TK Business Magazine - Spring 2018

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SPRING 2018

CONTENTS

FEATURES

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PG.

REBRANDING

A rebrand can be risky, but if done correctly, businesses can reinvent themselves.

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PG.

FARM TO TABLE

Local farmers and restaurants are working together to bring food straight from the farm to the table.

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PG.

BUSINESS HALL OF FAME

Junior Achievement of Kansas Business Hall of Fame recognizes its 2018 laureates.

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PG.

ALL IN THE FAMILY

Handing a business from one generation to the next presents unique challenges and rewards.

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PG.

THE GOOD, THE BAD, THE BUBBLE AND THE DOWNRIGHT CRAZY

Washburn University Professor Rob Weigand shares his economic outlook.

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PG.

HEART OF THE ENTREPRENEUR Photo by JD MELTON | 83 PIXELS

Keith and Vickie Lynch share the story of Soho Interiors and Studio Furniture.

FARM TO TABLE

COVER PHOTO BUSINESS HALL OF FAME LAUREATES Brent Boles Susan Garlinghouse Debra Clayton Randy Clayton Cover Photo Credit: Rachel Lock

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EXPERTS PG.

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BUSINESS SUCCESSION PLANNING

PG.

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TAX ACT IMPLICATIONS Brian Lang

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ORGANIZATIONAL CORE VALUES Dr. Thomas Underwood

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BOUNTIFUL BOUTIQUES

Browse through some of Topeka’s hidden shopping venues: boutiques.

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PG.

AGENTS OF CHANGE

Discover the story of the 85-year history of FHLBank Topeka.

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Timothy Shultz and Miranda Carmona

PG.

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SCENE ABOUT TOWN

94.5 Country Bridal Fair Vaerus Aviation Hangar Party Greater Topeka Chamber of Commerce's Annual Meeting

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LAST WORD

Last Word with Mayor Michelle De La Isla.

don’t stand alone.

It’s easy to go unheard when you’re just a single voice.

You deserve to be listened to in the statehouse when it’s your business, your employees’ livelihoods and all of your dreams at stake.

Partner with the Kansas Chamber.

Strengthen your voice.

Don’t stand alone. join the kansas chamber. let us fight alongside you.

www.kansaschamber.org - president@kansaschamber.org - 785-357-6321 spring 2018

TK Business Magazine

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FROM THE PUBLISHER

Tara Dimick Tara@TKMagazine.com

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ACH DAY on the way to drop off my 4-year-old daughter, Harmony, at school, we talk about everything that will fill her day to make it the best day ever. And rather than saying goodbye, we simply proclaim, “Best Day Ever.”

The fun began when Harmony was only 2 and liked to tell us that today was the “Best Day Ever.” It was her, not us—but the words were powerful.

As I was driving away from our “Best Day Ever” proclamation a few months ago, I realized that this ritual we have is purely for Harmony to have the best day ever. I enjoyed the joy of

the conversation, but I had never even thought to incorporate the “Best Day Ever” mantra into my own day.

So, I gave it a try and started 2018 by constantly referring to it as being the “Best Year Ever” and each day as the “Best Day Ever.” By no means do I get through every day and feel like it has been the best day ever. But I start each day like it will be, and share in the proclamation with Harmony, not only for her to have the “Best Day Ever,” but for myself as well. It fills my heart with hope and happiness each day.

This seems so simple, yet it has made a profound difference in my life, and I wanted to share it with you. I hope you have the “Best Day Ever.”

SUNDAYS 11:30 AM - 12:00 PM

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@TK Business

WIBW 580 AM

Hosted by Tara Dimick, Owner & Publisher of TK Business Magazine

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CHECK OUT

magazine.com Check out TKMagazine.com to get expert business advice and up-to-date information on business in Topeka. Send your news releases to braden@tkmagazine.com.

MANAGING PARTNER & SALES DIRECTOR Braden Dimick braden@tkmagazine.com 785.438.7773

TECHNOLOGY:

It's time to go on the offense with your IT security.

COVER PHOTOGRAPHER Rachel Lock

Dynamic Computer Solutions of Topeka, Inc. THE WASHBURN UNIVERSITY ALUMNI ASSOCIATION AND FOUNDATION announces a $1.5 million matching gift challenge to help fund the new Indoor Practice Facility at Washburn University.

TOPEKA METRO launches a 1-year pilot transportation program for workers in the south Topeka Kansas Fire Commerce Park.

PERSONAL DEVELOPMENT:

Who is winning the race?

WORKING CAPITAL is about local and regional businesses within the KTWU viewing area. WORKING CAPITAL showcases entrepreneurship and provides an atmosphere for sharing business concepts and practical business experiences.

Tune in to KTWU-HD, Digital Channel 11.1.

INTERNATIONAL ASSOCIATION OF BUSINESS COMMUNICATIONS (IABC) will offer a “Tech Talk: Trends, Tools and Storytelling Tips to Boost Your Brand” seminar on Wednesday, April 4th. To register, visit iabctopeka.org.

11:30 AM - 12:00 PM COX COMMUNICATIONS WIBW 580 AM recognized as Kansas Hosted by Tara Dimick, Chamber's 2018 Owner & Publisher of TK Business Magazine Ad Astra Award recipient.

11:30 AM - 12:00 PM

SUNDAYS

WIBW 580 AM

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CONTRIBUTING EXPERTS Miranda Carmona Brian Lang Timothy Schultz Thomas Underwood, Ph.D. Robert Weigand, Ph.D.

PUBLISHING COMPANY E2 Communications 7512 SW Falcon St. Topeka, KS 66610 785.438.7773

FOUNDER ǀ Kevin Doel

tkmagazine.com 2018 TK Business Magazine is published by E2 Communications, Inc. Reproduction or use of this publication in any manner without written permission of the publisher is prohibited.

Every effort was made to ensure accuracy of the information in this publication as of press time. The publisher assumes no responsibility of any part for the content of any advertisement in this publication, including any errors and omissions therein. E2 Communications, Inc. makes no endorsement, representation or warranty regarding any goods or services advertised or listed in this publication.

Listings and advertisements are provided by the subject company. E2 Communications, Inc. shall not be responsible or liable for any inaccuracy, omission or infringement of any third party's right therein, or for personal injury or any other damage or injury whatsoever. By placing an order for Hosted by Tara Dimick, an advertisement, the advertiser agrees to indemnify the Publisher of TK Business Magazine publisher against any claims relating to the advertisement.

SUNDAYS Owner &

CONTRIBUTING PHOTOGRAPHERS Nathan Ham Keith Horinek Rachel Lock JD Melton Sara Thummel David Vincent CONTRIBUTING WRITERS Kim Gronniger Lisa Loewen Karen Ridder Jamie Slack Adam Vlach

Doug Sterbenz Present to Win Leaders

HERITAGE BANK'S JAMIE INGLETT selected for KBA's Bank Leaders of Kansas program.

EDITOR-IN-CHIEF Lisa Loewen CREATIVE DIRECTOR & DESIGNER Janet Faust

BUSINESS GROWTH

BUSINESS NEWS

PUBLISHER Tara Dimick

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MARKETING: REBRANDING

R E BRANDING

By ADAM VLACH

Greatness is not a status to be achieved or a destination, but rather a never-ending process of change and evolution. In Topeka, this concept of evolving to become better is alive and well.

Don’t think a motorsports park, a human resources company, and a photography business have anything in common?

Think again.

All of these companies share a fundamental understanding of this search for greatness and the importance of change. All three—just within the past few months—underwent one of the most ambitious forms of change a business can go through: rebranding.

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HEN IT COMES to rebranding a company or a business, especially one that’s already well-established and reputable in the local community, the first question that comes to mind is “Why?” Why would business owners intentionally subject themselves and their organizations to such drastic change that inevitably comes with great risks, financial or otherwise?

While rebranding is a timeconsuming and often expensive process, the need to do so can sometimes be the result of incredible success or an explosive growth in business—good problems to have, by most accounts.

Studio Bloom by Shelley has a large footprint in the Topeka area that many people may be familiar with, although perhaps by its former name, Shelley

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Jensen Photography. Studio Bloom by Shelley officially embraced its new brand this year, and the decision to do so was indeed due to an overwhelming growth in business.

“Over the past nine years, my business has grown so much, and I’m very blessed to have had it grow the way it did,” said Shelley Jensen, owner and sole proprietor of Studio Bloom by Shelley. “The problem with it growing so fast, though, was that I was trying to do everything.”

As a one-woman show, Jensen is responsible for every aspect of the business, from client acquisition, to the photography, to the editing. In recent years, Jensen was shooting photos for about every type of occasion— weddings, engagements, corporate events, newborns, senior pictures, family photos…you name it.

FOCUS A rebranding was in order, and with it, a new logo, website, and an update in the services the business would offer.

“I re-evaluated the photography that I was doing, and I decided to narrow it down to four specific photography areas: families, high school seniors, engagements, and couples photography,” Jensen said. “That’s the reason I rebranded, to re-evaluate my strengths and weaknesses and come up with four different areas I could focus on.”

And as entrepreneurs and business owners know, that concept—focus—is many times the difference between a company making strides toward excellence and collapsing beneath its own weight.

CLARIFY In addition to helping a company focus on its strengths, a rebranding can also be an opportunity to clarify a company’s message or vision. Such was the case with HR Partners, a company of human resources professionals located in central Topeka. In late 2017, HR Partners, led by its president and owner, Kristina Dietrick, changed its corporate identity with a new logo and website, new brand colors, and a breakaway from its previous name, Creative Business Solutions.

“We made the decision to rebrand because we found that after growing in different markets and trying different things, our name didn’t really describe what we do,” Dietrick said. “As HR Partners, we partner with clients on their HR needs. Period. That’s what we do.”

PHOTO SUBMITTED

“But it became too much for one person,” Jensen said, “and I was losing time with my own family, and I couldn’t give my clients the attention they needed.”

“I re-evaluated the photography that I was doing and decided to narrow it to four specific photography areas. That's the reason I rebranded.”

—Shelley Jensen Owner Studio Bloom by Shelley

spring 2018

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MARKETING: REBRANDING

Unlike Studio Bloom by Shelley, HR Partners kept its same business model through its rebranding, which caters to companies looking to outsource HR services such as consultation, compliance, benefits administration, “Changing from Creative Business Solutions training, and to HR Partners—now you know what we coaching, just to do. We wanted our name to represent our name a few. mission.”

“Changing from —Kristina Dietrick Creative Business President and Owner Solutions to HR HR Partners Partners—now you know what we do,” Dietrick said. “We wanted our name to represent our mission.”

ENHANCE Focusing and clarifying are two of the greatest benefits that stem from a rebranding, but can such an arduous process benefit an organization that is happy with where it’s at but still wants to improve?

Absolutely, says Jake Schmidtlein, general manager of Heartland Motorsports Park.

Coinciding with its 30-year anniversary, Heartland Park Topeka, the iconic motorsports park just south of the capital city, rebranded at the first of the year as Heartland Motorsports Park.

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“We want to set forth a new vision, a new direction, for the facility as a whole,” Schmidtlein said. “2018 marks our 30th anniversary, and we thought that rebranding would be a good way to put out there that we’re moving forward. We want bigger and better things.”

As with Studio Bloom by Shelley and HR Partners, this rebranding boasts a new logo as well, one that Schmidtlein describes as a bit “edgier” to match the organization’s vision of forward progress.

“We respect the heritage and the history behind the track—that’s why we didn’t do a radical rebranding—but we wanted to elaborate a little bit more on who we are,” Schmidtlein said.

The rebranding also has helped when Schmidtlein and his team are talking with national racing organizations, including NASCAR. Previously, without the term “motorsports” in the name, organizations from outside the Kansas area often didn’t know what type of park Heartland Park actually was.

“I’ve gone to trade shows, and people would ask me where I work,” Schmidtlein recalled. “When I would say ‘Heartland Park,’ they would say, ‘Oh, really? What’s that? Is that an amusement park? A water park?’”

Now, there is much more clarity.

Honoring the past while looking forward and striving to add to an already-storied brand, however, is the idea behind the third major reason for a rebrand, and the key reason for Heartland Motorsports Park’s evolution: the opportunity to enhance.

“We’re really just building on the events of the past. We’ll continue to have the NHRA Heartland Nationals. From a drag racing perspective, we’ll have the Lucas Oil Double Divisional race, and we’ll have the ET Finals.

“New, in 2018, though, is the first no-prep national event. This will be the largest, truest, no-prep motorsports race in the U.S.” That event, coming in September, will feature backward racing down the drag strip, with the prize purse sitting in the six-figure range.

Motocross events will also start making an appearance, with motorcycle and go-kart races.

PHOTO SUBMITTED

EVOLVE For all three of these businesses, the rebranding process has proven fruitful and worthwhile.

But that’s not to say the decision to go through with the process was an easy one. With rebranding comes risk, and not a small one at that.

For HR Partners and Studio Bloom by Shelley—both businesses that have been prevalent in the Topeka community for about a decade—one of the risks of rebranding was simply losing brand recognition with a name change. In each case, however, strategic decisions were made to mitigate this risk.

