RISBJ V5 NO6

volume five issue six

Discover Island Rhode

GrowinG our

LocaL Food

Economy PLACES TO VISIT

WHEN IN SOUTH COUNTY

www.risbj.com | volume five issue six

1

Lowest-priced plans for small employers.

Ask your broker today!

1-855-321-9244 nhpri.org 2

RISBJ | rhode island small business journal

Make energy upgrades, avoid the unexpected, keep focused on your business.

To get started with a no-cost energy assessment, visit ngrid.com/smallbusiness or call 800-332-3333.

That’s business on the grid.

These programs are funded by the energy efficiency charge on all customers’ gas and electric bills, in accordance with Rhode Island law. Š2016 National Grid

www.risbj.com | volume five issue six

1

CERTIFIED PUBLIC ACCOUNTANTS SMALL BUSINESS SPECIALISTS

Join us at our FREE seminar!

Kitchen & Bath Trends July 21st, 6:00PM - 8:00PM 139 Jefferson Blvd., Warwick, RI

Learn the latest in kitchen and bath layouts, interior design styles and material options. Bring your questions and be prepared to be inspired!

LUCIER

CPA INC

We Guarantee Success Tax Services

Bookkeeping | Payroll Service Business Consulting

Pre-registration required

Register today at www.RIKB.com/events

401-463-1550 · info@RIKB.com

EMPLOYER DRIVEN EDUCATION The Center for Technology and Industry at New England Tech can assist your organization with customized technical training, making your company more efficient, productive and profitable. Graduate resumes and referrals are also available to employers by contacting our Career Services Office.

2

RISBJ | rhode island small business journal

1308 Atwood Avenue, Johnston RI 02919 401 946 1900 david@luciercpa.com

To learn more visit CTI.NEIT.EDU or call 401.739.5000 x3345

One New England Tech Blvd., East Greenwich, RI 02818-1258

“If you want to grow, you need to delegate, and we learned great strategies for doing just that.”

–ANGELICA RIVERA Co-Owner, Colmex Construction

TAKE YOUR BUSINESS TO THE NEXT LEVEL. The Goldman Sachs 10,000 Small Businesses program gives small business owners access to a practical business education, capital, and the network of support they need to grow.

Angelica, a graduate of the program, learned critical management, negotiation, and delegation skills that helped advance her business. After graduation, her company’s revenue increased over 8 times. And her success isn’t unique; 67% of our participants increased revenue only 6 months after graduating.

Learn more at 10KSBapply.com

www.risbj.com | volume five issue six

3

© 2016 Goldman Sachs. All rights reserved.

from the founder STEPPING OUT OF YOUR COMFORT ZONE

Are you comfortable with the day to day responsibilities of your business? I must admit that as crazy as things get at times, and as long as some days may be, I find a level of comfort coming into my office each day knowing what to expect and what unexpected tasks may come my way.

So is being comfortable a good thing? Often, we search for comfort in our lives, but as an entrepreneur, finding comfort might mean complacency, stagnation, or that we’re not taking enough risk. By definition, entrepreneurs are risk takers, so why not continue to take those calculated risks as we continue to grow?

Recently, I found myself in that “comfort zone.” While business has grown significantly over the past 8-10 months, and we’ve built an amazing team, I still felt like this growth was familiar. I began to explore what that next phase of growth looked like, and decided that building a local presence in the Boston area would be a logical progression.

So we decided that working from the city one day each week from a co-working space on Newbury Street would be a great place to start.

Here are four things I’ve learned from this experience: 1. Time to think – I’ve decided to take the train into the city on Thursdays. For anyone that has driven the morning commute from Providence to Boston, you know why! I use my handy MBTA and PayByPhone Parking apps to schedule my trip, and show up around 8:15 ready to go. With my headphones on and mobile office in my hand, I was amazed at all of the ideas that I had on the ride. Being disconnected from the office for the day allowed me to think of new ways to build the business rather than reacting to what goes on from day to day.

2. Make new connections – I setup at my desk around 9:30, catch-up on emails, settle in, and then I look at what

4

RISBJ | rhode island small business journal

events are going on in the area. My first day working from Boston, there was a lunch and learn at the co-working space.

I signed up and met several new people, many of whom had an immediate need for our services. I was also an active part of the discussion, which is a great start in building a sense of community in a new city. This definitely gave me plenty of new contacts to follow-up on.

3. Refine my skills – I was asked to present a workshop on Digital Marketing in the coming months to member of the shared office space. While I regularly speak on this topic locally, this opportunity gives me a new audience to present to, with different experience and different expectations. There is comfort in speaking at the same locations to a similar audience, but this opportunity gives me a chance to build a reputation as a subject matter expert in a new market, a challenge I gladly accept.

4. Bigger appearance – We LOVE being a Rhode Island company. This is where most of our clients are and it’s where all of our staff lives and works. As we’re approached by clients from other parts of New England, we’re finding that having two locations listed, as well as having a Boston presence, is making an impact. They say perception is reality, and in our case, that is certainly proving to be the case. New potential clients love our Boston address, even though they know all of our work is done from Johnston, Rhode Island.

So are you still working from within your comfort zone?

Maybe it’s time to take a chance and step outside. You never know what impact it could make on your business!

Gil Lantini Founder Ralph Coppolino Co-Founder Mike Casale Senior Designer Amanda Repose Managing Editor Marketing Lauren Bansbach Julia Cianciolo Alison Dupuis Samantha Gosper Nick Lovett Kelly Sobolewski Hannah Spain Marketing Assistant Kassandra Petrocelli Interns Georgio Elian Keegan Hernandez Yessenia Jaime Leeana Nito Laura Sprague Contributing Writers Michael Brito C. Alexander Chiulli Nellie M. Gorbea Lauren Hedde Peter W. Lang Jay Madden Gina M. Raimondo Dr. Ronald G. Shapiro Andrew Webb Kristen M. Whittle

www.facebook.com/risbj twitter.com/risbj 401 831 7779 info@risbj.com www.risbj.com

Minimize Business Interruption Trust Gentry For Your Next Commercial Move Your one stop moving and office installation specialist Gentry has the expertise to keep your business running smoothly. We guarantee that your belongings will be moved safely and efficiently with minimal business interruption.

Gentry’s commercial moving services include: • Professional packing and unpacking of office items • Safe and timely delivery of furniture and belongings • Over 40,000 square feet of warehousing and storage space • Complete office installation services for new systems or for reconfiguring existing furniture

For efficient commercial moving and office installation, call 401.233.2786 for a FREE ESTIMATE.

info@GentryMoving.com • GentryMoving.com

©MMXIII Rhode Island Small Business Journal

www.risbj.com | volume five issue six

5

UPCOMING EVENTS NETWORKING&WORKSHOPS

EVENT

22nd

24 th

Network at Noon at Arturo Joe’s 06/22/2016 Arturo Joe’s 3:30 11:45 am pm Seminar: Edging Your Competition 140 Point Judith Road,Out Narragansett Through Compliance Crowne Plaza Hotel, Warwick RI

Parlor Bar & Kitchen, Newport RI

06/28/2016 A Night at the Garden The 11:45 Hiltonam Garden Inn 6:00Network pm @ Noon 1 Thurber Street,Wakefield, Warwick RI Camden’s,

28th

26 th

23rd

25 th

World Trade Day 06/23/2016 Bryant University pm 7:306:00 am (All Day) yourSmithfield Website Securities Worries 1150Overcome Douglas Pike,

For More Event Information Visit

Forwww.risbj.com More Events Visit www.risbj.com 6

RISBJ | rhode island small business journal

st 1 1st

The RI Family Owned Manufacturing Consortium Polaris MEP 07/01/2016 8:308:00am am 315 Iron Horse Way, Providence First Friday Coffee at Westwind Financial Westwind Financial, Wakefield, First Friday Coffee at South CountyRIMuseum

South County Museum 8:0007/06/2016 am 1158:00am Strathmore Street, Narragansett

rd 3 6th

Corner Bakery Cafe, Cranston RI

JUNE JULY

Capital City Connection Networking

ISOCorner 9001:2015 Lunch & Cranston Learn RI Bakery Cafe, Polaris MEP 11:30 am 31507/13/2016 Iron Horse Way, Providence 6:00 pm 10 Week Planning Conference Capital City Business Connection Networking CWE Eastern MA, Boston, MA Corner Bakery Cafe 8:00 am 14007/21/2016 Hillside Road, Cranston 5:00 pm Brand Commitment Business After Hours hosted by Ocean State Sprout RI Waves 8:00 am Mountain Wakefield, RI 166Old Valley Street, Field, Providence

th th th th 10 15 th 11 7 8 23rd 21st 13th

Introduction to QuickBooks Course The 06/22/2016 Education Exchange 6:008:00 pm am 33 North Road, Wakefield Capital City Connection Networking

