Nov. 7, 2014 UBJ by Community Journals

NOVEMBER 7, 2014

COMPLIMENTARY

ON THE DRAWING BOARD HANDLEBAR, 8 O’CLOCK GROCERY, AND 7 WEST SIDE ACRES ON THE VERGE OF TRANSFORMATION

P. 27

P. 6

P. 26 Front Elevation : A

UBJ BANKING Judge dismisses CertusBank defamation lawsuit BENJAMIN JEFFERS | STAFF

bjeffers@communityjournals.com A federal judge last Friday dismissed a case by ousted CertusBank executives against their former employer. The dismissal is the latest development since CertusBank’s president and co-CEOs were fired amid allegations of mismanagement in April. Judge Timothy Cain concluded the federal court did not have jurisdiction, according to his order and opinion, “[b]ecause there is not complete diversity between the parties.” Federal courts have subject-matter jurisdiction when “the claim exceeds $75,000 and parties are citizens of different states,” according to the Cornell University Law School’s Legal Information Institute.

Court documents state that CertusBank attempted to keep the case in federal court by identifying 29 factors to support that plaintiff Walter Davis’ domicile (permanent residence) was in North Carolina. Davis, however, claimed to be a South Carolina resident. Cain wrote in his opinion, “Many of the factors listed by Defendant CertusBank do not clearly support a finding that Davis was domiciled in North Carolina when this action was filed,” although factors presented by CertusBank, such as Davis’ having two cars registered in North Carolina and paying property taxes on those cars in North Carolina, did carry weight. “However, in light of all the circumstances, and based on Davis’ affidavit, deposition testimony, driver’s license and voter registration, the court finds that Davis was a South Carolina

citizen before this action was filed, and remained one at the time this action was filed,” Cain wrote. Cain ruled that because plaintiff Walter Davis and defendant CertusBank were both citizens of South Carolina, the court did not have jurisdiction. Along with Davis, Milton Jones and Angela Webb were the plaintiffs. The defendants were CertusBank, Benjamin Weinger and 3-Sigma Value Financial Opportunities. Dick Harpootlian, attorney for the plaintiffs, said they have filed with the state court in Greenville and also federal court in Atlanta. He said the dismissal was a matter of procedural issues that he and his clients “needed to get out of the way,” and they can now move forward in their case against CertusBank.

“We’ve always wanted our day in court, and that’s what we’re going to get,” he said. Davis, Jones and Webb failed a lawsuit in April claiming they were libeled, defamed and prevented from defending themselves against serious public accusation of mismanagement. The three executives were fired after a report by American Banker magazine in March questioned spending and other practices by the bank. FDIC reports showed increased expenses during multiple quarters of financial losses. One banker who had reviewed the financials said on background that CertusBank was spending $1.80 for every dollar it earned, UBJ reported in April. Senior business writer Jennifer Oladipo contributed to this report.

The MBAe program not only taught me the fundamentals of entrepreneurship, but more importantly it taught me how to solve problems with innovation and creativity.

Stefan, MBAe ‘13

www.clemson.edu/mba · 864-656-3975 November 7, 2014

UPSTATE BUSINESS JOURNAL

Volume 3, Issue 45

November 7, 2014

Top-of-mind and in the mix this week

WORTH REPEATING “We’ve always wanted our day in court, and that’s what we’re going to get.” Dick Harpootlian, attorney for Walter Davis, Milton Jones and Angela Webb, plaintiffs in a defamation lawsuit against their former employer, CertusBank

“Is a sniper being mindful? Sure, they’re concentrating on one thing. But would we say they’re doing a mindfulness practice? No.”

Eimer Kernan, mindfulness trainer with WellSmart Solutions.

“If I don’t do it now I’ma try it again. And when I do accomplish it I’ma try it again. I’m no quitter ’cause I’m a go getta.”

Hip-hop artist Lil Wayne, whose tenacity provides an example to Jamie Patterson’s Clemson MBA students

Photo Provided

The property on Cleveland Street in Greenville that was most recently known as the 8 O’Clock Superette was also once home to a Krispy Kreme, a Piggly Wiggly grocery store, a gas station and variety of other businesses throughout the years. On Monday, it will be bulldozed for a luxury condo development. Read more on page 27.

TBA

VERBATIM

On Southern sports destinations… “World-class facilities, remarkable urban assets in a spectacular natural setting and a ‘can do’ attitude have put this Southern destination on the sports map.”

Word is a new brick oven pizza and beer joint is coming to a renovated tire shop on South Main Street in Travelers Rest. Owners plan to call it “Sidewall Pizza Company” (of course) … Sports Planning Guide, in an article on Greenville titled “A Top Cycling City Offers Venues for All Sports. Read it at bit.ly/greenville-sports-planning.

UPSTATE BUSINESS JOURNAL

November 7, 2014

SOLU

TIONS

T RT

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NE E

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UBJ DEVELOPMENT Not just a bowling alley New owners of the former Handlebar say The Alley Greenville will be unique venue

Preliminary plans are coming

www.crewupstate.org

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together for The Alley Greenville, a music, bowling and entertainment venue slated for the former Handlebar property on Stone Avenue. But the new owners want to be clear: It will be much different from the Handlebar – which had gotten a bad rap from nearby residents with parking issues, loud music and tales of drunken patrons. “We definitely want to disassociate ourselves with that,” said one of the new owners, who asked not to be named. The Alley Greenville will be a family-friendly venue for all ages

with a myriad of games such as arcade games, ping pong, foosball and shuffleboard. The boutique bowling alley will have eight lanes. There will be a party and event space and a menu that includes appetizers, salads, sandwiches and burgers. The new venue will have live music with a variety of music genres a few nights a week, but will stop by midnight and will have appropriate audio and visual equipment to ensure sound quality. The new owners are also in the process of addressing parking. They have secured nearby property to accommodate more parking spaces, which will be shared with Universal Joint, and plan to offer valet parking.

Photos Provided

The Alley Greenville will be based on The Alley Charleston, a popular entertainment venue.

GRANITE

sjackson@communityjournals.com

GOLD

SHERRY JACKSON | STAFF

2014 CREW Upstate Sponsors

November 7, 2014 7/21/2014 2:05:08 PM

But the owners would rather customers not drive and embrace the walkable city that Greenville is becoming. There will be bike racks on site, and the owners are working with the city to possibly extend the trolley route to have a dedicated stop at their location. The new owners said that everything is still in the very early planning stages and they are “crafting our concept based on what we’re hearing from the city and the neighborhoods.” The Alley is based on the popular Alley in Charleston.

Neighborhood meetings were held this week and an application has been filed with the city’s zoning appeal board to allow the business to stay open until 2 a.m. That appeal will be heard at the Nov. 20 meeting.

UBJ ECONOMY Key S.C. indicators

Strong Greenville roots.

With more branches than ever.

From the October 2014 Economic Outlook report from the S.C. Department of Commerce

+1.5% INCOME

State Personal Income

increased to $177.3 billion in the second quarter of 2014. U.S. Bureau of Economic Analysis

-8.9%

South Carolina Stock Index

gave up 10.21 points in September, closing at 104.28 on the last trading day of the month. Bloomberg

+1%

Nonfarm Employment

increased by 18,600 non-seasonally adjusted jobs in September from the prior month. U.S. Bureau of Labor Statistics

+0.4%

Labor Force

EMPLOYMENT

increased by 8,964 to 2,182,781, seasonally-adjusted, in September. U.S. Bureau of Labor Statistics

+0.3%

Unemployment Rate

increase from 6.3 percent to 6.6 percent, seasonallyadjusted, for September.

Although we’ve changed our name from SCBT to South State Bank, when you visit any of our Greenville offices, you’ll see the same familiar faces and receive the same great service you’ve come to expect. Plus, with more than 135 banking locations to serve you in North Carolina, South Carolina and Georgia, you’ll enjoy a little extra added convenience as well.

U.S. Bureau of Labor Statistics

-0.2%

Manufacturing Weekly Hours

decreased by 0.1 hours to 41.3 hours in September from 41.4 hours in August. U.S. Bureau of Labor Statistics

-1.3%

Available Online Job Postings

decreased by 900 positions in September to a seasonally-adjusted 66,900 jop postings. The Conference Board Help Wanted Online Index

REAL ESTATE

-0.6%

Single-Family Home Sales Price

decreased by $1,001 to $164,699 in September. South Carolina Association of Realtors

+17.3%

Residential Building Permits

Increased by 373 permits from the previous month to 2,524 permits issued in September.

U.S. Census Bureau South Carolina Department of Commerce, South Carolina Economic Outlook

November 7, 2014

UPSTATE BUSINESS JOURNAL

UBJ CAPITAL Conference to present ways to grow local businesses BENJAMIN JEFFERS | STAFF

bjeffers@communityjournals.com How can South Carolina companies find ways to grow local capital? That’s the question national and local experts and financial leaders will answer at the upcoming SC Community Capital Conference. The conference, hosted by the South Carolina Community Capital Alliance (SCCCA), is targeted toward investors and financial professionals and advisors interested in increasing access to capital for small businesses and entrepreneurs, said Tammie Hoy Hawkins, advisor for SCCCA. The event will be at the Hyatt Regency Hotel on Nov. 18, 8:30 a.m.-4 p.m.

A free reception the night before will highlight the 33 percent South Carolina Community Economic Development Tax Credit available to businesses who invest in certified nonprofit, community-based development organizations. In the morning, the conference will focus on global strategies for growing capital, give an overview of current tools available in South Carolina and present future plans for the state, Hawkins said. She said the afternoon would focus on specific examples of companies that are successfully growing capital within South Carolina and other states. Legislators will also highlight policy strategies to help companies solicit investments.

Engage NOV

SC COMMUNITY CAPITAL CONFERENCE

Hyatt Regency Hotel Greenville; 8:30 a.m.–4 p.m. Register: sccommunitycapital.org The conference will help start the conversation of growing capital in the state and give a “snapshot of where we are and where we could be headed,” Hawkins said. As the state grows, she said, organizations need to “think strategically” about how they can invest their resources.