“When we decided we wanted to rebrand, we looked internally first, to our clients and our team, and asked them what they thought, and we received positive feedback,” Dietrick said of HR Partners. “For any company that’s thinking about rebranding, you’ve always got to keep your current client base in mind.”

Before moving forward with anything, Dietrick sought the opinions of her clients and especially her internal team. Their overwhelming approval, she said, was key in giving her the

confidence to move forward with what can be a very disruptive process.

In the case of Studio Bloom by Shelley, Jensen elected to keep her first name in the title of her business.

She said having a concrete reason behind rebranding helps keep a business “2018 marks our 30th anniversary, and we thought that rebranding would be a good way to put out there that we’re moving forward.

We want bigger and better things.”

—Jake Schmidtlein General Manager Heartland Motorsports Park owner focused on what they are trying to achieve and will reduce the risk of getting distracted or questioning your decisions.

For Schmidtlein and Heartland Motorsports Park, a 30-year history had to be taken into consideration before moving forward with a rebrand.

“Racers, and racing fans, like to go to tracks that have history and heritage to it, and so the concern when rebranding is that we didn’t want to lose all of the history that’s been established over the past 30 years,” Schmidtlein said.

The desire to keep the rich history of the track alive and palpable was what led to the decision to keep “Heartland” in the name, and ultimately to lean toward what Schmidtlein refers to as a “soft” rebrand.

IMPLEMENT What does it take to pull the trigger on a decision as big as a rebranding?

“You have to believe strongly in your vision for your business, and if you truly believe, it takes it to another level and gives it a competitive advantage,” Schmidtlein said.

Without a doubt, there’s a multitude of issues to consider before rebranding an established company, from the cost, to the amount of time it will take to execute, to the risk the business incurs.

One decision that any business about to rebrand must make is whether to hire outside help.

Jensen, who was looking to make her business more lean and focus on her strengths; Dietrick, who wanted to clarify her brand and align her company’s name with its mission; and Schmidtlein, who was hoping to enhance his brand by innovating while continuing to honor the past, were all looking for something a little different from a rebranding. Still, for each of them, it made sense to enlist outside help, at least to some extent, particularly in terms of consultation and new logo and website design.

But at the end of the day, the only way for a business to survive and strive for greatness in constantly changing times is to change with them.

“Nobody likes changes—everybody knows that,” Schmidtlein said. “But if you believe in what you’re doing, it will help you grow to where you want to be down the road.”

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Farm to Table

By KIM GRONNIGER Photos by JD MELTON

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Food nourishes our bodies and comforts our souls. It fortifies us to face the day and serves as the focal point for social gatherings.

But for many years, our daily sustenance has been something not to be savored but instead to be served fast, whether it’s a meal passed to

us in a drive-through sack or a box mix entrée prepared on a stove top. The expediency to which we’ve become accustomed has had a high cost, including diminished curiosity about where our food comes from and a lack of confidence in cooking from scratch.

Photo by JD MELTON | 83 PIXELS

“We eat with our eyes first, so presentation is important to appetite.”

—Greg Fox Proprietor RowHouse Restaurant

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A

flourishing nationwide farm-to-table movement is countering the culture of convenience. Bustling farmers’ markets have moved beyond sweet corn and tomato stands to become expansive Saturday morning entertainment destinations. Fine dining establishments are creating culinary alchemy with intoxicating combinations of herbs, fruits and vegetables.

Here at home two entrepreneurs and two farmers share how they are helping people in northeast Kansas elevate their appreciation of their food’s origins and their enjoyment of the meals they eat.

Photo by JD MELTON | 83 PIXELS

Greg Fox enjoys team camaraderie as much as his patrons enjoy the dining experience.

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RowHouse Restaurant

At the RowHouse Restaurant, patrons might find proprietor Greg Fox snipping basil from the backyard garden for a seasonal signature cocktail or preparing an entrée embellished with a just-right ratio of ingredients both predictable and wholly unexpected.

Fresh herbs are paramount in Fox’s kitchen, “the best way to flavor anything,” he said. “The most exciting time for us is when we get to snip herbs.”

Since opening his restaurant 11 years ago, Fox has been a proponent of locally sourced food. He often attends the Capitol Farmers’ Market on Wednesdays, sometimes picking up Rees Fruit Farm apple cinnamon doughnuts that he converts into toasted panko crumbs, bread pudding and croutons sprinkled on salads.

Growing up with a backyard garden, Fox learned early the satisfaction of “eating tomatoes right off the stem and salads with all their crunchy, zippy, tangy flavors.”

His mom, a former lunch lady who made chili, cinnamon rolls and other cafeteria staples at Assumption Grade School, piqued Fox’s interest in the culinary arts.

“She was a great cook and made everything from scratch, and that’s what we do here at the RowHouse,” he said.

Each course Fox serves, from a two-bite savory starter to a trio of bite-sized sweets to end the meal, is artfully arranged with careful attention paid to color and composition as well as taste.

“We eat with our eyes first, so presentation is important to appetite,” said Fox. “It’s easy to come up with a plate that’s taupe, taupe and taupe, which is why I love adding the beauty and taste of chopped carrots, beets and turnips.”

With an evolving menu of American and European favorites and vegetarian variations like cauliflower meatloaf and mushroom meatballs, the RowHouse has cultivated a clientele comprising regulars as well as curious diners seeking a culinary experience not offered by chain restaurants.

“We used to have to do a little more coaching with some customers who were reluctant to get out of their comfort zone, but now they keep coming back because they know we’ll take care of them,” Fox said.

The RowHouse also caters to tourists looking for unusual experiences in the capital city and offers an assortment of Kansas craft beers.

“We always use local merchants when we can because buying from those homegrown businesses helps stimulate our economy,” said Fox. The RowHouse Restaurant, 515 Van Buren, serves lunch Monday through Friday and dinner Wednesday through Saturday by reservation.

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“When you’re raised on a farm, you appreciate where food comes from.”

—Adam VanDonge Chef/Owner The White Linen

The White Linen

Photo by JD MELTON | 83 PIXELS

Photo by JD MELTON | 83 PIXELS

Adam VanDonge loves to listen to Mozart, Sinatra and Beethoven as he puts his culinary school and country club training to work preparing entrees as pleasing to the eyes as they are to the palette.

The chef and owner of The White Linen, Topeka’s newest fine dining establishment, grew up on a farm in Soldier where he did chores and tended the family’s vegetable garden.

“My grandmother canned apples, peaches, pears and other things,” he said. “She made huge meals from scratch. At a young age, the importance of fresh food as an expression of love and nourishment was embedded on my heart and soul.”

After working in restaurants in other communities, VanDonge returned to Holton and opened an upscale sandwich shop featuring five unconventional but equally scrumptious daily options—chicken and waffles, ham with sweet potato puree and marshmallow cream—along with five soups and salads. In the back room, he periodically offered sold-out seven-course dinners with unusual offerings like bone marrow and mussels through his Drum Room enterprise.

A fan of farmers’ markets “and anything fresh,” VanDonge has scallops, halibut and other fish flown in for The White Linen’s rotating monthly menu. He also revels in experimenting and discovering new things he can incorporate into his

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Photo by JD MELTON | 83 PIXELS

The White Linen dining experience is not only about the ambience of an exquisite meal, but also about exposing diners to selections and spices they might not have encountered before.

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menu like watermelon radishes with bright pink centers.

VanDonge has a no-waste policy so radishes, carrot peels, leek tops and the leaves of brussels sprouts are dehydrated and made into seasoning powders.

Having realized his lifelong dream to open his own gourmet restaurant, VanDonge’s focus on fresh food prepared with unexpected flourishes is just one facet of his role. He wants to not only elevate the ambience of sharing an exquisite meal with family and friends in the unique setting of the historic Columbian building at 112 S. Sixth Ave. but also to expose diners to selections and spices they might not have encountered before.

“In December, we offered an 8 ounce filet as an entrée, and I had black truffles from Italy flown in from my supplier in New York,” he said. “I shaved the truffles on the steaks right at the

TK Business Magazine

table. Most of the people dining that night had never tasted truffles, so that prompted a conversation.”

As a child, VanDonge and his brother often shot rabbits that their father would fry in a skillet on the stove.

VanDonge’s grown-up take is to braise the childhood favorite “with garlic, white wine and onions so that the meat falls off the bone.”

“When you’re raised on a farm, you appreciate where food comes from,” he said. “You understand when you’re picking strawberries by hand how delicate they are and appreciate how hard they are to grow. People have become accustomed to eating processed food instead of fresh food, and my goal is to show them what they’ve been missing.”

The White Linen is open Wednesday through Saturday from 5 to 9 p.m.

Reservations are required.

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Dallas Picolet, owner of Oatie Beef, enjoys educating curious customers about why his beef tastes better as much as he likes tending to his herd.

The inspiration for Oatie Beef struck Dallas Picolet as he watched a television commercial touting the health benefits of a humble bowl of oatmeal. He wondered whether the same food that lowers cholesterol and promotes health in humans could be used as a diet staple for cattle.

He conducted research, finding only a snippet of advice on the subject in an old Kansas State University textbook warning that feeding oats to breeding heifers could make them too fat.

“I worked with a food processor I knew to educate myself on what cattle would need for protein and then came up with my own ratio of oatmeal and alfalfa,” said Picolet, a third-generation farmer.

He fattened up calves with his formula, and then had beef samples tested in a Kansas State University lab in 2007 and again in 2013. The meat consistently had higher protein and Vitamin B12 levels and lower cholesterol and sodium than grass-fed and grain-fed beef, ground turkey, ground chicken, pork and bison.

Most surprising? The minute steaks had less fat than a skinless chicken thigh.

Since his 2007 epiphany, Picolet and his two daughters and sons-in-law have changed their family business model to sell meat to customers in grocery stores, online, at Herman’s Meat & Smokehouse and at farmers’ markets in Topeka, Olathe, Manhattan, Lenexa and Geary County Hospital. They also deliver products to Bon Appetit Management Co., the Payless ShoeSource café, the Stowers Institute for Medical Research and the Kauffman Center.

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Photo by JD MELTON | 83 PIXELS

Oatie Beef

Picolet enjoys bantering with fellow vendors and educating curious customers about Oatie Beef as much as he likes tending his herd.

“I like to introduce myself to customers and talk about why I think our beef tastes better,” he said.

“The next time I see them coming toward me at a farmers’ market there are a few seconds when I wonder whether they liked it, but usually they tell me that it was the best steak or roast they’ve ever eaten.”

Picolet and his family’s commitment to quality, consistency and a price point parallel with top-

TK Business Magazine

line offerings at grocery stores has enabled Oatie Beef to establish its niche in the marketplace.

Proud of the health benefits of his lean beef, Picolet continues to research trends and belongs to a Facebook group of people whose diets consist exclusively of meat and water.

“When people buy meat in a grocery store, they don’t know what that cow’s been fed,” he said, “but with our beef, they know.”

Oatie Beef ships steaks, roasts, jerky, snack sticks, beef bacon and more nationwide through oatiebeef.com.

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Rex Rees, third-generation owner of Rees Fruit Farm, has been able to retain a niche as a produce purveyor because many people like to buy local.

Rees Fruit Farm has been providing fruits and vegetables to people in northeast Kansas since 1901 and continues to evolve as trends shift.

In the early decades of the farm’s operation, Rex Rees, third-generation owner, said customers canned produce so they would have access to seasonal favorites throughout the year. In the 1960s and 1970s, preserving and packaging techniques and transportation methods improved so much that just about any item needed to satisfy a craving could easily be purchased in a grocery store in or out of season.

Yet Rees Fruit Farm has still retained its niche as a produce purveyor because many people like to buy local.

“Other countries don’t have the same restrictions and regulations to comply with that we do in the United States,” he said. “Overall, it’s generally safer to buy locally. The only drawback to that is that people need to realize that not all fruits and vegetables are available year round.”

For example, the season for sweet corn is about three weeks and for tomatoes about six weeks, Rees said.

“In Kansas, we’re limited by our climate,” he said. “It would be great to have a longer growing season without extreme temperatures, but that’s the way it is.”

Best known for its orchards, Rees Fruit Farm sells cider, apple butter and apple cinnamon doughnuts made fresh daily. In the summer, individuals and families converge on the fields to pick

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Photo by JD MELTON | 83 PIXELS

Rees Fruit Farm

their own strawberries, blackberries and tart cherries.

The increasing popularity of farmers’ markets has expanded Rees Fruit Farm’s footprint with Wednesday and Saturday participation at the Capitol and the Kansas Judicial Center, respectively, April through October, and at other markets too.

“Going to farmers’ markets is trendy whether people are there to buy a week’s worth of vegetables or just to browse or buy one thing,” said Rees. “We see more vendors there every year.”

Rees said 15 years ago farmers’ markets were viewed primarily as an

opportunity for farmers to offload surplus produce, but now the shift is to sell “the best stuff ” there.