22nd

23 rd

MAY JUNE

07/23/2016 Family Affair Event 6:00 Elks pm Lodge Newport Fiesta 10:00 am Verde 2016 - Old Havana Nights 141Sweet Pelham Street, Newport Berry Farm, Middletown RI Business After Hours hosted by Munroe Realtors Munroe Realtors 5:00 pm 117 Main Street, Wakefield

contents

volume five issue six

INSIDE THIS ISSUE

15

8 Secretary of State Nellie M. Gorbea 9 A Message from Governor Gina M. Raimondo 10 Small Business News 17 Discover Rhode Island

17

18 Summer in the Ocean State 20 South County Tourism Council 22 Growing Rhode Island’s Food Economy

32

24 Learning Comes In Many Ways 28 Ready For RI’s New Cyber Security Law? 32 Professional Growth For The Entrepreneur

ON THE COVER volume five issue six

34 Personnel Practices 36 Keep Your Manufacturing Business Efficient 38 Reduce Healthcare Benefits Costs

20

Discover Island Rhode

GrowinG our

LocaL Food

Economy PLACES TO VISIT

WHEN IN SOUTH COUNTY

Featured Discover Rhode Island Growing Our Local Food Economy

35 www.risbj.com | volume five issue six

7

SECRETARY OF STATE | Nellie M. Gorbea What Clams Me About SMALL Manage A Remote Worker or Office SMALL BUSINESS BUSINESS || How Dear To Mom: A Taught Letter Home From ALeadership One Day Warrior

S

e c r e t a r y

O

f

S

t a t e

Nellie M. Gorbea

COMMUNICATING IMPROVEMENTS TO RHODE ISLAND BUSINESSES

by Secretary Of State Nellie M. Gorbea

As Secretary of State, I am committed to enhancing commerce and making it easier for folks to do business in Rhode Island. To do this, I tasked the Business Services Division at the Department of State to identify opportunities to improve the way we work with and communicate to businesses.

Newly-designed business forms:

For example, in November of 2015, we introduced newly formatted and interactive forms to make them easier to fill out by business owners. We made sure that we had frequent users preview our designs. Their feedback was critical in making sure the new forms were easy to use. Despite all our best efforts, we had an unanticipated problem once we launched the forms - when the new forms are repeatedly copied or faxed they become harder to read. Because our ultimate goal is to make things easier for businesses in Rhode Island, we quickly remedied this issue and have rereleased these forms for immediate use. (We ask that businesses discard any new business services forms with an edit date prior to May 2016 (05/2016).)

Staying up to date with the Department of State:

At the Department of State, we understand that any change in our

AS REQUIRED

BY LAW, WE WILL USE TRADITIONAL MAIL TO LET YOU KNOW OF UPDATES AND CHANGES 88

RISBJ | rhode island small RISBJ | rhode island smallbusiness businessjournal journal

operations needs to be communicated clearly and effectively to our business owners. Whether it’s changing a deadline or implementing a brand new process, it is our job to keep Rhode Island businesses informed and prepared.

As required by law, we will use traditional mail to let you know of updates and changes, but we also offer business owners the chance to receive these updates via e-mail through our Business Services E-mail Subscription Service.

When you join our Business Services E-mail Subscription Service, you can receive three different types of e-mail notifications with varying frequency.

A. General Information

Those who subscribe to this notification will receive the latest updates from the Department of State, including legislative updates, elections information, and latest news from our Divisions. This preference also provides updates on service outages and weather/holiday related office closures. You can expect updates on general information about six to twelve times a year.

B. Business Entity Record Updates

Subscribers to this notification will be updated when a filing has been posted or an update has been made to their entity. You will also receive formal notifications issued by our office.

Subscribing to this notification is a great way to verify our receipt of a filing and to protect against corporate identity theft.

C. Official Communications

This notification is our way to send important reminders on filing deadlines and reporting requirements. Most recently, we used this notification to alert business owners to the adjustments we made to filing forms located in the

Business Portal. You can expect Official Communications from us to come three to six times a year.

To sign up or manage your email subscription preferences, I encourage you to visit our Business Services Portal at sos.ri.gov/divisions/Business-Portal and click on the link “Email subscription service.”

Whether you are a new entrepreneur or an established small business, the Department of State’s Business Services Division is here to help. You can reach us by calling (401) 222-3040, emailing us at corporations@sos.ri.gov or visiting our office at 148 West River Street.

Please feel free to contact me directly with any thoughts or suggestions at secretarygorbea@sos.ri.gov or visit our website sos.ri.gov. We look forward to working with you to grow your business in Rhode Island.

Gina M. Raimondo | GOVERNOR

A Message From

Gina M. Raimondo

Early Childhood Education

by Governor Gina M. Raimondo

I spend a lot of my time talking to CEOs and business owners from other states, trying to convince them to come to Rhode Island. We talk about the corporate income tax and economic development incentives, but inevitably, they also want to know about the quality of life in our state. They ask: “What’s it like to be a Rhode Islander? How are the schools? If I move my family to Glocester, or Bristol, or Hopkinton, what will our lives be like?”

That’s one of the many reasons that improving education is a key priority for my administration. Businesses need to know they can grow in our state- they can stay here for a long time and access a big, local pool of skilled workers for generations.

My team and I have been working hard to make sure that education in Rhode Island gives our kids the skills they need for jobs that pay. Earlier this year, I unveiled a plan to offer computer science in all public schools by December 2017. And we’re continuing to offer college classes to high school students through the Prepare RI program. But we can do more.

Last year, my budget made all-day kindergarten universal across our state. This year, I proposed to boost funding for pre-kindergarten options by $1.2 million to keep the momentum going.

It’s never too early to give our youngest learners opportunities to thrive. I’ll never forget how much my own kids flourished because of preschool and full-day kindergarten. And as Governor, I believe that every Rhode Island kid deserves these same opportunities.

In April, I hosted the Governor’s Summit on Early Education and Care to talk about how we can better prepare our youngest learners. I brought together leaders from state government, education and the non-profit sector and presented my vision for our kids’ future.

Last year, my budget made all-day kindergarten universal across our state. This year, I proposed to boost funding for pre-kindergarten options by $1.2 million to keep the momentum going. With a total investment of $5.2 million would allow the Rhode Island Department of Education to add 12 sites this fall to the Rhode Island pre-kindergarten program, bringing the total number of sites to 29 and making the 2016-17 pre-kindergarten program the largest ever.

Early education is effective in ensuring that students achieve one of the most important developmental milestones: learning to read. Once students learn to read by the end of 3rd grade, they can start using reading to learn in other subjects, like math and science. And according to KIDS COUNT, they are less likely to have behavioral and social problems and more likely to graduate from high school.

Early education matters, and not just for students or parents.

Kids who are learning to read today will one day become part of the workforce. We can either pay now or pay later- we must invest in our kids early to save later. If Rhode Island wants to be competitive and create a large pool of skilled workers for years to come, we must invest in early education now.

www.risbj.com | volume five issue six

9

SMALL BUSINESS

NEWS

State and City of Providence Leaders To Celebrate Groundbreaking At Community Preparatory School

PROVIDENCE, RI – Community Preparatory School will hold a groundbreaking ceremony for the new 4,500 square foot facility and campus expansion on Friday, June10. The $5 million project is part of Community Prep School’s REACH! Comprehensive Campaign. The new building will include a first floor addition with formal entrance, reception area, administrative offices, student workspace, classroom and community room. Renovations to the existing school building are also included in the project along with the creation of a recreational field that will serve Community Prep, the SouthSide Elementary Charter School, and the neighboring community at large.

State, city and local business leaders join in the celebration marking the start of construction. Mayor Jorge Elorza and Councilwoman Mary Kay Harris, who has been instrumental in launching the school’s decades-long dream of having a campus in South Providence, are among those scheduled to speak.

10

RISBJ | rhode island small business journal

The groundbreaking ceremony will be held on the construction site at the school, located at 126 Somerset Street. Parking will be available.

About Community Preparatory School

Since 1984, Community Preparatory School has given motivated students in grades three through eight the opportunity to reach their dreams, regardless of family income.

Located in South Providence, the independent middle school fosters academic excellence in an economically and culturally diverse student body. Community Prep students score higher on standardized tests than every school district in the state. Its eighth graders are accepted to Classical High School at three times the citywide rate, and 97% go on to college preparatory high school programs. 94% of all students receive substantial financial aid. Current enrollment is 162 students. Visit www. communityprep.org for more info.

SMALL BUSINESS

NEWS

Leaders Gather for Topping Off Ceremony at Brown University School of Engineering

PROVIDENCE, RI – Led by school president Christina Paxson, members of the Brown University community joined together with the Shawmut Design and Construction project team and Providence Mayor Jorge Elorza for a “topping off” ceremony held on May 25. A beam signed by members of the Brown community was placed on the new 80,000 square-foot School of Engineering research building, which is located at 345 Brook Street in Providence, Rhode Island.

“We are thrilled to reach another major milestone with a great partner, Brown University,” said Ron Simoneau, Vice President of Shawmut Design and Construction. “We are proud to team up with Brown on a building that will surely transform the university into a research facility of the future.”