HOLIDAY CELEBRATIONS • WEDDING RECEPTIONS • CORPORATE EVENTS • REHEARSAL DINNERS

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UPSTATE BUSINESS JOURNAL

November 7, 2014

UBJ ECONOMIC DEVELOPMENT 5 finalists picked for Elevate Upstate grants SHERRY JACKSON | STAFF

sjackson@communityjournals.com Five finalists have been announced for the 2014 Hughes Investments Elevate Upstate Community Vibrancy Grants. Of the finalists, two winners will be announced at the Nov. 13 Ten at the Top Regional Forum. Each finalist will provide a brief overview at the event of their initiative before the two 2014 recipients are selected and announced. “The goal of the Elevate Upstate program is to get communities thinking about what types of initiatives or programs might help spark vibrancy within their area and then provide some seed money to get some of them started,” said Phil Hughes, president of Hughes Investments. “In the two years we have done this

program I have been amazed by the great ideas and passion of communities across the region to grow their vibrancy and sense of place. It was a real challenge to narrow the field to five finalists.” TATT said the finalists were chosen from a total of 22 applications submitted for the two grants available in 2014. Hughes Investments is contributing $10,000 per year to the program with two recipients each year receiving $5,000 to support a new vibrancy initiative in the Upstate. “It’s a small amount of money but it can have a huge impact on a community,” said Dean Hybl, executive director of TATT. Selection committee members include Phil Hughes; Betsy Fleming, president of Converse College; and Terence Roberts, mayor of Anderson.

FINALISTS City of Gaffney— Unforgettable Gaffney The project will create a coherent and engaging system for communicating the aesthetic and historic value of properties in two historic districts in the city. Let’s Keep Travelers Rest Beautiful—Before I Die Wall The concept has been implemented all over the world to encourage healthy discussions regarding dreams and hopes. Travelers Rest will construct several different walls to spark discussion and actions across the community. City of Clinton—Rhythm of the Rails An annual celebration to be held the last Saturday of April as a finale of the Celebrate Clinton Month.

Main Street Laurens—Finally Friday on the Square A monthly celebration of all things Laurens with live music hosted in the historic downtown. Pickens Revitalization Association— Pickens Main Street Challenge Designed to attract new businesses into downtown Pickens by providing reduced rent in currently vacant storefronts.

Engage NOV

TEN AT THE TOP FORUM

Greenville Marriott, 3–5 p.m.; Free Register: tenatthetop.org

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UPSTATE BUSINESS JOURNAL

UBJ MARKETING Erwin Penland hooks L.L. Bean win JENNIFER OLADIPO SENIOR BUSINEESS WRITER

joladipo@communityjournals.com Clothing retailer L.L. Bean tapped Erwin Penland to be its agency of record (AOR), the marketing company announced last week. Effective immediately, Erwin Penland will serve as L.L. Bean’s agency for digital, retail and creative, and will also assist with marketing strategy. New creative work is slated to launch this fall. Creative Officer Con Williamson and Chief Client Officer Joe Saracino will lead the account with Executive Creative Director John Cornette and Senior Vice President and Account Director Kat Shafer. “What we have here is the chance

to do amazing work for a classic American brand – how can we not be excited about the opportunity to work with L.L. Bean?” Williamson said in a statement. “The best part about this win is that this was a true all-agency effort. Everyone leaned in to play a part because we all love the brand. We couldn’t be happier about the road ahead.” “Erwin Penland’s roots align perfectly with the L.L. Bean brand,” L.L. Bean Chief Marketing Officer Steve Fuller said. “We’re excited to keep pushing boundaries with a digital creative strategy that keeps us innovating and fresh for our consumers, and we know Erwin Penland can help us do that.” The company already served as AOR for the restaurant chain

Denny’s Corp. This is the second big announcement for Erwin Penland this year. Microsoft’s multibillion-dollar ad and media business chose Interpublic Group (IPG) – of which

Erwin Penland parent Hill Holiday is part – to handle its advertising and global deployment to 207 countries. The total account revenue is estimated at around $100 million.

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November 7, 2014

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UBJ QUARTERLIES Regional Management Corp. (NYSE: RM) for Q3 2014 ended Sept. 30, 2014 THE NEWS: CEO Thomas Fortin resigned and left the board effective Oct. 30. Board director Michael Dunn serves as interim. Financials show big gains year-over-year, with revenue up 21.7 percent and net income up 80 percent, but a higher proportion of loans were lower credit quality.

STOCK QUOTE: “The direct mail campaigns for the fourth quarter have been adjusted to [address lower credit quality loan increase]. We have returned to what has worked in the past, which should substantially reduce the ongoing volatility of our direct mail delinquency rates, but as a result, we expect to see an elevated net charge-off rate for the next several months,” said Dunn in a statement. THE NUMBERS: Total third quarter 2014 revenue was $53.9 million, a 21.7 percent increase from the prior-year period. Samestore revenue growth for the third quarter of 2014 was 14.7 percent. Net income for the third quarter of 2014 was $1.4 million, an 80.7 percent decrease from the prior-year period. Diluted earnings per share were $0.11 based on a diluted share count of 12.9 million. Net charge-offs increased due to a change in how the company counted loans, rising to 10.3 percent, from 6.5 percent of average finance receivables compared to a year ago.

Denny’s Corp (Nasdaq: DENN)

KEMET (NYSE: KEM)

for Q3 2014 ended Sept. 24, 2014

for Q2 2015 ended Sept. 24, 2014

THE NEWS: Net income was up 18.7 percent compared to last year and earnings increased nearly 14 percent. The company continues its brand revitalization, to which it credits sales increases for the quarter.

STOCK QUOTE: “Our company restaurants achieved the highest quarterly same-store sales increase in the last eight years. Given the strength of our results and the solid start to the fourth quarter, we are positioned to produce our highest annual system-wide same-store sales growth since 2006,” said John Miller, president and CEO. “[O]ur newly launched Heritage remodel program contributed to our company restaurants’ ability to grow sustainable same-store guest traffic for a third consecutive quarter.”

STOCK QUOTE: “We are extremely pleased that the financial results for the quarter exceeded our expectations. Operating margins, influenced by our cost improvement actions and favorable product mix, improved 340 basis points compared to the prior quarter ended June 30, 2014, surpassing our forecast,” stated Per Loof, KEMET’s CEO.

THE NUMBERS: Net income rose $8.3 million from $7.0 million, an 18.7 percent increase compared with the prior year. Total operating revenue dipped slightly to $117.0 million from $117.3 million a year ago. Diluted earnings per share rose to $0.10 compared to $0.08. There are a total of 160 company restaurants, four fewer than last year. Company same-store sales increased 4.1 percent. Denny’s repurchased 1.2 million shares for $8 million, leaving 4.3 million authorized shares remaining.

THE NUMBERS: Net sales increased 3.3 percent to $215.3 million from 208.4 million for the quarter. The U.S. GAAP net income from continuing operations was $7.7 million, or $0.15 per diluted share for the quarter, compared to a net loss from continuing operations of $11.9 million or $0.26 loss per basic and diluted share for the quarter. Non-U.S. GAAP Adjusted net income improved to $3.5 million or $0.07 per diluted share compared to a non-U.S. GAAP Adjusted net loss of $4.6 million or $0.10 loss a year ago.

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UPSTATE BUSINESS JOURNAL

INNOVATE Movers, shakers and disruptors shaping our future

By JAMIE PATTERSON, director of student experience, Clemson MBA

4 lessons we all can learn from Lil Wayne As a teacher of MBA students as well as an MBA myself, I have made a practice of studying great business leaders for years. My favorite stories are the personal human experiences of great leaders – the different paths that CEOs and entrepreneurs have taken to achieve status and success. During my career development class, I include a segment that follows the story of a different leader each week, and I purposely save an unexpected public figure for last: hip-hop artist and rapper Lil Wayne. Because this choice is so outside the box, his is the story students seem to remember the most. I want them to learn that inspiration can come from anywhere – often from the places you least expect to find it. Sometimes the unlikeliest of public figures shows us a path to success we can emulate. Lil Wayne’s story illustrates four simple lessons we can follow to guarantee success in our own lives. STEP 1: FIND A MENTOR

Early in his career and at a very young age, Lil Wayne reached out to rapper/producer Bryan Williams for advice. The two hit it off and established a father-son relationship. To this day, Williams is still Wayne’s mentor and has helped coach and pave the way for some of his greatest successes. Mentorship works best when it happens organically. You can reach out to someone at a higher level in your field or in a similar functional area in a different field to get great advice and knowledge, but true mentorship occurs when the relationship is taken to new levels of trust and connection. Allow yourself to be vulnerable and try to develop a meaningful connection. We are lucky in Greenville to live in a business community with amazing people who are both willing and excited to mentor others. LESSON: Don’t be afraid to reach out to someone you are interested in learning from. Chances are it will be the start of a beautiful relationship. STEP 2: GET EXPERIENCE

Did you know Lil Wayne’s career did not truly take off until the release of his sixth solo album? It took nearly 12 years of putting in the work, perfecting his artistic process, and spending days in the studio before he became one of the biggest success stories in the music industry. It often appears that quick success happens all

UPSTATE BUSINESS JOURNAL

around us, and the media glorifies and perpetuates the myth of the “overnight success.” Most successful people put in years of work and effort before achieving success – it only appears to happen instantly to those on the outside. It’s important to maintain a realistic outlook. Let’s face facts: It is unlikely that someone with minimal years of work experience will graduate from college and immediately become the next CEO of Apple or land a six-figure salary out of the gate. Those successes will come, but only with time, a lot of hard work and perseverance. LESSON: Don’t expect your dream job to fall in your lap. You have to work for it. STEP 3: NETWORK – THEN NETWORK SOME MORE