“The farmers’ markets have become a big part of our business,” he said.

Undaunted by long hours, hard work and the weather uncertainty that farming entails, Rees said he loves growing things and looking for new ways to market the results of his labor.

“The most satisfying thing about this business is that we’ve developed a lot of loyal customers over the years and continue to pick up new ones,” he said.

TK

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JUNIOR ACHIEVEMENT OF KANSAS

BRENT BOLES  SUSAN GARLINGHOUSE  DEBRA AND RANDY CLAYTON  PHILIP MORSE

By LISA LOEWEN

The Junior Achievement of Kansas Topeka Business Hall of Fame recognizes business professionals who have exhibited unparalleled leadership qualities and worked to make the community a better place to live and work. The 2018 laureates include five individuals who have not only created successful businesses, but who have also been recognized for their contributions to Topeka.

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Brent

BRENT BOLES | Competitive • Optimistic • Principled

Brent Boles has held a lot of titles throughout his career—president, owner, entrepreneur, investor—just to name a few. However, the title that suits Brent the best and has been evident through every endeavor, is that of mentor.

B

orn and raised in Topeka, Brent Boles always considered it home. Even though he resided in California for several years right out of school, when it was time to raise a family, he didn’t have to think twice about moving back home.

“Sometimes leaving Topeka is the best thing for people to really appreciate how great this city is,” Brent said.

Your Security is Our Highest Priority

Taking a job in the sales department of Schendel Pest Services, Brent soon found himself on a trajectory to entrepreneurship. He bought out one of the owners and spent the next 12 years growing the business, opening 10 offices in five states.

GROWTH While growth is good, sometimes it becomes an issue of diminishing returns. Brent recognized that as a

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company with 150 employees, Schendel Pest Services was no longer a small business. This meant complex regulatory compliance and skyrocketing employee benefit costs. It also meant he spent more time dealing with legal issues than working with customers and mentoring employees.

“The whole reason I got into the business was to work with customers,” Brent said. “I lost my passion when I could no longer do that.”

So when ServiceMaster offered to buy the company, Brent accepted the offer. However, that wasn’t the end of his entrepreneurial spirit. Having become involved with Schendel Lawn and Landscape two years earlier, Brent once again found his passion for building a company and working with customers.

Under his mentorship, Schendel Lawn and Landscape has quadrupled in size and has expanded to Lawrence and —Brent Boles Manhattan. While that growth is gratifying, Boles says his true reward lies in being able to provide an excellent customer experience for his clients.

“Take a lesson from people participating in Top Tank. They believe in this city and want to create growth. This fire.

This passion. It is being driven by millennials. We just need to help them make it happen.”

MOTIVATION During this business transition, his level of mentorship has also changed. No longer focused on simply securing his own future, Brent now searches for ways to create opportunities for those around him. His business pursuits include investments in everything from wineries and restaurants to commercial real estate, all based on a desire to build a better community.

But that desire goes beyond his personal investment in Topeka. For the past four years, Brent has spent equal time in his businesses and in the community and has become a driving force for change, especially with Downtown Topeka.

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“Being part of the downtown transformation is the right thing for businesses in Topeka,” Brent said. “It is at a critical stage right now, and we need to keep the momentum going.”

One of the things helping to drive that momentum is Top Tank, a competition designed to foster that entrepreneurial spirit, which recently offered one lucky winner $100,000 to establish a new business downtown.

Brent is one of the six sponsors that put up the money to bring a new business to the area.

“Take a lesson from people participating in Top Tank,” Brent said.

“They believe in this city and want to create growth. This fire. This passion. It is being driven by millennials. We just need to help them make it happen.”

COMMUNITY In addition to the various business endeavors and entrepreneurial projects Brent is involved with, he served as Chairman of the Greater Topeka Chamber of Commerce, where his focus was to support young professionals and give the small business community a voice.

“I had just sold my business and needed something to do,” Brent said.

“I got involved in the Chamber and GO Topeka and began to see all of the work being done by so many in the community. It opened my eyes to the need for more of us to become involved.”

So rather than slowing down and reaping the rewards of his hard work, Brent plans to roll up his sleeves and keep pushing for progress.

“I have no excuse for not doing my part,” Brent said. “I owe it to my city.”

That doesn’t mean the recovering triathlete (he competed for 20 years) won’t take some time to cook and drink wine, two of his favorite hobbies.

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Listen.

Design.

Inspire.

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Photo by NATHAN HAM PHOTOGRAPHY

Susan

SUSAN GARLINGHOUSE | Generous • Sensitive • Lifelong Learner

When Susan Garlinghouse and her husband, Kent, moved to Topeka almost 50 years ago, the last thing on their minds was creating a private school in Topeka.

E

ight months pregnant with their fourth child, Susan had enough on her plate just trying to get settled in a new city.

That all changed a few years later when their oldest child was in eighth grade.

Her math class had finished its regular book in February, and because the teacher didn’t know what to do with them for the rest of the school year, they did pointless busy work.

“Kent came home and I was livid,” Susan said. “When he asked what was wrong, I told him ‘Kim’s in middle school. Do you know what happened in middle school today? Nothing!’”

PASSION That was a turning point for Susan.

Her personal passion for learning drove her to seek something better for her kids.

She began to look for alternatives.

With a strong foundation in independent schools, she knew

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“I find meaning in my life by doing something that has long term benefits for everyone around me.”

what she wanted from a school—an environment that would foster continual learning and push her kids to become problem solvers.

“There is always more learning,” Susan said. “Unless kids are continually pushed, their brains atrophy.”

Not finding what she was looking for, Susan and Kent decided to open their own school in Topeka. It took a few years of work and collaboration, but Topeka Collegiate opened in the fall of 1982 with 43 students in first through eighth grade—their son was in the fifth grade that year and their youngest attended all eight grades at Topeka Collegiate.

Even though enrollment was small, the school still had a teacher for every grade. Now, 35 years later, Topeka Collegiate serves between 150 and 200 students and includes a preschool.

LEARN Susan says the fundamental philosophy behind the school is simple. It seeks to challenge —Susan Garlinghouse students at every level and foster a habit of lifelong learning. Even though it is a private school, Topeka Collegiate was never intended to be exclusively for the wealthy.

“We believe every child should have the opportunity to receive the best education,” Susan said. “More than 40 percent of the kids at Collegiate are on financial assistance to help them afford the cost.”

She also says parental involvement is higher because when tuition is coming directly from their pockets, parents expect more from the school and track their children’s progress more closely.

Susan believes that education is only as strong as the weakest link. When quality education is provided to all students, it betters the opportunity for everyone.

“If we don’t take care of the other children in our schools and our

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community,” Susan said, “then our own children won’t be as successful.”

She likens it to a New York Times article she read 25 years ago that detailed the drive-by shooting of a local high school student. When the reporter interviewed the father of the boy that was killed, he tearfully said, “I was so worried about my own son, I forgot to care about the other children.”

That statement had a profound effect on Susan. She has dedicated her life to caring about the “other” children.

DISCOVERY Susan's desire to make a positive impact through education once again came to the forefront with her involvement in making the Kansas Children’s Discovery Center a reality.

“Topeka was one of the few capital cities across the country that did not have some type of children’s museum,” Susan said.

Intrigued by the opportunity to bring that type of educational experience to our capital city, Susan found herself brainstorming ideas with other likeminded individuals. The 15-member founding board spent close to five years laying the groundwork for The Kansas Children’s Discovery Center. In 2008, even during one of the worst economic times for people and businesses, the Topeka community saw the value in offering this type of educational experience and opened their hearts and their wallets.

“People in Topeka are really forward thinking,” Susan said. “It was amazing to see the outpouring of support for this endeavor.”

Once again, Susan’s passion for education played an instrumental role in bettering the community.

“I find meaning in my life by doing something that has long term benefits for everyone around me,” Susan said. “I simply used my creativity and vision to find opportunities to advance the most people in the best manner.”

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Debra&Randy

DEBRA CLAYTON | Committed • Involved • Compassionate RANDY CLAYTON | Competitive • Involved • Positive

Remember the old adage that opposites attract? In the case of Randy and Debra Clayton, it seems to ring true. While they are both Certified Financial Planners, their personalities are vastly different.

R

andy is a selfproclaimed optimist who finds the positive in everything. Debra is more pragmatic and fears things won’t work out unless she spends hours getting everything in place. Randy pushes Debra to move forward, and Debra keeps Randy from falling off the cliff.

Debra, who grew up in Eerie, Kansas, and earned an English degree from Pittsburgh State University, wanted to be a teacher. She taught seventh grade English and ninth grade journalism for seven years. However, in the late ‘70s, Debra decided she needed a career change. Having always been fascinated with finance and investing, she took business classes from Washburn University and attained her CFP designation.

Randy had no idea what he wanted to do.

“I took a really long time getting my degree,” he joked. “I ended up going into the insurance business when I was 21 and still didn’t have my degree.”

He wanted to find a career where people came to him for services rather than him having to knock on doors.

He was also intrigued by financial planning and soon became one of the first 100 CFPs in the country.

Debra preferred using her CFP in investing, while Randy preferred using his CFP in financial planning.

So, when they decided to open a financial planning firm together, they based their company on a white paper that modeled a business with two separate arms: investing and financial planning.

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PARTNERSHIP Clayton Wealth Partners opened its doors in 1984 with three employees—Randy, Debra and an administrative assistant. That business partnership evolved into a life partnership as well, when Randy and Debra married soon after.

The company experienced significant growth, due in part to a wider demand for financial planning services, but also because of the quality employees they were able to attract. All of the firm’s professional level employees have advanced degrees and all of the planners have CFPs. In addition, the Claytons adopted a fee-only payment system, which helped them retain valuable personnel.

For Randy and Debra, their business is like their family. They even equate decision making to parenting. They know they have to maintain a unified front even when they might disagree. And they have learned not to push each other’s buttons.

“You learn to never argue in front of them [employees],” Randy said. “Children should never see their ‘parents’ fight.”

—Debra Clayton Both Debra and Randy recognize the individual roles they need to play within the organization. Because the company operates under two distinct arms, they each have their areas of expertise and authority, coming together for board meetings and executive decisions.

“I’m a much better bad cop,” Debra said.

“Randy is a lousy bad cop.”

“It is vital that this company remains in Topeka. You feel like you built something and you want to leave it better than you found it.”

ADVOCATE Debra has always been an advocate for Downtown Topeka. Even though their firm has been located downtown for 20 years, when they bought and renovated their new offices at 716 S. Kansas Ave., people kept saying ‘welcome to downtown.’

The decision to purchase the building on Kansas Avenue came as a result of a lunchtime stroll down the avenue on a lovely sunny day. Debra, who had been involved

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with Downtown Topeka, Inc. for many years and saw the potential just waiting to be unleashed, took one look at the old building and fell in love.

“I told Randy, ‘it would be so cool to be right in the middle of downtown,’” Debra said. “I guess I talked him into it.”

They didn't make the move, however, until they asked their customers where they preferred the firm to be located. The overwhelming response—downtown.

After a year of extensive renovations, the firm moved into its new offices. Since that time, the Claytons have also purchased the adjacent building at 718 S. Kansas Ave. and 720 S. Kansas Ave., which burned down in 2016. They are renovating the space into loft apartments and business space.

“People are passionate about downtown,” Debra said. “They want to work here and live here. We want to be part of that.”

They also want to be part of Washburn, and the symphony, and the arts, and numerous boards, and Angel Flights (Randy is a pilot). Suffice it say, the Claytons are involved in the community.

But they enjoy getting away as well— especially internationally. They have travelled to all of the continents and have a daughterin-law from the Republic of Georgia and will soon have another one from China.

FUTURE A brush with death last year, for both of them, has them thinking a little more seriously about the future. Debra almost died from a bacterial infection on a trip to Iceland and Randy was involved in a serious bicycle accident shortly after. At that time, Debra decided to begin to transition the business to her investment team.

“I want to do it,” Debra said. “But it is really hard to let go.”

They have begun selling shares to three senior executives who will be secondgeneration owners. The transition process will be slow, however.

“It is vital that this company remain in Topeka,” Debra said. “You feel like you built something and you want to leave it better than you found it.”

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716 S. KANSAS AVE., TOPEKA, KS 66603

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Congratulations to Debra and Randy HONOREES OF THE JA HALL OF FAME

FOR THOSE ABOUT TO ROCK WE SALUTE YOU Cheers to Junior Achievement for inspiring the hall of famers of tomorrow. They will rock the boat and rock our world.

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PHOTO SUBMITTED

Philip

PHILIP MORSE | Integrity • Work Ethic • Compassion

“It’s the right thing to do.” That phrase epitomizes Phil Morse’s philosophy on life. From his personal relationships to his business endeavors, Phil always strove to do the right thing.

P

hil married his high school sweetheart, Lona, in 1961, received his master’s degree in international relations in 1964, and in the summer of 1965, joined the Peace Corps—because it was the right thing to do. They spent the next two years overseas.