“This building will house the brightest engineering minds in the world,” Mayor Elorza said to the crowd gathered at the ceremony. “It will also add high-paying construction jobs to our city. And I want to personally thank those who work long and tirelessly to make this happen.”

Designed by Philadelphia-based architecture firm KieranTimerlake, the $88 million dollar project broke ground in November of 2015, and is scheduled for completion in early 2018. The building will include specialized facilities for nanoscale and biomedical engineering, along with two full floors of new lab space designed to foster collaborative and cross-disciplinary research.

The building features 22 cutting-edge research labs, including specialty labs for key areas of anticipated growth including micro/nano technology, bio-medical engineering, energy and the environment, information technology, and entrepreneurial innovation. The project will also create a new green space that will connect to the existing network of open spaces and tie the various engineering buildings together.

The project utilizes a full Integrated Project Delivery method, the first of its kind at Brown, and the first for a university lab in the nation. “It will create a culture of collaboration and innovation” said Larry Larson, Dean of Engineering. “It’s a model for the nation in the years ahead.”

The project will also adhere to the Brown University facility design and construction standards and will target at minimum LEED® Gold Certification with an energy and performance goal of 25% better than the minimum efficiency and performance criteria established in the Rhode Island-adopted International Energy Conservation Code.

Shawmut has completed over 70 projects on the campus including: John Hay Library; Katherine Moran Coleman Aquatics Center and the Nelson Fitness Center; Stephen Robert Campus Center; Perry and Marty Granoff Center for the Creative Arts, and most recently the new Applied Mathematics building.

About Shawmut Design and Construction

Shawmut Design and Construction is a national construction management firm that builds exciting projects for distinguished clients. As an ESOP (employee-owned) company, Shawmut’s main objective is delivering exceptional, personalized service to clients. Project teams take the time to truly listen to clients’ goals and concerns while implementing comprehensive tools and services. Shawmut’s unique business model allows project teams to better service clients by focusing their specialized expertise within one of the following areas: academic, commercial, corporate interiors, cultural and historic, healthcare and science, hotels, restaurants, retail, and sports venues. Shawmut has offices located in Boston, New York, Providence, New Haven, West Springfield, Las Vegas, Miami, and Los Angeles. For more information, please visit www.shawmut.com.

www.risbj.com | volume five issue six

11

SMALL BUSINESS

NEWS

Feel The Pow

B r a d l e y

H o s p i t a l ’ s

EAST PROVIDENCE, RI – As music filled the air at Rhodes on the Pawtuxet on Friday, June 3, setting the tone for what would be an inspirational night, Bradley Hospital welcomed more than 350 supporters to its 2016 Bravo, Bradley gala, Feel the Power of Music. Chaired by Marcy and Rick Granoff, the signature event raised a Bradley record $557,425 to advance the hospital’s pioneering pediatric mental health care, education and research.

Of the total raised, the event’s live auction Fund-a-Need generated $160,250 to help establish an outpatient clinic for young patients with autism and developmental disabilities.

“Every day at Bradley, we heal the hearts and minds of children and their families who often have nowhere else to turn for help, and so much of that work is possible thanks to the generosity of our donor community,” said Daniel J. Wall, President of Bradley Hospital. “As we mark the 85th

12

RISBJ | rhode island small business journal

A n n u a l

anniversary of Bradley opening its doors, it was philanthropy that fueled our creation and remains the fuel that keeps us on the leading edge of care, cures and hope—our sincerest thanks to everyone who made this event a success.”

With an overarching theme that captured music’s intrinsic ability to bring forth powerful emotions and connect people, guests were treated to a special musical performance by The 18 Wheelers and Sidy Maïga to kick-off the evening. After a moving video about a young boy’s challenges with mental illness, autism and other developmental disabilities, and the impact Bradley Hospital has had on his life, professional auctioneer Paul Zekos of The Zekos Group presented the event’s live auction and Fund-a-Need.

As Mr. Zekos introduced an impressive array of items, spirited bidding surrounded each with two experiences generating a level of friendly competition that resulted in additional

G

SMALL BUSINESS

NEWS

wer Of Music a l a ,

R a i s e s

R e c o r d

packages being added mid-auction. Three sets of guests bid $12,000 individually, each landing a7-night trip to Tuscany for four to stay in a Cortona Villa, while two in-home dinners for 10 prepared by Chef Ben Lloyd of The Salted Slate in Providence sold for $8,500 each. At the end of the auction, guests dined on dinner expertly prepared by Russell Morin Fine Catering and danced to the sounds of Steve Anthony & Persuasion.

“We are honored to have had the opportunity to chair such an important event and work alongside a committee whose unprecedented involvement and dedication paved the way for the record amount raised,” said Rick Granoff, who chaired this year’s Bravo, Bradley with his wife, Marcy.

“Helping children live life to the fullest is what Bradley is all about—this is a hospital near and dear to our hearts—and thanks to the community’s outpouring of support, more

$ 5 5 7 , 4 2 5

children and families will benefit from its life-changing care,” added Marcy. Bradley Hospital extends special thanks to title sponsors, Susan and David Brown, and Richard and Susanne Baccari and family; presenting sponsor, AECOM; leadership donor, Amica Companies Foundation; and platinum sponsors, Marcy and Rick Granoff, and Transdev.

About Bradley Hospital Founded in 1931, Bradley Hospital, located in East Providence, R.I., was the nation’s first psychiatric hospital devoted exclusively for children and adolescents. It remains a nationally recognized center for children’s mental health care, training and research. Bradley Hospital is a member of the Lifespan health system and is a teaching hospital for The Warren Alpert Medical School of Brown University. Follow us on Facebook (www.facebook.com/BradleyHospital) and on Twitter (@BradleyHospital).

www.risbj.com | volume five issue six

13

SMALL BUSINESS

NEWS

R.I. Single Family Home Sales Are Up Over 35 Percent Since April And Continue To Climb

WARWICK, RI – On the heels of record-breaking activity in the first quarter, the Rhode Island Association of Realtors reported that Rhode Island’s housing sales remained strong in April.

Association data portrays a 34.7 percent year-over-year gain in single family home sales activity last month. April’s median sales price rose 21.4 percent to $241,000.

While sales activity has skyrocketed during the early months of 2016, a slowdown in sales under contract in April showed signs of impending market restraint. Pending sales, which were up by more than 16 percent in March from the previous year, and nearly 19 percent in February, increased by just 2.5 percent in April. Pending sales are typically the most current indicator of the market in the months to come.

The number of single family homes for sale also fell by 9.9 percent from the prior year, a sign that sales could be restrained by insufficient supply in the future. Anticipation of a June interest rate hike by the Federal Reserve however, may drive more buyers into the market, helping to maintain sales activity.

14

RISBJ | rhode island small business journal

“We’ve seen a hyper-active market but there are a number of factors that could affect how long it will last. Rhode Island currently has a five-month supply of homes for sale, which, while slightly favoring sellers, remains nearly balanced between supply and demand. That could easily change however, depending on inventory, interest rates, and even the upcoming elections. My advice to buyers and sellers would be to take advantage of the market as it stands today. With rising homeowner equity and incredibly low mortgage rates, it’s a win-win for everyone,” said Arthur Yatsko, president of the Rhode Island Association of Realtors.

In other sectors of the market, condominium sales also showed significant gains with closed sales increasing 18.5 percent from 12 months earlier and median sales price rising 9.7 percent. Multi-family home sales fell 13.7 percent, though median price increased since last year, rising 9.9 percent from April, 2015 to $180,000. April marked the 16th consecutive month of year-over-year gains in median price in the investordriven, multi-family home market.

SMALL BUSINESS

NEWS

Unemployment Rate Drops to 5.3 Percent Rhode Island-Based Jobs Down 1,500 from March

PROVIDENCE, RI – The RI Department of Labor and Training announced today that the state’s seasonally adjusted unemployment rate for April 2016 was 5.3 percent, down one-tenth of a percentage point from the March rate of 5.4 percent. Over the year, the unemployment rate is down one percentage point from the April 2015 rate. This is the lowest rate since August 2007.

The U.S. unemployment rate was 5.0 percent in April 2016, unchanged from the previous month and down four-tenths of a percentage point over the year.

The number of unemployed RI residents—those residents classified as available for and actively seeking employment— was 29,600, down 300 from the March figure of 29,900. Over the year, the number of unemployed dropped by 5,200.

A total of 11,974 individuals collected Unemployment Insurance (UI) benefits in April 2016,* down from 12,898 a year ago. This month, UI claimants accounted for 45.1 percent of the total unemployed.

The number of employed RI residents was 523,300, up 500 from the March figure of 522,800. This is the highest employment level since August 2008. Over the year, the number of employed RI residents was up 2,000 from April 2015. The RI labor force totaled 552,800 in April 2016, unchanged from March 2016 but down 3,200 from April 2015.

