July/August 2014 VOICE Magazine

JULY/AUGUST 2014

THURSTON COUNTY CHAMBER OF COMMERCE

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handcrafted The Kitson boards startup playbook See Page 12

The tumwater brewery redevelopment Project SEE PAGE 23

B UI L D ING COMMUNITY PROSPERITY FOR 14 0 YEARS

CONTENTS

CALENDAR

Page 3 .......................Chair's Column: Ingredients for Success Page 3................................................................Save the Date!

Page 4 ..........................President's Column: Mission in Action Page 5..................Workforce Development: Camo2Commerce Page 7................Many Ways to Play Downtown this Summer!

Page 9..........South Sound Showcase: Procurement Expo 2014 Page 10 .............................................Welcome New Members!

Page 12 ...........................Kitson Boards Inc. Startup Playbook Page 16..............Introducing the 2014-2015 Board of Trustees Page 20 ......................................................Networking Events Page 23............................Tumwater Brewery Redevelopment 809 Legion Way SE P.O. Box 1427 Olympia, WA 98507

Copyright © 2007 Thurston County Chamber ALL RIGHTS RESERVED Published bimonthly by the Thurston County Chamber.

www.thurstonchamber.com info@thurstonchamber.com 360.357.3362

July 1 Morning Mixxer - 7:30 - 8:30 a.m. - Liberty Mutual 300 Deschutes Way SW Suite 210, Tumwater July 2 Young Professionals Network - 5:30 p.m. - Pints Barn 114 E Street, Tumwater July 9 Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel Olympia Topic: Capitol Lake July 17 Business After Hours - 5:30 p.m. - 7:30 p.m. Columbia Bank, 303 Union Ave SE, Olympia July 22 SBA Loan Seminar - Noon - 1 p.m. Thurston County Chamber, 809 Legion Way, Olympia August 2 Olympia Brew Fest 1 p.m. - 8:30 p.m.

Port Plaza August 5 Morning Mixxer - 7:30- 8:30 a.m. - Jennie Patton, Attorney At Law. 2018 Caton Way SW - Olympia August 7 Young Professionals Network - 5:30 p.m. - NW Harley Davidson 8000 Freedom Ln NE, Lacey August 13 Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel Olympia Topic: T.B.D. August 21 Business After Hours - 5:30 p.m. - 7:30 p.m. Complete Nutrition, Olympia

Join the conversation online at facebook.com/ThurstonCountyChamber.

These events require pre-registration at www.thurstonchamber.com

BUILDING COMMUNITY PROSPERITY FOR OVER 135 YEARS Diamond Investors: Anchor Bank Capital Medical Center Heritage Bank Phillips Burgess Physicians of Southwest Washington Port of Olympia Versoria Xerox

Executive Officers Ron Bruchet, Chair GHB Insurance Mariella Cummings, Chair Elect Physicians of Southwest WA Jessica Coen, Vice Chair Xerox Company Neil Woody, Treasurer McSwain & Company P.S. Mike Marohn, Past Chair 94.5 ROXY

Platinum Investors Forma Construction GHB Insurance Lucky Eagle Casino & Hotel McSwain & Company, PS Mills & Mills Funeral Home & Memorial Park Morningside Puget Sound Energy Red Lion Hotel Olympia TwinStar Credit Union Washington Business Bank

Gold Investors America's Credit Union • Cabinets by Trivonna • Columbia Bank • The Creative Office D Zines • First Citizens Bank Express Employment Professionals Great Wolf Lodge • Iron Heights Jessica Jensen Law PS LOTT Alliance • Nisqually Red Wind Casino Olympia Orthopaedic Associates Pardiman Productions Providence St. Peter Hospital Saint Martin’s University • SCJ Alliance

CHAMBER BOARD & STAFF Board of Trustees

George Barner, Port of Olympia

Michael Cade, Thurston EDC Jean Carr, SCJ Alliance David Cullen, David D. Cullen Dick Cvitanich, Olympia School District

Perry Hanchey, Diamond Technology Innovations Jim Leonard, Group Health Cooperative

Development Council

Drew Phillips, FORMA Construction Cheryl Selby, Vivala Kevin Stormans, Stormans Inc. Ann Sweeney, Red Lion Hotel

Jim Geist, Capital Medical Center

Faith Trimble, The Athena Group

Cheryl Fambles, PAC Mountain Workforce

Sandi Wilson, Thurston First Bank Editor: David Schaffert Layout & Design: Natasha Ashenhurst

Cover Photography by Steve Mason for Kitson Boards. Photo taken at Swantown Marina. Printing: Print NW 2 • July/August 2014 Thurston County Chamber VOICE

Chamber Staff David Schaffert, President/CEO Sytease Geib, VP Workforce Development Marny Bright, VP Member Services Alisha Blain, Events Coordinator Laurie Bjerke, Admin. Assistant Debbie Burk, Business2Business Kathleen Cooper, Business2Business Beth Johnson, Member Services Rachael Lebon, Business2Business Pam Singleton, Finance Officer Matthew Sult, Member Services Martha Wagner, Member Services Michele Winn, Camo2Commerce www.thurstonchamber.com

M ESSAGE FROM BOAR D C H A IR

Ingredients for Success: Engage, Embrace Change

By Ron Bruchet, President GHB Insurance Ron Bruchet

I

recently read a Scope View report that was conducted for another non-profit organization in our community. The title of the report was, “Turbulent Times Demand Great Boards”. I won’t discuss the entire study here, but there were some key points that are relevant for any non-profit organization — including the Thurston County Chamber of Commerce — or private corporation.