After that brief international experience, Phil realized Kansas was home. He took a job as a field clerk in

Leavenworth before eventually opening his own business, Phil Morse Homes, in 1975. Following in the steps of his father and his grandfather, Phil spent the next 10 years building both custom and spec houses in Topeka.

TRANSITION A decline in the economy, accompanied by high interest rates, spurred Phil to transition from building homes into real estate. At the time, it just seemed like the right thing to do.

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“While it was a bit of a learning curve for him, it was just a different kind of work,” Phil’s son, Mike, said. “That was really no problem because Dad knew how to outwork everybody.”

That work ethic served him well, and his company continued to grow. Phil worked in residential and commercial real estate in Topeka for decades, ultimately founding KS Commercial Real Estate Services Inc. in 1996 with Ken Schmanke.

RESPECT When Mike was a super senior in college and still didn’t have a plan for his career because he had switched his major more than once, Phil asked to meet him for a beer to discuss his future.

“I expected to be shoved out of the nest,” Mike said.

“Instead he offered me a job.”

Mike said their relationship changed when he started working for his dad.

“I didn’t know my dad was funny,” Mike —Mike Morse said. “For the first time, I got to see him Phil Morse's son fresh in the morning, rather than when he was tired after working all day.”

Sometimes a father and son working together can be a little dicey. But not for Phil and Mike. Their relationship was built on mutual respect and the understanding that each one of them had a job to do.

“We sat 10 feet from each other for 10 years with no wall between us,” Mike said. “It was a joy working with my dad.”

Phil had a number of hobbies over the years, but whatever the interest at the time, he gave it everything he had.

“When dad was into something,” Mike said, “he was all in, no matter what.”

The longest running hobby was sailing. From 1969 to 1984, every Sunday

“Dad always told me, you couldn’t sit on the sidelines and expect to make a living in a town and not give back. It’s the right thing to do.”

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from Memorial Day to Labor Day, the family would go sailing.

“We did it with zest,” Lona said with a smile.

Ever the competitor, Phil would race the other boats on the lake, hoping to bring home those trophies.

“On those days when the wind wouldn’t blow, this wife, who wasn’t a smoker, would light a cigarette so he could find the way the wind was blowing,” Lona said.

Other interests included snow skiing and gardening.

“You should have seen dad’s flowers,” Mike said. “His yard was phenomenal.”

Phil also loved to read. He would devour books like a starving man, filling up cases, shelves and boxes with books on everything from the economy to history. He took that love of knowledge and put it to use by serving on the city and county planning commission for more than 17 years.

INVOLVEMENT Being the father of a special needs child, Phil had a special place in his heart for TARC and committed time, money and love to that organization. He also strongly believed in downtown and served on the Downtown Topeka, Inc. board for years. Mike replaced him when he could no longer serve.

“There has been a Morse on that board for a very long time,” Mike said.

“Dad always told me, you couldn’t sit on the sidelines and expect to make a living in a town and not give back. It’s the right thing to do.”

Phil retired in 2006 when he became symptomatic with corticobasal degeneration, a rare disease that eventually robbed him of the ability to walk and speak. In 2011, after a visit to the Mayo Clinic to see the one doctor in the U.S. who specialized in this disease, Phil made the decision to donate his brain to research. After all, it was the right thing to do.

Phil passed away in 2016 after fighting this debilitating disease for a decade, but his legacy lives on.

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BUSINESS TRANSITIONS

All in the FAMILY

By LISA LOEWEN

Photos by JD MELTON

In most family-owned businesses, the older generation will at some point look to pass the torch to the younger generation. In some cases, this transition may happen in a single transaction, while in others it may happen over a period of years, with the parent transferring equity and organizational control in stages.

By nature, family businesses face more challenges in the succession process than their corporate counterparts. For starters, the lines between ownership and management are often blurred, and the issue of succession can lead to conflict and complicated relationships between family members. In fact, according to Forbes, 90 percent of family businesses don't make it to the third generation, largely in part to a lack of a succession plan and for internal family reasons.

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FOR NEVER WAS A STORY OF MORE WOE THAN THIS OF JULIET AND HER ROMEO.

om

eo &

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t e i l u

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APRIL 21 & 22, 2018 8:00 PM SATURDAY 3:00 PM SUNDAY

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SAVE THE DATE 38th Annual Small Business Awards GO Topeka and the Greater Topeka Partnership cordially invite you to attend the 38th Annual Small Business Awards Recognition Program.

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Tuesday, May 15, 2018 Capitol Plaza Hotel Noon - 1:30 p.m.

Tickets can be purchased at GOTopeka.com or by calling 785.234.2644

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BUSINESS TRANSITIONS

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Photo by JD MELTON | 83 PIXELS

H

AVING A CLEAR, organized succession plan often goes a long way toward smoothing the transitional period, in which parents are giving their children incrementally increasing responsibility and control. This helps them to spot potential weaknesses of these future business owners, and reassures the younger generation that help is available when they need it.

The older generation’s role during a transition is critical: too much meddling, and it risks damaging the younger generation’s belief in their own ability to effectively run the business; however, letting control go completely can rapidly see a family business slide irreversibly. The next generation needs to be given enough confidence to allay their apprehension, and at that same time be kept rooted to reality.

No two family-owned businesses are identical, and neither are their succession plans. Sometimes, the younger generation has been planning to take over the family business for many years; other times, a lifechanging event forces a transition before a succession plan can be implemented. No matter the circumstances, one thing is clear: the next generation needs to find a way to honor the legacy of the business while evolving it to survive and thrive for the next generation.

After 50 years of inspiring Topeka children through dance, Barbara's Conservatory of Dance founder Barbara Ebert is ready for her daughter, Lacee, to take center stage.

RAISING THE BARRE

BARBARA’S CONSERVATORY OF DANCE Lacee Ebert grew up in the dance studio—literally.

She made her debut in Ballet Midwest’s Nutcracker at one week old and spent the next 18 years training in all styles of dance at Barbara’s Conservatory of Dance, under the instruction of the ballet studio founder and her mother, Barbara Ebert.

During that time, Lacee began to realize her dream of turning her passion for dance into

a lifelong career, just as her mother and her grandmother had done. That dream has now become a reality.

“I grew up watching my mother change people’s lives through dance,” Lacee said. “I wanted to continue that tradition and make a difference in the lives of youth in my community.”

Lacee officially took ownership of the dance studio this past June. After receiving

her bachelor’s degree from the University of Missouri-Kansas City Conservatory of Music and Dance, Lacee knew that if she wanted to continue the tradition of excellence begun by her mother at Barbara’s Conservatory of Dance, she would need to dance professionally. She toured for two years with Paradosi Ballet Company, and then another two years with The Thorn Productions Tours Cast before deciding it was time to come home and do what she really loves: teach.

Fortunately for Lacee, the legacy built by her mother was ready and waiting for

her. Barbara has spent the past 50 years creating a safe, educational environment where young people can express themselves through all styles of dance, and the past 40 years giving students the opportunity to perform on stage through their nonprofit organization, Ballet Midwest.

“Dance is wonderful,” Barbara said.

The transition of the business from mother to daughter was as natural as dance itself. Lacee knew by the time she was a freshman in high school that she wanted to eventually take over the studio, so the

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BUSINESS TRANSITIONS

Lacee Ebert is already putting a new spin on the business and looking for more ways to engage the community.

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two began talking about what that would look like. They agreed that Lacee needed to continue her education and dance professionally. They agreed that she could strengthen the educational offering at the studio by earning her certification as an American Ballet Theater (ABT) Certified Teacher, one of the few teachers in Kansas to earn that honor. They also agreed that Lacee could step away if she decided the business wasn’t for her.

“There was never any pressure,” Lacee said. “If I hadn’t wanted it, it would have been just fine.”

However, the joy of Barbara watching her daughter continue in her footsteps cannot be ignored.

“I’ve been saving it for her,” Barbara said. “I know this is going to be a wonderful career for Lacee, just as it has been for me.”

To smooth the transition process, Barbara brought Lacee in as a co-director for the past three years. She has slowly transitioned more of the responsibilities

TK Business Magazine

and decision making to Lacee, mentoring her until they both felt it was the right time to pass the torch.

“I admire her,” Barbara said. “She is a better teacher than I am, and that makes this transition even easier.”

While Lacee intends to continue the legacy her mother built, she plans to change the dance steps a little along the way. She is in the process of implementing an updated curriculum to incorporate the ABT training; she is adding liturgical performances and a company gala; she is also putting her own artistic spin on the choreography, costumes and sets of the Nutcracker, Ballet Midwest’s longest running production. But those changes don’t offend Barbara in the least.

“Whatever new direction she wants to take it will be fine with me,” Barbara said. “She knows what she is doing.”

Understanding the succession plan, working together to ease that transition, and knowing when to walk away has made this business transfer from one generation to the next as beautiful as a grand jeté.

However, Lacee credits something else to easing the transition fears.

“She is not really leaving,” Lacee said. “I will hire her to teach as long as she wants to come in and teach.

And I know she will always be there to answer my questions and give me advice.”

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BUSINESS TRANSITIONS

EVOLVING WITH TECHNOLOGY LOGAN BUSINESS MACHINES

Photo by JD MELTON | 83 PIXELS

Not all generational business transfers are smooth or easy. When Chad Logan took over the company that his grandfather started in 1972, he found a transition path full of challenges.

Chad’s grandfather, Hal Logan, started Logan Business Machines with calculators as the main product line. The small, family company sold and serviced hundreds of thousands of calculators.

When Sharp began manufacturing copy machines, Logan Business Machines became one the first authorized Sharp Dealers. Hal built the company based on three main principles: hard work, honesty and taking care of people (employees as well as customers).

Chad was 20 when he began working for Logan Business Machines doing basic office work. After a two-year enlistment in the army, he returned to the family business to help run the front office. Beginning in 2010, his grandfather began involving him the business decisions and allowing him to make changes in personnel and operations.

Two years ago, Chad took over the reins completely.

That transition process was a little rocky. Hal had not made his wishes that Chad take over the business operations clear to all family members, so when

Father and son team Nic and Chad Logan continue to work side by side to grow Logan Business Machines.

Chad took over the business after his grandfather passed away.

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framework was in place, but the specific details were not.”

Now that Chad has put the bumpy succession process behind him, he is focused on growing the family business to make it viable for generations to come.

Part of that focus includes looking at how they can grow with their existing local clients to meet their information sharing needs both in Topeka and across the country. It also means evolving the business model to embrace everchanging technology.

“We don’t just sell copiers,” Chad said. “We help our customers manage and share information with full-service business machines, whether that is through digital displays, smart boards, data storage or document transfer.”

Chad and his business partner, Chris Martin, hope to triple the business in size, revenue and employees over the next 10 years.

“Yes, it’s an aggressive goal,” Chris said, “but with our dedication to ‘aweinspiring service,’ we are confident we will reach it.”

Chad Logan plans to grow the business to make it viable for generations to come.

Photo by JD MELTON | 83 PIXELS

he passed away suddenly, it became a point of contention. It might have seemed more logical for the business to pass to Chad’s father, Nic Logan, who has also been a principal in the business for 30 years. However, facing his own retirement in just a few years, the best business decision was to let Chad take on the leadership role.

“My father is my logical brain,” Chad said. “I am the social butterfly. Together, we make a great team. I hope he plans to stay in the business for a very long time.

His wisdom is invaluable to me.”

Any time you have extended family involved in a business, it can get tricky.

Looking back on the circumstances surrounding the transfer of the business, Chad said a written succession plan that clearly outlined everyone’s roles and expectations would have made the transition much smoother. He wished his grandfather had brought everyone together to discuss the details so that nothing could be left in question or up to interpretation. But sometimes those conversations can be difficult.

“We clearly fell short on execution of the transition plan,” Chad said. “I think my grandfather procrastinated on developing the succession plan because he was still working in the business. The

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BUSINESS TRANSITIONS

REMODELING A BUSINESS WINSTON BROWN REMODELING

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PHOTO SUBMITTED

Jake Brown is building on the tradition of excellent service started by his father, Gary Winston Brown.

When Jake Brown took over ownership of Winston Brown Remodeling, he didn’t step into a thriving business. Instead he found a business that had been gutted back to almost bare bones, brought on by the need for his father to scale back because of health concerns.

Jake, owned his own small business in Lawrence at the time, knew he was going to have to rebuild his father’s business and redesign it to maintain growth in the future.

“I wasn’t handed a big, fat silver platter of a company,” Jake said. “It was a business I had to build from scratch.”

While working for Wickes Lumber Co., in Lawrence, Gary Winston Brown started taking on side projects for customers who wanted to do home remodeling. That demand grew

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Photo by JD MELTON | 83 PIXELS

BUSINESS TRANSITIONS

Jake Brown, owner of Winston Brown Remodeling and Monica Parsel, designer, work closely with their clients from initial planning to project completion.

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until Gary realized he could create a business doing what he loved. He laid the foundation for Winston Brown Remodeling in 1974 and built it to a 55-employee company in the 1990s, creating one of the largest remodeling firms in Northeast Kansas at the time.