A few years ago, you could not turn on the radio without hearing Lil Wayne. Whether it was a pop station, a rock station or a hip-hop station, he was everywhere. He networked through different genres and record labels to increase his visibility with new audiences, catapulting him to mass success. I cannot stress this step enough. You never know when or where you might meet someone who can help you with your job search or even make a decision to hire you. I have seen it happen so many times. Clemson MBA hosts numerous networking events throughout the semester, one of the best being the First Friday Speaker Series. This event is free to the public and includes an innovative speaker from the Greenville business community followed by a networking reception. I love to stand back and watch our students work the room. One particular story I love is of a student who made sure he was present at all of these events and actively working to meet new people at each opportunity. A hiring manager from a large company in the area was also present at many of these events and ended up hiring this student simply because he took notice of his ambition, discipline and drive. LESSON: Everyone you meet is important and

November 7, 2014

Photo Provided

can potentially impact your future. Sometimes the simple act of stepping outside of your comfort zone will lead to amazing opportunities. STEP 4: BECOME A MENTOR

After morphing into one of the most sought-after artists in the music industry, Lil Wayne has become a mentor to some of the best-selling up-and-coming artists in his field. He uses his experience to coach and mentor young musicians during their rise through the ranks of the music industry. Through his simple act of “paying it forward,” he has shepherded some of his mentees to great success. This is where it comes full circle. Once you reach the level of success that you are hoping for, please don’t forget to give back. Remember your mentor and everything that he or she did to help you become who you are. Now it’s your turn to help the next generation of business professionals by sharing your story, time and expertise. LESSON: No one achieves success in a vacuum. Remember those who helped you and do your part to help those coming up behind you. Never underestimate the importance of giving back. So as you can see, an unlikely source yields a treasure trove of good advice. Who would have thought? Now I’ll leave you with a couple of quotes straight from the man himself: “The more time you spend contemplating what you should have done … you lose valuable time planning what you can and will do.” “If I don’t do it now I’ma try it again. And when I do accomplish it I’ma try it again. I’m no quitter ’cause I’m a go getta.”

By BRIAN MURPHY, attorney, Stephenson & Murphy LLC

PROFESSIONAL Strategies for honing your professional skills

Protect the knowledge of key personnel When valued employees strike out on their own, how are former employers protected? Part 3 of a three-part series on employee competition In parts one and two of this series, we discussed the typical issues arising with employees who compete with former employers. Greenville’s growing reputation in the “knowledge economy” also has resulted in the growth of another type of dispute. A company’s true value may not be based as much on a brand or capital equipment as it is on the knowledge of key personnel. Their departure or efforts to work outside the organization raise additional legal questions.

FIDUCIARY DUTY AND OWNER/ EQUITY ISSUES Greenville is home to many startups and spinoff companies. As such, it also is becoming the center of substantial litigation over what key persons may do when striking out on their own. Greenville was one of the first counties in South Carolina to have a special Business Court, which regularly deals with such issues. When the person departing a business is an owner, officer or director of the company, a number of additional issues can arise. First, equity owners often have signed some form of operating agreement or shareholder agreement. Many of these contain restrictive covenants or provisions that affect his or her ability to compete. Second, such individuals also may have additional duties if they are deemed to be fiduciaries of the business. Whether someone is a fiduciary is often a contested and complex issue. An individual may be a fiduciary for some purposes (e.g., handling money), but not for all purposes. The level of duty owed also may vary depending on the status of the organization. Fiduciary duties are powerful, however, because they not only govern actions, they also create obligations to disclose material information, including business opportunities. Third, South Carolina law also imposes duties by statute on key people. The South Carolina Corporations Act, for example, requires that officers and directors discharge their duties in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he reasonably believes to be in the best interests of the corporation and its shareholders. In limited liability companies (LLCs), the duty a member owes differs depending on whether the company is member-managed or manager-managed. In a

member-managed company, the duties are more limited than in a corporation, but they do include the duty to refrain from competing with the company in the conduct of the company’s business. When an owner engages in transactions that benefit him or her in a manner more favorable than other owners, it often raises an issue of “self dealing.” Departing fiduciaries who compete may face claims of “usurping a corporate opportunity.” This claim requires a company to show that an actual opportunity for the organization existed that is within its line of business and that the business could have undertaken, but the individual improperly took the opportunity for himself or herself. Both of these claims also implicate the related fiduciary duty to disclose material information.

PRACTICAL STEPS AND AVOIDING COMMON MISTAKES After the employer or employee understands the basic legal issues involved in anticipated or actual competition, the second practical step is to plan carefully. From the employer perspective, it is important to know how to prevent improper competition or to stop it if it already has occurred. The employee needs a plan to transition to a new business or employer while limiting exposure. Although every situation is unique, some recurring issues discussed in this three-part series can provide general guidance for both employers and employees concerned about potential or actual competitive disputes:

For the employer

For the employee

Have clear policies regarding outside employment and restricting competition while employed.

Make sure you retain (outside of work) actual copies of all agreements you have signed with the employer.

Carefully craft any restrictive covenants to comply with the latest developments in South Carolina law.

Know the line between preparing to compete and actually competing and realize that any litigation between you and your employer is likely to turn up all communications you had before departure.

Limit restrictive covenants and trade secret agreements to areas, activities and information that are essential to protecting legitimate business interests.

Make sure any new employer is aware of any restrictive covenants and is willing and able to assume any risk to which it might expose you in your new position or, if you are starting your own business, make sure you understand the possible costs of defending a lawsuit even if you believe you are acting within your rights.

Make sure reasonable steps are employed to protect trade secrets, including the review of new technology usage that might eliminate earlier efforts put in place to protect data.

Keep good records of how you obtained and constructed new lists and information about or from customers; these will be very important in showing that the information was not taken from prior employment.

CONCLUSION Battles once waged in the market place in the days of Edison and Tesla are now fought in courtrooms. Taking practical precautions before a dispute ripens, or carefully considering strategy after one does, not only enhances the party’s ability to ultimately protect its interests, it can greatly reduce the cost and burden of any resulting litigation.

November 7, 2014

UPSTATE BUSINESS JOURNAL

By LAURA HAIGHT, president, portfoliosc.com

DIGITAL MAVEN The technical side of business

Is the debit card dead? Last week, for the fourth time this year, I

tion, cross-platform capability (using NFC or bar replaced my debit card. Despite being an early code readers), fraud monitoring, 24/7 fraud proadapter to – and staunch defender of – online tection. “Their problem is that they haven’t done payments, events of the past few years have shaken a good job of making people aware of them.” my resolve. Apple Pay does get high marks from analysts At a time when so little is safe, along comes a on both security and accessibility. The crowded whole new crop of mobile payment methods that field now includes other players like Current C, beg the question: If it’s not safe PayPal and Softcard (an offering to use my debit card, how safe can from mobile carriers AT&T, it be to carry this financial inforVerizon and T-Mobile). They are also dividing and conquering, mation around in my phone? splitting up retailers, locking them Nonetheless, the answer to the problem can’t be “back to cash” or in with costly contracts and exother retrenchment strategies. clusivity clauses. To be fully Then, the terrorists win. mobile, you may need three or A closer look at the hacks of the four apps on your phone (not all past year or two reveals that banks achieving the same level of secuand credit card companies, for the rity). Tap-to-pay could be just as most part, do a great job of promuch of a pain tecting your sensitive information. as digging Terry Garner, senior The big vulnerability in the system vice president of deposit through your is the merchant. Target, Home operations at Souther First purse or wallet Depot and other large retailers for the right are often where the hacks occur. credit card. There are five mobile payment options already But regardless of who wins launched or close to it that work with your the consumer vote, which will smartphone. While they may use different techdetermine where the retailers go, one thing binds every retailnologies and approaches, they are all similar in that they don’t give the merchant your credit card er together: the payment teror bank account info. From the get-go, this makes minal. This part is critically almost any of these systems a safer bet than important even if you don’t swiping your credit card at your supermarket or even have a smartphone, so listen up. big box retailer. The U.S. is the only major The iPhone 6 and 6 Plus come equipped with near-field communications (NFC), which enables industrialized country in the a two-way conversation between your phone and world still using magnetic other devices, such as payment terminals. That stripe cards. They are inherentlaid the groundwork for Apple Pay. This is being ly insecure and the root of every treated like new tech, but it’s actually been availmajor retailer hack of the last able on some Android phones for close to three years. Many Android OS phones have NFC chips and can take advantage of Google’s own mobile method, Google Wallet. In fact, Terry Garner, senior vice president of deposit operations at Southern First, thinks Google Wallet may be the best payment option that no one knows about. Garner has been digging into all these payment methods over the past several weeks to try and chart out the pros and cons of each. “Google didn’t make the big splash that Apple did. They’ve not done a great job in educating the consumer,” she notes. But they should have because they have a lot of advantages: tokeniza-

UPSTATE BUSINESS JOURNAL

November 7, 2014

five years. In a glacially slow implementation, the credit card industry agreed years ago to adopt the much more secure EMV cards. Finally, a hard deadline approaches and, not surprisingly, most U.S. merchants aren’t going to be ready. Garner says current research estimates fewer than 46 percent will have new terminals in place by October 2015. The terminals are not expensive, ranging from $150 to $275, but the risks of not being ready can be quite costly. Come next October, the liability for credit card losses will shift to the retailer or merchant if they have not upgraded to the new terminals. You probably have one EMV card already; more are coming as cards expire, and you can request one from your card issuer. But taking advantage of its protections (learn why this technology protects your data: goo.gl/7tRKrV) is dependent on the merchant. Based on current data, it seems like you’ve got less than a 50 percent chance of your favorite shop caring as much about your security as they do about your business. Vote with your feet! So is the debit card dead? Convenience comes with a price and requires a lot of vigilance. But Garner and others think the debit function is valuable and will be even more so if the technology infrastructure can help protect it. Next time: A comparison of the five new mobile payment efforts and why they are safer than the card in your wallet.

Creating Enterprise Value

IN TODAY’S MARKET, SMB OWNERS ARE SEARCHING FOR WAYS TO ACCELERATE THEIR VALUE IN AN OUTRIGHT SALE OR EXIT STRATEGY. HERE ARE THE TOP 5 SUGGESTIONS FOR CREATING ENTERPRISE VALUE FOR YOUR BUSINESS.