The study begins with the premise that we are all operating in a very demanding and competitive environment, and that this is not likely to change any time soon.

In one way or another, we’ve all had to deal with issues like a tough economy, faster information technology, having to redefine our value proposition, communicating differently between generations, changes in how we use technology, and an ever increasing level of competition. As a result, the article suggests it’s more critical for organizations to surround themselves with effective, engaged and innovative board members and staff, or risk losing their relevance and ultimately failing.

For me, engagement and a willingness to change are two of the most important ingredients for any successful organization.

When things are going well, it’s easy to become complacent and resistant to change, making it difficult to identify and react to unforeseen economic conditions. The study reminds us of corporations that are now gone — like Arthur Andersen, Circuit

City, and Borders -- which failed because they were unwilling to change or had ethical shortcomings.

With a 140 year history, the Chamber — with its staff and Board of Trustees — has been successful at being forward-thinking and advocating for economic development, regional planning, education, workforce development, and finding balance between government and the private sector. But as the report suggests, it’s important that there be a “continuous reassessment and reposition of the organization to deal with changing conditions in the marketplaces in which it functions.”

Over the next couple of months, the Board — with the help of David Schaffert and staff — will continue to define the critical needs of the community and identify the areas where we need more engagement from the Board, staff, and Chamber membership.

The study concludes, “You gain relevance by making a collaborative difference in one area, another one somewhere else … small to medium size differences that ultimately add up to large scale gains.”

I’m looking forward to assisting the Chamber in continuing its long and rich legacy of addressing the many challenges and opportunities that our community faces.

SAVE T H E DAT E !

Brew, food and bands. You can help out your community by enjoying over 60 different beers from 30+ hand-picked, Northwest breweries.

Come and celebrate Olympia's fine brewing heritage! Proceeds benefit the Thurston County Chamber Foundation's Small Business Incubator.

Foofaraw Military Appreciation Friday, September 5; Island Home Military appreciation event hosted by the Chamber and the Olympia Yacht Club. Sponsorship opportunities available.

Bite of Business After Hours Thursday, October 16, 5:30 p.m., Indian Summer Experience the culinary diversity available in Thurston County! Taste samples from regional vendors.

Saturday, August 2, 2014 Port Plaza 1 p.m. to 8:30 p.m., last call 8:00 p.m.

Tickets $25 (21+ only) www.olybrewfest.com More information about upcoming events can be found at www.thurstonchamber.com. www.thurstonchamber.com

Thurston County Chamber VOICE  July/August 2014 3

M ESSAGE F RO M C H A MB ER PRES ID E N T

Math for Life Letter Demonstrates Chamber's Mission in Action

By David Schaffert, Thurston County Chamber of Commerce President/CEO

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he Thurston County Chamber of Commerce is a community-based business association with two primary missions. The first is to ensure business has the tools and services to succeed. The second is stewardship of community, ensuring we are a fully functioning, healthy community. The Chamber does this through its structure and program of work.

The other day, I received the following letter from Mandy Freds — a Tumwater parent and military spouse — whose family was part of the Math for Life program. I think the letter demonstrates our mission in action.

“My family would like to say ‘thank you’ for organizing such a fun, creative project for school-age children (and their families) that puts emphasis on the role of math in our communities! My kids had a blast riding around to different locations in our area answering questions from some energetic and friendly business owners/employees that participated in the program.

“What we really liked is that everyone explained to my kids how math played a part in their daily tasks at that location. And, my mom (grandma from out of town) loved that she was exposed

David Schaffert

to new businesses in the area and even purchased items from a few places! For us, it was a win-win in our efforts to get our kids more involved with math initiatives and explore some local businesses that were on the 2014 Map. “Thank you from our whole family. We will continue to spread the word so that others know how rewarding participating was for us!

“A special thank you to the sponsors and prize donators. The medal was worn proudly to school the next day by our first grader and the LimeBerry’s gift cards were a great surprise for both boys at the end-of-year assembly. This took math to a whole new level!!

“Proud to be part of such a great County that puts emphasis on programs that make everyone involved better individuals!”

Math for life is a program of the Thurston County Chamber Foundation. The program’s purpose is to connect community and youth with business demonstrating the importance of math in life.

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WORKFORCE DEVELOPMENT

Camo2Commerce: Tapping into Skilled Workforce Strengthens Regional Economy

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By Natasha Ashenhurst

he Pierce-Thurston county region has the third largest population of veterans in the country. Over the next four years approximately 36,000 Service Members currently serving at Joint Base Lewis McChord (JBLM) will transition out of the military. Studies estimate that many of those exiting military personnel will remain in the region if they can find careers here.

Camo2Commerce is a program created out of the commitment from the US Department of Labor through Congress and the State of Washington to support those transitioning Service Members through training and career development. It is a Pacific Mountain Workforce Development program subcontracted by the Thurston County Chamber of Commerce, along with other partners including Thurston Economic Development Council, Morningside and Workforce Central.