The company was known for its historic remodels, winning several awards for its restorations. Growth was good. Then that foundation began to crumble.

Gary was diagnosed with cancer in 2004 and the housing market was already beginning to see a decline. Faced with uncertainty in his ability to maintain the business, Gary looked to sell the company to an individual in North Dakota. He told his employees to find other jobs. He quit actively marketing the business. So it steadily dwindled from 55 employees to four.

As good sons are known to do, Jake stepped in to help keep things running and quickly decided the business was worth rebuilding to keep it in the family. They didn’t create a transition plan. They didn’t involve attorneys. They just worked out the details with a handshake. Jake purchased the business from his father and became sole owner in 2008.

Then the real work of rebuilding began. Jake had to slowly re-educate potential clients that Winston Brown

TK Business Magazine

Remodeling was still in business. One job at a time, word-of-mouth began to spread and the business once again organically began to grow.

“I fell on my face a few times,” Jake said. “However, each time I had a step back, I learned from it and took two steps forward.”

That forward progress includes a design-oriented approach to building and remodeling. Jake, together with his designer, Monica Parsel, work closely with their clients from the initial planning stages all the way through to project completion to take the stress and uncertainty out of the equation.

“We want to take the ‘rough-gruff ’ out of construction,” Jake said. “People think about home remodeling and all they can envision is the mess they will have to deal with. We come in and build that space they have dreamed of in a way that meets their vision.”

The circumstances under which Jake took over the family business might not have been ideal, but he is grateful in the long run that he was able to rebuild the business in his own way. Jake’s vision of turning remodeling and building into a fun and rewarding customer experience has paid off. The company is now larger than ever.

“We spend a lot time getting to know our clients,” Jake said. “In a way, we become married to them for the duration of their project. A lot of our customers become really good friends and those relationships continue long after the work is complete.”

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785-233-1102 | loganbusinessmachines.com

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From corporate planning to personal lnances, KFR provides you with the customized resources selected speciically for your needs.

We provide you with a proactive plan to equip you for success.

www.KansasFinancialResources.com spring 2018

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Photo by JD MELTON | 83 PIXELS

BUSINESS TRANSITIONS

Tim Etzel, now retired, did some long-term planning to ensure the succession and transition to his son, Noel, would go according to plan.

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MAKING A CLEAN TRANSITION JETZ SERVICE CO.

Not too many nuclear engineers find themselves working in a company that specializes in laundry. However, for Noel Etzel, taking over the business that his parents started in 1966 was extremely logical. Like most engineers, Noel’s attention to detail and rational decisionmaking played a critical role in his decision to take the helm at Jetz Service Co. in Topeka.

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Tim and his wife, Carole, started Jetz Service Co. in response to a laundry crisis created by the devastation from the 1966 F-5 tornado that ripped through Topeka. As apartment buildings began to spring up to meet the housing needs of people who had lost their homes, the need for centralized laundry facilities in those buildings became readily apparent.

Seeing a way to meet those demands, Jetz

advice from attorneys and accountants, and a well-communicated succession plan, nothing was left to chance. The ‘transition team’ has spent the past few years meeting monthly to make sure all the details are going according to plan.

Now that the “Fantastic Four” are taking over the helm, they are putting their own mark on the business. Even though the company has a stellar reputation for taking care of its employees, Noel and his team have embarked on a reengagement process with their employees to discover what they want and need from the company.

“I personally shook hands with every single one of our 170 employees this past year,” Noel said. “It was the first time I had done that. It was pretty awesome.”

Noel says he recognizes that their industry is changing and that the company will have to adapt to stay relevant. While the majority of their business growth has been through acquisition, they are exploring new avenues that will embrace emerging trends.

Even as they push forward with their new agendas, the younger generation still appreciates where they have come from. They also look forward to seeing Tim’s familiar face in the office every day as he lends his support and advice, accompanied by his faithful companion, Pitzl, a friendly ball of fur (Colan breed).

“She runs the Eastern Division,” Tim said.

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Photo by JD MELTON | 83 PIXELS

Service Co. quickly grew into a thriving business.

Now, 51 years later, Noel and a cadre of younger generation leaders are ready to step in and evolve the company to adapt to changing trends and technology.

This transition of leadership didn’t just happen overnight. It actually began five years ago, while Tim was spending some time in California.

“I had some time to think while I was out of town,” Tim said. “I started thinking about what the business would be like when I was ready to step away, and began right then putting the pieces into place to ensure a seamless transition.”

The transition plan involved discussions with key personnel in the business. Not only would Tim be stepping away, but Ron Sommers, the company president who had been in the business from the very start, was also planning to retire. As the succession picture began to unfold, the pieces started to fall into place.

Noel took over as CEO when his father retired in January. Ron’s nephew, Chris Sommers, will replace him as president when Ron retires this summer.

Steve Cowsert will take over for Chris as operations manager, and a relatively new hire, Ryan Hembree, will serve as vice president of sales and marketing.

“We have such high quality young people in our company,” Tim said. “I am fully confident that we will continue to grow and expand the company.”

For this father and son duo, the transition from one generation to the next has been pretty seamless. With the help of some long-term planning, expert

Noel Etzel became CEO of Jetz Service Co. in January. He looks forward to adapting to a changing industry to continue to grow and expand the company.

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BUSINESS SUCCESSION PLANNING

Timothy A. Shultz and Miranda Carmona GOODELL, STRATTON, EDMONDS & PALMER, LLP

SO YOU WANT TO PASS THE COMPANY TO THE KIDS‌ You have built a successful business and now you want to slow down or are considering how to ensure the business keeps operating for the benefit of your children. How do you pass the business along to the next generation?

1. START EARLIER THAN YOU THINK. Every business and family situation is different. It takes

some time to work through the process. Seek wise expert advice in the very early stages of the process, such as a good business attorney, estate attorney and tax advisor. Your expert advisors can help you determine what questions need to be asked and answered during the process that you may not have considered. It will take longer than you think to get everything discussed, drafted and in place.

2. FAMILY MEETING. Discuss with your family what you envision for succession.

Timothy A. Shultz, a Dodge City native, received his Juris Doctor degree from Washburn University School of Law in 1993. He represents businesses and banks around the middle United States.

Miranda Carmona, received her Juris Doctor with a certificate in Tax from the University of Kansas School of Law in 2004. She practices in the areas of estate planning, business and tax planning.

Often, the next generation is not on the same page regarding the family business. Listen to your kids and get their input. They are going to need to understand your vision for business succession so they are able to cooperate and keep the business operating successfully after you are no longer in the company. Make certain your immediate family is involved in the process to the extent possible.

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3. IDENTIFY YOUR SUCCESSOR(S).

Do you have more than one child?

Maybe not all of your children are interested in the company, or maybe a number of your children are interested and could successfully operate the company. You can help lead the next generation to successfully operating the company by having a clear idea for the next leadership structure. Maybe it is a primary leader, or maybe it is a Board of Directors on which your children actively participate, with the company being led by a CEO from outside of the family.

4. DETERMINE THE SUCCESSION PLAN. Once you have discussed your vision

for succession with your family, work with your expert advisors to create the succession plan. This will include items such as: • Determining how to transfer ownership of the company (stock sale or gift, utilization of a trust, etc.).

• Restructuring company governance.

• Creating corporate agreements such as buy-sell agreements.

• Determining the tax ramifications of succession options.

• Developing the succession plan timeline.

A very important part of any succession plan is making certain that your personal estate plan is coordinated with the company succession plan. It is not unheard of for a will to have terms that contradict the intended business succession plan, which may result in the courts having to decide what you wanted. Your business succession plan should help avoid probate rather than create probate issues.

5. PUT THE PLAN INTO ACTION.

Working with your expert advisors: • Determine the timeline for the succession plan.

• Prepare and sign all necessary documents.

• Begin making personnel and policy changes in the company.

• Schedule the all-inclusive resort in Cancun!

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ECONOMY TRENDS

, D O O THE G

THE BAD,

THE BUBBLE,

AND THE DOWNRIGHT

CRAZY

By ROB WEIGAND, Ph.D.

Current conditions and future trends in the U.S. economy and financial market.

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HE U.S. AND GLOBAL STOCKS continue to be the standout performers, and thus have garnered most of the headlines. The S&P 500 index has risen 86% over the past five years. In a normal world, this would suggest that the U.S. economy has been growing briskly, and is expected to remain hot for some time, which has been the dominant narrative in the media.

In terms of longevity, the current economic expansion is definitely one of the best on record. The U.S. economy has been growing for 103 consecutive months as of January 2018, which makes it the third longest expansion ever, and there is a good chance that we will break the record of 120 months set from 19912001.

But, once we get past the employment numbers, the stock market's spectacular performance is not well-

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supported by economic or financial fundamentals, the media's glowing narrative notwithstanding. This means that one of the following must be true: economic growth and corporate profitability is about to shift into a higher gear; the stock market will suffer a sizable correction or even bear market in the next year or two; or 21st century markets have morphed into a world of pure imagination, where stock valuations can remain disconnected from economic reality forever.

EMPLOYMENT Employment-related statistics are the most unequivocally positive, so that's a good place to start. The national rates of unemployment (4.1%) and underemployment (8%) are now equal to the rates achieved at the peaks of the last two economic expansions. A record number of people are employed in the U.S., and companies continue to add new workers at a pace not seen in almost 20 years.

The labor force participation rate is one of the few items of concern on the employment horizon. The participation rate is the percentage of work-eligible adults who are employed or looking for work. This rate is now 5% lower than during the expansion of the 1990s.

According to the Brookings Institution, labor force participation has fallen most dramatically for veterans and workers with less than a high school education.

An increased reliance on disability insurance and a mismatch of worker skills vs. available jobs also affect people's decision to seek work.

Another troublesome point concerns the millennial generation. According to the Pew Research Center, more 18-34 year olds live at home with their parents vs. any other living situation. Not surprisingly, that age range also has the highest rate of unemployment compared with any other demographic. (But don't worry—survey evidence shows that millennials consider themselves happier and more socially connected than their parents.)

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ECONOMY TRENDS

GROWTH With the employment picture looking relatively rosy, next we'll take up the thorny topic of growth, another topic we've heard a lot about on both the state and national level. EXHIBIT 1 shows annualized growth in real GDP since the Reagan era. Growth in the U.S. has been slowing steadily for over 35 years. The text boxes show that the average annual rate of growth has declined by exactly 0.8% per year for each of the four expansions since 1982.

One of the basic building blocks of “growth” is the rate at which companies grow their revenues and profits.

EXHIBIT 2 shows that aggregate revenues and profits for all S&P 500 companies grew steadily immediately following the financial crisis. Since 2014, however, S&P 500 revenues have grown at a sluggish pace (1.3% per year), and the profits of these companies have been decreasing at an average rate of –1.1% per year. This is unusual for a period of economic expansion.

The S&P 500 is made up of larger, more mature companies, so it would make sense to think that smaller, younger companies are the ones that are growing faster.

EXHIBIT 3 shows the aggregate revenues and profits of companies in the Russell 2000, an index of smaller stocks in the U.S. From 2014-2017 the revenues of these companies have grown faster than their S&P 500 counterparts, at an average rate of 3.9% per year.

But, as the exhibit shows, their profits have been stuck in a volatile sideways trend for years. Aggregate profits in 2017 are lower than they were as far back as 2011. Again, these facts contrast with the media's narrative of a briskly growing real economy.

EXHIBIT 4, which shows the cumulative percentage rise in the S&P 500 and these companies' profits since 1982, illustrates why we care if stock prices rise rapidly without support from financial fundamentals like revenues and profits. First, notice how stock valuations have risen faster than profits during the last three economic expansions. Further notice that when the disconnect between profits and stock prices grows too large, the market becomes susceptible to bear market corrections or crashes, like the dramatic declines of 2000 and 2008.

The graph shows that, as of year-end 2017, the disconnect between corporate profitability and stock valuations has never been greater. If investors ever start to care about valuation, as they always have at some point during past expansions and bull markets, U.S. stocks have a long way to fall before prices sync back up with profits.

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EXHIBIT 1

EXHIBIT 2

EXHIBIT 3

EXHIBIT 4

EXHIBIT 5

EXHIBIT 6

Of course, another way to repair the profit/stock price disconnect is for profits to start growing faster for an extended period. And, we've been told that the recent round of cuts to federal tax rates are the secret sauce that's going to jolt profit growth into high gear. Based on simple arithmetic, lower taxes have to result in higher profits to some degree. But I'd be surprised if most Kansans have not grown skeptical of the worn-out claim that tax cuts lead to faster growth. (I don't know about you, but I'm still waiting for the “jolt of adrenaline” that was promised by our former governor.)

Of course, the best way for businesses to grow is to invest in new long-lived assets and infrastructure that grows their customer base and leads to higher sales. But, despite holding record levels of cash and historically low borrowing rates, U.S. businesses haven't increased spending on capital goods since 2011 (see EXHIBIT 5, which shows that consumers' overall appetite for longlived purchases, known as durable goods, hasn't grown either).

