications that an expansion may be warranted include the inability to fill customer needs in a timely basis, and employees having difficulty keeping up with production demands.

If expansion is warranted after careful review, research and analysis, identify what and who you need to add in order for your business to grow. Then with the right systems and people in place, you can focus on the growth of your business, not on doing everything in it yourself.

In addition, most bankers request a business plan if you are seeking to secure additional capital for your company.

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7. No Website

Brookings Airport Infrastructure

Simply put, if you have a business today, you need a website. Period.

Project Starts in May

I

project that will extend water and sewer service to the

n the U.S. alone, the number of internet users (approximately 77 percent of the population) and ecommerce sales ($165.4 billion in 2010, according to the US Department of Commerce) continue to rise and are expected to increase with each passing year.

Kicking off a highly anticipated, long awaited $2.9 million Brookings Airport and surrounding properties, Contractor McLennan Excavation will begin preliminary work in the Parkview Drive and Dodge Avenue area on May 9.

This first phase of work includes a significant amount of earthwork and trenching which will require heavy equipment to be operating there throughout the summer. Construction hours will be limited to 7 a.m.–7 p.m. on weekdays and 8 a.m.–7 p.m. on weekends or holidays.

Utilizing over $1.7 million in grant funding awarded in 2012 by the US Economic Development Administration, this project will provide water and sewer services to both the airport and to the underserved residential properties located nearby.

At the very least, every business should have a professional looking and well-designed website that enables users to easily find out about their business and how to avail them-

“We have finally completed the many environmental studies and agency approvals required before starting con-

selves of their products and services. Later, additional ways to generate revenue on the website can be added; i.e., selling ad space, drop-shipping products, or recommending affiliate products.

struction, so now we are eager and ready to commence,”

Remember, if you don't have a website, you'll most likely be losing business to those that do. And make sure that website makes your business look good, not bad -- you want to increase revenues, not decrease them.

lion gallon water storage tank, will spur economic devel-

When it comes to the success of any new business, you -the business owner -- are ultimately the "secret" to your success. For many successful business owners, failure was never an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most self-made millionaires possess average intelligence. What sets them apart is their openness to new knowledge and their willingness to learn whatever it takes to succeed.

said City Manager Gary Milliman.

This project, which also includes construction of a 1/2 milopment by providing infrastructure necessary to support light industry and/or airport-dependent development on the approximately 155 acres at and adjacent to the airport that were recently annexed into Brookings.

“We receive numerous requests from potential developers and small business owners looking to relocate,” said Milliman. “With this improvement, we will now be able to offer them shovel-ready development options.”

Mayor Ron Hedenskog added, “I think this project is vital to reversing the effects of the economic downturn and will have a prolific impact on Brookings’ future. I am very pleased it is getting underway.”...

The project is expected to be complete by January of 2017.

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Curry County “2016 the Year of Opportunity” State of the County “Curry County must take every opportunity to support businesses so they can thrive, grow and succeed. We must support opportunities for better housing and more jobs. We must support our citizens and our natural resources.

Commissioner Susan Brown

We must embrace innovative ideas, explore every potential solution and seek out new ways of thinking to continually improve the quality services the county delivers and more importantly, improve the quality of life for all our residents…”

“Curry County can be successful if we all come together, be open to new ideas, and create opportunities. Curry County leadership cannot achieve these goals alone. Our successes come from dedicated staff members who deliver county services and work behind the scenes every day to carry forward the mission of the county. I am going to take this opportunity to share our many successes in 2015…”

“Sheriff John Ward explored funding options for his department through citizen input which brought awareness of issues his department faces daily. Sheriff Ward was able to increase jail space and streamline procedures to operate the jail more efficiently.

Several Sheriff’s Department staff was recognized across the State for their excellence in service, starting with Deborah Storns who received the prestigious Victor Atiyeh Award. Sergeant Ted Heath and Deputy Walter Scherbarth both received Life Saving Awards for their life-saving efforts during a boating incident. Deputy Joan Allen Steineke was awarded the Civil Manager of the Year. Search and Rescue had more than 20 missions and were responsible for several life-saving rescues.