She also explains that there are a lot of veteranowned businesses in Thurston County who want to hire veterans, but need a way to reach them.

Camo2Commerce provides that crucial link into JBLM.

A benefit especially appealing to businesses is the On-the-Job-Training (OJT) program. “Essentially, OJT is a reimbursement of 50 percent of wages for the first three months to offset training expenses of transferring military skills into civilian employment,” said Winn. OJT incentivizes an employer to hire and train a service member that In April, Michele Winn joined the Thurston may not possess the civilian equivalent of a required County Chamber of Commerce as the skill, but may have acquired a similar skill set while Michele Winn (Photo courtesy of Heather Harris, Elements on active duty through the military. business developer for Camo2Commerce.

Photography.)

Winn has spent the last two months learning Career Development for Transitioning Service about the program and making contact with businesses and Members transitioning Service Members. “She is a great fit for the position due to her years of experience in human resources and staffing,” Winn spends hours on the phone each day, working one-on-one said Sytease Geib, Vice President of Workforce Development at coaching transitioning service members on career development. the Chamber.

“Service members often sell themselves short. They are not used to tooting their own horn, so we work with them to develop a Not only does Winn have extensive human resources experience, resume that shares their experience and translates their skills into but she is a military spouse. “I know how to translate military benefits that businesses can recognize,” said Winn. lingo, which is full of acronyms, into language that means something to a civilian,” said Winn. She explains that matching what companies want with skills transitioning Service Members possess and then merging the two involves translating military speak.

“The biggest part of my job is reaching out to businesses explaining the benefits of hiring exiting Service Members and looking for ways to plug them into those job openings. It is about matching up skills and experience to provide businesses with candidates to interview,” said Winn.

The Benefits of Hiring Exiting Military According to Winn, veterans are disciplined, highly adaptable, have incredible work ethic and leadership skills. “They have so many soft skills that make them very employable. They also tend to be very committed and handle stress well,” she said.

www.thurstonchamber.com

When she is not working with veterans, she is planning hiring fairs, conducting business outreach and orchestrating contracts with businesses.

Ultimately, Winn sees her job as workforce and economic development. She explains, “My job is to approach companies who wouldn’t have thought about hiring military. We need to capture those skills leaving JBLM and minimize the impact of their departure on our region’s economy."

Geib adds, “Businesses in our region have the unique opportunity to fill their current job openings with highly skilled and trained transitioning Service Members. The translatable skills and soft skills these service members possess are not easily found in the civilian sector, and meet the workforce demands of many employers in this region.” ●

Thurston County Chamber VOICE  July/August 2014 5 

MEMBERSHIP

Forum - Wednesday, July 9

The Future of Capitol Lake Thurston County Chamber of Commerce Forum Wednesday, July 9, 11:30 a.m.

Red Lion Hotel Olympia

C

apitol Lake allows three marinas to exist, the Port of Olympia to stay busy and our downtown to thrive. However, Capitol Lake is at risk. It is full of sediment, and — according to state studies — up to six feet of sediment will build up over the next few years in Lower Budd Inlet. Implementation of a maintenance program is crucial in order to avoid losing the lake and Lower Budd Inlet to a tidal mud flat.

Capitol Lake Improvement and Protection Association (CLIPA) is a coalition of citizens working to improve, maintain and preserve Capitol Lake. Improving Capitol Lake requires a watershed-wide sustainable solution that is in line with the original lake vision as well as current and future needs. The Thurston County Chamber of Commerce supports CLIPA’s vision for lake improvement.

Join our July Forum for a community discussion about the future of Capitol Lake. Learn more about what CLIPA is doing to improve the lake. This is an important community issue. Please join the conversation for a vibrant economy and community.

Forum includes lunch and the cost is $30 for general admission, $20 for prepaid Chamber members, and $25 for members at the door. Visit www.thurstonchamber.com to make your reservation today, or call 360.357.3362.● Forum Sponsor

Program Sponsor

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6 July/August 2014 Thurston County Chamber VOICE

Leads Groups Nurture Economic Vitality With New Relationships

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he Chamber’s Leads Groups demonstrate the value of active participation in business development groups.

Each of the five leads groups — listed below — include business owners and sales professionals from non-competitive industries committed to help each other cultivate their businesses.

“I have been attending a Chamber leads group for the last five years,” said Tom Lally, an agent with GHB Insurance. “I have seen an increase in business and built lasting relationships with other business owners.”

LEADS AT LUNCH

Tuesdays; 11:30 a.m. to 12:30 p.m.

Ramblin’ Jacks; 520 4th Ave, Olympia; Contact: 360.357.3362

TOP FLIGHT

Thursdays; Noon to 1 p.m.

Pellegrino’s Event Center; 205 Cleveland Ave SE, Tumwater; Contact: 360.357.3362

WIRED

Thursdays; 8:30 to 9:30 a.m.

Paisely's Cafe 625 Black Lake Blvd S, Tumwater Contact: Beth Johnson, 360.357.3362

CAPITOL LEADS

Wednesdays; 7:45 to 9 a.m.