Instead of spending their cash on new investments, corporations have been buying back their own stock at record levels every year—an easy trick that juices stock prices, but does nothing for future revenues and profits.

Incredibly, S&P 500 companies have directed over half their annual profits to buying back their own stock in recent years.

Before regulations regarding stock price manipulation were loosened in 1982, companies avoided buying back stock. But stock repurchase has steadily grown in popularity since then, and investment in long-lived assets has declined. These points provide a transition to the information in the next exhibit.

EXHIBIT 6 shows the long history of yields on 10year U.S. Treasury notes and year-over-year growth in U.S. GDP. It is not a coincidence that the two rates track so closely together, especially starting in 1982. Central bankers (Greenspan, Bernanke and Yellen) have been obsessed with driving interest rates lower for decades, based on the idea that if companies and households could borrow cheaply, they would invest and spend more.

But, as the graph clearly shows, the theory hasn't worked—growth in GDP has declined in lockstep with interest rates as corporations have learned to take the easy way out—they have instead used low borrowing rates to leverage up and buy back stock to the point where long-term investments in capital goods, and thus growth in revenues and profits, has suffered.

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ECONOMY TRENDS

What this era of low interest rates and loose regulatory oversight has instead given us is distorted markets—and not just in the sense of the stock price/profit disconnect described earlier. What follows is a list of developments that make the most sense when each is preceded by the phrase “it might be a bubble if.” Ready?

•

NEGATIVE YIELD BONDS | The bonds of major economic powers like Germany and Japan now have negative yields, all the way out to 5-year horizons. This means that large purchasers of these instruments, like pension funds, are content to tie up their money for as long as five years just to receive zero interest and less than their full principal investment back.

10-YEAR ITALIAN BONDS | The yield on a 10-year Italian government bond is lower than the yield on a similar instrument issued by the U.S. government. That's Italy we're talking about – the country that spent all of 2017 bailing out Italian banks.

•

10-YEAR GREEK BONDS | The newly-issued debt of another insolvent country, Greece, has been one of the hottest investments in 2017. Their 10-year bonds were yielding 8% one year ago, but have been bought up with such enthusiasm they now yield only 4.5%, a scant 1.5% premium over U.S. Treasuries of a similar maturity.

•

JAPAN STOCK MARKET | If you think U.S. stocks have been hot, you should check out Japan, whose stock market is up over 120% over the past five years.

What's driven their bull market? The Bank of Japan now owns 10% of their home country's stock market.

•

SWISS STOCK MARKET | And Japan is not alone. The Swiss National Bank has bought up shares of the Swiss stock market in a similar proportion.

•

BITCOIN | After their CEOs threatened to fire anyone caught trading in Bitcoin just months ago, J.P. Morgan and Goldman Sachs have done an abrupt about face and are now clearing Bitcoin futures contracts.

•

IRA PRODUCTS | If you're in the mood to gamble away your retirement savings, financial markets are ready to support your decision. Special IRA products are being introduced that will allow you to direct your retirement savings into cryptocurrencies like Bitcoin.

•

STUDENT DEBT SECURITIES | If Bitcoin is not your thing, Goldman Sachs and Morgan Stanley have begun securitizing student debt, so you can retire fat and sassy based on students' ability to repay the $1.5 trillion owed in student loans (a number that now grows $10 billion every month).

Remember, the last financial crisis was triggered when people stopped paying their subprime mortgages, which had been securitized and sold to pension funds and insurance companies.

•

FEDERAL RESERVE INVOLVEMENT | In addition to buying trillions of dollars in bonds since the financial crisis, the U.S. Federal Reserve accidentally revealed that they have been the number one short-seller of stock market volatility in recent years, in an attempt to make financial conditions appear safer than they really are.

Information included in this article reflects data gathered prior to February 1, 2018.

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So there you have it. Based on everything you've read, you might think I'm recommending that investors hold 100% cash and hunker down for the next crash. But I'm recommending just the opposite. I have never seen a betterjustified bubble—global central banks, the financial media, and just about every financial advisor on earth are as bullish as they have ever been.

This market has a momentum to it that exceeds even the late 1990s tech bubble. I think investors' willingness to suspend their disbelief has a long way to run. My prediction is that U.S. and global stocks are going to continue their melt up well into 2018, and possibly longer, and the disconnect between fundamentals and asset values will keep growing. Your guess is as good as mine as to what will trigger the next financial crisis, but it's coming. It's just not here yet.

TK

PHOTOS SUBMITTED

•

Robert Weigand, PH.D. is Professor of Finance and Brenneman Professor of Business Strategy at Washburn University.

First Friday ArtWalk Feb 2 Laugh Lines @ TCT Feb 16 & 17 Restaurant Week Feb 19 - 26 Harlem Globetrotters @ KS Expo Feb 27 First Friday ArtWalk March 2 Mamma Mia! @ TCT March 2 - 31 St. Patrick’s Day Parade & Irish Fest March 17 First Friday ArtWalk April 6 Laugh Lines @ TCT April 6 & 7 Tulips at Twilight April 6 - 15 Tulip Time April 6 - 23 Tulip Time Festival @ Lake Shawnee April 8 King Lear @ TCT April 20 - May 5 Ballet Midwest: Romeo & Juliet @ TPAC April 21 - 22 Combat Air Museum Pancake Feed April 28 King Lear @ TCT May 1 - 5 First Friday Art Walk May 4 Topeka Symphony May 5 NHRA National Open May 5 - 6 Travel & Tourism Week May 6 - 12 SM&SH Summit May 10

FIND OUT WHAT’S GOING ON IN

#TopCity

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Photo by DAVID VINCENT

THE HEART OF THE ENTREPRENEUR

By KAREN RIDDER

Photos by DAVID VINCENT

At a time when many businesses were shuttering their doors, the owners of one Topeka furniture store decided the answer to their challenges was opening a second location. A decade later, Soho Interiors has become an anchor in the historic Westboro Mart and a strong partner to its mother store, Studio Furniture.

Keith and Vickie Lynch, owners of Soho Interiors and Studio Furniture, shown here with their daughter, Angie Varney, have found success through re-invention.

O

wners Keith and Vickie Lynch have found success rooted in an entrepreneurial spirit of reinvention. It has also taken faith, creativity and a vision that started with a trip by Vickie and one of their daughters to New York.

The family-owned businesses trace roots back 50 years to 1968 when Lynch’s father-in-law purchased a store called “The 57th Street Furniture Distributors Bargain Barn” at 57th Street South and Topeka Boulevard.

“It was an everything store. It had everything in it,” explains Vickie Lynch.

The elder Lynch immediately changed the name of the store to “Furniture Bargain Barn.” Since it was located south of Topeka near the thenactive Forbes Field, he decided to target military families wanting full-house furniture packages.

“They would only be there for a few years. So, they wanted something that was not too expensive and they didn’t want to have to take it with them when they left,” Lynch said.

That business model worked well, until the base closed in the mid-1980s.

The family re-invented the store to stay afloat. They changed its name to “Furniture Barn” and began to carry a wider variety of furniture lines.

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YOUR STORY is our passion.

The Kona Ice story at EnvistaBusiness.com

Matt Douglas & Jay Weber Owners of Kona Ice

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Photo by DAVID VINCENT

Studio Furniture, located at 57th Street South and Topeka Boulevard, has undergone different store names and business models in order to evolve with the market in its 50 year history.

A decade later, in 1996, Keith and Vickie Lynch purchased the store from family and added an expansion, which included remodeling the post-Civil War barn they used for operations.

In 2005, after a major remodel, they decided their “Furniture Barn” name no longer accurately communicated who they were. They changed the name again to “Studio Furniture,” and still operate under that name in that location.

RECESSION FACTOR

Business was good for a while.

They were close to doubling their annual sales when the mid-2000s financial troubles began to hit the area.

By 2008, furniture was low on the list of major purchases for many people.

“The market crashed and people just withdrew. They were fearful and

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a lot of people lost a lot of money.

People weren’t buying,” Lynch said.

The decrease in sales brought a zeroing out of their advertising budget.

The family had considered the idea of a mid-town location for a while, but it had not happened. Now, with sales struggling, they decided expanding might help with their advertising problem.

“We reevaluated what we were going to do. We saw an opportunity to have a second location and have our name in a second place,” Lynch said.

One day Vickie and Keith’s daughter and son-in law were driving through the Westboro Mart area and discovered an empty space.

“My heart leaped. The beauty of the architecture and the creativity we sensed there was exciting,” Lynch said.

MIDTOWN OPPORTUNITY Lynch began to consider how having a storefront in the heart of the city could help them show products and send customers back and forth between locations. They would be able to talk face-to-face with people.

“The question was not whether we wanted to open a shop there, but whether we had God’s blessing,” Lynch said.

They signed the lease and quickly did enough interior work to make their front windows look presentable in time for the 2008 Westboro Mart holiday lighting ceremony. At the ceremony, a Topeka Capital-Journal reporter approached Vickie to do a story about people opening stores in the middle of the struggling economy.

The family ended up with the best advertising they could have asked for, a feature story on the front page of the Thanksgiving Day newspaper.

Vickie did not really know if they were going to survive as a business, but a word from her pastor’s wife and that Capital-Journal article confirmed that they were on the right path.

They opened on December 10, 2008.

“We succeed by God’s creativity. He put the idea in my heart that we would get through it,” Lynch said.

Soho New York experience with art, high-end gifts and items from places like Australia, Africa and Italy.

“In the beginning, we also had French underwear, leather handbags, gifts, specialty gift wrap and unique things. To re-invent the wheel, you have to always be looking and changing with the times,” Lynch said.

Keith manages the original furniture location. Vickie and one of their daughters currently operate the new store. All four of their children, including two sons have worked in the stores throughout the years.

Soho Interiors had become a staple on the Topeka First Friday Art Walks.

To date, the family has hosted and worked more than 112 art walks. This event gave them a new way to connect with customers and be a part of the community.

CONTINUALLY EVOLVE Over the years, they have continued to be flexible and evolve, modernizing the store and changing product offerings as they felt the need of the area dictated.

At one point, they even opened a coffee bar and bakery in the store.

After 10 years of continual evolving, they have become a modern and contemporary furniture store, but they still strive to offer something different in Topeka.

“We don’t just sell furniture. We truly delight in helping people create the environment they want to live in. We feel strong and secure and excited about each day,” Lynch said.

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The Soho Interiors model was inspired

by Soho New York, one of Vickie Lynch's favorite places.

Photo by DAVID VINCENT

SOHO INSPIRATION That creativity included inventing a concept that was new to Topeka and the Lynch family. Up to that point, they had been operating simply a furniture store.

The Soho Interiors model took them back to more of the “everything store” idea from 1968. However, this time, the “everything” would have an inspiration— Soho New York. Vickie had visited the area several years before and loved it.

“We wanted to bring it home with us. Since our roots were here and we aren’t going anywhere,” Lynch said.

Their strategy was to rebrand themselves in the new location, but also be able to send customers back and forth based on their needs. Soho Interiors would become an upper-end design store offering more interior design consultation and create the feel of that

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TAX CUTS AND JOBS ACT IMPLICATIONS

Brian Lang PHOTO SUBMITTED

SS&C SOLUTIONS, INC.

FREQUENTLY ASKED QUESTIONS regarding how the “Tax Cuts and Jobs Act” affects a business.

On December 22, 2017, President Trump signed into law the “Tax Cuts and Jobs Act,” a substantial update to the income tax code and the largest major tax reform in 30 years.

Q I’ve read that the tax rate for corporations has been reduced. How will that impact my business?

A One of the most significant provisions of the new tax act was to reduce the income tax rate for corporations to 21%. This new rate applies to entities that are taxed as C Corporations and therefore won’t apply to many small businesses, which are set up and taxed as pass-through entities.

Q Iimpacted own a small business that is setup as an LLC. How will my tax rate be by the changes?

A Generally, the 20% deduction for qualified business income (QBI) cannot exceed 50% of your allocable share of the W-2 wages paid with respect to the business or 25% of wages and 2.5% of your adjusted basis in the property of the business, which is intended to help real estate investors.

The intent of the 20% QBI deduction is to lower the effective tax rate on business income that is reported directly on the business owner’s individual income tax return. This is an attempt to lower the tax rate on small business income to a rate that is similar to the rate which applies to C Corporations.

Brian Lang, CPA, CVA, CEPA, is a partner at SS&C Solutions, Inc. who serves clients through management consulting, income tax preparation and planning.

There is also a second limitation to be aware of. For taxpayers with taxable income above $157,700 ($315,000 for joint filers), the 20% deduction will not apply to income generated from “specified service” business income. Specified service income is income earned in the fields of health, law, consulting, athletics, financial or brokerage services, or where the principal asset is the reputation or skill of one or more employees or owners. This essentially means that if you earn business income from one of these fields, the 20% deduction phases out and becomes entirely unavailable when your income exceeds a certain level.

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Q Did the new tax act make any changes related to expensing of equipment used in my business?

A Yes, the new act eased the rules related to expensing of equipment and allowed for instant expensing in most situations.