Jobs Based In Rhode Island

Estimated nonfarm payroll in Rhode Island totaled 489,100 in April, reflecting a loss of 1,500 jobs from the revised March estimate of 490,600. Through 2016, a total of 600 jobs have been added to the local economy. The total number of jobs is up 5,100 from a year ago. The Professional & Businesses Services sector lost 1,200 jobs in April, due, in part, to less hiring within the sector which typically occurs during this time of year. Despite this steep loss, the number of jobs in Professional & Business Services is up 900 since the start of the year and is up 2,000 over the year.

Employment in the Construction sector fell by 700 in April, marking two consecutive months of job declines totaling 900 jobs. In all, there are 1,200 more jobs in the Construction sector than in April 2015.

Three employment sectors, Arts, Entertainment & Recreation; Educational Services and Financial Activities, each reported a loss of 300 jobs in April. Of these three sectors, employment in both Arts, Entertainment & Recreation and Financial Activities is up 100 over the year, while employment

in Educational Services is down 1,000 from April 2015. The Other Services sector was the only remaining sector to experience a job loss in April, shedding 100 jobs.

In April, the Manufacturing employment level was 42,200, reflecting a gain of 400 jobs from March. The number of jobs within this sector is up 1,000 over the year. Employment in both the Accommodation & Food Services and Government sectors was up 300 in April. Employment in Accommodation & Food Services is up 2,000 since April 2015, while Government employment is down 300. A gain of 200 jobs was reported in both the Retail Trade and the Wholesale Trade sectors, while employment remained unchanged in the Information, Health Care & Social Assistance, Mining & Logging and Transportation & Utilities sectors.

Manufacturing

In April 2016, production workers in the Manufacturing sector earned $18.27 per hour, up twelve cents from March 2016 and up fifty-three cents from April 2015. Manufacturing employees worked an average of 38.5 hours per week in April, up three-tenths of an hour from March but down an hour and three-tenths over the year. www.risbj.com | volume five issue six

15

This is your year.

Commercial Lending • Commercial Real Estate Lending • Equipment Financing • Commercial Lines of Credit • Preferred SBA Lender

navigantcu.org

· 401.233.4700

Healthy employees are happy employees.

No matter where your employees are in the world, you’ll find affordable and flexible plans, the largest dental network in the nation, and great customer service right in your backyard.

And that’s just good business.

To learn more, visit deltadentalri.com

16

RISBJ | rhode island small business journal

Discover Rhode Island | SMALL BUSINESS

DiscoverRhodeIsland

A Guide To Travel and Tourism in the Ocean State

42,160 JOBS

direct and indirect – were created by travel & tourism economic activity in 2009.

Tourism generates

$3.88 BILLION for the state’s economy each year.

If tourism didn’t exist, each RI household would pay

$1,349 MORE

in taxes to maintain the current level of state and local tax receipts.*

185

No Rhode Islander has more than a

30-MINUTE DRIVE

It takes only this many visitors to pay for one Rhode Island public school student for one year.*

to the ocean or Narragansett Bay.

EVERY 163 VISITORS creates a new RI job.*

* Acco rd i n g t o a 2 0 0 9 st u d y by G lo b a l I ns i g ht , I nc . www.risbj.com | volume five issue six

17

check ou Newport Mansions

Joe T., Age 44, Cranston

Newport Mansions Local Beaches

Kathleen M., Age 27, Boston

18

Roger Williams Park

Kathleen M., Age 27, Boston RISBJ | rhode island small business journal

ut what some of the locals had to say...

McCoy Stadium

Waterfire

Ted D., Age 44, Providence

Local Farmers Markets Angelo M., Age 25,Warwick www.risbj.com | volume five issue six

19

SMALL BUSINESS | South County Tourism Council

South County T The South County Tourism Council (SCTC) is a nonprofit organization dedicated bringing voice and visuals to inspiring visitors to vacation in the destination South County which includes the townships of Charlestown, Coventry, East Greenwich, Exeter, Hopkinton, Narragansett, North Kingstown, Richmond, South Kingstown, West Greenwich, and Westerly. We are a natural environment versus a built environment, positioned as a leisure travel destination.

Tourism is economic development and the vast majority of the tourism industry is supported by small businesses in the southern portion of Rhode Island. South County has some of the largest forests and agricultural area that spill down to 100 miles of coastline, featuring 20 public beaches, 15 museums, 17 public golf courses and endless hiking and biking trails.

Unlike tourism offices representing a large or mid-size city, many of our businesses heavily rely on vacationing visitors – especially in the high summer season – producing an integrated marketing campaign. South County Tourism Council is the official agency dedicated to marketing our hotels, businesses, non-profits, and beaches during this high season, as well as creating the only exclusive South County Bridal Show in January dedicated to South County bridal vendors – in addition to creating programs that are cross generational in the off season.

Much of our programs are based upon solid marketing research. Which in turn produce our award winning

publication South County Style a 100-page vacation guide; a year-long media advertising campaign directed to our leisure tourism market; targeted sales efforts; public relations strategy; participation in numerous trade shows; and a comprehensive website/social media campaigns. The SCTC also assists travel professionals including media, tour operators, and travel agents, aid in planning a meeting or corporate event, as well as providing information to the travelling public enjoy our destination. Additionally, the SCTC operates a Visitors Information Center, offering maps, brochures, and information of the humankind.

Overnight visitors spend twice the amount of money as day-trippers; inspirational marketing of the region as a vacation destination is our passion. SCTC is funded by the hotel tax in 1986 with the purpose of bringing visitors from beyond a 50 mile radius into our 449 square mile region, showcasing our range of accommodations, events and restaurants, in a naturally beautiful environment is our passion. Small businesses may be aware the programs run

by SCTC to market them do not require that they be dues paying members.

PLAC ES TO VISIT W HEN IN SOU TH COUNTY

The Ocean House: The Ocean House is a luxury Rhode Island hotel in Watch Hill. The Weekapaug Inn is the sister hotel to the Ocean House.

Ove day-trippers;

20

RISBJ | rhode island small business journal

South County Tourism Council | SMALL BUSINESS

Tourism Council Tomaquag Museum: A unique collection of over 20,000 cultural objects along with hundreds of thousands of pieces of archival materials focusing on the Native peoples of New England and Rhode Island.

Purple Shell: Traditional Wampum and Native Crafts Tilted Barn Brewery: Rhode Island’s first farm brewery,

shopper’s paradise and international bazaar. A Rhode Island landmark and National Treasure in Charlestown, RI since 1968. Open year round.

Visit southcountyri.com for more information.

brewing small batches of hand-crafted beer made with ingredients grown right on the farm.

Theatre by the Sea: Professional level live theatre presented in a Historic Barn Theatre.

Operating during the summer months Memorial Day thru Labor Day.

Matunuk Oyster Farm: Matunuck Oyster Farm supplies the Pond to Plate concept for the restaurant, Matunuck Oyster Bar, with fresh oysters harvested right off the waterfront patio in the pond.

The Fantastic Umbrella Factory: A 19th Century farmyard

ernight visitors spend twice the amount of money as ; inspirational marketing of the region as a vacation destination is our passion. www.risbj.com | volume five issue six

21

SMALL BUSINESS | Growing Rhode Island’s Food Economy

GROWING RHODE ISLA

Collaboration And Partnerships Between Local Agriculture, Educa

by Andrew Webb

“Career and technical schools taking part in cooking contests is a great way to collaborate” says Peter Fangiullo, whose Davies Career and Technical Center students won runner-up in a recent cook-off. “Students get bragging rights, a creative challenge and a taste of real-world experience.”

Few could argue that Rhode Island’s economy needs help.

Since eating will never move out of state, and with the trend for local, sustainable food production going strong, it just makes sense that the people who in one way or another provide the food we eat work together for mutual benefit and for building up a strong and stable industry.

“fully appreciate the real animal that goes into the dishes they will make rather than taking for granted a piece of meat wrapped in plastic.”

Student contestants from the CHARIHO Career and Technical Center created mushroom puff pastry. Chef instructor Linda Musch said “They used local mushrooms as well as the RhodyFresh cheese. Students were enthusiastically competitive and proud of their product at the cook-off. We’re also entering a similar cook-off based on locally harvested mussels in May.” Cooking contests are just one category of innovative thinking that can raise awareness of local food and bring potential partners together to build relationships.

Everything is in place. RI culinary schools supply top-shelf chefs.

RI restaurants hire the chefs who can then buy from RI farmers.

Add retail stores buying local foods. Consumer demand for locally sourced food is satisfied. As the consumer market builds, the industry can grow in equal measure. Dollars stay in RI.

“Buying local” and “sustainable food” define a national trend

Collaboration holds promise to bolster the industry

According to the National Restaurant Association, “Environmental sustainability remains among the hottest menu trends.” It also notes, “As the local sourcing trend continues at full speed in 2015, so does the hyper-local sub-trend. Beyond restaurant gardens, hyper-local is extending more fully into house-made, farm-branded and artisan items.”