Elyse’s Catering; 3238 Capitol Blvd S., Tumwater Contact: 360.357.3362

WOMEN'S REFERRAL GROUP 2nd and 4th Thursdays 5:15 to 6:15 p.m.

Mills & Mills Funeral Home 5725 Littlerock Rd SW, Tumwater Contact 360.357.3362

www.thurstonchamber.com

Many Ways to Play Downtown this Summer

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owntown Olympia has a funfilled summer planned for Thurston County. Mark your calendar and plan to attend these events!

Music in the Park

July 9 – Aug. 27; Sylvester Park This summer concert series is held every Wednesday at 7 p.m. at Sylvester Park, with the exception of the performance on Friday, Aug. 1, at 7 p.m. at the Port of Olympia. www.musicintheparkolympia.com.

Capital Lakefair

July 16-20; Capitol Lake and surrounding area This annual five-day community festival includes a carnival, summer sidewalk sale, kid’s day, Lakefair Run, volleyball tournament, battle of the bands, food concession booths, live entertainment & fireworks display. www.lakefair.org.

Olympia Traverse

Saturday, July 26; Port Plaza Olympia Traverse is a multi-sport adventure relay for solo, tandem, relay and Traverse Company Teams celebrating the life cycle of wild salmon. It all starts out in the Capitol Forest and winds its way into downtown Olympia. www.olympiatraverse. com.

Olympia Brew Fest Aug. 2; Port Plaza Join the Thurston County Chamber for the Third- Annual Olympia Brew Fest.

This celebration will feature more than 60 different Northwest brews, food and live music. www.olybrewfest.com.

Sand in the City

Aug. 23-24; Hand’s On Children’s Museum, 414 Jefferson St NE The South Sound’s largest family sand festival includes a community sand sculpting competition, giant sandboxes for play, art and educational activities, live animals, a marine touch tank, a climbing wall, live entertainment and local food vendors. www.hocm.org/sandinthecity

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8 • July/August 2014 Thurston County Chamber VOICE

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After 25 years, Business Showcase changes name and focus. Introducing South Sound Showcase: Procurement Expo 2014

F

or nearly 25 years, Thurston County businesses have participated in the Chamber’s annual Business Showcase. The format of the event was a traditional trade show that allowed businesses to promote their goods and services to the general public.

Last year, the event changed focus to include a procurement and government buyer component. “We heard from our members that they wanted a chance to connect with buyers from local government and larger businesses, so we partnered with Thurston EDC’s Procurement Technical Assistance Center (PTAC) to create a new event. The response was overwhelming, so this year we are continuing to focus on procurement,” said David Schaffert, Chamber President/CEO. PTAC assists businesses throughout the year with selling to governments. “One of the best ways for a business to understand how to succeed in contracting is to learn and connect with the local buyers in person. The new event focus allows those valuable interactions to happen” explains Tiffany Scroggs, Thurston EDC’s PTAC Program Director.

Marny Bright, Vice President of Member Services agrees, “Attendance at traditional trade shows is declining. The business model has changed, so we’re changing too. Our members asked for a way to connect with buyers, so this is it.”

Along with the format change, the name has changed too. This year, on October 7, businesses can buy a booth at the South Sound Showcase: Procurement Expo 2014. The cost is $375 and includes a listing in the South Sound Purchasers’ Directory, a printed directory that is used by government buyers and Showcase attendees to buy goods and services locally. “The directory is a great opportunity for businesses that provide goods and services to government. It sits on buyer’s desks all year-long and is what they turn to when looking to buy locally,” said Schaffert.

The line-up of government buyers who have already agreed to attend includes: the City of Olympia, the City of Tumwater, the City of Lacey and Thurston County.

was amazing. They were able to connect with buyers and other businesses,” said Schaffert.

Showcase will also include a number of workshops geared toward procurement and what businesses need to know in order to do business with local government.

“We’re responding to government who want to do business locally, and from businesses wanting to connect directly to buyers. Showcase will increase local awareness of what government buys and will help government buy locally,” said Tiffany Scroggs, Program Director of PTAC. “It is a win for government and business.”●

South Sound Showcase: Procurement Expo 2014 Information: When? October 7, 10 a.m. - 4 p.m.

Where? Saint Martin's University Marcus Pavilion. 5300 Pacific Ave., Lacey

! Includes • Entrance RowDBooth, OUT$425.

OL SDirectory Listing.

• Standard Row Booth, $375. Includes Directory Listing.

Reserve your spot today!

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Brought to you by:

Businesses who took part last year are already registering for this year’s attendance, and booth space is filling up fast.