Under the new law, a 100% first-year deduction is allowed for qualified new and used property acquired and placed in service after September 27, 2017 and before 2023.

The new expensing provisions do not apply to real property such as buildings, land and other real property.

Q Are there any other provisions that might be have an impact on my business?

A entertainment The new law eliminated the 50% deduction for business related expenses. This will negatively impact the deductibility of entertainment expense that a business incurs with respect to entertaining customers, vendors or employees where a deduction might previously have been allowed.

The new law included substantial changes to current rules for both businesses and individuals. Accordingly, you should consult with your tax advisor for how the new law will impact your individual situation.

There are several planning opportunities that you should work with your tax advisor to take advantage of as soon as possible.

Save the Date 4.4.18

Training: 1:00-5:30 PM Cocktail Reception: 5:30-6:30 PM

spring 2018

Tech Talk:

Trends, Tools and Storytelling Tips to Boost Your Brand Speakers: Greg Brown, FleishmanHillard Rich Drinon, Drinon & Associates Bill Gardner, Gardner Design Tara Dimick and Lisa Loewen, Focus Engineered

register at iabctopeka.org

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Bountiful Boutiques

By JAMIE SLACK

Photos by DAVID VINCENT

A strong and vibrant community relies on its small retail businesses to bring both personality and individuality to their product offerings and to the community vibe. They help add to the excitement of creating a place that outsiders want to visit and that residents are proud of.

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PENING A SMALL RETAIL BUSINESS takes an incredible amount of work and faith. It used to be retailers only had to worry about competing with big box stores.

Now they face massive online competition that includes thousands of items to choose from at the stroke of a mouse, personalized stylists at no extra charge and Amazon’s free shipping.

However, shopping locally has become a steadily growing trend in the Capital City, as people are always looking to find one-of-a-kind items as part of a personal statement.

Recognizing this growing trend, a few local boutique owners are gambling that Topeka shoppers desire a hands-on shopping experience where they get to feel the quality of the items they are shopping for and try things on before they buy.

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Ethan + Anna Children's Boutique Photo by DAVID VINCENT

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Vision

ASH BOUTIQUE

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Photo by DAVID VINCENT

Ashley Carson, owner of Ash Boutique, was destined for a retail career even as early as a young child, selling friendship bracelets in the driveway. Now, not only does she run her boutique in Westboro, she mentors others as they open their own retail locations.

Photo by DAVID VINCENT

Ashley Carson, owner of Ash Boutique in Westboro, established the roots of her vision as a child when she sold friendship bracelets in her neighborhood. Realizing that she had a knack for design and sales, she enlisted her friends to make more bracelets to earn even more money.

“I remember this lady stopped by my driveway and bought all the bracelets, $10 worth,” Ashley said. “I was so excited! But then I didn’t have anything left to sell.”

Even at that young age, Ashley recognized that she needed to create a marketing and promotion plan so she could adapt to meet her customers’ needs in her future endeavors. Her first job was in retail and her entrepreneur soul continued to bloom.

Some boutiques work only in a storefront, while others use different approaches to sell. Ashley began to sell jewelry and accessories out of her home while raising her children and coping with an illness in the family.

“I did that for about six years,” Ashley said. “I always wanted a store. I saw someone moving out of the space where my store is now located, so I pulled over and called the landlord.”

Ash Boutique, a brick and mortar store, extends its shopping reach through e-commerce and a VIP social media app.

When Ashley saw that storefront available in Westboro Mart, she knew she couldn’t pass it up. Even if she wasn’t quite ready to plunge into entrepreneurship, she knew that a place like this would not stay on the market long, and this was her chance to go all in.

Timing was not perfect, however. She found out she was pregnant with her third child when she put up the “coming soon” sign.

Ash Boutique in the Westboro Shopping area sells clothing and accessories out of its storefront, while also selling online, through an e-commerce app and through a VIP social media app. This allows her customers to have a deep understanding of the products, while also learning more about the people selecting the items.

For Ashley, running a successful boutique also means mentoring others to open their own retail locations. She understands that the more Topeka has to offer its potential customers, the better off all businesses will be.

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Collaboration ETHAN + ANNA

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Photo by DAVID VINCENT

Kim Adair and Aimee Rosenow, owners of Ethan + Anna, tapped into multiple resources to guide them as they prepared to open their children's boutique at Brookwood Shopping Center.

Ethan + Anna owners Aimee Rosenow and Kim Adair relied on Ashley Carson, owner of Ash Boutique, for her knowledge of creating a specialized boutique business to help them start their own boutique in Topeka. This relationship enabled them to navigate the tough road of starting a small business. Ashley was able to share valuable insights into how the market works and effective ways to create a close bond with customers.

These two friends, who met each other through their kids, had a strong sense of micro fashion and knew that other moms and dads needed some tiny clothing inspiration. They opened Ethan + Anna in the Brookwood Shopping Center in September of 2017. Even though the business partners were new to entrepreneurship, they had a pretty good idea about what they were getting into.

“Our husbands both own their own businesses, so we’re kind of in the small business arena,” Kim said. “I think there were no surprises with the amount of work that goes into a small business.”

They did their research, developed a business plan, and then enlisted the help of the Washburn University Small Business Development Center in Topeka.

“This is an amazing resource for people like us,” Aimee said.

Another resource enlisted by Aimee and Kim: marketing experts.

“We’ve worked with Sprout Communications to create videos that show our business, which were really fun to make.

They had really cool ideas that fit our brand,” Aimee said.

The boutique relies heavily on social media to promote its products.

“We’ve created a VIP group where we also do sneak peaks,” Aimee said. “The changing of the algorithms is the difficult thing about social media. We want people to be in the loop and see what we’re posting.”

In addition to working with social media, Ethan + Anna aims to revamp its website in the next year to reach out to new clients and more effectively promote the clothing and fun events.

Photo by DAVID VINCENT

When shopping for inventory at market, the Ethan + Anna owners look for chic and unique fashion styles that parents and kids will both appreciate.

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Passion

HEAVENLY CREATIONS

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Photo by DAVID VINCENT

Four years ago, Lenora Williams opened Heavenly Creations, a salon and clothing boutique, in downtown Topeka.

Heavenly Creations owner Lenora Williams always wanted to make people feel beautiful and felt she had a talent for doing so. A cosmetologist entrepreneur, she operates a hair and nail salon in her downtown location, but takes beauty one step farther. She also offers beautiful evening gowns and leisurewear lines for many occasions.

“People would always say to me, ‘You’re going to do something with hair or clothes,’ and I did both,” Lenora said.

For many business owners, a catalyst propels them into the business world whether they are ready or not. Lenora began her career working out of her home so she could care for her ailing father and three adopted girls.

“I wanted to be there for them,” she said.

Working from home allowed her to set her own hours while still doing what she does best—making people feel beautiful.

Having operated her salon and clothing boutique for 23 years, Lenora was debt free when she opened her new location at 116 SE 7th St. four years ago.

“In my case, it was really easy because I started out of my home,” Lenora said. “I didn’t have to worry too much about financing the business.”

She says she loves being downtown where the excitement is palpable. And with new businesses opening up around her, she is looking at how to grow her own business.

“With the revision of the downtown, we have investors that are buying everything,” Lenora said. “I’m trying to get a feel for what their plans are so I know where to go next.”

Reacting to the increasing demand for retail stores downtown, Lenora’s husband, Theodis Williams, opened a men’s clothing boutique last year.

Photo by DAVID VINCENT

Heavenly Creations also offers a wide selection of accessories to accompany her lineup of evening gowns and leisurewear.

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Inspiration

DISTINQUÉ GENTLEMAN

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Photo by DAVID VINCENT

According to his wife, Theodis Williams, owner of the Distinqué Gentleman, is his best advertiser as he always puts his best fashion foot forward.

Because clothing is a large part of our identity, most people continually search for a style that reflects their personality.

Men often get overlooked in the world of fashion, but Theodis Williams, who just happens to be Lenora’s husband, wanted to change that. He applied his unique talents of making men feel great in a beautiful suit and flashy tie to open the Distinqué Gentleman, a men’s clothing boutique at 112 SE 7th St., just a few doors down from his wife’s store. His store has a collection of shoes, suits, accessories and an in-house tailor to ensure every item fits perfectly. And Theodis always makes sure he is putting his best fashion foot forward.

“My wife tells me all the time, ‘You are your best advertiser,’” Theodis said.

Sometimes men have no idea what they are looking for, and that is when they turn to Theodis for fashion advice. His enthusiasm for clothes and accessories is infectious.

Now that the Distinqué Gentleman has been in place for nearly a year, Theodis says he is up for any challenge or opportunity that may lie ahead. With all of the excitement centered on downtown Topeka, Theodis says more people are finding his store.

“When a person comes to the capital city, they ought to be able to come downtown and find a nice shop, a nice restaurant, a nice bar if they want to go out and have a drink,” Theodis said.

“Downtown should be a hub of the city. It should always have something to offer.”

He wants his store to add to the excitement that is attracting people downtown. He hopes the selection and service offered in his store will help convince customers to shop in town before going somewhere else.

“Many people will go down the highway to Kansas City to find something that they can find right here,” Theodis said.

“Whether it’s a lawyer that wants a nice tailored suit or it’s a minister who wants a classic set-up, those items can be found in Topeka.”

TK

Photo by DAVID VINCENT

Inventory at Distinqué Gentleman includes all of the finishing touches to make men feel great in a beautiful suit.

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Three Topeka Locations • JayhawkPharmacy.com Traditional Pharmacy 785-228-9700 Patient Supply 785-235-9700 Custom Pharmacy 785-228-9740 spring 2018

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ORGANIZATIONAL CORE VALUES

Dr. Thomas Underwood PHOTO SUBMITTED

INDEPENDENT EDUCATOR AND CONSULT

LEADERSHIP AND ORGANIZATIONAL CORE VALUES: It is common for organizations to have a list of core values, statements of principles that have intrinsic worth.

C

ORE VALUES SERVE as a foundation to an organization’s vision, an influencer of culture, and as a framework for behavior. Since it has intrinsic worth, a core value is “an end in itself ” (Kidder, 2009) and should not change over time or factors. Honesty, for example, is generally considered a value of intrinsic worth.

The challenge is whether the core values listed on an organization’s webpage or on a poster in the break room have intrinsic worth or do they “too often stand for nothing but a desire to be au courant or, worse still, politically incorrect” (Lencioni, 2002). Core values without leadership commitment are not only counterproductive, but do not differentiate the organization from its competitors. Usefulness stems from how they are communicated, integrated into policy and procedure, and modeled by leadership.

Thomas Underwood, Ph.D., is an independent educator and consultant who supports individual, organizational and community excellence. Thomas is also the Executive Director of the NOTO Arts and Entertainment District.

Authenticity vs. Hypocrisy Leaders can demonstrate authenticity in their commitment to core values through effective communication, integration and daily behaviors. On the other hand, hypocrisy of leadership happens if the core values are contradicted by leadership actions. As J. Evans notes, “Core values do not add value if the behavior of those who typically have the most power in organizations do not demonstrate them at work.”

The chart to the right shows leadership authenticity and hypocrisy characteristics as applied to core values that are unique but also some that are common—as garnered from a quick internet search of some organizations in the region: a medical center, a manufacturer, a non-profit and a university.

SO WHAT? Aside from the impact on the individual employee, why does this matter? Because leadership does not occur in a vacuum. Every leadership action, good and bad, is observed and processed by others.

If a leader’s behavior is not authentic, then the core values do not have intrinsic worth and are simply words. The negative perceptions that emanate from employee observations of leadership hypocrisy are eventually shared with others and cascade through the organization. Since formal leaders serve as the face of an organization, the organization is often the personification of the formal leader. If the leader’s judgements are deemed hypocritical, it is not just the leader who is viewed negatively but the entire organization. People share their frustrations with family, friends, and the community. Like a cancer, the negative perception grows.

The leader who is authentic in commitment to core values will engage in processes to support mechanisms and practices that encourage demonstration of those core values. Conversely, the formal leader who voices support of core values but demonstrates hypocrisy through actions, or inactions, compromises the integrity of the organization and fails in their responsibility as a leader.

REFERENCES Evans, J. (2010). Core values: Wall posters or culture builders? “Psychology Today.” https://www.psychologytoday.com/blog/smartwork/201008/core-values-wall-posters-or-culture-builders.

Lencioni, P. (2002). Making your values mean something. “Harvard Business Review.”