By Thornblade Capital

2. PARTNER UP FOR INDUSTRY COVERAGE & ENHANCED SERVICE OR PRODUCT OFFERINGS. Lately there has been a very active trend where Companies have started to reduce or mitigate their extreme Marketing budgets by partnering up with similar Companies. By partnering with similar product and service Companies within an Industry segment; the ability to partner and share marketing costs at tradeshows, conferences, etc… allows for a significant cost burden to be avoided. While at the same time, sharing access to industry databases and subscriptions is another line item that can be saved by partnering with the right industry partner. The one aspect you have to be very careful about and approach with extreme caution is the nature of confidentiality. On the front end, you will have to execute very strict and specific confidentiality agreements with your partner to ensure any information that is obtained amongst each organization is protected to the fullest.

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< DON’T BECOME DEPENDENT ON YOUR LARGEST AND MOST FAMILIAR CUSTOMER. As every business owner enjoys the growth in every business account it generates, the larger the growth, the more comfortable they tend to become in that account. By not having to renew that account as a customer every year, many times comes back to haunt a business owner when he or she is ready for an ultimate exit strategy or transition. Customer concentration is something that all major investors, both financial and strategic are always making note of. As the customer concentration percentage increases, the value for a business owner decreases. Enterprise Value is many times discounted as customer concentration appears and it is usually discounted higher as the percentage of concentration grows. 3. DON’T ENDANGER YOUR MANAGEMENT TEAM, EMPOWER THEM. Many business owners in today’s marketplace, continually keep their top management teams out of very strategic and transitional strategies that may keep the Company from achieving further value. Empowering a Management Team not only strengthens the ability for a Company to manage and integrate a transition from one owner to another, it also allows any outside investor or strategic player to place further value on the retention strategy of key employees, and providing for a more stable environment when the time comes for an exit strategy. Believe it or not, there is great value in Employment Agreements for top management teams and the ability to retain a stable transition. 4. PRODUCE & PRESENT MARKET KNOWLEDGE AND ANALYSIS. The term “industry leader and industry authority” often leads people to think of value that a presentation,

conference panel discussion, or whitepaper may offer when an executive from your organization produces or presents such information. Becoming an industry authority or a go to resource for opinions and analysis creates great value for the overall organization (brand recognition), but also creates further value in the human capital that manage the business day to day. This form of strategic marketing allows the market to recognize the Company and its industry authorities while at the same time, allowing the market to learn and benefit from the material. This creates an overall awareness that may not be implied in the financials, but it will create awareness and exposure prior to an exit strategy or value driving event for the Company. 5. MARKET AWARENESS & OUTREACH. It is never too early to understand what financial investors are interested in your market segment, or what strategic investors / competitors might be interested in

your business down the road. This point has to be carried out in a very distinct and thought out approach. While it is good to communicate with the market and understand who the players are, you do not want to send misinterpreted messages to the marketplace. By communicating with the investor community and strategic investors, you may want to be clear that you are not in the market to be sold at this time, rather just getting a handle on how the market is reacting to the industry, etc. This form of outreach also leads to indirect introductions that you would never expected. One investor introduces another to investor to you, simply because they were reminded by your outreach and follow up. Never hurts to stay on everyone’s radar, you never know when the right situation will present itself. Markets can change in an instant, and you always want to stay one step ahead by knowing all the players both financial and strategic that are all analyzing your market segment.

As every business owner enjoys the growth in every business account it generates, the larger the growth, the more comfortable they tend to become in that account. By not having to renew that account as a customer every year, many times comes back to haunt a business owner when he or she is ready for an ultimate exit strategy or transition. Customer concentration is something that all major investors, both financial and strategic are always making note of. As the customer concentration percentage increases, the value for a business owner decreases. Enterprise Value is many times discounted as customer concentration appears and it is usually discounted higher as the percentage of concentration grows.

220 North Main Street | Suite 521 | Greenville, SC 29601 | 864.551.1079

FEATURE STORY

The workplace mindfulness trend percolates in the Upstate—can it help you achieve happiness and success? JENNIFER OLADIPO | SENIOR BUSINESS WRITER joladipo@communityjournals.com The problems you’re having at work might be all in your head. At least, the solutions might be, so companies are spending more time and energy on bringing mindfulness practices to the working world. The trend has finally made its way to the Palmetto State, where new groups are forming and mindfulness teachers are turning their attention to business clients. Mindfulness is a form of meditation that’s meant to clear the clutter from the busy modern mind. It’s not about sitting eyes-closed with crossed legs twisted into the lotus position. Rather, it’s a way of approaching life, work, health and relationships, and it’s pretty much invisible. Practitioners describe mindfulness as a heightened level of awareness that allows practitioners to be better attuned to their own thoughts, resulting in a host of different benefits. “As physical exercise is for the body, mindfulness is for the mind and the brain,” said Eimer Kernan, mindfulness trainer with WellSmart Solutions. “Focus and concentration are a key to performance, and they can be trained.”

IN GOOD COMPANY Big business has embraced mindfulness for several years, reporting cost savings in addition to intangible benefits. Since 2010, 3,500 employees at Aetna have taken mindfulness-training programs. The company reported a 33 percent

UPSTATE BUSINESS JOURNAL

reduction in employee stress levels after one hour of mindful movement per week and health care savings of $2,000 on average per employee. Of 400 employees at General Mills who have participated, 80 percent said they now make better decisions and 89 percent of senior managers reported being better listeners after training. The mindfulness wave crested in Silicon Valley, where over 1,000 Google employees have taken part in the company’s trademarked “Search Inside Yourself” mindfulness training (now available to any company). The practice fostered important personal changes and contributes directly to Chris Brown’s professional success, said the president, chief investment officer and chief compliance officer at Family Legacy Inc. in Greenville. He has had a mindfulness practice for about half of his 15 years with the wealth management firm, even teaching mindfulness to others for a time. “My personality type is very aggressive and very Type A, and I just run people over. I’m used to being the smartest guy in the room, and I get what I want,” Brown said. “Mindfulness made me very much collaborative, seeking solutions with and around other people.” He believes a person’s state of mind is the greatest determinant of success, and meditation is the best way to become aware of it. The results touted by practitioners and researchers can >>

November 7, 2014

FEATURE STORY >> seem incongruous with the simplicity of the method. People find they often get a lot more done. NEW TO THE COMMUNITY Although Brown often encounters people with mental hang-ups that limit their businesses, he said mindfulness is still very much “outside of the box” in his field and in the local business community, so he doesn’t bring that up. Instead he brings mindfulness to his own role in helping people understand and attain their true desires. Others, however, are taking mindfulness to area businesses as an integral part of their own business models. Complete Life Coaching offers mindfulness training to business leaders and owners at their private executive retreats. WellSmart Solutions focuses specifically on mindfulness, and began shifting toward offering training to companies about a year ago. WellSmart was a vendor at the recent conference of the Society for Human Resource Managers, where Kernan said local professionals were aware of mindfulness. “Many HR directors came to our booth. They know about it and they’re curious about how they might bring it into their space,” Kernan said. “We’re finding that most people in key positions, whether it be admin or HR, do know of it and its growing importance in the work environment.” They often want to try a small pilot program before bringing it fully into the workplace, she said. Kernan said mindfulness finds its way into a company through many avenues: HR departments, company leaders or employees. In health care settings, it might be used on the clinical side to help patients until somebody recognizes potential benefits for staff as well. “Somewhere there’s usually a champion within the company,” Kernan said. At Google and Intel, it was the engineers. At Aetna, it was the CEO.

Engage NOV

MINDFULNESS AT WORK WORKSHOP

WellSmart Solutions

864-752-8082 info@wellsmartsolutions.com

4 MINDFULNESS PRACTICES TO TRY AT WORK 1. Listen intently to other people, shifting your attention from you to them. 2. Take a few minutes to do a body scan, noticing how your body feels from head to toe. 3. Take two minutes every hour to turn away from the computer screen and breathe deeply. 4. Pay full attention to your food at lunch, taking time to taste and consider every bite.

Photos by Greg Beckner

HOW IT FEELS “It’s like trying to tell somebody what an apple tastes like. You can tell them it’s sweet or crunchy, but you can’t really express it fully to another person,” Family Legacy Inc.’s Brown said. Kernan said she sells people on mindfulness by helping them have a discernible experience within the first five minutes of trying it out. She and others say part of the difficulty of introducing mindfulness practice to a new field is that it must be experienced to be understood. “One of the things that happens is people fall asleep,” Kernan said. “It’s the first time they’ve been in a truly relaxed state without being asleep.” But she maintains that relaxation, not tension, is

a human’s natural state. The training teaches people how to experience that type of tension release throughout the day, while they are awake and working. “If anything, it makes things more intense and more raw,” Brown said. “But that said, when you’re done, you’re done… you’ll simply be doing your best. Then you get up from that and go do something else to your very best.” Kernan said that most people are surprised, when they stop to pay attention, by how many thoughts are running through their minds. They are also surprised by how accessible mindfulness tools are. Kernan also emphasizes that mindfulness is not about “emptying” the mind. “Our minds are made to think just like our lungs are made to breathe. But it is about quieting the frenzied mind and being able to pay attention in the present moment.” Instructors agree that it’s something you can experience quickly, but real change takes time. “We are capable of delivering quick results with our [retreats] to jump-start people and teams once a mental commitment has been made. However, it still takes time for the real benefits to take hold and literally pay off for a company – about one year,” said Ingrid Sthare, co-owner of Complete Life Coaching.

A LITTLE WARM AND FUZZY Mindfulness teachers and practitioners say a mindfulness practice eventually leads to increased compassion for others, though it might be hard to say why that is. Although meditation is a part of religious traditions around the world, Kernan said mindfulness in the workplace has been a completely secular practice for 20 years. Still, there is an underlying understanding that mindfulness is something that transcends mere focus. Values are attached, such as non-judgmental awareness, acceptance, curiosity and kindness. “Is a sniper being mindful? Sure, they’re concentrating on one thing. But would we say they’re doing a mindfulness practice? No,” Kernan said. Brown said a longstanding mindfulness practice will eventually lead most people to find an undercurrent of kindness, which he says is just he best way to get things done. “I’m not saying it’s going to happen for you in 10 days, two weeks or six months, but eventually you’re going to wake up and say, ‘Oh, that’s real.’ It’s an odd yet very powerful realization.” Even if you don’t get there, he says, you’ll probably end up being nicer to your kids, and having better relationships at work.