In one recent example, the Rhode Island Dairy Farms Cooperative initiated a collaboration with its Artisan Cheese Cook-Off, a competition for Rhode Island high school culinary students. The competition brought together students from four RI career and technical high schools to craft dishes made with the cooperative’s Rhody Fresh brand cheese and dairy products.

The students in teacher Raymond Depot’s class at Warwick Area Career and Technical Center won the top prize for their gravy-and-cheese-smothered poutine dish, made with RI-grown potatoes as well as Rhody Fresh Butterkase cheese.

Depot says that educators can do their part to expose culinary students to tastes “outside of their neighborhoods. Once you do, they get excited.” Bringing students closer to the source of their food, is another way he helps students “go with the craft.” A field trip to a Cranston teacher’s micro farm, for example, is a way to

22

RISBJ | rhode island small business journal

Millennials in particular, are playing a big role in moving toward simple, more natural (and pronounceable) ingredients. Their concerns also extend to food sustainability and environmental soundness.

An example of the home-grown movement is the Matunuck Oyster Bar, which provides a successful model for farm-to-table eating. The highly popular restaurant in South Kingstown farms

Places like Portland, Maine have pro and Rhode Island could do this too with

Growing Rhode Island’s Food Economy | SMALL BUSINESS

AND’S FOOD ECONOMY

ation,

Restaurants And Food Producers Can Enhance A Good Thing

its own oysters and vegetables – and vacationers with New York, Connecticut and New Jersey license plates line up on the road along with locals waiting to get a table. Others, like Exeter’s Celestial Café feature menus with locally sourced fish, meat and vegetables – and a monthly dinner that is 100-percent Rhode Island foods. Clearly there is broad demand that RI producers can capitalize on.

RI Advantages

RI has a mix of potential partners in close proximity. Johnson & Wales of course, and regional career and technical high schools attract culinary students who are increasingly inspired by famous chefs and food shows on the Food Network and other TV channels. RI’s diverse restaurant/dining/hospitality industry hires many of those graduating chefs who, tuned into trends, can specify locally grown foods and enhance their establishment’s appeal in the process.

On the growing side, RI has more strength in its farming industry than it might seem. After greenhouse/nursery/turf operations, the larger segments include dairy products, aquaculture, corn, apples, vegetables, eggs and honey. About 1, 220 farms dot the state, producing on about 67,800 acres and with an average size of roughly 56 acres. According to the federal government’s Farmland Information Center, the market value of agricultural products sold in 2012 was over $59 million.

In addition to the eight farms of the Rhode Island Dairy Farms Cooperative and farm/restaurant operations like the Matunuck Oyster Bar, Carolyn’s Sakonnet Vineyard, orchards like Barden Family Orchard and retail farms like Shartner Farms have

omoted themselves as a food destination, h some marketing at the state level.

multiple markets, whether retailing on site, at farmers’ markets or selling wholesale to restaurants and food stores.

David Dadekian’s Eat Drink RI is a regional media outlet for area culinary happenings. Dadekian points to Rhode Island’s rich culinary landscape and the opportunity to develop tourism based on food. “Places like Portland, Maine have promoted themselves as a food destination, and Rhode Island could do this too with some marketing at the state level.”

Collaboration Potential

Whether growing, educating or serving, industry partners can work together to create a larger, more vibrant RI economic sector. There are some good examples.

Farm Fresh Rhode Island, a not-for-profit founded in 2004, promotes a stronger RI food system, and its Farm to School program is a good example of collaboration. In fact, RI public schools spent $175,000 on food from RI farmers in 2011 and 2012 in the form of produce and milk. Groups like this put partners together.

Retailers like Stop & Shop and Dave’s Market, and college dining services like those at Brown offer Rhody Fresh milk.

Brown’s commitment is part of its Community Harvest program, which partners with small farms that employ sustainable practices.

Numerous farmers’ markets around the state enable farmers to sell direct to the public, and are usually enabled by local governments providing space for farmers to set up.

While not exclusive to food, Buy Local RI is an example of a web-based local buying initiative – and a collaborative effort “between businesses, non-profit organizations, local government and the Rhode Island Foundation.” The organization’s directory-style website lists a wide range of local businesses.

Andrew Webb

awebb@andrewwebb.com

www.risbj.com | volume five issue six

23

MBE/DBE | Learning Comes In Many Ways…How Will You Learn Today?

Learning Comes H O W

by Michael Brito

When we as DBE’s & MBE’s consider our businesses and their futures we must also realize that educating ourselves and our staff is the foundation on which we must build success! Learning comes in many forms through many experiences and from many areas of our lives. Do we have a standard of learning? Do we have defined methods by which we learn? Do we ever really think about how we learn?

Here’s what I’ve figured out…

From my early days in the heavy & highway construction industry as an employee to my later days as an independent contractor and business owner I’ve always lived by the words of my Dad: “Mike, always be a student!” My dad was born in this country however still had troubling experiences through school as a very darkskinned, Cape Verdean boy coming through the depression, life wasn’t easy. He worked very hard learning through his own mistakes,

24

RISBJ | rhode island small business journal

W I L L

Y O U

working in a factory in Bristol, RI then building his construction company along side his Father. His own life showed him the true value a good education offered and how those possessing such were afforded better opportunities.

He was driven by his passion and pushed himself to go beyond his peers. Yes, it was a tough time back then when learning came from doing and doing may or may not have been the only option for our minority brothers and sisters.

Things aren’t the same today! Now we must realize that we as minority business owners have far more opportunities and educational portals than ever before. It’s time to push away from generational standards that have held prior companies form realizing their full potential.

Being Rhode Island residents and minority & disadvantage business owners we now see a clearer picture for our companies.

As entrepreneurs we need to be aware of the wide range of programs now available

s

Learning Comes In Many Ways…How Will You Learn Today? | MBE/DBE

In Many Ways L E A R N

T O D A Y ?

to us as well as our staff. Select classes, seminars, twilight meetings, webinars, industry sponsored events, materials supplier training, trade shows and much more! We can realize a better tomorrow based upon the decisions we make today.

My Dad was savvy enough to know that times change so what worked for his father and himself wouldn’t necessarily be the right answer for his employees or family so he showed by example that without continued education there is little chance

Now we must realize that we as minority business owners have far more opportunities and educational portals than ever before.

of continued success! Now we may have to work twice as hard to get and stay ahead and we know that finding these opportunities takes perseverance, diligence and commitment.

If your business is a member of any specific agency, union or trade association chances are there is some form of training available and it should be on-going. If you don’t belong to any trade or industry association, join one or two today. Reap the benefits of membership and search out all resources!

It is our responsibility as certified DBE’s & MBE’s to provide educational opportunities for our employees thereby providing a better way for us all. This publication is a dedicated tool focused on the small business community, use its resources well, the website is loaded with events, archive articles and various advertisers offering enrichment opportunities. Don’t be fooled by your need to be seen as the know-it-all, seek out men and woman that can be advisors, mentors and leaders on your team. Remember to question everything and always look for better ways to run your business. The Stone Age didn’t end because we ran out of stones…it ended because we found a better way! Forever a student!

Michael Brito DBE Account Manger, Mission-360, Turino Group, mbrito@turinogroup.com

www.risbj.com | volume five issue six

25

WE’RE LIKE A GPS FOR GETTING YOUR BUSINESS TO THE RIGHT PLACE. Just Right Commercial Loans from BayCoast Bank.

Joe Sheehan 401-274-2106

Whatever your reasons for needing a commercial loan, our Providence team of lenders can help you. With financial advice, and smart business insights, we’re always accessible and ready to listen. Our loan decisions are made locally, so you don’t have to wait long to find out if you’ve been approved.

Call Joe Sheehan or Mike Paiva today or call 401-273-0475. The Providence Commercial Loan Office is located at 10 Dorrance Street, Suite 101B. BayCoastBank.com

Mike Paiva 401-273-2539

26

RISBJ | rhode island small business journal

Member FDIC Member DIF

®

TRUST MATTERS. estate planning

tax law

medicaid planning

trust litigation

probate administration

For decades, individuals, families and businesses have relied upon Attorneys Bernard A. Jackvony and Gene M. Carlino for their trusted representation and advocacy in all areas of estate planning and administration, taxation and litigation. When you need sophisticated understanding of all the legal and financial aspects of these areas of the law, you can count on our firm’s team of experienced attorneys and resources to give you the peace of mind and confidence you deserve.

PANNONE LOPES DEVEREAUX & PANNONE WEST LLC LOPES DEVEREAUX & WEST

gene m. carlino

PLDW counselors at law

LLC

bernard A. jackvony

Supporting clients who travel between Rhode Island and Florida, call 401-824-5100. Our offices are located where you are: PLDW has offices in New England, New York and Florida. Our primary practice areas include corporate and business law, nonprofit law, health care law, municipal infrastructure, government relations and legislative strategies, employment law, special masterships, criminal defense, civil litigation, estate planning, probate and trust litigation, and real estate development and commercial lending. For more information, visit www.pldw.com.