“Members are telling us that the quality of foot traffic last year

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Thurston County Chamber VOICE  July/August 2014 9

The Chamber Welcomes New Members who Joined in April & May A Beautiful Face & Skin Care, LLC Coleen Larrett www.skincareolympia.com Beauty Salons & Services AB Insurance & Associates, LLC Gia Brooks www.abinsurancellc.com Insurance Action Chiropractic Rhonda Darrington Chiropractors, D.C. ASAP Business Solutions L.L.C. Dee Skelton www.ASAPBiz.com Business Services The Back Door Bakery Alison Kloft www.backdoorpie.com Bakers - Retail Belmont Enterprises, Inc. Jack Belmont Trucking Companies Benson Management Services Lance Benson Property Management Best Western - Tumwater Rose Ponzoha www.bwtumwater.com Hotels & Accommodations Buben School of Beauty Shara Buben Beauty Salons & Services Cheryl Heinrichs Architecture Cheryl Heinrichs www.CHArchitecture.com Architects Cintas Corporation Keith Hurley www.cintas.com Uniforms The Combined Fund Drive (CFD) Dawn Sanquist Non-Profit Organizations Complete Nutrition Joni Schildman www.completenutrition.com Health, Fitness & Nutrition Consultants Days Inn & Suites Lacey Sarah Prohim www.daysinn.com Hotels & Accommodations

Dispute Resolution Center of Thurston County Evan Ferber www.mediatethurston.org Mediation Service Driven HR Consulting Tyra Timms www.drivenhrconsulting.com Employment Services & Consultants Elements Photography Heather Harris www.elementsphotodesign.com Photographers EnduraCare AcuteCare Services Chris Nixon www.mycmctherapy.com Physical Therapists Las Palmas Jarochas Severiano Montes Restaurants Twister Donuts Antonio Puarte Restaurants Friendly Village Rachelle Woodcook Manufactured - Mobile Home Parks GenX Computer Solutions Guy Waynick www.genxcompus.com Computers - Software & Services Hamilton Massage Trina Hamilton Massage Therapy Iron Heights Brock Brown www.ironheights.com Computers - System Designers & Consultants J & I Power Equipment Yelm Angela Longnecker www.jnipe.com Power Equipment Keller Williams - Meripat Spalding Meripat Spalding www.spaldinghomes.4u Real Estate Agents The Lucky Lunchbox Jim Butigan www.theluckylunchbox.com Caterers Main Street Cookie Company Joycelyn Zambuto www.mainstreetcookies.com Restaurants

Meagan’s Candy Cottage Meagan Hartford Candy Manufacturers MKD Marketing Design Mary K Johnson www.mkjohnsondesign.com Marketing Consultants Multicare (Mary Bridge Pediatric Urgent Care) Genell Brown www.multicare.org/marybridge Hospitals Mutual of Omaha Bridget Pannell Insurance Naked Prosthetics Dulcey Lamotte www.nakedprosthetics.com Medical Equipment & Supplies Neuro Sleep Diagnostics Marsha Fulton www.neurosleepdiagnostics.com Health Maintenance Organizations New York Life - Alan-Michael Alston Alan-Michael Alston Insurance Nisqually River Foundation Justin Hall www.nisquallyriver.org NW PC Mobile Tech Shawn Ratzel www.nwpcmobiletech.com Computers - Sales & Service Occasions Catering & Special Events Karla Curry www.occasions-catering.com Caterers Olympic Plumbing Technology Kimberly Bosler www.olympicplumbing.com Plumbing & Septic Contractors On Site Glass Solutions & More, LLC Christy Gullard Glass & Windows Panowicz Jewelers Shane Bornstein www.panowicz.com Jewelry - Retail & Repair Pearle Vision Julie Palmer www.pearlevision.com Opticians

The Pet Works Rebecca Smith www.thepetworks.net Pet Services Phyl’s Furniture Connexion Eric Magnan www.furnitureconnexion.com Furniture - Retail & Custom Pints & Quarts - Lacey Scott McKinney www.pintsandquartspub.com Restaurants Pints Barn Scott McKinney Restaurants Phone Master Cliff Hawkeswood www.PMofWA.com Telecommunication, Equipment & Repair Professional Stone Products, LLC Charles Grimmer www.pspwa.com Building Materials Scribbles and Giggles Learning Center Carrie Beirman Child Care & Preschools Smart Energy Today, Inc. Ryan Rutledge www.smartenergytoday.net Energy Management & Conservation Consultants So Powered Productions Erik Soper www.sopoweredproductions.com Web Development South Sound Physical & Hand Therapy - Downtown Olympia, East Olympia, West Olympia, Lacey Jenilee Jaber www.southsoundtherapy.com Physical Therapists Staples Ginny Keys www.staples.com Office Supplies Teck Real Estate Kevin Turner www.teckrealestate.com Property Management Watermeade Valley Home Inspection Tom Iovanne www.watermeadevalley.com Home Inspection

For more information on Chamber members, visit www.thurstonchamber.com and click “Member Directory.”

10 July/August 2014 Thurston County Chamber VOICE

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Thurston County Chamber VOICE  July/August 2014 11

Startup Playbook: Michael Kitson & Kitson

Boards

By Natasha Ashenhurst

W

hat is the role of small businesses and startups in driving the U.S. economy?

According to the U.S. Small Business Administration, they account for 63 percent of net new private sector jobs and 48.5 percent of private-sector employment. They are an economic powerhouse, in other words, and vital to growth in our region.

In this issue of The VOICE, we are launching a new series called “The Startup Playbook”. We’ll examine Thurston County startups — and the entrepreneurs behind them — in order to learn what’s working and what’s not, and search for a pattern to success.

To kick off the series, we talked to the founder and president of Kitson Boards, Michael Kitson, on the company’s twoyear anniversary.