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LEADERSHIP

CORE VALUE AUTHENTICITY INTEGRITY honesty, fairness, openness

HYPOCRISY

genuinely and sincerely includes others in discussions and processes

invites employee contribution only if it aligns with what the leader thinks

creates a safe environment for employees to be open and honest

seemingly capricious decision making

QUALITY/EXCELLENCE being exceptional as measured against a standard

engages employees to determine goals and strategies

communicates only at the annual performance review

communicates regularly to assess progress and provide support

does not engage in the identification of goals and related strategies

COLLABORATION/TEAMWORK working with others to achieve a common outcome or benefit

supports systems that encourage and enable employees to connect with colleagues from other areas

perpetuates organizational silos by controlling interactions

INNOVATION/CREATIVITY new ideas

enables formal frameworks and processes that support innovation

fails to provide a framework

discourages networks

reinforces diverse relationships that generate innovative ideas

punishes failure of new ideas

responds to e-mails in a timely fashion

solicits candid input and follow up

shows no respect for the input and contributions of their employees

recognizes and rewards employee contributions

RESPECT honor, dignity, humanity, openness

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AGENTS OF CHANGE

By JAMIE SLACK

The Topeka community has a handful of companies that have served as change agents to our vibrant community for generations.

One of these longstanding companies in our area is Federal Home Loan Bank Topeka, a bank with almost $50 billion in assets that many Topekans have never heard of.

Mark Yardley, president and CEO of FHLBank stands in the reception area of the bank's newly opened state-of-the-art facility.

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Designed to be energy-efficient as well as functional for its approximately 250 employees, FHLBank offers floor-to-ceiling windows for natural lighting, collaboration areas for team thinking and an activity room that allows for multiple configurations.

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FHLBank is not a traditional bank that lends money to individuals.

Instead, it is a privately-owned, federallychartered corporation that provides wholesale products and services to its members—community banks, credit unions and insurance companies. The services offered by FHLBank help local financial institutions expand the availability of mortgage credit, compete more effectively in their markets, and foster strong and vibrant communities.

Congress established the system of home loan banks in 1932 to promote home ownership throughout the country.

For 85 years, FHLBank has changed directions, grown and created a lasting impression of how a company should impact its community.

TK Business Magazine

“We bring Wall Street to Main Street,” said Mark Yardley, President and CEO of FHLBank. “We make money available to our members and they take it back to use in their communities.”

EXPANSION FHLBank is beginning 2018 with a big move to a brand-new building.

Previously located in the Security Benefit building on Sixth Street, the FHLBank has moved just across the street into a newly constructed state-of-the-art building located at 500 SW Wanamaker.

Over the years, the FHLBank’s board of directors has evaluated whether to move out of Topeka or even out of state, but has always concluded that FHLBank is best served by staying in Topeka.

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PHOTO SUBMITTED

FHLBank sits atop a rising hill that offers panoramic views of the city, the Wanamaker corridor and surrounding landscape.

FHLBank HISTORICAL TIMELINE MILESTONES 1930s

1960s

July 22, 1932—Federal legislation signed by Herbert Hoover establishes a system of 12 regional banks across the United States designed to loan funds to savings and loan associations to help stabilize the housing and mortgage markets.

1969—Overnight deposits introduced.

October 15, 1932—FHLBank Topeka opened its doors in downtown Topeka with six employees and several million dollars in capital.

1989—The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) passed.

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1980s 1980—FHLBank begins check processing.

FHLBank membership was now open to all federally insured depository institutions, including commercial banks and credit unions. (Thrifts and insurance companies were eligible members from the start.)

1990s 1990—FHLBank began its affordable housing and community investment programs.

Homeownership Set-Aside Program (HSP – see below).

1998—Check processing division sold to Fiserv.

The Affordable Housing Program (AHP) is the largest privately-funded housing grant program in the United States. FHLBank Topeka sets aside 10% of its earnings each year for the program and partners with its members and public and private housing development organizations to provide: (1) grants of up to $750,000 per project to help fill financing gaps on low-income owner and rental housing initiatives; and (2) down payment assistance to first-time homebuyers through its

1990s—As a result of FIRREA, membership grew rapidly from 111 members in 1990 to 759 members in 1999.

1999—The Mortgage Partnership Finance (MPF) Program was introduced.

The MPF Program promotes access 1997—FHLBank introduced the to the secondary market for its Rural First-time Homebuyer Program, members, but especially for small now called HSP, covering rural and and mid-sized financial institutions. urban areas. The HSP helps potential homebuyers cover down payment and closing costs. The HSP currently offers $5,000 grants to eligible firsttime homebuyers.

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“Topeka has been good for us,” Yardley said. “When we moved into the Security Benefit building in 2002 we thought we had plenty of room.

Eventually, we took another floor and were still busting at the seams.”

The new building signifies the FHLBank’s vision for the future and its goal to have more collaboration within the company and the community.

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COLLABORATION & FLEXIBILITY Over the last 85 years the company has seen significant growth, and the new building had to accommodate a bigger company and create a space that encourages team thinking for even bigger ideas.

“We built it with a lot of collaboration spaces,” Yardley said.

“Millennials like to work together and they are a growing part of our workforce.”

The new building offers more than just collaborative space. It also has a fitness and activity room to promote wellness. The work space was designed with the ability to move components around to continually create different spaces.

Equipment Purchase Reimbursement

}

2000s 2002—FHLBank Topeka moved from downtown to the Security Benefit building on the west side of town.

2010s January 2017—Mark Yardley named President and CEO. He’s only the sixth president in FHLBank's 85-year history.

January 2018—FHLBank moved across the street to a newly constructed location at 500 SW Wanamaker.

Employee Training • Construction & Renovation Reimbursement • Marketing Assistance Find out if your business qualifies and learn about your options by contacting GWashington@GOTopeka.com spring 2018

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MARK YARDLEY

PHOTO SUBMITTED

President and CEO FHLBank

About

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•

A native Topekan.

•

Graduated summa cum laude from Washburn University with a degree in business administration with an accounting emphasis.

•

Worked for a national accounting firm in Topeka for seven years.

•

Joined FHLBank in 1984 in the Internal Audit area.

•

Served as Chief Financial Officer and Chief Risk Officer.

•

Became President and CEO in January 2017.

•

Trustee and director for the Washburn University Foundation, serving as the chair of its audit committee.

•

Serves on the Greater Topeka Partnership board.

•

Heads up a running group at FHLBank.

•

A classic car enthusiast and restores them in his spare time.

spring 2018

Yardley says flexibility is key, especially when dealing in a world that is constantly changing and connecting with members throughout its district and investors all over the world.

“Things are only going to change more,” Yardley said. “Look at where we’re at right now. Look at how we use our mobile devices to share everything. We are a very conservative business, but we still have to adjust to the needs of our members.”

PARTNERSHIP Partnership is one of the company’s core values. Giving back to the community and seeking collaboration with organizations on a variety of projects is part of FHLBank’s long-range vision.

That is why employees are given generous volunteer time to work in the community.

“We have a lot of people that love working here because of the things we do,” Yardley said.

“We are looking for community connections that are good for us and our business partners.”

Yardley says FHLBank strives to create a strong and healthy community that in turn helps the company—a strong business ecosystem.

TK Business Magazine

“We are always doing more to give back,” Yardley said. “Pat Doran (Executive Vice President at FHLBank) has been very active in the community, and some of his efforts and outreach have positioned us to collaborate on several local projects like the Jayhawk Theater and Momentum 2022.”

PROGRESS Yardley says he is also excited about the many changes happening in Topeka, especially with Greater Topeka Partnership’s efforts to address the community’s competitiveness.

“We’re really behind the Momentum 2022 effort,” Yardley said. “The downtown redevelopment we see happening is exciting, and we think they’re going to make some progress.”

Yardley says watching the changes happening in Topeka and being able to be a part of that progress fuels the desire to create a community that future FHLBank employees will want to live in. Through collaboration on community initiatives and working with educational opportunities in the area, Yardley says FHLBank hopes to create another successful 85 years.

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SCENE ABOUT TOWN

94.5 Country Bridal Fair RAMADA DOWNTOWN JANUARY 27, 2018

PHOTO 1 Anna Cazier and Gina Newsham Patterson, Topeka Country Club

PHOTO 2 Jason Bell, Pat Golden, Kyle Coffman and Alex Coffman, Golden Tuxedo

Photos by KEITH HORINEK

PHOTO 3 Katy Woods, Danni Clawson and Jessica Tarwater, Dog Day Afternoon

PHOTO 4 Nikki Lewien and Lee Hanner, Confectionary Disasters

PHOTO 5 Julia and Eddie Moeg, HHB BBQ

PHOTO 6

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Karen and Drew Walker, Solid Rock Sound Machine

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SCENE ABOUT TOWN

Vaerus Aviation Hangar Party DECEMBER 7, 2017

PHOTO 1 Brenda Head, Jim Biggs, Lyndi and Vincent Cox

PHOTO 2

Photos by SARAH THUMMEL

Brent and Angie Boles, Walt and Susan Frederick

PHOTO 3 Brooks Pettit, Jenelle Carkhuff, Reed Erickson and Danny Zaslavsky

PHOTO 4 Chris Haverkamp, Patrick Traul and Dave Gary

PHOTO 5 Jim Klausman, Louisa Schurig, Greg Schwerdt, Widge Yager, Craig Schurig and Gary Yager

1

PHOTO 6 Kory and Ann Rupp, Louisa and Craig Schurig

PHOTO 7 Matt and Wendy Pivarnik and Paul Bossert

PHOTO 8 Clayton and Melody Devlin, Kristina and Ben Figuerres

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SCENE ABOUT TOWN

Greater Topeka Chamber of Commerce's Annual Meeting

PHOTO 1 City Councilman Michael Padilla County Commissioner Kevin Cook Anita and Larry Wolgast

RAMADA DOWNTOWN JANUARY 18, 2018

PHOTO 2 Kim Konecny, Westar Cody Foster and Lindsay Freeman, Advisors Excel Sarah Fizell, ArtsConnect

Photos by KEITH HORINEK

PHOTO 3 Terry Wright, GNB Mortgage Co. Jennie Bowen, ServiceMaster Restore by AAA Kenneth Scott, Farmers Insurance

PHOTO 4 Vince Fry, Downtown Topeka, Inc. John Hunter, Washburn University

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Tim Kolling, AlphaMedia Mile Braum, Mike Curry and Jim Garrison, State Farm Insurance

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LAST WORD

Mayor Michelle De La Isla

You pulled yourself out of poverty and overcame impossible odds to be where you are today. How has this experience prepared you to be mayor?

Pulling myself out of poverty has been hard. The most humbling part of this process has been accepting the help of friends and family as I started becoming more financially secure. I had to prioritize, maximize my revenue, communicate, make payment plans and still keep my focus on family and work.

I think that the resilience, multitasking and empathy that comes from understanding where many families in our community are at has been the best preparation. Everything comes at you at once. You need to be quick and sharp and at the same time collaborative when solving community issues. The school of “Low-Income/ Single Parenthood” prepares you for that task.

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In January, Michelle De La Isla became the first Hispanic mayor of Topeka. She previously served on the Topeka City Council representing the District 5 council seat and as the city's deputy mayor in 2016.

How do your responsibilities at Westar Energy tie in with those of mayor?

The skills I use for Westar share an aspect of human development that the job as mayor ties into. At Westar my role consists of training in the area of diversity and inclusion, and pipeline development with the same focus. Pipeline building also has a strong component of project management/event planning, coordination and execution.

As you can imagine, a mayor should have good planning and execution skills as well as be able to communicate in an inclusive way with constituents. When we discuss economic development and talent pipelines, the experience I have gained at Westar has been instrumental to allow me to speak with better understanding to the overall community goals.

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Dispel 3 potential myths about Mayor De La Isla?

1) I do sleep… sometimes.

2) I spend good and quality amounts of time with my kids and in prayer.

3) I’m not Wonder Woman… most days.

How do you hope to leave Topeka a better place after your term as mayor is over?

I want to see the Momentum 2022 plan at its prime of execution. I would love to see our neighborhoods filled with residents who are part of their neighborhood associations, improved quality of life as reflected in roads and blight elimination, jobs developed, a thriving Downtown and a sense of inclusion and unity.

I Am Recovering...

330 SW Oakley Topeka, Kansas 66606 Valeo’s Programs and Services for Recovery: 24 Hour Crisis Intervention Primary and Dental Care On-site Pharmacy and Laboratory Mental Health Assessment Residential Care Psychotherapy Substance Abuse Services Case Management Medication Management Community Medication Outreach Homeless Outreach and Housing Integrated Dual Diagnosis Treatment Expressive Therapies Services for Employment Success Peer Support Community Education and Outreach

LET VALEO PROVIDE YOU WITH HOPE THROUGH RECOVERY. CELEBRATING OVER 50 YEARS OF RECOVERY SERVICES

Phone: 785.233.1730 24-Hour Crisis Line: 785.234.3300 24 Hour Detox Number: 785.234.3448 Visit us at: or valeotopeka.org spring 2018 TK Business Magazine 99

PICTURE THIS: Collaborative care, close to home At Stormont Vail Health, our picture of advanced medicine means providing the best health care possible, close to home. That’s why we are collaborating with the world-renowned Mayo Clinic. As a member of the Mayo Clinic Care Network, our Cotton O’Neil physicians have access to additional expertise. They can work with Mayo experts to ensure comprehensive care for patients with complex conditions — at no additional cost, right here at Stormont Vail.

The story of you is the story of us.

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spring 2018

TK Business Magazine