317 Iron Horse Way, Suite 301 Providence, RI 02908 Wells Fargo Plaza 925 South Federal Highway, Suite 715 Boca Raton, FL 33432

$10 Gift CertifiCate For Havana Cigar Club

(Limit One Per Customer. Must Present Ad For Discount)

From Your Friends at RISBJ

1111 Lincoln Road, 4th Floor Miami Beach, FL 33139

• Full Bar for Both The Public & Members • Largest Walk-in Humidor in the State • Fresh Air Cycles 14x Per Hour • Function Room • Card Tournaments, Cigar Nights, Scotch Tastings and Much More

www.risbj.com | volume five issue six

27

SMALL BUSINESS | Is Your Business Ready For RI’s New Cyber Security Law?

I

S

Y

O

U

R

B

U

S

I

N

by Jay Madden

Attacks Hit Small Employers Big

According to a 2015 report from the Insurance Information Institute, cyber hacks increased by an estimated 27.5% from 2014 to 2015, with perpetrators coming from everywhere – politically-motivated criminal across the globe to local disgruntled employees.

While most people have heard about highly-publicized attacks targeted at big companies like retailers and health insurers, large corporations aren’t the only ones who are at risk. Increasingly small- to medium-sized business are the biggest targets. In fact, according to a recent Data Breach Investigations Report by Verizon, 72% of all attacks are now perpetrated on small businesses.

What makes these organizations most vulnerable?

• • • • • • •

Lack of time and/or budget to implement adequate security solutions No dedicated IT staff Lack of awareness Belief that they’re too inconsequential, even though they often serve as “backdoors” for cyber criminals into larger and more extended systems Lack of proper employee training Failure to update technology systems, policies and procedures Outsourcing to unqualified vendors

The Growing Costs of the Growing Risk

Cybercrime costs the global economy an estimated $445 billion annually – a figure expected to reach $575 billion within the decade. Since all industries are prone to attack, every business – even small ones – risks significant expenses if a breach occurs, including: • • • • • • • •

Legal liability to the injured individual or individuals Defense costs of regulatory actions resulting from a breach Fines and penalties dues to a breach Loss of income and revenue Business continuity expenses and costs Destruction of electronic data and equipment Extortion and ransom threats Breach management expenses (including forensics, notification costs, credit monitoring) • Brand and reputational damage As a result of these unanticipated costs, according to the National Cyber Security Alliance, 60% of all small businesses are forced to close their doors within six months of a data breach.

RI’s New Legal Requirements

In response to the alarming increase and the serious nature of cybercrime, Rhode Island’s new Identity Theft Protection Act of 2015 requires that businesses, individuals, and state and municipal agencies who store, collect, process, maintain, acquire, use, own or license personal information – meaning a name and one other piece of identifying data such as Social Security number, driver’s license number or even email with required access code – take a number of actions to protect the data.

Specifically, those subject to the law must: •

Implement a risk-based information security program that contains reasonable security procedures and practices to protect the personal information from unauthorized access, use, modification, destruction or disclosure RISBJ | rhode island small businessretention journal 28 • Implement a written document policy

While most pe about highly-publicize at big companies like r insurers, large corpo only ones who

Is Your Business Ready For RI’s New Cyber Security Law? | SMALL BUSINESS

E

S

S

R

E

eople have heard ed attacks targeted retailers and health orations aren’t the o are at risk.

A

D

Y

•

•

F

O

R

Secure written contracts with any third party to whom it discloses the personal information of Rhode Island residents ensuring that the third party has implemented and maintains reasonable security procedures and practices to protect the information Notify individuals if it suffers a data breach within forty-five (45) days of confirmation of the breach – one of the shortest notification periods among the various state data breach laws – and notify the Rhode Island Attorney General if the breach involves more than 500 individuals

Penalties for violation of the Act are equally onerous, potentially including a civil suit by the Attorney General and $100 fine per record for reckless violation of the Act and $200 for knowing or willful violation – with no cap.

Steps to Compliance

To avoid the fallout of an attack and ensure compliance with Rhode Island’s new law, it’s critical small businesses take several necessary steps to combat the growing threat of a breach. Consider the following actions to prepare: • • •

Involve all levels of the organization in creating or enhancing a written information security program to protect personal information that’s appropriate for the organization and the type of information it collects.

Establish a policy for destroying personal information securely after a reasonable retention period, such as by shredding, pulverization, incineration, or erasure.

Create a model form for a notice that meets the Act’s requirements in case a breach occurs. Provide fields that will allow your company to describe: 1. the incident, how it happened and the number of individuals impacted; 2 the type of information involved; 3 the date(s) of the breach; and 4 when it was discovered. Also, include remediation services that will be offered along with contact information, as well as how a consumer can file or obtain a police report, request a credit freeze and any required fees that may be required by consumer reporting agencies.

Insure For Added Protection

In addition to meeting the state’s legal requirements, small businesses can take additional steps to help prevent catastrophic losses from an attack by performing a threat assessment to understand its potential vulnerabilities.

Once a company has a picture of its security exposures, it can transfer much of the risk with an insurance policy tailored to its specific business risks that can mitigate the costs and losses attributable to a cyber event. While many traditional insurance policies don’t offer adequate levels of protection or exclude these types of occurrences, in response to the growing threat, many insurers now offer stand-alone cyber-specific policies. In fact, over sixty different insurance carriers now underwrite some form of cyber insurance that can cover: • • •

Legal liability (to the injured individual or individuals) Loss of income and revenue Defense costs of regulatory actions resulting from a breach • Fines and penalties dues to a breach • Extortion and ransom threats • Breach management expenses (including forensics, notification costs, credit monitoring) As cybercrime continues to evolve, so will a small business’ risk. While Rhode Island’s new law is designed to protect consumers against the threat, companies need to take precautions to protect themselves.

Because their survival may very well depend on it.

Jay Madden

Director of Brokerage Practice Group, The Hilb Group www.risbj.com | volume five issue six 29

Promises Made. Promises Kept.

Sierra Pacific Mortgage We’re here when you need us.

Local Resources | Advanced Technology & Communications Trusted Industry Leader for Over 29 Years Local Underwriting | Premier Customer Service

C a l l U s To d a y A t

401.270.1740

Rhode Island Licensed Lender and Broker 20072185LB & 20072187LL. Company NMLS ID 1788. Branch NMLS ID: 289053

30

1 4 1 7 D o u g l a s Av e n u e , 2 n d F l o o r, North Providence, RI 02904

RISBJ | rhode island small business journal

SomerSet Bookkeeping, inc.

S erving Se m aSS

and

r hode i Sland S ince 2003

OnSite/Offsite Services Hourly/Monthly Rates Over 35 Years Accounting Experience Kathy Kissling, President

Jorge Vicencio, Accountant

checkingfigures@yahoo.com

jorgevic@comcast.net

508-728-0991

508-717-7296

host the

Best Party Ever!

It’s always party season at Lang’s Bowlarama! We have it all - pristine bowling lanes for healthy competition, great food, full bar, and unlimited fun!

Call us today and host the Best Party Ever!

Lang’s Bowlarama

Good times since 1960

www.risbj.com | volume five issue six

31

PROFESSIONAL GROWTH | Professional Growth For The Entrepreneur

Professional Growth F Achieving

Business

by Dr. Ronald G. Shapiro, PhD

As part of a series focusing on Rhode Island small businesses whose mission includes helping organizations, their owners and employees grow throughout 2016, we turn to Rich Austin.

Rich is an expert networker and networking consultant, speaking coach, teacher and writer.

Rich earned his undergraduate degree in environmental biology at Johnston State College in Johnston, Vermont and spent much of his career in large business before opening his consulting practice. What led Rich to evolve from a career in environmental science and big business to a career in communications? Rich is a life-long stutterer. As a young

Success

Through

adult he decided to address his stuttering by learning all he could about speech and participating in speech therapy.

Rich evolved so that today he is known in Rhode Island for publishing a leading networking newsletter, organizing premier networking evenings, serving as a Master of Ceremonies at events, business writing and for teaching challenging populations. Rich evolved from being impaired by his stuttering to becoming empowered. As a professional speaker and communicator he decided to share what he learned, his experiences and successes with people who want to improve their business results by communicating more effectively.

One of the programs Rich offers is a three-part series: Build your Recognition, Education (educating your clients) and

As a young adult he decided to address his stuttering by learning all he could about speech and participating in speech therapy

32

RISBJ | rhode island small business journal

Ef

Professional Growth For The Entrepreneur | PROFESSIONAL GROWTH

For The Entrepreneur fective

Networking

Persuasion (REP) to help his clients improve business results through more effective communication. Today, he is sharing the questions he asks his clients in the Recognition part of the program to help them turn networking contacts into customers. Rich encourages every business person to answer these questions and discuss the answers with trusted colleagues and friends. If they have difficulty answering the questions, or would like to have a professional speaking coach review their answers (or go to the next level with education and persuasion), he invites contacts at info@SpeakingOfSuccess.US.