Introducing Michael Kitson Kitson ran out of gas at the corner of Union and Plum while traveling from Canada on business. It was his

introduction to Olympia, and Kitson thought — at the time — it looked like a great place to live. He moved to Thurston County in 1993.

off a cliff. We had employees to support, so I decided I needed to find products we could get involved in that were experiencing market growth.”

Kitson’s business was in imports. He has travelled to China 13 times over his career. He was importing wine racks and selling them over the Internet in 2010. Business was thriving, but the fluctuations in cash flow were too dramatic.

Enter the stand-up paddleboard, or “SUP” to enthusiasts.

“The seasonal nature of income became like that seen in a brick and mortar store,” said Kitson. “We’d go into the Christmas season on a steep incline, which was good, but in January we’d fall

The Kitson Board Story If you looked out over the Puget Sound eight years ago, it is unlikely you would have seen someone maneuvering a paddleboard across the water. Today, they would be hard to miss.

“I started doing research about what products we could get involved in, and specifically, what markets were growing.

Photo by Steve Mason for Kitson Boards.

12 • July/August 2014 Thurston County Chamber VOICE

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Kitson Boards is the designer and manufacturer of high-performance carbon-fiber paddle boards (SUPs), surfboards, and wakesurf boards. They utilize the newest software and manufacturing technology to offer high quality, ultra durable, lightweight boards. All of their boards are produced in Olympia.

We kept coming across paddleboards,” he said.

Paddleboards have broad appeal because of a quick learning curve that transcends age and ability. The boards are stable, and can be used on most bodies of water.

Kitson hired Leisure Trends Group, a market research firm out of San Diego, to confirm his research.

“Paddleboards were the only thing growing in the retail business,” said Kitson.

The next step was to find a manufacturer for the product. He flew to China and bought some paddleboards manufactured there.

“I took a [circular] saw to one of them to find out what was inside and how they were put together. I was shocked,” said Kitson. “They were filled with [volatile organic compounds], which you shouldn’t be around.”

Kitson decided several things at that point. www.thurstonchamber.com

If he imported the boards, there would be nothing to distinguish his board on the market, and he would not get the margins that he needed. In addition, the design and construction of the boards was poor because the market never demanded anything better.

“I decided that I could make a stronger, lighter and better board using carbon fiber. My goal was to make the Ferrari of paddleboards ... with zero toxicity,” said Kitson. “I hired an engineer from Saint Martin’s University who loved to surf.

I shared my idea with him and he came back a few days later and said that it would work.”

At this point, Kitson had two essential ingredients for success in place: Favorable market research and demand for his unique product.

“The green light came on, but we had more research to do. Every step we had to re-engineer,” said Kitson. “After three years of [research and development] and proof of production, we moved ... from, ‘Well, this is a good idea,’ to, ‘Now we

need to make this work in a production environment.’”

Today, Kitson Boards is located on Marine Drive, along Olympia’s waterfront. The Kitson product line consists of nine models, priced from $1,750 to $3,170, and are available through certified dealers only.

Kitson admits that his boards are more expensive than a lot of his competitors’, but he is confident that a Kitson board will last a lifetime and provide an exceptional experience for touring or racing.

Each step of the manufacturing process is done in Olympia. Kitson remains the only paddleboard manufacturer in the United States, and 98 percent of the board’s materials are made in the U.S. Kitson currently employs 15 people, and will soon go to three shifts per day to satisfy manufacturing demand. The company might outgrow their current location soon.

Continued on page 15

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14 • July/August 2014 Thurston County Chamber VOICE

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Continued from page 13

The Michael Kitson Playbook Leadership

Focus on: Capital Input, R&D.

In the early days of a startup, it is essential to spend the time researching your idea and recognizing product advantage and potential. Today, my main focus is capital input and research and development. Early on, I recognized the importance of working with specialized vendors, such as the best engineers, accountants and consultants.

Product Development

Time spent on research pays off.

We spent one and a half years in [research and development], including marketing and product development, as well as one year in proof of concept.

You can’t bypass these steps.

Workforce Development

A vision of rebuilding manufacturing workforce.

We need to rebuild our manufacturing workforce. For two generations, young people have been discouraged from pursuing manufacturing work.

I’d like to see community colleges provide education in material and fabric science. We’ll provide the apprenticeship program.

The Role of the Chamber in Small Business Success The Chamber plays a vital role representing small business interests.

The [Thurston County Chamber of Commerce] plays a vital role because they represent small business interests to the big players, such as government. Before I was a small business owner, I didn’t fully understand the advocacy role of [the] Chamber.

Using Time and Energy

Raising capital, sales & manufacturing.

I spend 20 percent of my time finding equity partners, 30 percent in sales and 50 percent overseeing manufacturing.

Raising Capital

Go big in order to succeed.

I’ve found that banks will not lend to startups, and that SBA loans were insufficient. That is why I spend 20 percent of my time finding community equity partners. I’ve also learned that the cost of doing business is so high you have to go big in order to succeed. ●

"I’ve learned that the cost of doing business is so high you have to go big in order to succeed."