November 7, 2014

UPSTATE BUSINESS JOURNAL

JUMPSTART

Photos by William Crooks

Companies blazing a trail in entrepreneurship

From left: Evan and Mell Proffitt; Stacey and DJ Doherty

Suiting kids up for the great outdoors Prodoh has a problem. The Greenville-based company, which makes outdoor apparel for kids, keeps doubling, tripling and quadrupling its inventory, and every year, it sells out within months. It’s a good problem to have for Prodoh, which was founded in 2010 by Evan and Mell Proffitt and DJ and Stacey Doherty. The Proffitts and Dohertys had been friends for years when Evan and DJ, avid fishermen, realized they couldn’t find fishing shirts and other outdoor gear sized for kids. In 2011, they made their first sales in two stores. Three years later, Prodoh is sold in more than 75 retailers in 11 states. Between 2012 and 2013, revenue doubled. In 2015, revenue projections show sales will be at least 10 times higher than in 2012. The success is exciting, but for these four friends and outdoor-lovers, it’s more than a numbers game. “We want to use it as a legacy of lessons for our kids,” DJ Doherty said. “That’s the main driver – instilling a passion for being outdoors and an active lifestyle.” WHAT ARE YOUR ROLES WITH PRODOH? DD: Evan and I are both in commercial con-

struction. I own Mavin Construction, a general

UPSTATE BUSINESS JOURNAL

Prodoh sees quick growth in kids’ apparel market LEIGH SAVAGE | CONTRIBUTOR

contractor, and Evan runs Bonitz Contracting in Greenville. Those are the jobs that provide for our families. This started out as a hobby but very quickly became a business, and that’s when we recruited the wives. SD: Mell and I do the management and most of the work of it. They were the idea behind it and the designers, and help plan where to go next, but we oversee the day-to-day activities. WHAT WAS YOUR REACTION WHEN YOUR HUSBANDS TOLD YOU ABOUT IT? MP: They called us, and I said “No.” I had just

had twin girls and Stacey had just had her daughter. It was not ideal timing for us. [Evan and Mell have daughters Josie and Grace, both 4. DJ and Stacey have son Dutch, 6, and daughters Lane, 4, and Anna Pearse, 8 weeks.]

November 7, 2014

HOW DID YOU GET STARTED? DD: Once we figured out there was no good

place to buy quality outdoor clothing for young kids, we focused on ages 12 months to 5 years. There are a lot of apparel companies in the Upstate, so we had folks help us learn about sizing, pattern making, and how to communicate with manufacturers. We spent over a year looking for a local manufacturer, but we couldn’t find what we needed. We had to look overseas. DESCRIBE YOUR PRODUCTS AND WHAT DIFFERENTIATES THEM IN THE MARKET. SD: First was the shirt. There was nothing out

there of this quality and in these sizes. It uses UPF 50-plus fabric. It’s versatile enough to wear playing outside or in the water. It’s not just to wear fishing, but for any activity outside. MP: It looks just like their dad’s shirt and has the wicking and sun-protective fabric. The “Get Back Here” loop on the back is handy when I’m crossing the street with twins. Now we have the shirt in four colors, the shorts in three colors, a dress and a belt. WERE THE SHIRTS AN IMMEDIATE SUCCESS? DD: We thought we needed to sell them to

JUMPSTART Companies blazing a trail in entrepreneurship

>> males, in fishing stores and where guys buy stuff. But we quickly learned that dads don’t buy their kids’ clothes, moms do. SD: We realized our niche was in boutiques that moms are going into, not bait-and-tackle shops like they had thought. HOW DID YOU GET INTO THE BOUTIQUES? SD: We started with Greenville stores, then

Columbia, then the coast. We just took weekends and started. DD: We had to learn how the retail industry buys apparel. We would just walk in and say, “Hey, do you want to buy this?” We wanted to sell wholesale and not retail ourselves because we don’t want the marketing burden. EP: We do sell online but that’s not our main focus. About 15 percent of our sales are Internet sales.

HOW ARE YOU PREPARING FOR THAT GROWTH? DD: The question is how we keep an appropri-

ate level of working capital to support the growth. We will continue to work with banks and consider investors. The growth is starting to tap out what we are able to commit personally. WHAT ARE THE NEXT STEPS FOR PRODOH? DD: We want to continue the spring and summer

lines but also add options for fall and winter so we are not restricted to half the year in sales. We also want to expand our footprint geographically to the Northeast. We want to grow the business and live our lives as families – at the beach, at the lake, in the woods. SD: We all grew up in the Greenville area, loving the outdoors. We want to make sure we give our kids those same experiences.

HOW DID YOU SHIFT FROM A SMALLER NUMBER OF STORES WITHIN DRIVING DISTANCE TO 75 STORES IN 11 STATES? DD: In 2012 we decided to conform a little more

to how the retail industry operates. So we went to Atlanta for AmericasMart, which is where retail stores buy wholesales products. That allowed us to expand our footprint and gave us a more wholesale, retail-minded focus. MP: Now we have a team of sales reps that are fabulous. DD: That is a key relationship we are developing. We can utilize an outside sales force to sell and get orders, and we can focus on manufacturing, cash flow and our ability to fulfill orders. WHAT WAS THE MOST CHALLENGING ASPECT OF BUILDING THE BUSINESS? SD: I would say getting into

WHERE TO FIND THEM Prodoh clothes are sold in more than 75 stores in 11 states. In South Carolina, they’re in: Baby Bloomers, Mount Pleasant Bootys Outdoors, Murrells Inlet The Carousel, Columbia Doodlebugs, Georgetown The Frilly Frog, Greenwood The Grey Goose, Greenville Haddrell’s Point Outfitters, Mount Pleasant and Charleston Isle of Palms Marina, Isle of Palms The Joggling Board, Pawleys Island Palmetto Trends, Andrews Porter’s, Florence Vann and Liv, Greenville

the stores. We would be Online store at prodoh.com excited if we got two out of 20 stores we visited. MP: Getting into the stores and manpower: managing orders, shipping. It definitely became a full-time job. DD: First it was developing solid relationships with a manufacturer. Second was convincing our wives to work for free! Our current obstacle is managing growth. We can’t keep up with it. Our footprint is growing and demand is growing.

Photo Provided

November 7, 2014

UPSTATE BUSINESS JOURNAL

MADE HERE Designed in the Upstate, found worldwide

Pedal power Inventor Nathan Scolari takes a stand on cycling with Zike

Photos by Greg Beckner

Zike founder and CEO Nathan Scolari with some of his company’s product line at the Greenville facility.

SHERRY JACKSON | STAFF sjackson@communityjournals.com As an avid inventor, Nathan Scolari has been sketching innovative ideas into a notebook since his childhood in Buffalo, N.Y. He came to Greenville in 1988 to attend Bob Jones University, but it wasn’t until he saw a commercial four and a half years ago for a product he had a similar design for that he decided to take the plunge into creating an invention-oriented company. “It was about the 20th thing on TV that I had 20

UPSTATE BUSINESS JOURNAL

seen that I had similar sketches for,” said Scolari. “Before, I was depressed when I saw them, but when you don’t have the resources and knowledge to move forward, it makes it tough. But that time I got really ticked off and decided to do something about it.”

EVERYTHING ON THE LINE Part bicycle, part stair-stepper, Scolari says he invented the Zike to get people outdoors and get a workout by blurring the line between having fun and exercising. He offers eight different Zike models for young kids to adults, with a target demographic of ages six to 13.

November 7, 2014

Scolari said a friend warned him only 2 percent of inventors make it, but he was determined. It took about three and a half years to get the Zike from concept to market, and Scolari laid it all on the line, using his own money and even selling his fallback plan – his landscaping business that he had built up to more than 30 employees over the years. Scolari said he was very careful about getting a quality product to market. “Our product is a bit over-engineered, but it’s very important that we have a product that people see as quality that we can build on,” he said. >>

MADE HERE Designed in the Upstate, found worldwide

FROM CONCEPT TO 3-D

Scolari is founder, CEO and largest shareholder of the 15-employee company, which has a five-member board made up of some of its 30 investors. Scolari said he wanted the best and brightest on his team, but also people he can trust. Two brothers from Croatia who worked in Scolari’s landscaping business are employees. George Reiter, a former GE vice president, is considered to be the company’s “experienced Einstein,” who garnered more than 100 patents for GE before he retired and came to work for Zike. While Zikes aren’t manufactured here yet, they are conceived in the company’s engineering facility in Greenville – an unmarked building off Rutherford Road. All designs, tooling and prototyping are done here, said Scolari. “We take Nate’s creative mind and turn it into 3-D,” agreed one of his engineers. The company is very protective of its intellectual property designs, and all prototyping for the Zikes is done at the Greenville facility.

Due to cost demands, the product is manufactured in China, where Scolari said it costs about 30 percent less to build than in the U.S. After about 18 trips back and forth to China, Zikes are currently made in Disney-approved factories, which Scolari said are held to the highest standards. Testing, quality control and any repairs for customers are done in Greenville. The Zike team works closely with its lawyers, McNair Law Firm, on patents. Scolari said he has about 60 patents he is either working on, are pending or already awarded. New inventions are kept in a locked room referred to as “Deep Six.” Scolari said the name is taken from the nautical term that means to dive deep to six fathoms. Zike’s Deep Six room is top secret and off limits to the public and even some Zike personnel, protecting the company’s most important ideas. The Deep Six room contains “bikes unlike any other bikes and scooters unlike any other scooters,” Scolari said.