Here are his questions: 1. What is the Return on Investment (ROI) for your networking time and expenses?

2. Do you “Network Smart?” Do people really understand what you do after you deliver your networking message?

Rich for example, helped a local home based small business who specializes in healthier chemicals for use at home develop their tag line I can help you get out of toxic relationships!

3. Is your networking message conveying your most profitable offering? (Rich reminds us that 80% of our profits come about form 20% of what we do.)

and

Communication

4. What do you love to do? (Does this match up with the most profitable part of your business?)

5. What do you dislike doing? (Can you afford to discontinue it, or is it the most profitable part of your business?)

6. What do your clients say about you?

7. What makes you unique?

8. How do you know that you are great at what you do? Who told you? How do you tell this to your clients? (Rich, for example, encouraged a real estate agent to discuss her national industry wide award recognition.)

One of Rich’s favorite tips is to remind people to use pauses effectively when they speak. He says that if you have something really important to say that you want listeners to remember, pause for a few seconds before saying it.

If you want to meet networkers in a lively, fun, enjoyable setting and practice giving a one-minute networking presentation at a nominal cost, observed by Rich, check out the www.

SpeakingOfSuccess.US website. If you notify Rich in advance, upon request, he will offer you a few suggestions to improve your chances of networking success (at no additional charge).

I would like to thank Industrial Consultant Dr. Margarita Posada Cossuto for helpful comments.

www.risbj.com | volume five issue six

33

LEGAL | Personnel Practices: Paid Time Off Policies

Personnel Practices

PAID TIME OFF POLICIES

by C. Alexander Chiulli, Esq. and Kristen M. Whittle, Esq.

In creating benefits packages for their employees, many employers offer some form of paid time off in an effort to attract and retain high-quality workers. According to the Rhode Island Department of Labor and Training’s (DLT) most recent Employee Benefits Report (available at http://www. dlt.ri.gov/lmi/pdf/ebs13.pdf), seventy-six percent of Rhode Island employers provide some combination of vacation, personal, and/or sick leave to their full-time workers, and nearly a quarter of Rhode Island employers provide paid time off to part-time employees. DLT also found that the average number of vacation days made available to full-time employees is 8 days after one year, 11 days after three years, and 17 days after five years of employment. In addition to vacation time, DLT reported that full-time workers in Rhode Island receive an average of 5.7 sick days per year and 8.3 paid holidays per year. The average paid time off plans offered to part-time workers are typically slightly lower than their full-time counterparts. The following is intended as a brief summary of the key features of PTO plans, as addressed under applicable Rhode Island laws and regulations.

Paid Time Off is Not Typically Required.

Under Rhode Island law, private employers are generally not required to grant paid time off (“PTO”) to employees for illness, vacation, or personal reasons. But if an employer promises PTO in its personnel policies or employee handbook, or in an employment contract, then PTO must be provided in accordance with the policy or contract.

Employers have Flexibility.

Rhode Island law provides employers with significant flexibility in deciding how and when employees may accrue PTO. For example, an employer may provide PTO

34

RISBJ | rhode island small business journal

on a monthly basis or determine that PTO is accrued every set amount of hours worked. Though employers are free to devise their own accrual method, a PTO policy should be clear and deliberate, as any ambiguity will likely be construed against the employer.

PTO can be Combined into a Single Policy.

In offering PTO, employers can choose to separate out vacation, personal, and sick time, or to combine different types of paid leave into a single plan without such distinction.

DLT has reported that, although combined PTO plans are increasing in popularity, the majority of Rhode Island employers still separate vacation time from sick leave.

PTO does not

Personnel Practices: Paid Time Off Policies | LEGAL

In addition to vacation time, DLT reported that full-time workers in Rhode Island receive an average of 5.7 sick days per year and 8.3 paid holidays per year. typically encompass time away from work (paid or unpaid) for parental or family medical leave, disability, holidays, or for any other reason provided by law. However, employers may allow employees to substitute PTO for certain types of leave that would otherwise be unpaid.

But Beware of Nuances upon Separation of Employment.

Although combined PTO plans may be administratively easier for human resources staff—as opposed to managing distinct vacation, personal, and sick leave policies for numerous employees—there are additional considerations for Rhode Island employers upon an employee’s separation from employment. Specifically, Rhode Island law provides that when an employee separates from employment after completing at least one year of service, the employer must pay the employee all accrued, unused vacation time on the next regular payday.

The statute does not apply to sick leave or personal time. Accordingly, unless a PTO policy specifically delineates which portion of an employee’s PTO can be considered vacation time, an employer may be liable to pay an employee all accrued but unused PTO (and not just vacation time) upon separation from employment.

By carefully crafting PTO policies at the outset, employers can take care to avoid giving employees greater benefits than the employer intended to offer. When in doubt, employers should always contact a seasoned professional to assist.

C. Alexander Chiulli, Esq. Associate, Barton Gilman LLP

Kristen M. Whittle, Esq. Associate, Barton Gilman LLP

www.risbj.com | volume five issue six

35

Too Your Ma

by Peter W. Lang, MBA

Today, the manufacturing industry faces many challenges.

There is global competition, the economy is still rocky and technology is constantly changing. On a positive note, lawmakers are working to find ways to revive an industry (manufacturing) that once fueled our local economy.

of processes and continue to challenge your organization to reduce the product to customer lead times. The better you get at identifying and eliminating these “time wasters,” the more efficient you will become.

•

Stop trying to find temporary solutions to a problem.

Instead, identify and address the root cause of that problem. We see it all the time – quick temporary fixes that mask bigger problem areas in manufacturing operations.

In many cases, management is focused on addressing the symptoms of the problem and not the problem itself. For example, if an operation or piece of machinery is constantly breaking, some companies will stockpile inventory so that production is not impacted. The company may become so focused on reducing the inventory that it fails to address the root cause of the problem: the reliability of the process or piece of equipment. The bottom line: tackle operational problems as they happen. Do not hide them, or focus on the symptom; address the root cause and fix it!

•

Make an effort to understand your customers. To sell your product, you need to know what your customers value and what it will take to meet their expectations. We have all heard the words, “Value is in the eyes of the beholder.” In this case, the beholder is your customer. Have you ever asked your customer what he or she is willing to pay for?

Some customers may value quality above all else, while others may value delivery time reliability or product cost when deciding whether they want to do business with your company. Sit down with your customers, learn their priorities and reorient or reconfigure your operations as necessary.

As a business owner, it is important to be proactive and find ways to keep your manufacturing business running efficiently.

Below are a few steps that can help your bottom line: •

Identify wasted time and effort and make changes.

Typically, the longer it takes to produce and ship a product, the more costly it becomes. If a product sits unfinished or is held in staging areas, the clock keeps ticking and costs are accumulated.

Did you know that, on average, the actual processing or conversion time to produce a product is approximately five percent of total product lead time to the customer? The remaining time and effort can be considered non-value added or wasted time! By identifying and eliminating the non-value creating tasks in business operations, your business will become more efficient, which should result in a reduction in product cost. Work to create protocols to drive time out

36

RISBJ | rhode island small business journal

Tools To Help Keep Your Manufacturing Business Efficient | SMALL BUSINESS

ols To Help Keep anufacturing Business Efficient •

•

It may sound cliché, but never underestimate the power of the team. Empowered teams that leverage brainstorming and problem-solving techniques are the engine for the most successful and sustainable continuous improvement efforts. We see the results time and time again: a single team member with an improvement idea or solution presents it to his teammates and, through a brainstorming activity or problem solving technique, the team produces a breakthrough for the organization—an approach to a problem or a solution that no one person could ever have imagined! With minimal investment, an empowered team can be unleashed and become the hub for out-of-the-box thinking and innovation within your organization. Empowered teams can be your ticket to a new and improved method of doing business that is innovative, cost effective and critical to efforts in exceeding customer expectations.

Act. Identifying improvement opportunities may be the easy part. Everyone has ideas, especially in our workplaces, but how many good ideas ever get implemented? Unfortunately, implementation of productivity improvement ideas is not as common as it should be. Regrettably, many organizations have a graveyard full of great ideas and solutions that were never implemented, including some that may have saved failed businesses. It is much harder to implement change than one would think. Why is that?

People are slaves to routines, creatures of habit, perhaps unwilling to change or may not see the benefit of change.

To overcome complacency, you must act quickly when you have good ideas and solutions, as time can be your enemy. Organizations that are leaders and innovators in their fields or industries do not let good ideas and solutions die or sit too long, they act.

•

Continuous improvement is not a program. It is a culture and a philosophy that must be embedded in the DNA of an organization. Programs come and go.

They typically start with a lot of momentum and some excitement, but then run their course, people get tired of them, resources are diverted elsewhere, and they die a slow death. An effective continuous improvement culture requires an ongoing effort to improve products, services or processes. These efforts may involve small improvements over time or a larger improvement all at once. Either way, it is dependent on diligence and a team effort in which each member is held accountable.