-Michael Kitson Natasha Ashenhurst is a writer for the VOICE Magazine and can be contacted at nashenhurst@thurstonchamber.com

www.thurstonchamber.com

Thurston County Chamber VOICE  July/August 2014 15

2014-2015 BOARD OF TRUSTEES

Ron Bruchet Chair GHB Insurance

Mariella Cummings Chair Elect Physicians of SW Washington

Jessica Coen Vice Chair Xerox Company

Neil Woody Treasurer McSwain & Company P.S.

Mike Marohn Past Chair 94.5 ROXY

David Schaffert President/CEO

George Barner Port of Olympia

Michael Cade Thurston EDC

Jean Carr SCJ Alliance

David Cullen David D. Cullen

Dick Cvitanich Olympia School District

Cheryl Fambles PAC Mountain

Jim Geist Capital Medical Center

Perry Hanchey Diamond Technology Innovations

Jim Leonard Group Health Cooperative

Drew Phillips FORMA Construction

Cheryl Selby Vivala

Kevin Stormans Stormans Inc.

Ann Sweeney Red Lion Hotel

Faith Trimble The Athena Group

Sandi Wilson Thurston First Bank

Thank you to the outgoing board members.

Reid Bates Express Employment Professionals

Casey Cochrane SCJ Alliance

16 July/August 2014 Thurston County Chamber VOICE

Jeff Davis Port of Olympia

George LeMasurier The Olympian

Jerald Shaw Anchor Bank

www.thurstonchamber.com

EXPECT THE BEST WHEN YOU’RE

EXPECTING For us, even the tiniest baby is a great big bundle of joy.

At Capital Medical Center, we believe that having a child is one of life’s true blessings. Last year, our experienced and caring labor and delivery team helped bring almost 700 babies into the world.

Our Women’s Services unit is designed for the well-being of both mother and baby, which includes private birthing suites, 24-hour anesthesia coverage and guidance from a lactation consultant as long as you need it. You’ll also soon see a number of improvements to the Women’s Services floor to ensure the most comfort for mom and baby.

To learn more or to schedule a personal tour, call 360-956-3587.

3900 Capital Mall Dr. SW, Olympia • 360-754-5858 • 888-677-9757 • www.capitalmedical.com

Capital Medical Center is partly owned by some of the physicians who serve our patients.

©2014 BCI

Destination Olympia 0DULQD )DFLOLWLHV

700+ moorage slips, two-lane launch ramp, restrooms showers & laundry, free wi-fi, ample parking & picnic areas.

%RDWZRUNV )DFLOLWLHV 77-ton Travelift, 3.6-acre yard, environmentally efficient water treatment, marine repair services.

The Thurston Chamber YPN: Where Young Professionals Connect.

Mark Your Calendar with Summer YPN Events!

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Thurston County Young Professionals at June 5 event.

re you a young professional interested in expanding your connections in Thurston County? If so, check out the Thurston Chamber’s Young Professionals Network (YPN).

The YPN will meet the first Thursday of every month (with the exception of July 2) at 5:30 p.m.

Visit www.thurstonchamber.com for location information. There is no cost to join.

Spread the word, open your contact list and bring a friend who may or may not be a Chamber Member. Our goal is to create a fantastic environment for our Young Professionals to meet their peers and grow their network. We will have a short, professional program during the mixer but the emphasis will be on networking. Bring your business cards and get ready to grow your professional contact list and meet some new friends. â—?

Applying for jobs and hiring employees can be difficult and time consuming. But, with Express Employment Professionals, finding the right job or filling the right position is easy.

Call, come in, or go online today to see what Express can do for you.

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FYQSFTTQSPT DPN

www.thurstonchamber.com

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Wednesday, July 2, 5:30 pm

Pint's Barn 114 E St SW, Tumwater

Thursday, August 7, 5:30 pm

NW Harley Davidson 8000 Freedom Ln NE, Lacey Catering by Elyse's Catering

SBA Loan Seminar Tuesday July 22, Noon - 1 p.m.

No Fee, Included with Membership The Small Business Administration is the largest source of long-term small business financing in the nation.

Private lenders make the loans and the SBA guarantees a percentage of the loan amount up to $3.75 million.

Seminar topics include: • SBA Loan Guarantee Program The July Seminar is • Eligibility and Credit brought to you by: Requirements • The Loan Process • What Lenders Look For • Financing Alternative • Business Plan or Loan Proposal Resources

Seminar held at the Thurston County Chamber of Commerce.

Call 360.357.3362 or visit www.thurstonchamber.com to register.

Thurston County Chamber VOICE ď Ź July/August 2014 ď Źď€ 19

Networking Events Morning Mixxer

July 1 - 7:30 a.m.

August 5 - 7:30 a.m.

300 Deschutes Way SW, Suite 210, Tumwater

2018 Caton Way SW - Olympia

Liberty Mutual Hosts July Mixxer

Jennie Patton, Attorney At Law

Join the Chamber for our July Morning Mixxer at Liberty Mutual in Tumwater. Stop by and enjoy a hot cup of coffee and an array of breakfast treats while you learn more about Liberty Mutual.

Join the Chamber at our August Morning Mixxer at the offices of Jennie Patton, Attorney at Law.

Since 1912, Liberty Mutual Insurance has provided broad, useful and competitively-priced insurance products and services to meet customers' ever-changing needs. ●

Morning Mixxer Promotional Sponsors

Network while enjoying coffee and breakfast treats.