GETTING ZIKED AH-HA MOMENT: 4 ½ years ago, after inventor Nate Scolari saw a TV ad for a product that he already had a similar sketch for in his invention sketchbook. GREATEST OBSTACLES SO FAR: “Characters of ill intent who are looking for a golden goose”; not being able to make the products in America. BEST-SELLING PRODUCTS: The Zike Z100 and Z150 TRADEMARKED PHRASE: “Get up, get out, get ZIKED®!” AVAILABLE AT: Zike.net, the Zike retail store at 1050 North Pleasantburg Drive, Greenville, select Toys R Us Stores, Walmart.com and Dicks.com and a few other retail and bicycle stores in the U.S. INVESTMENT OPPORTUNITY: Zike already has about 30 investors but is currently looking for additional investors and expects to close out investment opportunities by the end of this year.

AN UPSTATE TEST MARKET

The Zike store on North Pleasantburg Drive in Greenville.

Zike uses its retail location on Pleasantburg Drive as a test market, asking customers what colors they like best and what they like most about the products they’re trying out. “It’s a great way to get feedback,” said Scolari. “As we unfold products, we’ll first sell them in Greenville and then distribute nationally and internationally.” So far, Zikes are sold in just a few toy stores, novelty and bike stores across the country. This is the company’s second Christmas with the product, and they hope to sell around 30,000 this year. A new aggressive marketing campaign has just kicked into

high gear with a redesigned website and commercial ad spots running on Nickelodeon, Disney and Cartoon Network. Zike also just launched a video-editing contest through its Facebook page. The company also has its first shipments headed for a trial run in just over 100 Toys R Us stores this week. Scolari hopes this will open doors, and he expects to be in additional big-box stores by spring 2015. A trip to a toy fair in Cologne, Germany, this year may open new international opportunities. A new line coming out next year is slated to be made in Tennessee. “It was very important for us to have a made-in-the-USA product,” said Scolari. He hopes to one day move manufacturing of all Zikes to either to South Carolina or at least close by in the U.S. For more information, visit zike.net.

November 7, 2014

UPSTATE BUSINESS JOURNAL

ON THE MOVE Play-by-play of Upstate careers

ELECTED

HIRED

ELECTED

HIRED

Blanton Phillips

Lauren Newton

Joel Greenstein

Wade Shugart

Scott Shearouse

Named to the South Carolina Chamber of Commerce 2014-2015 board of directors. Phillips serves as president and CEO of Phillips Staffing. He serves on numerous boards, including the board of directors of GrandSouth Bank, SubAir Systems and Meridian Resources.

Named client services director of Flourish. Newton will be the firm’s team leader for its real estate, club and hospitality clients. She most recently served as the marketing and communications manager at The Reserve at Lake Keowee. She has more than 11 years of experience in private real estate marketing and club hospitality.

Named a fellow by the Human Factors and Ergonomics Society. The election by society members recognizes achievement, superior professional performance, exceptional contributions and personal service to the society. Greenstein, a six-time professor of the year, teaches industrial engineering at Clemson University.

Named executive vice president and senior lender for Southern First Banchares Inc., Columbia market. Shugart has over 35 years of banking experience, most recently as regional vice president for Wells Fargo Bank, and has also held positions with The South Financial Group, Synovus Corporation (NBSC) and C & S National Bank.

Named outside sales manager at EDTS. Shearouse will direct all outside sales and client development while contributing to the EDTS management team in customer service, marketing and strategic planning capacities. He has more than 20 years of business-to-business experience in sales management, customer service and support roles.

Clemson Center for Corporate Learning Mini MBA

“The Mini MBA is a short, concise and to-the-point curriculum that focuses you, so when you go back to your organization, you have skills to make an immediate impact.” —Michael A., Securities and Exchange Commission, Administrative Officer

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“Dr. Purvis is a superb instructor/communicator, extremely engaging and expert in material. This was an excellent class, all topics discussed were relevant to my job, my projects, and the exam.” —Kenya F., IT Service Manager

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November 7, 2014

ON THE MOVE Play-by-play of Upstate careers

ENGINEERING

HOSPITALITY

NONPROFIT

PRINTING

Seamon Whiteside’s Greenville office hired Christian Crear as project coordinator/civil engineer EIT, Daniel Merritt as a land planner and Stu Farmer as a project coordinator. Crear previously worked for the City of Greenville in the Environmental Engineering Department and Fisher & Arnold Inc. in civil site design. Merritt previously worked in the Mount Pleasant office of SW+. He has experience in landscape architecture, including residential design, regional planning and urban design and community revitalization projects. Farmer has 10 years of civil engineering and project management experience with Freeland & Associates Inc. He specialized in residential and commercial developments; including site layout and design, utility and infrastructure design, and stormwater management.

High Cotton hired Haydn Shaak as sous chef. Shaak has almost 10 years of professional culinary experience. He most recently served as the executive chef at Westminster Retirement, where he managed all culinary operations. He earned an associate degree in culinary arts from Greenville Technical College.

The Palmetto Trust for Historic Preservation hired Kelly Lang-Ramirez as director of resource development. Lang-Ramirez will design and deploy all aspects of resource development initiatives. She will oversee all fundraising and sustainability activities, communications and public relations. She will also assist in operational planning and policy development. Lang-Ramirez has been on management teams for national and statewide nonprofit organizations and spent time consulting with for-profit organizations.

Emediagroup hired Mike Schmitz and Jessie Lloyd as event media customer service representatives. They will be responsible for servicing endurance sports races in need of bib numbers, signage and marketing print needs. Schmitz has 12 years of experience in the print industry. Before joining emediagroup, he served as president and chief running officer of Electric City Printing. Lloyd has eight years of experience in the customer service and event management industries.

MARKETING/PR Jackson Motorsports Group added Glenn Taylor and A.J. Turner to its operations team. Together, Taylor and Turner will handle the daily operations of JMG’s two large warehouses. Their responsibilities include shipping and receiving all company and client assets, prepping for events and managing warehouse inventory. Taylor has 18 years of experience in automotive repair, performance and finishes. Turner’s experience includes processing and material handling for Benore Logistics Systems.

Courtney Mebane Professional Recruiter

CONTRIBUTE: New hires, promotions & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.

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November 7, 2014

UPSTATE BUSINESS JOURNAL

THE TAKEAWAY

By Megan Sherard, communications coordinator, Greenville Chamber

Notes from the best talks you missed

‘movie’ is one that employees will want to buy in to.” In his business practices he relies heavily on people and processes. Common processes “allow everyone to speak the same language.” When serving in a leadership role, he insists that communication is eminently important to motivating people. In order to effect change, transformational leaders must focus on five key skill sets:

Photo Provided

Lead at work, in the community and at home For Randy Dobbs, transformational leadership goes beyond the business setting Randy Dobbs is the CEO of Matrix Medical Network, providing strategic vision, leadership mentoring and organizational direction and guidance. Dobbs previously served as president and CEO of GE Capital, IT Solutions. Following his tenure with GE, he served as president and CEO for US Investigations Services Inc. and Philips Medical Systems, North America. He was also the senior operating executive with private equity firm Welsh, Carson, Anderson

WHAT: The Greenville Chamber’s Friday Forum Series WHEN: Oct. 24, 2014 WHERE: Embassy Suites Golf Resort & Conference Center FEATURE PRESENTATION: “Transformational Leadership in Your Business, Community and Life: A Game Changer!” with Randy Dobbs WHO WAS THERE: 200+ members of Greenville’s business community SPONSOR: Accident Fund

& Stowe in New York City. “I’m one of the least likely people to be here,” Dobbs says of his success. While working at a GE plant as an entry-level tool room apprentice at night, he attended Arkansas State University. “Every job seems easy now after doing four years of college with only four hours to sleep at night.” Dobbs eventually worked his way up to becoming the youngest GE plant manager at age 35, and is only one of two officers under Jack Welch to make officer at GE twice, after being fired and then rehired. During his second tenure, he was awarded the Turnaround Business of the Year award, a true testament to his perseverance. TRANSFORMING LEADERSHIP

To Dobbs, transformational leadership is about authenticity, transparency, never giving up and being civic-minded. In visualizing and internalizing business success, he suggests viewing it as a movie. “I know what the beginning looks like and what I want the end to look like,” he says. “It’s especially helpful if this

UPSTATE BUSINESS JOURNAL

November 7, 2014

1. Building a culture of change 2. Improving and growing the esprit de corps (spirit of the team) 3. Communicating clearly (with both issues and actions) 4. Changing financial results using process, metrics and quality relationships 5. Creating a cadre of future transformational leaders These five tips can best be applied to business models – however, transformational leadership should be applied to all aspects of life, including career, community and personal life. BUILDING SUCCESSFUL CAREERS

“Evaluate your career until you’re the leader you want to be,” Dobbs advises. The first step in using transformational leadership to benefit your career is to create a personal mission and value statement. Dobbs also suggests finding a job where you enjoy what you do, finding at least two strong and open mentors, surrounding yourself with smart people (and hiring people smarter than yourself), implementing self-awareness and remembering that careers are marathons. CREATING THRIVING COMMUNITIES

“You’re not a good business unless you’re good to your community,” says Dobbs. Just a few hours of service work sends a big message. Develop your community and seek out community leaders to ask, “How can I help?” Dobbs insists that the true value of the global GE brand was built one community at a time.

OVERCOMING PERSONAL OBSTACLES

“Doctors should be dealers of hope – and so should business leaders,” Dobbs says. Four years ago, Dobbs’ daughter Elizabeth was diagnosed with pancreatic cancer. Despite her illness, she fights to raise awareness and funds, and is now one of only 6 percent to surpass the fouryear mark. Dobbs has built a career of finding solutions to difficult problems, and has applied this model to his own personal crisis: Never give up. Look for more than one solution (when the first doctor provided no hope, he sought out other oncologists, refusing to believe there were no better alternatives). Find the best people and put them on your team. Take risks, don’t fail because you didn’t try. Pray a lot and cry a lot. Transformational leaders don many hats (psychologist, strategic thinker, communication experts, etc.), but at the very core, real leadership should be visible and applied to all aspects of life.