These tips are a guide to improving your business through efficiencies. They will assist in dealing with today’s constantly changing technology which, in turn, will lead to greater profits.

Peter W. Lang, MBA Partner BlumShapiro

www.risbj.com | volume five issue six

37

SMALL BUSINESS | Innovative Option To Reduce Healthcare Benefits Costs For Your Business

Innovative Option to Reduce

HEALTHCARE

BENEFITS COSTS for your Business

by Lauren Hedde

Last year, CNBC aired a special on five ways small businesses can save on healthcare costs.

“Robin Wiener [‘owner of health-care IT firm, Get Real Health in Rockville, MD’] has achieved something many small-business owners have struggled to do: She has lowered her firm’s health-care premiums.”

One of the five recommendations highlighted by CNBC and implemented by Wiener is to “Explore Direct Primary Care.” They highlight that “a growing number of primary-care physicians are partnering with employers to deliver affordable preventative and primary care on a fixed-monthly membership model, in what is known as direct primary care. Instead of billing patients’ insurance, direct primary care providers charge users a monthly fee for unrestricted access to their doctor....Unlike in concierge practices, which also charge monthly fees, providers in direct primary care do not bill insurers or Medicare for medical visits.”

According to last year’s article in Time Magazine, Qliance – which is the largest Direct Primary Care practice in the nation – has “signed up previously undreamed-of populations: big private employers like Expedia and Comcast, public and industry employee unions like the one for Seattle firefighters and–most radical of all–at least 15,000 Medicaid patients....Treating a wide variety of patients - young and old, healthy and chronically sick, well-off and poor - Qliance claims to be saving approximately 20% on the average cost of care compared with traditional fee-forservice providers.”

One of Qliance’s largest clients is Expedia.

According to Time, “Expedia was motivated to try direct care for reasons that are familiar to business executives everywhere: health care bills were skyrocketing, but employees were not getting healthier. ‘We had a number of catastrophic illnesses in 2011 and a disturbing number of deaths–12,’ vice president for human resources Connie Symes tells me. ‘We found

38

RISBJ | rhode island small business journal

Qliance and their model of spending quality time with patients addressed our need to get employees involved in their own care....’ At the end of last year, Expedia surveyed the staff, Symes says, and the response was emphatic.

More than half the employees had tried Qliance, and of those, more than 95% said they were satisfied. ‘They love the doctors,’ Symes says.

‘They love the personal relationships they’re forming.’ And although Expedia still classifies Qliance as an experiment, Symes says direct primary care, with its emphasis on prevention, ‘is taking us in the right direction on lowering costs.’ ” Local small business owners and larger company CFOs in Rhode Island now have access to a similar option for covering their employees’ healthcare benefits – Direct Doctors. As a Direct Primary Care practice already established and seeing 100s of patients on an individual level, Direct Doctors physicians are now starting to branch into the world of employers/small businesses by discussing wrap-around types of health insurance plans (at lower premium costs to business owners and their employees) alongside employee memberships in this DPC practice.

This is an extremely unique, new, and exciting alternative to the traditional health insurance benefit offerings most companies can provide to their employees. And, unfortunately, in this world of ever-rising premium costs & deductibles, employers are struggling to provide affordable benefits to their employees without sacrificing access to their physicians/health care (in the form of higher copays, narrower provider networks, etc). In other words, health insurance is being offered instead of health care.

Direct Primary Care practices, on the other hand, are able to provide patients (including employees of member businesses) 24/7 cell, text & email access, same day visits, convenient scheduling with longer appointments and no waiting. They can even see employees at their job site if feasible. All together, this can reduce employee absenteeism (no inconvenient visits during the middle of the day with long wait times, less preventable chronic illness, and less time

Innovative Option To Reduce Healthcare Benefits Costs For Your Business | SMALL BUSINESS

out of work for acute illnesses that can be treated quickly and conveniently at the office).

Qliance has shown great cost reductions with this concept for both employer and employee.

By reducing the amount of claims sent in to an insurance company (no copays for visits, no bills to the insurance companies, and no charging patients coinsurance), premiums stay lower, coverage costs picked up by employers and employees are more manageable, and everyone is happier and healthier.

Dr. Lauren Hedde & Dr. Mark Turshen practice Direct Primary Care at their Direct Doctors office in Wickford. They are hosting an Open House geared toward introducing and explaining this concept to employers June 9th 4-8pm at the Quonset Annex. RSVP to directdoctors@gmail.com.

Last year, CNBC aired a special on five ways small businesses can save on healthcare costs.

“Robin Wiener [‘owner of health-care IT firm, Get Real Health in Rockville, MD’] has achieved something many small-business owners have struggled to do: She has lowered her firm’s health-care premiums.”

One of the five recommendations highlighted by CNBC and implemented by Wiener is to “Explore Direct Primary Care.” They highlight that “a growing number of primary-care physicians are partnering with employers to deliver affordable preventative and primary care on a fixedmonthly membership model, in what is known as direct primary care. Instead of billing patients’ insurance, direct primary care providers charge users a monthly fee for unrestricted access to their doctor....Unlike in concierge practices, which also charge monthly fees, providers in direct primary care do not bill insurers or Medicare for medical visits.”

According to last year’s article in Time Magazine, Qliance – which is the largest Direct Primary Care practice in the nation – has “signed up previously undreamed-of populations: big private employers like Expedia and Comcast, public and industry employee unions like the one for Seattle firefighters and–most radical of all–at least 15,000 Medicaid patients....Treating a wide variety of patients - young and old, healthy and chronically sick, well-off and poor - Qliance claims to be saving approximately 20% on the average cost of care compared with traditional fee-for-service providers.”

One of Qliance’s largest clients is Expedia.

According to Time, “Expedia was motivated to try direct care for reasons that are familiar to business executives everywhere: health care bills were skyrocketing, but employees were not getting healthier. ‘We had a number of catastrophic illnesses in 2011 and a disturbing number of deaths–12,’ vice president for human

resources Connie Symes tells me. ‘We found Qliance and their model of spending quality time with patients addressed our need to get employees involved in their own care....’ At the end of last year, Expedia surveyed the staff, Symes says, and the response was emphatic.

More than half the employees had tried Qliance, and of those, more than 95% said they were satisfied. ‘They love the doctors,’ Symes says. ‘They love the personal relationships they’re forming.’ And although Expedia still classifies Qliance as an experiment, Symes says direct primary care, with its emphasis on prevention, ‘is taking us in the right direction on lowering costs.’ ” Local small business owners and larger company CFOs in Rhode Island now have access to a similar option for covering their employees’ healthcare benefits – Direct Doctors.

As a Direct Primary Care practice already established and seeing 100s of patients on an individual level, Direct Doctors physicians are now starting to branch into the world of employers/small businesses by discussing wraparound types of health insurance plans (at lower premium costs to business owners and their employees) alongside employee memberships in this DPC practice.

This is an extremely unique, new, and exciting alternative to the traditional health insurance benefit offerings most companies can provide to their employees. And, unfortunately, in this world of ever-rising premium costs & deductibles, employers are struggling to provide affordable benefits to their employees without sacrificing access to their physicians/health care (in the form of higher copays, narrower provider networks, etc). In other words, health insurance is being offered instead of health care.

Direct Primary Care practices, on the other hand, are able to provide patients (including employees of member businesses) 24/7 cell, text & email access, same day visits, convenient scheduling with longer appointments and no waiting. They can even see employees at their job site if feasible. All together, this can reduce employee absenteeism (no inconvenient visits during the middle of the day with long wait times, less preventable chronic illness, and less time out of work for acute illnesses that can be treated quickly and conveniently at the office).

Qliance has shown great cost reductions with this concept for both employer and employee.

By reducing the amount of claims sent in to an insurance company (no copays for visits, no bills to the insurance companies, and no charging patients coinsurance), premiums stay lower, coverage costs picked up by employers and employees are more manageable, and everyone is happier and healthier.

Dr. Lauren Hedde & Dr. Mark Turshen practice Direct Primary Care at their Direct Doctors office in Wickford. www.risbj.com | volume five issue six

39

40

RISBJ | rhode island small business journal

our mark of distinction…

great legal teams working for you

PANNONE LOPES DEVEREAUX & PANNONE WEST LLC LOPES DEVEREAUX & WEST

PLDW

LLC

counselors at law 4 0 1

8 2 4

5 1 0 0

p l d w . c o m

www.risbj.com | volume five issue six

41

Cloud-connected security and storage solutions that simplify IT. Visit tbngconsulting.com to try any of our Barracuda appliances, virtual appliances or cloud services free for 30 days.

IT Solutions When IT Matters

Rhode Island Office 935 Jefferson Blvd, Ste 1004, Warwick, RI 02888 Telephone: +1 (401) 709-5216

42

RISBJ | rhode island small business journal

Web: www.tbngconsulting.com

Connecticut Office 50 Industry Drive, West Haven, CT 06516 Telephone: +1 (203) 933-8264 E-mail: info@tbngconsulting.com