Jennie Patton has been practicing personal injury and bankruptcy law in Olympia since 1995. ●

Morning Mixxer is the first Tuesday of each month, from 7:30-8:30 a.m.

Locations vary. Includes coffee and pastries. Admission is FREE.

Business After Hours

July 17 - 5:30 p.m.

303 Union Ave SE, Olympia

Visit www.thurstonchamber.com for location info.

After Hours at Complete Nutrition

A Summer Evening Event Network with neighbors from your own backyard and join Columbia Bank for a summer evening event at the Chamber's July Business After Hours.

You're invited to Business After Hours at Complete Nutrition on Thursday, August 21. The networking event & party is from 5:30 to 7:30 p.m. Enjoy: Wine and Beer, Appetizers and Drawings and giveaways. Don't forget, this event is free!

Enjoy delicious treats!

Participate in fun games for a chance to win fantastic prizes!

Have a seat on the famous blue couch! ●

Business After Hours Promotional Sponsors

August 21 - 5:30 p.m.

Complete Nutrition is committed to helping customers look better, feel better, and perform better every day. Complete Nutrition can help customers achieve nutrition goals by encouraging complete nutrition, the idea that living a healthy lifestyle requires a commitment in four areas: HYDRATION, SUPPLEMENTS, BALANCED DIET and EXERCISE. ●

Business After Hours is the third Thursday of each month, from 5:30-7:30 p.m. Locations vary. Admission is FREE.

20 July/August 2014 Thurston County Chamber VOICE

www.thurstonchamber.com

Office Supplies Next day delivery is available for over 40,000 items that we have in stock.

Promotional Products We offer a large selection of promotional gifts for your meetings, trade shows, product branding and events.

Office Furniture, Space Planning & Design Our Furniture Specialists draft, develop, space plan & design your furniture project to get

Quick and Simple Online Ordering www.thecreativeoffice.com

(360) 754-1732

(800) 900-1732

721 Legion Way SE, Olympia

www.thurstonchamber.com

Thurston County Chamber VOICE  July/August 2014 21

www.thurstonchamber.com

The Tumwater Brewery: A Vision Handcrafted

by Public and Private Partnerships

By Natasha Ashenhurst

I

t is an unusual circle of public and private partners – city administrator, economist, private property owner, dean of college relations, food scientist, and port director– joining forces with craft brewers, distillers, researchers, university extension directors and farmers. They are all having a conversation that includes topics such as sustainable agriculture, artisan brewing, craft distilling, and fermentation science.

Program. “WSU expressed a great deal of interest in education and research. They quickly signed on to be a partner. This lead to the Port of Olympia’s interest in the economic development part of the project, and the Olympia Tumwater Foundation’s interest in a museum,” said Doan.

Doan and the team working to explore development opportunities for the historic brew house, as well as the large building in front of the Schmidt House called the Cellars Building, first talked to people at the Thurston County Washington State University (WSU) Extension office who do research around grains and brewing. That led to learning more about the new Wine Science Center in Richland, Washington, a center of excellence for wine, and a model to emulate.

(CERB) to study public/private partnership opportunities which will refine viability for the site and programs.

The circle of partnerships is spiraling into other areas of investment. “We want to bring in incubation space for folks brewing in their garage who don’t have the capital to launch their own business. Same for micro distillers. Food science Their objective? Revitalize the old Tumwater Brewery into a researchers will bring in state of the art practices and product Center of Brewing and Distilling Excellence. varieties that smaller organizations can gain access to. Next, Convening the partnership is “The City of Tumwater’s council has made this the State Hops Commission became Tumwater’s City Administrator, their task number one,” said Doan. “This project interested in the project, and folks John Doan and Brewery will drive regional growth. It will bring activity interested in sustainable agriculture Redevelopment Project Manager, and reinvestment interest back to the brewery. like the Bread Lab at WSU Mount Michael Matthias.

But not only that, it will allow us to build on a Vernon,” he said. The WSU and SPSCC are already talking about how legacy that is already in place."

Doan explains the spark that to coordinate their schools’ offerings. ignited the project, “What really -John Doan brought the City to this point was These partners are also working to examining what makes this property unique. When you travel find revenue, such as the $200,000 Integrated Planning Grant around the country and tell people where you’re from, they from the State Department of Ecology to fund an environmental often say, ‘wasn’t there a brewery there?’ We know there is assessment and market feasibility study currently underway. tremendous brand equity sitting out there. We also know that In addition, the project was awarded a planning grant from the craft brewing is growing phenomenally,” he said.

Washington State Community Economic Revitalization Board

Next, they talked to folks at South Puget Sound Community college about workforce development opportunities related to brewing and distilling, which lead to the WSU Food Science

The feasibility study will take about three or four months according to Doan. Then, they’ll move forward with next steps to make the project a reality. We hope to see the first pieces of this complete in two to three years.

“People have been phenomenally supportive of this project. We know it is not going to be easy, and it will be expensive. We also know what we’ve heard over and over: the brewery was the center of Tumwater and people want to hear that roar of activity happening again.” 

Photo above, courtesy of the City of Tumwater. www.thurstonchamber.com

Thurston County Chamber VOICE  July/August 2014 23

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