Engage NOV

GREENVILLE CHAMBER FRIDAY FORUM WITH JOE ERWIN, “WILL WORK FOR FOOD”

Embassy Suites, 670 Verdae Blvd., Greenville; 8-9:30 a.m. Details: greenvillechamber.org

NEW TO THE STREET The freshest faces on the business landscape

PHOTOS PROVIDED

2. Tea N’ Things recently opened at 127 N. Main St., Simpsonville. The store sells 70 different loose teas and also has a tea bar. Hours are MondayFriday, 10 a.m.-7 p.m.; Saturday, 9 a.m.-7 p.m.; closed Sunday. For more information, call 864-962-0051.

1. Greenville Heritage Federal Credit Union (GHFCU) recently opened a new location at 520 W. Washington St., Greenville. GHFCU has four branches in Greenville County. Hours are Monday-Wednesday, 8:30 a.m.-5 p.m.; Thursday-Friday, 8:30 a.m.-5:30 p.m. For more information, call 864-467-4160 or visit greenvilleheritage.com.

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864-363-6827 November 7, 2014

UPSTATE BUSINESS JOURNAL

SHERRY JACKSON | STAFF sjackson@communityjournals.com @SJackson_CJ

SQUARE FEET Real estate deals and developments across the region

Alabama developer plans west side apartment complex

Rendering provided by Group 4 Design Rear Elevation : C

Side Elevation : E

There’s no doubt that Greenville is booming,

as a “gateway for the city,” especially for those occupied units is “at an equilibrium but is not and each new week brings the announcement of coming in from Clemson, his alma mater. He said over the tipping point yet.” He also said that the a new development. This week is no different, the greatest amenity for Greenville Lofts is location and amenities can out-compete most with a new 215-unit apartment complex planned Greenville itself, with Main Street a short walk other recent community announcements. Rental rates are expected to be from $950 for on Greenville’s west side. away and direct access to the Swamp Rabbit Trail. a 550-square-foot studio to $1,800 a month for Situated at the corner of Westfield and Academy “This project will fit in well with expanding streets, the 7.31-acre property is tentatively called Greenville’s downtown and will help spur further a three-bedroom apartment. Apartments will Greenville Lofts. The name may change, though, development on the west side and near the new feature the standard granite countertops, stainless proposed park,” said Justin Hirsch, senior assoas they fine tune the plans for the project, said steel appliances and higher-end finishes. ciate with CBRE, who is representing Arlington Mark Stuermann, vice president of development This will be Arlington Properties’ second project Properties in the land purchase. for Birmingham, Ala.-based Arlington Properties. in Greenville, having just completed Tapestry at Hollingsworth Park at Verdae. Even though the new Mayberry Park the city When asked if he was concerned with the The company expects to break ground in the plans for Greenville’s west side has a ways to go amount of other apartment developments anRear Elevation : D in terms of funding, Arlington Properties is nounced recently, Stuermann said that his first or second quarter of 2015. Construction is company has done its due diligence and are confident the new public park, along with estabexpected to take 12-18 months. Arlington Properties, Inc. lished amenities such as the Greenville Health confident that the project is a “healthy one” and Greenville Multi-Family DRB Review that the number of new job announcements vs. System Swamp architecture RabbitI interiors Trail, the Kroc Center and PROJECT PARTNERS I planning I landscape elevations GROUP 11.03.2014 the A.J. Whittenburg Elementary School, are all DEVELOPER: Arlington Properties D E S I G N Sw great for millennials and baby boomers who are am ARCHITECT: Group 4 Design, Jacksonville, Fla. p looking to move downtown and want to rent Ra b bi instead of buy. tT ra The company has spent the past two years il working with the city to resolve flood plain and environmental concerns (there was a dry-cleaning business on the property at one point) and feel they are now ready to move forward. Plans were Gibb s St filed with the city’s Design Review Board this week and will be reviewed at the Dec. 4 meeting. The four-story development will be a mixture of studio, one-, two- and three-bedroom units. Proposed Approximately 50 of those will have direct-entry Mayberry garages. Shared amenities will include a workout Park facility, common area Wi-Fi with a cyber café, AJ Wh clubroom, billiard room, pet area, a swimming itte Swamp nb B pool with a large deck and a bike barn with irn urg Rabbit ie S Tra t workshop space to store bikes and keep them in il good repair. The Salvation Army “It’s been a little bit of luxury of having some Greenville Lofts Kroc Center space to work with,” said Stuermann. “Our vision for the property is to build on the success of nearby Kroc Center, the A.J. Whittenberg School and to Ma ybe rr y harken back to the mills that are part of GreenSt ville’s past with our architectural style.” Stuermann said that the location really serves

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UPSTATE BUSINESS JOURNAL

November 7, 2014

SQUARE FEET Real estate deals and developments across the region

Time flies for 8 O’Clock Superette property Former grocery will be bulldozed to make room for new luxury Alta Vista Place As Greenville continues to make way for new development, the former 8 O’Clock Superette property on Cleveland Street, near University Ridge and Sirrine Stadium, will be bulldozed on Monday to make way for new luxury residences. The 8 O’Clock Superette served the Alta Vista neighborhood as a full-service grocery store with an onsite deli and butcher shop from its inception in the 1960s until it closed in 2008. Judy and Billy Langley, the current owners of the property, purchased the Superette in 1972 after owning the Better Foods Market on East North Street. The property was also once home to a Krispy Kreme, a Piggly Wiggly grocery store in the 1930s, a gas station and variety of other businesses throughout the years. In its stead will be Alta Vista Place – 15 luxury condos in a four-story, Federal-style architectural building. Terry Birch with Renaissance Development and Greg Saad of Saad Resources LLC are the project’s developers. Birch said the condo development is expected to attract those who want downtown living but without the noise and parking challenges of being directly downtown. “As we developed the Ridgeland at the Park condos, we had a lot of inquiries for larger units,” said Birch. “There is a pent-up demand for something that has the look and feel and lives like a home.” The building will be similar in style to Renaissance Development’s Roswell Place in the Myers Park neighborhood in Charlotte. Ed Hickman, an architect at Charlotte-based Studio Fusion Architecture and Interiors, said the vintage historic brownstone look will blend well with the adjacent established neighborhood. “We worked very hard to have inspired architecture,” he said. Tall windows, recessed arches and a cornice at the top of the building are part of the Italianate, authentic Federal-style design that’s been “recreated in a modern flavor,” said Hickman. “We have worked with Greg and Terry on other downtown developments, and they bring a great deal of experience and success with them, especially on such an iconic property as the 8 O’Clock’s reminiscent location,” said David Crigler, vice president and COO of Berkshire Hathaway HomeServices C. Dan Joyner, Realtors, which will be marketing the property. “Alta Vista

University Square

8 O’Clock Superette Site

Sirrine Stadium

See an artist’s rendering of Alta Vista Place on this issue’s cover.

PROJECT PARTNERS DEVELOPERS: Renaissance Development and Saad Resources LLC ARCHITECT: Ed Hickman, Studio Fusion Architecture and Interiors in Charlotte MARKETED BY: Beth Crigler, Berkshire Hathaway HomeServices C. Dan Joyner, Realtors INTERIOR DESIGN: Katie Skoloff, In Site Design

Place will be unmatched in its quality of construction and will preserve the distinctive architecture of this historic area. With just a few units available, it will be highly sought after, now and in the future.” The building will have rusticated stone at the base and be constructed of concrete and steel to mitigate sound. Plans include two stories of underground parking with 37 spaces, two electric vehicle charging stations and two spaces for golf carts, as well an outdoor gated parking area for guests. Common areas will include a pet area, elevators and trash chutes. Priced from $800,000 to $1.5 million, the three-bedroom luxury residences will range from 2,900 to 4,400 square feet. “Residents won’t be compromising their standard of living,” Hickman said. Each residence will offer large outdoor terraces, dining rooms, dens, walk-in closets, 10-foot ceilings, high-end appliances, hand-scraped hardwood floors and coffered ceilings, along with its own assigned, secured storage unit. Penthouse units will have views of the Greenville skyline,

SEE FOR YOURSELF Demolition of existing buildings will be Monday, Nov. 10 at 11 a.m. Pre-sales/launch party will be at the construction site Thursday, Nov. 20, from 4-6 p.m. The public is invited to both events.

private parking garages and outdoor fireplaces. Construction will begin as soon as four to six of the residences are under contract –expected in the first quarter of 2015 – and take about 12 months to complete. Beth Crigler with Berkshire Hathaway HomeServices C. Dan Joyner, Realtors is the listing agent. For more information, visit altavistaplace.com.

November 7, 2014

UPSTATE BUSINESS JOURNAL

FINE PRINT Business briefs you can’t miss

Wells Fargo grants $243,500 to SC tech colleges Wells Fargo & Company announced a $243,000 grant to the SC Technical College System. The grants will support workforce development training programs, community development work and scholarships at 15 technical colleges throughout the state. Greenville Technical College received a grant to support its Quick Jobs With a Future program, which provides tuition support for students pursuing the skills needed to start in a career field that is currently hiring in Greenville County. Tri-County Technical College was given a grant in support of equipment for its career pathways programs. Spartanburg Community College received a grant

to support the production of a manufacturing training video, and Piedmont Technical College was given a grant for its workforce readiness workshops. Brian Rogers, business banking manager and president for the Upstate market, said in a release, “We share the belief that supporting education is one of the most important investments we can make in our nation’s future.”

Southern First announces public stock offering Southern First Bancshares Inc. announced its intention to begin a public offering of 1,200,000 shares of its common stock through a firm commitment underwritten offering. The company hopes to use the proceeds of the offering to repurchase all of its remaining outstanding shares of Series T Preferred Stock, and to use any remainder for general corporate purposes, including contributing a portion of the proceeds to Southern First Bank as additional capital to support organic growth. Sandler O’Neill + Partners L.P. will serve as the sole underwriter for the offering. Southern First plans to grant the underwriter a 30-day option to purchase from the company up to an additional 180,000 shares of common stock to cover over-allotments, if any.

Southern Connector increases revenues Officials with the Southern Connector released data showing traffic on the 16-mile toll road spanning Greenville County increased 9 percent in the third quarter of 2014 over the same period last year. The data shows 1,349,090 transactions, which was an increase of 111,946. In addition, revenue increased 9 percent to $1,994,050 collected when compared to the same time frame last year. For the first three quarters of 2014, traffic has increased 10.4 percent to 3,790,547, and revenue has increased 8.6 percent to $5,570,136.