Upgrades to the 911 equipment have begun and a new county wide mass notification system is being implemented. Public Services Director, Dave Pratt, retired after nearly ten years of service to the county. The department was renamed the Community Development Department and we were fortunate to hire Carolyn Johnson as the new Director. During 2015, 366 building permits were issued, exceeding those from 2014 by 54 permits. Positive growth is happening.

Roadmaster Doug Robbins has reported no real significant events but continues to work diligently to keep the county’s 225 miles of road and 33 bridges in good repair. The Morrill Bridge on Floras Creek Road showed major signs of deterioration and has been temporarily fixed, funding will be pursued to replace the bridge…”

“We started 2015 with a focus to become more proactive and start the process of planning for the future of our county. Now in 2016, with the information gathered through data, analysis, and community forums, we have the foundation of a strategic plan for Curry County. Our most powerful course of action for success requires careful planning and committed dedication to move the county’s vision forward.

Every strategic plan presents challenges and opportunities. Our challenges are many, but our opportunities are vast. That is why I am declaring 2016 the Year of Opportunity.

Working together, we can seize on the opportunity to better our county. Working with leadership in our cities, ports, and local organizations, we can pursue opportunities for partnerships to address important issues.

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Economic Development Director, Julie Schmelzer and staff had a very busy year and brought some major ideas to fruition. Starting with a new tourism and economic development website; www.TravelCurryCoast.com. This site promotes the entire county, as well as provides economic development information.

The Strategic Technology and Economic Development Task Force was organized and developed a plan on how best to utilize the fiber optic loop that runs through the county. 900 parcels of county owned land was studied to determine best use with highest impact. Economic Development facilitated the partial filming of a movie based on the book, The Man Who Planted Trees, which documented several events in Curry County where members of the Archangel Ancient Tree Archive and citizens of Curry County planted cloned redwoods and helped propagate the Coast Redwoods.

Veteran’s Service Officer, Tony Voudy, has completed his training and accreditation to provide the best possible service to our county veterans. More than 1,000 Veterans have been assisted through this office since Tony began his post. The Veterans Office has a new partner location in Port Orford to accommodate the needs of our North County residents.

Parks Director, Jay Trost, partnered with Economic Development to raise funds through county events to repair cabins at Lobster Creek Campground. In Tune with the Trees and the First Annual Fungi Festival raised enough money to repair 2 cabins and the Gold Beach Rotary Club stepped in to repair the main building at Lobster Creek.

all the large animals off the runways at the Brookings airport. Curry County provides a variety of services to the communities every day; issuing marriage certificates and occasionally performing the ceremonies, recording home sales and deeds, conducting elections, maintaining roads and county parks, issuing building permits, performing building inspections and processing land use applications, supporting the county fair, planning for disasters, overseeing public health and animal control, caring for our veterans and maintaining public safety.

Curry County Courthouse These and many other services are the backbone of county government. The County Board of Commissioners sets the tone and leads through actions. It’s up to this board and subsequent boards to determine the course of this county and in times of financial and social challenges, as we have today, leadership is more important than ever.”

Curry County appointed a new County Surveyor, Reily Smith, who has updated the surveyor’s office and brought Susan Brown Chair, the department into the twenty-first century; developing a Curry County Board of Commissioners user friendly website and organizing maps and surveys which are now more easily accessible to the public.

Curry County RSVP volunteers donated more than 16,778 hours of time in 2015 for a value of more than $387,000.00. Nancy Vanderlinder donated more than 725 hours at the Brooking Harbor Food Share and was named the RSVP Volunteer of the Year.

Facilities Director, Eric Hanson, upgraded heating, airconditioning, de-humidifying and air purification systems which made our buildings healthier and safer, and improved LED lighting systems has resulted in cost saving to the county.

Work has finally begun on the wildlife fence that will keep 21

Oregon Office of Economic Analysis Posted by: Josh Lehner | May 3, 2016, Oregon Office of Economic Analysis

Oregon and the Business Cycle Raise your hand if you’ve heard that Oregon lags the business cycle? Or worse yet, that Oregon falls first and recovers last? Something along these lines really does seem to be the conventional wisdom. In this case, the conventional wisdom is wrong.

While the NBER has a business cycle dating committee for U.S. recessions, no such entity exists for local or regional recessions. In the past I have used University of Oregon professor Jeremy Piger’s dating algorithm to try and gauge this. Today I want to focus just on employment, one of the

only really good indicators available at the local level.