USSE2 awarded $99 million contract

USSE2 O&M Services announces that its team has been awarded the Site Operations Services (SOS) contract for $99 million to provide support services to the Department of Energy’s National Energy Technology Laboratory (NETL). The project is a joint venture between Greenville’s US&S Inc. and E2 Consulting Engineers Inc., which has an office in Aiken, S.C. The project has a 24month base period with three 12-month option periods. The scope of work under the contract includes support services incorporating all operational and maintenance work necessary to maintain the facility infrastructure. USSE2 and a preselected major subcontractor, URS Corporation, will perform services to include site management; environment, safety, and health; property; grounds maintenance; janitorial; and mail room distribution. “Receiving this award is a testament to how two small businesses can come together, strengthen their capabilities and achieve great things,” said Richard Hagins, CEO of US&S.

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UPSTATE BUSINESS JOURNAL

November 7, 2014

Every Game

FINE PRINT Business briefs you can’t miss

F3 Engineering to establish HQ in Spartanburg

F3 Engineering, mission-critical technology provider, will locate its North American headquarters and manufacturing operations in Spartanburg County. The company is investing $3.9 million over three years, resulting in an expected 53 new jobs. Although many locations were considered for the facility, the F3 Engineering selection team concluded that Spartanburg offered a convenient location, excellent climate and good quality of life, according to a release. “We are excited about the relocation to South Carolina. It’s a business-friendly state, with not only a significant pool of employees, but also a convenient hub of technology and other support industries,” F3 founder and president Odilo Vazquez said in a release. The 25,000-square-foot facility is located in a historically underutilized business zone (HUBZone). Those interested in becoming a part of the F3 Engineering team may visit f3engineering.com/ career_opportunities.php.

Clemson, SCRA to virtually connect innovation centers Clemson Univer- Center, SCRA Innovation Centers and research university and SCRA have sities in the state. announced a new This commitment includes science and technology collaboration that advancements, special projects and support for faculty, will virtually connect staff and students, curriculum and operations of the innovation centers Watt Center. across the state, with “The immediate and comprehensive advancements to SCRA becoming the first South Carolina Founding In- multi-party communications that these studios will novation Partner for the university’s Watt Family Inno- provide will greatly contribute to and improve our state’s vation Center. ‘knowledge economy,’” said SCRA CEO Bill Mahoney. Through deployment of high-tech studios, the collab- “This collaboration will add value and users to the current oration will enable and expand ultra-high-speed, virtual health-care industry core that is using the SC LightRail connectivity capabilities of the Watt Center with business, high-speed research network.” academic, government and economic development entities across South Carolina and the nation, the university said in a statement. “We look forward to an increased level of collaboration with SCRA in order to foster innovation and bring new technologies to market,” said Clemson President James P. Clements. “This is a goal that Clemson shares with SCRA, and the Watt Family Innovation Center is designed as the place to make this happen.” As the center’s second Founding Innovation Partner, SCRA will provide $3 million for new cross-discipline operations and sustainability for supporting extended network and operations, in- From left: Clemson University President James cluding equipment to establish P. Clements, SCRA CEO Bill Mahoney, Charles virtual connectivity between Watt and Mike Watt the Watt Family Innovation Photo Provided

Clems n Every Game November 7, 2014

UPSTATE BUSINESS JOURNAL

PLANNER

SOCIAL SNAPSHOT

Events you should have on your calendar

Inside the Upstate’s networking and social scene

FRIDAY NOVEMBER 7 FIRST FRIDAY LUNCHEON Greer City Hall, 301 E. Poinsett St., Greer; 11:30 a.m.-1 p.m. Economic update from S.C. Secretary of Commerce Bobby Hitt REGISTER: bit.ly/greerfirst-friday

Photo Provided

GREATER GREENVILLE COMMERCIAL MARKET FORECAST

WEDNESDAY NOVEMBER 12 DIVERSITY CONNECTIONS LUNCHEON CityRange Steakhouse Grill, 774 Spartan Blvd., Spartanburg; noon-1:30 p.m. Monthly dutch-treat luncheon coordinated by Spartanburg Chamber’s Diversity Committee. REGISTER: bit.ly/spgdiversity

From left: Larry Callahan, CEO of Pattillo Construction; Ralph Settle, project manager at Johnson Development Associates; Neil Wilson, principal at RealtyLink; and Phillip Cox, senior vice president at Grandbridge Real Estate Capital address the real estate professionals gathered at last week for the 11th annual Greater Greenville Commercial Market Forecast. The Greater Greenville Association of Realtors, CCIM South Carolina Chapter and SIOR Carolinas Chapter hosted the event at the Poinsett Club in downtown Greenville.

IBRAINSTORM COMMUNITY MEETING

Photos by Greg Beckner

Hughes Main Library, 25 Heritage Green Place, Greenville; 5-6:30 p.m.

CITY COUNCIL TOURS VILLAGE Community Journals hosted a work session of Greenville City Council, as council members toured the Village of West Greenville and discussed economic development issues.

UPSTATE BUSINESS JOURNAL

November 7, 2014

Community involvement meeting to raise regional awareness and participation in iMAGINE Upstate REGISTER: imagineupstate.org GREEN DRINKS GREENVILLE Coffee Underground, 1 E. Coffee St., Greenville; 6:15 p.m. Social networking group sponsored by U.S. Green Building Council

FOR INFORMATION: usgbcsc.org/ site/?p=5004

LEARN TO SOAR YOUR BUSINESS WORKSHOP Spartanburg Community College, 1875 E. Main St., Duncan; 7:30 a.m.-noon Teaching entrepreneurs the essential basics of growing their businesses COST: Free REGISTER: PiedmontSCORE.org

THURSDAY NOVEMBER 13 TEN AT THE TOP

FRIDAY NOVEMBER 14 GREER DAY AT THE INLAND PORT Greer City Hall, 301 E. Poinsett St., Greer; 11:30 a.m.-2 p.m. Behind-the-scenes look at Greer’s Inland Port COST: $20, includes lunch REGISTER: bit.ly/ inland-port-day

MONDAY NOVEMBER 17 GSP INTERNATIONAL AIRPORT GOLF TOURNAMENT Greer Country & Golf Club Outing for businesses to advertise and network with community leaders

Marriott, 1 Parkway East, Greenville

COST: Team sponsor $400, individual players $100

TOPIC: Celebrating Successes: Great Things Happening Across the Upstate

FOR INFORMATION: katie@greerchamber. com

INFORMATION: tenatthetop.org

WOMEN’S BUSINESS NETWORK HOLIDAY PARTY Sapphire Creek, 401 N. Main St., Simpsonville; 6-7:30 p.m. One-stop shop for holiday preparations with tastings, fittings and tutorials COST: Chamber members $10, nonmembers $15 REGISTER: bit.ly/ womens-holiday-party

TUESDAY NOVEMBER 18 SC COMMUNITY CAPITAL CONFERENCE Hyatt Regency Hotel, 220 N. Main St., Greenville; 8:30 a.m.-4 p.m. Statewide conference of local and national partners to highlight innovations in investing capital locally. Tickets on sale through Nov. 13. COST: $50 REGISTER: bit.ly/ capital-conference

SNAPSHOT

Historic photograph and information provided by Jim Jordan

A quick look into the Upstate’s past

Birnie Hill, one of the last plantations in Greenville, was the home of Mary Birnie Lewis. It encompassed 87 acres and provided a familiar sight overlooking a broad vista on Augusta Road between Grove Road and West Faris Road. Pictured are Lewis’ daughter, May Lewis Alston, with four of her children, out for a pony and buggy ride about 1918. Behind is “the big house” as it appeared for more than 150 years.

In the 1940s, following the death of Mary Birnie Lewis, the property was sold to the Caine Company, and was developed into Plaza Apartments, Lewis Village Apartments and Lewis Plaza, one of the first urban shopping centers in South Carolina. Prior to the development, however, one of Lewis’ sons had the big house moved to a site facing the Plaza across Aberdeen Avenue (named by Lewis for her forebears’ home in Scotland) and the interior renovated. It became the Birne Apartments, and today it is the Lewis House Apartments.

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EVENTS:

MARKETING & ADVERTISING SALES REPRESENTATIVES Kristi Jennings, Donna Johnston, Annie Langston, Lindsay Oehman, Pam Putman, Maddy Varin, Emily Yepes

jackson Marketing Group’s 25 Years

1988

1997 Jackson Dawson launches motorsports Division 1993

1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.

with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.” In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.” Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning. The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet. Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s

Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff

Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com

Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.

Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during

Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood. He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit. After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980. In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he

learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage. In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar. “Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said. Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders

2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space

1998 1998 Jackson Dawson moves to task industrial Court

also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design. Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series. “In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.” Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept

2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003

2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running

him going and growing his business over the years. He is passionate about giving back and outreach to non-profits. The company was recently awarded the Community Foundation Spirit Award. The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family. As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business. “From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.” Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”

2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people

2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award

pro-bono/non-proFit Clients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School

DECEMBER: ENERGY What does S.C. need for the future?

David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board, Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board

November 1, 2013 Upstate bUsiness joUrnal 21

20 Upstate bUsiness joUrnal November 1, 2013

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NEXT WEEK: PERSONAL FINANCE Wealth management, financial fitness for entrepreneurs, tax planning

CoMMUnitY inVolVeMent & boarD positions lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member

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DECEMBER: LEADERSHIP Who’s building leaders in the community? What are questions leaders should never ask? What can we learn from the military, football coaches and university presidents? Got any thoughts? Care to contribute? Let us know at ideas@upstatebusinessjournal.com.

Copyright @2014 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal is published weekly by Community Journals LLC. P.O. Box 2266, Greenville, South Carolina, 29602. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $50. Postmaster: Send address changes to Upstate Business, P.O. Box 2266, Greenville, SC 29602. Printed in the USA.

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November 7, 2014

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