First, a quick look at employment growth in recent decades. This graph is always included in our office’s presentations as it clearly shows how Oregon fares over the business cycle.

Clearly Oregon is more volatile than the U.S. overall. We fall further in recession but grow quicker in expansion. In the good times we call this our traditional advantage. Much of the volatility comes from the state’s industrial structure (natural resources and manufacturing are very pro-cyclical) and our population growth (migration ebbs and flows with the cycle). Given that the economy spends many more years in expansion than in recession, Oregon comes out ahead over

the full cycle.

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This next graph shows how Oregon fares over the entire cycle relative to the U.S. by measuring employment change from one business cycle peak to the next business cycle peak.

In most cycles since World War II, Oregon comes out ahead. This is true today as well. Right now Oregon employment is 4.9% above pre-Great Recession levels while the U.S. is 3.9% above.

There are a couple of exceptions however. In the 1980s, Oregon’s full business cycle was weaker than the U.S. due to the timber industry restructuring in the early 1980s. At the time, Oregon lost 12% of its jobs while the U.S. only lost 3% of its jobs. Another exception is during the Asian Financial Crisis in the late 1990s. While Oregon’s growth in the 1990s was stronger than the U.S., those last few years did see slower job gains (see the first graph where the dark blue line drops below the light blue line).

Ok, but how does our regional business cycle line up with the nation’s? The table below compares the month when Oregon employment peaks relative to when U.S. employment peaks for each recession since 1960.

The big takeaway here for me is that there are not many differences at all. In fact, if you average these figures, Oregon actually leads the national employment cycle both entering and exiting a recession. Oregon does not lag. Personally I would not make too much out of a couple months here or there based on the data. But the point is clear that Oregon’s business cycle is very much in sync with

the U.S. cycle and Oregon does come out ahead over the full cycle.

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A Person for the Job

Perhaps the most difficult thing to do in any decision making process is to hire someone for a mid- to upperlevel management job. Obvious mistakes in past hiring decisions are all around us.

covered that all the really good leaders in our nation’s history were elected as a matter of dumb luck by the voters rather than informed decision-making.

Voting is an emotional event. Logic often stays home on election night. Dumb luck sits in the hallway waiting to see if he’s called at the end of the election process.

We’ve recently read of city managers losing their jobs The largest piece of emotional voting is the single issue. because city councils believe it’s time to move “in another direction.” College presidents know from early in their Suppose there are a thousand different things the new service that the only certainty is that the day is coming leader will have responsibility to direct. Now, suppose when they will be told to clean out their desk and pick up you are on the hiring team and you believe strongly in their severance check on the way out. one of those thousand things. Add in the possibility that your ‘one thing’ isn’t as important to the job candidate Usually the problem is at least two-fold. First, the hiring as it is to you. Logic says that if the two of you agree on body doesn’t know what they want well enough to con999 of those 1,000 responsibilities you should be able to struct a viable job description. Instead they decide to list find a way to compromise on that one thing over which the requirements from feeding the chickens to repopulat- you disagree. But, often we don’t. ing Eden with magicians able to cure all diseases, eliminate bias, feed everyone and remove ‘war’ from our dictionaries. Secondly, their list of priorities in the selection process begins with personalities that match their own, leaning heavily toward anyone that will be subservient to their wishes – the extensive qualifications on the resume’ are nice, but second in importance to the applicant’s willingness to bow to the ridiculous ideas of the hiring team.

There are times when a single issue is vastly more important to either the voter or the candidate than all the All they really want is a “yes” man. other issues combined and neither can compromise.

Okay, move on – agree to disagree, or find a better canAnd now we’re trying to find a qualified candidate to be didate (or informed voter).

President of the United States of America. The challenge is that most people who There are a lot of people who say they want to be presivote, from either party, dent. There may be one who would be great. There is no or no party at all, lack job description because the American voters have been the skills needed to unable to decide on one. How do voters decide? Emomake proper leadership tion takes control. choices; this is understandable, given we Electing a Great President should be more than a matter don’t know what to inof “dumb luck.” clude in the job descrip. tion.

I hope so.

It wouldn’t surprise me at all if researchers dis-

Greg Henderson, Publisher Southern Oregon Business Journal 24